Document:

Exhibit 10.1

 

EXECUTION VERSION

 

SEVENTH AMENDMENT TO CREDIT AND SECURITY
AGREEMENT

 

This SEVENTH AMENDMENT
TO CREDIT AND SECURITY AGREEMENT, dated as of June 27, 2019 (this “Amendment”), among BDCA-CB Funding, LLC,
as borrower (the “Borrower”), the Lenders (as defined below) party hereto, Citibank, N.A., as administrative
agent (the “Administrative Agent”), and Business Development Corporation of America, as collateral manager (in
such capacity, “Collateral Manager”).

 

WHEREAS, the Borrower,
Collateral Manager, the Administrative Agent, U.S. Bank National Association, as collateral agent (in such capacity, the “Collateral
Agent”) and as custodian (in such capacity, the “Custodian”), and the financial institutions from
time to time party thereto as lenders (the “Lenders”) are parties to the Credit and Security Agreement, dated
as of June 27, 2014 (as previously amended and in effect immediately prior to the effectiveness of this Amendment, the “Existing
Credit Agreement”, and as amended by this Amendment and as may be further amended, supplemented or otherwise modified
and in effect from time to time, the “Amended Credit Agreement”; except as otherwise defined in this Amendment,
terms defined in the Amended Credit Agreement are used herein as defined therein).

 

WHEREAS, the Borrower
and the Collateral Manager request that the Lenders and the Administrative Agent amend the Existing Credit Agreement upon and subject
to the terms and conditions set forth in this Amendment.

 

WHEREAS, these recitals shall be construed as part
of this Amendment.

 

NOW THEREFORE, in consideration
of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto
hereby agree as follows:

 

Section 1. Amendments
to the Existing Credit Agreement. From and after the Amendment Effective Date (as defined below), the Existing Credit Agreement
shall be amended as follows:

 

1.01. References
Generally. References in the Existing Credit Agreement (including references to the Existing Credit Agreement as amended hereby)
to “this Agreement” (and indirect references such as “hereunder”, “hereby”, “herein”
and “hereof”) and each reference to the Existing Credit Agreement in the other Facility Documents (and indirect references
such as “thereunder”, “thereby”, “therein” and “thereof”) shall be deemed to be
references to the Existing Credit Agreement as amended hereby.

 

1.02. Amended Language.
Subject to Section 3 hereof, the Existing Credit Agreement is hereby amended to delete the red, stricken text (indicated textually
in the same manner as the following example: stricken text) and to add the blue, double-underlined
text (indicated textually in the same manner as the following example: double-underlined
text) as set forth in the pages of the Amended Credit Agreement attached as Exhibit A hereto.

 

Section 2. Representations
and Warranties of the Borrower and Collateral Manager. The Borrower and the Collateral Manager represent and warrant to the
Administrative Agent, the Lenders, the Collateral Agent and the Custodian that as of the Amendment Effective Date:

 

     

     

    

 

2.01. each of the representations
and warranties set forth in the Amended Credit Agreement and in the other Facility Documents are true and correct in all material
respects (or in all respects for such representations and warranties that are by their terms already qualified as to materiality)
as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in
which case they shall be true and correct in all material respects (or in all respects for such representations and warranties
that are by their terms already qualified as to materiality) as of such earlier date;

 

2.02. both immediately
before and after giving effect to this Amendment and the transactions contemplated hereby, no Default, Event of Default or Collateral
Manager Default shall have occurred and be continuing, or would result therefrom;

 

2.03. no action, suit
or proceeding (including, without limitation, any inquiry or investigation) shall be pending or threatened with respect to the
financing contemplated hereby or any documentation executed in connection therewith, and no injunction or other restraining order
shall have been issued or a hearing therefor be pending or noticed with respect to this Amendment or the transactions contemplated
hereby;

 

2.04. all necessary
governmental and material third party approvals and/or consents in connection with the transactions contemplated by this Amendment
and otherwise referred to herein shall have been obtained and remain in effect; and

 

2.05. each of the conditions
in Section 3 hereof has been satisfied or waived by the Administrative Agent (other than such conditions to the extent required
to be satisfactory to the Administrative Agent or the Lenders).

 

Section 3. Conditions
Precedent. The amendments to the Existing Credit Agreement set forth in Section 1 above shall become effective as of the date
(the “Amendment Effective Date”), upon which each of the following conditions precedent shall be satisfied or
waived:

 

3.01. Execution.
The Administrative Agent shall have received counterparts of this Amendment executed by the Borrower, the Collateral Manager and
the Lenders.

 

3.02. Amendment
Fee. The Borrower shall have paid the Amendment Fee, as set forth in the Amendment Fee Letter Agreement, dated as of the date
hereof (the “Amendment Fee Letter”), by and among the Borrower, the Collateral Manager and the Administrative
Agent.

 

3.03. Costs and
Expenses. The Borrower shall have paid all reasonable and documented out-of-pocket costs and expenses of the Administrative
Agent, the Collateral Agent, and the Custodian incurred in connection with this Amendment payable pursuant to Section 12.04 of
the Amended Credit Agreement, including without limitation all reasonable and documented fees and out-of-pocket expenses of counsel
to the Administrative Agent incurred in connection with the closing of the transactions contemplated this Amendment to the extent
invoiced at least one (1) Business Day prior to the Amendment Effective Date.

 

3.04. Certain
Documents. The Administrative Agent shall have received each of the following, unless otherwise agreed by the Administrative
Agent:

 

    	 	- 2 -	 

     

    

 

(a)       a
fully executed copy of this Amendment;

 

(b)       a
fully executed copy of the Amendment Fee Letter;

 

(c)       a
certificate of a Responsible Officer of the Borrower certifying (i) as to its Constituent Documents, (ii) as to its resolutions
or other action of its board of directors or members approving this Amendment, the Amendment Fee Letter and the other Facility
Documents and the transactions contemplated hereby and thereby, (iii) that its representations and warranties set forth in this
Amendment, the Amendment Fee Letter and the other Facility Documents to which it is a party are true and correct in all material
respects as of the Amendment Effective Date (except to the extent such representations and warranties expressly relate to any earlier
date, in which case such representations and warranties shall be true and correct in all material respects as of such earlier date),
(iv) to its knowledge, that no Default or Event of Default has occurred and is continuing, and (v) as to the incumbency and specimen
signature of each of its Responsible Officers authorized to execute this Amendment, the Amendment Fee Letter and the other Facility
Documents to which it is a party; and

 

(d)       such
other instruments, certificates and documents from the Borrower or the Collateral Manager as the Administrative Agent, any Lender,
the Collateral Agent or the Custodian shall have reasonably requested.

 

Section 4. Reference to and Effect Upon
the Existing Credit Agreement.

 

4.01. Except as specifically
amended or waived above, the Existing Credit Agreement and the other Facility Documents shall remain unchanged and in full force
and effect and are hereby ratified and confirmed.

 

4.02. The execution,
delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Administrative
Agent or any Lender under the Existing Credit Agreement or any Facility Document, nor constitute a waiver of any provision of the
Existing Credit Agreement or any Facility Document.

 

Section 5. Reaffirmation.
Each of the Borrower and the Collateral Manager hereby reaffirms its obligations under each Facility Document to which it is a
party. The Borrower hereby reaffirms the grant of security contained in Section 7.01(a) of the Credit Agreement.

 

Section 6. Miscellaneous.
This Amendment is a Facility Document for all purposes of the Amended Credit Agreement. This Amendment may be executed in any number
of counterparts, and by different parties hereto on separate counterpart signature pages, and all such counterparts taken together
shall be deemed to constitute one and the same instrument. Delivery of a counterpart signature page by facsimile transmission or
by e-mail transmission of an Adobe portable document format file (also known as a “PDF” file) shall be effective
as delivery of a manually executed counterpart signature page. Section headings used in this Amendment are for reference only and
shall not affect the construction of this Amendment.

 

    	 	- 3 -	 

     

    

 

Section 7. GOVERNING
LAW. THIS AMENDMENT, AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT AND ANY CLAIM, CONTROVERSY, DISPUTE
OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AMENDMENT AND THE
TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK.

 

[signature pages follow]

 

    	 	- 4 -	 

     

    

 

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

 

	 	BDCA-CB FUNDING, LLC, as Borrower
	 	 
	 	By: Business Development Corporation of America, a Maryland corporation and the sole Member of BDCA Funding I, LLC
	 	 	 
	 	By:	/s/ Ira Wishe
	 	Name: 	Ira Wishe
	 	Title: 	Authorized Signer

 

[Signature Page to Seventh Amendment to
Credit and Security Agreement]

 

     

     

    

 

	 	BUSINESS DEVELOPMENT CORPORATION OF AMERICA, as Collateral Manager
	 	 	 
	 	By:	/s/ Ira Wishe
	 	Name: 	Ira Wishe
	 	Title: 	Authorized Signer

 

[Signature Page to Seventh Amendment to Credit and Security Agreement]

 

     

     

    

 

	 	CITIBANK, N.A., as Administrative Agent and as a Lender
	 	 	 
	 	By:	/s/ Vincent Nocerino
	 	Name:     	Vincent Nocerino
	 	Title:	Vice President

 

     

     

    

 

Exhibit A

 

Form of Amended Credit Agreement

 

[see attached]

 

 

     

     

    

 

CONFORMED COPY THROUGH SIXTHSEVENTH
AMENDMENT 

 

 

 

CREDIT AND
SECURITY AGREEMENT

 

among

 

BDCA-CB
Funding, LLC, 

as Borrower,

 

THE LENDERS FROM TIME TO TIME PARTIES HERETO,

 

CITIBANK, N.A.,

as Administrative Agent,

 

U.S.
Bank National Association,

as Collateral Agent and as Custodian

 

and

 

Business
Development Corporation of America,

as Collateral Manager

 

 

 

Dated as of June 27, 2014

 

 

 

     

     

    

 

“Code”
means the Internal Revenue Code of 1986.

 

“Collateral”
has the meaning assigned to such term in Section 7.01(a).

 

“Collateral
Administration Agreement” means that certain Collateral Administration Agreement, dated as of the Closing Date, among
the Collateral Administrator, the Borrower, the Collateral Manager and the Administrative Agent.

 

“Collateral
Administrator” means U.S. Bank National Association, and any successor thereto under the Collateral Administration Agreement.

 

“Collateral
Agent” has the meaning assigned to such term in the introduction to this Agreement.

 

“Collateral
Agent Fee Letter” means the fee letter, dated June 12, 2014, by U.S. Bank National Association and acknowledged by the
Borrower as of the Closing Date, setting forth the amounts payable by the Borrower to the Collateral Agent, Custodian, Securities
Intermediary and Collateral Administrator in connection with the transactions contemplated by this Agreement.

 

“Collateral
Interest Amount” means, as of any date of determination, without duplication, the aggregate amount of Interest Proceeds
that has been received or that is expected to be received (other than Interest Proceeds expected to be received from Ineligible
Collateral Loans, in each case unless actually received), in each case during the Collection Period (and, if such Collection Period
does not end on a Business Day, the next succeeding Business Day) in which such date of determination occurs.

 

“Collateral
Loan” means a commercial loan owned or acquired by the Borrower that, solely for purposes of the definitions of “Borrowing
Base,” “Equity Coverage Ratio,” “Equity Percentage,” “Excess Concentration Amount” and
any component thereof, and subject to Section 1.04, (A) has been approved by the Administrative Agent, in its sole
discretion, prior to the date on which the Borrower commits to acquire such loan, and (B) satisfies each of the following
eligibility requirements on any date of determination (unless the Administrative Agent in its sole discretion agrees to waive any
such eligibility requirement with respect to such loan); provided that, that for purposes of determining whether a Collateral
Loan constitutes an Ineligible Collateral Loan at any time after the acquisition thereof by the Borrower (or its binding commitment
to do the same), the criteria set forth in clauses (h), (k)(ii), (v) and (aa) shall be evaluated solely as of the date the Borrower
commits to acquire such loan:

 

(a)       is
(i) a First Lien Obligation, (ii) a Second Lien Obligation or (iii) the Closing Date Participation Interest;

 

(b)       permits
the purchase thereof by or assignment thereof to the Borrower and the pledge to the Collateral Agent;

 

(c)       [reserved];

 

(d)       is
denominated and payable in Dollars and does not permit the currency in which such loan is payable to be changed;

 

(e)       is
an obligation of an Obligor organized or incorporated in (i) the United States (or any state thereof) or,
(ii) Canada (or any province thereof), or (iii) any other jurisdiction approved by the Administrative
Agent in its sole discretion;

 

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(f)       the
Related Documents for which are governed by the laws of a state in the United States or any other
jurisdiction approved by the Administrative Agent in its sole discretion;

 

(g)       [reserved];

 

(h)       is
not the subject of an offer or called for redemption;

 

(i)        does
not constitute Margin Stock;

 

(j)        does
not subject the Borrower to withholding tax unless the Obligor is required to make “gross-up” payments constituting
100% of such withholding tax;

 

(k)        is
not (i) a Defaulted Collateral Loan or (ii) a Credit Risk Collateral Loan;

 

(l)         is
not an Equity Security or a component thereof and does not provide for mandatory or optional conversion or exchange into an Equity
Security; provided that any Equity Security purchased as part of a “unit” with a Collateral Loan (including
any attached warrants) and that itself is not eligible for purchase by the Borrower as a Collateral Loan shall not cause the Collateral
Loan portion to lose its eligibility hereunder;

 

(m)       is
not a PIK Loan;

 

(n)        is
not a Structured Finance Obligation, a bridge loan or other obligation that (i) is incurred in connection with a merger, acquisition,
consolidation, or sale of all or substantially all of the assets of a Person or similar transaction and (ii) by its terms, is required
to be repaid within one year of the incurrence thereof with proceeds from additional borrowings or other refinancing, a bond, a
synthetic security, a finance lease or chattel paper;

 

(o)       provides
for the full principal balance to be payable at or prior to its maturity;

 

(p)       EBITDA
of the related Obligor is at least $40,000,000;

 

(q)       the
sum of the aggregate original loan facility amounts corresponding to (i) the applicable loan tranche (which, for the avoidance
of doubt, will be determined by aggregating only loans that, in accordance with then-prevailing market practice, are typically
bought and sold together and are “tax fungible”) and (ii) any other loan tranche that is issued under the same loan
facility and is pari passu in all respects with the applicable loan tranche, is at least $150,000,000 as of the date the
Borrower commits to acquire such loan;

 

(r)        has
an original term to maturity of not more than seven and one-half (7.5) years;

 

(s)        provides
for payment of interest at least semi-annually;

 

(t)        bears
interest at a floating rate;

 

(u)       is
not subject to material non-credit related risk (such as a loan, the payment of which is expressly contingent upon the non-occurrence
of a catastrophe), as determined by the Collateral Manager in its reasonable discretion;

 

(v)       is
not an obligation (other than a Delayed Drawdown Collateral Loan) pursuant to which any future advances or payments to the Obligor
may be required to be made by the Borrower;

 

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“Collections”
means all cash collections, distributions, payments or other amounts received, or to be received, by the Borrower from any Person
in respect of any Collateral Loan constituting Collateral, including all principal, interest, fees, distributions, recoveries and
redemption and withdrawal proceeds payable to the Borrower under or in connection with any such Collateral Loans and all Proceeds
from any sale or disposition of any such Collateral Loans.

 

“Commitment”
means, as to each Lender, the obligation of such Lender to make, on and subject to the terms and conditions hereof, Advances to
the Borrower pursuant to Section 2.01 in an aggregate principal amount at any one time outstanding for such Lender
up to but not exceeding the amount set forth opposite the name of such Lender on Schedule 1 or in the Assignment and Acceptance
pursuant to which such Lender shall have assumed its Commitment, as applicable, as such amount may be reduced from time to time
pursuant to Section 2.06 or increased or reduced from time to time pursuant to assignments effected in accordance with
Section 12.06(a).

 

“Commitment
Fee” has the meaning assigned to such term in Section 2.12(a).

 

“Commitment
Termination Date” means the last day of the Reinvestment Period; provided that, if the Commitment Termination
Date would otherwise not be a Business Day, then the Commitment Termination Date shall be the immediately succeeding Business
Day.

 

“Concentration
Limitations” means, as of any date of determination, the following limitations (as applied to the Aggregate Asset Cost
of the Collateral Loans owned (or, in relation to a proposed purchase of a Collateral Loan, proposed to be owned) by the Borrower,
calculated as a percentage of the Aggregate Asset Cost plus the aggregate amount of cash then on deposit in the Principal
Collection Subaccount and in each case in accordance with the procedures set forth in Section 1.04; provided that
for purposes of this definition, in determining the Asset Cost of any Delayed Drawdown Collateral Loan, any unfunded commitments
in respect of such Delayed Drawdown Collateral Loan shall be assumed to have been fully funded as of such date of determination):

 

(a)       not
more than 5.00% consists of obligations of any one Obligor (and Affiliates thereof);

 

(b)       not
more than 10.00% consists of Collateral Loans with Obligors in any one Moody’s Industry Classification, except that (i)
Collateral Loans with Obligors in one Moody’s Industry Classification may constitute up to 20% of the Aggregate
Principal Balance and, (ii) Collateral
Loans with Obligors in two other Moody’s Industry Classifications may each constitute up to 15% of the Aggregate Principal
Balance and (iii) Collateral Loans with Obligors in one other Moody’s Industry Classification
may constitute up to 12.5% of the Aggregate Principal Balance;

 

(c)       not
more than 10.00% consists of Collateral Loans with Obligors that have EBITDA less than $50,000,000;

 

(d)       not
more than 10.00% consists of Second Lien Obligations;

 

(e)       not
more than 5.00% consists of Unquoted Collateral Loans;

 

(f)       not
more than 30.00% consists of Collateral Loans with a Moody’s Rating of less than “B3” or an S&P Rating less
than “B-”;

 

(g)       not
more than 5.00% consists of Partial PIK Loans;

 

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(h)       in
the case of each of clauses (a) through (g) above, such additional or alternative procedures as may hereafter become
appropriate to perfect the security interest granted to the Collateral Agent hereunder in such items of the Collateral, consistent
with Applicable Law.

 

In addition, the Collateral
Manager on behalf of the Borrower will obtain any and all consents required by the Related Documents relating to any Instruments,
accounts or general intangibles for the transfer of ownership and/or pledge hereunder (except to the extent that the requirement
for such consent is rendered ineffective under Section 9-406 of the UCC).

 

“Determination
Date” means, with respect to any Payment Date, the fifth (5th) Business Daylast
calendar day of the calendar month prior to such Payment Date; provided that, with respect to the final Payment
Date, the Determination Date shall be such Payment Date.

 

“DIP Collateral
Loan” means an obligation:

 

(a)       obtained
or incurred after the entry of an order of relief in a case pending under Chapter 11 of the Bankruptcy Code;

 

(b)       to
a debtor in possession as described in Chapter 11 of the Bankruptcy Code or a trustee (if appointment of such trustee has been
ordered pursuant to Section 1104 of the Bankruptcy Code);

 

(c)       on
which the related Obligor is required to pay interest and/or principal on a current basis; and

 

(d)       approved
by a Final Order or Interim Order of the bankruptcy court so long as such obligation is (i) fully secured by a Lien on the debtor’s
otherwise unencumbered assets pursuant to Section 364(c)(2) of the Bankruptcy Code, (ii) fully secured by a Lien of equal or senior
priority on property of the debtor estate that is otherwise subject to a Lien pursuant to Section 364(d) of the Bankruptcy Code
or (iii) secured by a junior Lien on the debtor’s encumbered assets (so long as such loan is fully secured based on
the most recent current valuation or appraisal report, if any, of the debtor).

 

“Document
Checklist” means an electronic or hard copy list delivered by the Borrower (or by the Collateral Manager on behalf of
the Borrower) to the Custodian that identifies each of the documents contained in each Loan File and whether such document is an
original or a copy and whether a hard copy or electronic copy will be delivered to the Custodian related to a Collateral Loan and
includes the name of the Obligor with respect to such Collateral Loan, in each case as of the related date of Advance or acquisition
by the Borrower.

 

“Dollars”
and “$” mean lawful money of the United States of America.

 

“Due Date”
means each date on which any payment is due on a Collateral Loan in accordance with its terms.

 

“EBITDA”
means, with respect to any trailing twelve month period and any Collateral Loan, the meaning of the term “Adjusted EBITDA”,
the term “EBITDA” or any comparable definition in the Related Documents for such period and Collateral Loan (or, in
the case of a Collateral Loan for which the Related Documents have not been executed, as set forth in the relevant marketing materials
or financial model in respect of such Collateral Loan) as determined in the good faith discretion of the Collateral Manager,
and in any case that the term “Adjusted EBITDA”, the term “EBITDA” or such comparable

 

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such date of determination; provided that for purposes of clause (b) of
this definition, in determining the Asset Cost of any Delayed Drawdown Collateral Loan, any unfunded commitments in respect of
such Delayed Drawdown Collateral Loans shall be assumed to have been fully funded as of such date of determination.

 

“Equityholder”
means BDCA.

 

“Equity Security”
means any stock or similar security, certificate of interest or participation in any profit sharing agreement, reorganization certificate
or subscription, transferable share, voting trust certificate or certificate of deposit for an equity security, limited partnership
interest, interest in a joint venture, or certificate of interest in a business trust; any security future on any such security;
or any security convertible, with or without consideration into such a security, or carrying any warrant or right to subscribe
to or purchase such a security; or any such warrant or right.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974 and the regulations promulgated and rulings issued thereunder.

 

“Errors”
has the meaning assigned to such term in Section 14.08(c).

 

“Eurocurrency
Liabilities” is defined in Regulation D of the Board of Governors of the Federal Reserve System, as in effect from time
to time.

 

“Eurodollar
Disruption Event” means the occurrence of any of the following: (a) any Lender shall have notified the Administrative
Agent of a determination by such Lender that it would be contrary to Law or to the directive of any central bank or other governmental
authority (whether or not having the force of law) to obtain Dollars in the London interbank market to fund any Advance, (b) the
Collateral Agent shall have notified the Administrative Agent, the Borrower and each Lender of the inability, for any reason, to
determine the Adjusted Eurodollar Rate, (c) the Required Lenders shall have notified the Administrative Agent of a determination
by such Lenders that the rate at which deposits of Dollars are being offered to such Lenders in the London interbank market does
not accurately reflect the cost to such Lenders of making, funding or maintaining any Advance or (d) any Lender shall have notified
the Administrative Agent of the inability of such Lender to obtain Dollars in the London interbank market to make, fund or maintain
any Advance.

 

“Eurodollar
Reserve Percentage” means, for any period, the percentage, if any, applicable during such period (or, if more than one
such percentage shall be so applicable, the daily average of such percentages for those days in such period during which any such
percentage shall be so applicable) under regulations issued from time to time by the Board of Governors of the Federal Reserve
System (or any successor) for determining the maximum reserve requirement (including any basic, emergency, supplemental, marginal
or other reserve requirements) with respect to liabilities or assets consisting of or including Eurocurrency Liabilities having
a term of one month.

 

“Event of
Default” means the occurrence of any of the events, acts or circumstances set forth in Section 6.01.

 

“Excess Concentration
Amount” means, at any time in respect of which any one or more of the Concentration Limitations are exceeded, the portions
(calculated without duplication) of each Collateral Loan that cause such Concentration Limitations to be exceeded.

 

“Excess
Interest Proceeds” means, on any date of determination, the excess of (1) amounts then on deposit in the Collection Account
representing Interest Proceeds over (2) the sum of (x) the projected

 

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amounts required to be paid pursuant to Sections 9.01(a)(i)(A)
through (I) on the next succeeding Payment Date or the Final Maturity Date, as applicable, minus (y) any Excess Interest Proceeds
withdrawn during the related Interest Accrual Period pursuant to Section 8.03, as determined by the Borrower (or the Collateral
Manager on its behalf) (in the case of clause (1) and clause (2)) in good faith and in a commercially reasonable manner and, in
the case of clause (1), verified by the Collateral Agent and, in the case of clause (2), verified by the Administrative Agent.

 

“Exchange
Act” means the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder, all as from time
to time in effect, or any successor law, rules or regulations, and any reference to any statutory or regulatory provision shall
be deemed to be a reference to any successor statutory or regulatory provision.

 

“Excluded
Taxes” means any of the following Taxes imposed on or with respect to a Secured Party or required to be withheld or deducted
from a payment to a Secured Party (a) Taxes imposed on or measured by net income, net profits, or capital (however denominated),
or that are franchise Taxes or branch profits Taxes, in each case, (i) imposed by the jurisdiction (or any political
subdivision thereof) under the laws of which such Secured Party is organized or in which its principal office is located, or in
the case of any Lender, in which its applicable lending office is located or (ii) that are Other Connection Taxes and (b) Taxes
on any “withholdable payment” payable to such Secured Party as a result of the failure of such Secured Party to satisfy
the applicable requirements of FATCA.

 

“Facility
Amount” means (a) on or prior to the Commitment Termination Date, $400,000,000 (as such amount may be reduced from time
to time pursuant to Section 2.06) and (b) following the Commitment Termination Date, the outstanding principal balance of
all the Advances.

 

“Facility
Documents” means this Agreement, the Notes, the Account Control Agreement, the Collateral Administration Agreement, the
Administrative Agent Fee Letter, the Collateral Agent Fee Letter, the Sale Agreement and any other security agreements and other
instruments entered into or delivered by or on behalf of the Borrower pursuant to Section 5.01(c) to create, perfect or
otherwise evidence the Collateral Agent’s security interest in the Collateral.

 

“FATCA”
means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended versions of Sections 1471 through
1474 of the Code that are substantively comparable and not materially more onerous to comply with), any current or future regulations
or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code and any intergovernmental
agreements entered into in connection with the implementation of such Sections.

 

“Federal Funds
Rate” means, for any period, a fluctuating interest rate per annum equal for each day during such period to the weighted
average of the rates on overnight federal funds transactions with members of the Federal Reserve System arranged by federal funds
brokers, as published for such day (or, if such day is not a Business Day, for the next preceding Business Day) by the Federal
Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day, the average of the quotations
for such day on such transactions received by the Administrative Agent from three federal funds brokers of recognized standing
selected by it; provided that, if at any time a Lender is borrowing overnight funds from a Federal Reserve Bank that day,
the Federal Funds Rate for such Lender for such day shall be the average rate per annum at which such overnight borrowings are
made on that day as promptly reported by such Lender to the Borrower and the Agents in writing. Each determination of the Federal
Funds Rate by a Lender pursuant to the foregoing proviso shall be conclusive and binding except in the case of manifest error.

 

“Final Maturity
Date” means May 28, 2020.31, 2022.

 

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during the Reinvestment
Period, less than or equal to 30003200
or, following the termination of the Reinvestment Period, 3490.

 

“Maximum Weighted
Average Life Test” means a test that will be satisfied on any date of determination if the Weighted Average Life of the
Collateral Loans as of such date is less than or equal to 7.0 years.

 

“Measurement
Date” means (a) the Closing Date, (b) each Borrowing Date, (c) the date on which a Collateral Loan is acquired or disposed
of by the Borrower and (d) each Monthly Report Determination Date.

 

“Minimum Weighted
Average Spread Test” means a test that will be satisfied on any date of determination if the Weighted Average Spread
equals or exceeds 3.00%.

 

“Money”
has the meaning specified in Section 1-201(24) of the UCC.

 

“Monthly Report”
has the meaning specified in Section 8.07(a).

 

“Monthly Report
Determination Date” has the meaning specified in Section 8.07(a).

 

“Monthly Reporting
Date” has the meaning specified in Section 8.07(a).

 

“Moody’s”
means Moody’s Investors Service, Inc., together with its successors.

 

“Moody’s
Industry Classification” means the industry classifications set forth in Schedule 5 hereto, as such industry classifications
shall be updated at the option of the Collateral Manager if Moody’s publishes revised industry classifications.

 

“Moody’s
Rating” means, with respect to any Collateral Loan, as of any date of determination:

 

(a)       if
such Collateral Loan has a monitored rating, an unpublished monitored rating expressly assigned to a debt obligation (or facility),
or a monitored estimated rating expressly assigned to a debt obligation (or facility) by Moody’s that addresses the full
amount of the principal interest promised, such rating,

 

(b)       if
the foregoing paragraph is not applicable, then, if the related Obligor has a corporate family rating by Moody’s, the rating
specified in the applicable row of the table below under “Relevant Rating” opposite the row in the table below that
describes such Collateral Loan:

 

	
        Collateral Loan
	 	Relevant Rating
	 	 
	
        The Collateral Loan is a secured obligation, but is not a Second
        Lien Obligation and is not subordinate

         
	 	The rating by Moody’s that is one rating subcategory above such corporate family rating
	 	 
	
        The Collateral Loan is an unsecured obligation or is a Second
        Lien Obligation, but is not subordinate

         
	 	The rating by Moody’s that is one rating subcategory below such corporate family rating
	 	 
	The Collateral Loan is subordinate	 	
        The rating by Moody’s that is two rating subcategories
        below such corporate family rating

         

 

    28

     

    

 

For purposes of the foregoing, a “private rating”
shall refer to a rating obtained by the Administrative Agent, by the Borrower or by or on behalf of an obligor on a Collateral
Loan that is not disseminated publicly; whereas a “shadow rating” shall refer to a credit estimate obtained (i) upon
application of the Borrower or a holder of a Collateral Loan or (ii) from the proper use of the RiskCalc Plus probability
of default model most recently made available by Moody’s. Any private rating or shadow rating shall be required to be refreshed
annually. If the Borrower applies to Moody’s for a shadow rating or public rating of a Collateral Loan, the Borrower shall
provide evidence to the Administrative Agent of such application and shall notify the Administrative Agent of the expected rating.
The Borrower shall notify the Administrative Agent of the shadow rating or public rating assigned by Moody’s to a Collateral
Loan.

 

“Moody’s
Rating Factor” means, for each Collateral Loan, the number set forth in the table below opposite the Moody’s Rating
of such Collateral Loan.

 

	
        Moody’s
Rating
	Moody’s Rating Factor	Moody’s Rating	Moody’s Rating Factor
	Aaa	1	Ba1	940
	Aa1	10	Ba2	1,350
	Aa2	20	Ba3	1,766
	Aa3	40	B1	2,220
	A1	70	B2	2,720
	A2	120	B3	3,490
	A3	180	 	 
	Baa1	260	Caa1	4,770
	Baa2	360	 	 
	Baa3	610	Caa2	6,500
	 	 	Caa3 	8,070
	 	 	Caa3Ca or lower	10,000

 

provided that
for purposes of the Maximum Moody’s Weighted Average Rating Factor Test, any Collateral Loan issued or guaranteed by the
United States government or any agency or instrumentality thereof is assigned a Moody’s Rating Factor of 1; provided,
further, however, to the extent any Collateral Loan has a rating from S&P or a private rating, such rating will be converted
to the Moody’s equivalent for purposes of the Maximum Moody’s Weighted Average Rating Factor Test.

 

“Net Aggregate
Exposure Amount” means, at any time, the excess (if any) of (a) the aggregate unfunded amounts in respect of all Delayed
Drawdown Collateral Loans at such time over (b) the aggregate amount on deposit in the Unfunded Reserve Account at such
time.

 

“New Lending
Office” has the meaning assigned to such term in Section 12.03(d).

 

“Non-Excluded
Taxes” mean all Taxes other than Excluded Taxes.

 

“Non-U.S.
Lender” has the meaning assigned to such term in Section 12.03(g).

 

“Note”
means each promissory note, if any, issued by the Borrower to a Lender in accordance with the provisions of Section 2.03,
substantially in the form of Exhibit E hereto.

 

“Noteless
Loan” means a Collateral Loan with respect to which (a) the related loan agreement does not require the obligor to execute
and deliver an Underlying Note to evidence the indebtedness

 

    31

     

    

 

created under such Collateral Loan and (b) no Underlying Notes issued
to the Borrower are outstanding with respect to the portion of the Collateral Loan transferred to the Borrower.

 

“Notice of
Borrowing” has the meaning assigned to such term in Section 2.02.

 

“Notice of
Prepayment” has the meaning assigned to such term in Section 2.05.

 

“Obligations”
means all indebtedness, whether absolute, fixed or contingent, at any time or from time to time owing by the Borrower to any Secured
Party or any Affected Person under or in connection with this Agreement, the Notes or any other Facility Document, including all
amounts payable by the Borrower in respect of the Advances, with interest thereon, and all other amounts payable hereunder or thereunder
by the Borrower.

 

“Obligor”
means, in respect of any Collateral Loan, the Person primarily obligated to pay Collections in respect of such Collateral Loan,
including any applicable guarantors.

 

“OFAC”
has the meaning assigned to such term in Section 4.01(f).

 

“Other Connection
Taxes” means, in the case of any Secured Party, any Taxes imposed by any jurisdiction by reason of such Secured Party
having any present or former connection with such jurisdiction (other than a connection arising solely from such Secured Party
having executed, delivered, become a party to, performed its obligations under, received any payment under, received or perfected
a security interest under, engaged in any other transaction pursuant to or enforced its rights under this Agreement, the Notes
or any other Facility Document or sold or assigned an interest in any Loan or Facility Document).

 

“Other Taxes”
has the meaning assigned to such term in Section 12.03(b).

 

“Partial PIK
Loan” means a Collateral Loan that requires the Obligor to pay only a portion of the accrued and unpaid interest in Cash
on a current basis, the remainder of which is deferred and paid later together with interest thereon as a lump sum and is treated
as Interest Proceeds at the time it is received; provided that such Collateral Loan shall not constitute a Partial PIK Loan
if the portion of such interest required to be paid in Cash pursuant to the terms of the related underlying instruments carries
a current Cash pay interest rate of not less than 2.50% per annum over LIBOR.

 

“Participant”
means any bank or other Person to whom a participation is sold as permitted by Section 12.06(c).

 

“Participant
Register” has the meaning assigned to such term in Section 12.06(c)(ii).

 

“PATRIOT Act”
has the meaning assigned to such term in Section 4.01(f).

 

“Payment Account”
has the meaning assigned to such term in Section 8.03.

 

“Payment Date”
means the 1517th dayBusiness
Day of January, April, July and October in each year, the first of which following
the Seventh Amendment Effective Date shall be October 15, 2014July
24, 2019; provided that, if any such day is not a Business Day, then such Payment Date shall be the next succeeding
Business Day. The Final Maturity Date shall also be a Payment Date.

 

“Payment Date
Report” has the meaning specified in Section 8.07(b).

 

    32

     

    

 

average yield to maturity
as determined by the Administrative Agent (or any Person designated by the Administrative Agent) using the same or a substantially
similar method of calculation as that used by MarkIt Partners on the date hereof.

 

“Purchase
Price” means, with respect to any Collateral Loan, the aggregate purchase price paid by the Borrower to purchase such
Collateral Loan (which (a) shall be expressed as a percentage of par and (b) shall be determined exclusive of accrued interest
and premium).

 

“QIB”
has the meaning assigned to such term in Section 12.06(e).

 

“Qualified
Institution” means a depository institution or trust company organized under the laws of the United States of America
or any one of the States thereof or the District of Columbia (or any domestic branch of a foreign bank), (a)(i) that has either
(A) a long-term unsecured debt rating of “A” or better by S&P and “A2” or better by Moody’s or
(B) a short-term unsecured debt rating or certificate of deposit rating of “A-1” or better by S&P or “P-1”
or better by Moody’s, (ii) the parent corporation of which has either (A) a long-term unsecured debt rating of “A”
or better by S&P and “A2” or better by Moody’s or (B) a short-term unsecured debt rating or certificate of
deposit rating of “A-1” or better by S&P and “P-1” or better by Moody’s or (iii) is otherwise
acceptable to the Administrative Agent and (b) the deposits of which are insured by the Federal Deposit Insurance Corporation.

 

“Qualified
Purchaser” has the meaning assigned to such term in Section 12.06(e).

 

“Quarterly
Asset Amount” means, for any Payment Date, the arithmetical average of (a) the sum of the Principal Balances of
all Collateral Loans and the cash and the principal balance of any Eligible Investments on deposit in the Principal Collection
Subaccount, measured as of the first day of the related Collection Period and (b) the sum of the Principal Balances of all Collateral
Loans and the cash and the principal balance of any Eligible Investments on deposit in the Principal Collection Subaccount, measured
as of the related Determination Date.

 

“Register”
has the meaning assigned to such term in Section 12.06(d).

 

“Regulation
T”, “Regulation U”, “Regulation W” and “Regulation X” mean Regulation
T, U, W and X, respectively, of the Board of Governors of the Federal Reserve System, as in effect from time to time.

 

“Reinvestment
Period” means the period from and including the Closing Date to and including the earliest of (a) July
1, 2019May 31, 2021 and (b) the date of the termination of the Commitments
pursuant to Section 6.01.

 

“Related Documents”
means, with respect to any Collateral Loan, all agreements or documents evidencing, securing, governing or giving rise to such
Collateral Loan.

 

“Replacement
Lender” has the meaning assigned to such term in Section 2.16(a).

 

“Requested
Amount” has the meaning assigned to such term in Section 2.02.

 

“Required
Lenders” means, as of any date of determination, Lenders whose aggregate principal amount of Advances Outstanding plus
unused Commitments aggregate more than 50% of the aggregate amount of the Commitments (used and unused) or, if the Commitments
have expired or been terminated or otherwise reduced to zero, the aggregate principal amount of all Advances Outstanding; provided,

 

    35

     

    

 

(iv)       is
not a loan which is secured solely or primarily by the common stock of its obligor or any of its Affiliates; and

 

(v)       such
loan is priced by at least two independent sources (as evidenced by data from Loan X, Inc., Loan Pricing Corporation, MarkIt Partners
or any other nationally recognized loan pricing service selected by the Administrative Agent).

 

The determination as
to whether clause (iii) of this definition is satisfied shall be based on the Collateral Manager’s judgment at the time the
loan is acquired by the Borrower (which value may include an assessment of the Obligor’s cash flow, enterprise value, general
financial condition and other attributes). The limitation set forth in clause (iv) above shall not apply with respect to
a loan made to a parent entity that is secured solely or substantially by the stock of one or more of the subsidiaries of such
parent entity to the extent that the granting by any such subsidiary of a Lien on its own property would (1) in the case of a subsidiary
that is not part of the same consolidated group as such parent entity for U.S. federal income tax purposes, result in a deemed
dividend by such subsidiary to such parent entity for such tax purposes, (2) violate Law applicable to such subsidiary (whether
the obligation secured is such loan or any other similar type of indebtedness owing to third parties) or (3) cause such subsidiary
to suffer adverse economic consequences under capital adequacy or other similar rules, in each case, so long as (x) the Related
Documents limit the incurrence of indebtedness by such subsidiary and (y) the aggregate amount of all such indebtedness is not
material relative to the aggregate value of the assets of such subsidiary.

 

“Secured Parties”
means the Administrative Agent, the Collateral Agent, the Custodian, the Collateral Administrator and the Lenders.

 

“Secured Party
Representative” has the meaning assigned to such term in Section 12.09.

 

“Securities
Act” means the Securities Act of 1933 and the rules and regulations promulgated thereunder, all as from time to time
in effect.

 

“Securities
Intermediary” has the meaning assigned to it in Section 8-102(a)(14) of the UCC.

 

“Security
Entitlement” has the meaning specified in Section 8-102(a)(17) of the UCC.

 

“SixthSeventh
Amendment Effective Date” means May 31,June
27, 2019.

 

“Solvent”
as to any Person means that such Person is not “insolvent” within the meaning of Section 101(32) of the Bankruptcy
Code or Section 271 of the New York Debtor and Creditor Law.

 

“Specified
Eligible Investment” means an Eligible Investment meeting the requirements of Section 8.06(a) and that is available
to the Collateral Agent, to be specified by the Collateral Manager to the Collateral Agent (with a copy to the Administrative Agent)
on or prior to the initial Borrowing Date; provided that, so long as no Default or Event of Default shall have occurred
and then be continuing, at any time with not less than five Business Days’ notice to the Collateral Agent (with a copy to
the Administrative Agent), the Collateral Manager may (and, if the then Specified Eligible Investment is no longer available
to the Collateral Agent, shall) designate another Eligible Investment that meets the requirements of Section 8.06(a) and
that is available to the Collateral Agent to be the Specified Eligible Investment for purposes hereof. After the occurrence and
continuation of a Default or Event of Default, a Specified Eligible Investment shall mean an Eligible Investment meeting the requirements
of Section 8.06(a) and which has been selected by the Administrative Agent.

 

    40

     

    

 

“Structured
Finance Obligation” means any Collateral Loan owing by a finance vehicle that is secured directly and primarily by, primarily
referenced to, and/or primarily representing ownership of, a pool of receivables or a pool of other assets, including collateralized
debt obligations, residential mortgage-backed securities, commercial mortgage-backed securities, other asset-backed securities,
“future flow” receivable transactions and other similar obligations; provided that ABL Facilities, loans to
financial service companies, factoring businesses, health care providers and other genuine operating businesses do not constitute
Structured Finance Obligations.

 

“Subject Laws”
has the meaning assigned to such term in Section 4.01(f).

 

“Successor
Collateral Manager” has the meaning assigned to such term in Section 14.08(a).

 

“Taxes”
means all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or other charges imposed
by any taxing Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

 

“Trade Confirmation”
means a confirmation of the Borrower’s acquisition of a Collateral Loan delivered to the Collateral Agent (with a copy to
the Custodian and the Administrative Agent) by the Borrower pursuant to Section 13.03(b), and setting forth applicable information
with respect to such Collateral Loan, which confirmation shall contain such information in respect of such Collateral Loan as the
Custodian may reasonably require in order to enable the Custodian to perform its duties hereunder in respect of such Collateral
Loan in the form of a customary trade confirmation as agreed to by, the Custodian and the Borrower from time to time.

 

“Termination
Percentage” means, on any date of determination, the excess, if any, of (a) the Equity
Percentage on such date of determination over (b) 7.5%.

 

“Trade
Date” has the meaning assigned to such term in Section 1.04(l).

 

“TRS Agreement”
means the Total Return Swap, dated July 31, 2012 (as amended and restated as of May 6, 2014), between 405 TRS I, LLC and Citibank.

 

“UCC”
means the New York Uniform Commercial Code; provided that if, by reason of any mandatory provisions of law, the perfection,
the effect of perfection or non-perfection or priority of the security interests granted to the Collateral Agent pursuant to this
Agreement are governed by the Uniform Commercial Code as in effect in a jurisdiction of the United States of America other than
the State of New York, then “UCC” means the Uniform Commercial Code as in effect from time to time in such other
jurisdiction for purposes of such perfection, effect of perfection or non-perfection or priority.

 

“Uncertificated
Security” has the meaning specified in Section 8-102(a)(18) of the UCC.

 

“Underlying
Loan Agreement” means, with respect to any Collateral Loan, the document or documents evidencing the commercial loan
agreement or facility pursuant to which such Collateral Loan is made.

 

“Underlying
Note” means one or more promissory notes, if any, executed by an Obligor evidencing a Collateral Loan.

 

“Unfunded
Reserve Account” has the meaning specified in Section 8.04.

 

“Unfunded
Reserve Required Amount” has the meaning specified in Section 8.04.

 

    41

     

    

 

(g)       Except
as otherwise provided herein, Ineligible Collateral Loans will not be included in the calculation of the Collateral Quality Tests
(or any component thereof).

 

(h)       For
purposes of determining the Minimum Weighted Average Spread Test (and related computations of stated interest coupons and Aggregate
Funded Spread), capitalized or deferred interest (and any other interest that is not paid in cash) will be excluded.

 

(i)        Portions
of the same Collateral Loan acquired by the Borrower on different dates will, for purposes of determining the purchase price of
such Collateral Loan, be treated as separate purchases on separate dates (and not a weighted average purchase price for any particular
Collateral Loan).

 

(j)        For
the purposes of calculating compliance with each of the Concentration Limitations all calculations will be rounded to the nearest
0.01%.

 

(k)       Notwithstanding
any other provision of this Agreement to the contrary, all monetary calculations under this Agreement shall be in Dollars.
For purposes of this Agreement, calculations with respect to all amounts received or required to be paid in a currency other than
Dollars shall be valued at zero.

 

(l)       Except
as otherwise provided herein, forFor purposes of calculating compliance
with any testthe Borrowing Base Test, the Collateral
Quality Tests, or any Concentration Limitation under this Agreement in connection with the acquisition or disposition
of a Collateral Loan or Eligible Investment, the trade date (the “Trade Date”) (and
not the settlement date) with respect to any such Collateral Loan or Eligible Investment acquired
or disposed of or under consideration for acquisition or disposition shall be used to determine compliance
with the Borrowing Base Test, the Collateral Quality Test or any Concentration Limitation and whether such acquisition
or disposition is permitted hereunder; provided that, (i) for purposes of calculating compliance with
the Borrowing Base Test, the Collateral Quality Test or any Concentration Limitation, the calculation thereof shall assume (and
give pro forma effect to) (x) the making of an Advance to the Borrower (based on the Advance Rate applicable thereto) and any capital
contribution to the Borrower by the Equityholder upon settlement of the acquisition of a Collateral Loan (based on the purchase
price therefor) and (y) the repayment of an Advance to the Borrower upon settlement of the disposition of a Collateral Loan (based
on the sale price therefor) and (ii) for purposes of calculating the Borrowing Base Test, the Collateral Quality Test, or any Concentration
Limitation in connection with the making or repayment of any Advance, such calculation shall be recalculated at the time such Advance
is made or repaid after giving effect to the settlement of any Collateral Loan acquired or disposed of.

 

ARTICLE
II

ADVANCES

 

Section 2.01.        Revolving
Credit Facility; Approval Requests

 

(a)       The
Collateral Manager, on behalf of the Borrower, shall, on or prior to the second Business Day preceding the proposed trade date
of each proposed acquisition of Collateral Loans (whether proposed to be funded by an Advance or by the use of the cash proceeds
contributed by the Equityholder) provide to the Administrative Agent (with a copy to the Borrower) a notice by electronic mail
in the form of Exhibit A hereto (together with any attachments required in connection therewith, an “Approval Request”).
Such approval may take the form of a standing list of pre-approved assets containing the characteristics of each pre-approved asset
specified in Exhibit A (other than purchase price), together with a notice of intention to trade containing the par amount
and purchase price of the

 

    45

     

    

 

1-201(37)
of the UCC) in the Collateral in favor of the Collateral Agent, for the benefit and security of the Secured Parties, which security
interest is prior to all other Liens and claims and is enforceable as such against creditors of and purchasers from the Borrower,
except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting creditors’ rights generally or general principles of equity, regardless of whether considered in a proceeding
in equity or at law;

 

(vi)        the
Borrower has received all consents and approvals required by the terms of the Related Documents in respect of such Collateral to
the pledge hereunder to the Collateral Agent of its interest and rights in such Collateral;

 

(vii)       with
respect to the Collateral that constitutes Security Entitlements, all such Collateral has been and will have been credited
to the applicable Covered Account; and

 

(viii)      with
respect to Collateral that constitutes accounts or general intangibles, the Borrower has caused or will have caused, on or prior
to the Closing Date, the filing of all appropriate financing statements in the proper filing office in the appropriate jurisdictions
under Applicable Law in order to perfect the security interest in the Collateral granted to the Collateral Agent, for the benefit
and security of the Secured Parties, hereunder (which the Borrower hereby agrees may be an “all asset” filing).

 

(n)       Prior
Activities of the Borrower. The Borrower has not conducted any business or other activities other than entry into and performance
under the TRS Agreement and activities incidental thereto, including in connection with the termination of the TRS Agreement and
the merger of 405 Loan Funding LLC with and into the Borrower on the Closing Date. As of the Closing Date, the TRS Agreement has
been terminated. As of the Closing Date, the Borrower has no creditors other than the Lenders under this Agreement or arising out
of activities incidental to or contemplated by the Facility Documents or its Constituent Documents.

 

(o)       Prior
Name of the Borrower. The Borrower was previously known as “405 TRS I, LLC” and “CB Funding I, LLC.”
The Borrower’s name was changed to (i) “CB Funding I, LLC” pursuant to a Certificate of Amendment filed on June
10, 2014 with the Office of the Secretary of State of Delaware and to (ii) “BDCA-CB Funding, LLC” pursuant to a Certificate
of Amendment filed on June 19, 2014 with the Office of the Secretary of State of Delaware.

 

(p)       Beneficial
Ownership Certification.  As of the SixthSeventh
Amendment Effective Date, the information included in the Beneficial Ownership Certification is true and correct in all respects.

 

Section 4.02.       Representations
and Warranties of the Collateral Manager

 

The Collateral Manager
represents and warrants to each of the Secured Parties on and as of each Measurement Date, as follows:

 

(a)       Due
Organization. The Collateral Manager is a corporation duly organized and validly existing under the laws of the State of Maryland,
with full power and authority to own and operate its assets and properties, conduct the business in which it is now engaged and
to execute and deliver and perform its obligations under this Agreement and the other Facility Documents to which it is a party.

 

(b)       Due
Qualification and Good Standing. The Collateral Manager is in good standing in the State of Maryland. The Collateral Manager
is duly qualified to do business and, to the extent applicable, is in good standing in each other jurisdiction in which the nature
of its business, assets and properties,

 

    60

     

    

 

(iii)       to
fund the Unfunded Reserve Account on or prior to the Commitment Termination Date to the extent the Unfunded Reserve Account
is required to be funded pursuant to Section 8.04 (and the Borrower shall submit a Notice of Borrowing requesting a Borrowing
of Advances for a Borrowing Date falling no more than five and no less than one Business Day prior to the Commitment Termination
Date with a Requested Amount sufficient to fully fund the Unfunded Reserve Account under Section 8.04).;

 

(i)       to
make withdrawals from the Collection Account for distribution at the election of the Borrower in accordance with Section 8.03.

 

Without limiting the
foregoing, it shall use the proceeds of each Advance in a manner that does not, directly or indirectly, violate any provision of
its Constituent Documents or any Applicable Law, including Regulation T, Regulation U, Regulation W and Regulation X.

 

(g)       Information
and Reports. Each Notice of Borrowing, each Monthly Report, each Payment Date Report and all other written information, reports,
certificates and statements furnished by or on behalf of the Borrower to any Secured Party for purposes of or in connection with
this Agreement, the other Facility Documents or the transactions contemplated hereby or thereby shall be true, complete and correct
in all material respects as of the date such information is stated or certified.

 

(h)       No
Other Business. The Borrower shall not engage in any business or activity other than borrowing Advances pursuant to this Agreement,
funding, acquiring, owning, holding, administering, selling, enforcing, lending, exchanging, redeeming, pledging, contracting for
the management of and otherwise dealing with Collateral Loans, Eligible Investments and the Collateral in connection therewith
and entering into the Facility Documents, any applicable Related Documents and any other agreement contemplated by this Agreement.

 

(i)       Tax
Matters. The Borrower shall (and each Lender hereby agrees to) treat the Advances and the Notes as debt for U.S. federal income
tax purposes and will take no contrary position, unless otherwise required pursuant to a closing agreement with the U.S. Internal
Revenue Service or a non-appealable judgment of a court of competent jurisdiction. Notwithstanding any contrary agreement or understanding,
the Collateral Manager, the Borrower, the Agents and the Lenders (and each of their respective employees, representatives or other
agents) may disclose to any and all Persons, without limitation of any kind, the tax treatment and tax structure of the transactions
contemplated by this Agreement and all materials of any kind (including opinions or other tax analyses) that are provided to them
relating to such tax treatment and tax structure. The foregoing provision shall apply from the beginning of discussions between
the parties. For this purpose, the tax treatment of a transaction is the purported or claimed U.S. tax treatment of the transaction
under applicable U.S. federal, state or local law, and the tax structure of a transaction is any fact that may be relevant to understanding
the purported or claimed U.S. tax treatment of the transaction under applicable U.S. federal, state or local law.

 

(j)       Collections.
The Borrower shall direct all Obligors (and related paying agents) to pay all Collections directly to the Collection Account.

 

(k)       Priority
of Payments. The Borrower shall instruct (or cause the Collateral Manager to instruct) the Collateral Agent to apply all Interest
Proceeds and Principal Proceeds solely in accordance with the Priority of Payments and the other provisions of this Agreement.

 

(l)       Acquisition
of Collateral Loans from the Equityholder. Any acquisition of Collateral Loans by the Borrower from the Equityholder shall
be effected pursuant to the Sale Agreement and subject in all respects to the terms and conditions set forth therein.

 

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(m)       Certificate
of Assignment for Closing Date Participation Interest. As soon as practicable, but in no event later than the date that is
ninety (90) days after the Closing Date (or such longer period to which the Administrative Agent may agree), the Borrower shall
use its commercially reasonable efforts deliver to the Custodian and the Administrative Agent a copy of the fully executed assignment
agreement assigning the Collateral Loan related to the Closing Date Participation Interest directly to the Borrower, certified
by an officer of the Borrower (or the Collateral Manager on behalf of the Borrower) and written evidence satisfactory to the Administrative
Agent that the Borrower is recognized as the owner of record by the related administrative agent in respect of the Related Documents.

 

(n)       Beneficial
Ownership Regulation.  Promptly following any request therefor, the Borrower shall deliver to the Administrative Agent
information and documentation reasonably requested by the Administrative Agent or any Lender for purposes of compliance with the
Beneficial Ownership Regulation. The Borrower shall deliver to the Administrative Agent prompt written notice of any change in
the information provided in the Beneficial Ownership Certification delivered to the Administrative Agent that would result in a
change to the list of beneficial owners identified in such certification.

 

Section 5.02.Negative
Covenants of the Borrower

 

The Borrower covenants
and agrees that, until the Final Maturity Date (and thereafter until the date that all Obligations, other than contingent indemnification
obligations as to which no claim giving rise thereto has been asserted, have been paid in full):

 

(a)       Restrictive
Agreements. It shall not enter into or suffer to exist or permit to become effective any agreement that prohibits, limits or
imposes any condition upon its ability to create, incur, assume or suffer to exist any Lien (other than Permitted Liens) upon any
of its property or revenues constituting Collateral, whether now owned or hereafter acquired, to secure its obligations under the
Facility Documents other than this Agreement and the other Facility Documents or to perform its obligations under the Facility
Documents to which it is a party or arising out of activities incidental to or contemplated by the Facility Documents or its Constituent
Documents.

 

(b)       Liquidation;
Merger; Sale of Collateral. It shall not consummate any plan of liquidation, dissolution, division,
partial liquidation, merger (other than the merger of 405 Loan Funding LLC with and into the Borrower on the Closing
Date) or consolidation (or suffer any liquidation, dissolution, division or partial liquidation)
nor sell, transfer, exchange or otherwise dispose of any of its assets, or enter into an agreement or commitment to do so or enter
into or engage in any business with respect to any part of its assets, except as expressly permitted by this Agreement and the
other Facility Documents (including in connection with the repayment in full of the Obligations).

 

(c)       Amendments
to Constituent Documents, Etc. Without the consent of the Administrative Agent (such consent not to be unreasonably withheld
or delayed), (i) it shall not, in any material respect, amend, modify or take any action inconsistent with its Constituent Documents
(provided, however, in the event of any amendment or other modification to its Constituent Documents required by
Law, the Borrower shall only be required to give the Administrative Agent prior written notice of such amendment or other modification)
and (ii) it will not amend, modify or waive in any material respect any term or provision in any Facility Document (other than
in accordance with any provision thereof requiring the consent of the Administrative Agent or all or a specified percentage of
the Lenders).

 

(d)       Liens.
It shall not create, assume or suffer to exist any Lien on any of its assets now owned or hereafter acquired by it at any time,
except for Permitted Liens or as otherwise expressly permitted by this Agreement and the other Facility Documents.

 

    66

     

    

 

Agreement shall be
held by the Collateral Agent as part of the Collateral and shall be applied to the purposes herein provided. Subject to Section 8.02(c),
amounts in the Collection Account shall be reinvested pursuant to Section 8.06(a).

 

(b)       At
any time when reinvestment is permitted pursuant to Article X, the Collateral Manager on behalf of the Borrower (subject
to compliance with Article X) may, by delivery of a certificate of a Responsible Officer of the Collateral Manager, direct
the Collateral Agent to, and upon receipt of such certificate the Collateral Agent shall, withdraw funds on deposit in the
Principal Collection Subaccount representing Principal Proceeds (together with accrued interest received with regard to any Collateral
Loan and Interest Proceeds but only to the extent used to pay for accrued interest on an additional Collateral Loan) and reinvest
such funds in additional Collateral Loans in accordance with such certificate. If at any time the amount on deposit in the Unfunded
Reserve Account is less than the Unfunded Reserve Required Amount, the Collateral Manager (on behalf of the Borrower) may, by delivery
of a certificate of a Responsible Officer of the Collateral Manager, direct the Collateral Agent to, and upon receipt of such certificate
the Collateral Agent shall, withdraw funds on deposit in the Principal Collection Subaccount representing Principal Proceeds and
remit such funds as so directed by the Collateral Manager to meet the Borrower’s funding obligations in respect of Delayed
Drawdown Collateral Loans.

 

(c)       The
Collateral Agent shall transfer to the Payment Account, from the Collection Account for application pursuant to Section 9.01(a),
on each Payment Date, the amount set forth to be so transferred in the Payment Date Report for such Payment Date.

 

Section 8.03.        Payment
Account

 

In accordance with
this Agreement and the Account Control Agreement, the Collateral Agent shall, on or prior to the Closing Date, establish at the
Custodian a single, segregated trust account, which shall be designated as the “Payment Account”, which shall
be maintained by the Borrower with the Custodian in accordance with the Account Control Agreement and which shall be subject to
the Lien of the Collateral Agent. Except as provided in Section 9.01,9.01
or the proviso to this Section 8.03, the only permitted withdrawal from or application of funds on deposit in, or otherwise
to the credit of, the Payment Account shall be to pay amounts due and payable under the Priority of Payments on the Payment Dates
in accordance with their terms and the provisions of this Agreement; provided that the Borrower may
withdraw Excess Interest Proceeds, to the extent such amounts are available therefor and in the case of any such withdrawal of
such amounts pursuant to this proviso, (x) such withdrawal shall not occur more frequently than one time per calendar quarter and
(y) such withdrawal shall occur with five (5) Business Days’ prior written notice by the Borrower (or the Collateral Manager
on its behalf) to the Administrative Agent, the Collateral Agent and the Collateral Administrator (which notice shall attach a
Borrowing Base Calculation Statement demonstrating satisfaction of the Borrowing Base Test on a pro forma basis after giving effect
to such withdrawal and any related distribution or disposition of such amounts by the Borrower). The Borrower shall
not have any legal, equitable or beneficial interest in the Payment Account other than in accordance with this Agreement and the
Priority of Payments.

 

Section 8.04.        The
Unfunded Reserve Account; Fundings

 

In accordance with
this Agreement and the Account Control Agreement, the Collateral Agent shall, on or prior to the Closing Date, establish at the
Custodian a single, segregated trust account, which shall be designated as the “Unfunded Reserve Account”, which
shall be maintained by the Borrower with the Custodian in accordance with the Account Control Agreement and which shall be subject
to the Lien of the Collateral Agent. The only permitted deposits to or withdrawals from the Unfunded Reserve Account shall
be in accordance with the provisions of this Agreement.

 

    78

     

    

 

having stated maturities no later than the Business Day preceding the next Payment Date (or such shorter maturities expressly provided
herein). If, prior to the occurrence of an Event of Default, the Borrower shall not have given any such investment directions,
the Collateral Agent shall seek instructions from the Collateral Manager within three (3) Business Days after transfer of any funds
to such accounts and shall invest in Specified Eligible Investments that mature overnight until it shall receive written instructions
from the Collateral Manager. After the occurrence and during the continuance of an Event of Default, the Collateral Agent shall
invest and reinvest such Monies as fully as practicable in Specified Eligible Investments maturing not later than the earlier of
(i) thirty (30) days after the date of such investment (unless putable at par to the issuer thereof) or (ii) the Business
Day immediately preceding the next Payment Date (or such shorter maturities expressly provided herein). Except to the extent expressly
provided otherwise herein, all interest, gain, loss and other income from such investments shall be deposited, credited or charged
(as applicable) in and to the Interest Collection Subaccount. Absent its timely receipt of such instruction from the Collateral
Manager or Administrative Agent, as applicable, in accordance with the foregoing, the Collateral Agent shall not be under
an obligation to invest (or pay interest on) funds held hereunder. The Collateral Agent shall in no way be liable for any
insufficiency in a Covered Account resulting from any loss relating to any such investment.

 

(b)       The
Collateral Agent agrees to give the Borrower prompt notice if any Covered Account or any funds on deposit in any Covered Account,
or otherwise to the credit of a Covered Account, shall become subject to any writ, order, judgment, warrant of attachment, execution
or similar process. All Covered Accounts shall remain at all times with the Custodian.

 

(c)       The
Collateral Agent shall supply, in a timely fashion, to the Borrower and the Collateral Manager any information regularly maintained
by the Collateral Agent that the Borrower or the Collateral Manager may from time to time reasonably request with respect to the
Collateral, the Covered Accounts and the other Collateral and provide any other requested information reasonably available to the
Collateral Agent and required to be provided by Section 8.07 or to permit the Collateral Manager to perform its obligations
hereunder or the Borrower’s obligations hereunder that have been delegated to the Collateral Manager. The Collateral Agent
shall promptly forward to the Collateral Manager copies of notices and other writings received by it from the Obligor of any Collateral
Loan or from any Clearing Agency with respect to any Collateral Loan which notices or writings advise the holders of such Collateral
Loan of any rights that the holders might have with respect thereto (including requests to vote with respect to amendments or waivers
and notices of prepayments and redemptions) as well as all periodic financial reports received from such Obligor and Clearing Agency
with respect to such Obligor.

 

Section 8.07.         Accountings

 

(a)       Monthly.
Not later than twofifteen (215)
Business Days prior tofollowing the 15thlast
calendar day of each calendar month (other than January, April, July, and October in each year)
such datethe months for which a Payment Date Report is delivered) (the
“Monthly Reporting Date”), the Borrower shall compile and provide (or cause to be compiled and provided) to
the Agents, the Collateral Manager, and the Lenders, a monthly report (which includes a Borrowing Base Calculation Statement prepared
by the Collateral Manager and provided to the Collateral Agent for inclusion in the Monthly Report) (each, a “Monthly
Report”) in accordance with this Section 8.07. The Borrower shall compile and provide (or cause to be compiled
and provided) to the Administrative Agent a loan data file (the “Data File”) for the previous monthly period
ending on the Monthly Report Determination Date (containing such information agreed upon by the Borrower (or the Collateral Manager
on its behalf), and the Administrative Agent). The Borrower shall provide (or cause to be provided) the Data File at
least two (2no later than fifteen (15) Business Days prior
tofollowing the Monthly Reporting Date. As used herein, the “Monthly
Report Determination Date” with respect to any calendar month will be the last calendar
day of the prior calendar month. For the avoidance of doubt, the first Monthly Report following

 

    80

     

    

 

the Seventh Amendment Effective Date shall be delivered on August 15, 2014July
22, 2019 and shall be determined with respect to the Monthly Report Determination Date that is July
31, 2014.June 30, 2019. The Monthly Report for a calendar month shall be
in a form reasonably acceptable to the Borrower, the Collateral Agent, the Collateral Manager and the Administrative Agent and
shall contain the information with respect to the Collateral Loans and Eligible Investments included in the Collateral set forth
in Schedule 2 hereto, and shall be determined as of the Monthly Report Determination Date for such calendar month.

 

(b)       Payment
Date Accounting. The Borrower shall render (or cause to be rendered) an accounting (each, a “Payment Date Report”),
determined as of the close of business on each Determination Date preceding a Payment Date, and shall deliver such Payment Date
Report to the Agents, the Collateral Manager and each Lender not later than the second Business Day preceding the related Payment
Date. The Payment Date Report shall be in a form reasonably acceptable to the Borrower, the Collateral Agent, the Collateral Manager
and the Administrative Agent and shall contain the information set forth in Schedule 3 hereto.

 

In addition, the Borrower
shall provide (or cause to be provided) in each Payment Date Report a statement setting forth in reasonable detail each amendment,
modification or waiver under any Related Document for each Collateral Loan that constitutes a Material Modification that became
effective since the immediately preceding Payment Date Report (or, in respect of the first Payment Date Report, from the Closing
Date).

 

(c)       Failure
to Provide Accounting. If the Collateral Agent shall not have received any accounting provided for in this Section 8.07
on the first Business Day after the date on which such accounting is due to the Collateral Agent, the Collateral Agent shall notify
the Collateral Manager who shall use reasonable efforts to obtain such accounting by the applicable Payment Date.

 

For the avoidance of
doubt, the Borrower has engaged the Collateral Administrator pursuant to the Collateral Administration Agreement to compile and
provide the information and reports to be provided in this Section 8.07.

 

Section 8.08.         Release
of Collateral

 

(a)       If
no Event of Default has occurred and is continuing, the Borrower may, by delivery of a certificate of a Responsible Officer of
the Collateral Manager delivered to the Collateral Agent at least one (1) Business Day prior to the settlement date for any sale
of any item of Collateral certifying that the sale of such security is being made in accordance with Section 10.01
and such sale complies with all applicable requirements of Section 10.01, direct the Collateral Agent to release or cause
to be released such item from the Lien of this Agreement and, upon receipt of such certificate, the Collateral Agent (or Custodian,
as applicable) shall deliver any such item, if in physical form, duly endorsed to the broker or purchaser designated in such
certificate or, if such item is a security is a Clearing Corporation Security, cause an appropriate transfer thereof to be made,
in each case against receipt of the sales price therefor as specified by the Collateral Manager in such certificate; provided
that the Collateral Agent may deliver any such item in physical form for examination in accordance with street delivery custom.

 

(b)       Subject
to the terms of this Agreement, the Collateral Agent (or Custodian, as applicable) shall, upon the receipt of a certificate
of the Borrower, by delivery of a certificate of a Responsible Officer of the Collateral Manager, deliver any Collateral in accordance
with such certificate, and execute such documents or instruments as are delivered by or on behalf of the Borrower and reasonably
necessary to release or cause to be released such security from the Lien of this Agreement, which is set for any mandatory call
or redemption or payment in full to the appropriate paying agent on or before the date set

 

    81Exhibit

Exhibit 10.2

Pursuant to Item 601(b)(10)(iv) of Regulation S-K, certain identified information has been excluded from this exhibit because it is both not material and would likely cause competitive harm to the registrant if publicly disclosed.

April 11, 2019

Re:  Retention Incentives Agreement (“Agreement”)

Dear Roger:

Actuant Corporation (the “Company” or “Actuant”) is considering strategic alternatives with respect to its EC&S segment. It is possible the evaluation of such alternatives could result in a sale of all or substantially all of the EC&S segment (the “Potential Sale”) [FOOTNOTE REDACTED].  For this purpose, the “EC&S segment” shall consist of those business units identified for sale as part of “Project Brewers”. In order to give you an incentive to remain at your job and to work diligently to support the evaluation of strategic alternatives, the Company is offering you retention incentives, subject to the terms of this Agreement.
    
1. Conditional One-Time Grant

The Retention Incentives (as defined below) are one-time benefits that are being extended to you in the event the evaluation of strategic alternatives results in a Potential Sale. They are in addition to your other compensation arrangements, except as otherwise described herein.

2. Duration

If you sign and accept this Agreement, the term of this Agreement will begin on the date noted above (“Effective Date”) and expire upon the earlier of (a) eighteen (18) months from the Effective Date or (b) the termination of a Potential Sale, either when the closing of the Potential Sale occurs (the “Completion Date”) or the Company cancels or chooses not to pursue or to abandon a Potential Sale (the “Cancellation Date”). 

3. Retention Incentives

Your potential Retention Incentives will have several components, as follows:

		
	a)
	Cash Retention Bonus -- You will be eligible for a Cash Retention Bonus of up to Four Hundred Sixty-Five Thousand dollars ($465,000) (described in Sections 3(a)(1) and 3(a)(2), below) subject to the terms of this Agreement. The Cash Retention Bonus will vest and be earned by you based on the achievement of certain vesting events in relation to a Potential Sale, as follows:

		
	1)
	Multiplier Eligible Presentation Bonus - You will earn one-hundred thirty-nine thousand five hundred dollars ($139,500) once management presentations have been completed and second-round bids from potential buyers have been received for a Potential Sale (completion of both requirements shall be referred to as the “Multiplier Eligible Presentation Bonus Vesting Date”). If the requirements described in the previous sentence are not met prior to the expiration of this Agreement, or if you do not meet the Continuous Employment requirement as of the Multiplier Eligible Presentation Bonus Vesting Date, the Multiplier Eligible Presentation Bonus shall not vest. If earned and vested, your Multiplier Eligible Presentation Bonus will be paid to you within twenty (20) days after the Multiplier Eligible Presentation Bonus Vesting Date in conjunction with a regularly scheduled payroll date for your location.  

		
	2)
	Multiplier Eligible Completion Bonus - You will also earn three-hundred twenty-five thousand five hundred dollars ($325,500) on the Completion Date (the “Multiplier Eligible Completion Bonus Vesting Date”). If a Potential Sale is not completed prior to the expiration of this Agreement, or if you do not meet the Continuous Employment requirement as of the Multiplier Eligible Completion Bonus Vesting Date, the Multiplier Eligible Completion Bonus shall not be paid. If earned and vested, your Multiplier Eligible Completion Bonus will be paid to you on, or within, twenty (20) days after the Completion Date.

		
	b)
	Cash Retention Bonus Multiplier - To allow you to share in the success of a Potential Sale, the Multiplier Eligible Presentation Bonus and the Multiplier Eligible Completion Bonus could be increased to up to (and capped at) twice the amount reflected in Sections 3(a)(1) and 3(a)(2), above, if the cash purchase price paid to the Company (i.e., consideration exclusive of assumed liabilities and other consideration provided by the buyer for the Potential Sale) exceeds [REDACTED] times the Proforma Sale EBITDA for the EC&S segment of [REDACTED].

This “Cash Bonus Retention Multiplier” will be calculated on a linear basis in accordance with the following example, which uses a theoretical Multiplier Eligible Presentation Bonus and the Multiplier Eligible Completion Bonus total of $200,000 for illustrative purposes only:

	
				
	Proforma Sale EBITDA Multiple Achieved
	Cash Retention Bonus  Multiplier
	Additional Cash Retention Bonus Payout 
	Total Cash Retention Bonus Amount

	[REDACTED]
	1.0
	0 X $200,000 = $0
	$200,000 + $0 = $200,000

	[REDACTED]
	1.5
	0.5 X $200,000 = $100,000
	$200,000 + $100,000 = $300,000

	[REDACTED]
	2.0
	1.0 X $200,000 = $200,000
	$200,000 + $200,000 = $400,000

For clarity, the Cash Retention Bonus Multiplier, will be earned and vested only upon the closing of a Potential Sale (i.e., on the Completion Date), and only if the Continuous Employment requirement has been met as of such Completion Date.  If earned and vested, the Cash Bonus Retention Multiplier will be paid on, or within, twenty (20) days after the Completion Date.

If a Potential Sale is not completed prior to the expiration of this Agreement, the Cash Bonus Retention Multiplier shall not be paid.

		
	c)
	Accelerated Vesting of Equity Grants - You also will be eligible for accelerated vesting of all unvested Restricted Stock Units (“RSUs”), Performance Stock Units (“PSUs”) (at target), and Actuant stock options that have been granted to you and are outstanding as of the Completion Date. The condition for accelerated vesting of these unvested equity grants is the closing of a Potential Sale and, accordingly, the vesting date for this benefit is the Completion Date. If a Potential Sale is not completed prior to the expiration of this Agreement, or if you do not meet the Continuous Employment requirement as of the Completion Date, the vesting described in this paragraph will not occur, and your RSUs, PSUs, and stock options will become vested only in accordance with the terms of your existing RSU, PSU, and stock option agreements.

		
	d)
	Enhanced Bonus - 

(i)    Completion Date on or before August 31, 2019 -- If a Potential Sale is completed on or before August 31, 2019, you will receive an enhanced bonus instead of your regular bonus under the corporate bonus plan (“Enhanced Bonus”) for the fiscal year ending August 31, 2019. The amount of the Enhanced Bonus will be twice the highest annual bonus payout you received for the three (3) full fiscal years preceding the Completion Date. If you receive an Enhanced Bonus you will not be eligible for an annual bonus on the terms of the corporate bonus plan currently applicable to you for the 2019 fiscal year. If a Potential Sale is not completed on or before August 31, 2019, or if you do not meet the Continuous Employment requirement as of the Completion Date, no Enhanced Bonus will be payable to you (but you will remain eligible for an annual bonus on the terms of the corporate bonus plan currently applicable to you). If vested, the Enhanced Bonus will be paid on, or within, twenty (20) days after the Completion Date.

(ii)    Completion Date after August 31, 2019 -- If a Potential Sale is completed after August 31, 2019 (and before the expiration of this Agreement), you will receive an Enhanced Bonus. The amount of the Enhanced Bonus will be the amount by which (A) exceeds (B), where (A) is twice the highest annual bonus payout you received under the annual corporate bonus plan for the three (3) full fiscal years preceding the Completion Date and (B) is the actual bonus you received under the corporate bonus plan for the fiscal year ending August 31, 2019. If an Enhanced Bonus is received under this paragraph, you will remain eligible for an annual bonus under the annual corporate bonus plan for the fiscal year ending August 31, 

2020, subject to the terms and conditions of the annual corporate bonus plan. If a Potential Sale is not completed before the expiration of this Agreement, or if you do not meet the Continuous Employment requirement as of the Completion Date, no Enhanced Bonus will be payable to you. If vested, the Enhanced Bonus will be paid on, or within, twenty (20) days after the Completion Date.

		
	e)
	Severance - If a Potential Sale is completed prior to the expiration of this Agreement and one of the following occurs: (1) you are involuntarily terminated (other than for Cause) by the Company within the period beginning six (6) months prior to the Completion Date, (2) you are involuntarily terminated (other than for Cause) by the Company within the 24 months after the Completion Date, or (3) you terminate your employment with the Company for Good Reason within 24 months after the Completion Date, then the Company will provide you the following Severance benefits:

A)    a lump sum equal to twice your base salary in effect as of the Effective Date; 
B)    the Company, at the Company’s cost, shall continue to provide you with the welfare benefits and other perquisites you were receiving at the time of the Completion Date for a period of two years following your termination of employment. For purposes hereof, perquisites will include your right to lease a car or a car allowance, as the case may be.  The amount of expenses eligible for reimbursement, or in-kind perquisites provided, during a taxable year may not affect the expenses eligible for reimbursement, or in-kind perquisites to be provided, in any other taxable year.  Any reimbursement of an eligible expense must be made on or before the last day of your taxable year following the taxable year in which the expense was incurred. This right to reimbursement or in-kind perquisites may not be subject to liquidation or exchange for another benefit 

Together (A) and (B) are the “Severance Benefit”. Your involuntary termination excludes the termination of your employment due to your resignation (for any reason other than for Good Reason) or the termination of your employment due to Cause (both as defined below). The Severance Benefit is not payable if your termination is due to death or Disability. The Severance Benefit is not triggered by a termination of employment due to your acceptance of employment with the Successor (as defined in Section 4(f)), but may still be payable if payable under Section 5(b)(i) or Section 5(b)(iv). If a Potential Sale is not completed, no Severance Benefit will be payable to you. Notwithstanding anything herein to the contrary, no amount is payable to you under this Section 3(e) unless you also execute a release of claims in favor of the Company, its affiliates and their respective officers and directors in a form provided by the Company (the “Release”) and such Release becomes effective and irrevocable within fifty-five (55) days after your termination (or, in the event of a Severance Benefit payable pursuant to Section 3(e)(1), within fifty-five (55) days after the Completion Date)(this period is the “Release Execution Period”). If the Severance Benefit is payable and was triggered pursuant to Section 3(e)(1), the portion of the Severance Benefit described in Section 3(e)(A) will be paid in a single lump sum payment as of or within the sixty (60) days after the Completion Date (provided that, if the Release Execution Period begins in one taxable year and ends in another taxable year, payment shall not be made until the beginning of the second taxable year). If the Severance Benefit is payable and was triggered pursuant to Section 3(e)(2) or Section 3(e)(3), the portion of the Severance Benefit described in Section 3(e)(A) will be paid in a single lump sum payment within the sixty (60) days after your termination (provided that, if the Release Execution Period begins in one taxable year and ends in another taxable year, payment shall not be made until the beginning of the second taxable year). 

		
	f)
	Legal Representation - If the buyer is a private equity group or financial sponsor, the Company will engage counsel with expertise in negotiating compensation and employment terms on behalf of executives in comparable circumstances. Such counsel will be distinct from counsel representing the Company for a Potential Sale and will represent the key transferring employees as a group. The Company will pay for all reasonable fees and costs incurred in the group representation.  Reimbursement of the legal fees shall occur no later than twenty (20) days following the Completion Date (and in no event later than the last day of your taxable year following the taxable year in which the expense was incurred). The amount of expenses eligible for reimbursement during a taxable year may not affect the expenses eligible for reimbursement in any other taxable year. This right to reimbursement is not subject to liquidation or exchange for another benefit.

4. Eligibility Criteria and Definitions

a)    Your eligibility to receive the Retention Incentives set out in Section 3, above, is subject to the following conditions:

(i)    Acceptance of this Agreement - To be eligible for the Retention Incentives, you must sign this Agreement below, as well as Appendix A (the Agreement Barring Certain Unfair Activities), and return it to Romita Bhagwani at N86 W12500 Westbrook Crossing, Menomonee Falls, Wisconsin 53051. By signing below you agree to be bound by the terms of this Agreement.  By signing this Agreement you agree that the opportunity to earn the compensation set forth in Section 3 is consideration for your agreement to the Appendix A (the Agreement Barring Certain Unfair Activities), and its attachments. If you do not wish to accept, you do not need to do anything.

(ii)    Waiver of Your Change in Control Agreement - Subject to Section 5(a)(ii), this document shall be considered an amendment to and complete replacement of the Change in Control Agreement effective August 7, 2017 between you and the Company (“CIC Agreement”). The benefits in Section 3 of this Agreement are conditioned on your waiver of your rights under the CIC Agreement. You agree that upon the completion of a Potential Sale the benefits provided under this Agreement will be in lieu of all benefits available to you under the CIC Agreement.

b)    “Continuous Employment” means that you must remain continuously employed by the Company through each vesting date to receive the corresponding component of the Retention Incentives. If you: (i) resign (other than for “Good Reason,” as defined below) before a vesting date; or (ii) are terminated for “Cause” (as defined below) at any time before a vesting date, you will forfeit all components of the Retention Incentives not earned and vested as of that time. In such an event, you will not, however, be required to repay any component of the Retention Incentives you received prior to the forfeiture of the remaining incentives.  If you are involuntarily terminated (other than for Cause), if you terminate voluntarily for Good Reason, or if your employment terminates as a result of your death or Disability, this Continuous Employment condition will be waived and deemed satisfied for purposes of Sections 3(a), 3(b), 3(c), 3(d) and 3(f). “Disability” means a condition entitling you to receive benefits under the Company’s long term disability plan, policy or arrangement. If no such plan, policy or arrangement is then maintained by the Company and applicable to you, “Disability” will mean your inability to perform your duties under this Agreement due to a mental or physical condition that can be expected to result in death or that can be expected to last (or has already lasted) for a continuous period of ninety (90) days or more, or for 180 days in any 360 consecutive days period.

c)     “Good Reason” means, without your prior written consent: (i) a material, adverse change in your title, authority or duties, (ii) a material reduction in your base salary or target annual bonus opportunity from those in effect as of the Effective Date of this Agreement, or (iii) your relocation to an office more than forty (40) miles from your current place of employment, (iv) a material reduction in the total aggregate value of the fringe benefits received by you from those in effect as of the Effective Date of this Agreement.  Notwithstanding the foregoing, if you are offered a Comparable Position (as defined in Section 4(e), below), and you turn down that offer, the term “Good Reason” shall mean only the events described in Sections 4(c)(ii) or 4(c)(iii).  However, none of the foregoing events or conditions will constitute Good Reason unless: (A) you provide the Company’s General Counsel with written objection to the event or condition within thirty (30) days following the initial existence of the condition, (B) the Company does not reverse or otherwise cure the event or condition within fifteen (15) days of receiving that written objection, and (C) you resign within thirty (30) days following the expiration of that cure period.
 
d)    “Cause” means: (i) conviction, or a plea of guilty or no contest, of a felony; (ii) conviction, or a plea of guilty or no contest, of a crime involving dishonesty, disloyalty or fraud; (iii) reporting to work under the influence of alcohol; (iv) the use of illegal drugs (whether or not at the workplace); (v) conviction, or a plea of guilty or no contest, of conduct in conjunction with your employment duties which could reasonably be expected to, or which does, cause the Company or any of its affiliates public disgrace or disrepute or economic harm; (vi) repeated failure to perform duties as reasonably directed by the Board or Chief Executive Officer (or the person to whom you directly report); (vii) gross negligence or willful misconduct with respect to the Company; (viii) obtaining any personal profit not thoroughly disclosed to and approved in writing by the Board or Chief Executive Officer in connection with any transaction entered into by, or on behalf of, the Company or its affiliates; (ix) violation of any of the terms of the Company’s or any of its affiliates’ established policies which is not cured to the Board’s reasonable satisfaction within twenty (20) working days after you receive written notice thereof; or (x) any other material breach of this Agreement by you which is not cured to the Board’s reasonable satisfaction within twenty (20) working days after you receive written notice thereof.
e)    “Comparable Position” means employment with the Successor that includes: (i) substantially similar base salary and bonus opportunity as you have with Actuant immediately prior to the Completion Date, (ii) a location or 

headquarters where you are normally expected to provide services no more than forty (40) miles from your current place of employment, and (iii) severance protection that is substantially similar to the severance protection provided for in Sections 3(e)(2) and 3(e)(3) of this Agreement.  For this purpose, if this Agreement is assumed by the Successor (whether by Agreement or by operation of law), the requirement of Section 4(e)(ii) is presumed to have been met.

f)    “Successor” means the purchaser of the EC&S segment in the event a Potential Sale occurs.

5. Cancellation of Sale; Expiration of Agreement; Obligations of Successor

(a) Cancellation of Potential Sale; Expiration of Agreement. 

(i)    The Company reserves the right, in its absolute discretion, to cancel, suspend or abandon the pursuit of a Potential Sale. If the Company cancels, suspends or abandons the pursuit of a Potential Sale, or if you terminate employment with the Company without triggering a severance payment in accordance with Section 3(e), this Agreement shall terminate and you will no longer be eligible for any components of the Retention Incentives not earned and vested as of the Cancellation Date. The termination of the pursuit of a Potential Sale or your termination of employment will not affect your entitlement to any components of the Retention Bonus earned and vested by, or paid to you prior to the Cancellation Date, and you will not be required to return or repay any such amounts (except to the extent of the application of the Clawback Policy as described in Section 7). 

(ii)    In the event that this Agreement expires during your employment with the Company because either: (A) eighteen (18) months have passed from the Effective Date without the occurrence of a Potential Sale, or (B) a Cancellation Date occurs, this Agreement shall cease to apply and the CIC Agreement shall be reinstated in full force and effect. For the avoidance of doubt, if any payment is made (or due to be made) under this Agreement, other than a payment described in Section 3(a)(1), the CIC Agreement shall not be subject to reinstatement hereunder.

(iii)    In the event that a Change in Control (as defined in the CIC Agreement) occurs prior to the expiration of this Agreement, this Agreement shall cease to apply and the CIC Agreement shall be reinstated in full force and effect. Notwithstanding the foregoing sentence, if the sale of the EC&S segment is the primary cause of the Change in Control, then this Agreement shall apply (and the CIC Agreement shall not be reinstated). For the avoidance of doubt, if any payment is made (or due to be made) under this Agreement, other than a payment described in Section 3(a)(1), the CIC Agreement shall not be subject to reinstatement hereunder. 

(iv)    In no event shall these provisions be interpreted to provide for the payment of benefits under both this Agreement and the CIC Agreement (other than a payment described in Section 3(a)(1) of this Agreement prior to the expiration of this Agreement).

(b) Treatment of this Agreement in the Event of a Potential Sale. If a Potential Sale occurs prior to or as of the expiration of this Agreement, the following provisions shall govern the continuation or termination of this Agreement: 

(i)    If both of the following occur: (A) a Potential Sale occurs, and (B) you accept a Comparable Position, then, unless this Agreement is assumed by the Successor (either by assignment or by operation of law), it shall terminate upon the Completion Date, subject to the obligation of the Company to make applicable payments under Sections 3(a), (b), (c), (d), and (f) (but only to the extent a payment obligation has been triggered under such Section prior to or as of the Completion Date). If, instead, this Agreement is assumed by the Successor (either by assignment or by operation of law), it shall remain in force and effect for twenty-four (24) months following the Completion Date (or, if earlier, until your termination of employment that does not trigger a payment obligation under Section 3(e) of this Agreement, as modified as follows) and the term “Successor” shall replace the term “Company” for purposes of Sections 3(e)(2) and 3(e)(3) (and the successor shall have the obligation to pay any Severance under this Agreement, if any).  For the avoidance of doubt, under the circumstances described in this Section 5(b)(i) the following limitations and provisions shall apply: (W) Section 3(e)(1) shall not be applicable, (X) Sections 3(e)(2) and 3(e)(3) shall not be triggered by your termination of employment with Actuant, and (Y) the CIC Agreement shall not be reinstated. 

(ii)    If both of the following occur: (A) a Potential Sale occurs and (B) you are offered a Comparable Position but you do not accept the Comparable Position, then this Agreement shall terminate upon the Completion Date, subject to the obligation of Actuant to make applicable payments under Sections 3(a), (b), (c), (d), and (f) (but only to the extent a payment obligation has been triggered under such Section prior to or as of the Completion Date). For the avoidance of doubt, the Company shall not be obligated to make any payment pursuant to Section 3(e) and the CIC Agreement shall not be reinstated under the circumstances described in this Section 5(b)(ii).

(iii)    If all three of the following occur: (A) a Potential Sale occurs, (B) you are not offered a Comparable Position, and (C) you do not accept employment with the Successor, then Section 3(e) of this Agreement shall remain in force and effect for twenty-four (24) months following the Completion Date (or, if earlier, until your termination of employment that does not trigger a payment obligation under Section 3(e) of this Agreement). For the avoidance of doubt, the CIC Agreement shall not be reinstated under the circumstances described in this Section 5(b)(iii).

(iv)    If all three of the following occur: (A) a Potential Sale occurs, (B) you are not offered a Comparable Position, and (C) you accept employment with the Successor, then this Agreement shall remain in force and effect for twenty-four (24) months following the Completion Date (or, if earlier, until your termination of employment that does not trigger a payment obligation under Section 3(e) of this Agreement, modified as follows) and the term “Successor” shall replace the term “Company” for purposes of Sections 3(e)(2) and 3(e)(3). For the avoidance of doubt, under the circumstances described in this Section 5(b)(iv) the following limitations shall apply: (W) Section 3(e)(1) shall not be applicable, (X) Sections 3(e)(2) and 3(e)(3) shall not be triggered by your termination of employment with Actuant, (Y) the CIC Agreement shall not be reinstated, and (Z) if a payment obligation is triggered under Section 3(e), Actuant, not the Successor, shall be obligated to make such payments.

(c) Survival. Upon the expiration or other termination of this Agreement, the respective rights and obligations of the parties hereto shall survive such expiration or other termination to the extent necessary to carry out the intentions of the parties under this Agreement.  Without limiting the foregoing, the obligations set forth in Appendix A shall not be extinguished by reason of the expiration, assumption, or termination of this Agreement.

6. No Change in Your Employment Status or Terms

This Agreement is not a guarantee of your continued employment. Nor does it change your employment status with the Company, including, for example, your status as an employee-at-will (if applicable). This Agreement also does not amend or modify the terms of any of the Company’s compensation, perquisite or benefit plans applicable to you, except as expressly provided in this Agreement. 

7. Clawback Policy
The Retention Incentives are subject to the terms of the Company’s Clawback Policy, as amended or replaced from time to time, to the extent the Retention Incentives constitute “Incentive Compensations” under the Clawback Policy. The Clawback Policy outlines circumstances in which the Company will be entitled to take action to clawback the Retention Incentives, including by requiring you to repay some or all of the Retention Incentives.

8. Taxes

(a)    The Company is not responsible for any duties or taxes that are, or may become, payable on the Retention Incentives, except for payroll taxes or other taxes imposed on the Company or its affiliates in its capacity as your employer. The Company may make any withholding or payment that it is required to make by law (if any) in connection with the Retention Incentives. Any amount paid will be subject to tax. You should seek your own tax advice to understand the potential tax implications of this Agreement.
(b)    Excise Tax Adjustment.
(1)    Subject to the provisions of this Section 8(b), in the event it is determined that all or any part of the benefits payable to you under this Agreement or any other payments or benefits payable to you under any other agreement with, or plan or policy of, the Company (the “Total Payments”) will, as determined by the Company, be subject to the tax (the “Excise Tax”) imposed by Section 4999 of the Internal Revenue Code 

of 1986, as amended (the “Code”) and the regulations thereunder (or any similar tax that may hereafter be imposed), then such payment shall be either: (i) provided to you in full, or (ii) provided to you to such lesser extent as would result in no portion of such payment being subject to such Excise Tax, whichever of the foregoing amounts, when taking into account such Excise Tax, results in the receipt by you of the greatest amount of the payment, notwithstanding that all or some portion of such payment may be taxable under such Excise Tax. In determining whether payments under this Agreement will be subject to the Excise Tax, the Company will take into account the value of your agreement to refrain from certain activities as expressed in Appendix A and its Attachments A and B, but only to the extent allowed by law (as interpreted by the Company’s tax and/or legal counsel). To the extent such payment needs to be reduced pursuant to the preceding sentence, reductions shall come from taxable amounts before non-taxable amounts and beginning with the payments otherwise scheduled to occur soonest.  You agree to cooperate fully with the Company to determine the benefits applicable under this Section 8(b).  Prior to the closing of the Potential Sale, the Company will provide to you a summary of the final calculations required for purposes of determining the applicability of the Excise Tax Adjustment under this section 8(c).  Such summary shall be provided in a reasonable time frame prior to the closing of the Potential Sale, as determined by the Company taking into account the Company’s need to keep such information confidential, the Company’s need to negotiate with the purchaser on related matters, and the Company’s need to meet the requirements of any an applicable purchase agreement.
(2)    For purposes of determining whether any of the Total Payments will be subject to the Excise Tax, and the amounts of such Excise Tax, the following shall apply:
(i)    Any payments or benefits received or to be received by you in connection with a Change in Control (as defined under Code Section 280G) or your termination of employment (whether pursuant to the terms of this Agreement or any other plan, policy, arrangement or agreement with the Company, or with any person whose actions result in a Change in Control (as defined under Code section 280G) or any person affiliated with the Company or such persons) shall be treated as “parachute payments” within the meaning of Code Section 280G(b)(2), and all “excess parachute payments” within the meaning of Code Section 280G(b)(1) shall be treated as subject to the Excise Tax, unless in the opinion of the Company such other payments or benefits (in whole or in part) do not constitute parachute payments, or unless such excess parachute payments (in whole or in part) represent reasonable compensation for services actually rendered within the meaning of Code Section 280G(b)(4) in excess of the base amount within the meaning of Code Section 280G(b)(3), or are otherwise not subject to the Excise Tax.  
(ii)    The value of any noncash benefits or any deferred payment or benefit shall be determined in accordance with the principles of Code Sections 280G(d)(3) and (4).
(c)     Code Section 409A and Payment Timing. The following additional rules shall apply to payments under this Agreement:
(i)    Notwithstanding anything to the contrary set forth in this Section 8 or elsewhere in this Agreement, any payments made: (A) within 2-1⁄2 months of the end of the Company’s taxable year containing the date of your involuntary (or Good Reason) termination or vesting date, as applicable, or (B) within 2-1⁄2 months of your taxable year containing the date of your involuntary (or Good Reason) termination or vesting date, as applicable, shall be exempt from Code Section 409A.  Payments subject to subparagraphs (A) or (B) shall be treated and shall be deemed to be an entitlement to a separate payment within the meaning of Section 409A of the Code and the regulations thereunder.
(ii)    To the extent payments under this Agreement are not exempt from Section 409A under subparagraph (i) above, any payments made in the first 6 months following your termination of employment that are equal to or less than the lesser of the amounts described in Treasury Regulation Section 1.409A-1(b)(9)(iii)(A)(1) and (2) shall be exempt from Section 409A.  Payments subject to this subparagraph (ii) shall be treated and shall be deemed to be an entitlement to a separate payment within the meaning of Code Section 409A and the regulations thereunder.
(iii)    To the extent payments under this Agreement are not exempt from Section 409A under subparagraphs (i) or (ii) above, any payments made equal to or less than the applicable dollar amount under Code Section 402(g)(1)(B) for the year of severance from employment shall be exempt from Section 409A in accordance with Treasury Regulation Section 1.409A-1(b)(9)(v)(D).  Payments subject to this subparagraph (iii) shall be treated and shall be deemed to be an entitlement to a separate payment within the meaning of Section 409A of the Code and the regulations thereunder.

(iv)    To the extent payments under this Agreement are not exempt from Code Section 409A under subparagraphs (i), (ii), or (iii) above, and to the extent you are a "specified employee" (as defined below), amounts payable to you due to your severance from employment (as defined below) shall begin no sooner than six months after your severance from employment (other than for Death); provided, however, that any payments not made during the six (6) month period described in this subsection due to the 6-month delay period required under Treasury Regulation Section 1.409A-3(i)(2) shall be made in a single lump sum as soon as administratively practicable after the expiration of such six (6) month period, and the balance of all other payments required under this Agreement shall be made as otherwise scheduled in this Agreement.  
(v)    For purposes of this Section 8, any reference to severance of employment or termination of employment shall mean a "separation from service" as defined in Treasury Regulation section 1.409A-1(h).  For purposes of this Agreement, the term "specified employee" shall have the meaning set forth in Treasury Regulation Section 1.409A-1(i).
9. Entire Agreement
This Agreement, including Appendix A, and its Attachments A and B, contain the entire agreement and understanding of the parties relating to the Retention Incentives and supersedes all prior and contemporaneous discussions, agreements and understandings of every nature relating to the Retention Incentives. Without limiting the foregoing, this agreement shall not supersede or extinguish your RSU, PSU, and stock option agreements with Actuant.  This Agreement may not be changed or modified, except by an agreement in writing signed by you and the Company. 

10. Disputes Relating to the Interpretation of this Agreement

Any disputes relating to the administration of this Agreement will be resolved by the Company using its reasonable discretion, including, without limitation, any disagreements about the determination or correctness of Proforma Sale EBITDA, the calculation of the Cash Retention Bonus Multiplier, or the determination of any other benefit extended under this Agreement.  The decision of the Company on any disputes arising under the Agreement, including (but not limited to) questions of construction, interpretation and administration shall be final, conclusive and binding on all persons having an interest in or under the Agreement. The previous sentence shall not foreclose the possibility of legal action on the basis that the discretion exercised by the Company was not reasonable.

11. Governing Law; Headings; Amendment

This Agreement shall be governed by and construed in accordance with the internal laws of the State of Wisconsin, without reference to principles of conflict of laws. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect. This Agreement may not be amended or modified otherwise than by a written agreement executed by the parties hereto or their respective successors and legal representatives.

[The remainder of this page is intentionally blank.]

If you accept the terms of this Agreement, please sign below in the space provided.

Sincerely,

/s/ Randal W. Baker 

Randy Baker

I agree to the above Retention Bonus Agreement terms.

Signature:  /s/ Roger Roundhouse                             Dated: April 12, 2019
          Roger Roundhouse

APPENDIX A
Agreement Barring Certain Unfair Activities

This Agreement Barring Certain Unfair Activities (“Agreement”) is Appendix A to the Project Brewers Retention Incentives Agreement (the “Retention Agreement”) between Actuant Corporation, a Wisconsin corporation, and Roger Roundhouse (the “Employee”). 

WHEREAS, this Agreement relates to the participation of Employee in the Retention Agreement offered by Actuant Corporation, a Wisconsin Corporation.  Actuant Corporation, its divisions, subsidiaries and affiliates, and successors and assigns, are referred to collectively in this Agreement as the “Company.” 

WHEREAS, Employee has been informed and Employee understands that Employee’s employment or continued employment with the Company is not contingent on participation in the Retention Agreement and Employee has voluntarily elected to participate in the Retention Agreement pursuant to the terms and conditions of the Retention Agreement including, but not limited to, agreeing to the terms and conditions of this Agreement; and
    
WHEREAS, by accepting the Retention Agreement, Employee acknowledges that Employee is bound by the terms of this Agreement and Employee is hereby advised to consult with his own legal counsel; and 
    
WHEREAS, Employee has served in various high level and executive capacities with the Company including most recently as its Executive Vice President, Engineered Solutions;
 
WHEREAS,  during the course of employment, Employee has learned or will learn confidential information regarding Company’s customers, and/or has established or will establish, maintain, and improve knowledge of or relationships or goodwill with Company’s customers, and/or has learned and will learn Company’s Trade Secrets or Confidential Information (as such terms are defined below).  Company’s Confidential Information, Trade Secrets, and customer relationships have been developed by Company at considerable expense over a number of years and but for Employee’s employment with Company, Employee would not know Company’s Trade Secrets and Confidential Information, and Employee would not be able to create, improve, and maintain relationships with Company’s customers.

NOW, THEREFORE, in consideration of the foregoing recitals, Employee’s participation in the Retention Agreement and the promises set forth therein, and the promises and covenants set forth herein, and for other good and valuable consideration, the sufficiency of which are hereby acknowledged, the Parties agree as follows:

		
	1.
	Incorporation or recitals.  The parties represent and warrant that the above recitals are true and accurate and are incorporated herein as part of the Agreement.

		
	2.
	Definitions.  Unless otherwise defined herein, the capitalized terms set forth in this Agreement shall have the definitions as set forth in Attachment A.  Attachment A is incorporated into and is part of this Agreement.

		
	3.
	Duty of Loyalty.  Employee acknowledges that Employee is a key employee of the Company and owes the Company a fiduciary duty of loyalty.  During employment with Company, Employee shall owe Company an undivided duty of loyalty, and shall take no action adverse to that duty of loyalty.  Employee’s duty of loyalty to Company includes but is not limited to a duty to promptly disclose to Company any information that might cause Company to take or refrain from taking any action, or which otherwise might cause Company to alter its behavior.  Without limiting the generality of the foregoing, Employee shall promptly notify Company at any time that Employee decides to terminate employment with Company or enter into competition with Company, as Company may decide at such time to limit, suspend, or terminate Employee’s employment or access to Company’s Confidential Information, Trade Secrets, and/or customer relationships.  Employee’s privilege to access and use Company’s computers, and to access and use Company’s electronically stored information including Company’s Confidential Information and Trade Secrets, are revoked the moment Employee takes any action adverse to Employee’s duty of loyalty to Company.

		
	4.
	Nondisclosure of Third Party Confidential Information.  During Employee’s employment with Company and after the Termination Date, Employee shall not use or disclose Third Party Confidential Information for as long as the relevant third party has required Company to maintain its confidentiality, or for so long as required by applicable law, whichever period is longer.    

		
	5.
	Non-disclosure of Trade Secrets.  During employment and after the Termination Date, Employee shall not use or disclose Company’s Trade Secrets so long as they remain Trade Secrets, except on behalf of and at the direction of the Company as part of Employee’s duties for the Company.  Nothing in this Agreement shall limit either Employee’s statutory or other duties not to use or disclose Company’s Trade Secrets, or Company’s remedies in the event Employee uses or discloses Company’s Trade Secrets.

		
	6.
	Obligations Not to Disclose or Use Confidential Information.  Except as set forth herein or as expressly authorized in writing on behalf of Company, Employee agrees that while Employee is employed by Company and during the two (2) year period commencing at the Termination Date, Employee will not use or disclose (except in discharging Employee’s job duties with Company) any Confidential Information, whether such Confidential Information is in Employee’s memory or it is set forth electronically, in writing or other form.  This prohibition does not prohibit Employee’s disclosure of information after it ceases to meet the definition of “Confidential Information,” or Employee’s use of general skills and know-how acquired during and prior to employment by Company, so long as such use does not involve the use or disclosure of Confidential Information; nor does this prohibition restrict Employee from providing prospective employers with an employment history or description of Employee’s duties with Company, so long as Employee does not use or disclose Confidential Information.  Notwithstanding the foregoing, with respect to information which is subject to a law governing confidentiality or non-disclosure, Employee shall keep such information confidential for so long as required by law, or for two (2) years, whichever period is longer.  This Paragraph shall not preclude employees within the meaning of the National Labor Relations Act from exercising Section 7 rights they may have to communicate about working conditions.  This Paragraph shall not bar Employee from making disclosures to government entities to the extent required by applicable law or disclosures made in good faith pursuant to applicable “whistleblower” laws or regulations or disclosures to government agencies within the scope of their jurisdiction.

		
	7.
	Return of Property; No Copying or Transfer of Documents.  All equipment, books, records, papers, notes, catalogs, compilations of information, data bases, correspondence, recordings, stored data (including but not limited to data or files that exist on any personal computer or other electronic storage device), software, and any physical items, including copies and duplicates, that Employee generates or develops or which come into Employee’s possession or control, which relate directly or indirectly to, or are a part of Company’s (or its customers’) business matters, whether of a public nature or not (collectively “Company Records”), shall be and remain the property of Company, and Employee shall deliver all such materials and items, and any and all copies of them, to Company upon termination of employment.  During employment or after Termination Date, Employee will not copy, duplicate, or otherwise reproduce, or permit copying, duplicating, or reproduction of Company Records without the express written consent of Company, or, as a part of Employee’s duties performed hereunder for the benefit of Company.  Employee expressly covenants and warrants, upon termination of employment for any reason (or no reason), that Employee shall promptly deliver to Company any and all originals and copies of Company Records in Employee’s possession, custody, or control, and that Employee shall not make, retain, or transfer to any third party any copies thereof.  In the event any Confidential Information or Trade Secrets are stored or otherwise kept in or on a computer hard drive or other storage device owned by or otherwise in the possession or control of Employee (each individually an "Employee Storage Device"), upon termination of employment Employee will present every such Employee Storage Device to Company for inspection and removal of all information regarding Company or its customers (including but not limited to Confidential Information or Trade Secrets) that is stored on the Employee Storage Device.  This Paragraph shall not bar Employee from retaining Employee’s own payroll, retirement, insurance, tax, and other personnel documents related to Company.

		
	8.
	Covenants Barring Certain Unfair Activities.  Employee shall abide by such restrictions in Attachment B hereto.   Attachment B is incorporated into and is part of this Agreement.

		
	9.
	Non-Solicitation of Certain Employees.

		
	(a)
	Non-solicitation of Management Employees.  For twelve (12) months following the Termination Date, Employee shall not, without the prior written consent of Company, encourage, cause, or solicit, or assist others in encouraging, causing, or soliciting, a Management Employee to terminate their employment with Company to provide Key Services in competition with Company, unless such Management Employee has already ceased employment with Company.

		
	(b)
	Non-solicitation of Key Employees. For twelve (12) months following the Termination Date, Employee shall not, without the prior written consent of Company, encourage, cause, or solicit, or assist others in encouraging, causing, or soliciting, a Key Employee to terminate their employment 

with Company to provide Key Services in competition with Company, unless such Key Employee has already ceased employment with Company. 
		
	(c)
	Non-solicitation of Supervised Employees. For twelve (12) months following the Termination Date, Employee shall not, without the prior written consent of Company, encourage, cause, or solicit, or assist others in encouraging, causing, or soliciting, a Supervised Employee to terminate their employment with Company to provide Key Services in competition with Company, unless such Supervised Employee has already ceased employment with Company.

The foregoing restrictions (in this Section 9) will not apply to the hire of an applicant who was directed by a general advertisement to a position in which the applicant will provide Key Services in competition with the Company.

		
	10.
	Proprietary Creations. All Proprietary Creations are the sole and exclusive property of the Company whether patentable or registrable or not, and Employee assigns all of Employee’s rights, title, and interest in same to the Company.  Further, all Proprietary Creations which are copyrightable shall be considered “work(s) made for hire” as that term is defined by U.S. Copyright Law.  If for any reason a U.S. Court of competent jurisdiction determines such Proprietary Creations not to be works made for hire, Employee will assign all rights, title, and interest in such works to the Company and, to the extent permitted by law, Employee hereby assigns all of Employee’s rights, title, and interest in such Proprietary Creations to the Company.  Employee will promptly disclose all Proprietary Creations to the Company and, if requested to do so, provide the Company a written description or copy thereof.  Employee is not required to assign rights to any invention for which no equipment, supplies, facility, or trade secret information of the Company was used and which was developed entirely on Employee's own time, unless (a) the invention relates (i) to the business of the Company or (ii) to the Company's actual or demonstrably anticipated research or development, or (b) the invention results from any work performed by Employee for the Company.  

		
	11.
	Remedies.  In addition to other remedies provided by law or equity, the Parties agree that in the event of any breach or threatened breach of this Agreement, Company may obtain interim or other injunctive relief, in addition to any other remedies available, without the need to post a bond.   Employee further agrees that any breach of this Agreement would result in irreparable harm to Company entitling Company to an injunction prohibiting further breaches of these Paragraphs.  The Parties agree that in the event Employee breaches this Agreement, Employee shall pay the Company’s reasonable attorney’s fees and costs arising out of any litigation resulting from Employee’s breach.  

		
	12.
	 Assignment and Third Party Beneficiary.  Employee acknowledges and agrees that Company may assign its rights under the Agreement to any assignee or successor, including but not limited to a “Successor” (as defined in Section 4(f)) of the Retention Agreement).  Such assignment shall not require the authorization of Employee.  Employee may not assign or delegate Employee’s rights or obligations under this Agreement.  Employee also acknowledges and agrees that any successor, including Successor, is a third-party beneficiary of this Agreement with equal rights to enforce the terms and conditions set forth herein.  Notwithstanding this Section 12 or any other provision in this Agreement, neither the employee’s employment with Company nor Employee’s subsequent employment with Successor shall serve as a violation of any of the terms in this Agreement.

		
	13.
	Entire Agreement.  This Agreement constitutes the entire agreement and understanding between Company and Employee concerning the subject matter addressed herein and supersedes and extinguishes any and all other or previous discussions, agreements, or understandings between the Parties regarding the subject matter herein. Without limiting the foregoing, this Agreement shall not supersede or extinguish the RSU, PSU, and stock option agreements between Actuant and the Employee, and the provision thereof that address the subject matter addressed herein. Notwithstanding this Paragraph 13, this Agreement shall not serve to supersede or extinguish other agreements between Employee and Company (and their subsidiary or affiliated companies and successors) containing similar provisions and restrictions where such agreements were entered into with Employee as a term or condition of employment. 

		
	14.
	Waiver.  The waiver by any Party of the breach of any covenant or provision in this Agreement shall not operate or be construed as a waiver of any subsequent breach by any Party.

		
	15.
	Invalidity of any Provision.  The provisions of this Agreement are severable, it being the intention of the Parties that should any provision hereof be invalid or unenforceable, such invalidity or unenforceability of 

any provision shall not affect the remaining provisions hereof, but the same shall remain in full force and effect to the fullest extent permitted by law as if such invalid or unenforceable provision were omitted. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, Company and Employee agree that such provision is to be reformed to the extent necessary for the provision to be valid and enforceable to the fullest and broadest extent permitted by applicable law, without invalidating the remainder of this Agreement.

		
	16.
	Applicable Law and Venue.  The Parties agree that this Agreement shall be governed by and construed in accordance with the internal laws of the State of Wisconsin. Any dispute between the Parties arising out of or related to the terms of this Agreement shall be heard only by the Circuit Court of Waukesha County, Wisconsin, or by the United States District Court for the Eastern District of Wisconsin; and the Parties hereby consent to these courts as the exclusive venues for resolving any such disputes.    

		
	17.
	Headings.  Headings in this Agreement are for informational purposes only and shall not be used to construe the intent of this Agreement.

		
	18.
	Counterparts.  This Agreement may be executed simultaneously in any number of counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same agreement.

		
	19.
	Reserved Rights.  Nothing in this Agreement shall  serve to limit or restrict Employee’s right to the following:

		
	(a)
	Immunity.  An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that (i) is made (a) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and (b) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.

		
	(b)
	Use Of Trade Secret Information In Anti-Retaliation Lawsuit.  An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual (i) files any document containing the trade secret under seal; and (ii) does not disclose the trade secret, except pursuant to court order.

		
	20.
	Reasonableness of Restrictions.  EMPLOYEE HAS READ THIS AGREEMENT AND AGREES THAT THE RESTRICTIONS ON EMPLOYEE’S ACTIVITIES OUTLINED IN THIS AGREEMENT ARE REASONABLE AND NECESSARY TO PROTECT COMPANY’S LEGITIMATE BUSINESS INTERESTS, THAT THE CONSIDERATION PROVIDED BY COMPANY IS FAIR AND REASONABLE, AND FURTHER AGREES THAT GIVEN THE IMPORTANCE TO COMPANY OF ITS CONFIDENTIAL INFORMATION, TRADE SECRETS, AND CUSTOMER RELATIONSHIPS, THE POST-EMPLOYMENT RESTRICTIONS ON EMPLOYEE’S ACTIVITIES ARE LIKEWISE FAIR AND REASONABLE.  EMPLOYEE AGREES THAT THE GEOGRAPHIC RESTRICTIONS ON EMPLOYEE’S ACTIVITIES ARE REASONABLE.  

I agree to the above terms.

Signature: /s/ Roger Roundhouse                        Dated: April 12, 2019    
                      Roger Roundhouse

ATTACHMENT A

Definitions.  When used in this Agreement, the following terms have the definition set forth below:
		
	(a)
	“Competing Product” means any product or service which is sold or provided in competition with a product or service produced, designed, sold or provided by Employee, either individually or as part of a team, or by one or more employees or Company business units managed, supervised or directed by Employee or receiving executive or management support from Employee during the twelve (12) months immediately preceding the Termination Date.

		
	(b)
	“Confidential Information” means information (to the extent it is not a Trade Secret), whether oral, written, recorded magnetically or electronically, or otherwise stored, and whether originated by the Employee or otherwise coming into the possession or knowledge of the Employee, which is possessed by or developed for Company, and which relates to Company’s existing or potential business, which information is not reasonably ascertainable by Company’s competitors or by the general public through lawful means, and which information Company treats as confidential, including but not limited to information regarding Company’s business affairs, agreements, strategies, products, finances, costs, margins, computer programs, research, customers, purchasing, marketing, and other information.

		
	(c)
	“Current Pending Customer” means a person or entity concerning which Company is actively preparing a business proposal to a prospective customer of the Company as of the Termination Date, or for which Company has a pending proposal to provide goods or services as a Company to a prospect customer as of the Termination Date.  However, the term “Current Pending Customer” is limited to persons or entities that Employee interacts with on behalf of the Company or concerning which Employee learns, creates or reviews Confidential Information or Trade Secrets on behalf of the Company in the three (3) month period immediately preceding the Employee’s end of employment with the Company.

		
	(d)
	 “Key Employee” means any person who at the Termination Date is employed or engaged by Company, and with whom Employee has had material contact in the course of employment during the twelve (12) months immediately preceding the Termination Date, and such person is in possession of Confidential Information and/or Trade Secrets.

		
	(e)
	“Key Services” means services of the type performed by a Management Employee, Key Employee or Supervised Employee for the Company during the final twelve (12) months preceding the Termination Date, but shall not include clerical, menial, or manual labor.

		
	(f)
	“Management Employee” means any person who at the Termination Date is employed or engaged by Company, and with whom Employee has had material contact in the course of employment during the twelve (12) months immediately preceding the Termination Date and such person is a manager, officer, director, or executive of Company.

		
	(g)
	“Proprietary Creations” means all inventions, discoveries, designs, improvements, creations, and works conceived, authored, or developed by Employee, either individually or with others, any time during Employee’s employment with the Company that:  (1) relate to the Company’s current or contemplated business or activities; (2) relate to the Company’s actual or demonstrably anticipated research or development; (3) result from any work performed by Employee for the Company; (4) involve the use of Company equipment, supplies, facilities, Confidential Information or Trade Secrets; (5) result from or are suggested by any work done by the Company or at the Company’s request, or any projects specifically assigned to Employee; or (6) result from Employee’s access to any Company memoranda, notes, records, drawings, sketches, models, maps, customer lists, research results, data, formulae, specifications, inventions, processes, equipment Confidential Information, Trade Secrets or other materials.  

		
	(h)
	“Referral Client” means a person or entity that does not directly purchase products or services from Company, but which has the ability to effectively specify or recommend the purchase of products or services from Company or its competitors to end customers.  The term Referral Client is limited to persons or entities to or through which Employee, one or more individuals or Company business units supervised, managed or directed by Employee, markets or sells Company products or services during the twelve (12) month period immediately preceding the Termination Date.  The term Referral Client is further restricted to persons or entities which have specified or recommended the purchase of in excess of fifty thousand dollars (US $50,000) worth of products or services from Company which are actually purchased during the twelve (12) month period immediately preceding the Termination Date.

		
	(i)
	“Restricted Customer” means a customer of Company to which Employee, or one or more 

individuals or Company business units supervised, managed, or directed by Employee, sells or provides products or services on behalf of Company during the twelve (12) month period immediately preceding the Termination Date.  The term Restricted Customer is limited to Company customers that purchase or receive in excess of fifty thousand dollars (US $50,000) worth of products or services from Company during the twelve (12) month period immediately preceding the Termination Date.
		
	(j)
	“Restricted Territory” means Territories in which, during the twelve (12) month period immediately preceding the Termination Date, Employee, or one or more other Company employees or Company business units supervised, managed or directed by or receiving management or executive support from Employee: (i) provides products or services on behalf of the Company; or (ii) sells or solicits the sale of products or services on behalf of the Company.  Notwithstanding the foregoing, the term Restricted Territory is limited to Territories in which Company sells or provides in excess of one hundred thousand dollars (US $100,000) in the aggregate worth of products or services in the twelve (12) month period immediately preceding the Termination Date.   

		
	(k)
	“Sales Territory” means Territories in which, during the twelve (12) month period immediately preceding the Termination Date, the Company: (i) sells products or services designed, developed, tested, or produced by Employee (either individually or in collaboration with other Company employees) or by one or more other Company employees or business units managed or directed by or receiving executive or management support from Employee; or (ii) provides products or services designed, developed, tested or produced by Employee (either individually or in collaboration with other Company employees) or by one or more other Company employees or business units managed or directed by or receiving executive or management support from Employee.  Notwithstanding the foregoing, the term Sales Territory is limited to Territories in which Company sells or provides in excess of one hundred thousand dollars (US $100,000) in the aggregate worth of products or services in the twelve (12) month period immediately preceding the Termination Date. 

		
	(l)
	“Services” means services of the type performed for Company by Employee or one or more Company employees managed, supervised, or directed by Employee during the final twelve (12) months preceding the Termination Date, but shall not include clerical, menial, or manual labor.

		
	(m)
	“Strategic Customer” means a customer of Company that purchases or receives a product or service from Company during the twelve (12) month period immediately preceding the Termination Date, but is limited to customers concerning which Employee learns, creates, or reviews Confidential Information or Trade Secrets on behalf of Company during the twelve (12) month period immediately preceding the Termination Date.  The term Strategic Customer is limited to Company customers that purchase or receive in excess of fifty thousand dollars (US $50,000) worth of products or services from Company during the twelve (12) month period immediately preceding the Termination Date.

		
	(n)
	“Supervised Employee” means any person who at the Termination Date is employed or engaged by Company, and with whom Employee has had material contact in the course of employment during the twelve (12) months immediately preceding the Termination Date, and such person was directly managed by or reported to Employee during the last 12 months prior to the Termination Date.

		
	(o)
	“Termination Date” means the last date that Employee serves as an employee of the Company.

		
	(p)
	“Third Party Confidential Information” means information received by Company from others that Company has an obligation to treat as confidential.

		
	(q)
	“Trade Secret” means a Trade Secret as that term is defined under applicable state or federal law.

		
	(r)
	“Territory” means a municipality within the United States of America, or within a foreign nation.

ATTACHMENT B

		
	1.
	For twenty-four (24) months following the Termination Date, Employee shall not sell or solicit the sale of a Competing Product to a Restricted Customer or assist others in doing so.

		
	2.
	For twenty-four (24) months following the Termination Date, Employee shall not perform Services as part of or in support of providing, selling, or soliciting the sale of a Competing Product to a Restricted Customer or assist others in doing so.

		
	3.
	For twenty-four (24) months following Termination Date, Employee shall not encourage or cause a Restricted Customer to curtail, withdraw or cancel any business with Company or assist others in doing so.

		
	4.
	For twenty-four (24) months following Termination Date, Employee shall not sell or solicit the sale of a Competing Product to a Strategic Customer or assist others in doing so.

		
	5.
	For twenty-four (24) months following Termination Date, Employee shall not perform Services as part of or in support of providing, selling or soliciting the sale of a Competing Product to a Strategic Customer or assist others in doing so.

		
	6.
	For twenty-four (24) months following Termination Date, Employee shall not encourage or cause a Strategic Customer to curtail, withdraw or cancel any business with Company or assist others in doing so.

		
	7.
	For twenty-four (24) months following the Termination Date, Employee shall not sell or solicit the sale of a Competing Product to or through a Referral Client or assist others in doing so.

		
	8.
	For twenty-four (24) months following the Termination Date, Employee shall not perform Services as part of or in support of providing, selling or soliciting the sale of a Competing Product to or through a Referral Client or assist others in doing so.

		
	9.
	For twenty-four (24) months following Termination Date, Employee shall not encourage or cause a Referral Client to curtail, withdraw or cancel any business with Company or assist others in doing so.

		
	10.
	For twenty-four (24) following the Termination Date, Employee shall not sell or solicit the sale of a Competing Product to a Current Pending Customer or assist others in doing so.

		
	11.
	For twenty-four (24) months following Termination Date, Employee shall not perform Services as part of or in support of the business of selling, providing or soliciting the sale of Competing Products in the Restricted Territory. This Paragraph shall not bar Employee from performing clerical, menial or manual labor.  This Paragraph shall apply to Employee only if during the one (1) year period immediately preceding the Termination Date Employee is involved in sales, sales management, or served as an executive or officer of the Company. 

		
	12.
	For twenty-four (24) months following the Termination Date, Employee shall not perform Services as part of or in support of developing, designing, testing, or producing Competing Products for sale in the Restricted Territory.  This Paragraph shall apply to Employee only if during the one (1) year period immediately preceding the Termination Date Employee is involved in product development design, testing, production, or served as an executive or officer of the Company. 

		
	13.
	For twenty-four (24) months following the Termination Date, Employee shall not perform Services as part of or in support of the business of selling, providing or soliciting the sale of Competing Products in the Sales Territory.  This Paragraph shall not bar Employee from performing clerical, menial or manual labor.  This Paragraph shall apply to Employee only if during the one (1) year period immediately preceding the Termination Date Employee is involved in product development design, testing, production, or served as an executive or officer of the Company.

		
	14.
	For twenty-four (24) months following the Termination Date, Employee shall not perform Services as part of or in support of developing, designing, testing or producing Competing Products for sale in the Sales Territory. This Paragraph shall apply to Employee only if during the one (1) year period immediately preceding the Termination Date Employee is involved in product development design, testing, production, or served as an executive or officer of the Company.

206214-0033\24883512.v38

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