Document:

EX-10.5

Exhibit 10.5

AMENDMENT TO THE

CONTRIBUTION AND EXCHANGE AGREEMENT

DATED AS OF MARCH 20, 2007

AMONG

GSC INVESTMENT LLC,

GSC CDO III L.L.C.,

GSCP (NJ), L.P.,

AND

THE OTHER INVESTORS PARTY HERETO

     This AMENDMENT TO THE CONTRIBUTION AND EXCHANGE AGREEMENT (the “Amendment”) dated as of March
20, 2007 by and among GSC Investments LLC, a Maryland limited liability company (“Newco”), GSC CDO
III, L.L.C., a Delaware limited liability company (the “Class A Investor”) and the persons
identified below (collectively, the “Class B Investors,” together with the Class A Investor, the
“Investors”) and GSCP (NJ), L.P., a Delaware limited partnership (the “Manager,” together with
Newco and the Investors, the “Parties”).

     WHEREAS the Parties entered into the Contribution and Exchange Agreement dated October 17,
2006 (the “Agreement”) with respect to the contribution to Newco (i) of certain general partner and
limited partner interests in GSC Partners CDO GP III, L.P., a Cayman Islands exempted limited
partnership ( “CDO III GP”), by the Investors and the Manager, and (ii) of the rights and
obligations of the Manager under the Collateral Management Agreement dated as of November 5, 2001
(the “Collateral Management Agreement”) in exchange for common shares of Newco (“Common Shares”);

     WHEREAS CDO III GP is the general partner of GSC Partners CDO Investors III, L.P., a Cayman
Island exempted limited partnership, which owns all of the outstanding Subordinated Notes of GSC
Partners CDO Fund III, Limited, a Cayman Islands company (“CDO Fund III”); and

     WHEREAS the Parties wish to amend the Agreement in accordance with Section 5.01 of the
Agreement.

 

 

     NOW, THEREFORE, in consideration of the covenants and agreements contained herein and other
good and valuable consideration, the receipt and sufficiency of which are hereby mutually
acknowledged, the parties hereby agree as follows:

     Section 1.01. Purchase of Role as Collateral Manager. In lieu of Newco’s obligation to
deliver Common Shares to the Manager in consideration of the Manager’s assignment of the Collateral
Management Agreement to Newco pursuant to and in accordance with Section 1.01(b) of the Agreement,
Newco shall, subject to the following terms and conditions, pay to the Manager cash consideration
in the amount equal to the fair value of the role as collateral manager of CDO Fund III. The fair
value of the role as collateral manager of CDO Fund III shall be calculated by a majority of
Newco’s independent directors acting in good faith by considering the aggregate value of the
management fees that would be payable to Newco under the Collateral Management Agreement from the
date of the assignment through the date of maturity of the financing entered into by CDO Fund III.
The cash payable by Newco to the Manager pursuant to the immediately preceding sentence shall be
delivered on such date as may be agreed between Newco and the Manager.

     Section 1.02. Waiver of Conditions to Transfer Limited Partner Interests. (a) As general
partner of CDO III GP, the Class A Investor hereby agrees to waive the conditions set forth in
Sections 10.1(b)(i), 10.1(b)(ii), 10.1(b)(iii), 10.1(b)(iv), 10.1(b)(v), 10.1(b)(vi), 10.1(b)(vii)
and 10.1(c) of the Amended and Restated Limited Partnership Agreement of CDO III GP dated October
16, 2001 with respect to the transfer of the Class B Investors limited partner interests.

     (b) Power of Attorney. Each of the Class B Investors hereby appoints the Class A Investor to
act as attorney-in-fact for such Class B Investor for the purpose of effecting the transfer of such
Class B Investor’s limited partner interests in CDO III GP and any other documents in connection
therewith.

     Section 1.03. Deficit Amount. The Class A Investor and the Class B Investors hereby
severally agree to make an additional contribution to Newco in cash equal to such Investor’s Pro
Rata Share of the Deficit Amount, if any, within five business days following receipt of a written
demand by Newco; provided that no Investor shall be obligated under this provision to pay an amount
in aggregate in excess of such Investor’s Pro Rata Share of $5,000,000. Newco shall make a written
demand with respect to the Deficit Amount not less than 120 days nor more than 150 days after the
date hereof. No additional Common Shares will be issued to the Investors.

     “Deficit Amount” means an amount, if any, as determined by Newco, by which the actual
aggregate distributions received by Newco with respect to the GP Interest and LP Interests are less
than the fair value of such Interests as of the date hereof.

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     “Pro Rata Share” means, with respect to each Investor, a percentage determined by dividing the
number of Common Shares issued pursuant to Section 1.01 of the Agreement to such Investor by the
total number of Common Shares issued under Section 1.01 of the Agreement to all of the Investors.

     Section 1.04. Governing Law. This Amendment is made and shall be governed by and construed
in all respects in accordance with the laws of the State of New York, without regard to the
principles of conflicts of laws thereof.

     Capitalized terms used and not otherwise defined herein shall have the respective meanings
ascribed in the Agreement.

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     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of
the date first above written.

	 	 	 	 	 	 	 
	 	 	GSC INVESTMENT LLC
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Richard T. Allorto
 

Name: Richard T. Allorto
	 	 
	 

	 	 	 	Title: Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	GSC CDO III L.L.C.
	 
	 	 	 	 	 	 
	 	 	By: GSCP (NJ) Holdings, L.P. as its sole member
	 
	 	 	 	 	 	 
	 	 	By: GSCP (NJ), Inc., as its General Partner
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ David L. Goret
 

Name: David L. Goret
	 	 
	 

	 	 	 	Title: Managing Director and
Secretary	 	 
	 
	 	 	 	 	 	 
	 

	 	GSCP
	 	(NJ), L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	By: GSCP (NJ), Inc., as its General Partner
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ David L. Goret
 

Name: David L. Goret
	 	 
	 

	 	 	 	Title: Managing Director and
Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	Class B Investors:
	 
	 

	 	 	 	/s/ Thomas J. Libassi
 

Thomas J. Libassi
	 	 

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	 	/s/ Richard M. Hayden
 

Richard M. Hayden
	 	 
	 
	 	 	 	 
	 

	 	/s/ Thomas V. Inglesby
 

Thomas V. Inglesby
	 	 
	 
	 	 	 	 
	 

	 	/s/ Robert A. Hamwee
 

Robert A. Hamwee
	 	 
	 
	 	 	 	 
	 

	 	/s/ Keith W. Abell
 

Keith W. Abell
	 	 

	 	 	 	 	 	 	 
	 

	 	HANNA FRANK INVESTMENTS LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Peter Frank
 

Name: Peter Frank
	 	 
	 

	 	 	 	Title: Managing Member	 	 
	 
	 	 	 	 	 	 
	 	 	GREENWICH STREET CAPITAL PARTNERS II, L.P.
	 
	 	 	 	 	 	 
	 	 	By: Greenwich Street Investments II,
L.L.C., as its General Partner
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Thomas V. Inglesby
 

Name: Thomas V. Inglesby
	 	 
	 

	 	 	 	Title: Managing Member	 	 

5EX-10.36

Exhibit 10.36

INDEMNIFICATION AGREEMENT

     THIS INDEMNIFICATION AGREEMENT (“Agreement”) is made and entered into this 9th day
of October, 2007 (the “Effective Date”), by and between GSC Investment Corp., a Maryland
Corporation (the “Company”), and David Goret (“Indemnitee”).

     WHEREAS, Indemnitee currently serves as a disclosure committee member of the Company and may,
therefore, be subjected to claims, suits or proceedings arising as a result of his service; and

     WHEREAS, as an inducement to Indemnitee to continue to serve as an disclosure committee member
of the Company, the Company has agreed to indemnify and to advance expenses and costs incurred by
Indemnitee in connection with any such claims, suits or proceedings, to the fullest extent
permitted by law; and

     WHEREAS, the parties by this Agreement desire to set forth their agreement regarding
indemnification and advance of expenses.

     NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the
Company and Indemnitee do hereby covenant and agree as follows:

     Section 1. Definitions. For purposes of this Agreement:

     (a) “Change in Control” means a change in control of the Company occurring after the Effective
Date of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of
Regulation 14A (or in response to any similar item on any similar schedule or form) promulgated
under the Securities Exchange Act of 1934, as amended (the “Act”), whether or not the Company is
then subject to such reporting requirement; provided, however, that, without limitation, such a
Change in Control shall be deemed to have occurred if after the Effective Date (i) any “person” (as
such term is used in Sections 13(d) and 14(d) of the Act) is or becomes the “beneficial owner” (as
defined in Rule 13d-3 under the Act), directly or indirectly, of securities of the Company
representing 15% or more of the combined voting power of the Company’s then outstanding securities
without the prior approval of at least two-thirds of the members of the Board of Directors of the
Company in office immediately prior to such person attaining such percentage interest; (ii) there
occurs a proxy contest, or the Company is a party to a merger, consolidation, sale of assets, plan
of liquidation or other reorganization not approved by at least two-thirds of the members of the
Board of Directors of the Company then in office, as a consequence of which members of the Board of
Directors of the Company in office immediately prior to such transaction or event constitute less
than a

 

 

majority of the Board of Directors of the Company thereafter; or (iii) during any period of
two consecutive years, other than as a result of an event described in clause (a)(ii) of this
Section 1, individuals who at the beginning of such period constituted the Board of Directors of
the Company (including for this purpose any new director whose election or nomination for election
by the Company’s stockholders was approved by a vote of at least two-thirds of the directors then
still in office who were directors at the beginning of such period) cease for any reason to
constitute at least a majority of the Board of Directors of the Company.

     (b) “Corporate Status” means the status of a person who provides or provided advisory services
to the Company in his capacity as a disclosure committee member of the Company.

     (c) “Disinterested Director” means a director of the Company who is not and was not a party to
the Proceeding in respect of which indemnification is sought by Indemnitee.

     (d) “Effective Date” has the meaning set forth in the first paragraph of this Agreement.

     (e) “Expenses” shall include all reasonable and out-of-pocket attorneys’ fees, retainers,
court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs,
printing and binding costs, telephone charges, postage, delivery service fees, and all other
disbursements or expenses of the types customarily incurred in connection with prosecuting,
defending, preparing to prosecute or defend, investigating, or being or preparing to be a witness
in a Proceeding.

     (f) “Independent Counsel” means a law firm, or a member of a law firm, that is experienced in
matters of corporation law and neither is, nor in the past five years has been, retained to
represent: (i) the Company or Indemnitee in any matter material to either such party, or (ii) any
other party to or witness in the Proceeding giving rise to a claim for indemnification hereunder.
Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who,
under the applicable standards of professional conduct then prevailing, would have a conflict of
interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s
rights under this Agreement. If a Change of Control has not occurred, Independent Counsel shall be
selected by the Board of Directors of the Company, with the approval of Indemnitee, which approval
will not be unreasonably withheld. If a Change of Control has occurred, Independent Counsel shall
be selected by Indemnitee, with the approval of the Board of Directors of the Company, which
approval will not be unreasonably withheld.

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     (g) “Proceeding” includes any threatened, pending or completed action, suit, arbitration,
alternate dispute resolution mechanism, investigation, administrative hearing or any other
proceeding, whether civil, criminal,
administrative or investigative (including on appeal), except one pending or completed on or
before the Effective Date, unless otherwise specifically agreed in writing by the Company and
Indemnitee.

     Section 2. Services by Indemnitee. Indemnitee will provide advisory services to the Company
in his capacity as a disclosure committee member of the Company. However, this Agreement shall not
impose any obligation on Indemnitee or the Company to continue Indemnitee’s service to the Company
beyond any period otherwise required by law or by other agreements or commitments of the parties,
if any.

     Section 3. Indemnification—General. The Company shall indemnify, and advance Expenses to,
Indemnitee as provided in this Agreement.

     Section 4. Proceedings Other Than Proceedings By Or In The Right Of The Company. Indemnitee
shall be entitled to the rights of indemnification provided in this Section 4 if, by reason of his
Corporate Status, he is, or is threatened to be, made a party to or a witness in any threatened,
pending, or completed Proceeding, other than a Proceeding by or in the right of the Company.
Pursuant to this Section 4, Indemnitee shall be indemnified against all judgments, penalties, fines
and amounts paid in settlement and all Expenses actually and reasonably incurred by him or on his
behalf in connection with a Proceeding by reason of his Corporate Status unless it is established
that (i) the act or omission of Indemnitee was material to the matter giving rise to the Proceeding
and (a) was committed in bad faith or (b) was the result of active and deliberate dishonesty, (ii)
Indemnitee actually received an improper personal benefit in money, property or services, or (iii)
in the case of any criminal Proceeding, Indemnitee had reasonable cause to believe that his conduct
was unlawful.

     Section 5. Proceedings by or in the Right of the Company. Indemnitee shall be entitled to
the rights of indemnification provided in this Section 5 if, by reason of his Corporate Status, he
is, or is threatened to be, made a party to or a witness in any threatened, pending or completed
Proceeding brought by or in the right of the Company to procure a judgment in its favor. Pursuant
to this Section 5, Indemnitee shall be indemnified against all amounts paid in settlement and all
Expenses actually and reasonably incurred by him or on his behalf in connection with such
Proceeding unless it is established that (i) the act or omission of Indemnitee was material to the
matter giving rise to such a Proceeding and (a) was committed in bad faith or (b) was the result of
active and deliberate dishonesty or (ii) Indemnitee actually received an improper personal benefit
in money, property or services.

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     Section 6. Court-Ordered Indemnification. Notwithstanding any other provision of this
Agreement, a court of appropriate jurisdiction, upon application of Indemnitee and such notice as
the court shall require, may order indemnification in the following circumstances:

     (a) if it determines Indemnitee is entitled to reimbursement under Section 2-418(d)(1) of the
Maryland General Corporation Law (the “MGCL”), the court shall order indemnification, in which case
Indemnitee shall be entitled to recover the expenses of securing such reimbursement; or

     (b) if it determines that Indemnitee is fairly and reasonably entitled to indemnification in
view of all the relevant circumstances, whether or not Indemnitee (i) has met the standards of
conduct set forth in Section 2-418(b) of the MGCL or (ii) has been adjudged liable for receipt of
an improper personal benefit under Section 2-418(c) of the MGCL, the court may order such
indemnification as the court shall deem proper. However, indemnification with respect to any
Proceeding by or in the right of the Company or in which liability shall have been adjudged in the
circumstances described in Section 2-418(c) of the MGCL shall be limited to Expenses actually and
reasonably incurred by him or on his behalf in connection with a Proceeding.

     Section 7. Indemnification for Expenses of a Party Who is Wholly or Partly Successful.
Notwithstanding any other provision of this Agreement, and without limiting any such provision, to
the extent that Indemnitee is, by reason of his Corporate Status, made a party to and is
successful, on the merits or otherwise, in the defense of any Proceeding, he shall be indemnified
for all Expenses actually and reasonably incurred by him or on his behalf in connection therewith.
If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or
otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the
Company shall indemnify Indemnitee under this Section 7 for all Expenses actually and reasonably
incurred by him or on his behalf in connection with each successfully resolved claim, issue or
matter, allocated on a reasonable and proportionate basis. For purposes of this Section and without
limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with
or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

     Section 8. Advance of Expenses. The Company shall advance all reasonable Expenses actually
and reasonably incurred by or on behalf of Indemnitee in connection with any Proceeding (other than
a Proceeding brought to enforce indemnification under (i) this Agreement, (ii) applicable law,
(iii) the organizational documents of the Company, (iv) any agreement or (v) a resolution of (A)
the stockholders entitled to vote generally in the election of directors or (B) the Board of
Directors) of the Company to which Indemnitee, by reason of his Corporate Status, is, or is
threatened to be, made a party or a witness, within ten

4

 

days after the receipt by the Company of a
statement or statements from Indemnitee requesting such advance or advances from time to time,
whether prior to or after final disposition of such Proceeding. Such statement or statements shall
reasonably evidence the Expenses incurred by Indemnitee and shall include or be preceded or
accompanied by a written affirmation by Indemnitee of Indemnitee’s good faith belief that the
standard of conduct necessary for indemnification by the Company as authorized by law and by this
Agreement has been met and a written
undertaking by or on behalf of Indemnitee, in substantially the form attached hereto as
Exhibit A or in such form as may be required under applicable law as in effect at the time of the
execution thereof, to reimburse the portion of any Expenses advanced to Indemnitee relating to
claims, issues or matters in the Proceeding as to which it shall ultimately be established that the
standard of conduct has not been met and which have not been successfully resolved as described in
Section 7. For so long as the Company is subject to the Investment Company Act, any advancement of
Expenses shall be subject to at least one of the following as a condition of the advancement: (a)
Indemnitee shall provide a security for his or her undertaking, (b) the Company shall be insured
against losses arising by reason of any lawful advances or (c) a majority of a quorum of the
Disinterested Directors, or Independent Counsel, in a written opinion, shall determine, based on a
review of readily available facts (as opposed to a full-trial-type inquiry), that there is no
reason to believe that Indemnitee ultimately will be found to not be entitled to indemnification.
To the extent that Expenses advanced to Indemnitee do not relate to a specific claim, issue or
matter in the Proceeding, such Expenses shall be allocated on a reasonable and proportionate basis.
The undertaking required by this Section 8 shall be an unlimited general obligation by or on behalf
of Indemnitee and shall be accepted without reference to Indemnitee’s financial ability to repay
such advanced Expenses and without any requirement to post security therefor.

     Section 9. Procedure for Determination of Entitlement to Indemnification.

     (a) To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a
written request, including therein or therewith such documentation and information as is reasonably
available to Indemnitee and is reasonably necessary to determine whether and to what extent
Indemnitee is entitled to indemnification. The Secretary of the Company shall, promptly upon
receipt of such a request for indemnification, advise the Board of Directors of the Company in
writing that Indemnitee has requested indemnification.

     (b) Upon written request by Indemnitee for indemnification pursuant to the first sentence of
Section 9(a) hereof, a determination, if required by applicable law, with respect to Indemnitee’s
entitlement thereto shall promptly be made in the specific case: (i) if a Change in Control shall
have occurred, by Independent Counsel in a written opinion to the Board of Directors, a copy of
which shall be

5

 

delivered to Indemnitee; or (ii) if a Change of Control shall not have occurred, (A)
by the Board of Directors of the Company (or a duly authorized committee thereof) by a majority
vote of a quorum consisting of Disinterested Directors (as herein defined), or (B) if a quorum of
the Board of Directors consisting of Disinterested Directors is not obtainable or, even if
obtainable, such quorum of Disinterested Directors so directs, by Independent Counsel in a written
opinion to the Board of Directors, a copy of which shall be delivered to Indemnitee, or (C) if so
directed by a majority of the members of the Board of Directors, by the stockholders of the
Company. If it is so determined that Indemnitee is entitled to
indemnification, payment to Indemnitee shall be made within ten days after such determination.
Indemnitee shall cooperate with the person, persons or entity making such determination with
respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons
or entity upon reasonable advance request any documentation or information which is not privileged
or otherwise protected from disclosure and which is reasonably available to Indemnitee and
reasonably necessary to such determination in the discretion of the Board of Directors or
Independent Counsel if retained pursuant to clause (ii)(B) of this Section 9. Any Expenses actually
and reasonably incurred by Indemnitee in so cooperating with the person, persons or entity making
such determination shall be borne by the Company (irrespective of the determination as to
Indemnitee’s entitlement to indemnification) and the Company shall indemnify and hold Indemnitee
harmless therefrom.

     Section 10. Presumptions and Effect of Certain Proceedings.

     (a) In making a determination with respect to entitlement to indemnification hereunder, the
person or persons or entity making such determination shall presume that Indemnitee is entitled to
indemnification under this Agreement if Indemnitee has submitted a request for indemnification in
accordance with Section 9(a) of this Agreement, and the Company shall have the burden of proof to
overcome that presumption in connection with the making of any determination contrary to that
presumption.

     (b) The termination of any Proceeding by judgment, order, settlement, conviction, a plea of
nolo contendere or its equivalent, or an entry of an order of probation prior to judgment, does not
create a presumption that Indemnitee did not meet the requisite standard of conduct described
herein for indemnification.

     Section 11. Remedies of Indemnitee.

     (a) If (i) a determination is made pursuant to Section 9 of this Agreement that Indemnitee is
not entitled to indemnification under this Agreement, (ii) advance of Expenses is not timely made
pursuant to Section 8 of this Agreement, (iii) no determination of entitlement to indemnification
shall have been made pursuant to Section 9(b) of this Agreement within 30 days after receipt

6

 

by the
Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to
Section 7 of this Agreement within ten days after receipt by the Company of a written request
therefor, or (v) payment of indemnification is not made within ten days after a determination has
been made that Indemnitee is entitled to indemnification, Indemnitee shall be entitled to an
adjudication in an appropriate court located in the State of Maryland, or in any other court of
competent jurisdiction, of his entitlement to such indemnification or advance of Expenses.
Alternatively, Indemnitee, at his option, may seek an award in arbitration to be conducted by a
single arbitrator pursuant to the commercial Arbitration Rules of the American Arbitration
Association. Indemnitee shall commence such proceeding seeking an adjudication or an award in
arbitration
within 180 days following the date on which Indemnitee first has the right to commence such
proceeding pursuant to this Section 11(a); provided, however, that the foregoing clause shall not
apply to a proceeding brought by Indemnitee to enforce his rights under Section 7 of this
Agreement.

     (b) In any judicial proceeding or arbitration commenced pursuant to this Section 11 the
Company shall have the burden of proving that Indemnitee is not entitled to indemnification or
advance of Expenses, as the case may be.

     (c) If a determination shall have been made pursuant to Section 9(b) of this Agreement that
Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any
judicial proceeding or arbitration commenced pursuant to this Section 11, absent a misstatement by
Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s
statement not materially misleading, in connection with the request for indemnification.

     (d) In the event that Indemnitee, pursuant to this Section 11, seeks a judicial adjudication
of or an award in arbitration to enforce his rights under, or to recover damages for breach of,
this Agreement, Indemnitee shall be entitled to recover from the Company, and shall be indemnified
by the Company for, any and all Expenses actually and reasonably incurred by him in such judicial
adjudication or arbitration. If it shall be determined in such judicial adjudication or arbitration
that Indemnitee is entitled to receive part but not all of the indemnification or advance of
Expenses sought, the Expenses incurred by Indemnitee in connection with such judicial adjudication
or arbitration shall be appropriately prorated.

     Section 12. Defense of the Underlying Proceeding.

     (a) Indemnitee shall notify the Company promptly upon being served with or receiving any
summons, citation, subpoena, complaint, indictment, information, notice, request or other document
relating to any Proceeding which may result in the right to indemnification or the advance of
Expenses hereunder;

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provided, however, that the failure to give any such notice shall not
disqualify Indemnitee from the right, or otherwise affect in any manner any right of Indemnitee, to
indemnification or the advance of Expenses under this Agreement unless the Company’s ability to
defend in such Proceeding or to obtain proceeds under any insurance policy is materially and
adversely prejudiced thereby, and then only to the extent the Company is thereby actually so
prejudiced.

     (b) Subject to the provisions of the last sentence of this Section 12(b) and of Section 12(c)
below, the Company shall have the right to defend Indemnitee in any Proceeding which may give rise
to indemnification hereunder; provided, however, that the Company shall notify Indemnitee of any
such decision to defend within 15 calendar days following receipt of notice of any such Proceeding
under Section 12(a) above. The Company shall not, without the prior
written consent of Indemnitee, which shall not be unreasonably withheld or delayed, consent to
the entry of any judgment against Indemnitee or enter into any settlement or compromise of a claim
against Indemnitee which (i) includes an admission of fault of Indemnitee or (ii) does not include,
as an unconditional term thereof, the full release of Indemnitee from all liability in respect of
such Proceeding, which release shall be in form and substance reasonably satisfactory to
Indemnitee. This Section 12(b) shall not apply to a Proceeding brought by Indemnitee under Section
11 above or Section 18 below.

     (c) Notwithstanding the provisions of Section 12(b) above, if in a Proceeding to which
Indemnitee is a party by reason of Indemnitee’s Corporate Status, (i) Indemnitee reasonably
concludes, based upon an opinion of counsel approved by the Company, which approval shall not be
unreasonably withheld, that he may have separate defenses or counterclaims to assert with respect
to any issue which may not be consistent with other defendants in such Proceeding, (ii) Indemnitee
reasonably concludes, based upon an opinion of counsel approved by the Company, which approval
shall not be unreasonably withheld, that an actual or apparent conflict of interest or potential
conflict of interest exists between Indemnitee and the Company, its affiliate or such person whose
defense is being assumed by the Company, or (iii) if the Company fails to assume the defense of
such Proceeding in a timely manner, Indemnitee shall be entitled to be represented by separate
legal counsel of Indemnitee’s choice, subject to the prior approval of the Company, which shall not
be unreasonably withheld, at the expense of the Company. In addition, if the Company fails to
comply with any of its obligations under this Agreement or in the event that the Company or any
other person takes any action to declare this Agreement void or unenforceable, or institutes any
Proceeding to deny or to recover from Indemnitee the benefits intended to be provided to Indemnitee
hereunder, Indemnitee shall have the right to retain counsel of Indemnitee’s choice, subject to the
prior approval of the Company, which shall not be unreasonably withheld, at the expense of the
Company (subject to Section 11(d)), to represent Indemnitee in connection with any such matter.

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     Section 13. Non-Exclusivity; Survival of Rights; Subrogation; Insurance; Investment Company
Act.

     (a) The rights of indemnification and advance of Expenses as provided by this Agreement shall
not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under
(i) applicable law, (ii) the Charter or Bylaws of the Company, (iii) any agreement or (iv) a
resolution of (A) the stockholders entitled to vote generally in the election of directors or (B)
the Board of Directors, or otherwise. No amendment, alteration or repeal of this Agreement or of
any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in
respect of any action taken or omitted by such Indemnitee in his Corporate Status prior to such
amendment, alteration or repeal.

     (b) In the event of any payment under this Agreement, the Company shall be subrogated to the
extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers
required and take all action necessary to secure such rights, including execution of such documents
as are necessary to enable the Company to bring suit to enforce such rights.

     (c) The Company shall not be liable under this Agreement to make any payment of amounts
otherwise indemnifiable or payable or reimbursable as Expenses hereunder if and to the extent that
(i) Indemnitee has otherwise actually received such payment under any insurance policy, contract,
agreement or otherwise, or (ii) for so long as the Company is subject to the Investment Company
Act, indemnification or payment or reimbursement of expenses would not be permissible under the
Investment Company Act.

     Section 14. Insurance. The Company will use its reasonable best efforts to acquire directors
and officers liability insurance, on terms and conditions deemed appropriate by the Board of
Directors of the Company, with the advice of counsel, covering Indemnitee or any claim made against
Indemnitee for service as a director or officer of the Company and covering the Company for any
indemnification or advance of Expenses made by the Company to Indemnitee for any claims made
against Indemnitee for service as a director or officer of the Company. Without in any way limiting
any other obligation under this Agreement, the Company shall indemnify Indemnitee for any payment
by Indemnitee arising out of the amount of any deductible or retention and the amount of any excess
of the aggregate of all judgments, penalties, fines, settlements and reasonable Expenses actually
and reasonably incurred by Indemnitee in connection with a Proceeding over the coverage of any
insurance referred to in the previous sentence.

     Section 15. Indemnification for Expenses of A Witness. Notwithstanding any other provision
of this Agreement, to the extent that Indemnitee is or may be, by reason of his Corporate Status, a
witness in any Proceeding, whether instituted

9

 

by the Company or any other party, and to which
Indemnitee is not a party but in which the Indemnitee receives a subpoena to testify, he shall be
advanced all reasonable Expenses and indemnified against all Expenses actually and reasonably
incurred by him or on his behalf in connection therewith.

     Section 16. Duration of Agreement; Assignment; Binding Effect.

     (a) This Agreement shall continue until and terminate ten years after the date that
Indemnitee’s Corporate Status shall have ceased; provided, that the rights of Indemnitee hereunder
shall continue until the final termination of any Proceeding then pending in respect of which
Indemnitee is granted rights of indemnification or advance of Expenses hereunder and of any
Proceeding commenced by Indemnitee pursuant to Section 11 of this Agreement relating thereto.

     (b) The indemnification and advance of Expenses provided by, or granted pursuant to, this
Agreement shall be binding upon and be enforceable by the parties hereto and their respective
successors and assigns (including any direct or indirect successor by purchase, merger,
consolidation or otherwise to all or substantially all of the business or assets of the Company),
shall continue as to an Indemnitee who has ceased to be a director, trustee, officer, employee or
agent of the Company or of any other corporation, partnership, joint venture, trust, employee
benefit plan or other enterprise which such person is or was serving at the written request of the
Company, and shall inure to the benefit of Indemnitee and his spouse, assigns, heirs, devisees,
executors and administrators and other legal representatives.

     (c) The Company may assign this Agreement without prior written consent of the Indemnitee.
The Company shall require and cause any successor (whether direct or indirect by purchase, merger,
consolidation or otherwise) to all, substantially all or a substantial part, of the business and/or
assets of the Company, by written agreement, expressly to assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would be required to perform
if no such succession had taken place. In connection with the Merger Transaction, (i) Company
shall cause the Corporation to become a party to this Agreement; and (ii) the Indemnitee
acknowledges and agrees that the Corporation shall be the successor of the Company hereunder and
shall succeed to all of the rights, powers and duties of the Company hereunder, without the
execution or filing of any paper or any further act on the part of any of the parties hereto.

     Section 17. Severability. If any provision or provisions of this Agreement shall be held to
be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and
enforceability of the remaining provisions of this Agreement (including, without limitation, each
portion of any section of this

10

 

Agreement containing any such provision held to be invalid, illegal
or unenforceable that is not itself invalid, illegal or unenforceable) shall not in any way be
affected or impaired thereby; and (b) to the fullest extent possible, the provisions of this
Agreement (including, without limitation, each portion of any section of this Agreement containing
any such provision held to be invalid, illegal or unenforceable, that is not itself invalid,
illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.

     Section 18. Exception To Right Of Indemnification Or Advance Of Expenses. Notwithstanding
any other provision of this Agreement, Indemnitee shall not be entitled to indemnification or
advance of Expenses under this Agreement with respect to any Proceeding brought by Indemnitee,
unless (a) the Proceeding is brought to enforce indemnification under this Agreement, and then only
to the extent in accordance with and as authorized by Sections 8 and 11 of this Agreement, or (b)
expressly provided otherwise in (i) the Company’s Charter or Bylaws, (ii) a resolution of (A) the
stockholders entitled to vote generally in the
election of directors or (B) the Board of Directors or (iii) an agreement approved by the
Board of Directors to which the Company is a party.

     Section 19. Identical Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall for all purposes be deemed to be an original but all of which
together shall constitute one and the same Agreement. One such counterpart signed by the party
against whom enforceability is sought shall be sufficient to evidence the existence of this
Agreement.

     Section 20. Headings. The headings of the paragraphs of this Agreement are inserted for
convenience only and shall not be deemed to constitute part of this Agreement or to affect the
construction thereof.

     Section 21. Modification And Waiver. No supplement, modification or amendment of this
Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of
any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other
provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

     Section 22. Notices. All notices, requests, demands and other communications hereunder shall
be in writing and shall be deemed to have been duly given if (i) delivered by hand or overnight
courier service and receipted for by the party to whom said notice or other communication shall
have been directed, on receipt, or (ii) mailed by certified or registered mail with postage
prepaid, on the third business day after the date on which it is so mailed:

     (a) If to Indemnitee, to: The address set forth on the signature page hereto.

11

 

	 	 
	     (b)	If to the Company to:

GSC Investment Corp.

12 East 49th Street

Suite 3200

New York, NY 10017

Attention: Chief Compliance Officer

or to such other address as may have been furnished to Indemnitee by the Company or to the Company
by Indemnitee, as the case may be.

     Section 23. Governing Law. The parties agree that this Agreement shall be governed by, and
construed and enforced in accordance with, the laws of the State of Maryland, without regard to its
conflicts of laws rules.

     Section 24. Miscellaneous. Use of the masculine pronoun shall be deemed to include usage of
the feminine pronoun where appropriate.

[SIGNATURE PAGE FOLLOWS]

12

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first
above written.

	 	 	 	 	 
	 	GSC INVESTMENT CORP.

 	 
	 	By:  	/s/ Thomas V. Inglesby
 	 
	 	 	Name:  	Thomas V. Inglesby 	 
	 	 	Title:  	Director and Chief
Executive Officer 	 

	 	 	 	 	 
	 	By:  	/s/ David Goret
 	 
	 	 	Name:  	David L. Goret 	 
	 	 	Address: 	 
	 

13

 

EXHIBIT A

FORM OF UNDERTAKING TO REPAY EXPENSES ADVANCED

The Board of Directors of GSC Investment Corp.

Re: Undertaking to Repay Expenses Advanced

Ladies and Gentlemen:

     This undertaking is being provided pursuant to that certain Indemnification Agreement dated
the ___ day of                     , 200___, by and between GSC Investment Corp. (the “Company”) and the
undersigned Indemnitee (the “Indemnification Agreement”), pursuant to which I am entitled to
advance of expenses in connection with [Description of Proceeding] (the “Proceeding”).

     Terms used herein and not otherwise defined shall have the meanings specified in the
Indemnification Agreement.

     I am subject to the Proceeding by reason of my Corporate Status or by reason of alleged
actions or omissions by me in such capacity. I hereby affirm that at all times, insofar as I was
involved as an disclosure committee member of the Company, in any of the facts or events giving
rise to the Proceeding, I (1) acted in good faith and honestly, (2) did not receive any improper
personal benefit in money, property or services and (3) in the case of any criminal proceeding, had
no reasonable cause to believe that any act or omission by me was unlawful.

     In consideration of the advance of Expenses by the Company for reasonable attorneys’ fees and
related expenses incurred by me in connection with the Proceeding (the “Advanced Expenses”), I
hereby agree that if, in connection with the Proceeding, it is established that (1) an act or
omission by me was material to the matter giving rise to the Proceeding and (a) was committed in
bad faith or (b) was the result of active and deliberate dishonesty or (2) I actually received an
improper personal benefit in money, property or services or (3) in the case of any criminal
proceeding, I had reasonable cause to believe that the act or omission was unlawful, then I shall
promptly reimburse the portion of the Advanced Expenses relating to the claims, issues or matters
in the Proceeding as to which the foregoing findings have been established and which have not been
successfully resolved as described in Section 7 of the Indemnification Agreement. To the extent
that Advanced Expenses do not relate to a specific claim, issue or matter in the Proceeding, I
agree that such Expenses shall be allocated on a reasonable and proportionate basis.

 

 

     IN WITNESS WHEREOF, I have executed this Affirmation and Undertaking on this ___ day of
                                        , 200___.

	 	 	 	 	 	 	 
	WITNESS:
	 	 	 	 	 	 
	 
	 

	 	 	 	 	 	(SEAL)
	 

	 	 	 	 	 	 

15

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