Document:

Exhibit 4.3

 

  

OMEGA HEALTHCARE INVESTORS, INC.,

as Issuer,

 

the SUBSIDIARY GUARANTORS named herein,

as Subsidiary Guarantors,

 

and

 

U.S. BANK NATIONAL ASSOCIATION,

as Trustee

 

 

 

INDENTURE

 

 

 

Dated as of [ • ]

 

 

 

[ • ]% Senior Notes due [
• ]

 

 

     

     

    

 

CROSS-REFERENCE TABLE

 

	Trust Indenture
    Act Section	 	Indenture Section
	310	(a)(1)	 	7.10
	 	(a)(2)	 	7.10
	 	(a)(3)	 	N.A.
	 	(a)(4)	 	N.A.
	 	(a)(5)	 	7.08; 7.10
	 	(b)	 	7.08; 7.10; 12.02
	 	(c)	 	N.A.
	311	(a)	 	7.11
	 	(b)	 	7.11
	 	(c)	 	N.A.
	312	(a)	 	2.05
	 	(b)	 	11.03
	 	(c)	 	11.03
	313	(a)	 	7.06
	 	(b)(1)	 	7.06
	 	(b)(2)	 	7.06
	 	(c)	 	7.06; 11.02
	 	(d)	 	7.06
	314	(a)	 	4.05; 4.10; 11.02
	 	(b)	 	N.A.
	 	(c)(1)	 	7.02; 11.04; 11.05
	 	(c)(2)	 	7.02; 11.04; 11.05
	 	(c)(3)	 	N.A.
	 	(d)	 	N.A.
	 	(e)	 	11.05
	 	(f)	 	N.A.
	315	(a)	 	7.01(b); 7.02(a)
	 	(b)	 	7.05; 11.02
	 	(c)	 	7.01
	 	(d)	 	6.05; 7.01(c)
	 	(e)	 	6.11
	316	(a) (last sentence)	 	2.09
	 	(a)(1)(A)	 	6.05
	 	(a)(1)(B)	 	6.04
	 	(a)(2)	 	9.02
	 	(b)	 	6.07
	 	(c)	 	9.04
	317	(a)(1)	 	6.08
	 	(a)(2)	 	6.09
	 	(b)	 	2.04
	318	(a)	 	11.01
	 	(c)	 	11.01

 

 

N.A. means Not Applicable

 

Note: This Cross-Reference Table shall not, for any purpose,
be deemed to be a part of this Indenture.

 

     

     

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	ARTICLE One
	 
	DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	 
	SECTION 1.01.	Definitions	1
	SECTION 1.02.	Other Definitions	13
	SECTION 1.03.	Incorporation by Reference of Trust Indenture Act	13
	SECTION 1.04.	Rules of Construction	13
	 	 	 
	ARTICLE Two
	 
	THE NOTES
	 	 	 
	SECTION 2.01.	Form and Dating	14
	SECTION 2.02.	Execution, Authentication and Denomination; Additional Notes.	15
	SECTION 2.03.	Registrar and Paying Agent	16
	SECTION 2.04.	Paying Agent To Hold Assets in Trust	16
	SECTION 2.05.	Holder Lists	17
	SECTION 2.06.	Transfer and Exchange	17
	SECTION 2.07.	Replacement Notes	17
	SECTION 2.08.	Outstanding Notes	18
	SECTION 2.09.	Treasury Notes	18
	SECTION 2.10.	Temporary Notes	18
	SECTION 2.11.	Cancellation	19
	SECTION 2.12.	Defaulted Interest	19
	SECTION 2.13.	CUSIP and ISIN Numbers	19
	SECTION 2.14.	Deposit of Moneys	19
	SECTION 2.15.	Book-Entry Provisions for Global Notes	20
	 	 	 
	ARTICLE Three
	 
	REDEMPTION
	 	 	 
	SECTION 3.01.	Notices to Trustee	21
	SECTION 3.02.	Selection of Notes To Be Redeemed	22
	SECTION 3.03.	Notice of Redemption	22
	SECTION 3.04.	Effect of Notice of Redemption	23
	SECTION 3.05.	Deposit of Redemption Price	23
	SECTION 3.06.	Notes Redeemed in Part	23

 

    	 	i	 

     

    

 

	ARTICLE Four
	 
	COVENANTS
	 	 	 
	SECTION 4.01.	Payment of Notes	24
	SECTION 4.02.	Maintenance of Office or Agency	24
	SECTION 4.03.	Corporate Existence	24
	SECTION 4.04.	Payment of Taxes	25
	SECTION 4.05.	Compliance Certificate; Notice of Default	25
	SECTION 4.06.	Waiver of Stay, Extension or Usury Laws	25
	SECTION 4.07.	Limitation on Indebtedness	26
	SECTION 4.08.	Maintenance of Total Unencumbered Assets	26
	SECTION 4.09.	Limitation on Issuances of Guarantees by Subsidiaries	26
	SECTION 4.10.	Reports to Holders	27
	 	 	 
	ARTICLE Five
	 
	SUCCESSOR CORPORATION
	 	 	 
	SECTION 5.01.	Consolidation, Merger and Sale of Assets	27
	 	 	 
	ARTICLE Six
	 
	DEFAULT AND REMEDIES
	 	 	 
	SECTION 6.01.	Events of Default	29
	SECTION 6.02.	Acceleration	30
	SECTION 6.03.	Other Remedies	31
	SECTION 6.04.	Waiver of Past Defaults	31
	SECTION 6.05.	Control by Majority	31
	SECTION 6.06.	Limitation on Suits	32
	SECTION 6.07.	Rights of Holders To Receive Payment	32
	SECTION 6.08.	Collection Suit by Trustee	32
	SECTION 6.09.	Trustee May File Proofs of Claim	33
	SECTION 6.10.	Priorities	33
	SECTION 6.11.	Undertaking for Costs	34
	 	 	 
	ARTICLE Seven
	 
	TRUSTEE
	 	 	 
	SECTION 7.01.	Duties of Trustee	34
	SECTION 7.02.	Rights of Trustee	35
	SECTION 7.03.	Individual Rights of Trustee	36
	SECTION 7.04.	Trustee’s Disclaimer	36
	SECTION 7.05.	Notice of Default	37
	SECTION 7.06.	Reports by Trustee to Holders	37

 

    	 	ii	 

     

    

 

	SECTION 7.07.	Compensation and Indemnity	37
	SECTION 7.08.	Replacement of Trustee	38
	SECTION 7.09.	Successor Trustee by Merger, Etc.	39
	SECTION 7.10.	Eligibility; Disqualification	39
	SECTION 7.11.	Preferential Collection of Claims Against the Issuer	39
	 	 	 
	ARTICLE Eight
	 
	DISCHARGE OF INDENTURE; DEFEASANCE
	 	 	 
	SECTION 8.01.	Termination of the Issuer’s Obligations	40
	SECTION 8.02.	Legal Defeasance and Covenant Defeasance	41
	SECTION 8.03.	Conditions to Legal Defeasance or Covenant Defeasance	42
	SECTION 8.04.	Application of Trust Money	43
	SECTION 8.05.	Repayment to the Issuer	44
	SECTION 8.06.	Reinstatement	44
	 	 	 
	ARTICLE Nine
	 
	AMENDMENTS, SUPPLEMENTS AND WAIVERS
	 	 	 
	SECTION 9.01.	Without Consent of Holders.	44
	SECTION 9.02.	With Consent of Holders	45
	SECTION 9.03.	Compliance with the Trust Indenture Act	46
	SECTION 9.04.	Revocation and Effect of Consents	47
	SECTION 9.05.	Notation on or Exchange of Notes	47
	SECTION 9.06.	Trustee To Sign Amendments, Etc.	47
	 	 	 
	ARTICLE Ten
	 
	SUBSIDIARY GUARANTEE
	 	 	 
	SECTION 10.01.	Guarantee	48
	SECTION 10.02.	Limitation on Subsidiary Guarantor Liability	49
	SECTION 10.03.	Execution and Delivery of Subsidiary Guarantee	49
	SECTION 10.04.	Release of a Subsidiary Guarantor	50
	 	 	 
	ARTICLE Eleven
	 
	MISCELLANEOUS
	 	 	 
	SECTION 11.01.	Trust Indenture Act Controls	51
	SECTION 11.02.	Notices	51
	SECTION 11.03.	Communications by Holders with Other Holders	52
	SECTION 11.04.	Certificate and Opinion as to Conditions Precedent	52
	SECTION 11.05.	Statements Required in Certificate or Opinion	53
	SECTION 11.06.	Rules by Paying Agent or Registrar	53
	SECTION 11.07.	Legal Holidays	53

 

    	 	iii	 

     

    

 

	SECTION 11.08.	Governing Law	53
	SECTION 11.09.	No Adverse Interpretation of Other Agreements	53
	SECTION 11.10.	No Recourse Against Others	53
	SECTION 11.11.	Successors	54
	SECTION 11.12.	Duplicate Originals	54
	SECTION 11.13.	Severability	54
	 	 	 
	SIGNATURES	 	S-1

 

	Exhibit A	-	Form of Note
	Exhibit B	-	Form of Legends
	Exhibit C	-	Form of Notation of Subsidiary Guarantee

 

Note:     This Table of Contents shall not, for any purpose,
be deemed to be part of this Indenture.

 

    	 	iv	 

     

    

 

INDENTURE dated as of [•] among Omega
Healthcare Investors, Inc., a Maryland corporation (the “Issuer”), each of the Subsidiary Guarantors named herein,
as Subsidiary Guarantors, and U.S. Bank National Association , a national banking association organized and existing under the
laws of the United States of America, as Trustee (the “Trustee”).

 

The Issuer has duly authorized the creation
of an issue of [•]% Senior Notes due [•] and, to provide therefor, the Issuer and the Subsidiary Guarantors have duly
authorized the execution and delivery of this Indenture. All things necessary to make the Notes, when duly issued and executed
by the Issuer and authenticated and delivered hereunder, the valid and binding obligations of the Issuer and to make this Indenture
a valid and binding agreement of the Issuer and the Subsidiary Guarantors have been done.

 

THIS INDENTURE WITNESSETH

 

For and in consideration of the premises and
the purchase of the Notes by the Holders thereof, the parties hereto covenant and agree, for the equal and proportionate benefit
of all Holders, as follows:

 

ARTICLE
One

DEFINITIONS AND INCORPORATION BY REFERENCE

 

SECTION
1.01.         Definitions.

 

Set forth below are certain defined terms
used in this Indenture.

 

“Acquired Indebtedness”
means Indebtedness of a Person existing at the time such Person becomes a Subsidiary or that is assumed in connection with an Asset
Acquisition from such Person by a Subsidiary and not incurred by such Person in connection with, or in anticipation of, such Person
becoming a Subsidiary or such Asset Acquisition; provided, however, that Indebtedness of such Person that is redeemed, defeased,
retired or otherwise repaid at the time of or immediately upon consummation of the transactions by which such Person becomes a
Subsidiary or such Asset Acquisition shall not be Acquired Indebtedness.

 

“Adjusted Consolidated Net Income”
means, for any period, the aggregate net income (or loss) (before giving effect to cash dividends on preferred stock of the Issuer
or charges resulting from the redemption of preferred stock of the Issuer) of the Issuer and its Subsidiaries for such period determined
on a consolidated basis in conformity with GAAP; provided, however, that the following items shall be excluded in computing
Adjusted Consolidated Net Income, without duplication:

 

(1)         the
net income of any Person, other than the Issuer or a
Subsidiary, except to the extent of the amount of dividends or
other distributions actually paid to the Issuer or any of its Subsidiaries
by such Person during such period;

 

     

     

    

 

(2)         the
net income of any Subsidiary to the extent that the declaration or
payment of dividends or similar distributions by such Subsidiary
of such net income is not at the time permitted by the operation of the terms of its charter or
any agreement, instrument, judgment, decree, order, statute, rule or governmental
regulation applicable to such Subsidiary;

 

(3)         any
after-tax gains or losses attributable to asset sales; and

 

(4)         all
extraordinary gains and extraordinary losses.

 

“Adjusted
Total Assets” means, for any Person, the sum of:

 

(1)         Total
Assets for such Person as of the end of the fiscal quarter preceding the Transaction Date as set forth on the most recent quarterly
or annual consolidated balance sheet of the Issuer and its Subsidiaries, prepared in conformity with GAAP and filed with the SEC
or provided to the Trustee pursuant to Section 4.10; and

 

(2)         any
increase in Total Assets following the end of such quarter including, without limitation, any increase in Total Assets resulting
from the application of the proceeds of any additional Indebtedness.

 

“Affiliate”
means, as applied to any Person, any other Person directly or indirectly controlling, controlled by, or under direct or indirect
common control with, such Person. For purposes of this definition, “control” (including, with correlative meanings,
the terms “controlling,” “controlled by” and “under common control with”),
as applied to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management
and policies of such Person, whether through the ownership of voting securities, by contract or otherwise.

 

“Agent”
means any Registrar or Paying Agent.

 

“amend”
means to amend, supplement, restate, amend and restate or otherwise modify, including successively; and “amendment”
shall have a correlative meaning.

 

“Asset
Acquisition” means:

 

(1)         an
investment by the Issuer or any of its Subsidiaries in any other Person pursuant to which such Person shall become a Subsidiary
or shall be merged into or consolidated with the Issuer or any of its Subsidiaries; provided, however, that such Person’s
primary business is related, ancillary, incidental or complementary to the businesses of the Issuer or any of its Subsidiaries
on the date of such investment; or

 

(2)         an
acquisition by the Issuer or any of its Subsidiaries from any other Person of assets that constitute substantially all of a division
or line of business, or one or more healthcare properties, of such Person; provided, however, that the assets and properties
acquired are related, ancillary, incidental or complementary to the businesses of the Issuer or any of its Subsidiaries on the
date of such acquisition.

 

    	 	2	 

     

    

 

“Asset
Disposition” means the sale or other disposition by the Issuer or any of its Subsidiaries, other than to the Issuer
or another Subsidiary, of:

 

(1)         all
or substantially all of the Capital Stock of any Subsidiary; or

 

(2)         all
or substantially all of the assets that constitute a division or line of business, or one or more healthcare properties, of the
Issuer or any of its Subsidiaries.

 

“Bankruptcy
Law” means Title 11 of the United States Code, as amended, or any insolvency or other similar federal or state law for
the relief of debtors.

 

“Board
of Directors” means, as to any Person, the board of directors (or similar governing body) of such Person or any duly
authorized committee thereof.

 

“Board
Resolution” means, with respect to any Person, a copy of a resolution certified by the Secretary or an Assistant Secretary
of such Person to have been duly adopted by the Board of Directors of such Person and to be in full force and effect on the date
of such certification, and delivered to the Trustee.

 

“Business
Day” means a day other than a Saturday, Sunday or other day on which banking institutions in New York or Maryland are
authorized or required by law to close.

 

“Capital
Stock” means, with respect to any Person, any and all shares, interests, participations or other equivalents (however
designated, whether voting or non-voting), including partnership interests, whether general or limited, in the equity of such
Person, whether outstanding on the Closing Date or issued thereafter, including, without limitation, all Common Stock and Preferred
Stock.

 

“Capitalized
Lease” means, as applied to any Person, any lease of any property, whether real, personal or mixed, of which the discounted
present value of the rental obligations of such Person as lessee, in conformity with GAAP, is required to be capitalized on the
balance sheet of such Person.

 

“Capitalized
Lease Obligations” means the discounted present value of the rental obligations under a Capitalized Lease as reflected
on the balance sheet of such Person as determined in conformity with GAAP.

 

“Closing
Date” means [•].

 

“Common
Stock” means, with respect to any Person, any and all shares, interests, participations or other equivalents (however
designated, whether voting or non-voting) that have no preference on liquidation or with respect to distributions over any other
class of Capital Stock, including partnership interests, whether general or limited, of such Person’s equity, whether outstanding
on the Closing Date or issued thereafter, including, without limitation, all series and classes of common stock.

 

    	 	3	 

     

    

 

“Consolidated
EBITDA” means, for any period, Adjusted Consolidated Net Income for such period plus amounts which have been
deducted and minus amounts which have been added for, without duplication:

 

(1)         Consolidated
Interest Expense;

 

(2)         provision
for taxes based on income;

 

(3)         impairment
losses and gains on sales or other dispositions of properties and other Investments;

 

(4)         real
estate related depreciation and amortization expense;

 

(5)         the
effect of any non-recurring, non-cash items;

 

(6)         amortization
of deferred charges;

 

(7)         gains
or losses on early extinguishment of Indebtedness; and

 

(8)         acquisition
expenses;

 

all as determined on a consolidated
basis for the Issuer and its Subsidiaries in conformity with GAAP; provided, however, that, if any Subsidiary is not a
Wholly Owned Subsidiary, Consolidated EBITDA shall be reduced (to the extent not already reduced in Adjusted Consolidated Net
Income or otherwise reduced in accordance with GAAP) by an amount equal to:

 

(x)          the
amount of the Adjusted Consolidated Net Income attributable to such Subsidiary multiplied by

 

(y)          the
percentage ownership interest in the income of such Subsidiary not owned on the last day of such period by the Issuer or any of
its Subsidiaries.

 

“Consolidated
Interest Expense” means, for any period, the aggregate amount of interest expense in respect of Indebtedness of the
Issuer and the Subsidiaries during such period, all as determined on a consolidated basis in conformity with GAAP including, without
limitation (without duplication):

 

(1)         amortization
of debt issuance costs, debt discount or premium and other financing fees and expenses;

 

(2)         the
interest portion of any deferred payment obligations;

 

(3)         all
commissions, discounts and other fees and expenses owed with respect to letters of credit and bankers’ acceptance financing;

 

(4)         the
net costs associated with Interest Rate Agreements and Indebtedness that is Guaranteed or secured by assets of the Issuer or any
of its Subsidiaries; and

 

    	 	4	 

     

    

 

(5)         all
but the principal component of rentals in respect of Capitalized Lease Obligations paid, accrued or scheduled to be paid or to
be accrued by the Issuer and its Subsidiaries;

 

excluding, to the extent
included in interest expense above, the amount of such interest expense of any Subsidiary if the net income of such Subsidiary
is excluded in the calculation of Adjusted Consolidated Net Income pursuant to clause (2) of the definition thereof (but
only in the same proportion as the net income of such Subsidiary is excluded from the calculation of Adjusted Consolidated Net
Income pursuant to clause (2) of the definition thereof), as determined on a consolidated basis in conformity with GAAP.

 

“Corporate
Trust Office” means the corporate trust office of the Trustee located at Two Midtown Plaza, 1349 W. Peachtree Street,
NW, Suite 1050, EX-GA-ATPT, Atlanta, Georgia 30309, Attention: Corporate Trust Department, or such other office, designated by
the Trustee by written notice to the Issuer, at which at any particular time its corporate trust business shall be administered.

 

“Custodian”
means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

“Default”
means any event that is, or after notice or passage of time or both would be, an Event of Default.

 

“Depository”
means The Depository Trust Company, New York, New York, or a successor thereto registered under the Exchange Act or other applicable
statute or regulation.

 

“Disqualified
Stock” means any class or series of Capital Stock of any Person that by its terms or otherwise is:

 

(1)         required
to be redeemed prior to the Stated Maturity of the Notes,

 

(2)         redeemable
at the option of the holder of such class or series of Capital Stock, at any time prior to the Stated Maturity of the Notes, or

 

(3)         convertible
into or exchangeable for Capital Stock referred to in clause (1) or (2) above or Indebtedness having a scheduled maturity
prior to the Stated Maturity of the Notes;

 

provided, however, that any
Capital Stock that would not constitute Disqualified Stock but for customary provisions thereof giving holders thereof the right
to require such Person to repurchase or redeem such Capital Stock upon the occurrence of an “asset sale” or “change
of control” occurring prior to the Stated Maturity of the Notes shall not constitute Disqualified Stock.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, or any successor statute or statutes thereto.

 

    	 	5	 

     

    

 

“Existing
Note Indentures” means the indenture governing the Issuer’s 5.875% senior notes due 2024, the indenture governing
the Issuer’s 4.950% senior notes due 2024, the indenture governing the Issuer’s 4.50% senior notes due 2025, the indenture
governing the Issuer’s 4.500% senior notes due 2027 and the indenture governing the Issuer’s 5.250% senior notes due
2026 (each an “Existing Note Indenture”), as each such Existing Note Indenture may be supplemented from time
to time.

 

“Fair
Market Value” means the price that would be paid in an arm’s-length transaction between an informed and willing
seller under no compulsion to sell and an informed and willing buyer under no compulsion to buy, as determined in good faith by
the Board of Directors of the Issuer, whose determination shall be conclusive if evidenced by a Board Resolution.

 

“GAAP”
means generally accepted accounting principles in the United States of America as in effect as of the date of this indenture,
including, without limitation, those set forth in the opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in
such other statements by such other entity as approved by a significant segment of the accounting profession. Except as otherwise
specifically provided in this Indenture, all terms of an accounting or financial nature and all ratios and computations contained
or referred to in this Indenture shall be computed in conformity with GAAP applied on a consistent basis.

 

“Guarantee”
means any obligation, contingent or otherwise, of any Person directly or indirectly guaranteeing any Indebtedness of any other
Person and, without limiting the generality of the foregoing, any obligation, direct or indirect, contingent or otherwise, of
such Person:

 

(1)         to
purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness of such other Person (whether arising
by virtue of partnership arrangements, or by agreements to keep-well, to purchase assets, goods, securities or services (unless
such purchase arrangements are on arm’s-length terms and are entered into in the ordinary course of business), to take-or-pay,
or to maintain financial statement conditions or otherwise); or

 

(2)         entered
into for purposes of assuring in any other manner the obligee of such Indebtedness of the payment thereof or to protect such obligee
against loss in respect thereof (in whole or in part);

 

provided, however, that the
term “Guarantee” shall not include endorsements for collection or deposit in the ordinary course of business. The
term “Guarantee” used as a verb has a corresponding meaning.

 

“Holder”
means any registered holder, from time to time, of the Notes.

 

“Incur”
means, with respect to any Indebtedness, to incur, create, issue, assume, Guarantee or otherwise become liable for or with respect
to, or become responsible for, the payment of, contingently or otherwise, such Indebtedness, including an “Incurrence”
of Acquired Indebtedness; provided, however, that neither the accrual of interest nor the accretion of original issue discount
shall be considered an Incurrence of Indebtedness.

 

    	 	6	 

     

    

 

“Indebtedness”
means, with respect to any Person at any date of determination (without duplication):

 

(1)         all
indebtedness of such Person for borrowed money;

 

(2)         all
obligations of such Person evidenced by bonds, debentures, notes or other similar instruments;

 

(3)         the
face amount of letters of credit or other similar instruments, excluding obligations with respect to letters of credit (including
trade letters of credit) securing obligations (other than obligations described in (1) or (2) above or (4), (5) or
(6) below) entered into in the ordinary course of business of such Person to the extent such letters of credit are not drawn
upon or, if drawn upon, to the extent such drawing is reimbursed no later than the third Business Day following receipt by such
Person of a demand for reimbursement;

 

(4)         all
unconditional obligations of such Person to pay amounts representing the balance deferred and unpaid of the purchase price of
any property (which purchase price is due more than six months after the date of placing such property in service or taking delivery
and title thereto), except any such balance that constitutes an accrued expense or Trade Payable;

 

(5)         all
Capitalized Lease Obligations;

 

(6)         all
Indebtedness of other Persons secured by a Lien on any asset of such Person, whether or not such Indebtedness is assumed by such
Person; provided, however, that the amount of such Indebtedness shall be the lesser of (A) the Fair Market Value of
such asset at that date of determination and (B) the amount of such Indebtedness;

 

and also includes, to the extent
not otherwise included, any non-contingent obligation of such Person to be liable for, or to pay, as obligor, guarantor or otherwise
(other than for purposes of collection in the ordinary course of business), Indebtedness of the types referred to in items (1)
through (6) above of another Person (it being understood that Indebtedness shall be deemed to be Incurred by such Person whenever
such Person shall create, assume, guarantee (on a non-contingent basis) or otherwise become liable in respect thereof). In addition,

 

(1)         the
amount outstanding at any time of any Indebtedness issued with original issue discount shall be deemed to be the face amount with
respect to such Indebtedness less the remaining unamortized portion of the original issue discount of such Indebtedness at the
date of determination in conformity with GAAP, and

 

(2)         Indebtedness
shall not include any liability for federal, state, local or other taxes.

 

    	 	7	 

     

    

 

“Indenture”
means this Indenture, as amended or supplemented from time to time in accordance with the terms hereof.

 

“interest”
means, with respect to the Notes, interest on the Notes.

 

“Interest
Coverage Ratio” means, on any Transaction Date, the ratio of:

 

(x)          the
aggregate amount of Consolidated EBITDA for the then most recent four fiscal quarters prior to such Transaction Date for which
reports have been filed with the SEC or provided to the Trustee pursuant to Section 4.10 (“Four Quarter Period”)
to

 

(y)          the
aggregate Consolidated Interest Expense during such Four Quarter Period.

 

In making the
foregoing calculation,

 

(1)         pro
forma effect shall be given to any Indebtedness Incurred or repaid (other than in connection with an Asset Acquisition or
Asset Disposition) during the period (“Reference Period”) commencing on the first day of the Four Quarter Period
and ending on the Transaction Date (other than Indebtedness Incurred or repaid under a revolving credit or similar arrangement),
in each case as if such Indebtedness had been Incurred or repaid on the first day of such Reference Period;

 

(2)         Consolidated
Interest Expense attributable to interest on any Indebtedness (whether existing or being Incurred) computed on a pro forma
basis and bearing a floating interest rate shall be computed as if the rate in effect on the Transaction Date (taking into
account any Interest Rate Agreement applicable to such Indebtedness if such Interest Rate Agreement has a remaining term in excess
of 12 months or, if shorter, at least equal to the remaining term of such Indebtedness) had been the applicable rate for
the entire period;

 

(3)         pro
forma effect shall be given to Asset Dispositions and Asset Acquisitions and Investments (including giving pro forma
effect to the application of proceeds of any Asset Disposition and any Indebtedness Incurred or repaid in connection with
any such Asset Acquisitions or Asset Dispositions) that occur during such Reference Period but subsequent to the end of the related
Four Quarter Period as if they had occurred and such proceeds had been applied on the first day of such Reference Period; and

 

(4)         pro
forma effect shall be given to asset dispositions and asset acquisitions (including giving pro forma effect
to (i) the application of proceeds of any asset disposition and any Indebtedness Incurred or repaid in connection with any
such asset acquisitions or asset dispositions and (ii) expense and cost reductions calculated on a basis consistent with
Regulation S-X under the Exchange Act) that have been made by any Person that has become a Subsidiary or has been merged
with or into the Issuer or any of its Subsidiaries during such Reference Period but subsequent to the end of the related Four
Quarter Period and that would have constituted asset dispositions or asset acquisitions during such Reference Period but subsequent
to the end of the related Four Quarter Period had such transactions occurred when such Person was a Subsidiary as if such asset
dispositions or asset acquisitions were Asset Dispositions or Asset Acquisitions and had occurred on the first day of such Reference
Period;

 

    	 	8	 

     

    

 

provided, however, that to
the extent that clause (3) or (4) of this paragraph requires that pro forma effect be given to an
Asset Acquisition or Asset Disposition or asset acquisition or asset disposition, as the case may be, such pro forma
calculation shall be based upon the four full fiscal quarters immediately preceding the Transaction Date of the Person, or
division or line of business, or one or more healthcare properties, of the Person that is acquired or disposed of to the extent
that such financial information is available.

 

“Interest
Payment Date” means the Stated Maturity of an installment of interest on the Notes.

 

“Interest
Rate Agreement” means any interest rate protection agreement, interest rate future agreement, interest rate option agreement,
interest rate swap agreement, interest rate cap agreement, interest rate collar agreement, interest rate hedge agreement, option
or future contract or other similar agreement or arrangement with respect to interest rates.

 

“Investment”
in any Person means any direct or indirect advance, loan or other extension of credit (including, without limitation, by way of
Guarantee or similar arrangement, but excluding advances to customers in the ordinary course of business that are, in conformity
with GAAP, recorded as accounts receivable on the consolidated balance sheet of the Issuer and its Subsidiaries) or capital contribution
to (by means of any transfer of cash or other property (tangible or intangible) to others or any payment for property or services
solely for the account or use of others, or otherwise), or any purchase or acquisition of Capital Stock, bonds, notes, debentures
or other similar instruments issued by, such Person.

 

“Lien”
means any mortgage, pledge, security interest, encumbrance, lien or charge of any kind (including, without limitation, any conditional
sale or other title retention agreement or lease in the nature thereof or any agreement to give any security interest).

 

“Notes”
means, collectively, the Issuer’s [•]% Senior Notes due [•] issued in accordance with Section 2.02 (whether
issued on the Closing Date, issued as Additional Notes, or otherwise issued after the Closing Date) treated as a single class
of securities under this Indenture, as amended or supplemented from time to time in accordance with the terms of this Indenture.

 

“Officer”
means any of the following of the Issuer or a Subsidiary Guarantor, as applicable: the Chairman of the Board of Directors, the
Chief Executive Officer, the Chief Financial Officer, the President, any Vice President, the Treasurer or the Secretary.

 

“Officers’
Certificate” means a certificate signed by two Officers.

 

“Opinion
of Counsel” means a written opinion from legal counsel who is reasonably acceptable to the Trustee. The counsel may
be an employee of, or counsel to, the Issuer, a Subsidiary Guarantor or the Trustee.

 

    	 	9	 

     

    

 

“Person”
means any individual, corporation, partnership, limited liability company, joint venture, incorporated or unincorporated association,
joint-stock company, trust, unincorporated organization or government or other agency or political subdivision thereof or other
entity of any kind.

 

“Preferred
Stock” means, with respect to any Person, any and all shares, interests, participations or other equivalents (however
designated, whether voting or non-voting) that have a preference on liquidation or with respect to distributions over any other
class of Capital Stock, including preferred partnership interests, whether general or limited, or such Person’s preferred
or preference stock, whether outstanding on the Closing Date or issued thereafter, including, without limitation, all series and
classes of such preferred or preference stock.

 

“principal”
means, with respect to the Notes, the principal of and premium, if any, on the Notes.

 

“Record
Date” means the applicable Record Date specified in the Notes; provided, however, that if any such date
is not a Business Day, the Record Date shall be the first day immediately succeeding such specified day that is a Business Day.

 

“redeem”
means to redeem, repurchase, purchase, defease, retire, discharge or otherwise acquire or retire for value; and “redemption”
shall have a correlative meaning; provided, however, that this definition shall not apply for purposes of Section 5
of the Notes or Article Three.

 

“Redemption
Date,” when used with respect to any Note to be redeemed, means the date fixed for such redemption pursuant to this
Indenture and the Notes.

 

“Redemption
Price,” when used with respect to any Note to be redeemed, means the price fixed for such redemption, payable in immediately
available funds, pursuant to this Indenture and the Notes.

 

“Responsible
Officer” means, when used with respect to the Trustee, any officer in the Corporate Trust Office of the Trustee to whom
any corporate trust matter is referred because of such officer’s knowledge of and familiarity with the particular subject
and shall also mean any officer who shall have direct responsibility for the administration of this Indenture.

 

“SEC”
means the U.S. Securities and Exchange Commission.

 

“Secured
Indebtedness” means any Indebtedness secured by a Lien upon the property of the Issuer or any of its Subsidiaries.

 

“Securities
Act” means the U.S. Securities Act of 1933, as amended, or any successor statute or statutes thereto.

 

“Significant
Subsidiary,” with respect to any Person, means any subsidiary of such Person that satisfies the criteria for a “significant
subsidiary” set forth in Rule 1.02(w) of Regulation S-X under the Exchange Act.

 

    	 	10	 

     

    

 

“Stated
Maturity” means:

 

(1)         with
respect to any debt security, the date specified in such debt security as the fixed date on which the final installment of principal
of such debt security is due and payable; and

 

(2)         with
respect to any scheduled installment of principal of or interest on any debt security, the date specified in such debt security
as the fixed date on which such installment is due and payable.

 

“Subsidiary”
means, with respect to any Person, any corporation, association or other business entity of which more than 50% of the voting
power of the outstanding Voting Stock is owned, directly or indirectly, by such Person and one or more other Subsidiaries of such
Person and the accounts of which would be consolidated with those of such Person in its consolidated financial statements in accordance
with GAAP, if such statements were prepared as of such date.

 

“Subsidiary
Guarantee” means a Guarantee by each Subsidiary Guarantor for payment of the Notes by such Subsidiary Guarantor. The
Subsidiary Guarantee will be an unsecured senior obligation of each Subsidiary Guarantor and will be unconditional regardless
of the enforceability of the Notes and this Indenture. Notwithstanding the foregoing, each Subsidiary Guarantee by a Subsidiary
Guarantor shall provide by its terms that it shall be automatically and unconditionally released and discharged under the circumstances
described in Section 10.04 hereof.

 

“Subsidiary
Guarantors” means (i) each Subsidiary that is a guarantor of Indebtedness under the Existing Note Indentures on
the Closing Date and (ii) each other Person that is required to become a Subsidiary Guarantor by the terms of this Indenture
after the Closing Date, in each case, until such Person is released from its Subsidiary Guarantee.

 

“Total
Assets” means the sum (without duplication) of:

 

(1)         Undepreciated
Real Estate Assets; and

 

(2)         all
other assets (excluding intangibles and accounts receivable) of the Issuer and its Subsidiaries on a consolidated basis determined
in conformity with GAAP.

 

“Total
Unencumbered Assets” as of any date means the sum of:

 

(1)         those
Undepreciated Real Estate Assets not securing any portion of Secured Indebtedness; and

 

(2)         all
other assets (but excluding intangibles and accounts receivable) of the Issuer and its Subsidiaries not securing any portion of
Secured Indebtedness determined on a consolidated basis in conformity with GAAP;

 

    	 	11	 

     

    

 

provided, however,
that all investments in unconsolidated joint ventures, unconsolidated limited partnerships, unconsolidated limited liability companies
and other unconsolidated entities shall be excluded from Total Unencumbered Assets to the extent that such investments would have
otherwise been included.

 

“Trade
Payables” means, with respect to any Person, any accounts payable or any other indebtedness or monetary obligation to
trade creditors created, assumed or Guaranteed by such Person or any of its Subsidiaries arising in the ordinary course of business
in connection with the acquisition of goods or services.

 

“Transaction
Date” means, with respect to the Incurrence of any Indebtedness by the Issuer or any of its Subsidiaries, the date such
Indebtedness is to be Incurred.

 

“Trust
Indenture Act” means the Trust Indenture Act of 1939, as amended.

 

“Trustee”
means the party named as such in this Indenture until a successor replaces it in accordance with the provisions of this Indenture
and thereafter means such successor.

 

“Undepreciated
Real Estate Assets” means, as of any date, the cost (being the original cost to the Issuer or any of its Subsidiaries
plus capital improvements) of real estate assets of the Issuer and its Subsidiaries on such date, before depreciation and amortization
of such real estate assets, determined on a consolidated basis in conformity with GAAP.

 

“Unsecured
Indebtedness” means any Indebtedness of the Issuer or any of its Subsidiaries that is not Secured Indebtedness.

 

“U.S.
Government Obligations” means direct obligations of, obligations guaranteed by, or participations in pools consisting
solely of obligations of or obligations guaranteed by, the United States of America for the payment of which obligations or guarantee
the full faith and credit of the United States of America is pledged and that are not callable or redeemable at the option of
the issuer thereof.

 

“U.S.
Legal Tender” means such coin or currency of the United States of America that at the time of payment shall be legal
tender for the payment of public and private debts.

 

“Voting
Stock” means with respect to any Person, Capital Stock of any class or kind ordinarily having the power to vote for
the election of directors, managers or other voting members of the governing body of such Person.

 

“Wholly
Owned” means, with respect to any Subsidiary of any Person, the ownership of all of the outstanding Capital Stock of
such Subsidiary (other than any director’s qualifying shares or Investments by individuals mandated by applicable law) by
such Person or one or more Wholly Owned Subsidiaries of such Person.

 

    	 	12	 

     

    

 

SECTION
1.02.         Other Definitions.

 

	Term	 	Defined
    in Section
	“Additional Notes”	 	2.02
	“Authentication Order”	 	2.02
	“Covenant Defeasance”	 	8.02
	“Event of Default”	 	6.01
	“Four Quarter Period”	 	1.01
	“Global Note”	 	2.01
	“Initial Global Notes”	 	2.01
	“Initial Notes”	 	2.02
	“Issuer”	 	Preamble
	“Legal Defeasance”	 	8.02
	“Participants”	 	2.15
	“Paying Agent”	 	2.03
	“Payment Date”	 	1.01
	“Physical Notes”	 	2.01
	“Primary Treasury Dealer”	 	1.01
	“Reference Period”	 	1.01
	“Registrar”	 	2.03

 

SECTION
1.03.         Incorporation by Reference of Trust Indenture Act.

 

Whenever this
Indenture refers to a provision of the Trust Indenture Act, such provision is incorporated by reference in, and made a part of,
this Indenture. The following Trust Indenture Act terms used in this Indenture have the following meanings:

 

“indenture
securities” means the Notes.

 

“indenture
security holder” means a Holder.

 

“indenture
to be qualified” means this Indenture.

 

“indenture
trustee” or “institutional trustee” means the Trustee.

 

“obligor”
on the indenture securities means the Issuer, any Subsidiary Guarantor or any other obligor on the Notes.

 

All other Trust
Indenture Act terms used in this Indenture that are defined by the Trust Indenture Act, defined by Trust Indenture Act reference
to another statute or defined by SEC rule and not otherwise defined herein have the meanings assigned to them therein.

 

SECTION
1.04.         Rules of Construction.

 

Unless the context
otherwise requires:

 

(1)         a
term has the meaning assigned to it;

 

(2)         an
accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP;

 

(3)         “or”
is not exclusive;

 

    	 	13	 

     

    

 

(4)         words
in the singular include the plural, and words in the plural include the singular;

 

(5)         provisions
apply to successive events and transactions;

 

(6)         “herein,”
“hereof” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or
other subdivision; and

 

(7)         the
words “including,” “includes” and similar words shall be deemed to be followed by “without limitation.”

 

ARTICLE
Two

THE NOTES

 

SECTION
2.01.         Form and Dating.

 

The Notes and
the Trustee’s certificate of authentication shall be substantially in the form of Exhibit A hereto. The Notes
may have notations, legends or endorsements required by law, stock exchange rule or usage. The Issuer shall approve the form
of the Notes and any notation, legend or endorsement on them. Each Note shall be dated the date of its issuance and show the date
of its authentication. Each Note shall have an executed Subsidiary Guarantee from each of the Subsidiary Guarantors existing on
the Closing Date endorsed thereon substantially in the form of Exhibit C.

 

The terms and
provisions contained in the Notes and the Subsidiary Guarantees shall constitute, and are hereby expressly made, a part of this
Indenture and, to the extent applicable, the Issuer, the Subsidiary Guarantors and the Trustee, by their execution and delivery
of this Indenture, expressly agree to such terms and provisions and to be bound thereby.

 

Notes issued as
of the Closing Date shall be issued in the form of one or more global Notes, each in registered form, substantially in the form
set forth in Exhibit A, deposited with the Trustee, as custodian for the Depository, duly executed by the Issuer (and having
an executed Subsidiary Guarantee from each of the Subsidiary Guarantors endorsed thereon) and authenticated by the Trustee as
hereinafter provided and shall bear any legends required by applicable law (the “Initial Global Note(s)”).

 

Notes issued after
the Closing Date shall be issued initially in the form of one or more global Notes in registered form, substantially in the form
set forth in Exhibit A, deposited with the Trustee, as custodian for the Depository, duly executed by the Issuer (and
having an executed Subsidiary Guarantee from each of the Subsidiary Guarantors endorsed thereon) and authenticated by the Trustee
as hereinafter provided and shall bear any legends required by applicable law (together with the Initial Global Notes, the “Global
Notes”).

 

The aggregate
principal amount of the Global Notes may from time to time be increased or decreased by adjustments made on the records of the
Trustee, as custodian for the Depository, as hereinafter provided. Notes issued in exchange for interests in a Global Note may
be issued in the form of definitive Notes registered in the name or names of Persons other than a Depository for Global Notes
or a nominee or nominees thereof (the “Physical Notes”).

 

    	 	14	 

     

    

 

SECTION
2.02.         Execution, Authentication and Denomination; Additional Notes.

 

One Officer of
the Issuer (who shall have been duly authorized by all requisite corporate actions) shall sign the Notes for such Issuer by manual
or facsimile signature. One Officer of a Subsidiary Guarantor (who shall have been duly authorized by all requisite corporate
or other applicable entity actions) shall sign the Subsidiary Guarantee for such Subsidiary Guarantor by manual or facsimile signature.

 

If an Officer
whose signature is on a Note or Subsidiary Guarantee, as the case may be, was an Officer at the time of such execution but no
longer holds that office at the time the Trustee authenticates the Note, the Note shall nevertheless be valid.

 

A Note (and the
Subsidiary Guarantees in respect thereof) shall not be valid until an authorized signatory of the Trustee manually signs the certificate
of authentication on the Note. The signature shall be conclusive evidence that the Note has been authenticated under this Indenture.

 

The Trustee shall
authenticate (i) on the Closing Date, Notes for original issue in the aggregate principal amount not to exceed $[ •
] (the “Initial Notes”) and (ii) Additional Notes (as defined below) in an unlimited amount (so long
as not otherwise prohibited by the terms of this Indenture, including Section 4.07) in each case upon a written order of
the Issuer in the form of a certificate of an Officer of the Issuer (an “Authentication Order”). Each such
Authentication Order shall specify the amount of Notes to be authenticated and the date on which the Notes are to be authenticated,
whether the Notes are to be Initial Notes or Additional Notes and whether the Notes are to be issued as certificated Notes or
Global Notes or such other information as the Trustee may reasonably request. In addition, with respect to authentication pursuant
to clause (ii) of the first sentence of this paragraph, the first such Authentication Order from the Issuer shall be accompanied
by an Opinion of Counsel of the Issuer in a form reasonably satisfactory to the Trustee.

 

The Issuer may,
from time to time, without the consent of the Holders of the Notes, issue additional Notes (the “Additional Notes”)
having the same ranking and the same interest rate, maturity and other terms as the outstanding Notes, except for the public offering
price, the issue date and, if applicable, the initial interest payment date and initial interest accrual date.

 

All Notes issued
under this Indenture, including Additional Notes, shall be treated as a single class for all purposes under this Indenture; provided
that if the Additional Notes are not fungible for U.S. federal income tax with the Initial Notes, the Additional Notes shall be
issued under a separate CUSIP or ISIN number. The Additional Notes shall bear any legend required by applicable law.

 

    	 	15	 

     

    

 

The Trustee may
appoint an authenticating agent reasonably acceptable to the Issuer to authenticate Notes. Unless otherwise provided in the appointment,
an authenticating agent may authenticate Notes whenever the Trustee may do so. Each reference in this Indenture to authentication
by the Trustee includes authentication by such agent. An authenticating agent has the same rights as an Agent to deal with the
Issuer and Affiliates of the Issuer. The Trustee shall have the right to decline to authenticate and deliver any Notes under this
Indenture if the Trustee, being advised by counsel, determines that such action may not lawfully be taken or if the Trustee in
good faith shall determine that such action would expose the Trustee to personal liability.

 

The Notes shall
be issuable only in registered form without coupons in denominations of $2,000 and integral multiples of $1,000 in excess thereof.

 

SECTION
2.03.         Registrar and Paying Agent.

 

The Issuer shall
maintain or cause to be maintained an office or agency in the Borough of Manhattan, The City of New York, where (a) Notes
may be presented or surrendered for registration of transfer or for exchange (“Registrar”), (b) Notes
may, subject to Section 2 of the Notes, be presented or surrendered for payment (“Paying Agent”) and (c) notices
and demands to or upon the Issuer in respect of the Notes and this Indenture may be served. The Issuer may also from time to time
designate one or more other offices or agencies where the Notes may be presented or surrendered for any or all such purposes and
may from time to time rescind such designations; provided, however, that no such designation or rescission shall in any
manner relieve the Issuer of its obligation to maintain or cause to be maintained an office or agency in the Borough of Manhattan,
The City of New York, for such purposes. The Issuer may act as Registrar or Paying Agent, except that for the purposes of Articles
Three and Eight, neither the Issuer nor any Affiliate of the Issuer shall act as Paying Agent. The Registrar shall keep a register
of the Notes and of their transfer and exchange. The Issuer, upon notice to the Trustee, may have one or more co-registrars and
one or more additional paying agents reasonably acceptable to the Trustee. The term “Registrar” includes any co-registrar
and the term “Paying Agent” includes any additional paying agent. The Issuer initially appoints the Trustee as Registrar
and Paying Agent until such time as the Trustee has resigned or a successor has been appointed.

 

The Issuer shall
enter into an appropriate agency agreement with any Agent not a party to this Indenture, which agreement shall implement the provisions
of this Indenture that relate to such Agent. The Issuer shall notify the Trustee, in advance, of the name and address of any such
Agent. If the Issuer fails to maintain a Registrar or Paying Agent, the Trustee shall act as such.

 

SECTION
2.04.         Paying Agent To Hold Assets in Trust.

 

The Issuer shall
require each Paying Agent other than the Trustee or the Issuer or any Subsidiary to agree in writing that each Paying Agent shall
hold in trust for the benefit of Holders or the Trustee all assets held by the Paying Agent for the payment of principal of, or
interest on, the Notes (whether such assets have been distributed to it by the Issuer or any other obligor on the Notes), and
shall notify the Trustee of any Default by the Issuer (or any other obligor on the Notes) in making any such payment. The Issuer
at any time may require a Paying Agent to distribute all assets held by it to the Trustee and account for any assets disbursed
and the Trustee may at any time during the continuance of any payment Default, upon written request to a Paying Agent, require
such Paying Agent to distribute all assets held by it to the Trustee and to account for any assets distributed. Upon distribution
to the Trustee of all assets that shall have been delivered by the Issuer to the Paying Agent, the Paying Agent shall have no
further liability for such assets.

 

    	 	16	 

     

    

 

SECTION
2.05.         Holder Lists.

 

The Trustee shall
preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of
Holders. If the Trustee is not the Registrar, the Issuer shall furnish to the Trustee at least two (2) Business Days prior to
each Interest Payment Date and at such other times as the Trustee may request in writing a list, in such form and as of such date
as the Trustee may reasonably require, of the names and addresses of Holders, which list may be conclusively relied upon by the
Trustee.

 

SECTION
2.06.         Transfer and Exchange.

 

Subject to Section 2.15,
when Notes are presented to the Registrar with a request to register the transfer of such Notes or to exchange such Notes for
an equal principal amount of Notes of other authorized denominations, the Registrar shall register the transfer or make the exchange
as requested if its requirements for such transaction are met; provided, however, that the Notes surrendered for transfer
or exchange shall be duly endorsed or accompanied by a written instrument of transfer in form satisfactory to the Issuer and the
Registrar, duly executed by the Holder thereof or his or her attorney duly authorized in writing. To permit registrations of transfers
and exchanges, the Issuer shall execute and the Trustee shall authenticate Notes at the Registrar’s request. No service
charge shall be made for any registration of transfer or exchange, but the Issuer may require payment of a sum sufficient to cover
any transfer tax or similar governmental charge payable in connection therewith.

 

Without the prior
written consent of the Issuer, the Registrar shall not be required to register the transfer of or exchange of any Note (i) during
a period beginning at the opening of business 15 days before the mailing of a notice of redemption of Notes and ending at the
close of business on the day of such mailing, (ii) selected for redemption in whole or in part pursuant to Article Three,
except the unredeemed portion of any Note being redeemed in part, and (iii) beginning at the opening of business on any Record
Date and ending on the close of business on the related Interest Payment Date.

 

Any Holder of
a beneficial interest in a Global Note shall, by acceptance of such beneficial interest, agree that transfers of beneficial interests
in such Global Notes may be effected only through a book-entry system maintained by the Holder of such Global Note (or its agent)
in accordance with the applicable legends thereon, and that ownership of a beneficial interest in the Note shall be required to
be reflected in a book-entry system.

 

SECTION
2.07.         Replacement Notes.

 

If a mutilated
Note is surrendered to the Trustee or if the Holder of a Note claims that the Note has been lost, destroyed or wrongfully taken,
the Issuer shall issue and the Trustee shall authenticate a replacement Note if the Trustee’s requirements are met. Such
Holder must provide an indemnity bond or other indemnity, sufficient in the judgment of both the Issuer and the Trustee, to protect
the Issuer, the Trustee or any Agent from any loss which any of them may suffer if a Note is replaced. The Issuer may charge such
Holder for its reasonable out-of-pocket expenses in replacing a Note pursuant to this Section 2.07, including reasonable
fees and expenses of counsel and of the Trustee.

 

    	 	17	 

     

    

 

Every replacement
Note is an additional obligation of the Issuer and every replacement Subsidiary Guarantee shall constitute an additional obligation
of the Subsidiary Guarantor thereof.

 

The provisions
of this Section 2.07 are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to
the replacement or payment of lost, destroyed or wrongfully taken Notes.

 

SECTION
2.08.         Outstanding Notes.

 

Notes outstanding
at any time are all the Notes that have been authenticated by the Trustee except those cancelled by it, those delivered to it
for cancellation and those described in this Section 2.08 as not outstanding. A Note does not cease to be outstanding because
the Issuer, the Subsidiary Guarantors or any of their respective Affiliates hold the Note (subject to the provisions of Section 2.09).

 

If a Note is replaced
pursuant to Section 2.07 (other than a mutilated Note surrendered for replacement), it ceases to be outstanding unless a
Responsible Officer of the Trustee receives proof satisfactory to it that the replaced Note is held by a bona fide purchaser.
A mutilated Note ceases to be outstanding upon surrender of such Note and replacement thereof pursuant to Section 2.07.

 

If the principal
amount of any Note is considered paid under Section 4.01, it ceases to be outstanding and interest ceases to accrue. If on
a Redemption Date or the Stated Maturity the Trustee or Paying Agent (other than the Issuer or an Affiliate thereof) holds U.S.
Legal Tender or U.S. Government Obligations sufficient to pay all of the principal and interest due on the Notes payable on that
date, then on and after that date such Notes cease to be outstanding and interest on them ceases to accrue.

 

SECTION
2.09.         Treasury Notes.

 

In determining
whether the Holders of the required principal amount of Notes have concurred in any direction, waiver or consent, Notes owned
by the Issuer or any of its Affiliates shall be disregarded, except that, for the purposes of determining whether the Trustee
shall be protected in relying on any such direction, waiver or consent, only Notes that the Trustee has been informed in writing
are so owned shall be disregarded.

 

SECTION
2.10.         Temporary Notes.

 

Until definitive
Notes are ready for delivery, the Issuer may prepare and the Trustee shall authenticate temporary Notes. Temporary Notes shall
be substantially in the form of definitive Notes but may have variations that the Issuer considers appropriate for temporary Notes.
Without unreasonable delay, the Issuer shall prepare and the Trustee shall authenticate definitive Notes in exchange for temporary
Notes. Until such exchange, temporary Notes shall be entitled to the same rights, benefits and privileges as definitive Notes.
Notwithstanding the foregoing, so long as the Notes are represented by a Global Note, such Global Note may be in typewritten form.

 

    	 	18	 

     

    

 

 

SECTION 2.11.                 Cancellation.

 

The Issuer at
any time may deliver Notes to the Trustee for cancellation.  The Registrar and the Paying Agent shall forward to the
Trustee any Notes surrendered to them for transfer, exchange or payment.  The Trustee, or at the direction of the Trustee,
the Registrar or the Paying Agent (other than the Issuer or a Subsidiary), and no one else, shall cancel and, at the written direction
of the Issuer, shall dispose of all Notes surrendered for transfer, exchange, payment or cancellation in accordance with its customary
procedures.  Subject to Section 2.07, the Issuer may not issue new Notes to replace Notes that it has paid or delivered
to the Trustee for cancellation.  If the Issuer or any Subsidiary Guarantor shall acquire any of the Notes, such acquisition
shall not operate as a redemption or satisfaction of the Indebtedness represented by such Notes unless and until the same are
surrendered to the Trustee for cancellation pursuant to this Section 2.11.

 

SECTION 2.12.                 Defaulted
Interest.

 

If the Issuer
defaults in a payment of interest on the Notes, it shall pay the defaulted interest, plus (to the extent lawful) any interest
payable on the defaulted interest, in any lawful manner.  The Issuer may pay the defaulted interest to the persons who
are Holders on a subsequent special record date, which date shall be the fifteenth day next preceding the date fixed by the Issuer
for the payment of defaulted interest or the next succeeding Business Day if such date is not a Business Day.  At least
15 days before any such subsequent special record date, the Issuer shall mail to each Holder, with a copy to the Trustee, a notice
that states the subsequent special record date, the payment date and the amount of defaulted interest, and interest payable on
such defaulted interest, if any, to be paid.

 

SECTION 2.13.                 CUSIP
and ISIN Numbers.

 

The Issuer in
issuing the Notes may use “CUSIP” or “ISIN” numbers, and if so, the Trustee shall use the “CUSIP”
or “ISIN” numbers in notices of redemption or exchange as a convenience to Holders; provided, however, that
any such notice may state that no representation is made as to the correctness or accuracy of the “CUSIP” or “ISIN”
numbers printed in the notice or on the Notes, and that reliance may be placed only on the other identification numbers printed
on the Notes.  The Issuer will promptly notify the Trustee of any change in the “CUSIP” or “ISIN”
numbers.

 

SECTION 2.14.                 Deposit
of Moneys.

 

Subject to Section 2
of the Notes, prior to 10:00 a.m. New York City time on each Interest Payment Date, Stated Maturity, Redemption Date and Payment
Date, the Issuer shall have deposited with the Paying Agent in immediately available funds money sufficient to make cash payments,
if any, due on such Interest Payment Date, Stated Maturity, Redemption Date and Payment Date, as the case may be, in a timely
manner which permits the Paying Agent to remit payment to the Holders on such Interest Payment Date, Stated Maturity, Redemption
Date and Payment Date, as the case may be.

 

    	 	19	 

     

    

 

SECTION 2.15.                 Book-Entry
Provisions for Global Notes.

 

(a)          The
Global Notes initially shall (i) be registered in the name of the Depository or the nominee of such Depository, (ii) be delivered
to the Trustee as custodian for such Depository and (iii) bear legends as set forth in Exhibit B, as applicable.

 

Members of, or
participants in, the Depository (“Participants”) shall have no rights under this Indenture with respect to
any Global Note held on their behalf by the Depository, or the Trustee as its custodian, or under the Global Note, and the Depository
may be treated by the Issuer, the Trustee and any agent of the Issuer or the Trustee as the absolute owner of the Global Note
for all purposes whatsoever.  Notwithstanding the foregoing, nothing herein shall prevent the Issuer, the Trustee or
any agent of the Issuer or the Trustee from giving effect to any written certification, proxy or other authorization furnished
by the Depository or impair, as between the Depository and Participants, the operation of customary practices governing the exercise
of the rights of a Holder of any Note.

 

(b)          Except
as provided in this Section 2.15(b), transfers of Global Notes shall be limited to transfers in whole, but not in part, (i) by
the Depository to a nominee of the Depository, (ii) by a nominee of the Depository to the Depository or another nominee of the
Depository or (iii) by the Depository or any such nominee to a successor Depository or a nominee of such successor Depository.

 

Notwithstanding
any provisions to the contrary contained in Section 2.06 of this Indenture and in addition thereto, any Global Note shall be exchangeable
pursuant to Section 2.06 of this Indenture for Physical Notes only if (i) such Depository notifies the Issuer that it is
unwilling or unable to continue as Depository for such Global Note or if at any time such Depository ceases to be a clearing agency
registered under the Exchange Act, and, in either case, the Issuer fails to appoint a successor Depository within 90 days of such
event, and (ii) the Issuer executes and delivers to the Trustee an Officers’ Certificate (and any other deliverables required
hereunder) stating that such Global Note shall be so exchangeable.  Any Global Note that is exchangeable pursuant to
the preceding sentence shall be exchangeable for Physical Notes registered in such names as the Depository shall direct in writing
in an aggregate principal amount equal to the then outstanding principal amount of the Global Note with like tenor and terms.

 

(c)          In
connection with the transfer of a Global Note as an entirety to beneficial owners pursuant to paragraph (b) of this Section 2.15,
such Global Note shall be deemed to be surrendered to the Trustee for cancellation, and (i) the Issuer shall execute, (ii) the
Subsidiary Guarantors shall execute notations of Subsidiary Guarantees on and (iii) the Trustee shall upon written instructions
from the Issuer authenticate and deliver, to each beneficial owner identified by the Depository in exchange for its beneficial
interest in such Global Note, an equal aggregate principal amount of Physical Notes of authorized denominations.  

 

    	 	20	 

     

    

 

(d)          The
Holder of any Global Note may grant proxies and otherwise authorize any Person, including Participants and Persons that may hold
interests through Participants, to take any action which a Holder is entitled to take under this Indenture or the Notes.

 

(e)          The
Registrar shall retain copies of all letters, notices and other written communications received pursuant to Section 2.15.  The
Issuer shall have the right to inspect and make copies of all such letters, notices or other written communications at any reasonable
time upon the giving of reasonable written notice to the Registrar.

 

(f)          The
Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed
under this Indenture or under applicable law with respect to any transfer of any interest in any Note (including any transfers
between or among Depository Participants or beneficial owners of interests in any Global Note) other than to require delivery
of such certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required
by the terms of, this Indenture, and to examine the same to determine substantial compliance as to form with the express requirements
hereof.

 

(g)          The
Trustee shall have no responsibility for the actions or omissions of the Depository, or the accuracy of the books and records
of the Depository.

 

(h)          At
such time as all beneficial interests in a particular Global Note have been exchanged for Physical Notes or a particular Global
Note has been redeemed, repurchased or canceled in whole and not in part, each such Global Note shall be returned to or retained
and canceled by the Trustee in accordance with Section 2.11 hereof.  At any time prior to such cancellation, if
any beneficial interest in a Global Note is exchanged for or transferred to a Person who will take delivery thereof in the form
of a beneficial interest in another Global Note or for Physical Notes, the principal amount of Notes represented by such Global
Note shall be reduced accordingly and an endorsement shall be made on such Global Note by the Trustee or by the Depository at
the direction of the Trustee to reflect such reduction; and if the beneficial interest is being exchanged for or transferred to
a Person who will take delivery thereof in the form of a beneficial interest in another Global Note, such other Global Note shall
be increased accordingly and an endorsement shall be made on such Global Note by the Trustee or by the Depository at the direction
of the Trustee to reflect such increase.

 

ARTICLE
Three

 

REDEMPTION

 

SECTION 3.01.                 Notices
to Trustee.

 

If the Issuer
elects to redeem Notes pursuant to Section 5 of the Notes, it shall notify the Trustee in writing of the Redemption Date,
the Redemption Price and the principal amount of Notes to be redeemed.  The Issuer shall give notice of redemption to
the Trustee at least 45 days but not more than 75 days before the Redemption Date (unless a shorter notice shall be agreed to
by the Trustee in writing), together with such documentation and records as shall enable the Trustee to select the Notes to be
redeemed.

 

    	 	21	 

     

    

 

SECTION 3.02.                 Selection
of Notes To Be Redeemed.

 

If less than all
of the Notes are to be redeemed at any time pursuant to Section 5 of the Notes, the Trustee will select Notes for redemption
as follows:

 

(x)          if
the Notes are listed on a national securities exchange, in compliance with the requirements of the principal national securities
exchange on which the Notes are listed; or

 

(y)          if
the Notes are not so listed, while the Notes are in book-entry form, in accordance with the procedures of the Depository, or if
the Notes are no longer in book-entry form, on a pro rata basis, by lot or by such method as the Trustee shall deem fair
and appropriate.

 

No Notes of $2,000
or less shall be redeemed in part.

 

SECTION 3.03.                 Notice
of Redemption.

 

At least 30 days
but not more than 60 days before a Redemption Date, the Issuer shall mail a notice of redemption by first class mail, postage
prepaid, to each Holder whose Notes are to be redeemed at its registered address (except that a notice issued in connection with
a redemption referred to in Section 8.01 may be more than 60 days before such Redemption Date).  At the Issuer’s
request, the Trustee shall forward the notice of redemption in the Issuer’s name and at the Issuer’s expense.  Each
notice for redemption shall identify the Notes (including the CUSIP or ISIN number) to be redeemed and shall state:

 

(1)          the
Redemption Date;

 

(2)          the
Redemption Price and the amount of accrued interest, if any, to be paid;

 

(3)          the
name and address of the Paying Agent;

 

(4)          that
Notes called for redemption must be surrendered to the Paying Agent to collect the Redemption Price plus accrued interest, if
any;

 

(5)          that,
unless the Issuer defaults in making the redemption payment, interest on Notes called for redemption ceases to accrue on and after
the Redemption Date, and the only remaining right of the Holders of such Notes is to receive payment of the Redemption Price upon
surrender to the Paying Agent of the Notes redeemed;

 

(6)          if
any Note is being redeemed in part, the portion of the principal amount of such Note to be redeemed and that, after the Redemption
Date, and upon surrender and cancellation of such Note, a new Note or Notes in aggregate principal amount equal to the unredeemed
portion thereof will be issued;

 

(7)          if
fewer than all the Notes are to be redeemed, the identification of the particular Notes (or portion thereof) to be redeemed, as
well as the aggregate principal amount of Notes to be redeemed and the aggregate principal amount of Notes to be outstanding after
such partial redemption; and

 

    	 	22	 

     

    

 

(8)          the
Section of the Notes or the Indenture, as applicable, pursuant to which the Notes are to be redeemed.

 

The notice, if
mailed in a manner herein provided, shall be conclusively presumed to have been given, whether or not the Holder receives such
notice.  In any case, failure to give such notice by mail or any defect in the notice to the Holder of any Note designated
for redemption in whole or in part shall not affect the validity of the proceedings for the redemption of any other Note.  Notices
of redemption may not be conditional.

 

SECTION 3.04.                 Effect
of Notice of Redemption.

 

Once notice of
redemption is mailed in accordance with Section 3.03, Notes called for redemption become due and payable on the Redemption
Date and at the Redemption Price plus accrued interest, if any.  Upon surrender to the Trustee or Paying Agent, such
Notes called for redemption shall be paid at the Redemption Price (which shall include accrued interest thereon to, but not including,
the Redemption Date), but installments of interest, the maturity of which is on or prior to the Redemption Date, shall be payable
to Holders of record at the close of business on the relevant Record Dates.  On and after the Redemption Date interest
shall cease to accrue on Notes or portions thereof called for redemption unless the Issuer shall have not complied with its obligations
pursuant to Section 3.05.

 

SECTION 3.05.                 Deposit
of Redemption Price.

 

On or before 10:00
a.m. New York time on the Redemption Date, the Issuer shall deposit with the Paying Agent U.S. Legal Tender sufficient to pay
the Redemption Price plus accrued and unpaid interest, if any, of all Notes to be redeemed on that date.

 

If the Issuer
complies with the preceding paragraph, then, unless the Issuer defaults in the payment of such Redemption Price plus accrued interest,
if any, interest on the Notes to be redeemed will cease to accrue on and after the applicable Redemption Date, whether or not
such Notes are presented for payment.

 

SECTION 3.06.                 Notes
Redeemed in Part.

 

If any Note is
to be redeemed in part only, the notice of redemption that relates to such Note shall state the portion of the principal amount
thereof to be redeemed.  A new Note or Notes in principal amount equal to the unredeemed portion of the original Note
or Notes shall be issued in the name of the Holder thereof upon surrender and cancellation of the original Note or Notes.

 

    	 	23	 

     

    

 

ARTICLE
Four

 

COVENANTS

 

SECTION 4.01.                 Payment
of Notes.

 

The Issuer shall
pay the principal of, premium, if any, and interest on the Notes in the manner provided in the Notes and this Indenture.  An
installment of principal of, or interest on, the Notes shall be considered paid on the date it is due if the Trustee or Paying
Agent (other than the Issuer or an Affiliate thereof) holds on that date U.S. Legal Tender designated for and sufficient to pay
the installment.  Interest on the Notes will be computed on the basis of a 360-day year comprised of twelve 30-day months.

 

The Issuer shall
pay interest on overdue principal (including post-petition interest in a proceeding under any Bankruptcy Law), and overdue interest,
to the extent lawful, at the same rate per annum borne by the Notes.

 

SECTION 4.02.                 Maintenance
of Office or Agency.

 

The Issuer shall
maintain in the Borough of Manhattan, The City of New York, the office or agency required under Section 2.03 (which may be
an office of the Trustee or an affiliate of the Trustee or Registrar).  The Issuer shall give prompt written notice
to the Trustee of the location, and any change in the location, of such office or agency.  If at any time the Issuer
shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the address of the Trustee set forth in Section 11.02.

 

The Issuer may
also from time to time designate one or more other offices or agencies where the Notes may be presented or surrendered for any
or all such purposes and may from time to time rescind such designations.  The Issuer will give prompt written notice
to the Trustee of any such designation or rescission and of any change in the location of any such other office or agency.

 

The Issuer hereby
initially designates U.S. Bank National Association, located at Two Midtown Plaza, 1349 W. Peachtree Street, NW., Suite 1050,
EX-GA-ATPT, Atlanta, Georgia 30309, Attention: Corporate Trust Department, as such office of the Issuer in accordance with Section 2.03.

 

SECTION 4.03.                 Corporate
Existence.

 

Except as otherwise
permitted by Article Five, the Issuer shall do or cause to be done all things necessary to preserve and keep in full force and
effect its corporate existence and the corporate, partnership or other existence of each of its Subsidiaries in accordance with
the respective organizational documents of each such Subsidiary and the material rights (charter and statutory) and material franchises
of the Issuer and each of its Subsidiaries; provided, however, that the Issuer shall not be required to preserve any such
right, franchise or corporate existence with respect to itself or any Subsidiary if the Board of Directors shall determine that
the preservation thereof is no longer desirable in the conduct of the business of the Issuer and its Subsidiaries, taken as a
whole, and that the loss thereof is not adverse in any material respect to the Holders of the Notes.

 

    	 	24	 

     

    

 

SECTION 4.04.                 Payment
of Taxes.

 

The Issuer and
the Subsidiary Guarantors shall, and shall cause each of the Subsidiaries to, pay or discharge or cause to be paid or discharged,
before the same shall become delinquent, (a) all material taxes, assessments and governmental charges levied or imposed upon
it or any of the Subsidiaries or upon the income, profits or property of it or any of the Subsidiaries and (b) all lawful
claims for labor, materials and supplies which, in each case, if unpaid, might by law become a material liability or Lien upon
the property of it or any of the Subsidiaries; provided, however, that the Issuer and the Subsidiary Guarantors shall not
be required to pay or discharge or cause to be paid or discharged any such tax, assessment, charge or claim whose amount the applicability
or validity is being contested in good faith by appropriate actions and for which appropriate provision has been made.

 

SECTION 4.05.                 Compliance
Certificate; Notice of Default.

 

(a)          The
Issuer shall deliver to the Trustee, within 90 days after the close of each fiscal year, an Officers’ Certificate stating
that a review of the activities of the Issuer and its Subsidiaries has been made under the supervision of the signing Officers
with a view to determining whether the Issuer and the Subsidiary Guarantors have kept, observed, performed and fulfilled their
obligations under this Indenture and further stating, as to each such Officer signing such certificate, that to the best of such
Officer’s knowledge, the Issuer and the Subsidiary Guarantors during such preceding fiscal year has kept, observed, performed
and fulfilled each and every such covenant and no Default occurred during such year and at the date of such certificate there
is no Default that has occurred and is continuing or, if such signers do know of such Default, the certificate shall specify such
Default and what action, if any, the Issuer is taking or proposes to take with respect thereto.  The Officers’
Certificate shall also notify the Trustee should the Issuer elect to change the manner in which it fixes the fiscal year end.

 

(b)          The
Issuer shall deliver to the Trustee promptly and in any event within five days after the Issuer becomes aware of the occurrence
of any Default an Officers’ Certificate specifying the Default and what action, if any, the Issuer is taking or proposes
to take with respect thereto.

 

SECTION 4.06.                 Waiver
of Stay, Extension or Usury Laws.

 

The Issuer and
each Subsidiary Guarantor covenants (to the extent permitted by applicable law) that it will not at any time insist upon, plead,
or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law or any usury law or other law
that would prohibit or forgive such Issuer or such Subsidiary Guarantor from paying all or any portion of the principal of and/or
interest on the Notes or the Subsidiary Guarantee of any such Subsidiary Guarantor as contemplated herein, wherever enacted, now
or at any time hereafter in force, or which may affect the covenants or the performance of this Indenture, and (to the extent
permitted by applicable law) each hereby expressly waives all benefit or advantage of any such law, and covenants that it will
not hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution
of every such power as though no such law had been enacted.

 

    	 	25	 

     

    

 

SECTION 4.07.                 Limitation
on Indebtedness.

 

(a)          The
Issuer will not, and will not permit any of its Subsidiaries to, Incur any Indebtedness (including Acquired Indebtedness) if,
immediately after giving effect to the Incurrence of such additional Indebtedness and the receipt and application of the proceeds
therefrom, the aggregate principal amount of all outstanding Indebtedness of the Issuer and its Subsidiaries on a consolidated
basis determined in conformity with GAAP is greater than 60% of Adjusted Total Assets.

 

(b)          The
Issuer will not, and will not permit any of its Subsidiaries to, Incur any Secured Indebtedness if, immediately after giving effect
to the Incurrence of such additional Secured Indebtedness and the receipt and application of the proceeds therefrom, the aggregate
principal amount of all outstanding Secured Indebtedness of the Issuer and its Subsidiaries on a consolidated basis determined
in conformity with GAAP is greater than 40% of Adjusted Total Assets.

 

(c)          The
Issuer will not, and will not permit any of its Subsidiaries to, Incur any Indebtedness other than the Notes issued on the Closing
Date and other Indebtedness existing on the Closing Date; provided, however, that the Issuer or any of its Subsidiaries
may Incur Indebtedness if, after giving effect to the Incurrence of such Indebtedness and the receipt and application of the proceeds
therefrom, the Interest Coverage Ratio of the Issuer and its Subsidiaries on a consolidated basis would be greater than 1.5 to
1.0.

 

(d)          Notwithstanding
any other provision of this Section 4.07, the maximum amount of Indebtedness that the Issuer or any of its Subsidiaries may
Incur pursuant to this Section 4.07 shall not be deemed to be exceeded, with respect to any outstanding Indebtedness, due
solely to the result of fluctuations in the exchange rates of currencies.

 

(e)          For
purposes of determining any particular amount of Indebtedness under this Section 4.07, Guarantees, Liens or obligations with
respect to letters of credit supporting Indebtedness otherwise included in the determination of such particular amount shall not
be included.

 

SECTION 4.08.                 Maintenance
of Total Unencumbered Assets.

 

The Issuer and
its Subsidiaries will maintain Total Unencumbered Assets of not less than 150% of the aggregate outstanding principal amount of
the Unsecured Indebtedness of the Issuer and its Subsidiaries on a consolidated basis.

 

SECTION 4.09.                 Limitation
on Issuances of Guarantees by Subsidiaries.

 

The Issuer will
not permit any of its Subsidiaries, directly or indirectly, at any time after the issuance of the Notes (including following any
release of a Subsidiary Guarantor from its obligations under this Indenture) to Guarantee any Indebtedness of the Issuer (that
would constitute Indebtedness under clauses (1) or (2) of the definition thereof) in an amount at least equal to $50 million,
unless such Subsidiary simultaneously executes and delivers a supplemental indenture to this Indenture providing for a Subsidiary
Guarantee by such Subsidiary.

 

    	 	26	 

     

    

 

SECTION 4.10.                 Reports
to Holders.

 

Whether or not
the Issuer is then required to file reports with the SEC, the Issuer shall file with the SEC all such reports and other information
as it would be required to file with the SEC pursuant to Section 13(a) or 15(d) under the Exchange Act if it was subject
thereto; provided, however, that, if filing such documents by the Issuer with the SEC is not permitted under the
Exchange Act, the Issuer shall provide such documents to the Trustee and upon written request supply copies of such documents
to any prospective Holder.  The Issuer shall supply the Trustee and each Holder or shall supply to the Trustee for forwarding
to each Holder, without cost to such Holder and at the expense of the Issuer, copies of such reports and other information.

 

ARTICLE
Five

 

SUCCESSOR
CORPORATION

 

SECTION 5.01.                 Consolidation,
Merger and Sale of Assets.

 

(a)          The
Issuer will not consolidate with or merge with or into, or sell, convey, transfer, lease or otherwise dispose of all or substantially
all of its property and assets (as an entirety or substantially an entirety in one transaction or a series of related transactions)
to, any Person or permit any Person to merge with or into the Issuer unless:

 

(1)          the
Issuer shall be the continuing Person, or the Person (if other than the Issuer) formed by such consolidation or into which the
Issuer is merged or that acquired or leased such property and assets of the Issuer shall be a corporation, general or limited
partnership, limited liability company or other entity (other than an individual) organized and validly existing under the laws
of the United States of America or any state or jurisdiction thereof and shall expressly assume, by a supplemental indenture,
executed and delivered to the Trustee, all of the obligations of the Issuer on the Notes and under this Indenture;

 

(2)          immediately
after giving effect to such transaction, no Default or Event of Default shall have occurred and be continuing;

 

(3)          immediately
after giving effect to such transaction on a pro forma basis the Issuer, or any Person becoming the successor obligor of
the Notes, as the case may be, could Incur at least $1.00 of Indebtedness under paragraphs (a), (b) and (c) of Section 4.07;
provided, however, that this clause (3) shall not apply to a consolidation or merger with or into a Wholly Owned Subsidiary
with a positive net worth; provided further, however, that, in connection with any such merger or consolidation,
no consideration (other than Capital Stock (other than Disqualified Stock) in the surviving Person or the Issuer) shall be issued
or distributed to the holders of Capital Stock of the Issuer; and

 

    	 	27	 

     

    

 

(4)          the
Issuer delivers to the Trustee an Officers’ Certificate (attaching the arithmetic computations to demonstrate compliance
with clause (3) above) and an Opinion of Counsel, in each case stating that such consolidation, merger or transfer and such supplemental
indenture complies with this Section 5.01 and that all conditions precedent provided for herein relating to such transaction
have been complied with; provided, however, that clause (3) above does not apply if, in the good faith determination of
the Board of Directors of the Issuer, whose determination shall be evidenced by a Board Resolution, the principal purpose of such
transaction is to change the state of domicile of the Issuer; provided further, however, that any such transaction
shall not have as one of its purposes the evasion of the foregoing limitations.

 

(b)          Except
as provided in Section 10.04, no Subsidiary Guarantor may consolidate with or merge with or into (whether or not such Subsidiary
Guarantor is the surviving Person) another Person, unless:

 

(1)          either
such Subsidiary Guarantor shall be the continuing Person or the Person (if other than such Subsidiary Guarantor) formed by such
consolidation or into which such Subsidiary Guarantor is merged shall be a corporation or other legal entity organized and validly
existing under the laws of the United States of America or any state or jurisdiction thereof and shall expressly assume, by a
supplemental indenture, executed and delivered to the Trustee, all of the obligations of such Subsidiary Guarantor under the Subsidiary
Guarantee of such Subsidiary Guarantor and under this Indenture; and

 

(2)          immediately
after giving effect to such transaction, no Default or Event of Default shall have occurred and be continuing.

 

(c)          For
purposes of the foregoing, the transfer (by lease, assignment, sale or otherwise, in a single transaction or series of transactions)
of all or substantially all of the properties or assets of one or more Subsidiary Guarantors, the Capital Stock of which constitutes
all or substantially all of the properties and assets of the Issuer, will be deemed to be the transfer of all or substantially
all of the properties and assets of the Issuer.

 

(d)          Upon
any such consolidation, combination or merger of the Issuer or a Subsidiary Guarantor, or any such sale, conveyance, transfer,
lease or other disposition of all or substantially all of the assets of the Issuer in accordance with this Section 5.01,
in which the Issuer or such Subsidiary Guarantor is not the continuing obligor under the Notes or its Subsidiary Guarantee, the
surviving entity formed by such consolidation or into which the Issuer or such Subsidiary Guarantor is merged or the entity to
which the sale, conveyance, transfer, lease or other disposition is made will succeed to, and be substituted for, and may exercise
every right and power of, the Issuer or such Subsidiary Guarantor under this Indenture, the Notes and the Subsidiary Guarantees
with the same effect as if such surviving entity had been named therein as the Issuer or such Subsidiary Guarantor and, except
in the case of a lease, the Issuer or such Subsidiary Guarantor, as the case may be, will be released from the obligation to pay
the principal of and interest on the Notes or in respect of its Subsidiary Guarantee, as the case may be, and all of the Issuer’s
or such Subsidiary Guarantor’s other obligations and covenants under the Notes, this Indenture and its Subsidiary Guarantee,
if applicable.

 

    	 	28	 

     

    

 

(e)          Notwithstanding
the foregoing, any Subsidiary Guarantor may (i) consolidate with or merge with or into the Issuer or another Subsidiary Guarantor
or (ii) convert into a corporation, general or limited partnership, limited liability company or trust organized under the laws
of such Subsidiary Guarantor’s jurisdiction of organization or the laws of the United States of America or any state or
jurisdiction thereof.

 

ARTICLE
Six

 

DEFAULT
AND REMEDIES

 

SECTION 6.01.                 Events
of Default.

 

Each of the following
is an “Event of Default”:

 

(1)          default
in the payment of principal of, or premium, if any, on any Note when they are due and payable at maturity, upon acceleration,
redemption or otherwise;

 

(2)          default
in the payment of interest on any Note when it is due and payable, and such default continues for a period of 30 days;

 

(3)          default
in the performance or breach of the provisions of this Indenture applicable to mergers, consolidations and transfers of all or
substantially all of the assets of the Issuer;

 

(4)          the
Issuer defaults in the performance of or breaches any other covenant or agreement of the Issuer in this Indenture or under the
Notes (other than a default specified in clause (1), (2) or (3) above) and such default or breach continues for the earlier of
(i) 60 consecutive days and (ii) such shorter period specified for comparable defaults under any Existing Note Indenture (or under
any indenture pursuant to which the Issuer or a Subsidiary Guarantor has issued any Indebtedness that refinances or refunds (x)
the Indebtedness under such Existing Note Indenture or (y) such refinancing or refunding Indebtedness) after written notice by
the Trustee or the Holders of 25% or more in aggregate principal amount of the Notes;

 

(5)          there
occurs with respect to any issue or issues of Indebtedness of the Issuer or any Significant Subsidiary having an outstanding principal
amount of $35 million or more in the aggregate for all such issues of all such Persons, whether such Indebtedness now exists or
shall hereafter be created,

 

(i)          an
event of default that has caused the Holder thereof to declare such Indebtedness to be due and payable prior to its Stated Maturity
and such Indebtedness has not been discharged in full or such acceleration has not been rescinded or annulled within 30 days of
such acceleration, and/or

 

(ii)          the
failure to make a principal payment at the final (but not any interim) fixed maturity and such defaulted payment shall not have
been made, waived or extended within 30 days of such payment default;

 

    	 	29	 

     

    

 

(6)          a
court of competent jurisdiction enters a decree or order for:

 

(i)          relief
in respect of the Issuer or any Significant Subsidiary in an involuntary case under any applicable Bankruptcy Law now or hereafter
in effect,

 

(ii)          appointment
of a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of the Issuer or any Significant Subsidiary
or for all or substantially all of the property and assets of the Issuer or any Significant Subsidiary, or

 

(iii)          the
winding up or liquidation of the affairs of the Issuer or any Significant Subsidiary and, in each case, such decree or order shall
remain unstayed and in effect for a period of 60 consecutive days; or

 

(7)          the
Issuer or any Significant Subsidiary:

 

(i)          commences
a voluntary case under any applicable Bankruptcy Law now or hereafter in effect, or consents to the entry of an order for relief
in an involuntary case under such law,

 

(ii)          consents
to the appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official
of the Issuer or such Significant Subsidiary or for all or substantially all of the property and assets of the Issuer or such
Significant Subsidiary, or

 

(iii)          effects
any general assignment for the benefit of its creditors.

 

SECTION 6.02.                 Acceleration.

 

If an Event of
Default (other than an Event of Default specified in clause (6) or (7) of Section 6.01 that occurs with respect to the Issuer)
occurs and is continuing under this Indenture, the Trustee or the Holders of at least 25% in aggregate principal amount of the
Notes then outstanding, by written notice to the Issuer (and to the Trustee if such notice is given by the Holders), may, and
the Trustee at the request of the Holders of at least 25% in aggregate principal amount of the Notes then outstanding shall, declare
the principal of, premium, if any, and accrued interest on the Notes to be immediately due and payable.  Upon a declaration
of acceleration, such principal of, premium, if any, and accrued interest shall be immediately due and payable.  In
the event of a declaration of acceleration because an Event of Default set forth in clause (5) of Section 6.01 has occurred
and is continuing, such declaration of acceleration shall be automatically rescinded and annulled if the event of default triggering
such Event of Default pursuant to clause (5) of Section 6.01 shall be remedied or cured by the Issuer or the relevant Significant
Subsidiary or waived by the holders of the relevant Indebtedness within 60 days after the declaration of acceleration with respect
thereto.

 

If an Event or
Default specified in clause (6) or (7) of Section 6.01 occurs with respect to the Issuer, the principal of, premium, if any,
and accrued interest on the Notes then outstanding shall automatically become and be immediately due and payable without any declaration
or other act on the part of the Trustee or any Holder. The Holders of at least a majority in principal amount of the outstanding
Notes, by written notice to the Issuer and to the Trustee, may waive all past defaults and rescind and annul a declaration of
acceleration and its consequences if:

 

    	 	30	 

     

    

 

(x)          all
existing Events of Default, other than the nonpayment of the principal of, premium, if any, and interest on the Notes that have
become due solely by such declaration of acceleration, have been cured or waived;

 

(y)          the
rescission would not conflict with any judgment or decree of a court of competent jurisdiction; and

 

(z)          in
the event of a cure or waiver of a Default of the type set forth in Section 6.01(6) or (7), the Trustee shall have received an
Officers’ Certificate and an Opinion of Counsel that such Default has been cured or waived.

 

No such rescission
shall affect any subsequent Default or impair any right consequent thereto.

 

SECTION 6.03.                 Other
Remedies.

 

If a Default occurs
and is continuing, the Trustee may pursue any available remedy by proceeding at law or in equity to collect the payment of principal
of, or interest on, the Notes or to enforce the performance of any provision of the Notes or this Indenture.

 

The Trustee may
maintain a proceeding even if it does not possess any of the Notes or does not produce any of them in the proceeding.  A
delay or omission by the Trustee or any Holder in exercising any right or remedy accruing upon a Default shall not impair the
right or remedy or constitute a waiver of or acquiescence in the Default.  No remedy is exclusive of any other remedy.  All
available remedies are cumulative to the extent permitted by law.

 

SECTION 6.04.                 Waiver
of Past Defaults.

 

Subject to Sections 2.09,
6.07 and 9.02, the Holders of a majority in principal amount of the outstanding Notes (which may include consents obtained in
connection with a tender offer or exchange offer of Notes) by notice to the Trustee may waive an existing Default and its consequences,
except a Default in the payment of principal of, or interest on, any Note as specified in Section 6.01(1) or (2).  The
Issuer shall deliver to the Trustee an Officers’ Certificate stating that the requisite percentage of Holders have consented
to such waiver and attaching copies of such consents.  When a Default is waived, it is cured and ceases.

 

SECTION 6.05.                 Control
by Majority.

 

The Holders of
at least a majority in aggregate principal amount of the outstanding Notes may direct the time, method and place of conducting
any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on the Trustee.  Subject
to Section 7.01, however, the Trustee may refuse to follow any direction that conflicts with law or this Indenture, that
may involve the Trustee in personal liability, or that the Trustee determines in good faith may be unduly prejudicial to the rights
of Holders of Notes not joining in the giving of such direction received from the Holders of Notes; provided, however,
that the Trustee may take any other action deemed proper by the Trustee which is not inconsistent with any such direction received
from the Holders of the Notes.

  

    	 	31	 

     

    

 

In
the event the Trustee takes any action or follows any direction pursuant to this Indenture, the Trustee shall be entitled to indemnification
against any loss or expense caused by taking such action or following such direction.

 

SECTION 6.06.                 Limitation
on Suits.

 

No Holder will
have any right to institute any proceeding with respect to this Indenture or for any remedy thereunder, unless:

 

(1)          the
Holder gives the Trustee written notice of a continuing Event of Default;

 

(2)          the
Holders of at least 25% in aggregate principal amount of outstanding Notes make a written request to the Trustee to pursue the
remedy;

 

(3)          such
Holder or Holders offer the Trustee indemnity satisfactory to the Trustee against any costs, liability or expense;

 

(4)          the
Trustee does not comply with the request within 60 days after receipt of the request and the offer of indemnity; and

 

(5)          during
such 60-day period, the Holders of a majority in aggregate principal amount of the outstanding Notes do not give the Trustee a
direction that is inconsistent with the request.

 

However, such
limitations do not apply to the right of any Holder of a Note to receive payment of the principal of, premium, if any, or interest
on, such Note or to bring suit for the enforcement of any such payment on or after the due date expressed in the Notes, which
right shall not be impaired or affected without the consent of the Holder.

 

A Holder may not
use this Indenture to prejudice the rights of another Holder or to obtain a preference or priority over such other Holder.

 

SECTION 6.07.                 Rights
of Holders To Receive Payment.

 

Notwithstanding
any other provision of this Indenture, the right of any Holder to receive payment of principal of and premium, if any, and interest
on, a Note, on or after the respective due dates therefor, or to bring suit for the enforcement of any such payment on or after
such respective dates, shall not be impaired or affected without the consent of the Holder.

 

    	 	32	 

     

    

 

SECTION 6.08.                 Collection
Suit by Trustee.

 

If a Default in
payment of principal or interest specified in Section 6.01(1) or (2) occurs and is continuing, the Trustee may recover judgment
in its own name and as trustee of an express trust against the Issuer or any other obligor on the Notes for the whole amount of
principal and accrued interest and fees remaining unpaid, together with interest on overdue principal and, to the extent that
payment of such interest is lawful, interest on overdue installments of interest, in each case at the rate per annum borne
by the Notes and such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel.

 

SECTION 6.09.                 Trustee
May File Proofs of Claim.

 

The Trustee may
file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the Trustee
(including any claim for the compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and the
Holders allowed in any judicial proceedings relating to the Issuer, their creditors or their property and shall be entitled and
empowered to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the
same, and any Custodian in any such judicial proceedings is hereby authorized by each Holder to make such payments to the Trustee
and, in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee
any amount due to it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agent and counsel,
and any other amounts due the Trustee under Section 7.07.  Nothing herein contained shall be deemed to authorize
the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment
or composition affecting the Notes or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the
claim of any Holder in any such proceeding.  The Trustee shall be entitled to participate as a member of any official
committee of creditors in the matters as it deems necessary or advisable.

 

SECTION 6.10.                 Priorities.

 

If the Trustee
collects any money or property pursuant to this Article Six, it shall pay out the money or property in the following order:

 

First:
to the Trustee for amounts due under Section 7.07;

 

Second:
to Holders for interest accrued on the Notes, ratably, without preference or priority of any kind, according to the amounts due
and payable on the Notes for interest;

 

Third:
to Holders for principal amounts due and unpaid on the Notes, ratably, without preference or priority of any kind, according to
the amounts due and payable on the Notes for principal; and

 

Fourth:
to the Issuer or, if applicable, the Subsidiary Guarantors, as their respective interests may appear.

 

The Trustee, upon
prior notice to the Issuer, may fix a record date and payment date for any payment to Holders pursuant to this Section 6.10.

 

    	 	33	 

     

    

 

SECTION 6.11.                 Undertaking
for Costs.

 

In any suit for
the enforcement of any right or remedy under this Indenture or in any suit against the Trustee for any action taken or omitted
by it as Trustee, a court in its discretion may require the filing by any party litigant in the suit of an undertaking to pay
the costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’ fees
and expenses, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses
made by the party litigant.  This Section 6.11 does not apply to a suit by the Trustee, a suit by a Holder pursuant
to Section 6.07, or a suit by a Holder or Holders of more than 10% in principal amount of the outstanding Notes.

 

ARTICLE
Seven

 

TRUSTEE

 

SECTION 7.01.                 Duties
of Trustee.

 

(a)          If
a Default has occurred and is continuing, the Trustee shall exercise such of the rights and powers vested in it by this Indenture
and use the same degree of care and skill in their exercise as a prudent person would exercise or use under the circumstances
in the conduct of his or her own affairs.  

 

(b)          Except
during the continuance of a Default:

 

(1)          The
Trustee need perform only those duties as are specifically set forth herein or in the Trust Indenture Act and no duties, covenants,
responsibilities or obligations shall be implied in this Indenture against the Trustee.

 

(2)          In
the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness
of the opinions expressed therein, upon certificates (including Officers’ Certificates) or opinions (including Opinions
of Counsel) furnished to the Trustee and conforming to the requirements of this Indenture.  However, in the case of
any such certificates or opinions which by any provision hereof are specifically required to be furnished to the Trustee, the
Trustee shall examine the certificates and opinions to determine whether or not they conform to the requirements of this Indenture.

 

(c)          Notwithstanding
anything to the contrary herein, the Trustee may not be relieved from liability for its own negligent action, its own negligent
failure to act, or its own willful misconduct, except that:

 

(1)          This
paragraph does not limit the effect of Section 7.01(b).

 

(2)          The
Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it is proved that the
Trustee was negligent in ascertaining the pertinent facts.

 

    	 	34	 

     

    

 

(3)          The
Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction
received by it pursuant to Section 6.05.

 

(d)          No
provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability
in the performance of any of its duties hereunder or to take or omit to take any action under this Indenture or take any action
at the request or direction of Holders if it shall have reasonable grounds for believing that repayment of such funds is not assured
to it.

 

(e)          Whether
or not therein expressly so provided, every provision of this Indenture that in any way relates to the Trustee is subject to this
Section 7.01.

 

(f)          The
Trustee shall not be liable for interest on any money received by it except as the Trustee may agree in writing with the Issuer.  Money
held in trust by the Trustee need not be segregated from other funds except to the extent required by law.

 

(g)          In
the absence of bad faith, negligence or willful misconduct on the part of the Trustee, the Trustee shall not be responsible for
the application of any money by any Paying Agent other than the Trustee.

 

SECTION 7.02.                 Rights
of Trustee.

 

Subject to Section 7.01:

 

(a)          The
Trustee may rely conclusively on any resolution, certificate (including any Officers’ Certificate), statement, instrument,
opinion (including any Opinion of Counsel), notice, request, direction, consent, order, bond, debenture, or other paper or document
believed by it to be genuine and to have been signed or presented by the proper Person.  The Trustee need not investigate
any fact or matter stated in the document.

 

(b)          Before
the Trustee acts or refrains from acting, it may require an Officers’ Certificate and an Opinion of Counsel, which shall
conform to the provisions of Section 11.05.  The Trustee shall not be liable for any action it takes or omits to
take in good faith in reliance on such Officers’ Certificate or Opinion of Counsel.

 

(c)          The
Trustee may act through its attorneys and agents and shall not be responsible for the misconduct or negligence of any agent (other
than an agent who is an employee of the Trustee) appointed with due care.

 

(d)          The
Trustee shall not be liable for any action it takes or omits to take in good faith which it reasonably believes to be authorized
or within its rights or powers under this Indenture.

 

(e)          The
Trustee may consult with counsel of its selection and the advice or opinion of such counsel as to matters of law shall be full
and complete authorization and protection from liability in respect of any action taken, omitted or suffered by it hereunder in
good faith and in accordance with the advice or opinion of such counsel.

 

    	 	35	 

     

    

 

(f)          The
Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request, order
or direction of any of the Holders pursuant to the provisions of this Indenture, unless such Holders shall have offered to the
Trustee reasonable security or indemnity satisfactory to it against the costs, expenses and liabilities which may be incurred
therein or thereby.

 

(g)          The
Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate (including
any Officers’ Certificate), statement, instrument, opinion (including any Opinion of Counsel), notice, request, direction,
consent, order, bond, debenture, or other paper or document, but the Trustee, in its discretion, may make such further inquiry
or investigation into such facts or matters as it may see fit and, if the Trustee shall determine to make such further inquiry
or investigation, it shall be entitled, upon reasonable notice to the Issuer, to examine the books, records, and premises of the
Issuer, personally or by agent or attorney at the sole cost of the Issuer.

 

(h)          The
Trustee shall not be required to give any bond or surety in respect of the performance of its powers and duties hereunder.

 

(i)          The
permissive rights of the Trustee to do things enumerated in this Indenture shall not be construed as duties.

 

(j)          Except
with respect to Section 4.01 and 4.05, the Trustee shall have no duty to inquire as to the performance of the Issuer with
respect to the covenants contained in Article Four.  In addition, the Trustee shall not be deemed to have knowledge
of an Event of Default except (i) any Default or Event of Default occurring pursuant to Sections 4.01, 6.01(1) or 6.01(2)
or (ii) any Default or Event of Default known to a Responsible Officer.

 

(k)          The
rights, privileges, protections, immunities and benefits given to the Trustee, including its right to be indemnified, are extended
to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and to each agent, custodian and other Person
employed to act hereunder.

 

SECTION 7.03.                 Individual
Rights of Trustee.

 

The Trustee in
its individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal with the Issuer, its Subsidiaries
or its respective Affiliates with the same rights it would have if it were not Trustee.  Any Agent may do the same with
like rights.  However, the Trustee must comply with Sections 7.10 and 7.11.

 

SECTION 7.04.                 Trustee’s
Disclaimer.

 

The Trustee shall
not be responsible for and makes no representation as to the validity or adequacy of this Indenture or the Notes, it shall not
be accountable for the Issuer’s use of the proceeds from the Notes, and it shall not be responsible for any statement of
the Issuer in this Indenture or any document issued in connection with the sale of Notes or any statement in the Notes other than
the Trustee’s certificate of authentication.  The Trustee makes no representations with respect to the effectiveness
or adequacy of this Indenture.

 

    	 	36	 

     

    

 

SECTION 7.05.                 Notice
of Default.

 

If a Default occurs
and is continuing and is deemed to be known to the Trustee pursuant to Section 7.02(j), the Trustee shall mail to each Holder
notice of the uncured Default within 30 days after such Default occurs.  Except in the case of a Default in payment
of principal of, or interest on, any Note, including an accelerated payment and the failure to make a payment on a Payment Date
pursuant to a Default in complying with the provisions of Article Five, the Trustee may withhold the notice if and so long as
the Board of Directors, the executive committee, or a trust committee of directors and/or Responsible Officers, of the Trustee
in good faith determines that withholding the notice is in the interest of the Holders.

 

SECTION 7.06.                 Reports
by Trustee to Holders.

 

Within 60 days
after each December 1, beginning with December 1, 2015, the Trustee shall, to the extent that any of the events described in Trust
Indenture Act § 313(a) occurred within the previous twelve months, but not otherwise, mail to each Holder a brief report
dated as of such date that complies with Trust Indenture Act § 313(a).  The Trustee also shall comply with
Trust Indenture Act §§ 313(b), 313(c) and 313(d).

 

A copy of each
report at the time of its mailing to Holders shall be mailed to the Issuer and filed with the SEC and each securities exchange,
if any, on which the Notes are listed.

 

The Issuer shall
notify the Trustee if the Notes become listed on any securities exchange or of any delisting thereof and the Trustee shall comply
with Trust Indenture Act § 313(d).

 

SECTION 7.07.                 Compensation
and Indemnity.

 

The Issuer shall
pay to the Trustee from time to time such compensation as the Issuer and the Trustee shall from time to time agree in writing
for its services hereunder.  The Trustee’s compensation shall not be limited by any law on compensation of a trustee
of an express trust.  The Issuer shall reimburse the Trustee upon request for all reasonable disbursements, expenses
and advances (including reasonable fees and expenses of counsel) incurred or made by it in addition to the compensation for its
services, except any such disbursements, expenses and advances as may be attributable to the Trustee’s negligence, bad faith
or willful misconduct.  Such expenses shall include the reasonable fees and expenses of the Trustee’s agents and
counsel.

 

    	 	37	 

     

    

 

The Issuer shall
indemnify each of the Trustee or any predecessor Trustee and its agents for, and hold them harmless against, any and all loss,
damage, claims including taxes (other than taxes based upon, measured by or determined by the income of the Trustee), liability
or expense incurred by them except for such actions to the extent caused by any negligence, bad faith or willful misconduct on
their part, arising out of or in connection with the acceptance or administration of this trust including the reasonable costs
and expenses of defending themselves against or investigating any claim or liability in connection with the exercise or performance
of any of the Trustee’s rights, powers or duties hereunder.  The Trustee shall notify the Issuer promptly of any
claim asserted against the Trustee or any of its agents for which it may seek indemnity.  The Issuer may, subject to
the approval of the Trustee (which approval shall not be unreasonably withheld), defend the claim and the Trustee shall cooperate
in the defense.  The Trustee and its agents subject to the claim may have separate counsel and the Issuer shall pay
the reasonable fees and expenses of such counsel; provided, however, that the Issuer will not be required to pay such fees
and expenses if, subject to the approval of the Trustee (which approval shall not be unreasonably withheld), it assumes the Trustee’s
defense and there is no conflict of interest between the Issuer and the Trustee and its agents subject to the claim in connection
with such defense as reasonably determined by the Trustee.  The Issuer need not pay for any settlement made without
its written consent.  The Issuer need not reimburse any expense or indemnify against any loss or liability to the extent
incurred by the Trustee through its negligence, bad faith or willful misconduct.

 

To secure the
Issuer’s payment obligations in this Section 7.07, the Trustee shall have a Lien prior to the Notes against all money
or property held or collected by the Trustee, in its capacity as Trustee, except money or property held in trust to pay principal
and interest on particular Notes.

 

When the Trustee
incurs expenses or renders services after a Default specified in Section 6.01(6) or 6.01(7) occurs, such expenses and the
compensation for such services shall be paid to the extent allowed under any Bankruptcy Law.

 

Notwithstanding
any other provision in this Indenture, the foregoing provisions of this Section 7.07 shall survive the satisfaction and discharge
of this Indenture or the appointment of a successor Trustee.

 

SECTION 7.08.                 Replacement
of Trustee.

 

The Trustee may
resign at any time by so notifying the Issuer in writing.  The Holders of a majority in principal amount of the outstanding
Notes may remove the Trustee by so notifying the Issuer and the Trustee and may appoint a successor Trustee.  The Issuer
may remove the Trustee if:

 

(1)          the
Trustee fails to comply with Section 7.10;

 

(2)          the
Trustee is adjudged a bankrupt or an insolvent;

 

(3)          a
receiver or other public officer takes charge of the Trustee or its property; or

 

(4)          the
Trustee becomes incapable of acting.

 

If the Trustee
resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the Issuer shall notify each Holder of such
event and shall promptly appoint a successor Trustee.  Within one year after the successor Trustee takes office, the
Holders of a majority in principal amount of the Notes may appoint a successor Trustee to replace the successor Trustee appointed
by the Issuer.

 

    	 	38	 

     

    

 

A successor Trustee
shall deliver a written acceptance of its appointment to the retiring Trustee and to the Issuer.  Immediately after
that, the retiring Trustee shall transfer, after payment of all sums then owing to the Trustee pursuant to Section 7.07,
all property held by it as Trustee to the successor Trustee, subject to the Lien provided in Section 7.07, the resignation
or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties
of the Trustee under this Indenture.  A successor Trustee shall mail notice of its succession to each Holder.

 

If a successor
Trustee does not take office within 60 days after the retiring Trustee resigns or is removed, the retiring Trustee, the Issuer
or the Holders of at least 10% in principal amount of the outstanding Notes may petition any court of competent jurisdiction for
the appointment of a successor Trustee at the expense of the Issuer.

 

If the Trustee
fails to comply with Section 7.10, any Holder may petition any court of competent jurisdiction for the removal of the Trustee
and the appointment of a successor Trustee.

 

Notwithstanding
replacement of the Trustee pursuant to this Section 7.08, the Issuer’s obligations under Section 7.07 shall continue
for the benefit of the retiring Trustee.

 

SECTION
7.09.                 Successor Trustee
by Merger, Etc.

 

If the Trustee
consolidates with, merges or converts into, or transfers all or substantially all of its corporate trust business to, another
corporation, the resulting, surviving or transferee corporation without any further act shall, if such resulting, surviving or
transferee corporation is otherwise eligible hereunder, be the successor Trustee; provided that such corporation shall
be otherwise qualified and eligible under this Article Seven.

 

SECTION 7.10.                 Eligibility;
Disqualification.

 

This Indenture
shall always have a Trustee who satisfies the requirement of Trust Indenture Act §§ 310(a)(1), 310(a)(2) and 310(a)(5).  The
Trustee shall have a combined capital and surplus of at least $150,000,000 as set forth in its most recent published annual report
of condition.  The Trustee shall comply with Trust Indenture Act § 310(b); provided, however, that
there shall be excluded from the operation of Trust Indenture Act § 310(b)(1) any indenture or indentures under which
other securities, or certificates of interest or participation in other securities, of the Issuer are outstanding, if the requirements
for such exclusion set forth in Trust Indenture Act § 310(b)(1) are met.  The provisions of Trust Indenture
Act § 310 shall apply to the Issuer and any other obligor of the Notes.

 

SECTION 7.11.                 Preferential
Collection of Claims Against the Issuer.

 

The Trustee, in
its capacity as Trustee hereunder, shall comply with Trust Indenture Act § 311(a), excluding any creditor relationship
listed in Trust Indenture Act § 311(b).  A Trustee who has resigned or been removed shall be subject to Trust
Indenture Act § 311(a) to the extent indicated.

 

    	 	39	 

     

    

 

ARTICLE
Eight

 

DISCHARGE
OF INDENTURE; DEFEASANCE

 

SECTION 8.01.                 Termination
of the Issuer’s Obligations.

 

The Issuer may
terminate its obligations under the Notes and this Indenture and the obligations of the Subsidiary Guarantors under the Subsidiary
Guarantees and this Indenture and this Indenture shall cease to be of further effect, except those obligations referred to in
the penultimate paragraph of this Section 8.01, if:

 

(1)          either

 

(A)          all
the Notes theretofore authenticated and delivered (except lost, stolen or destroyed Notes which have been replaced or paid and
Notes for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Issuer and thereafter
repaid to the Issuer or discharged from such trust) have been delivered to the Trustee for cancellation; or

 

(B)          all
Notes not theretofore delivered to the Trustee for cancellation (1) have become due and payable or (2) will become due
and payable within one year, or are to be called for redemption within one year, under arrangements reasonably satisfactory to
the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Issuer, and the Issuer
has irrevocably deposited or caused to be deposited with the Trustee funds in an amount sufficient to pay and discharge the entire
Indebtedness on the Notes not theretofore delivered to the Trustee for cancellation, for principal of, premium, if any, and interest
on the Notes to the date of maturity or redemption, as the case may be, together with irrevocable instructions from the Issuer
directing the Trustee to apply such funds to the payment thereof at maturity or redemption, as the case may be; provided that
with respect to any redemption that requires the payment of the Applicable Premium (as defined in the form of Note in Exhibit
A), the amount deposited shall be sufficient for purposes of this paragraph to the extent that an amount is deposited with
the Trustee equal to the Applicable Premium calculated as of the date of the notice of redemption, with any deficit as of the
date of the redemption only required to be deposited with the Trustee on or prior to the date of the redemption;

 

(2)          the
Issuer has paid all sums payable by the Issuer under this Indenture, and

 

(3)          the
Issuer has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel stating that all conditions precedent
under this Indenture relating to the satisfaction and discharge of this Indenture have been complied with.

 

In the case of
clause (B) of this Section 8.01, and subject to the next sentence and notwithstanding the foregoing paragraph, the Issuer’s
obligations in Sections 2.05, 2.06, 2.07, 2.08, 4.01, 4.02, 4.03 (as to legal existence of the Issuer only), 7.07, 8.05 and
8.06 shall survive until the Notes are no longer outstanding pursuant to the last paragraph of Section 2.08.  After
the Notes are no longer outstanding, the Issuer’s obligations in Sections 7.07, 8.05 and 8.06 shall survive.

 

    	 	40	 

     

    

 

After such delivery
or irrevocable deposit, the Trustee upon request shall acknowledge in writing the discharge of the Issuer’s obligations
under the Notes and this Indenture except for those surviving obligations specified above.

 

SECTION 8.02.                 Legal
Defeasance and Covenant Defeasance.

 

(a)          The
Issuer may, at its option and at any time, elect to have either paragraph (b) or (c) below applied to all outstanding Notes
upon compliance with the conditions set forth in Section 8.03.

 

(b)          Upon
the Issuer’s exercise under Section 8.02(a) hereof of the option applicable to this Section 8.02(b), the Issuer
and the Subsidiary Guarantors shall, subject to the satisfaction of the conditions set forth in Section 8.03, be deemed to
have been discharged from their obligations with respect to all outstanding Notes on the date the conditions set forth below are
satisfied (hereinafter, “Legal Defeasance”).  For this purpose, Legal Defeasance means that the Issuer
and the Subsidiary Guarantors shall be deemed to have paid and discharged the entire Indebtedness represented by the outstanding
Notes and Subsidiary Guarantees, which shall thereafter be deemed to be “outstanding” only for the purposes of Section 8.04
hereof and the other Sections of this Indenture referred to in (i) and (ii) below, and to have satisfied all its other obligations
under such Notes and this Indenture and the Subsidiary Guarantors shall be deemed to have satisfied all of their obligations under
the Subsidiary Guarantees and this Indenture (and the Trustee, on demand of and at the expense of the Issuer, shall execute proper
instruments acknowledging the same), except for the following provisions which shall survive until otherwise terminated or discharged
hereunder:

 

(i)          the
rights of Holders of outstanding Notes to receive, solely from the trust fund described in Section 8.04, and as more fully
set forth in such Section 8.04, payments in respect of the principal of, premium, if any, and interest on such Notes when
such payments are due;

 

(ii)          the
Issuer’s obligations with respect to such Notes under Article Two and Section 4.02 hereof;

 

(iii)          the
rights, powers, trusts, duties and immunities of the Trustee hereunder and the Issuer’s obligations in connection therewith;
and

 

(iv)          the
provisions of this Article Eight applicable to Legal Defeasance.

 

Subject to compliance
with this Article Eight, the Issuer may exercise its option under this Section 8.02(b) notwithstanding the prior exercise
of its option under Section 8.02(c).

 

    	 	41	 

     

    

 

(c)          Upon
the Issuer’s exercise under paragraph (a) hereof of the option applicable to this paragraph (c), the Issuer and
the Subsidiary Guarantors shall, subject to the satisfaction of the conditions set forth in Section 8.03, be released from
their respective obligations under the covenants contained in Sections 4.03 (other than with respect to the legal existence
of the Issuer), 4.04, 4.07, 4.08, 4.09 and 4.10 and clause (3) of Section 5.01(a) with respect to the outstanding Notes
on and after the date the conditions set forth in Section 8.03 are satisfied (hereinafter, “Covenant Defeasance”),
and the Notes shall thereafter be deemed not “outstanding” for the purposes of any direction, waiver, consent or declaration
or act of Holders (and the consequences of any thereof) in connection with such covenants, but shall continue to be deemed “outstanding”
for all other purposes hereunder (it being understood that such Notes shall not be deemed outstanding for accounting purposes).  For
this purpose, Covenant Defeasance means that, with respect to the outstanding Notes, the Issuer and the Subsidiary Guarantors
may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in any such covenant,
whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any reference
in any such covenant to any other provision herein or in any other document and such omission to comply shall not constitute an
Event of Default under Section 6.01, but, except as specified above, the remainder of this Indenture and such Notes shall
be unaffected thereby.  In addition, upon the Issuer’s exercise under paragraph (a) hereof of the option
applicable to this paragraph (c), subject to the satisfaction of the conditions set forth in Section 8.03, clauses (3),
(4), and (5) of Section 6.01 shall not constitute Events of Default.

 

SECTION 8.03.                 Conditions
to Legal Defeasance or Covenant Defeasance.

 

The following
shall be the conditions to the application of either Section 8.02(b) or 8.02(c) hereof to the outstanding Notes:

 

(1)          the
Issuer must irrevocably deposit with the Trustee, in trust, for the benefit of the Holders, U.S. Legal Tender, U.S. Government
Obligations or a combination thereof, in such amounts as will be sufficient (without reinvestment), in the opinion of a nationally
recognized firm of independent public accountants selected by the Issuer, to pay the principal of and interest and premium, if
any, on the Notes on the stated date for payment or on the redemption date Notes;

 

(2)          in
the case of Legal Defeasance, the Issuer shall have delivered to the Trustee an Opinion of Counsel in the United States confirming
that:

 

(a)          the
Issuer has received from, or there has been published by the Internal Revenue Service, a ruling, or

 

(b)          since
the date of this Indenture, there has been a change in the applicable U.S. federal income tax law,

 

in either case to the
effect that, and based thereon the Holders will not recognize income, gain or loss for U.S. federal income tax purposes as a result
of such Legal Defeasance and will be subject to U.S. federal income tax on the same amounts, in the same manner and at the same
times as would have been the case if such Legal Defeasance had not occurred;

 

(3)          in
the case of Covenant Defeasance, the Issuer shall have delivered to the Trustee an Opinion of Counsel in the United States reasonably
acceptable to the Trustee confirming that the Holders will not recognize income, gain or loss for U.S. federal income tax purposes
as a result of such Covenant Defeasance and will be subject to U.S. federal income tax on the same amounts, in the same manner
and at the same times as would have been the case if such Covenant Defeasance had not occurred;

 

    	 	42	 

     

    

 

(4)          no
Default shall have occurred and be continuing on the date of such deposit (other than a Default resulting from the borrowing of
funds to be applied to such deposit);

 

(5)          the
Legal Defeasance or Covenant Defeasance shall not result in a breach or violation of, or constitute a Default under this Indenture
or a default under any other material agreement or instrument to which the Issuer or any of its Subsidiaries is a party or by
which the Issuer or any of its Subsidiaries is bound (other than any such Default or default resulting solely from the borrowing
of funds to be applied to such deposit);

 

(6)          the
Issuer shall have delivered to the Trustee an Officers’ Certificate stating that the deposit was not made by it with the
intent of preferring the Holders over any other creditors of the Issuer or with the intent of defeating, hindering, delaying or
defrauding any other of its creditors; and

 

(7)          the
Issuer shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that the conditions
provided for in, in the case of the Officers’ Certificate, clauses (1) through (6), as applicable, and, in the case of the
Opinion of Counsel, clauses (2), if applicable, and/or (3) and (5) of this Section 8.03 have been complied with.

 

SECTION 8.04.                 Application
of Trust Money.

 

The Trustee or
Paying Agent shall hold in trust U.S. Legal Tender and U.S. Government Obligations deposited with it pursuant to this Article
Eight, and shall apply the deposited U.S. Legal Tender and the money from U.S. Government Obligations in accordance with this
Indenture to the payment of the principal of and the interest on the Notes.  The Trustee shall be under no obligation
to invest said U.S. Legal Tender and U.S. Government Obligations, except as it may agree with the Issuer.

 

The Issuer shall
pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the U.S. Legal Tender and U.S.
Government Obligations deposited pursuant to Section 8.03 or the principal and interest received in respect thereof, other
than any such tax, fee or other charge which by law is for the account of the Holders of the outstanding Notes.

 

Anything in this
Article Eight to the contrary notwithstanding, the Trustee shall deliver or pay to the Issuer from time to time upon the Issuer’s
request any U.S. Legal Tender and U.S. Government Obligations held by it as provided in Section 8.03 which, in the opinion
of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the
Trustee, are in excess of the amount thereof that would then be required to be deposited to effect an equivalent Legal Defeasance
or Covenant Defeasance.

 

    	 	43	 

     

    

 

SECTION 8.05.                 Repayment
to the Issuer.

 

The Trustee and
the Paying Agent shall pay to the Issuer upon request any money held by them for the payment of principal or interest that remains
unclaimed for two years; provided, however, that the Trustee or such Paying Agent, before being required to make
any payment, may at the expense of the Issuer cause to be published once in a newspaper of general circulation in the City of
New York or mail to each Holder entitled to such money notice that such money remains unclaimed and that after a date specified
therein which shall be at least 30 days from the date of such publication or mailing any unclaimed balance of such money then
remaining will be repaid to the Issuer.  After payment to the Issuer, Holders entitled to such money must look to the
Issuer for payment as general creditors unless an applicable law designates another Person.

 

SECTION 8.06.                 Reinstatement.

 

If the Trustee
or Paying Agent is unable to apply any U.S. Legal Tender and U.S. Government Obligations in accordance with this Article Eight
by reason of any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining, restraining
or otherwise prohibiting such application, or if the funds deposited with the Trustee to effect Covenant Defeasance are insufficient
to pay the principal of, and interest on, the Notes when due, the Issuer’s obligations under this Indenture, and the Notes
and the Subsidiary Guarantees shall be revived and reinstated as though no deposit had occurred pursuant to this Article Eight
until such time as the Trustee or Paying Agent is permitted to apply all such U.S. Legal Tender and U.S. Government Obligations
in accordance with this Article Eight; provided that if the Issuer has made any payment of interest on, or principal of,
any Notes because of the reinstatement of its obligations, the Issuer shall be subrogated to the rights of the Holders of such
Notes to receive such payment from the U.S. Legal Tender and U.S. Government Obligations held by the Trustee or Paying Agent.

 

ARTICLE
Nine

 

AMENDMENTS,
SUPPLEMENTS AND WAIVERS

 

SECTION
9.01.                 Without Consent
of Holders.

 

(a)          The
Issuer, the Subsidiary Guarantors and the Trustee, together, may amend or supplement this Indenture, the Notes or the Subsidiary
Guarantees without notice to or consent of any Holder:

 

(1)          to
cure any ambiguity, defect or inconsistency in this Indenture, the Notes or the Subsidiary Guarantees;

 

(2)          to
provide for uncertificated Notes in addition to or in place of certificated Notes;

 

    	 	44	 

     

    

 

(3)          to
provide for the assumption of the Issuer’s or a Subsidiary Guarantor’s obligations to the Holders of the Notes in
the case of a merger, consolidation or sale of all or substantially all of the assets, in accordance with Article Five;

 

(4)          to
add any additional Subsidiary Guarantee by any additional Subsidiary Guarantor (which supplemental indenture need not be executed
by existing Subsidiary Guarantors);

 

(5)          to
release any Subsidiary Guarantor from any of its obligations under its Subsidiary Guarantee or this Indenture (to the extent permitted
by this Indenture);

 

(6)          to
make any change that would not materially adversely affect the rights of any Holder;

 

(7)          to
make any change to conform this Indenture, the Notes or the Subsidiary Guarantees to the "Description of Notes" section
of the Offering Memorandum of the Issuer relating to the Notes dated [ • ];

 

(8)          to
comply with requirements of the SEC in order to effect or maintain the qualification of this Indenture under the Trust Indenture
Act; or

 

(9)          to
evidence and provide for the acceptance of an appointment by a successor trustee;

 

provided, however,
that the Issuer has delivered to the Trustee an Opinion of Counsel and an Officers’ Certificate, each stating that such
amendment or supplement complies with the provisions of this Section 9.01.

 

SECTION 9.02.                 With
Consent of Holders.

 

(a)          Subject
to Section 6.07, the Issuer, the Subsidiary Guarantors and the Trustee, together, with the written consent of the Holder
or Holders of a majority in aggregate principal amount of the outstanding Notes may amend or supplement this Indenture, the Notes
or the Subsidiary Guarantees, without notice to any other Holders.  Subject to Sections 6.07, the Holder or Holders
of a majority in aggregate principal amount of the outstanding Notes may waive compliance with any provision of this Indenture,
the Notes or the Subsidiary Guarantees without notice to any other Holders.

 

(b)          Notwithstanding
Section 9.02(a), without the consent of each Holder affected, no amendment or waiver may:

 

(1)          change
the Stated Maturity of the principal of, or any installment of interest on, any Note;

 

(2)          reduce
the principal amount of, or premium, if any, or interest on, any Note;

 

    	 	45	 

     

    

 

(3)          change
the place of payment of principal of, or premium, if any, or interest on, any Note;

 

(4)          impair
the right to institute suit for the enforcement of any payment on or after the Stated Maturity (or, in the case of a redemption,
on or after the Redemption Date) of any Note;

 

(5)          reduce
the above-stated percentages of outstanding Notes the consent of whose Holders is necessary to modify or amend this Indenture;

 

(6)          waive
a default in the payment of principal of, premium, if any, or interest on the Notes;

 

(7)          voluntarily
release a Subsidiary Guarantor of the Notes, except as permitted by this Indenture;

 

(8)          reduce
the percentage or aggregate principal amount of outstanding Notes the consent of whose Holders is necessary for waiver of compliance
with Sections 6.02 and 6.04; or

 

(9)          modify
or change any provisions of this Indenture affecting the ranking of the Notes or the Subsidiary Guarantees in any manner adverse
to the Holders of the Notes.

 

(c)          It
shall not be necessary for the consent of the Holders under this Section to approve the particular form of any proposed amendment,
supplement or waiver but it shall be sufficient if such consent approves the substance thereof.

 

(d)          A
consent to any amendment, supplement or waiver under this Indenture by any Holder given in connection with an exchange (in the
case of an exchange offer) or a tender (in the case of a tender offer) of such Holder’s Notes will not be rendered invalid
by such tender or exchange.

 

(e)          After
an amendment, supplement or waiver under this Section 9.02 becomes effective, the Issuer shall mail to the Holders affected
thereby a notice briefly describing the amendment, supplement or waiver.  Any failure of the Issuer to mail such notice,
or any defect therein, shall not, however, in any way impair or affect the validity of any such amendment, supplement or waiver.

 

SECTION 9.03.                 Compliance
with the Trust Indenture Act.

 

From the date
on which this Indenture is qualified under the Trust Indenture Act, every amendment, waiver or supplement of this Indenture, the
Notes or the Subsidiary Guarantees shall comply with the Trust Indenture Act as then in effect.

 

    	 	46	 

     

    

 

SECTION 9.04.                 Revocation
and Effect of Consents.

 

Until an amendment,
waiver or supplement becomes effective, a consent to it by a Holder is a continuing consent by the Holder and every subsequent
Holder of a Note or portion of a Note that evidences the same debt as the consenting Holder’s Note, even if notation of
the consent is not made on any Note.  However, any such Holder or subsequent Holder may revoke the consent as to his
Note or portion of his Note by notice to the Trustee or the Issuer received before the date on which the Trustee receives an Officers’
Certificate certifying that the Holders of the requisite principal amount of Notes have consented (and not theretofore revoked
such consent) to the amendment, supplement or waiver.  

 

The Issuer may,
but shall not be obligated to, fix a record date for the purpose of determining the Holders entitled to consent to any amendment,
supplement or waiver, which record date shall be at least 30 days prior to the first solicitation of such consent.  If
a record date is fixed, then notwithstanding the last sentence of the immediately preceding paragraph, those Persons who were
Holders at such record date (or their duly designated proxies), and only those Persons, shall be entitled to revoke any consent
previously given, whether or not such Persons continue to be Holders after such record date.  No such consent shall
be valid or effective for more than 90 days after such record date.  The Issuer shall inform the Trustee in writing
of the fixed record date if applicable.

 

After an amendment,
supplement or waiver becomes effective, it shall bind every Holder, unless it makes a change described in any of clauses (1)
through (8) of Section 9.02(b), in which case, the amendment, supplement or waiver shall bind only each Holder of a Note
who has consented to it and every subsequent Holder of a Note or portion of a Note that evidences the same debt as the consenting
Holder’s Note; provided, however, that any such waiver shall not impair or affect the right of any Holder
to receive payment of principal of, and interest on, a Note, on or after the respective due dates therefor, or to bring suit for
the enforcement of any such payment on or after such respective dates without the consent of such Holder.

 

SECTION 9.05.                 Notation
on or Exchange of Notes.

 

If an amendment,
supplement or waiver changes the terms of a Note, the Issuer may require the Holder of the Note to deliver it to the Trustee.  The
Issuer shall provide the Trustee with an appropriate notation on the Note about the changed terms and cause the Trustee to return
it to the Holder at the Issuer’s expense.  Alternatively, if the Issuer or the Trustee so determines, the Issuer
in exchange for the Note shall issue, and the Trustee shall authenticate, a new Note that reflects the changed terms.  Failure
to make the appropriate notation or issue a new Note shall not affect the validity and effect of such amendment, supplement or
waiver.

 

SECTION
9.06.                 Trustee To Sign
Amendments, Etc.

 

The Trustee shall
execute any amendment, supplement or waiver authorized pursuant to this Article Nine; provided, however, that the
Trustee may, but shall not be obligated to, execute any such amendment, supplement or waiver which affects the Trustee’s
own rights, duties or immunities under this Indenture.  The Trustee shall be entitled to receive, and shall be fully
protected in relying upon, an Opinion of Counsel and an Officers’ Certificate each stating that the execution of any amendment,
supplement or waiver authorized pursuant to this Article Nine is authorized or permitted by this Indenture and constitutes legal,
valid and binding obligations of the Issuer enforceable in accordance with its terms.  Such Opinion of Counsel shall
be at the expense of the Issuer.

 

    	 	47	 

     

    

 

ARTICLE
Ten

 

SUBSIDIARY
GUARANTEE

 

SECTION 10.01.                 Guarantee.

 

Subject to this
Article Ten, each of the Subsidiary Guarantors hereby, jointly and severally, unconditionally guarantees to each Holder of
a Note authenticated and delivered by the Trustee and to the Trustee and its successors and assigns, irrespective of the validity
and enforceability of this Indenture, the Notes or the obligations of the Issuer hereunder or thereunder, that: (a) the principal
of and interest on the Notes will be promptly paid in full when due, whether at maturity, by acceleration, redemption or otherwise,
and interest on the overdue principal of and interest on the Notes, if any, if lawful, and all other obligations of the Issuer
to the Holders or the Trustee hereunder or thereunder will be promptly paid in full or performed, all in accordance with the terms
hereof and thereof; and (b) in case of any extension of time of payment or renewal of any Notes or any of such other obligations,
that same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether
at stated maturity, by acceleration or otherwise.  Failing payment when due of any amount so guaranteed or any performance
so guaranteed for whatever reason, the Subsidiary Guarantors shall be jointly and severally obligated to pay the same immediately.  Each
Subsidiary Guarantor agrees that this is a guarantee of payment and not a guarantee of collection.

 

The Subsidiary
Guarantors hereby agree that their obligations hereunder shall be unconditional, irrespective of the validity, regularity or enforceability
of the Notes or this Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the Notes
with respect to any provisions hereof or thereof, the recovery of any judgment against the Issuer, any action to enforce the same
or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a guarantor.  Each
Subsidiary Guarantor hereby waives, to the extent permitted by applicable law, diligence, presentment, demand of payment, filing
of claims with a court in the event of insolvency or bankruptcy of the Issuer, any right to require a proceeding first against
the Issuer, protest, notice and all demands whatsoever and covenant that this Note Guarantee shall not be discharged except by
complete performance of the obligations contained in the Notes and this Indenture.

 

If any Holder
or the Trustee is required by any court or otherwise to return to the Issuer, the Subsidiary Guarantors or any custodian, trustee,
liquidator or other similar official acting in relation to either the Issuer or the Subsidiary Guarantors, any amount paid by
either to the Trustee or such Holder, this Subsidiary Guarantee, to the extent theretofore discharged, shall be reinstated in
full force and effect.

 

    	 	48	 

     

    

 

Each Subsidiary
Guarantor agrees that it shall not be entitled to any right of subrogation in relation to the Holders in respect of any obligations
guaranteed hereby until payment in full of all obligations guaranteed hereby.  Each Subsidiary Guarantor further agrees
that, as between the Subsidiary Guarantors, on the one hand, and the Holders and the Trustee, on the other hand, (x) the maturity
of the obligations guaranteed hereby may be accelerated as provided in Article Six hereof for the purposes of this Subsidiary
Guarantee, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the obligations
guaranteed hereby, and (y) in the event of any declaration of acceleration of such obligations as provided in Article Six hereof,
such obligations (whether or not due and payable) shall forthwith become due and payable by the Subsidiary Guarantors for the
purpose of this Subsidiary Guarantee.  

 

SECTION 10.02.                 Limitation
on Subsidiary Guarantor Liability.

 

Each Subsidiary
Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that it is the intention of all such parties that the
Subsidiary Guarantee of such Subsidiary Guarantor not constitute a fraudulent transfer or conveyance for purposes of Bankruptcy
Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to the extent
applicable to any Subsidiary Guarantee.  To effectuate the foregoing intention, the Trustee, the Holders and the Subsidiary
Guarantors hereby irrevocably agree that the obligations of such Subsidiary Guarantor will, after giving effect to such maximum
amount and all other contingent and fixed liabilities of such Subsidiary Guarantor that are relevant under such laws, and after
giving effect to any collections from, rights to receive contribution from or payments made by or on behalf of any other Subsidiary
Guarantor in respect of the obligations of such other Subsidiary Guarantor under this Article Ten, result in the obligations of
such Subsidiary Guarantor under its Subsidiary Guarantee not constituting a fraudulent transfer or conveyance.  Each
Subsidiary Guarantor that makes a payment for distribution under its Subsidiary Guarantee is entitled to a contribution from each
other Subsidiary Guarantor in a pro rata amount based on the adjusted net assets of each Subsidiary Guarantor.

 

SECTION 10.03.                 Execution
and Delivery of Subsidiary Guarantee.

 

To evidence its
Subsidiary Guarantee set forth in Section 10.01, each Subsidiary Guarantor hereby agrees that a notation of such Subsidiary
Guarantee substantially in the form included in Exhibit C shall be endorsed by an Officer of such Subsidiary Guarantor
on each Note authenticated and delivered by the Trustee and that this Indenture shall be executed on behalf of such Subsidiary
Guarantor by an Officer.

 

Each Subsidiary
Guarantor hereby agrees that its Subsidiary Guarantee set forth in Section 10.01 shall remain in full force and effect notwithstanding
any failure to endorse on each Note a notation of such Subsidiary Guarantee.

 

If an Officer
whose signature is on this Indenture or on the Subsidiary Guarantee no longer holds that office at the time the Trustee authenticates
the Note on which a Subsidiary Guarantee is endorsed, the Subsidiary Guarantee shall be valid nevertheless.

 

    	 	49	 

     

    

 

The delivery of
any Note by the Trustee, after the authentication thereof hereunder, shall constitute due delivery of the Subsidiary Guarantee
set forth in this Indenture on behalf of the Subsidiary Guarantors.

 

SECTION 10.04.                 Release
of a Subsidiary Guarantor.

 

A Subsidiary Guarantor
shall be automatically and unconditionally released from its obligations under its Note Guarantee and its obligations under this
Indenture:

 

(1)          upon
any sale, exchange or transfer to a Person not an Affiliate of the Issuer of all of the Capital Stock held by the Issuer and its
Subsidiaries in, or all or substantially all of the assets of, such Subsidiary Guarantor;

 

(2)          upon
the liquidation or dissolution of such Subsidiary Guarantor; provided that no Default or Event of Default shall occur as
a result thereof;

 

(3)          if
the Issuer exercises its Legal Defeasance option under Section 8.02(b) or its Covenant Defeasance option under Section 8.02(c),
or if the Issuer’s obligations under this Indenture are discharged in accordance with Section 8.01; or

 

(4)          if
a Subsidiary Guarantor ceases to guarantee the obligations of the Issuer under any such Indebtedness of the Issuer that would
constitute Indebtedness under clauses (1) or (2) under the definition thereof in an amount at least equal to $50 million;

 

provided, however,
that in the case of clauses (1) and (2) above, (x) such sale or other disposition is made to a Person other than the Issuer or
any of its Subsidiaries and (y) such sale or disposition is otherwise permitted by this Indenture.  Upon any such occurrence
specified in this Section 10.04, at the Issuer’s request, and upon delivery to the Trustee of an Officers’ Certificate
and an Opinion of Counsel, each stating that all conditions precedent under the Indenture relating to such release have been complied
with, the Trustee shall execute any documents reasonably requested by the Issuer evidencing such release.  A Person
that has been released pursuant to this Section 10.04 shall cease to be a Subsidiary Guarantor for all purposes under this Indenture
from and after the date of such release unless and until such Person again becomes a Subsidiary Guarantor pursuant to Section
4.09.

 

Nothing contained
in this Indenture or in any of the Notes shall prevent any consolidation or merger of a Subsidiary Guarantor with or into the
Issuer (in which case such Subsidiary Guarantor shall no longer be a Subsidiary Guarantor) or another Subsidiary Guarantor or
shall prevent any sale or conveyance of the property of a Subsidiary Guarantor as an entirety or substantially as an entirety
to the Issuer or another Subsidiary Guarantor.

 

    	 	50	 

     

    

 

ARTICLE
Eleven

 

MISCELLANEOUS

 

SECTION 11.01.                 Trust
Indenture Act Controls.

 

If any provision
of this Indenture limits, qualifies, or conflicts with another provision which is required or deemed to be included in this Indenture
by the Trust Indenture Act, such required or deemed provision shall control.

 

SECTION 11.02.                 Notices.

 

Any notices or
other communications required or permitted hereunder shall be in writing, and shall be sufficiently given if made by hand delivery,
by telex, by nationally recognized overnight courier service, by telecopier or registered or certified mail, postage prepaid,
return receipt requested, addressed as follows:

 

if to the Issuer or a Subsidiary
Guarantor:

 

c/o Omega Healthcare Investors,
Inc.

200 International Circle,
Suite 3500

Hunt Valley, Maryland  21030

Attention: Robert O. Stephenson

 

Telephone:  (410)
427-1700

Facsimile:   (410)
427-8800

 

with a copy to:

 

Bryan Cave LLP

One Atlantic Center

Fourteenth Floor

1201 W. Peachtree Street,
NW

Atlanta, Georgia  30309-3471

Attention:  Eliot
Robinson

 

Telephone:  (404)
572-6600

Facsimile:   (404)
572-6999

 

    	 	51	 

     

    

 

if to the Trustee:

 

U.S. Bank National Association

Two Midtown Plaza

1349 W. Peachtree Street,
NW., Suite 1050

EX-GA-ATPT

Atlanta, Georgia 30309

Attention: Corporate Trust
Department

 

Telephone:  (404)
965 - 7218

Facsimile:   (404)
365 - 7946

 

Each of the Issuer
and the Trustee by written notice to each other such Person may designate additional or different addresses for notices to such
Person.  Any notice or communication to the Issuer and the Trustee, shall be deemed to have been given or made as of
the date so delivered if personally delivered; when replied to; when receipt is acknowledged, if telecopied; five (5) calendar
days after mailing if sent by registered or certified mail, postage prepaid (except that a notice of change of address shall not
be deemed to have been given until actually received by the addressee); and next Business Day if by nationally recognized overnight
courier service.

 

Any notice or
communication mailed to a Holder shall be mailed to him by first class mail or other equivalent means at his address as it appears
on the registration books of the Registrar and shall be sufficiently given to him if so mailed within the time prescribed.

 

Failure to mail
a notice or communication to a Holder or any defect in it shall not affect its sufficiency with respect to other Holders.  If
a notice or communication is mailed in the manner provided above, it is duly given, whether or not the addressee receives it.

 

SECTION 11.03.                 Communications
by Holders with Other Holders.

 

Holders may communicate
pursuant to Trust Indenture Act § 312(b) with other Holders with respect to their rights under this Indenture, the Notes
or the Subsidiary Guarantees.  The Issuer, the Trustee, the Registrar and any other Person shall have the protection
of Trust Indenture Act § 312(c).

 

SECTION 11.04.                 Certificate
and Opinion as to Conditions Precedent.

 

Upon any request
or application by the Issuer to the Trustee to take any action under this Indenture, the Issuer shall furnish to the Trustee at
the request of the Trustee:

 

(1)          an
Officers’ Certificate, in form and substance satisfactory to the Trustee, stating that, in the opinion of the signers, all
conditions precedent to be performed or effected by the Issuer, if any, provided for in this Indenture relating to the proposed
action have been complied with; and

 

(2)          an
Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent have been complied with.

 

    	 	52	 

     

    

 

SECTION 11.05.                 Statements
Required in Certificate or Opinion.

 

Each certificate
or opinion with respect to compliance with a condition or covenant provided for in this Indenture, other than the Officers’
Certificate required by Section 4.05, shall include:

 

(1)          a
statement that the Person making such certificate or opinion has read such covenant or condition;

 

(2)          a
brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained
in such certificate or opinion are based;

 

(3)          a
statement that, in the opinion of such Person, he has made such examination or investigation as is necessary to enable him to
express an informed opinion as to whether or not such covenant or condition has been complied with or satisfied; and

 

(4)          a
statement as to whether or not, in the opinion of each such Person, such condition or covenant has been complied with; provided,
however, that with respect to matters of fact, an Opinion of Counsel may rely on an Officers’ Certificate or certificates
of public officials.

 

SECTION 11.06.                 Rules
by Paying Agent or Registrar.

 

The Paying Agent
or Registrar may make reasonable rules and set reasonable requirements for their functions.

 

SECTION 11.07.                 Legal
Holidays.

 

If a payment date
is not a Business Day, payment may be made on the next succeeding day that is a Business Day.

 

SECTION 11.08.                 Governing
Law.

 

This Indenture,
the Notes and the Subsidiary Guarantees will be governed by and construed in accordance with the laws of the State of New York.

 

SECTION 11.09.                 No
Adverse Interpretation of Other Agreements.

 

This Indenture
may not be used to interpret another indenture, loan or debt agreement of any of the Issuer or any of its Subsidiaries.  Any
such indenture, loan or debt agreement may not be used to interpret this Indenture.

 

SECTION 11.10.                 No
Recourse Against Others.

 

No director, officer,
employee, incorporator, stockholder, member or manager or controlling person of the Issuer or any Subsidiary Guarantor shall have
any liability for any obligations of the Issuer under the Notes or this Indenture or of any Subsidiary Guarantor under its Subsidiary
Guarantee or the Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation.  Each
Holder of Notes by accepting a Note waives and releases all such liability.  Such waiver and release are part of the
consideration for issuance of the Notes.

 

    	 	53	 

     

    

 

SECTION 11.11.                 Successors.

 

All agreements
of the Issuer and the Subsidiary Guarantors in this Indenture, the Notes and the Note Guarantees shall bind their respective successors.  All
agreements of the Trustee in this Indenture shall bind its successor.

 

SECTION 11.12.                 Duplicate
Originals.

 

All parties may
sign any number of copies of this Indenture.  Each signed copy or counterpart shall be an original, but all of them
together shall represent the same agreement.

 

SECTION 11.13.                 Severability.

 

To the extent
permitted by applicable law, in case any one or more of the provisions in this Indenture, in the Notes or in the Subsidiary Guarantees
shall be held invalid, illegal or unenforceable, in any respect for any reason, the validity, legality and enforceability of any
such provision in every other respect and of the remaining provisions shall not in any way be affected or impaired thereby, it
being intended that all of the provisions hereof shall be enforceable to the full extent permitted by law.

 

    	 	54	 

     

    

 

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

 

	 	OMEGA HEALTHCARE INVESTORS, INC.,
	 	as Issuer
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

[Signature
Page to Indenture]

 

    	 	 	 

     

    

  

	 	[LIST SUBSIDIARY GUARANTORS].
	 	 
	 	as Subsidiary Guarantors
	 	 	 	 
	 	 	By:	 
	 	 	 	Name:
	 	 	 	Title:

 

[Signature Page
to Indenture]

 

    	 	 	 

     

    

 

	 	U.S. BANK NATIONAL ASSOCIATION,
	 	as Trustee
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

[Signature Page
to Indenture]

 

    	 	 	 

     

    

 

EXHIBIT A

 

[Insert the Global Note Legend,
if applicable pursuant to the provisions of the Indenture]

 

OMEGA HEALTHCARE
INVESTORS, INC.

[•]% Senior
Notes due [•]

 

CUSIP No.                 

	No.  [        ]	$

 

OMEGA HEALTHCARE
INVESTORS, INC., a Maryland corporation (the “Issuer”), for value received promises to pay to Cede & Co.,
or its registered assigns, the principal sum of [     ] DOLLARS [or such other amount as is provided
in a schedule attached hereto]a on [•].

 

Interest Payment
Dates: [•]and [•], commencing [•].

 

Record Dates:  [•]and
[•].

 

Reference is made
to the further provisions of this Note contained herein, which will for all purposes have the same effect as if set forth at this
place.

 

 

		a	This
                                         language should be included only if the Note is issued in global form.

 

    	 	A-1	 

     

    

 

IN WITNESS WHEREOF,
the Issuer has caused this Note to be signed manually or by facsimile by its duly authorized officer.

 

Dated:

 

	 	OMEGA HEALTHCARE INVESTORS, INC., as Issuer
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 	A-2	 

     

    

 

[FORM OF] TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

 

This is one of
the [•]% Senior Notes due [•] described in the within-mentioned Indenture.

 

Dated:

 

	 	U.S. BANK NATIONAL ASSOCIATION,
	 	as Trustee
	 	 	 
	 	By:	 
	 	 	Authorized Signatory

 

    	 	A-3	 

     

    

 

(Reverse of
Note)

 

[•]% Senior
Notes due [•]

 

Capitalized terms
used herein shall have the meanings assigned to them in the Indenture referred to below unless otherwise indicated.

 

SECTION 1.   Interest.  Omega
Healthcare Investors, Inc., a Maryland corporation (the “Issuer”) promises to pay interest on the principal
amount of this Note at [•]% per annum from [•] until maturity.  The Issuer will pay interest semi-annually
on [•] and [•] of each year, or if any such day is not a Business Day, on the next succeeding Business Day (each an
“Interest Payment Date”), commencing [•].  Interest on the Notes will accrue from the most recent
date to which interest has been paid or, if no interest has been paid, from [•].  The Issuer shall pay interest
(including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal and premium, if any, from time
to time on demand to the extent lawful at the interest rate applicable to the Notes; it shall pay interest (including post-petition
interest in any proceeding under any Bankruptcy Law) on overdue installments of interest (without regard to any applicable grace
periods) from time to time on demand at the same rate to the extent lawful.  Interest will be computed on the basis
of a 360-day year of twelve 30-day months.

 

SECTION 2.   Method
of Payment.  The Issuer will pay interest on the Notes to the Persons who are registered Holders of Notes at the
close of business on [•] or [•] next preceding the Interest Payment Date, even if such Notes are canceled after such
record date and on or before such Interest Payment Date, except as provided in Section 2.12 of the Indenture with respect
to defaulted interest.  The Notes will be issued in denominations of $2,000 and integral multiples of $1,000 in excess
thereof.  The Issuer shall pay principal, premium, if any, and interest on the Notes in such coin or currency of the
United States of America as at the time of payment is legal tender for payment of public and private debts (“U.S. Legal
Tender”).  Principal of, premium, if any, and interest on the Notes will be payable at the office or agency
of the Issuer maintained for such purpose except that, at the option of the Issuer, the payment of interest may be made by check
mailed to the Holders of the Notes at their respective addresses set forth in the register of Holders of Notes.  Until
otherwise designated by the Issuer, the Issuer’s office or agency in New York will be the office of the Trustee maintained
for such purpose.  

 

SECTION 3.   Paying
Agent and Registrar.  Initially, U.S. Bank National Association, the Trustee under the Indenture, will act as Paying
Agent and Registrar.  The Issuer may change any Paying Agent or Registrar without notice to any Holder.  Except
as provided in the Indenture, the Issuer or any of their Subsidiaries may act in any such capacity.

 

SECTION 4.   Indenture.  The
Issuer issued the Notes under an Indenture dated as of [ • ] (“Indenture”) by and among the Issuer,
the Subsidiary Guarantors and the Trustee.  The terms of the Notes include those stated in the Indenture and those made
part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code §§ 77aaa-77bbbb)
(the “Trust Indenture Act”).  The Notes are subject to all such terms, and Holders are referred to
the Indenture and the Trust Indenture Act for a statement of such terms.

 

    	 	A-4	 

     

    

 

SECTION 5.   Optional
Redemption.  The Notes will be redeemable at the option of the Issuer, in whole or in part, at any time, and from
time to time, upon not less than 30 days’ nor more than 60 days’ notice.  If the Notes are redeemed prior
to [•], the Redemption Price will be equal to the greater of:

 

(a)          100%
of the principal amount of the Notes to be redeemed, and

 

(b)          the
sum of the present values of the remaining scheduled payments of principal and interest on the Notes to be redeemed (exclusive
of interest accrued to the applicable Redemption Date) discounted to such Redemption Date on a semiannual basis, assuming a 360-day
year consisting of twelve 30-day months, at the Treasury Rate plus [ • ] basis points (the “Applicable Premium”),

 

plus, in each case of clauses (a)
and (b) above, accrued and unpaid interest thereon to, but not including, the applicable Redemption Date; provided, however,
that if the Redemption Date falls after the Record Date and on or prior to the corresponding Interest Payment Date, the Issuer
will pay the full amount of accrued and unpaid interest, if any, on such Interest Payment Date to the Holder of Notes at the close
of business on the corresponding Record Date (instead of the holder surrendering its Notes for redemption).

 

If the Notes are
redeemed on or after [•], the Redemption Price will be equal to 100% of the principal amount of the Notes being redeemed,
plus accrued and unpaid interest thereon to, but not including, such Redemption Date.

 

“Treasury
Rate” means (1) the yield, under the heading which represents the average for the immediately preceding week, appearing
in the most recently published statistical release designated “H.15(519)” or any successor publication which is published
weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded United States Treasury
securities adjusted to constant maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding
to the Comparable Treasury Issue (if no maturity is within three months before or after the remaining life of the Notes, yields
for the two published maturities most closely corresponding to the Comparable Treasury Issue will be determined and the Treasury
Rate will be interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest month), or (2) if
such release (or any successor release) is not published during the week preceding the calculation date or does not contain such
yields, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated
using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury
Price for the applicable Redemption Date.  The Treasury Rate shall be calculated on the third Business Day preceding
the applicable Redemption Date.

 

“Comparable
Treasury Issue” means, with respect to any Redemption Date for the Notes, the United States Treasury security selected
by the Independent Investment Banker as having an actual or interpolated maturity comparable to the remaining term of the Notes
to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing
new issues of corporate debt securities of comparable maturity to the remaining term of the Notes to be redeemed.

 

    	 	A-5	 

     

    

 

“Comparable
Treasury Price” means, with respect to any Redemption Date for the Notes:

 

(i)          the
average of five Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest such Reference
Treasury Dealer Quotations, or

 

(ii)          if
the Issuer obtains fewer than five but more than one such Reference Treasury Dealer Quotations for such Redemption Date, the average
of all such quotations, or

 

(iii)          if
the Issuer obtains only one such Reference Treasury Dealer Quotation for such Redemption Date, that Reference Treasury Dealer
Quotation.

 

“Independent
Investment Banker” means, with respect to any Redemption Date for the Notes, an independent investment banking institution
of national standing appointed by the Issuer with respect to such Redemption Date.

 

“Reference
Treasury Dealer” means (1) [ • ] and [ • ] and (2) any [three] other Primary Treasury Dealers
selected by the Issuer; provided, however, that if any Reference Treasury Dealers referred to in clause (1) above
ceases to be a primary U.S. Government securities dealer (a “Primary Treasury Dealer”), the Issuer will substitute
therefor another Primary Treasury Dealer.

 

“Reference
Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date for the Notes,
the average, as determined by the Issuer, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case
as a percentage of its principal amount) quoted in writing to the Trustee by such Reference Treasury Dealer at 3:30 p.m., New
York City time, on the third Business Day preceding the applicable redemption date.

 

SECTION 6.   [Reserved].  

 

SECTION 7.   Notice
of Redemption.  Notice of redemption will be mailed by first class mail at least 30 days but not more than 60 days
before the redemption date to each Holder of Notes to be redeemed at its registered address.  Notes in denominations
larger than $2,000 may be redeemed in part.  If any Note is to be redeemed in part only, the notice of redemption that
relates to such Note shall state the portion of the principal amount thereof to be redeemed.  A new Note in principal
amount equal to the unredeemed portion thereof will be issued in the name of the Holder thereof upon cancellation of the original
Note.  On and after the Redemption Date interest ceases to accrue on Notes or portions thereof called for redemption.

 

SECTION 8.   Mandatory
Redemption.  The Issuer shall not be required to make mandatory redemption payments with respect to the Notes.

 

    	 	A-6	 

     

    

 

SECTION 9.   Additional
Notes.  The Issuer may, from time to time, without the consent of the Holders of the Notes, create and issue additional
notes (the “Additional Notes”) ranking pari passu with the Initial Notes in all respects (or in all respects
except for the public offering price of the Additional Notes, the issue date thereof, the payment of interest accruing on the
Additional Notes prior to the issue date thereof or except for the first payment of interest on the Additional Notes following
the issue date thereof).  The Additional Notes shall be treated as a single class with the Initial Notes and have the
same terms as to status, redemption or otherwise as the Initial Notes, provided that if such Additional Notes are not fungible
with the Initial Notes for U.S. federal income tax purposes, such Additional Notes will have a separate CUSIP or ISIN number.

 

SECTION 10.   Denominations,
Transfer, Exchange.  The Notes are in registered form without coupons in denominations of $2,000 and integral multiples
of $1,000 in excess thereof.  The transfer of Notes may be registered and Notes may be exchanged as provided in the
Indenture.  The Registrar and the Trustee may require a Holder, among other things, to furnish appropriate endorsements
and transfer documents and the Issuer may require a Holder to pay any taxes and fees required by law or permitted by the Indenture.  The
Issuer and the Registrar are not required to transfer or exchange any Note selected for redemption.  Also, the Issuer
and the Registrar are not required to transfer or exchange any Notes for a period of 15 days before a selection of Notes to be
redeemed.

 

SECTION 11.   Persons
Deemed Owners.  The registered Holder of a Note may be treated as its owner for all purposes.

 

SECTION 12.   Amendment,
Supplement and Waiver.  Subject to certain exceptions set forth in the Indenture, the Indenture, the Notes and the
Subsidiary Guarantees may be amended or supplemented with the written consent of the Holders of at least a majority in aggregate
principal amount of the Notes then outstanding, and any existing Default or compliance with any provision may be waived with the
consent of the Holders of a majority in aggregate principal amount of the Notes then outstanding.  Without notice to
or consent of any Holder, the parties thereto may also amend or supplement the Indenture, the Notes and the Subsidiary Guarantees
under the limited circumstances provided in the Indenture.

 

SECTION 13.   Defaults
and Remedies.  If a Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount
of the then outstanding Notes generally may declare all the Notes to be due and payable immediately.  Notwithstanding
the foregoing, in the case of a Default arising from certain events of bankruptcy or insolvency as set forth in the Indenture,
with respect to the Issuer, all outstanding Notes will become due and payable without further action or notice.  Holders
of the Notes may not enforce the Indenture or the Notes except as provided in the Indenture.  Subject to certain limitations,
Holders of a majority in principal amount of the then outstanding Notes may direct the Trustee in its exercise of any trust or
power.  The Trustee may withhold from Holders of the Notes notice of any continuing Default if it determines that withholding
notice is in their interest.  The Holders of a majority in aggregate principal amount of the Notes then outstanding
by notice to the Trustee may on behalf of the Holders of all of the Notes waive any existing Default and its consequences under
the Indenture except a continuing Default in the payment of interest on, or the principal of, or the premium on, the Notes.

 

    	 	A-7	 

     

    

 

SECTION 14.   Restrictive
Covenants.  The Indenture contains certain covenants that, among other things, limit the ability of the Issuer and
its Subsidiaries to incur indebtedness or to consolidate, merge or sell all or substantially all of its assets, and require the
Issuer and its Subsidiaries, on a consolidated basis, to maintain a minimum ratio of Total Unencumbered Assets to Unsecured Indebtedness.  The
limitations are subject to a number of important qualifications and exceptions.  The Issuer must annually report to
the Trustee on compliance with such limitations and other provisions in the Indenture.

 

SECTION 15.   No
Recourse Against Others.  No director, officer, employee, incorporator, stockholder, member or manager or controlling
person of the Issuer or any Subsidiary Guarantor shall have any liability for any obligations of the Issuer under the Notes or
the Indenture, or of any Subsidiary Guarantor under its Subsidiary Guarantee or the Indenture or for any claim based on, in respect
of, or by reason of, such obligations or their creation.  Each Holder of Notes by accepting a Note waives and releases
all such liability.  The waiver and release are part of the consideration for issuance of the Notes.

 

SECTION 16.   Subsidiary
Guarantees.  This Note will be entitled to the benefits of certain Subsidiary Guarantees made for the benefit of
the Holders.  Reference is hereby made to the Indenture for a statement of the respective rights, limitations of rights,
duties and obligations thereunder of the Subsidiary Guarantors, the Trustee and the Holders.

 

SECTION 17.   Trustee
Dealings with the Issuer.  Subject to certain terms, the Trustee under the Indenture, in its individual or any other
capacity, may become the owner or pledgee of Notes and may otherwise deal with the Issuer, their Subsidiaries or their respective
Affiliates as if it were not the Trustee.

 

SECTION 18.   Authentication.  This
Note shall not be valid until authenticated by the manual signature of the Trustee or an authenticating agent.

 

SECTION 19.   Abbreviations.  Customary
abbreviations may be used in the name of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by
the entirety), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A
(= Uniform Gifts to Minors Act).

 

SECTION 20.   CUSIP
and ISIN Numbers.  Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Issuer has caused CUSIP and ISIN numbers to be printed on the Notes and the Trustee may use CUSIP or ISIN numbers
in notices of redemption as a convenience to Holders.  No representation is made as to the accuracy of such numbers
either as printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other identification
numbers placed thereon.

 

SECTION 21.   Governing
Law.  This Note shall be governed by, and construed in accordance with, the laws of the State of New York.

 

The Issuer will
furnish to any Holder upon written request and without charge a copy of the Indenture.

 

    	 	A-8	 

     

    

 

ASSIGNMENT FORM

 

I or we assign and transfer this
Note to

 

	 
	 
	 

(Print or type name, address and
zip code of assignee or transferee)

 

	 

(Insert Social Security or other
identifying number of assignee or transferee)

 

and irrevocably appoint _______________________________________
agent to transfer this Note on the books of the Issuer.  The agent may substitute another to act for him.

 

	Dated:  _________________	Signed: __________________________________

               (Sign
        exactly as name appears on

               the
        other side of this Note)

 

	Signature Guarantee:	___________________________________________

        Participant in a recognized
        Signature Guarantee

        Medallion Program (or other signature guarantor

        program reasonably acceptable to the Trustee)

 

    	 	A-9	 

     

    

 

SCHEDULE OF
PRINCIPAL AMOUNTb

 

The initial principal
amount at maturity of this Global Note shall be $         . The following decreases/increases in the principal amount at maturity of this
Global Note have been made:

 

	Date of

    Decrease/Increase		Amount of decrease

    in Principal Amount

    of this Global Note		Amount of increase in

    Principal Amount of

    this Global Note		Principal Amount of

    this Global Note

    following such

    decrease (or increase)		Signature of

    authorized officer of

    Trustee or Note

    Custodian
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

  

 

		b	This
                                         schedule should be included only if the Note is issued in global form.

 

    	 	A-10	 

     

    

 

EXHIBIT B

 

FORM OF LEGENDS

 

Each Global Note
authenticated and delivered hereunder shall bear the following legend:

 

THIS
NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY
OR A NOMINEE OF A DEPOSITORY OR A SUCCESSOR DEPOSITORY IN CUSTODY FOR THE BENEFICIAL OWNERS HEREOF.

 

THIS
NOTE IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (A) THE TRUSTEE OR THE REGISTRAR MAY MAKE SUCH NOTATIONS
HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.02 OF THE INDENTURE, (B) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN
PART PURSUANT TO SECTION 2.15(b) OF THE INDENTURE, (C) EXCEPT AS OTHERWISE PROVIDED IN SECTION 2.15(b) OF THE INDENTURE, THIS
GLOBAL NOTE MAY BE TRANSFERRED IN WHOLE, BUT NOT IN PART, ONLY (X) BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY, (Y) BY A
NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY OR (Z) BY THE DEPOSITORY OR ANY NOMINEE TO A
SUCCESSOR DEPOSITORY OR TO A NOMINEE OF SUCH SUCCESSOR DEPOSITORY, AND (D) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR
CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE.

 

UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
AN INTEREST HEREIN.

 

    	 	B-1	 

     

    

 

EXHIBIT C

 

SUBSIDIARY GUARANTEE

 

For value received,
each of the undersigned (including any successor Person under the Indenture) hereby unconditionally guarantees, jointly and severally,
to the extent set forth in the Indenture (as defined below) to the Holder of this Note the payment of principal, premium, if any,
and interest on this Note in the amounts and at the times when due and interest on the overdue principal, premium, if any, and
interest, if any, of this Note when due, if lawful, and, to the extent permitted by law, the payment or performance of all other
obligations of the Issuer under the Indenture or the Notes, to the Holder of this Note and the Trustee, all in accordance with
and subject to the terms and limitations of this Note, the Indenture, including Article Ten thereof, and this Subsidiary Guarantee.  This
Subsidiary Guarantee will become effective in accordance with Article Ten of the Indenture and its terms shall be evidenced therein.  The
validity and enforceability of any Subsidiary Guarantee shall not be affected by the fact that it is not affixed to any particular
Note.

 

Capitalized terms
used but not defined herein shall have the meanings ascribed to them in the Indenture dated as of [ • ], among Omega
Healthcare Investors, Inc., a Maryland corporation (the “Issuer”), the Subsidiary Guarantors named therein
and U.S. Bank National Association, as trustee (the “Trustee”), as amended or supplemented (the “Indenture”).

 

The obligations
of the undersigned to the Holders of Notes and to the Trustee pursuant to this Subsidiary Guarantee and the Indenture are expressly
set forth in Article Ten of the Indenture and reference is hereby made to the Indenture for the precise terms of the Subsidiary
Guarantee and all of the other provisions of the Indenture to which this Subsidiary Guarantee relates.

 

No director, officer,
employee, incorporator, stockholder, member or manager or controlling person of any Subsidiary Guarantor, as such, shall have
any liability for any obligations of such Subsidiary Guarantor under such Subsidiary Guarantor’s Subsidiary Guarantee or
the Indenture or for any claim based on, in respect of, or by reason of, such obligation or its creation.

 

This Subsidiary
Guarantee shall be governed by, and construed in accordance with, the laws of the State of New York.

 

This Subsidiary
Guarantee is subject to release upon the terms set forth in the Indenture.

 

    	 	C-1	 

     

    

 

IN WITNESS WHEREOF,
each Subsidiary Guarantor has caused its Subsidiary Guarantee to be duly executed.

 

Date:

 

	 	[                  ]
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 	C-2Exhibit 10.1

 

EXECUTION VERSION

	
 
    

 

 

LOAN AGREEMENT

 

dated as of

 

December 17, 2015

 

among

 

HAMILTON FINANCE LLC

 

the Financing Providers party hereto

 

the Collateral Administrator, Collateral Agent and Securities Intermediary party hereto

 

JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,

as Administrative Agent

 

	
 
    

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
ARTICLE I
    	
THE PORTFOLIO   INVESTMENTS
    	
23
    
	
 
    	
 
    	
 
    
	
Section 1.01.
    	
Purchases   of Portfolio Investments
    	
23
    
	
Section 1.02.
    	
Procedures   for Purchases, Substitutions and Related Financings
    	
23
    
	
Section 1.03.
    	
Conditions   to Purchases or Substitutions
    	
24
    
	
Section 1.04.
    	
Sales   of Portfolio Investments
    	
25
    
	
Section 1.05.
    	
Review   of Portfolio Investments
    	
27
    
	
Section 1.06.
    	
Substitutions
    	
28
    
	
Section 1.07.
    	
Repurchase   Limits
    	
28
    
	
Section 1.08.
    	
Deposits   and Contributions by Parent
    	
28
    
	
Section 1.09.
    	
Valuation   of Permitted Non-USD Currency Assets
    	
29
    
	
 
    	
 
    	
 
    
	
ARTICLE II
    	
THE FINANCINGS
    	
29
    
	
 
    	
 
    	
 
    
	
Section 2.01.
    	
Financing   Commitments
    	
29
    
	
Section 2.02.
    	
First   Advance; Additional Advances
    	
29
    
	
Section 2.03.
    	
Financings;   Use of Proceeds
    	
29
    
	
Section 2.04.
    	
Other   Conditions to Financings
    	
31
    
	
 
    	
 
    	
 
    
	
ARTICLE III
    	
ADDITIONAL TERMS   APPLICABLE TO THE FINANCINGS
    	
32
    
	
 
    	
 
    	
 
    
	
Section 3.01.
    	
The Advances
    	
32
    
	
Section 3.02.
    	
General
    	
35
    
	
Section 3.03.
    	
Taxes
    	
35
    
	
Section 3.04.
    	
Mitigation Obligations
    	
39
    
	
 
    	
 
    	
 
    
	
ARTICLE IV
    	
COLLECTIONS AND   PAYMENTS
    	
40
    
	
 
    	
 
    	
 
    
	
Section 4.01.
    	
Interest Proceeds
    	
40
    
	
Section 4.02.
    	
Principal Proceeds
    	
41
    
	
Section 4.03.
    	
Principal and Interest   Payments; Prepayments; Commitment Fee; Upfront Fee
    	
41
    
	
Section 4.04.
    	
Payments Generally
    	
43
    
	
Section 4.05.
    	
CE Cure Account
    	
43
    
	
Section 4.06.
    	
Optional Redemption
    	
44
    

 

i

 

TABLE OF CONTENTS

(continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
ARTICLE V
    	
[RESERVED]
    	
44
    
	
 
    	
 
    	
 
    
	
ARTICLE VI
    	
REPRESENTATIONS,   WARRANTIES AND COVENANTS
    	
44
    
	
 
    	
 
    	
 
    
	
Section 6.01.
    	
Representations and   Warranties
    	
44
    
	
Section 6.02.
    	
Representations   Regarding the Portfolio Investments
    	
48
    
	
Section 6.03.
    	
Covenants of the   Company
    	
48
    
	
Section 6.04.
    	
Amendments, Etc.
    	
56
    
	
 
    	
 
    	
 
    
	
ARTICLE VII
    	
EVENTS OF DEFAULT
    	
56
    
	
 
    	
 
    	
 
    
	
ARTICLE VIII
    	
ACCOUNTS; COLLATERAL   SECURITY
    	
58
    
	
 
    	
 
    	
 
    
	
Section 8.01.
    	
The Accounts; Agreement   as to Control
    	
58
    
	
Section 8.02.
    	
Collateral Security;   Pledge; Delivery
    	
61
    
	
Section 8.03.
    	
Accountings
    	
64
    
	
Section 8.04.
    	
Additional Reports
    	
65
    
	
 
    	
 
    	
 
    
	
ARTICLE IX
    	
THE AGENTS
    	
65
    
	
 
    	
 
    	
 
    
	
Section 9.01.
    	
Appointment of   Administrative Agent, Collateral Agent, Collateral Administrator and Securities   Intermediary
    	
65
    
	
Section 9.02.
    	
Additional Provisions   Relating to the Collateral Agent and the Collateral Administrator
    	
69
    
	
 
    	
 
    	
 
    
	
ARTICLE X
    	
MISCELLANEOUS
    	
73
    
	
 
    	
 
    	
 
    
	
Section 10.01.
    	
Non-Petition
    	
73
    
	
Section 10.02.
    	
Notices
    	
73
    
	
Section 10.03.
    	
No Waiver
    	
73
    
	
Section 10.04.
    	
Expenses; Indemnity;   Damage Waiver
    	
73
    
	
Section 10.05.
    	
Amendments
    	
75
    
	
Section 10.06.
    	
Confidentiality
    	
75
    
	
Section 10.07.
    	
Non-Recourse
    	
76
    
	
Section 10.08.
    	
Successors; Assignments
    	
76
    
	
Section 10.09.
    	
Governing Law;   Submission to Jurisdiction; Etc.
    	
78
    
	
Section 10.10.
    	
Right of Setoff
    	
79
    
	
Section 10.11.
    	
Interest Rate   Limitation
    	
79
    

 

ii

 

TABLE OF CONTENTS

(continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
Section 10.12.
    	
USA PATRIOT Act
    	
79
    
	
Section 10.13.
    	
Counterparts
    	
79
    
	
Section 10.14.
    	
Headings
    	
80
    

 

iii

 

	
Schedules
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Schedule 1
    	
 
    	
Transaction Schedule
    
	
Schedule 2
    	
 
    	
Contents of Approval Requests
    
	
Schedule 3
    	
 
    	
Eligibility Criteria
    
	
Schedule 4
    	
 
    	
Concentration Limitations
    
	
Schedule 5
    	
 
    	
Form of Position Report
    
	
 
    	
 
    	
 
    
	
Exhibit
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Exhibit A
    	
 
    	
Form of Request for Advance
    
	
Exhibit B
    	
 
    	
Moody’s Industry Classification Groups
    

 

iv

 

LOAN AGREEMENT dated as of December 17, 2015 (this “Agreement”) among Hamilton Finance LLC, a Delaware limited liability company, as borrower (the “Company”); the Financing Providers party hereto; U.S. Bank National Association (“U.S. Bank”), in its capacities as collateral agent (in such capacity, the “Collateral Agent”), collateral administrator (in such capacity, the “Collateral Administrator”) and securities intermediary (in such capacity, the “Securities Intermediary”); and JPMorgan Chase Bank, National Association, as administrative agent for the Financing Providers hereunder (in such capacity, the “Administrative Agent”).

 

The Company, a newly formed special purpose vehicle wholly owned and managed by Carey Credit Income Fund, which in turn is advised by Carey Credit Advisors, LLC and sub-advised by Guggenheim Partners Investment Management, LLC, wishes to accumulate certain loans and other debt securities (the “Portfolio Investments”), all on and subject to the terms and conditions set forth herein.

 

On and subject to the terms and conditions set forth herein, JPMorgan Chase Bank, National Association (“JPMCB”) has agreed to make advances to the Company (“Advances”) hereunder to the extent specified on the transaction schedule attached as Schedule 1 hereto (the “Transaction Schedule”).  JPMCB, together with its respective successors and permitted assigns, are referred to herein as the “Financing Providers”, and the types of financings to be made available by them hereunder are referred to herein as the “Financings”.  For the avoidance of doubt, the terms of this Agreement relating to types of Financings not indicated on the Transaction Schedule as being available hereunder shall not bind the parties hereto, and shall be of no force and effect.

 

Furthermore, on or about the date hereof, the Company intends to acquire certain Portfolio Investments pursuant to a Sale and Contribution Agreement (the “Sale Agreement”), dated on or about the date hereof, between the Company and Carey Credit Income Fund (the “Parent”).

 

Accordingly, the parties hereto agree as follows:

 

Defined Terms

 

Except as otherwise provided in this Agreement, whenever used herein, the following words and phrases, unless the context otherwise requires, shall have the following meanings

 

“Account Bank” means Elavon Financial Services Limited, UK Branch, in its capacity as account bank under the Custody and Account Bank Agreement.

 

“Accounts” has the meaning ascribed to it in Section 8.01(a).

 

“Administrative Agent” has the meaning ascribed to it in the preamble.

 

“Advances” has the meaning ascribed to it in the preamble.

 

1

 

“Adverse Claim” means any claim of ownership or any Lien, title retention, trust or other charge or encumbrance, or other type of preferential arrangement having the effect or purpose of creating a Lien, other than Permitted Liens.

 

“Adverse Proceeding” means any action, suit, proceeding (whether administrative, judicial or otherwise), governmental investigation or arbitration (whether or not purportedly on behalf of Company) at law or in equity, or before or by any governmental authority, domestic or foreign, whether pending, active or, to the Company’s knowledge, threatened against or affecting the Company or its property that could reasonably be expected to result in a Material Adverse Effect.

 

“Affiliate” means, with respect to any Person, any Person directly or indirectly controlling, controlled by, or under common control with, such Person (whether by virtue of ownership, contractual rights or otherwise).  For the purposes of this definition, “control” shall mean the possession, directly or indirectly (including through affiliated entities), of the power to direct or cause the direction of the management or policies of a Person, whether through the ownership of voting securities, by contract or otherwise, and the terms “controlling” and “controlled” shall have meanings correlative thereto.

 

“Agent” has the meaning ascribed to it in Section 9.01.

 

“Agent Business Day” means any day on which commercial banks and foreign exchange markets settle payments in each of New York City and the city in which the corporate trust office of the Collateral Agent is located.

 

“Agreement” has the meaning ascribed to it in the preamble.

 

“Amendment” has the meaning ascribed to it in Section 6.04.

 

“Annual Cap” has the meaning ascribed to it in Section 9.02(e).

 

“Anti-Corruption Laws” means all laws, rules, and regulations of any jurisdiction applicable to the Company from time to time concerning or relating to bribery or corruption.

 

“Applicable Law” means, for any Person, all existing and future laws, rules, regulations (including temporary and final income tax regulations), statutes, treaties, codes, ordinances, permits, certificates, orders, licenses of and interpretations by any Governmental Authority applicable to such Person and applicable judgments, decrees, injunctions, writs, awards or orders of any court, arbitrator or other administrative, judicial, or quasi-judicial tribunal or agency of competent jurisdiction.

 

“Applicable Margin” means 2.65%.

 

“Approval Request” has the meaning ascribed to it in Section 1.02(a).

 

“Approved” means, with respect to an Approval Request relating to any Portfolio Investment for which the Administrative Agent has received all requested follow-up information, within ten (10) Business Days succeeding the latest date on which it received such Approval

 

2

 

Request or follow-up information it has requested, the Administrative Agent has notified the Investment Manager and the Company that the Administrative Agent is approving the purchase of such Portfolio Investment.  For the avoidance of doubt, an Approval Request shall not be deemed “not Approved” until such ten (10) Business Day period has elapsed.

 

“Base Rate” shall mean, for any day, a rate per annum equal to the greater of (a) the Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in effect on such day plus 0.5%.  Any change in the Base Rate due to a change in the Prime Rate or the Federal Funds Effective Rate shall be effective from and including the effective date of such change in the Prime Rate or the Federal Funds Effective Rate, respectively.

 

“Business Day” means any day on which commercial banks are open in New York City; provided that (i) with respect to any provisions herein relating to the setting of LIBOR or the payment or conversion of amounts denominated in GBP, “Business Day” shall be deemed to exclude any day on which banks are required or authorized to be closed in London, England and (ii) with respect to any provisions herein relating to the conversion of amounts denominated in Euros, Business Day shall be deemed to exclude any day on which banks are required or authorized to be closed in London, England or which is not a TARGET2 Settlement Day.

 

“Calculation Period” means the period from the date on which the First Advance is made hereunder to but excluding March 17, 2016, and each successive quarterly period ending on June 17, September 17, December 17 and March 17 of each year during the term of this Agreement (or, (i) if such date is not a Business Day, then the prior Business Day, and (ii) in the case of the last Calculation Period, if the last Calculation Period does not end on a Calculation Period Start Date, the period from and including the preceding Calculation Period Start Date to but excluding the Maturity Date).

 

“Calculation Period Start Date” means a quarterly anniversary of the date of the First Advance hereunder.

 

“Cash Flow Report” has the meaning ascribed to it in Section 8.03(a).

 

“CE Cure Account” has the meaning ascribed to it in Section 8.01(a).

 

“Change in Law” means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority.

 

“Change of Control” means an event or series of events by which the Parent or its Affiliates, collectively, (i) shall cease to possess, directly or indirectly, the right to elect or appoint (through contract, ownership of voting securities, or otherwise) managers that at all times have a majority of the votes of the board of managers (or similar governing body) of the Company or to direct the management policies and decisions of the Company or (ii) cease, directly or indirectly, to own and control legally and beneficially all of the equity interests of the Company; provided, however, that a merger of the Parent with another business development

 

3

 

company sponsored by W.P. Carey Inc. or other fundamental change transaction the result of which effectively combines the ownership and/or assets of the Parent and a business development company sponsored by W.P. Carey Inc., or merges or consolidates their respective collateral advisors or sub-advisors shall not constitute a Change of Control.

 

“Charges” has the meaning ascribed to it in Section 10.11.

 

“Code” means the United States Internal Revenue Code of 1986, as amended.

 

“Collateral” has the meaning ascribed to it in Section 8.02.

 

“Collateral Administration Agreement” means the collateral administration agreement, dated on or about the date hereof, among the Company, the Administrative Agent, the Investment Manager and the Collateral Administrator.

 

“Collateral Administrator” has the meaning ascribed to it in the preamble.

 

“Collateral Agent” has the meaning ascribed to it in the preamble.

 

“Collateral Trustee” means the Collateral Agent, in its capacity as collateral trustee under the Security Deed.

 

“Company” has the meaning ascribed to it in the preamble.

 

“Company LLC Agreement” means the amended and restated limited liability company agreement of Hamilton Finance LLC, dated December 17, 2015.

 

“Compliance Condition” means, on any date of determination, a condition that is satisfied if the Administrative Agent determines that the principal amount of then outstanding Advances (assuming that Advances have been made for any outstanding Purchase Commitments which have traded but not settled) minus the amounts then on deposit in the Accounts (including cash and Eligible Investments) representing Principal Proceeds and Excess Interest Proceeds, is less than or equal to 60% of the Net Asset Value.

 

“Concentration Limitations” has the meaning ascribed to it in Schedule 4.

 

“Coverage Event” means (A) the occurrence of both of the following events: (i) the Administrative Agent shall have determined and notified the Investment Manager in writing (with a copy to the Collateral Agent) as of any date that the Net Asset Value does not equal or exceed the product of (a) the Market Value Trigger specified on the Transaction Schedule and (b)(x) the principal amount of the outstanding Advances (assuming that Advances have been made for any outstanding Purchase Commitments which have traded but not settled) minus (y) the amounts then on deposit in the Accounts (including cash and Eligible Investments) representing Principal Proceeds and Excess Interest Proceeds; provided that, solely for the purposes of calculating the Net Asset Value under this clause (A)(i), the Market Value for any Portfolio Asset shall not be greater than the par amount thereof; and (ii) a Coverage Event Cure Failure or (B) if in connection with any Coverage Event Cure, a Portfolio Investment sold, contributed or deemed to have been contributed to the Company shall fail to settle within (1)

 

4

 

fifteen (15) Business Days from the related Trade Date thereof with respect to Portfolio Investments consisting of Loans and (2) three (3) Business Days from the related Trade Date thereof with respect to Portfolio Investments other than Loans or, in each case, in such longer period as may be agreed to by the Administrative Agent in its sole discretion; provided that, the failure of such sale, contribution or deemed contribution to settle within the applicable time frame shall not constitute a “Coverage Event” if the condition set forth in clause (A)(i) of this definition is otherwise satisfied at the end of such time frame.

 

“Coverage Event Cure” means, on any date of determination, (i) the contribution by Parent of cash to the Company (which shall be deposited in the CE Cure Account) or, with the consent of the Administrative Agent (in accordance with the Sale Agreement), additional Portfolio Investments to the Company and the pledge and Delivery thereof by the Company to the Collateral Agent pursuant to the terms hereof, (ii) the prepayment by the Company of an aggregate principal amount of Advances (together with accrued and unpaid interest thereon) or (iii) any combination of the foregoing clauses (i) and (ii), in each case during the Coverage Event Cure Period and in an amount such that the Net Asset Value exceeds the product of (a) the Market Value Trigger specified on the Transaction Schedule and (b)(x) the principal amount of the outstanding Advances (assuming that Advances have been made for any outstanding Purchase Commitments which have traded but not settled) minus (y) the amounts then on deposit in the Accounts (including cash and Eligible Investments) representing Principal Proceeds and Excess Interest Proceeds; provided that, any Portfolio Investment contributed or deemed to be contributed to the Company in connection with the foregoing must meet all of the applicable Eligibility Criteria (unless otherwise consented to by the Administrative Agent); and provided further, that solely for the purposes of the calculation set forth above, when determining the Net Asset Value, the Market Value for any Portfolio Asset shall not be greater than the par amount thereof.  In connection with any Coverage Event Cure, a Portfolio Investment shall be deemed to have been sold or contributed to the Company, as applicable, if there has been a valid, binding and enforceable contract for the assignment of such Portfolio Investment and, in the reasonable judgment of the Investment Manager, such assignment will settle within (1) fifteen (15) Business Days from the related Trade Date thereof with respect to Portfolio Investments consisting of loans and (2) three (3) Business Days from the related Trade Date thereof with respect to Portfolio Investments other than Loans.  For the purposes of any request for consent of the Administrative Agent pursuant to clause (i) in the immediately preceding sentence, if the Company notifies the Administrative Agent on the day on which the events set forth in clause (A)(i) of the definition of “Coverage Event” has occurred of the Parent’s intention to contribute one or more Portfolio Investments to the Company to cure such event and requests the related consent thereto, the Administrative Agent shall respond to such request no later than two (2) Business Day after such notice is received.

 

“Coverage Event Cure Failure” means the failure by the Company to effect a Coverage Event Cure as set forth in the definition of such term.

 

“Coverage Event Cure Period” means the period commencing on the Business Day on which the Administrative Agent notifies the Investment Manager (which such notice shall be given by the Administrative Agent prior to 2:00 p.m., New York City time, on any Business Day, and if not given by such time, such notice shall be deemed to have been given on the next succeeding Business Day) of the occurrence of the events set forth in clause (A)(i) of the

 

5

 

definition of the term Coverage Event and ending at (x) the close of business in New York two (2) Business Days thereafter or (y) such later date and time as may be agreed to by the Administrative Agent in its sole discretion.

 

“Credit Risk Parties” has the meaning ascribed to it in Article VII.

 

“Current Pay Obligation” means any Portfolio Investment that would otherwise be treated as a Defaulted Obligation but as to which no payments are due and payable that are unpaid and with respect to which the Investment Manager has certified to the Administrative Agent (with a copy to the Collateral Administrator and the Collateral Agent) in writing that it believes, in its reasonable business judgment, that (a) the issuer or obligor of such Portfolio Investment will continue to make scheduled payments of interest thereon and will pay the principal thereof by maturity or as otherwise contractually due, or (b) if the issuer or obligor is subject to a bankruptcy proceeding, it has been the subject of an order of a bankruptcy court that permits it to make the scheduled payments on such Portfolio Investment and all interest and principal payments due thereunder have been paid in cash when due.

 

“Custodian” means Elavon Financial Services Limited, UK Branch, in its capacity as custodian under the Custody and Account Bank Agreement.

 

“Custody and Account Bank Agreement” means the Custody and Account Bank Agreement, dated the date hereof, among the Company, the Account Bank, the Custodian and the Collateral Trustee.

 

“Default” has the meaning ascribed to it in Section 1.03.

 

“Defaulted Obligation” means any Portfolio Investment that is subject to an event of default (as defined in the underlying instruments for such obligation) in accordance with its terms (including the terms of its underlying instruments after giving effect to any grace and/or cure period set forth in the related loan agreement, but not to exceed five (5) days) and no Indebtedness of the obligor thereon ranking pari passu with such obligation is in default with respect to the payment of principal or interest for which the lenders for such pari passu Indebtedness have elected to accelerate such Indebtedness, which such default would trigger a default under the related loan agreement (after giving effect to any grace and/or cure period set forth in the related loan agreement, but not to exceed five (5) days); provided that a Portfolio Investment shall not constitute a Defaulted Obligation if it is a Current Pay Obligation; provided further that the principal balances of Current Pay Obligations exceeding 5.0% of the Total Principal Balance will be treated as Defaulted Obligations.

 

“Delayed Funding Term Loan” means any Portfolio Investment that (a) requires the holder thereof to make one or more future advances to the obligor under the Underlying Instruments relating thereto, (b) specifies a maximum amount that can be borrowed on one or more fixed borrowing dates, and (c) does not permit the re-borrowing of any amount previously repaid by the obligor thereunder; but any such loan will be a Delayed Funding Term Loan only to the extent of undrawn commitments and only until all commitments by the holders thereof to make advances to the obligor thereon expire or are terminated or reduced to zero.

 

“Deliver” (and its correlative forms) means the taking of the following steps:

 

6

 

(1)           in the case of Portfolio Investments and Eligible Investments denominated in U.S. dollars and amounts deposited into the CE Cure Account, by instructing the Securities Intermediary (x) to indicate by book entry that a financial asset comprised thereof has been credited to the USD Custodial Account and (y) to comply with entitlement orders originated by the Collateral Agent with respect to each such security entitlement without further consent by the Company;

 

(2)           in the case of each general intangible, by notifying the obligor thereunder of the security interest of the Collateral Agent; provided the Company shall not be required to notify the obligor unless an Event of Default has occurred and is continuing or a Coverage Event shall have occurred;

 

(3)           except as otherwise provided in clauses (6) and (7) below, in the case of Possessory Collateral that do not constitute a financial asset forming the basis of a security entitlement delivered to the Collateral Agent pursuant to clause (1) above, by causing (x) the Collateral Agent to obtain possession of such Possessory Collateral in the State of Wisconsin, or (y) a person other than the Company and a securities intermediary (A)(I) to obtain possession of such Possessory Collateral in the State of Wisconsin, and (II) to then authenticate a record acknowledging that it holds possession of such Possessory Collateral for the benefit of the Collateral Agent or (B)(I) to authenticate a record acknowledging that it will take possession of such Possessory Collateral for the benefit of the Collateral Agent and (II) to then acquire possession of such Possessory Collateral in the State of Wisconsin;

 

(4)           in the case of any account which constitutes a “deposit account” under Article 9 of the UCC, by instructing the Securities Intermediary to continuously identify in its books and records the security interest of the Collateral Agent in such account and, except as may be expressly provided herein to the contrary, establishing dominion and control over such account in favor of the Collateral Agent;

 

(5)           with respect to the security interest granted pursuant to Section 8.02, by filing or causing the filing of a financing statement with respect to such Collateral with the Delaware Secretary of State; and

 

(6)           in the case of all Euro Investments, Eligible Investments denominated in Euro, GBP Investments and Eligible Investments denominated in GBP, by entering into the Custody and Account Bank Agreement and the Security Deed and, in the case of securities and other tangible assets, to credit such assets to the Euro Custodial Account, the Euro Interest Collection Account, the Euro Principal Collection Account, the GBP Custodial Account, the GBP Interest Collection Account or the GBP Principal Collection Account, as applicable.

 

“Designated Email Notification Address” means CCIFundadmin@wpcarey.com, provided that, so long as no Event of Default shall have occurred and be continuing, Parent may, upon at least five (5) Business Day’s written notice to the applicable Agent, designate any other email address with respect to Parent as the Designated Email Notification Address.

 

“Designated Independent Broker-Dealer” means J.P. Morgan Securities LLC; provided that, so long as no Coverage Event shall have occurred and no Event of Default shall have

 

7

 

occurred and be continuing, Parent may, upon at least five (5) Business Day’s written notice to the applicable Agent, designate another Independent Broker-Dealer as the Designated Independent Broker-Dealer; provided further that, with respect to the proposed sale of a Portfolio Investment, no other Independent Broker-Dealer may be designated as the Designated Independent Broker-Dealer without the consent of the Administrative Agent.

 

“Effective Date” has the meaning ascribed to it in Section 2.04.

 

“Eligibility Criteria” means the eligibility criteria set forth in Schedule 3.

 

“Eligible Assignee” means (i) an Affiliate of the related assignor, (ii) a bank, (iii) an insurance company or (iv) any Person, other than (a) any Person primarily engaged in the business of private investment management as a business development company, mezzanine fund, private debt fund, hedge fund or private equity fund, which is in direct or indirect competition with the Company, the Investment Manager or the sub-advisor of the Investment Manager, or any Affiliate thereof that is an investment advisor, (b) any Person controlled by, or controlling, or under common control with, or which is a sponsor of, a Person referred to in clause (a) above, or (c) any Person for which a Person referred to in clause (a) above serves as an investment advisor with discretionary investment authority; provided that conditions (a), (b) and (c) shall not apply (i) on any day when an Event of Default has occurred and is continuing or (ii) on any day that is after a Market Value Event has occurred.

 

“Eligible Investments” means any (a) cash or (b) U.S. dollar denominated (or, with respect to Accounts other than the USD Accounts, denominated in the applicable Permitted Non-USD Currency) investment that, at the time it, or evidence of it, is Delivered to the Collateral Agent (directly or through an intermediary or bailee), is one or more of the following obligations or securities:

 

(i)                                     direct Registered debt obligations of, and Registered debt obligations the timely payment of principal and interest on which is fully and expressly guaranteed by, the United States of America or any agency or instrumentality of the United States of America (or, with respect to Accounts other than the USD Accounts, the central government of the applicable Eligible Jurisdiction or any agency or instrumentality of such Eligible Jurisdiction) the obligations of which are expressly backed by the full faith and credit of the United States of America (or, with respect to Accounts other than the USD Accounts, the central government of the applicable Eligible Jurisdiction) that satisfies the Eligible Investment Required Ratings at the time of such investment or contractual commitment providing for such investment; provided, notwithstanding the foregoing, the following securities shall not be Eligible Investments: (i) General Services Administration participation certificates; (ii) U.S. Maritime Administration guaranteed Title XI financing; (iii) Financing Corp. debt obligations; (iv) Farmers Home Administration Certificates of Beneficial Ownership; and (v) Washington Metropolitan Area Transit Authority guaranteed transit bonds;

 

(ii)                                  demand and time deposits in, certificates of deposit of, trust accounts with, bankers’ acceptances issued by, or federal funds sold by any depository institution

 

8

 

or trust company (including, in each case, U.S. Bank or an Affiliate thereof) incorporated under the laws of the United States of America (or, with respect to Accounts other than the USD Accounts, the laws of the applicable Eligible Jurisdiction) or any state of the United States of America and subject to supervision and examination by federal and/or state banking authorities (or, if applicable, banking authorities of the relevant Eligible Jurisdiction), so long as the commercial paper and/or the debt obligations of such depository institution or trust company (or, in the case of the principal depository institution in a holding company system, the commercial paper or debt obligations of such holding company) at the time of such investment or contractual commitment providing for such investment have the Eligible Investment Required Ratings;

 

(iii)                               unleveraged repurchase obligations with respect to (a) any security described in clause (i) above or (b) any other security issued or guaranteed by an agency or instrumentality of the United States of America (or, with respect to Accounts other than the USD Accounts, an agency or instrumentality of the applicable Eligible Jurisdiction), in either case entered into with a depository institution or trust company (acting as principal) described in clause (ii) above or entered into with an entity (acting as principal) with, or whose parent company has, the Eligible Investment Required Ratings;

 

(iv)                              Registered debt securities bearing interest or sold at a discount with maturities up to 365 days (but in any event such securities will mature by the next succeeding Interest Payment Date) issued by any entity formed under the laws of the United States of America or any State thereof (or, with respect to Accounts other than the USD Accounts, the laws of the applicable Eligible Jurisdiction) that have a S&P Rating of “AA” at the time of such investment or contractual commitment providing for such investment;

 

(v)                                 commercial paper or other short-term debt obligations with the Eligible Investment Required Ratings and that either bear interest or are sold at a discount from the face amount thereof; provided that this clause (v) will not include extendible commercial paper or asset backed commercial paper; and

 

(vi)                              money market funds which have, at the time of such reinvestment, a credit rating of “AAAm” by S&P;

 

provided that Eligible Investments shall not include (a) any interest-only security, any security purchased at a price in excess of 100% of the par value thereof or any security whose repayment is subject to substantial non-credit related risk as determined in the sole judgment of the Investment Manager, or (b) any security whose rating assigned by Standard & Poor’s includes the subscript “f”, “p”, “q”, “pi”, “r”, “sf” or “t”.  Eligible Investments may include those investments with respect to which U.S. Bank or an Affiliate of U.S. Bank is an obligor or provides services.

 

9

 

“Eligible Investment Required Ratings” means a long-term senior unsecured debt rating of at least “A” and a short-term credit rating of at least “A-1” by S&P (or, if such institution has no short-term credit rating, a long-term senior unsecured debt rating of at least “A+” by S&P).

 

“Eligible Jurisdictions” means Belgium, Canada, France, Germany, Ireland, Sweden, The Netherlands, the United Kingdom and the United States.

 

“ERISA” means the United States Employee Retirement Income Security Act of 1974, as amended.

 

“ERISA Affiliate” means any trade or business (whether or not incorporated) under common control with the Company within the meaning of Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412, 430 or 431 of the Code).

 

“ERISA Event” means that (1) the Company’s underlying assets constitute “plan assets” within the meaning of the Plan Asset Rules or (2) the Company or any ERISA Affiliate sponsors, maintains, contributes to, is required to contribute to or has any liability with respect to any Plan.

 

“Euro Account” has the meaning ascribed to it in Section 8.01(a).

 

“Euro Custodial Account” has the meaning ascribed to it in Section 8.01(a).

 

“Euro Interest Collection Account” has the meaning ascribed to it in Section 8.01(a).

 

“Euro Investments” means Portfolio Investments denominated in Euro.

 

“Euro Principal Collection Account” has the meaning ascribed to it in Section 8.01(a).

 

“Events of Default” has the meaning ascribed to it in Article VII.

 

“Excess Concentration Amount” means, as of any date of determination, the sum, without duplication, of the Market Value of each Portfolio Investment, if any, that is in excess of any Concentration Limitations.  If multiple Portfolio Investments are in excess of the Concentration Limitations, then from those Portfolio Investments, the Company may select the Portfolio Investments to be counted above, provided that, absent a selection by the Company, Portfolio Investments with the lowest Market Values shall be counted above until the Concentration Limitations are satisfied.

 

“Excess Interest Proceeds” means, at any time of determination, the excess of (1) amounts then on deposit in the Accounts representing Interest Proceeds over (2) the sum of (a) the projected amount required to be paid pursuant to Section 4.03(b) on the next Interest Payment Date plus (b) $30,000, in each case, as determined by the Company in good faith and in a commercially reasonable manner and verified by in the case of clause (1) the Collateral Agent and otherwise by the Administrative Agent.

 

“Excluded Taxes” means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient, (a) Taxes

 

10

 

imposed on or measured by net income (however denominated), franchise Taxes and branch profits Taxes, in each case, imposed as a result of such Recipient being organized under the laws of, or having its principal office or its applicable lending office (or relevant office for receiving payments from or on account of the Company or making funds available to or for the benefit of the Company) located in, the jurisdiction imposing such Tax (or any political subdivision thereof), (b) Other Connection Taxes, (c) U.S. federal withholding Taxes on amounts payable to or for the account of such Recipient that are or would be required to be withheld pursuant to a law in effect on the date on which (i) such Recipient acquires an interest in the Financing Commitment or Advance or becomes a party hereunder or (ii) such Recipient changes its office for receiving payments by or on account of the Company or making funds available to or for the benefit of the Company, except in each case to the extent that, pursuant to Section 3.03, amounts with respect to such Taxes were payable either to such Recipient’s assignor immediately before such Recipient became a party hereto or to such Recipient immediately before it changed its office for receiving payments by or on account of the Company or making funds available to or for the benefit of the Company, (d) Taxes attributable to such Lender’s failure to comply with Section 3.03(f), (e) any U.S. federal withholding Taxes imposed under FATCA and (f) U.S. backup withholding Taxes.

 

“FATCA” means Sections 1471 through 1474 of the Code as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, and intergovernmental agreements thereunder, similar or related non-U.S. Law that correspond to Sections 1471 to 1474 of the Code, any agreements entered into pursuant to Section 1471(b)(1) of the Code, any intergovernmental agreement entered into in connection with the implementation of such Sections of the Code and any U.S. or non-U.S. fiscal or regulatory Law, legislation, rules, guidance, notes or practices adopted pursuant to such intergovernmental agreement.

 

“Federal Funds Effective Rate” means, for any day, the weighted average (rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day, the average (rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received by the Administrative Agent from three Federal funds brokers of recognized standing selected by it.

 

“Financing Commitment” means, with respect to each Financing Provider and each type of Financing available hereunder at any time, the commitment of such Financing Provider to provide such type of Financing to the Company hereunder in an amount up to but not exceeding the portion of the applicable financing limit set forth on the Transaction Schedule that is held by such Financing Provider at such time reduced by any Advances prepaid in connection with a Coverage Event.

 

“Financing Providers” has the meaning ascribed to it in the preamble.

 

“Financings” has the meaning ascribed to it in the preamble.

 

11

 

“First Advance” has the meaning ascribed to it in Section 2.02(a).

 

“First Lien Loan” means a Portfolio Investment (i) that is not (and cannot by its terms become) subordinate in right of payment to any obligation of the obligor thereof in any bankruptcy, reorganization, arrangement, insolvency, moratorium or liquidation proceedings (other than pursuant to a Permitted Working Capital Lien and customary waterfall provisions contained in the applicable loan agreement), (ii) that is secured by a pledge of collateral, which security interest is (a) validly perfected and first priority (subject to liens for taxes or regulatory charges and any other liens permitted under the related underlying instruments that are reasonable and customary for similar loans) under applicable law or (b)(1) validly perfected and second priority in the accounts, documents, instruments, chattel paper, letter-of-credit rights, supporting obligations, deposit accounts, investments accounts and any other assets securing any Working Capital Revolver under applicable law and proceeds of any of the foregoing (a first priority lien on such assets a “Permitted Working Capital Lien”) and (2) validly perfected and first priority (subject to liens for taxes or regulatory charges and any other liens permitted under the related underlying instruments that are reasonable and customary for similar loans) in all other collateral under applicable law and (iii) the Investment Manager determines in good faith that the value of the collateral securing the loan (including based on enterprise value) on or about the time of origination or acquisition by the Company equals or exceeds the outstanding principal balance thereof plus the aggregate outstanding balances of all other loans of equal or higher seniority secured by the same collateral. For the avoidance of doubt, first-out unitranche loans and debtor-in-possession loans shall constitute First Lien Loans.

 

“Foreign Lender” means a Lender that is not a U.S. Person.

 

“GAAP” means generally accepted accounting principles in the effect from time to time in the United States, as applied from time to time by the Company.

 

“GBP” means British Pounds.

 

“GBP Account” has the meaning ascribed to it in Section 8.01(a).

 

“GBP Custodial Account” has the meaning ascribed to it in Section 8.01(a).

 

“GBP Interest Collection Account” has the meaning ascribed to it in Section 8.01(a).

 

“GBP Investments” means Portfolio Investments denominated in GBP.

 

“GBP Principal Collection Account” has the meaning ascribed to it in Section 8.01(a).

 

“Governmental Authority” means the government of the United States of America or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).

 

12

 

“Indebtedness” as applied to any Person, means, without duplication, (i) all obligations of such Person for borrowed money; (ii) all obligations of such Person evidenced by bonds, debentures, notes, deferrable securities or other similar instruments; (iii) all obligations of such Person to pay the deferred purchase price of property or services, except trade accounts payable arising in the ordinary course of business; (iv) all obligations of such Person as lessee under capital leases; (v) all non-contingent obligations of such Person to reimburse or prepay any bank or other Person in respect of amounts paid under a letter of credit, banker’s acceptance or similar instrument; (vi) all debt of others secured by a Lien on any asset of such Person, whether or not such debt is assumed by such Person; and (vii) all debt of others guaranteed by such Person and other contingent obligations to purchase, to provide funds for payment, to supply funds to invest in any Person or otherwise to assure a creditor against loss.  Notwithstanding the foregoing, “Indebtedness” shall not include a commitment arising in the ordinary course of business to purchase a future Portfolio Investment in accordance with the terms of the Loan Documents.

 

“Indemnified Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Company under this Agreement and (b) to the extent not otherwise described in (a), Other Taxes.

 

“Indemnitee” has the meaning ascribed to it in Section 10.04(b).

 

“Independent Bid” means a firm bid for the full amount of the relevant Portfolio Investment from an Independent Broker-Dealer.

 

“Independent Broker-Dealer” means any of the following (as such list may be revised from time to time by mutual written agreement (which may be by email) of the Company and the Administrative Agent): Bank of America/Merrill Lynch, Bank of Montreal, Barclays Bank plc, BNP Paribas, Citibank, N.A., Credit Suisse AG, Deutsche Bank AG, Goldman Sachs & Co., Morgan Stanley & Co., Nomura Securities, Royal Bank of Canada, Royal Bank of Scotland, UBS AG, Wells Fargo Securities and any Affiliate of any of the foregoing, but in no event including the Company or any Affiliate of the Company.

 

“Ineligible Investment” means, from time to time, any Portfolio Investment that fails, at such time, to satisfy the Eligibility Criteria; provided, that, with respect to any Portfolio Investment for which the Administrative Agent has waived one or more of the criteria set forth on Schedule 3 pursuant to Section 1.03 in its Approval of such Portfolio Investment, the Eligibility Criteria in respect of such Portfolio Investment shall be deemed not to include such waived criteria at any time after such Approval and such Portfolio Investment shall not be considered an “Ineligible Investment” by reason of its failure to meet such waived criteria.

 

“Information” means all information received from the Company or the Investment Manager relating to the Company or its business or any obligor in respect of any Portfolio Investment.

 

“Interest Payment Date” means March 24, June 24, September 24 and December 24 of each year during the term of this Agreement or if such date is not a Business Day, then the succeeding Business Day commencing March 24, 2016.

 

13

 

“Interest Proceeds” means all payments of interest received by the Company in respect of the Portfolio Investments and Eligible Investments (in each case other than accrued interest purchased by the Company using Principal Proceeds, but including proceeds received from the sale of interest accrued after the date on which the Company acquired the related Portfolio Investment), all other payments on the Eligible Investments acquired with the proceeds of Portfolio Investments (for the avoidance of doubt, such other payments shall not include principal payments (including, without limitation, prepayments, repayments or sale proceeds) with respect to Eligible Investments acquired with Principal Proceeds) and all payments of fees and other similar amounts received by the Company or deposited into any of the Accounts (including, but not limited to, commitment fees, facility fees, late payment fees, prepayment premiums, amendment fees and waiver fees, but excluding syndication or other up-front fees and administrative agency or similar fees); provided, however, that for the avoidance of doubt, Interest Proceeds shall not include amounts or Eligible Investments in the CE Cure Account or any proceeds therefrom.

 

“Investment” means (a) the purchase of any debt or equity security of any other Person, or (b) the making of any loan or advance to any other Person, or (c) becoming obligated with respect to Indebtedness of any other Person.

 

“Investment Management Agreement” means the Investment Management Agreement, dated on the date hereof, between the Company and the Investment Manager relating to the management of the Portfolio Investments, as amended, restated, supplemented or otherwise modified from time to time.

 

“Investment Manager” means Carey Credit Income Fund, a Delaware statutory trust.

 

“IRS” means the United States Internal Revenue Service.

 

“JPMCB” has the meaning ascribed to it in the preamble.

 

“Lender” means a Financing Provider with a Financing Commitment to make Advances hereunder.

 

“Letter of Credit” means a facility whereby (i) a fronting bank issues or will issue a letter of credit for or on behalf of a borrower, (ii) if the letter of credit is drawn upon, and the borrower does not reimburse the letter of credit agent bank, the lender/participant is obligated to fund its portion of the facility, and (iii) the letter of credit agent bank passes on (in whole or in part) the fees and any other amounts it receives for providing the letter of credit to the lender.

 

“LIBO Rate” means, for each Calculation Period, the greater of (A) 0.00% and (B)(i) the rate per annum equal to the offered rate which appears on the page of the Reuters Screen which displays an average Inter-continental Exchange Benchmark Administration Ltd. Interest Settlement Rate for dollar deposits (for delivery on the first day of such Calculation Period) with a term equivalent to the LIBOR Period, determined as of approximately 11:00 a.m., London time, two London Banking Days prior to the commencement of such Calculation Period, or (ii) if the rate referenced in the preceding clause (B)(i) does not appear on such page or service or if such page or service shall cease to be available, the rate per annum equal to the rate determined by the Administrative Agent to be the offered rate on such other page or other service which

 

14

 

displays an average Intercontinental Exchange Benchmark Administration Ltd. Interest Settlement Rate for dollar deposits (for delivery on the first day of such Calculation Period) with a term equivalent to the LIBOR Period, determined as of approximately 11:00 a.m., London time, two London Banking Days prior to the commencement of such Calculation Period.  The LIBO Rate shall be determined by the Administrative Agent (and notified to the Collateral Administrator), and such determination shall be conclusive absent manifest error.

 

“LIBOR Period” means three months.

 

“Lien” means any security interest, lien, charge, pledge, preference, equity or encumbrance of any kind, including tax liens, mechanics’ liens and any liens that attach by operation of law.

 

“Loan” means any obligation for the payment or repayment of borrowed money that is documented by a term loan agreement, revolving loan agreement or other similar credit agreement.

 

“Loan/Assignment Agreement” has the meaning ascribed to it in Section 8.01(a).

 

“Loan Documents” has the meaning ascribed to it in Section 2.04(b).

 

“Market Value” means, on any date of determination, (i) with respect to each Portfolio Investment held by the Company that is a First Lien Loan or a Second Lien Loan, the aggregate outstanding amount of such Portfolio Investment multiplied by (x) the indicative bid-side price determined by one of Markit Partners, Reuters Loan Pricing Corporation or any other contributor-based pricing provider agreed to by the Company and the Administrative Agent in writing (which may be by email) (each, an “Approved Pricing Service”) or (y) if the Administrative Agent determines in its sole discretion that the indicative bid-side price to be obtained in clause (x) above is unavailable or is not indicative of the actual current market value, the market value of such First Lien Loan or Second Lien Loan as determined by the Administrative Agent in good faith and in a commercially reasonable manner; (ii) with respect to any other Portfolio Investment held by the Company, the aggregate outstanding amount of such Portfolio Investment multiplied by the market value (expressed as a percentage) of such Portfolio Investment as determined by the Administrative Agent in good faith and in a commercially reasonable manner; and (iii) with respect to any cash held by the Company, the amount of such cash; provided, however, a Portfolio Investment shall have a Market Value of $0 if (i) the related Approval Request was not Approved by the Administrative Agent or (ii) it is an Ineligible Investment.  Except as otherwise herein expressly provided, the Market Value for any Portfolio Investment shall not be greater than the par amount thereof.  So long as no Coverage Event has occurred or Event of Default has occurred and is continuing, the Company (or the Investment Manager on its behalf) shall have the right to initiate a dispute of the Market Value of certain Portfolio Investments as set forth in Section 1.05 and Market Value may then be determine in accordance with Section 1.05.

 

“Material Adverse Effect” means a material adverse effect on (a) the business, assets, operations or condition, financial or otherwise, of the Company or the Investment Manager, (b) the ability of the Company or the Investment Manager to perform its obligations under this

 

15

 

Agreement or any of the other Loan Documents or (c) the rights of or benefits available to the Administrative Agent or the Lenders under this Agreement or any of the other Loan Documents.

 

“Material Amendment” means any amendment, modification or supplement to this Agreement that (i) increases the Financing Commitment of any Lender, (ii) reduces the principal amount of any Advance or reduces the rate of interest thereon, or reduces any fees payable hereunder, (iii) postpones the scheduled date of payment of the principal amount of any Advance, or any interest thereon, or any other amounts payable hereunder, or reduces the amount of, waives or excuses any such payment, or postpones the scheduled date of expiration of any Financing Commitment, (iv) changes any provision in a manner that would alter the pro rata sharing of payments required hereby, or (v) changes any of the provisions of Section 10.08 or the definition of “Required Financing Providers” or any other provision hereof specifying the number or percentage of Financing Providers required to waive, amend or modify any rights hereunder or make any determination or grant any consent hereunder.

 

“Maturity Date” means the date that is the earliest of (1) the Scheduled Termination Date set forth on the Transaction Schedule, (2) the date on which the Secured Obligations become due and payable following the occurrence of an Event of Default under Article VII, (3) the date following a Coverage Event on which all Portfolio Investments have been sold and the proceeds therefrom have been received by the Company and (4) the date specified for optional redemption in full in the written notice delivered pursuant to Section 4.06.

 

“Maximum Rate” has the meaning ascribed to it in Section 10.11.

 

“Mezzanine Loan” means a Portfolio Investment which is unsecured, subordinated debt of a company that represents a claim on such company’s assets which is senior only to that of the equity securities of such company.

 

“Minimum Equity Condition” means a condition that will be satisfied on any date on which (a) the Market Value of the Portfolio Investments minus (y) the aggregate outstanding amount of the Advances plus amounts then on deposit in the Accounts other than the CE Cure Account (including cash and Eligible Investments) representing Principal Proceeds equals at least $60,000,000.

 

“Minimum Funding Amount” has the meaning ascribed to it in Section 2.03(e).

 

“Moody’s Classified Industry”: An industry classified by a given Moody’s Industry Classification Group code (three digit).

 

“Moody’s Industry Classification Group”: As set forth in Exhibit B hereto.

 

“Nationally Recognized Valuation Provider” means and of the following (as such list may be revised from time to time by mutual written agreement (which may be by email) of the Company and the Administrative Agent) (i) Houlihan Lokey Financial Advisors, (ii) Lincoln International LLC (f/k/a Lincoln Partners LLC), (iii) Duff & Phelps Corp., (iv) Valuation Research Corporation, (v) FTI Consulting, Inc. and (vi) Murray Devine.

 

16

 

“Net Asset Value” means the sum of the Market Value of each Portfolio Investment (both owned and in respect of which there are outstanding Purchase Commitments which have traded but not settled) in the Portfolio that is not (x) an Ineligible Investment or (y) a Portfolio Investment which has traded but not settled within (1) fifteen (15) Business Days from the related Trade Date thereof with respect to Portfolio Investments consisting of Loans and (2) three (3) Business Days from the related Trade Date thereof with respect to Portfolio Investments other than Loans minus the Excess Concentration Amount.

 

“Net Purchased Loan Balance” means, as of any date of determination, an amount equal to (a) the aggregate principal balance of all Portfolio Investments acquired by the Company prior to such date minus (b) the aggregate principal balance of all Portfolio Investments (other than Warranty Portfolio Investments) repurchased by the Parent or an Affiliate thereof prior to such date.

 

“Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising as a result of such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document.

 

“Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes imposed with respect to an assignment, grant of a participation, designation of a new office for receiving payments by or on account of a Recipient.

 

“Parent” has the meaning ascribed to it in the preamble.

 

“Participant” has the meaning ascribed to it in Section 10.08(c).

 

“Participant Register” has the meaning ascribed to it in Section 10.08(d).

 

“Permitted Distribution” means, subject to the limitations set forth in Section 6.03(t):

 

(a)           distributions of Interest Proceeds (at the discretion of the Company) (i) to Parent (or other permitted equity holders of the Company) or (ii) to the Investment Manager in respect of accrued management fees payable in accordance with the Investment Management Agreement; provided that amounts may be distributed pursuant to this paragraph (a) only to the extent of available Excess Interest Proceeds and so long as immediately prior and after giving effect to any such distribution, no Coverage Event shall have occurred; and

 

(b)           distributions of Principal Proceeds to Parent (or other permitted equity holders of the Company) so long as after giving effect to any such distribution, the Compliance Condition is satisfied and would be satisfied after funding any outstanding purchase commitments.  Parent may contribute Portfolio Investments to the Company in order to enable the Company to satisfy the foregoing conditions of this paragraph (b); provided that (i) the Company’s purchase of any

 

17

 

such Portfolio Investments must be made in compliance with the provisions set forth in Sections 1.02 and 1.03 and (ii) the Market Value of such Portfolio Investments shall be $0 unless the Administrative Agent approves such purchase.

 

“Permitted Lien” means any of the following as to which no enforcement, collection, execution, levy or foreclosure proceeding shall have been commenced (a) Liens for Taxes if such Taxes shall not at the time be due and payable or if a Person shall currently be contesting the validity thereof in good faith by appropriate proceedings and with respect to which reserves in accordance with GAAP have been provided on the books of such Person, (b) Liens imposed by law, such as materialmen’s, warehousemen’s, mechanics’, carriers’, workmen’s and repairmen’s Liens and other similar Liens, arising by operation of law in the ordinary course of business for sums that are not overdue or are being contested in good faith, (c) with respect to any collateral underlying a Portfolio Investment, the Lien in favor of the Company herein and Liens permitted under the Underlying Instruments, (d) as to agented Portfolio Investments, Liens in favor of the agent on behalf of all the lenders of the related obligor, and (e) Liens granted pursuant to or by the Loan Documents.

 

“Permitted Non-USD Currency” means GBP and Euros.

 

“Person” means any natural person, corporation, partnership, trust, limited liability company, association, governmental authority or unit, or any other entity, whether acting in an individual, fiduciary or other capacity.

 

“Plan” means any “employee benefit plan” (as such term is defined in Section 3(3) of ERISA) established by the Company or, with respect to any such plan that is subject to Section 412 of the Code or Title IV of ERISA, any ERISA Affiliate.

 

“Plan Asset Rules” means the regulations issued by the United States Department of Labor at Section 2510.3-101 of Part 2510 of Chapter XXV, Title 29 of the United States Code of Federal Regulations, as modified by Section 3(42) of ERISA.

 

“Portfolio” has the meaning ascribed to it in Section 1.01.

 

“Portfolio Investments” has the meaning ascribed to it in the preamble.

 

“Position Report” has the meaning ascribed to it in Section 8.03(a).

 

“Possessory Collateral” means Portfolio Investments consisting of money or instruments.

 

“Prime Rate” means the rate of interest per annum publicly announced from time to time by JPMCB as its prime rate in effect at its principal office in New York City; each change in the Prime Rate shall be effective from and including the date such change is publicly announced as being effective.

 

“Principal Proceeds” means all amounts received by the Company with respect to the Portfolio Investments or any other Collateral, and all amounts otherwise on deposit in the Accounts (including cash contributed by the Company), in each case other than Interest Proceeds.

 

18

 

“Proceedings” has the meaning ascribed to it in Section 10.09(b).

 

“Purchase” has the meaning ascribed to it in Section 1.01.

 

“Purchase Commitment” has the meaning ascribed to it in Section 1.02(a).

 

“Ramp-Up Period” means the period from and including the Effective Date to, but excluding, September 17, 2016.

 

“Recipient” means any Agent and any Lender, as applicable.

 

“Register” has the meaning ascribed to it in Section 3.01(c).

 

“Registered” means a debt obligation that is issued after July 18, 1984 and that is in registered form within the meaning of Section 881(c)(2)(B)(i) of the Code and the United States Treasury regulations promulgated thereunder, provided that an interest in a grantor trust will be considered to be Registered if such interest is in registered form and each of the obligations or securities held by such trust was issued after July 18, 1984.

 

“Reinvestment Period” means the period beginning on, and including, the Effective Date and ending on, but excluding, December 17, 2018.

 

“Related Parties” has the meaning ascribed to it in Section 9.01.

 

“Repayment Event” means an event that occurs at any time on or prior to the twelve month anniversary of the Effective Date if (i) the Company has properly delivered at least ten (10) Approval Requests during such period, so long as each such Approval Request would have satisfied all conditions set forth in this Agreement and (ii) the Administrative Agent has not Approved at least 75% of the Approval Requests properly made and which would have satisfied all conditions set forth in this Agreement as of the applicable date of determination.

 

“Required Financing Providers” means, at all times, JPMCB.

 

“Restricted Payment” means (i) any dividend or other distribution, direct or indirect, on account of any shares or other equity interests in the Company now or hereafter outstanding; (ii) any redemption, retirement, sinking fund or similar payment, purchase or other acquisition for value, direct or indirect, of any shares or other equity interests in the Company now or hereafter outstanding; and (iii) any payment made to retire, or to obtain the surrender of, any outstanding warrants, options or other rights to acquire shares or other equity interests in the Company now or hereafter outstanding.

 

“Restricted Security” has the meaning ascribed to it in Schedule 1.

 

“Revolving Credit Facility” means any Portfolio Investment (other than a Delayed Funding Term Loan) that is a loan (including revolving loans, including funded and unfunded portions of revolving credit lines and letter of credit facilities, unfunded commitments under specific facilities and other similar loans and investments) that by its terms may require one or more future advances to be made to the obligor by the Company, provided that any such loan

 

19

 

will be a Revolving Credit Facility only until all commitments to make advances to the Company expire or are terminated or irrevocably reduced to zero.

 

“Sale Agreement” has the meaning ascribed to it in the preamble.

 

“S&P” means Standard & Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC business or any successor to the ratings business thereof.

 

“Sanctions” means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State, or (b) the United Nations Security Council, the European Union or Her Majesty’s Treasury of the United Kingdom.

 

“Sanctioned Country” means, at any time, a country or territory which is itself the subject or target of any Sanctions (at the time of this Agreement, Cuba, Iran, North Korea, Sudan and Syria).

 

“Sanctioned Person” means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State, or by the United Nations Security Council, the European Union or any EU member state, (b) any Person operating, organized or resident in a Sanctioned Country or (c) any Person owned or controlled by any such Person or Persons.

 

“Second Lien Loan” means any interest in a loan that (i) is not (and that by its terms is not permitted to become) subordinate in right of payment to any other obligation of the related obligor other than a First Lien Loan with respect to the liquidation of such obligor or the collateral for such loan, (ii) is secured by a valid second priority perfected Lien to or on specified collateral securing the related obligor’s obligations under the loan, which Lien is not subordinate to the Lien securing any other debt for borrowed money other than a First Lien Loan on such specified collateral (subject to Liens for taxes or regulatory charges and other Liens permitted under the applicable Underlying Instrument that are reasonable for similar loans) and (iii) the Investment Manager determines in good faith that the value of the collateral for such loan or the enterprise value securing the loan on or about the time of acquisition equals or exceeds the outstanding principal balance of the loan plus the aggregate outstanding balances of all other loans of equal or higher seniority secured by a second priority Lien over the same collateral.

 

“Secured Obligations” has the meaning ascribed to it in Section 8.02.

 

“Secured Parties” has the meaning ascribed to it in Section 8.02.

 

“Securities Intermediary” has the meaning ascribed to it in the preamble.

 

“Security Deed” means the Security Deed, dated the date hereof, among the Company, the Administrative Agent, the Investment Manager, U.S. Bank National Association, in its capacity as collateral trustee, and Elavon Financial Services Limited, UK Branch, in its capacities as custodian and account bank.

 

20

 

“Settlement Date” has the meaning ascribed to it in Section 1.03.

 

“Solvent” means, with respect to any entity, that as of the date of determination, both (i) (a) the sum of such entity’s debt (including contingent liabilities) does not exceed the present fair value of such entity’s present assets; (b) such entity’s capital is not unreasonably small in relation to its business as contemplated on the date of this Agreement; and (c) such entity has not incurred debts beyond its ability to pay such debts as they become due (whether at maturity or otherwise); and (ii) if such entity is subject to fraudulent transfer or conveyance laws that apply standards for solvency materially different from the standards set forth in clause (i), such entity is “solvent” within the meaning given that term and similar terms under such applicable laws.  For purposes of this definition, the amount of any contingent liability at any time shall be computed as the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

 

“Special Purpose Provisions” shall have the meaning given to such term in the Company LLC Agreement.

 

“Spot Rate” means, as of any date of determination, (x) with respect to actual currency exchange between U.S. dollars and Euros or GBP, the applicable currency-Dollar rate available through U.S. Bank’s banking facilities (or, if U.S. Bank has notified the Administrative Agent and the Company that it will no longer provide such services or if U.S. Bank or one of its affiliates is no longer the Collateral Agent, the Collateral Trustee, the Account Bank or the Custodian, through such other source agreed to by the Administrative Agent in writing) and (y) with respect to all other purposes between U.S. dollars and Euros or GBP, the applicable currency-Dollar spot rate that appeared on the Bloomberg screen for such currency at 5:00 p.m. New York City time on the immediately preceding Business Day.  The determination of the Spot Rate shall be conclusive absent manifest error.

 

“Structured Finance Obligation” means an obligation issued by a special purpose vehicle and secured directly by, referenced to, or representing ownership of, a pool of receivables or other financial assets of any obligor, including collateralized debt obligations and mortgaged-backed securities.

 

“Subsidiary” of a Person means a corporation, partnership, joint venture, limited liability company or other business entity of which a majority of the shares of securities or other interests having ordinary voting power for the election of directors or other governing body (other than securities or interests having such power only by reason of the happening of a contingency) are at the time beneficially owned, or the management of which is otherwise controlled, directly, or indirectly through one or more intermediaries, or both, by such Person.

 

“Substitute Portfolio Investment” has the meaning ascribed to it in Section 1.06.

 

“Substitution” has the meaning ascribed to it in Section 1.06.

 

“Substitution Date” has the meaning ascribed to it in Section 1.03.

 

21

 

“Synthetic Security” means a security or swap transaction, other than a participation or a Letter of Credit, that has payments associated with either payments of interest on and/or principal of a reference obligation or the credit performance of a reference obligation.

 

“TARGET2 Settlement Day” means any day on which the Trans-European Automated Real Time Gross Settlement Express Transfer (TARGET2) system is open.

 

“Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest or penalties applicable thereto.

 

“Total Principal Balance” means the sum of (i) the principal balances of all approved Portfolio Investments and (ii) the amounts on deposit in the Accounts (including cash and Eligible Investments) representing Principal Proceeds.

 

“Trade Date” has the meaning ascribed to it in Section 1.03.

 

“Transaction Schedule” has the meaning ascribed to it in the preamble.

 

“UCC” means the Uniform Commercial Code as in effect from time to time in the state of the United States that governs any relevant security interest.

 

“Underlying Instruments” means the loan agreement, credit agreement or other customary agreement pursuant to which a Portfolio Investment has been created or issued and each other agreement that governs the terms of or secures the obligations represented by such Portfolio Investment or of which the holders of such Portfolio Investment are the beneficiaries.

 

“Unused Facility Amount” means, on any applicable date of determination, (i) the aggregate Financing Commitments of all Lenders minus (ii) the greater of (x) the Minimum Funding Amount in effect on such date and (y) the aggregate outstanding amount of the Advances.

 

“USA Patriot Act” has the meaning ascribed to it in Section 2.04(e).

 

“USD Account” has the meaning ascribed to it in Section 8.01(a).

 

“USD Custodial Account” has the meaning ascribed to it in Section 8.01(a).

 

“USD Interest Collection Account” has the meaning ascribed to it in Section 8.01(a).

 

“USD Principal Collection Account” has the meaning ascribed to it in Section 8.01(a).

 

“U.S. Bank” has the meaning ascribed to it in the preamble.

 

“U.S. Bank Agent” has the meaning ascribed to it in Section 9.01.

 

“U.S. Person” means any Person that is a “United States person” as defined in Section 7701(a)(30) of the Code.

 

22

 

“U.S. Tax Compliance Certificate” has the meaning ascribed to it in Section 3.03.

 

“Warranty Portfolio Investments” means any Warranty Portfolio Investments (as such term is defined in the Sale Agreement) repurchased or substituted in accordance with Section 5.1(n)(i) of the Sale Agreement.

 

“Working Capital Revolver” means a revolving lending facility secured by all or a portion of the current assets of the related obligor, which current assets subject to such security interest do not constitute a material portion of the obligor’s total assets.

 

“Zero-Coupon Security” means any debt security that at the time of purchase does not by its terms provide for the payment of cash interest; provided that, if after such purchase such debt security provides for the payment of cash interest, it will cease to be a “Zero-Coupon Security”.

 

ARTICLE I

 

THE PORTFOLIO INVESTMENTS

 

Section 1.01.         Purchases of Portfolio Investments.

 

From time to time during the Reinvestment Period, the Company may acquire or originate Portfolio Investments, or request that Portfolio Investments be acquired or originated for the Company’s account, all on and subject to the terms and conditions set forth herein.  Each such acquisition or origination is referred to herein as a “Purchase”, and all Portfolio Investments so Purchased (or Substituted) and not otherwise sold or liquidated are referred to herein as the Company’s “Portfolio.”

 

Section 1.02.         Procedures for Purchases, Substitutions and Related Financings.

 

(a)           Timing of Approval Requests.  No later than five (5) Agent Business Days (or such shorter period as the Administrative Agent may agree in its sole discretion) before the date on which the Company proposes that a commitment to acquire any Portfolio Investment be made by it or for its account (a “Purchase Commitment”) or that a Substitution occur, the Company shall cause the Investment Manager to deliver to the Administrative Agent a request (an “Approval Request”) for such Purchase or Substitution (with a copy to the Collateral Agent).

 

(b)           Contents of Approval Requests.  Each Approval Request shall consist of one or more electronic submissions to the Administrative Agent (transmitted in such a manner as the Administrative Agent may specify to the Investment Manager and the Company from time to time), shall be substantially in the form attached as Schedule 2 hereto and shall be accompanied by such other information as the Administrative Agent may reasonably request.

 

(c)           [RESERVED].

 

(d)           Right of the Administrative Agent to Approve Approval Requests.  The Administrative Agent shall have the right, on behalf of all Financing Providers, in its sole and absolute discretion, to Approve or not Approve any Approval Request and to request additional information regarding any proposed Portfolio Investment.  The Administrative Agent shall notify

 

23

 

the Investment Manager and the Company (including via e-mail or other electronic messaging system) of its Approval or failure to Approve each Approval Request (and, if Approved, an initial determination of the Market Value for the related Portfolio Investment) no later than the fifth (5th) Agent Business Day succeeding the date on which it receives such Approval Request and any information reasonably requested in connection therewith; provided that any Portfolio Investments acquired by the Company pursuant to the Sale Agreement on the date hereof shall be deemed to be approved by the Administrative Agent.  With respect to any Approved Approval Request, the Administrative Agent shall promptly forward such request to the Lenders and the Collateral Agent, together with a preliminary indication of the amount and type of Financing that each Lender is being asked to provide in connection therewith.

 

Section 1.03.         Conditions to Purchases or Substitutions.

 

No Purchase Commitment, Purchase or Substitution shall be entered into unless each of the following conditions is satisfied (or waived as provided below) as of the date on which such Purchase Commitment is entered into (such Portfolio Investment’s “Trade Date”) or the Company consummates a Substitution (the “Substitution Date”) (and such Portfolio Investment shall not be Purchased and no Substitution shall occur, and the related Financing shall not be required to be made available to the Company by the applicable Financing Providers, unless each of the following conditions is satisfied or waived as of such Trade Date or Substitution Date, as applicable):

 

(1)           the related Trade Date or Substitution Date is not later than ten (10) Agent Business Days after the date on which the Administrative Agent has Approved or not Approved the related Approval Request;

 

(2)           the related Approval Request accurately describes in all material respects such Portfolio Investment and such Portfolio Investment satisfies the Eligibility Criteria;

 

(3)           in the case of a Purchase, the proposed Settlement Date for such Portfolio Investment is not later than 20 Agent Business Days following the last day of the Reinvestment Period;

 

(4)           no Event of Default or event that, with notice or lapse of time or both, would constitute an Event of Default (a “Default”), in each case, has occurred and is continuing and no Coverage Event has occurred;

 

(5)           after giving effect to the Purchase or Substitution of such Portfolio Investment and the related provision of Financing (if any) hereunder:

 

(w)          the Compliance Condition is satisfied;

 

(x)           the Concentration Limitations are satisfied;

 

(y)           the aggregate amount of Financings then outstanding will not exceed the limit set forth in the Transaction Schedule; and

 

24

 

(z)           in the case of a Purchase, the amount of any Financing requested shall be not less than U.S. $3,000,000;

 

The Administrative Agent, on behalf of the Financing Providers, may waive any condition to a Purchase or Substitution specified above in this Section 1.03 by written notice thereof to the Company, the Collateral Administrator, the Investment Manager and the Collateral Agent.

 

If the above conditions to a Purchase are satisfied or waived, the Investment Manager shall determine, in consultation with the Administrative Agent and with notice to any applicable Financing Providers and the Collateral Administrator, the date on which such Purchase shall settle (the “Settlement Date” for such Portfolio Investment) and on which any related Financing shall be provided.

 

Section 1.04.         Sales of Portfolio Investments.

 

The Company will not sell, transfer or otherwise dispose of any Portfolio Investment or any other asset without the prior consent of the Administrative Agent (acting at the direction of the Required Financing Providers), except that, (i) the Company may make Permitted Distributions in accordance with this Agreement and (ii) the Company (or the Investment Manager on its behalf) may, subject to the limitations set forth in Section 1.07 hereof and Section 5.01(n)(iii) of the Sale Agreement, sell any Portfolio Investment, Ineligible Investment or other asset so long as such sale is on an arm’s length basis (other than with respect to Warranty Portfolio Investments) and in accordance with the Investment Manager’s standard market practices and, after giving effect thereto, no Coverage Event has occurred and no Default or Event of Default has occurred and is continuing.  The Company may sell any Warranty Portfolio Investments to the Parent pursuant to the terms of the Sale Agreement.

 

Notwithstanding anything in this Agreement to the contrary: (i) following the occurrence and during the continuance of an Event of Default, the Company shall have no right to cause the sale, transfer or other disposition of a Portfolio Investment or any other asset (including, without limitation, the transfer of amounts on deposit in the Accounts) without the consent of the Administrative Agent, (ii) following the occurrence of a Coverage Event, the Company shall use commercially reasonable efforts to sell any or all of the Collateral (individually or in lots, including a lot comprised of all of the Portfolio Investments) at the sole direction of, and in the manner (including, without limitation, the time of sale, sale price, principal amount to be sold and purchaser) required by the Administrative Agent (provided that each such sale shall be made at the direction of the Required Financing Providers) at then-current fair market values and in accordance with the Administrative Agent’s standard market practices, and the proceeds thereof shall be deposited into the CE Cure Account, (iii) following the occurrence of a Coverage Event, the Investment Manager shall have no right to act on behalf of, or otherwise direct, the Company, the Administrative Agent, the Collateral Agent or any other person in connection with a sale of Portfolio Investments pursuant to any provision of this Agreement and (iv) in connection with any Coverage Event Cure, the Company shall cause the Investment Manager to use its best efforts to effect an assignment of any Portfolio Investment within the applicable time period specified in the definition of Coverage Event Cure; provided that in connection with any sale of Portfolio Investments required by the Administrative Agent (or the Required Financing

 

25

 

Providers) pursuant to (x) the preceding clause (ii) or (y) Section 8.02(c) following the occurrence of an Event of Default, in connection with such sale, the applicable Agent shall (a) use commercially reasonable efforts to solicit a bid for such Portfolio Investments from the Designated Independent Broker-Dealer, (b) use reasonable efforts to notify the Company at the Designated Email Notification Address promptly upon distribution of bid solicitations regarding the sale of such Portfolio Investments and (c) sell such Portfolio Investments to the Designated Independent Broker-Dealer if the Designated Independent Broker-Dealer provides the highest bid in the case where bids are received in respect of the sale of such Portfolio Investments, it being understood that if the Designated Independent Broker-Dealer provides a bid to the applicable Agent that is the highest bona fide bid to purchase a Portfolio Investment on a line-item basis where such Portfolio Investment is part of a pool of Portfolio Investments for which there is a bona fide bid on a pool basis proposed to be accepted by the applicable Agent (in its sole discretion), then the applicable Agent shall accept any such line-item bid only if such line-item bid (together with any other line-item bids by the Designated Independent Broker-Dealer or any other bidder for other Portfolio Investments in such pool) is greater than the bid on a pool basis.  For purposes of this paragraph, the applicable Agent shall be entitled to disregard as invalid any bid submitted by any Independent Broker-Dealer if, in such Agent’s good faith judgment: (i) either (x) such Independent Broker-Dealer is ineligible to accept assignment or transfer of the relevant Portfolio Investments or any portion thereof, as applicable, substantially in accordance with the then-current market practice in the principal market for the relevant Portfolio Investments or (y) such Independent Broker-Dealer would not, through the exercise of its commercially reasonable efforts, be able to obtain any consent required under any agreement or instrument governing or otherwise relating to the relevant Portfolio Investments to the assignment or transfer of the relevant Portfolio Investments or any portion thereof, as applicable, to it; or (ii) such bid is not bona fide, including, without limitation, due to (x) the insolvency of the Independent Broker-Dealer or (y) the inability, failure or refusal of the Independent Broker-Dealer to settle the purchase of the relevant Portfolio Investments or any portion thereof, as applicable, or otherwise settle transactions in the relevant market or perform its obligations generally.

 

Following the occurrence of a Coverage Event or an Event of Default, in connection with any sale of a Portfolio Investment directed by the Administrative Agent pursuant to this Section 1.04 and the application of the net proceeds thereof, the Company hereby appoints the Administrative Agent as the Company’s attorney-in-fact (it being understood that the Administrative Agent shall not be deemed to have assumed any of the obligations of the Company by this appointment), with full authority in the place and stead of the Company and in the name of the Company to effectuate the provisions of this Section 1.04 (including, without limitation, the power to execute any instrument which the Administrative Agent or the Required Financing Providers may deem necessary or advisable to accomplish the purposes of this Section 1.04 or any direction or notice to the Collateral Agent in respect to the application of net proceeds of any such sales).  None of the Administrative Agent, the Financing Providers, the Collateral Administrator, the Securities Intermediary, the Collateral Agent nor any affiliate of any thereof shall incur any liability to the Company, the Investment Manager or any other person in connection with any sale effected at the direction of the Administrative Agent in accordance with this Section 1.04, including, without limitation, as a result of the price obtained for any Portfolio Investment, the timing of any sale or sales of Portfolio Investments or the notice or lack

 

26

 

of notice provided to any person in connection with any such sale, so long as, in the case of the Administrative Agent only, any such sale does not violate Applicable Law.

 

After the termination of the Financing Commitments and the payment in full in cash of the Secured Obligations, any remaining proceeds of any sale or transfer of the Collateral shall be delivered to the Company.

 

Section 1.05.         Review of Portfolio Investments.

 

The Company (or the Investment Manager on its behalf), acting in good faith and in a commercially reasonable manner, may dispute the Market Value of some or all of the Portfolio Investments.  By no later than 10:00 a.m., New York City time, on the Business Day immediately following the related date of determination, the Company may (x) obtain an Independent Bid from at least two Independent Broker-Dealers or (y) with respect to up to three Portfolio Investments per calendar quarter, engage a Nationally Recognized Valuation Provider, at the expense of the Company, to provide a valuation of the applicable Portfolio Investment and submit evidence of such valuation to the Administrative Agent; provided that the Company may not dispute the Market Value of the same Portfolio Investment under both clause (x) and clause (y) simultaneously.  Upon satisfaction of clause (x) or clause (y) above (subject, in the case of clause (x), to the terms of the immediately succeeding paragraph), the value established will be the Market Value for the applicable Portfolio Investment from and after (but not earlier than) delivery of notice of such value to the Administrative Agent; provided that, on any date other than the date on which a Market Value was established under clause (x) or clause (y) above, the Administrative Agent may determine in good faith and in a commercially reasonable manner that the Market Value for the applicable Portfolio Investment has changed, in which case the Administrative Agent may determine another Market Value (in accordance with this definition of Market Value).

 

Each Independent Bid must be maintained by the applicable Independent Broker-Dealer and actionable for the Administrative Agent before 12:00 noon, New York City time, on such next Business Day.  If the Company obtains Independent Bids and submits to the Administrative Agent evidence of two such Independent Bids no later than 10:00 a.m., New York City time, on such next Business Day, then the average of such Independent Bids shall be used to determine the Market Value of such Portfolio Investment.  Notwithstanding the foregoing, the Administrative Agent shall be entitled to disregard as invalid any Independent Bid submitted by any Independent Broker-Dealer if, in the Administrative Agent’s good faith judgment: (i) such Independent Broker-Dealer is ineligible to accept assignment or transfer of the relevant Portfolio Investment or portion thereof, as applicable, substantially in accordance with the then-current market practice in the principal market for such Portfolio Investment, as reasonably determined by the Administrative Agent; or (ii) such firm bid or such firm offer is not bona fide due to the insolvency of the Independent Broker-Dealer.

 

For the avoidance of doubt, the Market Value of any (i) Portfolio Investment that has not been Approved by the Administrative Agent or (ii) Ineligible Investment shall be $0 and cannot be disputed.

 

27

 

Section 1.06.         Substitutions.  The Company may, subject to the limitations set forth in Section 1.07 hereof and Section 5.01(n)(iii) of the Sale Agreement, replace a Portfolio Investment with another Portfolio Investment (each such replacement, a “Substitution” and such new Portfolio Investment, a “Substitute Portfolio Investment”) so long as the Company has submitted an Approval Request and the Substitute Portfolio Investment has been approved by the Administrative Agent in its sole discretion (which approval or refusal to approve may be based on the Administrative Agent’s assessment of the credit quality of the original Portfolio Investment and the proposed Substitute Portfolio Investment) and all other applicable conditions precedent set forth in Section 1.03 have been satisfied with respect to each Substitute Portfolio Investment to be acquired by the Company in connection with such Substitution; provided that after the Reinvestment Period, the aggregate outstanding balance of Portfolio Investments in the Portfolio subject to a Substitution may not exceed 20% of the aggregate Financing Commitments in effect during the Reinvestment Period.  Notwithstanding anything to the contrary in this Agreement, in no event shall the aggregate outstanding balance of Portfolio Investments in the Portfolio subject to a Substitution, together with the aggregate outstanding balance of Portfolio Investments sold to the Parent or its Affiliates by the Company (in each case other than in connection with the sale or Substitution of a Warranty Portfolio Investment), exceed 20% of the Net Purchased Loan Balance measured as of the date of such sale or Substitution; provided further that in no event shall the aggregate outstanding balance of Portfolio Investments in the Portfolio that are in default and subject to a Substitution, together with the aggregate outstanding balance of Portfolio Investments that are in default and sold to the Parent or its Affiliates by the Company (in each case other than in connection with the sale or Substitution of a Warranty Portfolio Investment), exceed 10% of the Net Purchased Loan Balance measured as of the date of such sale or Substitution.

 

Section 1.07.         Repurchase Limits.  Notwithstanding anything to the contrary in this Agreement, in no event shall the aggregate outstanding balance of Portfolio Investments in the Portfolio subject to a Substitution, together with the aggregate outstanding balance of Portfolio Investments sold to the Parent or its Affiliates by the Company (in each case other than in connection with the sale or Substitution of a Warranty Portfolio Investment), exceed 20% of the Net Purchased Loan Balance measured as of the date of such sale or Substitution; provided further that in no event shall the aggregate outstanding balance of Portfolio Investments in the Portfolio that are in default and subject to a Substitution, together with the aggregate outstanding balance of Portfolio Investments that are in default and sold to the Parent or its Affiliates by the Company (in each case other than in connection with the sale or Substitution of a Warranty Portfolio Investment), exceed 10% of the Net Purchased Loan Balance measured as of the date of such sale or Substitution.

 

Section 1.08.         Deposits and Contributions by Parent.  Notwithstanding any other provision of this Agreement, Parent may, from time to time in its sole discretion, (x) deposit amounts in U.S. dollars into the USD Principal Collection Account, and/or (y) transfer Portfolio Investments approved in writing by the Administrative Agent (in its sole discretion) as equity contributions to the Company pursuant to the Sale Agreement.  All such amounts will be included in each applicable calculation to the extent provided under this Agreement, including, without limitation, calculation of Market Value, Net Asset Value, the Compliance Condition and Coverage Events.

 

28

 

Section 1.09.         Valuation of Permitted Non-USD Currency Assets.  For purposes of all calculations hereunder, (i) the principal amount of all Euro Investments (and Eligible Investments denominated in Euros) and proceeds denominated in Euro on deposit in any Account and (ii) the principal amount of all GBP Investments (and Eligible Investments denominated in GBP) and proceeds denominated in GBP on deposit in any Account, in each case, shall be converted to U.S. dollars at the Spot Rate in accordance with the definition of such term in consultation with the Administrative Agent on the applicable date of calculation.

 

ARTICLE II

 

THE FINANCINGS

 

Section 2.01.         Financing Commitments.

 

Subject to the terms and conditions set forth herein, during the Reinvestment Period, each Financing Provider hereby severally agrees to make available to the Company the types of Financing identified on the Transaction Schedule as applicable to such Financing Provider, in U.S. dollars, in an aggregate amount, for such Financing Provider and such type of Financing, not exceeding the amount of its Financing Commitment for such type of Financing.  The Financing Commitments shall terminate on the Maturity Date (or, if earlier, the date of termination of the Financing Commitments pursuant to Article VII or upon a Coverage Event).

 

Section 2.02.         First Advance; Additional Advances.

 

(a)           Subject to the satisfaction or waiver of the conditions set forth in Sections 2.03 and 2.04, each Financing Provider as of the Effective Date agrees, severally and not jointly, to make or cause to be made on the Effective Date, an advance in an aggregate principal amount equal to $39,000,000 subject to the conditions set forth in this Agreement (the “First Advance”).  Each Financing Provider shall make its portion of the First Advance available to the Company no later than 3:00 p.m. (New York City time) on the Effective Date in accordance with the terms set forth in Section 3.01.

 

(b)           On any date during the term of the Reinvestment Period, subject to the conditions set forth in this Agreement, the Company may request, and the Financing Providers may provide, additional Advances.

 

Section 2.03.         Financings; Use of Proceeds.

 

(a)           Subject to the satisfaction or waiver of the conditions to the Purchase of a Portfolio Investment set forth in Section 1.03 both as of the related Trade Date and Settlement Date, the applicable Financing Providers will make the applicable Financing available to the Company on the related Settlement Date (or otherwise on the related specified borrowing date if no Portfolio Investment is being acquired on such date) as provided herein; provided that, if no Portfolio Investment is being acquired on such date, only the conditions set forth in clauses (4) and (5) of Section 1.03 shall require satisfaction or waiver.

 

(b)           Except as expressly provided herein, the failure of any Financing Provider to make any Advance required hereunder shall not relieve any other Financing Provider of its

 

29

 

obligations hereunder.  If any Financing Provider shall fail to provide any Financing to the Company required hereunder, then the Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), apply any amounts thereafter received by the Administrative Agent for the account of such Financing Provider to satisfy such Financing Provider’s obligations hereunder until all such unsatisfied obligations are fully paid.

 

(c)           Subject to Section 2.03(e), the Company shall use the proceeds of the Financings received by it hereunder to purchase the Portfolio Investments identified in the related Approval Request, provided that, if the proceeds of a Financing are deposited in the USD Principal Collection Account as provided in Section 3.01 on or prior to the Settlement Date for any Portfolio Investment but the Company is unable to Purchase such Portfolio Investment on such Settlement Date, or if there are proceeds of such Financing remaining after such Purchase, then, subject to Section 3.01(a), the Collateral Agent shall apply such proceeds on such date as provided in Article IV.  The proceeds of the Financings shall not be used for any other purpose.

 

(d)           With respect to any Advance, the Company shall cause the Investment Manager to submit a request substantially in the form of Exhibit A to the Lenders and the Administrative Agent, with a copy to the Collateral Agent and the Collateral Administrator, not later than 2:00 p.m. New York City time, two (2) Business Days prior to the Business Day specified as the date on which such Advance shall be made and, upon receipt of such request, the Lenders shall make such Advances in accordance with the terms set forth in Section 3.01.  Any requested Advance shall be (i) if applicable, in an amount such that, after giving effect thereto and the related purchase of the applicable Portfolio Investment(s), the Compliance Condition is satisfied; provided that the Compliance Condition will not be applicable with respect to the First Advance used principally to acquire Portfolio Investments from the Parent, and (ii) if related to the Purchase of any Portfolio Investment, no later than ten (10) Agent Business Days after the date on which the Administrative Agent Approved the related Approval Request in accordance herewith.

 

(e)           If, the aggregate principal amount of the outstanding Advances (assuming that Advances have been made for any outstanding Purchase Commitments which have traded but not settled) is less than (i) $100,000,000 on June 17, 2016 or (ii) $150,000,000 on September 17, 2016 (each, a “Minimum Funding Amount”), then the Investment Manager (on behalf of the Company) shall be deemed to have requested a Financing on each such date such that, after the funding thereof, the aggregate principal amount of the outstanding Advances (assuming that Advances have been made for any outstanding Purchase Commitments which have traded but not settled) is equal to the applicable Minimum Funding Amount.  Unless a Default or an Event of Default shall have occurred and is continuing or a Coverage Event shall have occurred, the Lenders shall make a corresponding Advance in accordance with Article III on each such date (or, if either such date is not a Business Day, the next succeeding Business Day), such that after the funding thereof, the aggregate principal amount of the outstanding Advances (assuming that Advances have been made for any outstanding Purchase Commitments which have traded but not settled) is equal to the applicable Minimum Funding Amount.

 

30

 

Section 2.04.         Other Conditions to Financings.

 

Notwithstanding anything to the contrary herein, the obligations of the Lenders to make Advances shall not become effective until the date (the “Effective Date”) on which each of the following conditions is satisfied (or waived by the Administrative Agent in its sole discretion):

 

(a)           Executed Counterparts.  The Administrative Agent (or its counsel) shall have received from each party hereto either (i) a counterpart of this Agreement signed on behalf of such party or (ii) written evidence satisfactory to the Administrative Agent (which may include electronic transmission of a signed signature page of this Agreement) that such party has signed a counterpart of this Agreement.

 

(b)           Loan Documents.  The Administrative Agent shall have received satisfactory evidence that the Sale Agreement, the Collateral Administration Agreement, the Security Deed, the Custody and Account Bank Agreement and the Investment Management Agreement (such documents, together with this Agreement, the “Loan Documents”) have been executed and are in full force and effect, and that the initial sales and contributions contemplated by the Sale Agreement shall have been consummated.

 

(c)           Corporate Documents.  The Administrative Agent shall have received certified copies of the resolutions of the board of managers (or similar items) of the Company and the Investment Manager approving the Loan Documents to be delivered by it hereunder and the transactions contemplated hereby, certified by its secretary or assistant secretary.  Good standing certificates for each of the Company and the Investment Manager issued by the applicable Governmental Authority of its jurisdiction of organization.  A certificate of the secretary or assistant secretary of each of the Company and the Investment Manager certifying the names and true signatures of the officers authorized on its behalf to sign this Agreement and the other Loan Documents to be delivered by it.

 

(d)           Payment of Fees, Etc.  The Administrative Agent, the Lenders, the Collateral Agent and the Collateral Administrator shall have received all fees and other amounts due and payable by the Company in connection herewith on or prior to the Effective Date and, to the extent invoiced, reimbursement or payment of all reasonable out-of-pocket expenses (including legal fees and expenses) required to be reimbursed or paid by the Company hereunder (except as provided in Section 4.03(f)).

 

(e)           Patriot Act, Etc.  To the extent requested by the Administrative Agent or any Lender, the Administrative Agent or such Lender, as the case may be, shall have received all documentation and other information required by regulatory authorities under the USA PATRIOT Act (Title III of Pub. L. 107 56 (signed into law October 26, 2001)) (the “USA Patriot Act”) and other applicable “know your customer” and anti-money laundering rules and regulations.

 

(f)            Filings.  Copies of proper financing statements, as may be necessary or, in the opinion of the Administrative Agent, desirable under the UCC of all appropriate jurisdictions or any comparable law to perfect the security interest of the Collateral Agent on behalf of the Secured Parties in all Collateral in which an interest may be pledged hereunder.

 

31

 

(g)           Certain Acknowledgements and Search Reports.  The Administrative Agent shall have received (a) UCC, tax and judgment lien searches and (b) such other searches that the Administrative Agent deems necessary or appropriate.

 

(h)           Officers’ Certificates of the Company Regarding This Agreement.  An officer’s certificate of the Company stating that, to the best of the signing officer’s knowledge, there has been no Event of Default under this Agreement and that all representations and warranties of the Company are true and correct in all material respects as of the Effective Date (provided that to the extent such representations and warranties specifically refer to an earlier date, they shall be true and correct in all material respects as of such earlier date).

 

(i)            Opinions.  Legal opinions of Dechert LLP, counsel for the Company and the Investment Manager, and counsel for the Collateral Agent, each in form and substance reasonably satisfactory to the Administrative Agent covering such matters as the Administrative Agent may reasonably request (including, without limitation, certain non-consolidation and bankruptcy matters).

 

(j)            Other Documents.  Such other documents as the Administrative Agent may reasonably require.

 

ARTICLE III

 

ADDITIONAL TERMS APPLICABLE TO THE FINANCINGS

 

Section 3.01.         The Advances.

 

(a)           Making the Advances.  If the Lenders are required to make an Advance to the Company as provided in Sections 2.02 and 2.03, then each Lender shall make such Advance on the proposed date thereof by wire transfer of immediately available funds by 12:00 noon (or 3:00 p.m. with respect to the First Advance), New York City time, to the Collateral Agent for deposit to the USD Principal Collection Account.  Each Lender at its option may make any Advance by causing any domestic or foreign branch or affiliate of such Lender to make such Advance, provided that any exercise of such option shall not affect the obligation of the Company to repay such Advance in accordance with the terms of this Agreement.  Once drawn, Advances may only be repaid or prepaid in accordance with this Agreement and may not be reborrowed.

 

(b)           Interest on the Advances.  All outstanding Advances shall bear interest (from and including the date on which such Advance is made) at a per annum rate equal to the LIBO Rate for each Calculation Period in effect plus the Applicable Margin.  Notwithstanding the foregoing, if any principal of or interest on any Advance is not paid when due, whether at stated maturity, upon acceleration or otherwise, such overdue amount shall bear interest, after as well as before judgment, at a rate per annum equal to 2% plus the rate otherwise applicable to the Advances as provided in the preceding sentence.

 

(c)           Evidence of the Advances.  Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Company to such Lender resulting from each Advance made by such Lender, including the amounts of principal

 

32

 

and interest payable and paid to such Lender from time to time hereunder.  The Administrative Agent, acting solely for this purpose as an agent of the Company, shall maintain at one of its offices in the United States a register (the “Register”) in which it shall record the names and addresses of the Lenders and the Financing Commitment of, and principal amount of the Advances (and related interest amounts) due and payable or to become due and payable from the Company to each Lender hereunder and the amount of any sum received by the Administrative Agent hereunder for the account of the Lenders and each Lender’s share thereof.  The entries made in the Register shall be conclusive absent manifest error, and the parties hereto shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender and the owner of the amounts owing to it hereunder as reflected in the Register for all purposes of this Agreement, notwithstanding notice to the contrary.

 

Any Lender may request that Advances made by it be evidenced by a promissory note.  In such event, the Company shall prepare, execute and deliver to such Lender a promissory note payable to such Lender (or its registered assigns) and in a form approved by the Administrative Agent.  Notwithstanding the creation of a promissory note, any transfer of an interest in such note shall not be effective until reflected in the Register.  Thereafter, the Advances evidenced by such promissory note and interest thereon shall at all times be represented by one or more promissory notes in such form payable to such payee and its registered assigns.

 

(d)           Pro Rata Treatment.  Except as otherwise provided herein, all borrowings of, and payments in respect of, the Advances shall be made on a pro rata basis by or to the Lenders in accordance with their respective portions of the Financing Commitments in respect of Advances held by them.

 

(e)           Illegality.  Notwithstanding any other provision of this Agreement, if any Lender or the Administrative Agent shall notify the Company that any Change in Law makes it unlawful, or any central bank or other governmental authority asserts that it is unlawful, for a Lender or the Administrative Agent to perform its obligations hereunder to fund or maintain Advances hereunder, then (1) the obligation of such Lender or the Administrative Agent hereunder shall immediately be suspended until such time as such Lender or the Administrative Agent determines (in its sole discretion) that such performance is again lawful, (2) such Lender or the Administrative Agent, as applicable, shall use reasonable efforts (which will not require such party to incur a loss, other than immaterial, incidental expenses), to transfer within twenty (20) days after it gives notice under this clause (e), all of its rights and obligations under this Agreement to another of its offices, branches or affiliates with respect to which such performance would not be unlawful, and (3) if such Lender or the Administrative Agent is unable to effect a transfer under clause (2), then any outstanding Advances of such Lender shall be promptly paid in full by the Company (together with all accrued interest and other amounts owing hereunder) but not later than the end of the then-current Calculation Period (or, if sooner repayment is required by law, be repaid within ten (10) Business Days of such Lender giving the Company notice thereof); provided that, to the extent that any such adoption or change makes it unlawful for the Advances to bear interest by reference to the LIBO Rate, then the foregoing clauses (1) through (3) shall not apply and the Advances shall bear interest (from and after the last day of the Calculation Period ending immediately after such adoption or change) at a per annum rate equal to the Base Rate plus the Applicable Margin for Advances.

 

33

 

(f)            Change in Law.

 

(i)  If any Change in Law shall:

 

(A)  impose, modify or deem applicable any reserve, special deposit, liquidity or similar requirement (including any compulsory loan requirement, insurance charge or other assessment) against assets of, deposits with or for the account of, or credit extended by, any Lender;

 

(B)  impose on any Lender or the London interbank market any other condition, cost or expense (other than Taxes) affecting this Agreement or Advances made by such Lender; or

 

(C)  subject any Lender or the Administrative Agent to any Taxes (other than (A) Indemnified Taxes, (B) Excluded Taxes and (C) Other Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto;

 

and the result of any of the foregoing shall be to increase the cost to such Lender or the Administrative Agent of making, continuing, converting or maintaining any Advance or to reduce the amount of any sum received or receivable by such Lender or the Administrative Agent hereunder (whether of principal, interest or otherwise), then the Company will pay to such Lender or the Administrative Agent, as the case may be, such additional amount or amounts as will compensate such Lender or the Administrative Agent, as the case may be, for such additional costs incurred or reduction suffered.

 

(ii)  If any Lender determines that any Change in Law regarding capital or liquidity requirements has or would have the effect of reducing the rate of return on such Lender’s capital or on the capital of such Lender’s holding company, if any, as a consequence of this Agreement or the Advances made by such Lender to a level below that which such Lender or such Lender’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s policies and the policies of such Lender’s holding company with respect to capital adequacy and liquidity) by an amount deemed by such Lender to be material (which demand shall be accompanied by a statement setting forth the basis for such demand), then from time to time the Company will pay to such Lender such additional amount or amounts as will compensate such Lender or such Lender’s holding company for any such reduction suffered.

 

(iii)  A certificate of a Lender setting forth the amount or amounts necessary to compensate such Lender or its holding company, as the case may be, as specified in paragraph (i) or (ii) of this Section shall be delivered to the Company and shall be conclusive absent manifest error.  The Company shall pay such Lender the amount shown as due on any such certificate within 10 days after receipt thereof.

 

(iv)          Failure or delay on the part of any Lender to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s right to demand such compensation; provided that the Company shall not be required to compensate a Lender pursuant to this Section for any increased costs or reductions incurred more than

 

34

 

180 days prior to the date that such Lender notifies the Company of the Change in Law giving rise to such increased costs or reductions and of such Lender’s intention to claim compensation therefor; provided further that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the 180-day period referred to above shall be extended to include the period of retroactive effect thereof.

 

(v)           Each Lender agrees that it will take such commercially reasonable actions as the Company may reasonably request that will avoid the need to pay, or reduce the amount of, any increased amounts referred to in this Section 3.01(f); provided that no Lender shall be obligated to take any actions that would, in the reasonable opinion of such Lender, be disadvantageous to such Lender (including, without limitation, due to a loss of money).  In no event will the Company be responsible for increased amounts referred to in this Section 3.01(f) which relates to any other entities to which any Lender provides financing.

 

All payments to be made hereunder by the Company in respect of the Advances shall be made without set-off or counterclaim.

 

Section 3.02.         General.

 

The provisions of Section 3.01 and any other provisions relating to the types of Financings contemplated by each such section shall not be operative until and unless such types of Financing have been made available to the Company, as evidenced by the Transaction Schedule.

 

Section 3.03.         Taxes.

 

(a)           Payments Free of Taxes.  All payments to be made hereunder by the Company in respect of the Advances shall be made without deduction or withholding for any Taxes, except as required by Applicable Law.  If any Applicable Law requires the deduction or withholding of any Tax from any such payment by the Company, then the Company shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with Applicable Law and, if such Tax is an Indemnified Tax, then the sum payable by the Company shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section) the applicable Lender receives an amount equal to the sum it would have received had no such deduction or withholding been made.

 

(b)           Payment of Other Taxes by the Company.  Without duplication of other amounts payable by the Company under this Section 3.03, the Company shall timely pay to the relevant Governmental Authority in accordance with Applicable Law, or at the option of the Administrative Agent or the Collateral Agent timely reimburse them for the payment of, any Other Taxes.

 

(c)           Indemnification by the Company.  The Company shall indemnify each Lender, within ten (10) Business Days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to

 

35

 

amounts payable under this Section) payable or paid by such Lender and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or liability delivered to the Company by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

 

(d)           Indemnification by the Lenders.  Each Lender shall indemnify, within ten (10) days after demand therefor, (i) the Administrative Agent for any Indemnified Taxes attributable to such Lender (but only to the extent that the Company has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Company to do so), and (ii) the Administrative Agent for any (A) Taxes attributable to such Lender’s failure to comply with the provisions of 10.08 relating to the maintenance of a Participant Register and (B) Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error.  Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this paragraph (d).

 

(e)           Evidence of Payments.  As soon as practicable after any payment of Taxes by the Company to a Governmental Authority pursuant to this Section 3.03, the Company shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.

 

(f)            Status of Lenders.  (i) Any Recipient that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Company and the Administrative Agent, at the time or times reasonably requested by the Company or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Company or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding.  In addition, any Lender, if reasonably requested by the Company or the Administrative Agent, shall deliver such other documentation prescribed by Applicable Law or reasonably requested by the Company or the Administrative Agent as will enable the Company or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements.

 

(ii)           Without limiting the generality of the foregoing,

 

(A)          any Recipient that is a U.S. Person shall deliver to the Company and the Administrative Agent on or prior to the date on which such Recipient becomes a Recipient under this Agreement (and from time to time thereafter upon the reasonable request of the Company or

 

36

 

the Administrative Agent), an executed IRS Form W-9 certifying that such Recipient is exempt from U.S. federal backup withholding Tax;

 

(B)          any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Company and the Administrative Agent on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Company or the Administrative Agent or any information in a previously provided form changes), whichever of the following is applicable:

 

(i)            in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Loan Document, an executed IRS Form W-8BEN, W-8BEN-E, W-8EXP or applicable successor form establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “interest” article of such Tax treaty and (y) with respect to any other applicable payments under any Loan Document, an IRS Form W-8BEN, W-8BEN-E or W-8EXP or applicable successor form establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “business profits” or “other income” article of such Tax treaty;

 

(ii)           an executed IRS Form W-8ECI;

 

(iii)          in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate to the effect that such Foreign Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, is not a “10 percent shareholder” of the Company within the meaning of Section 881(c)(3)(B) of the Code, and is not a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance Certificate”) and (y) an executed IRS Form W-8BEN, W-8BEN-E or applicable successor form; or

 

(iv)          to the extent a Foreign Lender is not the beneficial owner, an executed IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, IRS Form W-8BEN-E or applicable successor form, a U.S. Tax Compliance Certificate, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable;

 

(C)          any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Company and the Administrative Agent on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Company or the Administrative Agent), executed originals of any other form prescribed by Applicable Law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by Applicable Law to permit the Company or the Administrative Agent to determine the withholding or deduction required to be made; and

 

37

 

(D)          if a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Company and the Administrative Agent at the time or times prescribed by Law and at such time or times reasonably requested by the Company or the Administrative Agent such documentation prescribed by FATCA and such additional documentation reasonably requested by the Company or the Administrative Agent as may be necessary for the Company and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment.  Solely for purposes of this clause (D), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.

 

Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Company and the Administrative Agent in writing of its legal inability to do so.

 

(g)           Treatment of Certain Refunds.  If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes or credit in lieu thereof as to which it has been indemnified pursuant to this Section 3.03 (including by the payment of additional amounts pursuant to this Section 3.03), it shall pay to the indemnifying party an amount equal to such refund or credit (but only to the extent of indemnity payments made under this Section with respect to the Taxes giving rise to such refund or credit), net of reasonable out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund or credit).  Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this paragraph (g) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund or credit to such Governmental Authority.  Notwithstanding anything to the contrary in this paragraph (g), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this paragraph (g) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the indemnification payments or additional amounts giving rise to such refund or credit had never been paid.  This paragraph shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

 

(h)           Administrative Agent’s Tax Status. The Administrative Agent represents to the Company that it is a “U.S. person” and a “financial institution” within the meaning of Treasury Regulations Section 1.1441-1 and a “U.S. financial institution” within the meaning of Treasury Regulations Section 1.1471-3T and that it will comply with its obligations to withhold under Section 1441 and FATCA.

 

(i)            Survival.  Each party’s obligations under this Section 3.03 shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the

 

38

 

replacement of, a Lender, and the termination, satisfaction or discharge of all obligations under any Loan Document.

 

Section 3.04.         Mitigation Obligations.

 

(a)           Designation of a Different Office.  If any Recipient requests compensation under Section 3.01(f), or requires the Company to pay any Indemnified Taxes or additional amounts to any Recipient or any Governmental Authority for the account of any Recipient pursuant to Section 3.03, then such Recipient shall at the request of the Company use reasonable efforts to designate a different office for funding or booking the Advances hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Recipient, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 3.01(f) or Section 3.03, as the case may be, in the future, and (ii) would not subject such Recipient to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Recipient. The Company hereby agrees to pay all reasonable costs and expenses incurred by any Recipient in connection with any such designation or assignment.

 

(b)           Replacement of Recipient.  If any Recipient requests compensation under Section 3.01(f), or if the Company is required to pay any Indemnified Taxes or additional amounts to any Recipient or any Governmental Authority for the account of any Recipient pursuant to Section 3.03 and, in each case, such Recipient has declined or is unable to designate a different lending office in accordance with Section 3.04(a) or such designation would not eliminate the need for such payments, or if any Lender is a defaulting Lender, then the Company may, at its sole expense and effort, upon notice to such Recipient and the Administrative Agent, require such Recipient to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 10.08), all of its interests, rights (other than its existing rights to payments pursuant to Section 3.01(f) or Section 3.03) and obligations under this Agreement and the related Loan Documents to an assignee that shall assume such rights and obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that:

 

(i)            such Lender shall have received payment of an amount equal to the outstanding principal of its Advances, accrued interest thereon, and all other amounts payable to it hereunder and under the other Loan Documents from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Company (in the case of all other amounts);

 

(ii)           in the case of any such assignment resulting from a claim for compensation under Section 3.01(f) or gross-up payments under Section 3.03, such assignment will result in a reduction in such compensation or payments thereafter; and

 

(iii)          such assignment does not conflict with Applicable Law.

 

No Lender shall be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise,

 

39

 

the circumstances entitling the Company to require such assignment and delegation cease to apply.

 

ARTICLE IV

 

COLLECTIONS AND PAYMENTS

 

Section 4.01.         Interest Proceeds.

 

The Company shall cause all Interest Proceeds on the Portfolio Investments owned by it to be deposited in the USD Interest Collection Account or remitted to the Collateral Agent, and the Collateral Agent shall credit to the USD Interest Collection Account all Interest Proceeds received by it immediately upon receipt thereof; provided that Interest Proceeds denominated in Permitted Non-USD Currencies shall be deposited into the Euro Interest Collection Account or the GBP Interest Collection Account, as applicable.

 

All Interest Proceeds shall be retained in the USD Interest Collection Account, the Euro Interest Collection Account or the GBP Interest Collection Account, as applicable, and invested (and reinvested) at the written direction of the Investment Manager (or, if a Coverage Event has occurred or an Event of Default has occurred and is continuing, the Administrative Agent) in Eligible Investments.  Eligible Investments shall mature no later than the end of the next succeeding Calculation Period.

 

Interest Proceeds on deposit in the USD Interest Collection Account may be withdrawn by the Collateral Agent (at the written direction of the Company or the Investment Manager on its behalf (or, upon the occurrence and during the continuance of an Event of Default or upon the occurrence of a Coverage Event, the Administrative Agent)) and applied (i) to make payments or (ii) to make Permitted Distributions, in each case, in accordance with this Agreement and with two (2) Business Days prior notice to the Administrative Agent.  Interest Proceeds on deposit in the Euro Interest Collection Account or the GBP Interest Collection Account shall be converted to U.S. dollars at the Spot Rate one (1) Business Day after receipt of such Interest Proceeds and deposited into the USD Interest Collection Account for application as described above at the written direction of the Company or the Investment Manager on its behalf (or, upon the occurrence and during the continuance of an Event of Default or upon the occurrence of a Coverage Event, the Administrative Agent).

 

The Investment Manager shall notify the Administrative Agent and the Collateral Agent if the Investment Manager reasonably determines in good faith that any amounts in the USD Interest Collection Account, the Euro Interest Collection Account or the GBP Interest Collection Account have been deposited in error or do not otherwise constitute Interest Proceeds, whereupon such amounts on deposit in such Account may be withdrawn by the Collateral Agent or Collateral Trustee, as applicable (at the direction of the Company or the Investment Manager on its behalf (or, upon the occurrence and during the continuance of an Event of Default or upon the occurrence of a Coverage Event, the Administrative Agent)) on the next succeeding Business Day and remitted to or at the direction of the Company or the Investment Manager on its behalf.

 

40

 

Section 4.02.         Principal Proceeds.

 

The Company shall cause all Principal Proceeds received on the Portfolio Investments owned by it to be deposited in the USD Principal Collection Account or remitted to the Collateral Agent, and the Collateral Agent shall credit to the USD Principal Collection Account all Principal Proceeds received by it immediately upon receipt thereof; provided that Principal Proceeds denominated in Permitted Non-USD Currencies shall be deposited into the Euro Principal Collection Account or the GBP Principal Collection Account, as applicable.

 

All Principal Proceeds shall be retained in the USD Principal Collection Account, the Euro Principal Collection Account or the GBP Principal Collection Account, as applicable, and invested (and reinvested) at the written direction of the Investment Manager (or, if a Coverage Event has occurred or an Event of Default has occurred and is continuing, the Administrative Agent) in overnight Eligible Investments.  All investment income on such Eligible Investments shall constitute Interest Proceeds.

 

Principal Proceeds on deposit in the USD Principal Collection Account may be withdrawn by the Collateral Agent (at the written direction of the Company or the Investment Manager on its behalf (or, upon the occurrence and during the continuance of an Event of Default or upon the occurrence of a Coverage Event, the Administrative Agent)) and applied (i) to make payments, (ii) towards the purchase price of Portfolio Investments or (iii) to make Permitted Distributions, in each case, in accordance with this Agreement and with, in the case of clauses (i) and (iii), two (2) Business Days prior notice to the Administrative Agent, and in the case of clause (ii), with one (1) Business Day prior notice to the Administrative Agent.  Principal Proceeds on deposit in the Euro Principal Collection Account or the GBP Principal Collection Account shall be converted to U.S. dollars at the Spot Rate one (1) Business Day after receipt of such Principal Proceeds and deposited into the USD Principal Collection Account for application as described above at the written direction of the Company or the Investment Manager on its behalf (or, upon the occurrence and during the continuance of an Event of Default or upon the occurrence of a Coverage Event, the Administrative Agent).

 

The Investment Manager shall notify the Administrative Agent and the Collateral Agent if the Investment Manager reasonably determines in good faith that any amounts in any such Account have been deposited in error or do not otherwise constitute Principal Proceeds, whereupon such amounts may be withdrawn by the Collateral Agent or Collateral Trustee, as applicable (at the direction of the Company or the Investment Manager on its behalf (or, upon the occurrence and during the continuance of an Event of Default or upon the occurrence of a Coverage Event, the Administrative Agent)) on the next succeeding Business Day and remitted to or at the direction of the Company or the Investment Manager on its behalf.

 

Section 4.03.         Principal and Interest Payments; Prepayments; Commitment Fee; Upfront Fee.

 

(a)           The unpaid aggregate principal amount of the Advances (together with accrued interest thereon) shall be paid in full in cash to the Administrative Agent for the account of each Lender on the Maturity Date and any and all cash in the Accounts shall be applied to the satisfaction of the Secured Obligations on the Maturity Date.

 

41

 

(b)           Accrued interest on the Advances shall be payable in cash in arrears on each Interest Payment Date; provided that (i) interest accrued pursuant to the second sentence of Section 3.01(b) shall be payable on demand, (ii) in the event of any repayment or prepayment of any Advances, accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment and (iii) payments on Interest Payment Dates shall be subject to the requirements of Section 9.02(e).

 

(c)           Subject to the requirements of this Section 4.03(c), the Company shall have the right from time to time to prepay outstanding Advances in whole or in part (i) on any Business Day that JPMorgan Chase Bank, National Association ceases to act as Administrative Agent, (ii) upon the occurrence of a Repayment Event, (iii) in connection with a Coverage Event Cure; (iv) if the Company elects to terminate or reduce the Financing Commitments as a result of a Lender’s default in its obligations hereunder or (v) subject to the payment of the premium described in Section 4.03(d), on the last day of any Calculation Period; provided that, the Company may not prepay any outstanding Advances pursuant to this Section 4.03(c)(v) prior to the 24-month anniversary of the date hereof.  The Company shall notify the Administrative Agent by telephone (confirmed by facsimile with a copy to the Collateral Agent and the Collateral Administrator) of any prepayment hereunder not later than 2:00 p.m., New York City time, three (3) Business Days before the date of prepayment (which shall be the last day of a Calculation Period).  Each such notice shall be irrevocable and shall specify the prepayment date and the principal amount of the Advances to be prepaid.  Promptly following receipt of any such notice, the Administrative Agent shall advise the Lenders of the contents thereof.  Except in connection with a Coverage Event Cure, each partial prepayment of outstanding Advances shall be in an amount not less than $1,000,000.  Prepayments shall be accompanied by accrued and unpaid interest.

 

(d)           Each prepayment pursuant to Section 4.03(c)(v) or optional redemption pursuant to Section 4.06, whether in full or in part, shall be accompanied by a premium equal to 1% of the principal amount of such prepayment or optional redemption, as applicable.  Notwithstanding anything in this Article IV, no premium shall be payable by the Company in the event that the Company terminates or reduces the Financing Commitments or prepays Advances outstanding hereunder, in each case as expressly permitted hereunder, (i) if JPMorgan Chase Bank, National Association ceases to act as Administrative Agent hereunder, (ii) if the Company elects to terminate or reduce the Financing Commitments as a result of a Lender’s default in its obligations hereunder, (iii) the Advances are prepaid in connection with a Coverage Event Cure, (iv) the Advances are prepaid at any time after the 36-month anniversary of the Effective Date, or (v) in connection with a Repayment Event.

 

(e)           The Company agrees to pay to the Administrative Agent, (A) from and after September 17, 2016, for the account of each Lender, a commitment fee which shall accrue at 1.00% per annum on the average daily Unused Facility Amount during the period from and including September 17, 2016, to but excluding the last day of the Reinvestment Period.  Accrued commitment fees shall be payable in arrears on each Interest Payment Date occurring after the September 17, 2016, to earlier of (i) date on which the Financing Commitments terminate and (ii) the last day of the Reinvestment Period.  All commitment fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).

 

42

 

(f)            The Company agrees to pay the Administrative Agent, on the date of the First Advance, for the account of each Lender, an upfront fee on the date hereof in an aggregate amount equal to $1,575,000.  Such amount shall be paid by retention by the Lender of a principal amount of the initial Advance equal to such amount and the Company hereby directs the Lender to so withhold such amount and acknowledges and agrees that such amount shall be deemed to be an outstanding Advance for all purposes hereunder.

 

(g)           Once paid, all fees or any part thereof payable hereunder shall not be refundable under any circumstances.

 

(h)           The Financing Commitments shall be automatically reduced in part on the date of any prepayment made in accordance with the terms of this Agreement, in each case in an amount equal to the amount of such prepayment.

 

Section 4.04.         Payments Generally.

 

All payments to the Lenders or the Administrative Agent shall be made to the Administrative Agent at the account designated in writing to the Company and the Collateral Agent for further distribution by the Administrative Agent (if applicable).  The Administrative Agent shall give written notice to the Collateral Agent and the Collateral Administrator (on which the Collateral Agent and the Collateral Administrator may conclusively rely) and the Investment Manager of the calculation of amounts payable to the Financing Providers in respect of the Financings and the amounts payable to the Investment Manager.  At least three (3) Business Days prior to each Interest Payment Date, the Administrative Agent shall deliver an invoice to the Investment Manager, the Collateral Agent and the Collateral Administrator in respect of the interest due on such Interest Payment Date.  All payments not made to the Administrative Agent for distribution to the Lenders shall be made as directed in writing by the Administrative Agent.  All payments hereunder shall be made without setoff or counterclaim.  All payments hereunder shall be made in U.S. dollars.  To the extent not already in U.S. dollars, all amounts in any Euro Account or GBP Account to be disbursed hereunder will be converted into U.S. dollars at the Spot Rate on the Business Day immediately preceding the date of disbursement.  All interest hereunder shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).

 

Section 4.05.         CE Cure Account.

 

(a)           The Company shall cause all cash received by it in connection with a Coverage Event Cure to be deposited in the CE Cure Account or remitted to the Collateral Agent, and the Collateral Agent shall credit to the CE Cure Account such amounts received by it (and identified as such) immediately upon receipt thereof.  Prior to the Maturity Date, all cash amounts in the CE Cure Account shall be invested in overnight Eligible Investments at the written direction of the Administrative Agent (as directed by the Required Financing Providers).  All amounts contributed to the Company by Parent in connection with a Coverage Event Cure shall be paid free and clear of any right of chargeback or other equitable claim.

 

43

 

(b)           Amounts on deposit in the CE Cure Account may be withdrawn by the Collateral Agent (at the written direction of the Company or the Investment Manager on its behalf (or, upon the occurrence and during the continuance of an Event of Default or upon the occurrence of a Coverage Event, the Administrative Agent)) and remitted to the Company with prior notice to the Administrative Agent (or, upon the occurrence and during the continuance of an Event of Default or upon the occurrence of a Coverage Event, to the Lenders for prepayment of Advances and reduction of Financing Commitment); provided that the Company may not direct any withdrawal from the CE Cure Account if the Compliance Condition is not satisfied (or would not be satisfied after such withdrawal).

 

Section 4.06.         Optional Redemption.

 

From and after the 24-month anniversary of the date hereof, the Company shall be entitled at its option and upon three (3) Business Days’ prior written notice to the Administrative Agent (with a copy to the Collateral Agent) to terminate the Financing Commitments in whole upon payment in full, including the premium specified in Section 4.03(d), of all Advances, all accrued and unpaid interest and all other Secured Obligations (other than unmatured contingent indemnification obligations).

 

ARTICLE V

 

[RESERVED]

 

ARTICLE VI

 

REPRESENTATIONS, WARRANTIES AND COVENANTS

 

Section 6.01.         Representations and Warranties.

 

The Company represents to the other parties hereto solely with respect to itself that as of the date hereof (or as of such other date as maybe expressly set forth below):

 

(a)           it is duly organized or incorporated, as the case may be, and validly existing under the laws of the jurisdiction of its organization or incorporation and has all requisite power and authority to execute, deliver and perform this Agreement and each other Loan Document to which it is a party and to consummate the transactions herein and therein contemplated;

 

(b)           the execution, delivery and performance of this Agreement and each such other Loan Document, and the consummation of the transactions contemplated therein have been duly authorized by it and this Agreement and each such other Loan Document constitutes its legal, valid and binding obligation enforceable against it in accordance with its terms (subject to (A) bankruptcy, insolvency, reorganization, or other similar laws affecting the enforcement of creditors’ rights generally, (B) equitable limitations on the availability of specific remedies, regardless of whether such enforceability is considered in a proceeding in equity or at law and (C) implied covenants of good faith and fair dealing);

 

44

 

(c)           the execution, delivery and performance of this Agreement and each other Loan Document and the consummation of such transactions do not conflict with the provisions of its governing instruments and will not violate in any material way any provisions of Applicable Law or regulation or any applicable order of any court or regulatory body and will not result in the material breach of, or constitute a default, or require any consent, under any material agreement, instrument or document to which it is a party or by which it or any of its property may be bound or affected;

 

(d)           no actions, suits, proceedings or governmental investigations at law or in equity are pending or active (or, to its knowledge, threatened) against it before any Governmental Authority or any arbitrator (A) asserting the invalidity of this Agreement or any of the other Loan Documents, (B) seeking to prevent the consummation of any of the transactions contemplated by this Agreement or any of the other Loan Documents, (C) seeking any determination or ruling that might materially and adversely affect the performance by the Company of its obligations under, or the validity or enforceability of, this Agreement or any of the other Loan Documents or (D) seeking any determination or ruling that would reasonably be expected to have a Material Adverse Effect;

 

(e)           it has obtained all consents and authorizations (including all required consents and authorizations of any governmental authority) that are necessary or advisable to be obtained by it in connection with the execution, delivery and performance of this Agreement and each other Loan Document and each such consent and authorization is in full force and effect, except where such failure would not reasonably be expected to have a Material Adverse Effect;

 

(f)            it is not an “investment company” as defined in the Investment Company Act of 1940, as amended;

 

(g)           it has not issued any securities that are or are required to be registered under the Securities Act of 1933, as amended, and it is not a reporting company under the Securities Exchange Act of 1934, as amended;

 

(h)           the Company has no Indebtedness or other indebtedness, secured or unsecured, direct or contingent (including guaranteeing any obligation), other than (i) Indebtedness incurred under the terms of the Loan Documents and (ii) Indebtedness incurred pursuant to certain ordinary business expenses arising pursuant to the transactions contemplated by this Agreement and the other Loan Documents;

 

(i)            (x) its underlying assets do not constitute “plan assets” within the meaning of the Plan Asset Rules; and (y) neither it nor any ERISA Affiliate has sponsored, maintained, contributed to, been required to contribute to or has any liability with respect to any Plan;

 

(j)            as of the date of this Agreement it is, and after giving effect to any Advance it will be, Solvent and it is not entering into this Agreement or any other Loan Document or consummating any transaction contemplated hereby or thereby with any intent to hinder, delay or defraud any of its creditors;

 

(k)           it is not in default under any other contract to which it is a party, except where such default would not reasonably be expected to have a Material Adverse Effect;

 

45

 

(l)            it has complied and will comply in all material respects with all Applicable Laws, judgments, agreements with governmental authorities, decrees and orders with respect to its business and properties and the Portfolio;

 

(m)          it does not have any Subsidiaries or own any Investments in any Person other than the Portfolio Investments or Investments (i) constituting Eligible Investments and (ii) those the Company shall have acquired or received as a distribution in connection with a workout, bankruptcy, foreclosure, restructuring or similar process or proceeding involving a Portfolio Investment or any issuer thereof;

 

(n)           (x) it has disclosed to the Administrative Agent all agreements, instruments and corporate or other restrictions to which it is subject, and all other matters actually known to it, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect and (y) no report, financial statement, certificate or other information (other than projections, forward-looking information, general economic data, industry information or information relating to third parties) furnished in writing by or on behalf of it or any of its Affiliates to the Administrative Agent or any Lender in connection with the transactions contemplated by this Agreement and the negotiation of this Agreement or delivered hereunder or any other Loan Document (in each case as updated, modified or supplemented by other information so furnished) contains (or, to the extent any such information was furnished to the Company by a third party, to the Company’s knowledge contains), when taken as a whole, as of its delivery date, any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading;

 

(o)           except as otherwise permitted by this Agreement or the other Loan Documents, no Portfolio Investment has been sold, transferred, assigned or pledged by the Company (other than liens in favor of the Secured Parties pursuant to the Loan Documents, Permitted Liens and inchoate liens arising by operation of law);

 

(p)           the Company has timely filed all Tax returns required by Law to have been filed by it; all such Tax returns are true and correct in all material respects; and the Company has paid or withheld (as applicable) all Taxes owing or required to be withheld by it (if any) shown on such Tax returns, except any such Taxes which are being contested in good faith by appropriate proceedings and for which adequate reserves shall have been set aside in accordance with GAAP on its books and records;

 

(q)           the Company is and will be treated as a disregarded entity for U.S. federal income Tax purposes;

 

(r)            the Company is wholly owned by the Parent, which is a U.S. Person; provided, however, that a merger of the Parent with another business development company sponsored by W.P. Carey Inc. or other fundamental change transaction the result of which effectively combines the ownership and/or assets of the Parent and a business development company sponsored by W.P. Carey Inc., or merges or consolidates their respective collateral advisors or sub-advisors shall not constitute a breach of this representation;

 

46

 

(s)            prior to the date hereof, the Company has not engaged in any business operations or activities other than as an ownership entity for Portfolio Investments and similar loan or debt obligations and activities incidental thereto;

 

(t)            neither the Company nor any Affiliate of the Company is (i) a country, territory, organization, person or entity named on an Office of Foreign Asset Control (OFAC) list; (ii) a Person that resides or has a place of business in a country or territory named on such lists or which is designated as a “Non-Cooperative Jurisdiction” by the Financial Action Task Force on Money Laundering, or whose subscription funds are transferred from or through such a jurisdiction; (iii) a “Foreign Shell Bank” within the meaning of the USA Patriot Act, i.e., a foreign bank that does not have a physical presence in any country and that is not affiliated with a bank that has a physical presence and an acceptable level of regulation and supervision; or (iv) a person or entity that resides in or is organized under the laws of a jurisdiction designated by the United States Secretary of the Treasury under Sections 311 or 312 of the USA Patriot Act as warranting special measures due to money laundering concerns.  The Company is in compliance with all applicable OFAC rules and regulations and also in compliance with all applicable provisions of the USA Patriot Act;

 

(u)           the Company has implemented and maintains in effect policies and procedures designed to ensure compliance by the Company, its agents and their respective directors, managers, officers and employees (as applicable) with Anti-Corruption Laws and applicable Sanctions, and the Company and its officers and employees and, to its knowledge, its members and agents are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects and are not knowingly engaged in any activity that would reasonably be expected to result in the Company being designated as a Sanctioned Person.  None of (i) the Company or its officers and employees or (ii) to the knowledge of the Company, any manager or agent of the Company that will act in any capacity in connection with or benefit from the credit facility established hereby, is a Sanctioned Person.  No Advances, use of proceeds or other transaction contemplated by the Agreement will directly, or to the knowledge of the Company, indirectly violate Anti-Corruption Laws or applicable Sanctions;

 

(v)           the Loan Documents represent all of the material agreements between the Investment Manager or Parent, as applicable, on the one hand, and the Company, on the other.  Upon the purchase and/or contribution of each Portfolio Investment (or an interest in a Portfolio Investment) pursuant to this Agreement or the Sale Agreement, the Company shall be the lawful owner of, and have good title to, such Portfolio Investment and all assets relating thereto, free and clear of any Adverse Claim (other than Permitted Liens).  All such assets are transferred to the Company without recourse to the Parent except as described in the Sale Agreement.  The purchases of such assets by the Company constitute valid and true sales for consideration (and not merely a pledge of such assets for security purposes) and the contributions of such assets received by the Company constitute valid and true transfers for consideration, each enforceable against creditors of the Parent, and no such assets shall constitute property of the Parent;

 

(w)          the Company is not relying on any advice (whether written or oral) of any other party other than the Investment Manager; and

 

47

 

(x)           there are no judgments or Liens for Taxes with respect to the Company and no claim is being asserted with respect to the Taxes of the Company.

 

Section 6.02.         Representations Regarding the Portfolio Investments.  The Company represents to the other parties hereto that:

 

(a)           as of the Trade Date for each Portfolio Investment, such Portfolio Investment meets all of the applicable Eligibility Criteria (unless otherwise consented to by the Administrative Agent);

 

(b)           all of the conditions to the acquisition of the Portfolio Investments specified in Section 1.03 of this Agreement have been satisfied or waived;

 

(c)           all of the information contained in the related Approval Request is true, correct and complete in all material respects, provided that, to the extent any such information was furnished to the Company by any third party or was not prepared by or under the direction of the Company, such information is as of its delivery date true, complete and correct in all material respects to the knowledge of the Company;

 

(d)           the Company has good and marketable title to such Collateral free and clear of any Adverse Claim (other than Permitted Liens) or restrictions on transferability and the Company has the full right, power and lawful authority to assign, transfer and pledge the same and interests therein, and upon the making of each Advance, the Collateral Agent, for the benefit of the Secured Parties, will have acquired a perfected, first priority and valid security interest (except, as to priority, for any Permitted Liens) in such Collateral, free and clear of any Adverse Claim (other than Permitted Liens) or restrictions on transferability, to the extent (as to perfection and priority) that a security interest in said Collateral may be perfected under the applicable UCC; and

 

(e)           the Company has not pledged, assigned, sold, granted a security interest in or otherwise encumbered or conveyed any interest in any of the Collateral and no effective financing statement (other than with respect to Permitted Liens) or other instrument similar in effect naming or purportedly naming the Company or any of its Affiliates as debtor and covering all or any part of the Collateral is on file in any recording office, except such as may have been filed in favor of the Collateral Agent as “Secured Party” pursuant hereto, as necessary or advisable in connection with the Sale Agreement or which has been terminated.

 

Section 6.03.         Covenants of the Company.

 

The Company:

 

(a)           shall at all times:  (i) maintain at least one independent manager or director (who is in the business of serving as an independent manager or director); (ii) maintain its own separate books and records and bank accounts; (iii) hold itself out to the public and all other Persons as a legal entity separate from any other Person; (iv) have the Parent as its sole equityholder, unless otherwise permitted by the Loan Document; (v) file its own Tax returns, except to the extent that the Company is treated as a “disregarded entity” for Tax purposes and is not required to file Taxes under Applicable Law, and pay any Taxes so required to be paid under

 

48

 

Applicable Law, except for (x) those Taxes being contested in good faith by appropriate proceedings and in respect of which the Company has established proper reserves on its books in accordance with GAAP or (y) those Taxes the failure of which to pay or discharge would not reasonably be expected to have a Material Adverse Effect; (vi) not commingle its assets with assets of any other Person; (vii) conduct its business in its own name and comply with all organizational formalities to maintain its separate existence; (viii) maintain separate financial statements; provided, however, that the Company’s assets may be included in a consolidated financial statement of its Affiliate if (A) appropriate notation shall be made on such consolidated financial statements to indicate the separateness of the Company from such Affiliate and to indicate that the Company’s assets and credit are not available to satisfy the debts and other obligations of such Affiliate or any other Person and (B) such assets shall also be listed on the Company’s own separate balance sheet (if the Company prepares its own separate balance sheet); (ix) pay its own liabilities only out of its own funds; (x) maintain an arm’s length relationship with Parent and each of its other Affiliates; (xi) not hold out its credit or assets as being available to satisfy the obligations of others; (xii) allocate fairly and reasonably any overhead expenses that are shared with an Affiliate, including for shared office space; (xiii) use separate stationery, invoices and checks; (xiv) except as expressly permitted by this Agreement, not pledge its assets as security for the obligations of any other Person; (xv) correct any known misunderstanding regarding its separate identity; (xvi) maintain adequate capital in light of its contemplated business purpose, transactions and liabilities and pay its operating expenses and liabilities from its own assets; (xvii) cause its member to meet at least annually or act pursuant to written consent and keep minutes of such meetings and actions and observe in all respects all other requirements under its constituent documents and Delaware limited liability company formalities; (xviii) not acquire the obligations or any securities of its Affiliates; (xix) cause the managers, officers, agents and other representatives of the Company to act at all times with respect to the Company consistently and in furtherance of the foregoing and in the best interests of the Company; and (xx) maintain at least one special member, who, upon the dissolution of the sole member or the withdrawal or the disassociation of the sole member from the Company, shall immediately become the member of the Company in accordance with its organizational documents.

 

(b)           shall not (i) engage, directly or indirectly, in any business, other than the actions required or permitted to be performed under the preceding clause (a), including, other than with respect to any warrants received in connection with a Portfolio Investment, controlling the decisions or actions respecting the daily business or affairs of any other Person except as otherwise permitted hereunder (which, for the avoidance of doubt, shall not prohibit the Company from taking, or refraining to take, any action under or with respect to a Portfolio Investment); (ii) fail to be Solvent; (iii) release, sell, transfer, convey or assign any Portfolio Investment unless in accordance with the Loan Documents; (iv) except for capital contributions or capital distributions permitted under the terms and conditions of this Agreement and properly reflected on the books and records of the Company and transactions pursuant to the Sale Agreement, enter into any transaction with an Affiliate of the Company except on commercially reasonable terms similar to those available to unaffiliated parties in an arm’s-length transaction; (v) identify itself as a department or division of any other Person; or (vi) own any asset or property other than the Portfolio and the related assets and incidental personal property necessary for the ownership or operation of these assets.

 

49

 

(c)           shall take all actions consistent with and shall not take any action contrary to the “Assumptions and Facts” section in the opinions of Dechert LLP, dated the date hereof, relating to certain nonconsolidation and true sale matters;

 

(d)           shall not create, incur, assume or suffer to exist any Indebtedness other than (i) Indebtedness permitted under the Loan Documents or (ii) Indebtedness incurred pursuant to certain ordinary business expenses arising pursuant to the transactions contemplated by this Agreement.  The Company shall incur no Indebtedness secured by the Collateral other than the Secured Obligations.  The Company shall not assume, guarantee, endorse or otherwise be or become directly or contingently liable for the obligations of any Person by, among other things, agreeing to purchase any obligation of another Person, agreeing to advance funds to such Person or causing or assisting such Person to maintain any amount of capital, other than as expressly permitted under the Loan Documents;

 

(e)           shall comply with Anti-Corruption Laws and applicable Sanctions and shall maintain in effect and enforce policies and procedures designed to ensure compliance by the Company, its agents and their respective directors, managers, officers and employees (as applicable) with Anti-Corruption Laws and applicable Sanctions;

 

(f)            shall not amend any of its constituent documents or any document to which it is a party in any manner that could reasonably be expected to, or that does, adversely affect the Lenders in any material respect without the prior written consent of the Administrative Agent and the Required Financing Providers;

 

(g)           shall not amend the Special Purpose Provisions (as defined therein) of its limited liability company agreement, except in accordance therewith, without the prior written consent of the Administrative Agent and the Required Financing Providers;

 

(h)           shall not, without the prior consent of the Administrative Agent (acting at the direction of the Required Financing Providers), which consent may be withheld in the sole and absolute discretion of the Required Financing Providers, enter into any hedge agreement;

 

(i)            shall not change its name, identity or corporate structure in any manner that would make any financing statement or continuation statement filed by the Company (or by the Collateral Agent on behalf of the Company) in accordance with subsection (a) above seriously misleading or change its jurisdiction of organization, unless the Company shall have given the Administrative Agent and the Collateral Agent at least 30 days prior written notice thereof, and shall promptly file, or authorize the filing of, appropriate amendments to all previously filed financing statements and continuation statements (and shall provide a copy of such amendments to the Collateral Agent and Administrative Agent together with written confirmation to the effect that all appropriate amendments or other documents in respect of previously filed statements have been filed);

 

(j)            shall do or cause to be done all things necessary to (i) preserve and keep in full force and effect its existence as a limited liability company and take all reasonable action to maintain its rights, franchises, licenses and permits material to its business in the jurisdiction of its formation and (ii) qualify and remain qualified as a limited liability company in good standing

 

50

 

in each jurisdiction where the failure to qualify and remain qualified would reasonably be expected to have a Material Adverse Effect;

 

(k)           shall comply with all Applicable Law (whether statutory, regulatory or otherwise), the noncompliance with which could reasonably be expected to have, individually or collectively, a Material Adverse Effect;

 

(l)            shall not merge into or consolidate with any person or dissolve, terminate or liquidate in whole or in part, in each case, without the prior written consent of the Administrative Agent;

 

(m)          except for Investments permitted by Section 6.03(u) and without the prior written consent of the Administrative Agent, shall not form, or cause to be formed, any Subsidiaries; or make or suffer to exist any loans or advances to, or extend any credit to, or make any investments (by way of transfer of property, contributions to capital, purchase of stock or securities or evidences of indebtedness, acquisition of the business or assets, or otherwise) in, any Affiliate or any other Person except investments as otherwise permitted herein and pursuant to the other Loan Documents;

 

(n)           shall ensure that (i) its affairs are conducted so that its underlying assets do not constitute “plan assets” within the meaning of the Plan Asset Rules, and (ii) neither it nor any ERISA Affiliate sponsors, maintains, contributes to or is required to contribute to or have any liability with respect to any Plan;

 

(o)           except for the security interest granted hereunder, under the Security Deed and as otherwise permitted hereunder, shall not sell, pledge, assign or transfer to any other Person, or grant, create, incur, assume or suffer to exist any Lien on the Collateral or any interest therein (other than Permitted Liens and inchoate liens arising by operation of law), and the Company shall defend the right, title, and interest of the Collateral Agent (for the benefit of the Secured Parties) and the Lenders in and to the Collateral against all claims of third parties claiming through or under the Company (other than Permitted Liens and inchoate liens arising by operation of law);

 

(p)           shall promptly furnish to the Administrative Agent, and the Administrative Agent shall furnish to the Lenders, copies of the following financial statements, reports and information:  (i) as soon as available, but in any event within 120 days after the end of each fiscal year of Parent, a copy of the audited consolidated and consolidating balance sheet of Parent, including its consolidated Subsidiaries, as at the end of such year, the related consolidated and consolidating statements of income for such year and the related consolidated statements of changes in net assets and of cash flows for such year, setting forth in each case in comparative form the figures for the previous year; provided, that the financial statements required to be delivered pursuant to this clause (i) which are made available via EDGAR, or any successor system of the Securities Exchange Commission, in Parent’s annual report on Form 10-K, shall be deemed delivered to the Administrative Agent on the date such documents are made so available; (ii) as soon as available and in any event within 45 days after the end of each fiscal quarter of each fiscal year (other than the last fiscal quarter of each fiscal year), an unaudited consolidated and consolidating balance sheet of Parent, including its consolidated Subsidiaries, as of the end

 

51

 

of such fiscal quarter and including the prior comparable period (if any), and the unaudited consolidated and consolidating statements of income of Parent, including its consolidated Subsidiaries, for such fiscal quarter and for the period commencing at the end of the previous fiscal year and ending with the end of such fiscal quarter, and the unaudited consolidated statements of cash flows of Parent, including its consolidated Subsidiaries, for the period commencing at the end of the previous fiscal year and ending with the end of such fiscal quarter; provided, that the financial statements required to be delivered pursuant to this clause (ii) which are made available via EDGAR, or any successor system of the Securities Exchange Commission, in Parent’s quarterly report on Form 10-Q, shall be deemed delivered to the Administrative Agent on the date such documents are made so available; and (iii) from time to time, such other information or documents (financial or otherwise) as the Administrative Agent or the Required Financing Providers may reasonably request;

 

(q)           shall pay or discharge or cause to be paid or discharged, before the same shall become delinquent, all Taxes levied or imposed upon the Company or upon the income, profits or property of the Company; provided that the Company shall not be required to pay or discharge or cause to be paid or discharged any such Tax (i) the amount, applicability or validity of which is being contested in good faith by appropriate proceedings and for which disputed amounts adequate reserves in accordance with GAAP have been made or (ii) the failure of which to pay or discharge could not reasonably be expected to have a Material Adverse Effect;

 

(r)            shall permit representatives of the Administrative Agent at any time and from time to time as the Administrative Agent shall reasonably request (A) to inspect and make copies of and abstracts from its records relating to the Portfolio Investments and (B) to visit its properties in connection with the collection, processing or managing of the Portfolio Investments for the purpose of examining such records, and to discuss matters relating to the Portfolio Investments or such Person’s performance under this Agreement and the other Loan Documents with any officer or employee or auditor (if any) of such Person having knowledge of such matters.  The Company agrees to render to the Administrative Agent such clerical and other assistance as may be reasonably requested with regard to the foregoing; provided, that such assistance shall not interfere in any material respect with the Company’s or the Investment Manager’s business and operations.  So long as no Event of Default has occurred and is continuing, such visits and inspections shall occur only (i) upon five (5) Business Days’ prior written notice, (ii) during normal business hours and (iii) no more than once in any calendar year.  During the existence of an Event of Default, there shall be no limit on the timing or number of such inspections and only one (1) Business Day’s prior notice will be required before any inspection;

 

(s)            [RESERVED];

 

(t)            shall not make any Restricted Payments without the prior written consent of the Administrative Agent; provided that the Company may make Permitted Distributions so long as (i) no Default or Event of Default has occurred and is continuing (or would occur after giving effect to such Permitted Distribution), (ii) no Coverage Event shall have occurred (or would occur after giving effect to such Permitted Distribution), (iii) all Concentration Limitations are satisfied and (iv) in the case of a Permitted Distribution of Principal Proceeds, (x) at least 10 Portfolio Investments are owned by the Company and pledged to the Collateral Agent

 

52

 

hereunder and (y) each of the Minimum Equity Condition and the Compliance Condition is satisfied and (iv) the Company gives at least two (2) Business Days’ prior written notice thereof to the Administrative Agent;

 

(u)           shall not make or hold any Investments, except the Portfolio Investments or Investments (A) constituting Eligible Investments, (B) that have been consented to by the Administrative Agent or (C) those the Company shall have acquired or received as a distribution in connection with a workout, bankruptcy, foreclosure, restructuring or similar process or proceeding involving a Portfolio Investment or any issuer thereof;

 

(v)           shall not request any Advance, and the Company shall not directly, or to the knowledge of the Company, indirectly, use, and shall procure that its agents shall not directly, or to the knowledge of the Company, indirectly, use, the proceeds of any Advance (A) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (B) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, or (C) in any manner that would result in the violation of any Sanctions applicable to any party hereto;

 

(w)          shall not cancel, terminate or consent to or accept any cancellation or termination of, amend, modify or change in any manner any term or condition of the Management Agreement in any manner that adversely affects the Lenders in any material respect;

 

(x)           other than pursuant to the Sale Agreement and the Investment Management Agreement or in connection with a Substitution, shall not (A) transfer to any of its Affiliates any Portfolio Investment purchased from any of its Affiliates (other than sales to Affiliates conducted on terms and conditions consistent with those of an arm’s length transaction and, if applicable, at fair market value and subject to the limitations set forth in Section 1.07 hereof and Section 5.01(n)(iii) of the Sale Agreement); provided that nothing in this clause (x) shall prohibit a Permitted Distribution or (B) enter into any other transaction with any of its Affiliates, other than any transaction on terms that are no less favorable than those obtainable in an arm’s-length transaction with a wholly unaffiliated Person and on terms that are fair and equitable to the Company under all the facts or circumstances under Applicable Law;

 

(y)           shall cause the Investment Manager to post on a password protected website maintained by the Investment Manager to which the Administrative Agent will have access or deliver via email to the Administrative Agent, with respect to each obligor in respect of a Portfolio Investment, to the extent received by the Company pursuant to the underlying loan documents in respect of each Portfolio Investment, the complete financial reporting package with respect to the related obligor (including any financial statements, management discussion and analysis, executed covenant compliance certificates and related covenant calculations with respect to such obligor), the annual budget provided to the Company either monthly, quarterly or annually, as the case may be, by such obligor, which delivery or posting shall be made, if received by the 15th day of any month, by the 30th day of such month, and if received after the 15th day but prior to the 30th day of any month, by the 15th day of the succeeding month.  Upon demand by the Administrative Agent, the Company shall also cause the Investment Manager to

 

53

 

provide such other information as the Administrative Agent may reasonably request with respect to any Portfolio Investment or obligor (to the extent reasonably available to the Investment Manager);

 

(z)           shall not elect to be classified as other than a disregarded entity or partnership for U.S. federal income Tax purposes, nor shall the Company take any other action or actions that would cause it to be classified, taxed or treated as a corporation or publicly traded partnership taxable as a corporation for U.S. federal income Tax purposes (including transferring interests in the Company on or through an established securities market or secondary market (or the substantial equivalent thereof), within the meaning of Section 7704(b) of the Code (and Treasury regulations thereunder);

 

(aa)         shall only have partners or owners that are treated as U.S. Persons or that are disregarded entities owned by a U.S. Person and shall not recognize the transfer of any interest in the Company that constitutes equity for U.S. federal income Tax purposes to a person that is not a U.S. Person;

 

(bb)         shall from time to time execute and deliver all such supplements and amendments hereto and all such financing statements, continuation statements, instruments of further assurance and other instruments, and shall take such other action as may be reasonably necessary to secure the rights and remedies of the Secured Parties hereunder and to grant more effectively all or any portion of the Collateral, maintain or preserve the security interest (and the priority thereof) of this Agreement or to carry out more effectively the purposes hereof, perfect, publish notice of or protect the validity of any grant made or to be made by this Agreement, preserve and defend title to the Collateral and the rights therein of the Collateral Agent and the Secured Parties in the Collateral against the claims of all persons and parties, pay any and all Taxes levied or assessed upon all or any part of the Collateral and use its commercially reasonable efforts to minimize Taxes and any other costs arising in connection with its activities or give, execute, deliver, file and/or record any financing statement, notice, instrument, document, agreement or other papers that may be necessary or desirable to create, preserve, perfect or validate the security interest granted pursuant to this Agreement or to enable the Collateral Agent to exercise and enforce its rights hereunder with respect to such pledge and security interest, and hereby authorizes the Collateral Agent to file a UCC financing statement listing ‘all assets of the debtor’ in the collateral description of such financing statements;

 

(cc)         shall not (A) permit the validity or effectiveness of this Agreement or any grant hereunder to be impaired, or permit the lien of this Agreement to be amended, hypothecated, subordinated, terminated or discharged, or permit any Person to be released from any covenants or obligations with respect to this Agreement or the Advances, except as may be expressly permitted hereby, (B) permit any lien, charge, adverse claim, security interest, mortgage or other encumbrance (including any preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever or otherwise, other than the lien of this Agreement) to be created on or extend to or otherwise arise upon or burden the Collateral or any part thereof, any interest therein or the proceeds thereof, in each case, other than Permitted Liens, or (C) take any action that would cause the lien of this Agreement not to constitute a valid perfected security interest in the Collateral that is of first priority, free of any adverse claim or

 

54

 

the legal equivalent thereof, as applicable, except as may be expressly permitted hereby (or in connection with a disposition of Collateral required hereby);

 

(dd)         shall not make or incur any capital expenditures, except as reasonably required to perform its functions in accordance with the terms of this Agreement;

 

(ee)         shall not become liable in any way, whether directly or by assignment or as a guarantor or other surety, for the obligations of a lessee under any lease, hire any employees or make any distributions (other than in accordance with this Agreement);

 

(ff)          shall not maintain any bank accounts other than the Accounts;

 

(gg)         shall not authorize or otherwise permit the Investment Manager to act in contravention of the representations, warranties and agreements of the Investment Manager under any Loan Document;

 

(hh)         shall not act on behalf of, a country, territory, entity or individual of prohibited countries, territories, entities and individuals listed on, among other places, the OFAC website, and none of the Company, the Investment Manager or any of their respective Affiliates, owners, directors or officers is a natural person or entity with whom dealings with U.S. persons or persons under the jurisdiction of the United States are prohibited under any OFAC regulation or other applicable federal law or acting on behalf of such a person or entity.  The Company does not own and will not acquire, and the Investment Manager will not cause the Company to own or acquire, any security issued by, or interest in, any country, territory, or entity whose direct ownership by U.S. persons or persons under the jurisdiction of the U.S. would be or is prohibited under any OFAC regulation or other applicable federal law;

 

(ii)           except as otherwise expressly permitted herein, shall not cancel or terminate any of the Loan Documents to which it is party (in any capacity), or consent to or accept any cancellation or termination of any of such agreements, or amend or otherwise modify any term or condition of any of the Loan Documents to which it is party (in any capacity) or give any consent, waiver or approval under any such agreement, or waive any default under or breach of any of the Loan Documents to which it is party (in any capacity) or take any other action under any such agreement not required by the terms thereof, unless (in each case) the Administrative Agent shall have consented thereto in its sole discretion;

 

(jj)           shall, and shall cause the Investment Manager to perform each of its obligations under this Agreement and the other Loan Documents and comply with all Applicable Laws, including those applicable to the Portfolio Investments and the collection of all Interest Proceeds and Principal Proceeds thereof, except to the extent that the failure to so comply would not reasonably be expected to have a Material Adverse Effect; and

 

(kk)         shall give notice to the Administrative Agent promptly in writing upon the occurrence of any of the following:

 

(i)            any Adverse Proceeding; and

 

55

 

(ii)                                  any Adverse Claim asserted against any of the Portfolio Investments, the Accounts or any other Collateral.

 

Section 6.04.                          Amendments, Etc.

 

If the Company or the Investment Manager receives any notice of an amendment, supplement, consent, waiver or other modification of any Portfolio Investment or any related Underlying Instrument or rights thereunder (each, an “Amendment”) with respect to any Portfolio Investment or any related Underlying Instrument, or makes any affirmative determination to exercise or refrain from exercising any rights or remedies thereunder, it will give prompt (and in any event, not later than five (5) Business Days’) notice thereof to the Administrative Agent.  In any such event, the Company shall exercise all voting and other powers of ownership relating to such Amendment or the exercise of such rights or remedies as the Investment Manager shall deem appropriate under the circumstances.  If an Event of Default has occurred and is continuing or a Coverage Event has occurred, the Company will exercise all voting and other powers of ownership as the Administrative Agent (acting at the direction of the Required Financing Providers) shall instruct (it being understood that if the terms of the related Underlying Instrument expressly prohibit or restrict any such rights given to the Administrative Agent, then such right shall be limited to the extent necessary so that such prohibition or restriction is not violated).

 

ARTICLE VII

 

EVENTS OF DEFAULT

 

If any of the following events (“Events of Default”) shall occur:

 

(a)                                 the Company shall fail to pay (i) any principal amount owing by it in respect of the Secured Obligations when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof or otherwise or (ii) any other amount in respect of the Secured Obligations (whether for interest, fees or other amounts owing by it) within two (2) Business Days of when such amount becomes due and payable; or

 

(b)                                 any representation or warranty made or deemed made by or on behalf of the Company, the Parent or the Investment Manager (collectively, the “Credit Risk Parties”) herein or in any other Loan Document or any amendment or modification thereof or waiver thereunder, or in any report, certificate, or other document furnished pursuant hereto or in connection herewith or any amendment or modification thereof or waiver thereunder shall prove to have been false or incorrect in any material respect when made or deemed to have been made and the same continues unremedied for a period of thirty (30) days (if such failure can be remedied) after the earlier to occur of (i) the date on which written notice of such failure requiring the same to be remedied shall have been given to the Company or the Investment Manager, and (ii) the date on which the Company or the Investment Manager acquires knowledge thereof; or

 

(c)                                  (A)  the Company shall fail to observe or perform any covenant, condition or agreement contained in Sections 6.03(a), (b), (d), (f), (g), (h), (i), (l), (m), (o), (p), (t), (u), (v),

 

56

 

(x), (ff)(B), (ff)(C) or (hh) or (B) any Credit Risk Party shall fail to observe or perform any other covenant, condition or agreement contained herein (it being understood that (x) the failure of a Portfolio Investment to satisfy the Eligibility Criteria and/or the Concentration Limitations or (y) the failure of the Compliance Condition due to a reduction in the value of a Portfolio Investment, in each case, after its Trade Date shall not constitute such a failure) or in any other Loan Document and, in the case of this clause (B), if such failure is capable of being remedied, such failure shall not have been remedied or waived within thirty (30) days after the earlier of (i) receipt by such Credit Risk Party of written notice of such failure from the Administrative Agent and (ii) an officer of such Credit Risk Party becoming aware of such failure; or

 

(d)                                 an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of either the Company or the Investment Manager or its debts, or of a substantial part of its assets, under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for either the Company or the Investment Manager or for a substantial part of its assets, and, in each such case, such proceeding or petition shall continue undismissed for sixty (60) days or an order or decree approving or ordering any of the foregoing shall be entered; or

 

(e)                                  either the Company or the Investment Manager shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in clause (d) of this Article, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Company or the Investment Manager, as applicable, or for a substantial part of its assets, or (iv) make a general assignment for the benefit of creditors; or

 

(f)                                   any Credit Risk Party shall become unable, admit in writing its inability or fail generally to pay its debts as they become due; or

 

(g)                                  unless otherwise permitted under the Loan Documents (other than the Investment Management Agreement), the Investment Manager ceases to be the Investment Manager in accordance with the Investment Management Agreement and an Affiliate of the Investment Manager meeting the requirements set forth in the Investment Management Agreement as in effect on the Effective Date is not appointed (or has not accepted such appointment) as a replacement Investment Manager under the Investment Management Agreement; or

 

(h)                                 the passing of a resolution by the equity holders of the Company in respect of the winding up on a voluntary basis of the Company; or

 

(i)                                     any final judgments or orders (not subject to appeal or otherwise non-appealable) by one or more courts of competent jurisdiction for the payment of money in an aggregate amount in excess of $5,000,000 (after giving effect to insurance, if any, available with respect thereto) shall be rendered against the Company, and the same shall remain unsatisfied,

 

57

 

unvacated, unbonded or unstayed, un-discharged or not set aside for a period of sixty (60) days after the date on which the right to appeal has expired; or

 

(j)                                    an ERISA Event occurs; or

 

(k)                                 a Change of Control occurs; or

 

(l)                                     the Company, or the arrangements contemplated by the Loan Documents, shall become required to register as an “investment company” within the meaning of the Investment Company Act of 1940, as amended; or

 

(m)                             Carey Credit Advisors, LLC or an Affiliate of Carey Credit Advisors, LLC meeting the criteria specified in the investment advisory agreement between the Parent and Carey Credit Advisors LLC as in effect on the Effective Date ceases to be the investment advisor of the Parent; or

 

(n)                                 Guggenheim Partners Investment Management, LLC or an Affiliate of Guggenheim Partners Investment Management, LLC meeting the criteria specified in the investment sub-advisory agreement between the Parent and Guggenheim Partners Investment Management, LLC as in effect on the Effective Date ceases to be the investment sub-advisor of the Parent;

 

then, and in every such event (other than an event with respect to the Company described in clause (d), (e) or (h) of this Article), and at any time thereafter in each case during the continuance of such event, the Administrative Agent may, and at the request of the Required Financing Providers shall, by notice to the Company, take either or both of the following actions, at the same or different times:  (i) terminate the Financing Commitments, and thereupon the Financing Commitments shall terminate immediately, and (ii) declare all of the Secured Obligations then outstanding to be due and payable in cash in whole (or in part, in which case any Secured Obligations not so declared to be due and payable may thereafter be declared to be due and payable), and thereupon the Secured Obligations so declared to be due and payable, together with accrued interest thereon and all fees and other obligations of the Company accrued hereunder, shall become due and payable immediately, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Company; and in case of any event with respect to the Company described in clause (d), (e) or (h) of this Article, the Financing Commitments shall automatically terminate and all Secured Obligations then outstanding, together with accrued interest thereon and all fees and other obligations of the Company accrued hereunder, shall automatically become due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Company.

 

ARTICLE VIII

 

ACCOUNTS; COLLATERAL SECURITY

 

Section 8.01.                          The Accounts; Agreement as to Control.

 

(a)                                 Establishment and Maintenance of Accounts.  The Company has directed and the Securities Intermediary hereby acknowledges that it has established (1) an account

 

58

 

designated as the “USD Custodial Account”; (2) an account designated as the “CE Cure Account”; (3) an account designated as the “USD Interest Collection Account” and (4) an account designated as the “USD Principal Collection Account” (the USD Custodial Account, CE Cure Account, USD Interest Collection Account and USD Principal Collection Account, each, a “USD Account” and, collectively, the “USD Accounts”), and the account numbers for such Accounts are set forth on the Transaction Schedule.  The Securities Intermediary agrees to maintain each of the USD Accounts as a securities intermediary in the name of the Company subject to the lien of the Collateral Agent under this Agreement, and agrees not to change the name or account number of any Account without the prior consent of the Collateral Agent.  The Securities Intermediary hereby certifies that it is a bank or trust company that in the ordinary course of business maintains securities accounts for others and in that capacity has established the USD Accounts in the name of the Company.

 

Nothing herein shall require the Securities Intermediary to credit to any USD Account or to treat as a financial asset (within the meaning of Section 8-102(a)(9) of the UCC) any asset in the nature of a general intangible (as defined in Section 9-102(a)(42) of the UCC) or to “maintain” a sufficient quantity thereof (within the meaning of Section 8-504 of the UCC).  Notwithstanding any term hereof or elsewhere to the contrary, it is hereby expressly acknowledged that (a) interests in loans may be acquired and delivered by the Company to the Securities Intermediary or the Collateral Agent from time to time that are not evidenced by, or accompanied by delivery of, a security (as that term is defined in UCC Section 8-102) or an instrument (as that term is defined in Section 9-102(a)(47) of the UCC), and may be evidenced solely by delivery to the Collateral Agent of a facsimile copy of a loan agreement or an assignment agreement (“Loan/Assignment Agreement”) in favor of the Company, (b) any such Loan/Assignment Agreement (and the registration of the related loan on the books and records of the applicable obligor or bank agent) shall be registered in the name of the Company and (c) any duty on the part of the Securities Intermediary or Collateral Agent with respect to such loan (including in respect of any duty it might otherwise have to maintain a sufficient quantity of such loan for purposes of UCC Section 8-504) shall be limited to the exercise of reasonable care by the Collateral Agent in the physical custody of any such Loan/Assignment Agreement that may be delivered to it.  It is acknowledged and agreed that neither the Collateral Agent nor the Securities Intermediary is under a duty to examine Underlying Instruments to determine the validity or sufficiency of any Loan/Assignment Agreement (and shall have no responsibility for the genuineness or completeness thereof), or for the issuer’s title to any related loan.

 

The Company has caused the Account Bank and Custodian under the Custody and Account Bank Agreement to establish (1) an account designated as the “Euro Custodial Account”; (2) an account designated as the “Euro Interest Collection Account” and (3) an account designated as the “Euro Principal Collection Account” (the Euro Custodial Account, Euro Interest Collection Account and Euro Principal Collection Account, each, a “Euro Account” and, collectively, the “Euro Accounts”), and the account numbers for such Accounts are set forth in Schedule 1 to the Custody and Account Bank Agreement.

 

The Company has caused the Account Bank and Custodian under the Custody and Account Bank Agreement to establish (1) an account designated as the “GBP Custodial Account”; (2) an account designated as the “GBP Interest Collection Account” and (3) an account designated as the “GBP Principal Collection Account” (the GBP Custodial Account,

 

59

 

GBP Interest Collection Account and GBP Principal Collection Account, each, a “GBP Account” and, collectively, the “GBP Accounts”), and the account numbers for such Accounts are set forth in Schedule 1 to the Custody and Account Bank Agreement.

 

The USD Accounts, the Euro Accounts and the GBP Accounts are collectively referred to herein as the “Accounts”.

 

Each of the Account Bank and the Custodian shall have the same rights and immunities as the Collateral Trustee set forth in Clauses 14.4(a), (b), (c), (f), (g), (h), (i) and (j) of the Security Deed.

 

(b)                                 Collateral Agent in Control of Securities Accounts.  Each of the parties hereto hereby agrees that (1) each USD Account shall be deemed to be a “securities account” (within the meaning of Section 8-501 of the UCC in effect in the State of New York), (2) all property credited to any USD Account shall be treated as a financial asset for purposes of Article 8 of the UCC and (3) except as otherwise expressly provided herein, the Collateral Agent will be exclusively entitled to exercise the rights that comprise each financial asset credited to each USD Account.  The parties hereto agree that the Securities Intermediary shall act only on entitlement orders or other instructions with respect to the USD Accounts originated by the Collateral Agent and no other person (and without further consent by any other person); and the Collateral Agent, for the benefit of the Secured Parties, shall have exclusive control and the sole right of withdrawal over each USD Account.  The only permitted withdrawals from the USD Accounts shall be in accordance with the provisions of this Agreement.

 

(c)                                  Subordination of Lien, Etc.  If the Securities Intermediary has or subsequently obtains by agreement, operation of law or otherwise a security interest in any USD Account or any security entitlement credited thereto, the Securities Intermediary hereby agrees that such security interest shall be subordinate to the security interest of the Collateral Agent.  The property credited to any USD Account will not be subject to deduction, set-off, banker’s lien, or any other right in favor of any person other than the Collateral Agent (except that the Securities Intermediary may set-off (1) all amounts due to the Securities Intermediary in respect of its customary fees and expenses for the routine maintenance and operation of the USD Accounts, and (2) the face amount of any checks which have been credited to any USD Account but are subsequently returned unpaid because of uncollected or insufficient funds).

 

(d)                                 Property Registered, Indorsed, etc. to Securities Intermediary.  All securities or other property underlying any financial assets credited to any USD Account shall be registered in the name of the Securities Intermediary, indorsed to the Securities Intermediary in blank or credited to another securities account maintained in the name of the Securities Intermediary, and in no case will any financial asset credited to any USD Account be registered in the name of the Company, payable to the order of the Company or specially indorsed to the Company except to the extent the foregoing have been specially indorsed to the Securities Intermediary or in blank.

 

(e)                                  Jurisdiction; Governing Law of USD Accounts.  The establishment and maintenance of each USD Account and all interests, duties and obligations related thereto shall be governed by the law of the State of New York and the “securities intermediary’s jurisdiction”

 

60

 

(within the meaning of Section 8-110 of the UCC) shall be the State of New York.  Terms used in this Section 8.01 without definition have the meanings given to them in the UCC.

 

(f)                                   No Duties.  The parties hereto acknowledge and agree that the Securities Intermediary shall not have any additional duties other than those expressly set forth in this Section 8.01, and the Securities Intermediary shall satisfy those duties expressly set forth in this Section 8.01 so long as it acts without gross negligence or willful misconduct.  Without limiting the generality of the foregoing, the Securities Intermediary shall not be subject to any fiduciary or other implied duties, and the Securities Intermediary shall not have any duty to take any discretionary action or exercise any discretionary powers.

 

(g)                                  Permitted Non-USD Currency Accounts.  All Euro Accounts and GBP Accounts will be administered in accordance with the Custody and Account Bank Agreement subject to the requirements of the Security Deed and the security interest granted to the Collateral Trustee thereunder.  The only permitted withdrawals from the Euro Accounts and the GBP Accounts shall be in accordance with the provisions of this Agreement and the Security Deed.

 

Section 8.02.                          Collateral Security; Pledge; Delivery.

 

(a)                                 Grant of Security Interest.  As collateral security for the prompt payment in full when due of all the Company’s obligations to the Agents, the Collateral Trustee, the Custodian, the Account Bank and the Lenders (collectively, the “Secured Parties”) under the Loan Documents (collectively, the “Secured Obligations”), the Company hereby pledges, hypothecates, assigns, charges, mortgages, delivers, and transfers the Collateral to the Collateral Agent, including a continuing first priority security interest in favor of the Collateral Agent in all of the Company’s right, title and interest in, to and under (in each case, whether now owned or existing, or hereafter acquired or arising) all accounts, payment intangibles, general intangibles, chattel paper, electronic chattel paper, instruments, deposit accounts, letter-of-credit rights, investment property, and any and all other assets or property of any type or nature owned by it (all of the property described in this clause (a) being collectively referred to herein as “Collateral”), including:  (1) each Portfolio Investment, (2) the Accounts and all investments, obligations and other property from time to time credited thereto, (3) the Investment Management Agreement and all rights relating thereto, (4) the Sale Agreement and all rights related thereto, (5) the Custody and Account Bank Agreement and all related rights thereto, (6) all other property of the Company and (7) all proceeds thereof, all accessions to and substitutions and replacements for, any of the foregoing, and all rents, profits and products of any thereof.

 

(b)                                 Delivery and Other Perfection.  In furtherance of the collateral arrangements contemplated herein, the Company shall (1) Deliver to the Collateral Agent the Collateral hereunder as and when acquired by the Company; and (2) if any of the securities, monies or other property pledged by the Company hereunder are received by the Company, forthwith take such action as is necessary to ensure the Collateral Agent’s continuing perfected security interest in such Collateral (including Delivering such securities, monies or other property to the Collateral Agent or the Collateral Trustee, as applicable).

 

Any Underlying Instruments that are delivered to the Collateral Agent shall be delivered to U.S. Bank at its document custody office located at 1719 Otis Way, Florence, South Carolina

 

61

 

29501, Ref: Hamilton Finance LLC, Attention: Steven Garrett, or at such other office as shall be specified to the Administrative Agent and the Borrower by the Collateral Agent in a written notice prior to such change. Any Underlying Instruments that are originals or copies shall be kept in fire resistant vaults, rooms or cabinets at such offices and placed together with an appropriate identifying label and maintained in such a manner so as to permit retrieval and access.  Any Underlying Instruments that are originals or copies shall be clearly segregated from any other documents or instruments maintained by the Collateral Agent.  The Collateral Agent shall have no obligation to review or monitor any Underlying Instruments but shall only be required to hold those Underlying Instruments received by it in safekeeping. In taking and retaining custody of the Underlying Instruments, the Collateral Agent shall be deemed to be acting as the agent of the Secured Parties; provided that the Collateral Agent makes no representations as to the existence, perfection or priority of any lien on the Collateral; and provided further that the Collateral Agent’s duties as agent shall be limited to those expressly contemplated herein.

 

(c)                                  Remedies, Etc.  During the period in which an Event of Default shall have occurred and be continuing, the Collateral Agent shall (but only if and to the extent directed in writing by the Required Financing Providers with, to the extent permitted by Applicable Law, a copy to the Company) do any of the following:

 

(1)                                 Exercise in respect of the Collateral, in addition to other rights and remedies provided for herein or otherwise available to it, all the rights and remedies of a secured party under the UCC (whether or not the UCC applies to the affected Collateral) and also may, without notice except as specified below, sell the Collateral or any part thereof in one or more parcels at public or private sale, at any of the Collateral Agent’s offices or elsewhere, for cash, on credit or for future delivery, and upon such other terms as the Collateral Agent (acting at the direction of the Required Financing Providers) may deem commercially reasonable.  The Company agrees that, to the extent notice of sale shall be required by law, at least ten (10) days’ prior notice to the Company of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification.  The Collateral Agent shall not be obligated to make any sale of the Collateral regardless of notice of sale having been given.  The Collateral Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned.

 

(2)                                 Transfer all or any part of the Collateral into the name of the Collateral Agent or a nominee thereof.

 

(3)                                 Enforce collection of any of the Collateral by suit or otherwise, and surrender, release or exchange all or any part thereof, or compromise or extend or renew for any period (whether or not longer than the original period) any obligations of any nature of any party with respect thereto.

 

(4)                                 Endorse any checks, drafts, or other writings in the Company’s name to allow collection of the Collateral.

 

(5)                                 Take control of any proceeds of the Collateral.

 

62

 

(6)                                 Execute (in the name, place and stead of any of the Company) endorsements, assignments, stock powers and other instruments of conveyance or transfer with respect to all or any of the Collateral.

 

(7)                                 Perform such other acts as directed by the Administrative Agent and as may be reasonably required to do to protect the Collateral Agent’s rights and interest hereunder.

 

(8)                                 Without limitation to the foregoing, exercise any available rights and remedies under the Security Deed.  In addition, nothing in this Agreement shall limit, or be construed as limiting, any rights and remedies which U.S. Bank or any affiliate thereof (as Collateral Agent, Collateral Trustee or in a similar role) has under the Security Deed or the Custody and Account Bank Agreement or under the laws of any jurisdiction other than the United States.

 

In connection with the sale of Portfolio Investments by any Agent in accordance with the terms of this Section 8.02(c), subject to the limitations set forth therein, the provisions set forth in the second paragraph of Section 1.04 regarding the sale of Portfolio Investments by an Agent shall apply to any such sale hereunder.

 

After the termination of the Financing Commitments and the payment in full in cash of the Secured Obligations, any remaining proceeds of any sale or transfer of the Collateral shall be delivered to the Company.

 

(d)                                 Compliance with Restrictions.  The Company agrees that in any sale of any of the Collateral whenever an Event of Default shall have occurred and be continuing, the Collateral Agent is hereby authorized to comply with any limitation or restriction in connection with such sale as it may be advised by counsel is necessary in order to avoid any violation of Applicable Law (including compliance with such procedures as may restrict the number of prospective bidders and purchasers, require that such prospective bidders and purchasers have certain qualifications, and restrict such prospective bidders and purchasers to persons who will represent and agree that they are purchasing for their own account for investment and not with a view to the distribution or resale of such Collateral), or in order to obtain any required approval of the sale or of the purchaser by any governmental regulatory authority or official, and the Company further agrees that such compliance shall not, in and of itself, result in such sale being considered or deemed not to have been made in a commercially reasonable manner, nor shall the Collateral Agent be liable or accountable to the Company or the Investment Manager for any discount allowed by the reason of the fact that such Collateral is sold in compliance with any such limitation or restriction.

 

(e)                                  Private Sale.  The Collateral Agent shall incur no liability as a result of a sale of the Collateral, or any part thereof, at any private sale pursuant to clause (c) above conducted in a commercially reasonable manner.  In the absence of fraud, gross negligence or willful misconduct, the Company hereby waives any claims against each Agent and Financing Provider arising by reason of the fact that the price at which the Collateral may have been sold at such a private sale was less than the price which might have been obtained at a public sale.

 

63

 

(f)                                   Collateral Agent Appointed Attorney-in-Fact.  The Company hereby appoints the Collateral Agent as the Company’s attorney-in-fact (it being understood that the Collateral Agent shall not be deemed to have assumed any of the obligations of the Company by this appointment), with full authority in the place and stead of the Company and in the name of the Company, from time to time in the Collateral Agent’s discretion (exercised at the written direction of the Administrative Agent or the Required Financing Providers, as the case may be), after the occurrence and during the continuation of an Event of Default, to take any action and to execute any instrument which the Administrative Agent or the Required Financing Providers may deem necessary or advisable to accomplish the purposes of this Agreement.  The Company hereby acknowledges, consents and agrees that the power of attorney granted pursuant to this clause is irrevocable during the term of this Agreement and is coupled with an interest.

 

(g)                                  Further Assurances.  The Company covenants and agrees that, from time to time upon the request of the Collateral Agent (as directed by the Administrative Agent), the Company will execute and deliver such further documents, and do such other acts and things as the Collateral Agent (as directed by the Administrative Agent) may reasonably request in order fully to effect the purposes of this Agreement and to protect and preserve the priority and validity of the security interest granted hereunder or to enable the Collateral Agent to exercise and enforce its rights and remedies hereunder with respect to any Collateral.

 

(h)                                 Termination.  Upon the payment in full in cash of all Secured Obligations, the security interest granted herein shall automatically (and without further action by any party) terminate and all rights to the Collateral shall revert to the Company.  Upon any such termination, the Collateral Agent will, at the Company’s sole expense, deliver to the Company, or cause the Securities Intermediary to deliver, without any representations, warranties or recourse of any kind whatsoever, all certificates and instruments representing or evidencing all of the Collateral held by the Securities Intermediary hereunder, and execute and deliver to the Company or its nominee such documents as the Company shall reasonably request to evidence such termination.

 

Section 8.03.                          Accountings.

 

(a)                                 Daily Reports.  On each Business Day, commencing on December 18, 2015, the Company shall compile and provide (or cause to be compiled and provided) to the Agents and the Lenders, a position report (each, a “Position Report”) and a cash flow report (the “Cash Flow Report”) for the previous Business Day.  The Position Report shall be substantially in the form set forth in Schedule 5 and the Cash Flow Report shall contain such information as is reasonably available to the Collateral Administrator and as the Administrative Agent shall reasonably request.  For the avoidance of doubt, the Company 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 8.03.

 

(b)                                 Cooperation.  The Company shall cause the Investment Manager to cooperate with the Collateral Administrator in the preparation of the reports to be delivered under this Section 8.03.  Without limiting the generality of the foregoing, the Company shall cause the Investment Manager to supply in a timely fashion any information maintained by it that the Collateral Administrator may from time to time reasonably request with respect to the

 

64

 

Portfolio Investments and any information reasonably necessary to complete the reports to be prepared by the Collateral Administrator hereunder or required to permit the Collateral Administrator to perform its obligations hereunder.

 

Section 8.04.                          Additional Reports.  In addition to the information and reports specifically required to be provided pursuant to the terms of this Agreement, the Company (at its expense), or the Collateral Administrator, at the direction and expense of the Company, shall compile and the Company shall then provide the Administrative Agent with all information or reports, and such additional information as the Administrative Agent may from time to time reasonably request and the Company shall reasonably determine may be obtained and provided without unreasonable burden or expense as more particularly described and provided for under the Collateral Administration Agreement.

 

ARTICLE IX

 

THE AGENTS

 

Section 9.01.                          Appointment of Administrative Agent, Collateral Agent, Collateral Administrator and Securities Intermediary.

 

Each of the Financing Providers hereby irrevocably appoints each of the Administrative Agent, the Collateral Agent, the Collateral Administrator and the Securities Intermediary (the Collateral Agent, Collateral Administrator and the Securities Intermediary, the “U.S. Bank Agents” and, collectively with the Administrative Agent, the “Agents”) as its agent and authorizes such Agent to take such actions on its behalf and to exercise such powers as are delegated to such Agent by the terms hereof, together with such actions and powers as are reasonably incidental thereto.  Anything contained herein to the contrary notwithstanding, each Agent and each Financing Provider hereby agree that no Financing Provider shall have any right individually to realize upon any of the Collateral hereunder, it being understood and agreed that all powers, rights and remedies hereunder with respect to the Collateral shall be exercised solely by the Collateral Agent for the benefit of the Secured Parties in accordance with the terms of this Agreement.

 

Each of the Financing Providers hereby instructs U.S. Bank to execute, perform and deliver the Security Deed and the Custody and Account Bank Agreement and any instruments and agreements ancillary thereto, in each case, in its capacities as Collateral Agent, Collateral Administrator, Securities Intermediary and Collateral Trustee and irrevocably instructs U.S. Bank to act in such capacities pursuant to the terms of this Agreement and each such agreement.

 

Each financial institution serving as an Agent hereunder shall have the same rights and powers in its capacity as a Financing Provider (if applicable) as any other Financing Provider and may exercise the same as though it were not an Agent, and such financial institution and its affiliates may accept deposits from, lend money to and generally engage in any kind of business with the Company as if it were not an Agent hereunder.

 

No Agent shall have any duties or obligations except those expressly set forth herein.  Without limiting the generality of the foregoing, (a) no Agent shall be subject to any fiduciary or

 

65

 

other implied duties, regardless of whether a Default has occurred and is continuing, (b) no Agent shall have any duty to take any discretionary action or exercise any discretionary powers, except that the foregoing shall not limit any duty expressly set forth in this Agreement to include such rights and powers expressly contemplated hereby that such Agent is required to exercise in writing as directed by (i) in the case of the Collateral Agent (A) in respect of the exercise of remedies under Section 8.02(c), the Required Financing Providers, or (B) in all other cases, the Administrative Agent or (ii) in the case of any Agent, the Required Financing Providers (or such other number or percentage of the Financing Providers as shall be necessary under the circumstances as provided herein), and (c) except as expressly set forth herein, no Agent shall have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Company that is communicated to or obtained by the financial institution serving in the capacity of such Agent or any of its affiliates in any capacity.  The Collateral Agent shall not be liable for any action taken or not taken by it in the absence of its own gross negligence or willful misconduct or with the consent or at the request or direction of the Administrative Agent or the Required Financing Providers (or such other number or percentage of the Financing Providers that shall be permitted herein to direct such action or forbearance).  No Agent shall be liable for any action taken or not taken by it in the absence of its own gross negligence or willful misconduct or with the consent or at the request or direction of the Administrative Agent (in the case of any U.S. Bank Agent only) or the Required Financing Providers (or such other number or percentage of the Financing Providers that shall be permitted herein to direct such action or forbearance).  Each Agent shall be deemed not to have knowledge of any Default or Coverage Event unless and until written notice thereof is given to it by the Company or a Financing Provider, and no Agent shall be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement, (ii) the contents of any certificate, report or other document delivered hereunder or in connection herewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein, (iv) the validity, enforceability, effectiveness, genuineness, value or sufficiency of this Agreement or any other agreement, instrument or document, or (v) the satisfaction of any condition set forth herein, other than to confirm receipt of items expressly required to be delivered to such Agent.  No Agent shall be required to risk or expend its own funds in connection with the performance of its obligations hereunder if it reasonably believes it will not receive reimbursement therefor hereunder.  Notwithstanding the foregoing or any other provision of this Agreement to the contrary, nothing in this Agreement shall eliminate or limit the express obligations, rights and remedies of U.S. Bank (in any capacity as Collateral Agent, Collateral Trustee or in a similar role) under the Security Deed or the Custody and Account Bank Agreement or under the laws of any jurisdiction other than the United States.

 

Each Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, direction, opinion, document or other writing believed by it to be genuine and to have been signed or sent by the proper person.  Each Agent also may rely upon any statement made to it orally or by telephone and believed by it to be made by the proper person, and shall not incur any liability for relying thereon.  Each Agent may consult with legal counsel (who may be counsel for the Company), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts or be responsible for the misconduct or negligence of attorneys appointed by it with due care.

 

66

 

In the event any U.S. Bank Agent shall receive conflicting instruction from the Administrative Agent and the Required Financing Providers, the instruction of the Required Financing Providers shall govern.  No U.S. Bank Agent shall have any duties or obligations under or in respect of any other agreement (including any agreement that may be referenced herein) to which it is not a party.  The grant of any permissive right or power to any U.S. Bank Agent hereunder shall not be construed to impose a duty to act.

 

It is expressly acknowledged and agreed that no U.S. Bank Agent shall be responsible for, and shall not be under any duty to monitor or determine, compliance with the Eligibility Criteria (Schedule 3) or the conditions to any purchase hereunder in any instance, or to determine if the conditions of “Deliver” have been satisfied or otherwise to monitor or determine compliance by any other person with the requirements of this Agreement.

 

Each Agent may perform any and all its duties and exercise its rights and powers by or through any one or more sub-agents appointed by it; provided, however, that any such sub-agent receiving payments from the Company shall be a “U.S. person” and a “financial institution” within the meaning of Treasury Regulations Section 1.1441-1 and a “U.S. financial institution” within the meaning of Treasury Regulations Section 1.1471-3T.  No Agent shall be responsible for any misconduct or negligence on the part of any sub-agent or attorney appointed by such Agent with due care.  Each Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers through their respective affiliates and the respective directors, officers, employees, agents and advisors of such person and its affiliates (the “Related Parties”) for such Agent.  The exculpatory provisions of the preceding paragraphs shall apply to any such sub-agent and to the Related Parties of each Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent or Collateral Agent, as the case may be.

 

Subject to the appointment and acceptance of a successor Agent as provided in this paragraph, each Agent may resign at any time by notifying the other Agents, the Financing Providers, the Investment Manager and the Company.  Upon any such resignation, the Required Financing Providers shall have the right (with, so long as no Event of Default has occurred and is continuing or no Coverage Event has occurred, the consent of the Company) to appoint a successor; provided, however, that any such successor receiving payments from the Company shall be a “U.S. person” and a “financial institution” within the meaning of Treasury Regulations Section 1.1441-1 and a “U.S. financial institution” within the meaning of Treasury Regulations Section 1.1471-3T.  If no successor shall have been so appointed by the Required Financing Providers and shall have accepted such appointment within thirty (30) days after the retiring Agent gives notice of its resignation, then the Administrative Agent may, on behalf of the Financing Providers, appoint a successor Agent which shall be a financial institution with an office in New York, New York, or an affiliate of any such bank provided, however, that any such successor receiving payments from the Company shall be a “U.S. person” and a “financial institution” within the meaning of Treasury Regulations Section 1.1441-1 and a “U.S. financial institution” within the meaning of Treasury Regulations Section 1.1471-3T.  If no successor shall have been so appointed by the Administrative Agent and shall have accepted such appointment within sixty (60) days after the retiring Agent gives notice of its resignation, such Agent may petition a court of competent jurisdiction for the appointment of a successor provided, however, that any such successor receiving payments from the Company shall be a “U.S. person” and a

 

67

 

“financial institution” within the meaning of Treasury Regulations Section 1.1441-1 and a “U.S. financial institution” within the meaning of Treasury Regulations Section 1.1471-3T.  Upon the acceptance of its appointment as Administrative Agent or Collateral Agent, as the case may be, hereunder by a successor, such successor shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Agent, and the retiring Agent shall be discharged from its duties and obligations hereunder.  After the retiring Agent’s resignation hereunder, the provisions of this Article and Section 10.04 shall continue in effect for the benefit of such retiring Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while it was acting as Administrative Agent or Collateral Agent, as the case may be.

 

Each Financing Provider acknowledges that it has, independently and without reliance upon any Agent or any other Financing Provider and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement.  Each Financing Provider also acknowledges that it will, independently and without reliance upon any Agent or any other Financing Provider and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any related agreement or any document furnished hereunder or thereunder.

 

Anything in this Agreement notwithstanding, in no event shall any Agent be liable for special, indirect, punitive or consequential loss or damage of any kind whatsoever (including lost profits), even if such Agent has been advised of such loss or damage and regardless of the form of action.

 

Each Agent shall not be liable for any error of judgment made in good faith by an officer or officers of such Agent, unless it shall be conclusively determined by a court of competent jurisdiction that such Agent was grossly negligent in ascertaining the pertinent facts.

 

Each Agent shall not be responsible for the accuracy or content of any certificate, statement, direction or opinion furnished to it in connection with this Agreement.

 

Each Agent shall not be bound to make any investigation into the facts stated in any resolution, certificate, statement, instrument, opinion, report, consent, order, approval, bond or other document or have any responsibility for filing or recording any financing or continuation statement in any public office at any time or to otherwise perfect or maintain the perfection of any security interest or lien granted to it hereunder.

 

In the absence of gross negligence, willful misconduct or bad faith on the part of the Agents, the Agents may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any request, instruction, certificate, opinion or other document furnished to the Agents, reasonably believed by the Agents to be genuine and to have been signed or presented by the proper party or parties and conforming to the requirements of this Agreement; but in the case of a request, instruction, document or certificate which by any provision hereof is specifically required to be furnished to the Agents, the Agents shall be under a duty to examine the same in accordance with the requirements of this Agreement to determine that it conforms to the form required by such provision.

 

68

 

No Agent shall be responsible for delays or failures in performance resulting from acts beyond its control. Such acts include but are not limited to acts of God, strikes, lockouts, riots and acts of war.  In executing, performing and delivering any of the Loan Documents, the rights, protections and indemnities set forth in this Agreement shall likewise be available and applicable to the Collateral Agent and the Collateral Trustee under each other Loan Document; provided that, in the event of a conflict between the express terms of any such Loan Document and the express terms of this Agreement, the terms of such Loan Document shall govern.

 

Section 9.02.                          Additional Provisions Relating to the Collateral Agent and the Collateral Administrator.

 

(a)                                 Collateral Agent May Perform.  The Collateral Agent shall from time to time take such action (at the written direction of the Administrative Agent or the Required Financing Providers) for the maintenance, preservation or protection of any of the Collateral or of its security interest therein, provided that the Collateral Agent shall have no obligation to take any such action in the absence of such direction and shall have no obligation to comply with any such direction if it reasonably believes that the same (1) is contrary to Applicable Law or (2) might subject the Collateral Agent to any loss, liability, cost or expense, unless the Administrative Agent or the Required Financing Providers, as the case may be, issuing such instruction provides indemnity or security satisfactory to the Collateral Agent for payment of same.  With respect to actions which are incidental to the actions specifically delegated to the Collateral Agent hereunder, the Collateral Agent shall not be required to take any such incidental action hereunder, but shall be required to act or to refrain from acting (and shall be fully protected in acting or refraining from acting) upon the written direction of the Administrative Agent; provided that the Collateral Agent shall not be required to take any action hereunder at the request of the Administrative Agent, the Required Financing Providers or otherwise if the taking of such action, in the determination of the Collateral Agent, (1) is contrary to Applicable Law or (2) is reasonably likely to subject the Collateral Agent to any loss, liability, cost or expense, unless the Administrative Agent or the Required Financing Providers, as the case may be, issuing such instruction provides indemnity or security satisfactory to the Collateral Agent for payment of same. In the event the Collateral Agent requests the consent of the Administrative Agent and the Collateral Agent does not receive a consent (either positive or negative) from the Administrative Agent within ten (10) Business Days of its receipt of such request, the Administrative Agent shall be deemed to have declined to consent to the relevant action.

 

If, in performing its duties under this Agreement, the Collateral Agent is required to decide between alternative courses of action, the Collateral Agent may request written instructions from the Administrative Agent as to the course of action desired by it. If the Collateral Agent does not receive such instructions within five (5) Business Days after it has requested them, the Collateral Agent may, but shall be under no duty to, take or refrain from taking any such courses of action and shall have no liability in connection therewith except as otherwise provided in this Agreement. The Collateral Agent shall act in accordance with instructions received after such five (5) Business Day period except to the extent it has already, in good faith, taken or committed itself to take, action inconsistent with such instructions. The Collateral Agent shall be entitled to rely on the advice of legal counsel and independent accountants in performing its duties hereunder with no liability therefor and shall be deemed to have acted in good faith if it acts in accordance with such advice.

 

69

 

(b)                                 Reasonable Care.  The Collateral Agent is required to exercise reasonable care in the custody and preservation of any of the Collateral in its possession, provided that the Collateral Agent shall be deemed to have exercised reasonable care in the custody and preservation of any of the Collateral if it takes such action for that purpose as the Company reasonably requests at times other than upon the occurrence and during the continuance of any Event of Default (and upon such occurrence, the Collateral Agent shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral if it acts in accordance with direction by the Administrative Agent), but failure of the Collateral Agent to comply with any such request at any time shall not in itself be deemed a failure to exercise reasonable care.  The Collateral Agent will not be responsible for filing any financing or continuation statements or recording any documents or instruments in any public office at any time or times or otherwise perfecting or maintaining the perfection of any liens thereon.

 

(c)                                  Collateral Agent Not Liable.  Except to the extent arising from the gross negligence or willful misconduct of the Collateral Agent, the Collateral Agent shall not be liable by reason of its compliance with the terms of this Agreement with respect to (1) the investment of funds held thereunder in Eligible Investments (other than for losses attributable to the Collateral Agent’s failure to make payments on investments issued by the Collateral Agent, in its commercial capacity as principal obligor and not as collateral agent, in accordance with their terms) or (2) losses incurred as a result of the liquidation of any Eligible Investment prior to its stated maturity.  It is expressly agreed and acknowledged that the Collateral Agent is not guaranteeing performance of or assuming any liability for the obligations of the other parties hereto or any parties to the Portfolio Investments or other Collateral.

 

(d)                                 Certain Rights and Obligations of the Collateral Agent.  Prior to the occurrence of a Coverage Event or an Event of Default, without further consent or authorization from any Financing Providers or the Administrative Agent, the Collateral Agent may execute any documents or instruments necessary to release any lien encumbering any item of Collateral that is the subject of a sale or other disposition of assets permitted by this Agreement or as otherwise permitted or required hereunder or to which the Required Financing Providers or the Administrative Agent have otherwise consented and shall release any related Underlying Instruments as instructed by the Company (or the Investment Manager on its behalf).  Following the occurrence of a Coverage Event or an Event of Default, without further consent or authorization from the Company, the Collateral Agent may execute any documents or instruments necessary to release any lien encumbering any item of Collateral that is the subject of a sale or other disposition of assets permitted by this Agreement or as otherwise permitted or required hereunder.  Anything contained herein to the contrary notwithstanding, in the event of a foreclosure by the Collateral Agent on any of the Collateral pursuant to a public or private sale, any Agent or Financing Provider may be the purchaser of any or all of such Collateral at any such sale and the Collateral Agent, as agent for and representative of the Financing Providers (but not any Financing Provider in its individual capacity unless the Required Financing Providers shall otherwise agree), shall be entitled, for the purpose of bidding and making settlement or payment of the purchase price for all or any portion of the Collateral sold at any such public sale, to use and apply any of the Secured Obligations as a credit on account of the purchase price for any collateral payable by the purchaser at such sale.

 

70

 

(e)                                  Fees and Expenses.  The Company agrees to pay to the Collateral Agent, the Securities Intermediary and the Collateral Administrator such fees as agreed to in a separate fee letter agreement, dated December 4, 2015, among the Collateral Agent, the Collateral Administrator and the Company and acknowledged hereby by the Administrative Agent and as may be subsequently modified as agreed among the Company, the Administrative Agent, the Collateral Agent, the Securities Intermediary and the Collateral Administrator in writing.  The Company further agrees to pay to the Collateral Agent, the Securities Intermediary and the Collateral Administrator, or reimburse the Collateral Agent, the Securities Intermediary and the Collateral Administrator for paying, properly documented out-of-pocket expenses in connection with this Agreement, any other Loan Document and the transactions contemplated hereby or thereby.  The Company agrees to pay to the Custodian and the Account Bank such fees as agreed to in a separate fee letter agreement, dated December 4, 2015, among the Account Bank, the Custodian and the Company and acknowledged hereby by the Administrative Agent and as may be subsequently modified as agreed among the Company, the Administrative Agent, the Custodian and the Account Bank in writing.  The Company further agrees to pay to the Custodian and the Account Bank, or reimburse the Custodian and the Account Bank for paying, reasonable and documented out-of-pocket expenses in connection with the Custody and Account Bank Agreement and the transactions contemplated hereby or thereby.  On each Interest Payment Date, prior to the payment of any other amounts due under this Agreement or the other Loan Documents, the Company agrees that it shall first pay any fees and amounts due to the Collateral Agent, the Collateral Agent as Collateral Trustee, the Collateral Administrator, the Securities Intermediary, the Custodian and the Account Bank under the Loan Documents to the extent of Interest Proceeds available for distribution in the USD Interest Collection Account on such Interest Payment Date; provided that in no event shall the aggregate amount of such fees and amounts exceed $300,000 in any 12 month period (the “Annual Cap”) during the term of this Agreement; provided further that (i) if an Event of Default has occurred, the Annual Cap shall be increased to $800,000 for payment to the Collateral Agent (including in its capacity as the Collateral Trustee), the Collateral Administrator, the Securities Intermediary, the Custodian and the Account Bank and such amounts shall be payable on demand subject to (i) the availability of funds and (ii) the Annual Cap as of the next succeeding Interest Payment Date.  If any amounts are due and owing in excess of the Annual Cap on any Interest Payment Date, the Company agrees to pay such excess amounts, to the extent of Interest Proceeds available for distribution in the USD Interest Collection Account on such  Interest Payment Date, on a pari passu basis with any indemnities or expense reimbursements payable to the Administrative Agent, immediately after payment of any interest and principal amounts owed and fees and other amounts payable to the Lenders and prior to payments to any other party under this Agreement or the other Loan Documents.  Any amounts due and owing in excess of the Annual Cap on any Interest Payment Date and not paid in accordance with the preceding sentence shall be paid on the next succeeding Interest Payment Date on which funds are available to make such payment in accordance with this Agreement.

 

(f)                                   Execution by the Collateral Agent, Collateral Administrator and Securities Intermediary.  The Collateral Agent, the Collateral Administrator and the Securities Intermediary are executing this Agreement solely in their capacity as Collateral Agent, Collateral Administrator and Securities Intermediary hereunder and in no event shall have any obligation to make any Advance, provide any Financing or perform any obligation of the Administrative Agent or any of the Financing Providers under any of the Loan Agreements.

 

71

 

(g)                                  Information Provided to Collateral Agent and Collateral Administrator.  Without limiting the generality of any terms of this Section, neither the Collateral Agent nor the Collateral Administrator shall have liability for any failure, inability or unwillingness on the part of the Investment Manager, the Administrative Agent or the Company to provide accurate and complete information on a timely basis to the Collateral Agent or the Collateral Administrator, as applicable, or otherwise on the part of any such party to comply with the terms of this Agreement, and, absent gross negligence, willful misconduct or bad faith, shall have no liability for any inaccuracy or error in the performance or observance on the Collateral Agent’s or Collateral Administrator’s, as applicable, part of any of its duties hereunder that is caused by or results from any such inaccurate, incomplete or untimely information received by it, or other failure on the part of any such other party to comply with the terms hereof.

 

(h)                                 Instructions to U.S. Bank Agents.  The U.S. Bank Agents (each in their respective capacities) agree to accept and act upon instructions or directions pursuant to this Agreement or any other related transaction document sent by unsecured email, facsimile transmission or other similar unsecured electronic methods, provided, however, that any Person providing such instructions or directions shall provide to the U.S. Bank Agent, as applicable, an incumbency certificate listing authorized officers designated to provide such instructions or directions, which incumbency certificate shall be amended whenever a person is added or deleted from the listing. If such person elects to give the U.S. Bank Agents email or facsimile instructions (or instructions by a similar electronic method) and the U.S. Bank Agent, as applicable, in its discretion elects to act upon such instructions, the U.S. Bank Agent’s reasonable understanding of such instructions shall be deemed controlling. The U.S. Bank Agents (each in their respective capacities) shall not be liable for any losses, costs or expenses arising directly or indirectly from their reliance upon and compliance with such instructions notwithstanding such instructions conflicting with or being inconsistent with a subsequent written instruction. Any person providing such instructions or directions agrees to assume all risks arising out of the use of such electronic methods to submit instructions and directions to the U.S. Bank Agents, including without limitation the risk of the U.S. Bank Agents acting on unauthorized instructions, and the risk of interception and misuse by third parties.

 

(i)                                     Anti-Terrorism, Anti-Money Laundering.  To help fight the funding of terrorism and money laundering activities, the Collateral Agent will obtain, verify and record information that identifies individuals or entities that establish a relationship or open an account with any U.S. Bank Agent.  The Collateral Agent will ask for the name, address, tax identification number and other information that will allow the Collateral Agent to identify the individual or entity who is establishing the relationship or opening the account.  The Collateral Agent may also ask for formation documents such as articles of incorporation, an offering memorandum or other identifying documents to be provided.

 

72

 

ARTICLE X

 

MISCELLANEOUS

 

Section 10.01.                   Non-Petition.

 

Each of the Collateral Agent, the Securities Intermediary and the Collateral Administrator hereby agrees not to commence, or join in the commencement of, any proceedings in any jurisdiction for the bankruptcy, winding-up, reorganization, arrangement, insolvency, moratorium or liquidation of the Company or any similar proceedings, in each case prior to the date that is one year and one day (or if longer, any applicable preference period plus one day) after the payment in full of all Indebtedness, Secured Obligations or other obligations owing by the Company.  The foregoing restrictions are a material inducement for the parties hereto to enter into this Agreement and are an essential term of this Agreement.  The Administrative Agent or the Company may seek and obtain specific performance of such restrictions (including injunctive relief), including, without limitation, in any bankruptcy, winding-up, reorganization, arrangement, insolvency, moratorium or liquidation or similar proceedings.  The Company shall promptly object to the institution of any bankruptcy, winding-up, reorganization, arrangement, insolvency, moratorium or liquidation or similar proceedings against it and take all necessary or advisable steps to cause the dismissal of any such proceeding; provided that such obligation shall be subject to the availability of funds therefor.

 

Section 10.02.                   Notices.

 

All notices and other communications in respect hereof (including, without limitation, any modifications hereof, or requests, waivers or consents hereunder) to be given or made by a party hereto shall be in writing (including by electronic mail or other electronic messaging system) to the other parties hereto at the addresses for notices specified on the Transaction Schedule (or, as to any such party, at such other address as shall be designated by such party in a notice to each other party hereto).  All such notices and other communications shall be deemed to have been duly given when transmitted by facsimile, electronic mail or personally delivered or, in the case of a mailed notice, upon receipt, in each case given or addressed as aforesaid.

 

Section 10.03.                   No Waiver.

 

No failure on the part of any party hereto to exercise and no delay in exercising, and no course of dealing with respect to, any right, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege under this Agreement preclude any other or further exercise thereof or the exercise of any other right, power or privilege.  The remedies provided herein are cumulative and not exclusive of any remedies provided by law.

 

Section 10.04.                   Expenses; Indemnity; Damage Waiver.

 

(a)                                 The Company agrees to pay on demand all reasonable and documented out-of-pocket fees, charges, disbursements, costs and expenses of the Administrative Agent, the Collateral Agent, the Collateral Administrator, the Securities Intermediary and the Lenders in connection with the preparation, execution, delivery, syndication and administration of this Agreement or any amendments, modifications or waivers of the provisions hereof (whether or not the transactions contemplated hereby or thereby shall be consummated) and the other documents and agreements to be delivered hereunder or with respect hereto, including but not limited to the Security Deed, in each case, subject to any cap on such fees, charges, disbursements, costs and expenses set forth in the Loan Documents or otherwise agreed by the

 

73

 

parties, and the Company further agrees to pay all reasonable and documented out-of-pocket fees, charges, disbursements, costs and expenses of the Administrative Agent, the Collateral Agent, the Collateral Administrator and the Securities Intermediary in connection with any amendments, waivers or consents executed in connection with this Agreement, including the reasonable fees and out of pocket, documented expenses of counsel for the Administrative Agent, the Collateral Agent, the Collateral Administrator, the Securities Intermediary and the Lenders with respect thereto and with respect to advising the Administrative Agent and the Lenders as to its rights and remedies under this Agreement, and to pay all reasonable, documented and out-of-pocket fees, charges, disbursements, costs and expenses, if any (including reasonable counsel fees and expenses), of the Administrative Agent, the Collateral Agent, the Collateral Administrator, the Securities Intermediary and the Lenders, in connection with the enforcement or protection of their rights in connection with this Agreement or any of the other Loan Documents and the other documents and agreements to be delivered hereunder or with respect hereto; provided, that in the case of reimbursement of (A) counsel for the Lenders other than the Administrative Agent, such reimbursement shall be limited to one counsel for all the Administrative Agent and Lenders, (B) counsel for the Collateral Agent and the Securities Intermediary shall be limited to one counsel for such Person and (C) counsel for the Collateral Administrator shall be limited to one counsel for such Person.

 

(b)                                 The Company shall indemnify the Agents, the Collateral Administrator, the Securities Intermediary, the Lenders and each Related Party of any of the foregoing persons (each such person being called an “Indemnitee”), against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses, including reasonable fees, charges and disbursements of any counsel for any Indemnitee, incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of (1) the execution or delivery of this Agreement or any agreement or instrument contemplated thereby, the performance by the parties thereto of their respective obligation, the exercise of the parties thereto of their respective rights or the consummation of the transactions contemplated hereby, including any breach of any representation, warranty or covenant of the Company or the Investment Manager in any Loan Document, (2) any Financing or the use of the proceeds therefrom or (3) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based in tort or contract or any other theory and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available (a) to the extent determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from gross negligence, bad faith or willful misconduct on the part of any Indemnitee, (b) to the extent resulted from the nonperformance or noncompliance by the Agents, the Collateral Administrator, the Securities Intermediary or the Lenders with their respective obligations under this Agreement or (c) resulting from the performance of the Portfolio Investments.  In addition, this Section 10.04(b) shall not apply to Taxes.  Payments under this Section 10.04(b) shall be made by the Company to the Administrative Agent for the benefit of the relevant Indemnitee

 

(c)                                  To the extent permitted by Applicable Law, neither the Company nor any Indemnitee shall assert, and each hereby waives, any claim against the Company or any Indemnitee, as applicable, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or

 

74

 

as a result of, this Agreement or any agreement, instrument or transaction contemplated hereby, any Financing or the use of the proceeds thereof.

 

(d)                                 For the avoidance of doubt, the fees, charges, disbursements, costs and expenses described in this Section 10.04 shall not include Taxes.

 

(e)                                  This Section 10.04 shall survive the termination of this Agreement and the repayment of all amounts owing to the Financing Providers and Agents hereunder.

 

Section 10.05.                   Amendments.

 

No amendment, modification or waiver in respect of this Agreement will be effective unless in writing (including, without limitation, a writing evidenced by a facsimile transmission or electronic mail) and executed by each of the Company, the Agents and the Required Financing Providers; provided, however, that the Administrative Agent may waive any of the Eligibility Criteria and the requirements set forth in Schedule 3 or Schedule 4 in its sole discretion.

 

Section 10.06.                   Confidentiality.

 

Each Agent, the Securities Intermediary and each Lender agrees to maintain the confidentiality of the Information for a period of three (3) years after receipt thereof (or, with respect to Information relating to or provided by an obligor in respect of a Portfolio Investment, for a period (as notified to the Agents, the Securities Intermediary and the Lenders) commencing upon receipt thereof and ending on the date on which the confidentiality obligations of the Company with respect to such obligor terminate) (it being understood that documents provided to the Administrative Agent hereunder may in all cases be distributed by the Administrative Agent to the Lenders) except that the Agents, the Securities Intermediary or such Lender may disclose such information (i) to its affiliates, officers, directors, employees, agents, counsel, accountants, auditors, advisors or representatives, (ii) to the extent such information has become available to the public other than as a result of a disclosure in violation of this Agreement, (iii) to the extent such information was available to such party on a non-confidential basis prior to its disclosure to such party hereunder, (iv) in connection with the exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (v) subject to an agreement containing provisions substantially the same as those of this Section 10.06, to (x) any assignee of or Participant in (to the extent such Person is permitted to become an assignee or Participant hereunder), or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement or (y) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to the Company and its obligations, (vi) with the consent of the Investment Manager, or (vii) to the extent the such party should be (A) required in connection with any legal or regulatory proceeding or (B) requested by any Governmental Authority to disclose such information; provided, that in the case of clause (vii) above, the Agent, the Securities Intermediary or such Lender, as applicable, will use reasonable efforts to maintain confidentiality and will (unless otherwise prohibited by law) notify the Investment Manager of its intention to make any such disclosure prior to making any such disclosure.  Any Person required to maintain the confidentiality of Information as provided in this Section 10.06 shall be

 

75

 

considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.  Notwithstanding the foregoing, a Lender may disclose the U.S. tax treatment and U.S. tax structure with respect to the Financings.

 

Section 10.07.                   Non-Recourse.

 

Notwithstanding any other provision of this Agreement, no recourse under any obligation, covenant or agreement of the Company, the Parent or the Investment Manager contained in this Agreement or any other Loan Document shall be had against any incorporator, stockholder, partner, officer, director, member, manager, employee or agent of Company, the Investment Manager or any of their respective Affiliates (solely by virtue of such capacity) by the enforcement of any assessment or by any legal or equitable proceeding, by virtue of any statute or otherwise; it being expressly agreed and understood that this Agreement is solely a corporate obligation of the Company, the Parent and/or the Investment Manager, and that no personal liability whatever shall attach to or be incurred by any incorporator, stockholder, officer, director, member, manager, employee or agent of the Company, the Parent, the Investment Manager or any of their respective Affiliates (solely by virtue of such capacity) or any of them under or by reason of any of the obligations, covenants or agreements of the Company, the Parent or the Investment Manager contained in this Agreement, or implied therefrom, and that any and all personal liability for breaches by the Company, the Parent or the Investment Manager of any of such obligations, covenants or agreements, either at common law or at equity, or by statute, rule or regulation, of every such incorporator, stockholder, officer, director, member, manager, employee or agent is hereby expressly waived as a condition of and in consideration for the execution of this Agreement; provided however, the foregoing shall not be construed so as to exonerate or exculpate the Company, the Parent or the Investment Manager from any liability by reason of a breach by such party of any of its obligations, covenants or agreements contained in the Loan Documents or its willful misconduct or gross negligence.

 

Section 10.08.                   Successors; Assignments

 

(a)                                 The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that the Company may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and the Required Financing Providers (and any attempted assignment or transfer by the Company without such consent shall be null and void).  Each of the Account Bank and the Custodian shall be an express third party beneficiary of Section 8.01(a) and Section 9.02(e).  Except as expressly set forth herein, nothing in this Agreement, expressed or implied, shall be construed to confer upon any person any legal or equitable right, remedy or claim under or by reason of this Agreement.

 

(b)                                 Subject to the conditions set forth below, any Lender may assign to one or more Persons all or a portion of its rights and obligations under this Agreement (including all or a portion of its Financing Commitment and the Advances at the time owing to it) with the prior written consent (such consent not to be unreasonably withheld) of the Administrative Agent and, if such assignee is not an Eligible Assignee, the Company; provided that no consent of the Administrative Agent or the Company shall be required for an assignment of any Financing

 

76

 

Commitment to an assignee that is a Lender with a Financing Commitment immediately prior to giving effect to such assignment; provided further that no assignment shall be permitted to any Lender that, immediately prior to such assignment, is in default of its obligations hereunder.

 

Assignments shall be subject to the following additional conditions:  (A) each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement; and (B) the parties to each assignment shall execute and deliver to the Administrative Agent an assignment and assumption agreement in form and substance acceptable to the Administrative Agent.

 

Subject to acceptance and recording thereof below, from and after the effective date specified in each assignment and assumption the assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such assignment and assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such assignment and assumption, be released from its obligations under this Agreement (and, in the case of an assignment and assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto as a Lender but shall continue to be entitled to the benefits of Section 10.04).

 

The Administrative Agent, acting for this purpose as an agent of the Company, shall maintain at one of its offices in the United States a copy of each assignment and assumption delivered to it and the Register.  The entries in the Register shall be conclusive absent manifest error, and the parties hereto shall treat each person whose name is recorded in the Register pursuant to the terms hereof as a Lender and the owner of the amounts owing to it hereunder as reflected in the Register for all purposes of this Agreement, notwithstanding notice to the contrary.  The Register shall be available for inspection by the Company, any Lender and the Investment Manager, at any reasonable time and from time to time upon reasonable prior notice.  Upon its receipt of a duly completed assignment and assumption executed by an assigning Lender and an assignee, the Administrative Agent shall accept such assignment and assumption and record the information contained therein in the Register.

 

(c)                                  Any Lender may, without the consent of the Company or the Administrative Agent, sell participations to one or more banks or other entities (a “Participant”) in all or a portion of such Lender’s rights and obligations under this Agreement (including all or a portion of its Financing Commitment and the Advances owing to it); provided that (1) such Lender’s obligations under this Agreement shall remain unchanged, (2) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, (3) the Company, the Agents and the other Financing Providers shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement and the Participant shall not be in privity with the Company and (4) such Participant (x) is not a Lender that, immediately prior to such participation, is in default of its obligations hereunder and (y) would be an Eligible Assignee.  Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any Material Amendment that affects such Participant.

 

77

 

(d)                                 Each Lender that sells a participation shall, acting solely for this purpose as an agent of the Company, maintain a register on which it enters the name and address of each Participant and the principal amounts (and related interest amounts) of each Participant’s interest in the Advances or other obligations under this Agreement (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant’s interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure (i) is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations, (ii) is reasonably requested by the Company to determine whether a Participant is eligible to receive additional amounts pursuant to Section 3.01(e) or (f) as a result of a Change in Law occurring after the Participant acquired the applicable participation or (iii) is otherwise required thereunder.  The entries in the Participant Register shall be conclusive absent manifest error, and each Person whose name is recorded in the Participant Register shall be treated as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.  For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.  The Company agrees that each Participant shall be entitled through the Lender granting such participation (and for the avoidance of doubt shall have no direct rights against the Company) to the benefits of Sections 3.01(e) and 3.03 (subject to the requirements and limitations therein, including the requirements under Section 3.03(f) (it being understood that the documentation required under Section 3.03(f) shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section; provided that such Participant (A) agrees to be subject to the provisions of Section 3.04 as if it were an assignee under Section 10.08(b) and (B) shall not be entitled to receive any greater payment under Sections 3.01(e) and 3.03, with respect to any participation, than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation.

 

Section 10.09.                   Governing Law; Submission to Jurisdiction; Etc.

 

(a)                                 Governing Law.  This Agreement will be governed by and construed in accordance with the law of the State of New York.

 

(b)                                 Submission to Jurisdiction.  With respect to any suit, action or proceedings relating to this Agreement (collectively, “Proceedings”), each party hereto irrevocably (i) submits to the non-exclusive jurisdiction of the courts of the State of New York and the United States District Court located in the Borough of Manhattan in New York City and (ii) waives any objection which it may have at any time to the laying of venue of any Proceedings brought in any such court, waives any claim that such Proceedings have been brought in an inconvenient forum and further waives the right to object, with respect to such Proceedings, that such court does not have any jurisdiction over such party.  Nothing in this Agreement precludes any party hereto from bringing Proceedings in any other jurisdiction, nor will the bringing of Proceedings in any one or more jurisdictions preclude the bringing of Proceedings in any other jurisdiction.

 

78

 

(c)                                  Waiver of Jury Trial.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

Section 10.10.                   Right of Setoff.  If an Event of Default shall have occurred and be continuing, and if the Company shall fail to pay when due (whether at stated maturity, by acceleration or otherwise) to or for the account of any Lender any amount payable by the Company hereunder, each such Lender and each of its Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other obligations at any time owing by such Lender or Affiliate to or for the credit or the account of the Company against such amounts, irrespective of whether or not such Lender shall have made any demand under this Agreement and although such obligations may be unmatured.  Such Lender shall promptly provide notice of such setoff to the Company; provided that failure by such Lender to provide such notice shall not give the Company any cause of action or right to damages or affect the validity of such setoff and application.  The rights of each Lender under this Section are in addition to other rights and remedies (including other rights of setoff) which such Lender may have.

 

Section 10.11.                   Interest Rate Limitation.  Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to any Advance, together with all fees, charges and other amounts which are treated as interest on such Advance under Applicable Law (collectively the “Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be contracted for, charged, taken, received or reserved by the Lender holding such Advance in accordance with Applicable Law, the rate of interest payable in respect of such Advance hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in respect of such Advance but were not payable as a result of the operation of this Section shall be cumulated and the interest and Charges payable to such Lender in respect of other Advances or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together with interest thereon at the Federal Funds Effective Rate to the date of repayment, shall have been received by such Lender.

 

Section 10.12.                   USA PATRIOT Act.  Each Lender that is subject to the requirements of the USA Patriot Act hereby notifies the Company that pursuant to the requirements of the USA Patriot Act, it is required to obtain, verify and record information that identifies the Company, which information includes the name and address of the Company and other information that will allow such Lender to identify the Company in accordance with the USA Patriot Act.

 

Section 10.13.                   Counterparts.

 

This Agreement may be executed in any number of counterparts by facsimile or other written form of communication including electronic mail, each of which shall be deemed to be an original as against the party whose signature appears thereon, and all of which shall together constitute one and the same instrument.

 

79

 

Section 10.14.                   Headings.

 

Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement.

 

[remainder of page intentionally blank]

 

80

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written.

 

	
 
    	
HAMILTON FINANCE LLC, as Company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Paul S.   Saint-Pierre
    
	
 
    	
 
    	
Name: Paul S. Saint-Pierre
    
	
 
    	
 
    	
Title:   CFO of Designated Manager and Member
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
JPMORGAN CHASE BANK, NATIONAL 
   ASSOCIATION, as Administrative Agent
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Louis Cerrotta
    
	
 
    	
 
    	
Name: Louis Cerrotta
    
	
 
    	
 
    	
Title:   Executive Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
U.S. BANK NATIONAL ASSOCIATION,
    
	
 
    	
as Collateral Agent
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Scott D. DeRoss
    
	
 
    	
 
    	
Name: Scott D. DeRoss
    
	
 
    	
 
    	
Title:   Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
U.S. BANK NATIONAL ASSOCIATION,
    
	
 
    	
as Securities Intermediary
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Scott D. DeRoss
    
	
 
    	
 
    	
Name: Scott D. DeRoss
    
	
 
    	
 
    	
Title:   Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
U.S. BANK NATIONAL ASSOCIATION,
    
	
 
    	
as Collateral Administrator
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Scott D. DeRoss
    
	
 
    	
 
    	
Name: Scott D. DeRoss
    
	
 
    	
 
    	
Title:   Vice President
    

 

[Signature Page to Loan Agreement]

 

 

	
 
    	
The Financing Providers
    
	
 
    	
 
    
	
 
    	
JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, as Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Louis Cerrotta
    
	
 
    	
 
    	
Name: Louis Cerrotta
    
	
 
    	
 
    	
Title:   Executive Director
    

 

[Signature Page to Loan Agreement]

 

 

SCHEDULE 1

 

Transaction Schedule

 

	
1.
    	
 
    	
Types of Financing
    	
 
    	
Available
    	
 
    	
Financing Limit
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Advances
    	
 
    	
yes
    	
 
    	
U.S. $175,000,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
2.
    	
 
    	
Financing Providers
    	
 
    	
 
    	
 
    	
Financing Commitment
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Lender:
    	
 
    	
JPMorgan Chase Bank,   National Association
    	
 
    	
U.S.$175,000,000, as reduced from time to time   pursuant to Section 1.04, Section 4.03(c) or Section 4.06
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
3.
    	
 
    	
Scheduled Termination Date:
    	
 
    	
December 17, 2019
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
4.
    	
 
    	
Account Numbers
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
USD Custodial Account:
    	
 
    	
183233-200
    	
 
    	
 
    
	
 
    	
 
    	
USD Interest Collection Account:
    	
 
    	
183233-201
    	
 
    	
 
    
	
 
    	
 
    	
USD Principal Collection Account:
    	
 
    	
183233-202
    	
 
    	
 
    
	
 
    	
 
    	
CE Cure Account:
    	
 
    	
183233-707
    	
 
    	
 
    
	
 
    	
 
    	
Euro Custodial Account:
    	
 
    	
732489-02
    	
 
    	
 
    
	
 
    	
 
    	
Euro Interest Collection Account:
    	
 
    	
732489-03
    	
 
    	
 
    
	
 
    	
 
    	
Euro Principal Collection Account:
    	
 
    	
732489-02
    	
 
    	
 
    
	
 
    	
 
    	
GBP Custodial Account:
    	
 
    	
732489-05
    	
 
    	
 
    
	
 
    	
 
    	
GBP Interest Collection Account:
    	
 
    	
732489-06
    	
 
    	
 
    
	
 
    	
 
    	
GBP Principal Collection Account:
    	
 
    	
732489-05
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
5.
    	
 
    	
Market Value Trigger:
    	
 
    	
142%
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
6.
    	
 
    	
Purchases of Restricted Securities
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Notwithstanding anything herein to the contrary, no   Portfolio Investment may constitute a Restricted Security. As used herein, “Restricted   Security” means any security that forms part of a new issue of publicly   or privately issued securities (a) with respect to which an affiliate of   any Financing Provider that is a “broker” or a “dealer”, within the meaning   of the Securities Exchange Act of 1934, participated in the distribution as a   member of a selling syndicate or group within thirty (30) days of the   proposed purchase by the Company and (b) that the Company proposes to   purchase from any such affiliate of any Financing Provider.
    

 

Sch.  1-1

 

Addresses for Notices

 

	
The Company:
    	
 
    	
Hamilton Finance LLC
   c/o Carey Credit Income Fund
   50 Rockefeller Plaza
   13th Floor
   New York, NY 10020
    	
 
    	
Attention: Chief Financial Officer, Chief Legal   Counsel
   Telephone: (212) 492-8990
   Facsimile: (212) 492-8922
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
The Investment Manager:
    	
 
    	
Carey Credit Income Fund
   50 Rockefeller Plaza
   13th Floor
   New York, NY 10020
    	
 
    	
Attention: Chief Financial Officer, Chief Legal   Counsel
   Telephone: (212) 492-8990
   Facsimile: (212) 492-8922
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
The Administrative Agent:
    	
 
    	
JPMorgan Chase Bank, National Association
   c/o JPMorgan Services Inc.
   500 Stanton Christiana Rd., 3rd Floor
   Newark, Delaware 19713
    	
 
    	
Attention: Ryan Hanks
   Telephone: (302) 634-2030
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
with a copy to:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
JPMorgan Chase Bank, National Association
   383 Madison Ave.
   New York, New York 10179
    	
 
    	
Attention: Louis Cerrotta
   Telephone: 212-622-7092
   Email: louis.cerrotta@jpmorgan.com
   desiree.fixler@jpmorgan.com
   ji.han@jpmorgan.com
   ruchira.patel@jpmorgan.com
   pooja.malhotra@jpmchase.com
   de_custom_business@jpmchase.com
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
The Collateral Agent:
    	
 
    	
U.S. Bank National Association
   214 N. Tryon Street, 26th Floor
   Charlotte, NC 28202
    	
 
    	
Attention: Scott DeRoss and Christopher Hagen
   Telephone: (704) 335-4546; (704) 335-2339
   Email: scott.deross@usbank.com; christopher.hagen@usbank.com
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
The Securities Intermediary:
    	
 
    	
U.S. Bank National Association
   214 N. Tryon Street, 26th Floor
   Charlotte, NC 28202
    	
 
    	
Attention: Scott DeRoss and Christopher Hagen
   Telephone: (704) 335-4546; (704) 335-2339
   Email: scott.deross@usbank.com; christopher.hagen@usbank.com
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
The Collateral 
    	
 
    	
U.S. Bank National Association
   214 N. Tryon Street, 26th Floor
    	
 
    	
Attention: Scott DeRoss and Christopher Hagen
    

 

Sch.  1-2

 

	
Administrator:
    	
 
    	
Charlotte, NC 28202
    	
 
    	
Telephone: (704) 335-4546; (704) 335-2339
   Email: scott.deross@usbank.com; christopher.hagen@usbank.com
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
JPMCB:
    	
 
    	
JPMorgan Chase Bank, National Association
   c/o JPMorgan Services Inc.
   500 Stanton Christiana Rd., 3rd Floor
   Newark, Delaware 19713
    	
 
    	
Attention: Robert Nichols
   Facsimile: (302) 634-1092
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
with a copy to:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
JPMorgan Chase Bank, National Association
   270 Park Avenue
   New York, New York 10017
    	
 
    	
Attention: Eugene O’Neill
   Telephone: 212-834-9295
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
The Custodian and the Account Bank:
    	
 
    	
Elavon Financial Services Limited, UK Branch
   125 Old Broad Street, London, EC2N 1AR
    	
 
    	
Attention: CLO Relationship Management

Email: CLO.Relationship.Management@usbank.com
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Each other Financing Provider:
    	
 
    	
The address (or facsimile number or electronic mail   address) provided by it to the Administrative Agent.
    	
 
    	
 
    

 

Sch.  1-3

 

SCHEDULE 2

 

Contents of Approval Requests

 

Each Approval Request shall include the below information for the related Portfolio Investment.  Additionally, the excel file attached as Exhibit I to the Approval Request shall be emailed separately to the following addresses:

louis.cerrotta@jpmorgan.com; ji.han@jpmorgan.com; ruchira.patel@jpmorgan.com; desiree.fixler@jpmorgan.com; pooja.malhotra@jpmorgan.com; Jacob.s.pollack@jpmorgan.com; ravi.d.sarawgi@jpmorgan.com; jason.e.adler@jpmorgan.com; de_custom_business@jpmchase.com; ct.financing.requests@jpmorgan.com

 

JPMorgan Chase Bank, National Association,
 as Administrative Agent
 c/o JPMorgan Services Inc.
 500 Stanton Christiana Rd., 3rd Floor
 Newark, Delaware 19713
 Attention:  Ryan Hanks
 Email: ryan.j.hanks@jpmorgan.com

 

JPMorgan Chase Bank, National Association,
 as Administrative Agent
 383 Madison Avenue
 New York, New York 10179
 Attention:  Louis Cerrotta
 Email: desiree.fixler@jpmorgan.com

ji.han@jpmorgan.com

pooja.malhotra@jpmorgan.com

Jeffrey.l.panzo@jpmorgan.com

Arthur.flynn@jpmorgan.com

 

JPMorgan Chase Bank, National Association,
 as Lender
 c/o JPMorgan Services Inc.
 500 Stanton Christiana Rd., 3rd Floor
 Newark, Delaware 19713
 Attention:  Ryan Hanks

 

cc:

 

U.S. Bank National Association, 
 as Collateral Agent and Collateral Administrator

214 N. Tryon Street, 26th Floor
 Charlotte, NC 28202
 Attention:  Scott DeRoss and Christopher Hagen

 

Sch. 2-1

 

Ladies and Gentlemen:

 

Reference is hereby made to the Loan Agreement, dated as of December 17, 2015 (the “Agreement”), among Hamilton Finance LLC, as borrower (the “Company”), JPMorgan Chase Bank, National Association, as administrative agent (the “Administrative Agent”), the financing providers party thereto, and the collateral agent, collateral administrator and securities intermediary party thereto.  Capitalized terms used herein and not otherwise defined herein shall have the respective meanings given such terms in the Agreement.

 

Pursuant to the Agreement, the Investment Manager hereby requests approval for the Company to acquire the Portfolio Investment described in Exhibit I hereto via [Purchase][Substitution].

 

To the extent available, we will, promptly following delivery of this Approval Request, send the information below to the following e-mail addresses:

 

desiree.fixler@jpmorgan.com, ji.han@jpmorgan.com, pooja.malhotra@jpmorgan.com, Jeffrey.l.panzo@jpmorgan.com and Arthur.flynn@jpmorgan.com

 

(1) the material Underlying Instruments (including the collateral and security documents) relating to each such Portfolio Investment, (2) audited financial statement for the previous most recently ended three years of the obligor of each such Portfolio Investment, (3) quarterly statements for the previous most recently ended eight fiscal quarters of the obligor of each such Portfolio Investment, (4) any appraisal or valuation reports conducted by third parties, (5) applicable “proof of existence” details (if requested by the Administrative Agent) and (6) the ratio of indebtedness to EBITDA as calculated by the Investment Manager using information provided to the Investment Manager by the related obligor.  The Investment Manager acknowledges that it will provide such other information from time to time reasonably requested by the Administrative Agent.

 

	
 
    	
Very truly yours,
    
	
 
    	
 
    
	
 
    	
CAREY CREDIT INCOME FUND,
    
	
 
    	
as Investment Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

Sch. 2-2

 

Exhibit I to Approval Request

 

(attach an Excel file containing the following information relating to the Portfolio Investment)

 

	
Fund
    
	
Issuer / Obligor
    
	
Jurisdiction
    
	
Identifier (LoanX; CUSIP)
    
	
Requested Notional Amount
    
	
Asset Class
    
	
Current Pay
    
	
Syndication Type
    
	
Lien
    
	
Tranche Size (Pro Forma)
    
	
Price
    
	
Spread / Coupon
    
	
Base Rate
    
	
LIBOR Floor
    
	
Maturity
    
	
Moody’s SIC
    
	
LTM EBITDA (In Millions)
    
	
LTM Capital Expenditures (in Millions)
    
	
Leverage Through Tranche (Net)
    

 

Sch. 2-3

 

SCHEDULE 3

 

Eligibility Criteria

 

(i)                                     is a Loan or a debt security and is not a Structured Finance Obligation, Letter of Credit, Synthetic Security, participation interest in a Loan or debt security, Delayed Funding Term Loan (unless collateral with respect to the amount of any unfunded commitment thereunder satisfactory to the Administrative Agent has been provided to the Administrative Agent on behalf of the Lenders), Revolving Credit Facility or Zero-Coupon Security;

 

(ii)                                  it is a debt obligation payable in U.S. dollars or a Permitted Non-USD Currency, purchased at a price that is at least 80% of the par amount of such obligation;

 

(iii)                               it is issued by a company organized in an Eligible Jurisdiction and if such company is organized in an Eligible Jurisdiction other than the United States and such obligation is not denominated in a Permitted Non-USD Currency, such company has submitted to jurisdiction in the United States in the related Underlying Instrument and the related Underlying Instrument is governed by the laws of a State of the United States;

 

(iv)                              it is eligible to be entered into by, sold or assigned to the Company and pledged to the Collateral Agent or the Collateral Trustee, as applicable;

 

(v)                                 it provides for periodic payments of interest thereon in cash at least semi-annually;

 

(vi)                              it is an obligation upon which no payments are subject to deduction or withholding for or on account of any withholding Taxes imposed by any jurisdiction unless the related obligor is required to make “gross-up” payments that cover the full amount of any such withholding Taxes (subject to customary conditions to such payments which the Company (or the Investment Manager on behalf of the Company) in its good faith reasonable judgment expects to be satisfied);

 

(vii)                           it is not a Defaulted Obligations (unless it is a Current Pay Obligation);

 

(viii)                        its acquisition and holding by the Company will not require the Company to register as a lender or take any similar action in any jurisdiction;

 

(ix)                              it is not at the time of purchase or commitment to purchase the subject of an offer other than (a) an offer of publicly registered securities with equal or greater face value and substantially identical terms issued in exchange for securities issued under Rule 144A (or other obligations with equal or greater face value and terms that are at least as favorable as the obligation to be exchanged (as agreed to by the Investment Manager and the Administrative Agent in their respective sole discretion)) or (b) an offer pursuant to the terms of which the offeror offers to acquire a debt obligation in exchange for consideration consisting solely of cash

 

Sch. 3-1

 

in an amount equal to or greater than the full face amount of such debt obligation plus any accrued and unpaid interest;

 

(x)                                 it is not a security whose repayment is subject to substantial material non-credit related risk as determined by the Investment Manager in its good faith and reasonable judgment;

 

(xi)                              if such obligation provides for the payment of interest at a floating rate, such floating rate is determined by reference to (1) the Dollar prime rate, the LIBO Rate, a EURIBOR Rate, a GBP-LIBOR rate or similar interbank offered rate or commercial deposit rate or (2) any other index approved by the Administrative Agent;

 

(xii)                           it will not cause the Company or the pool of Collateral to be required to register as an investment company under the Investment Company Act of 1940, as amended; and

 

(xiii)                        it is not an equity security and does not provide, on the date of acquisition, for conversion or exchange at any time over its life into an equity security;

 

provided, however, that one or more of the foregoing requirements may be waived in writing by the Administrative Agent (in its sole and absolute discretion) prior to the Company’s commitment to purchase a Portfolio Investment.

 

Sch. 3-2

 

SCHEDULE 4

 

Concentration Limitations

 

The “Concentration Limitations” shall be satisfied on any date of determination if, in the aggregate, the Portfolio Investments owned (or in relation to a proposed purchase of a Portfolio Investment, proposed to be owned) by the Company comply with all the requirements set forth below:

 

1.                                      Portfolio Investments issued by a single obligor and its affiliates may not exceed an aggregate principal balance equal to $17,500,000 (or, prior to the end of the Ramp-Up Period, the greater of (i) 6.00% of the Total Principal Balance and (ii) $17,500,000); provided that Portfolio Investments issued by two (2) obligors and their respective affiliates may each constitute up to an aggregate principal balance equal to $21,875,000 (or, prior to the end of the Ramp-Up Period, the greater of (i) 7.5% of the Total Principal Balance and (ii) $21,875,000).

 

2.                                      From and after the end of the Ramp-Up Period, not less than 70% of the Total Principal Balance may consist of First Lien Loans and cash and Eligible Investments on deposit in the Accounts representing Principal Proceeds.

 

3.                                      From and after the end of the Ramp-Up Period, not more than an aggregate of 30% of the Total Principal Balance may consist of Portfolio Investments other than First Lien Loans.

 

4.                                      From and after the end of the Ramp-Up Period, not more than an aggregate of 10% of the Total Principal Balance may consist of Mezzanine Loans (or, for the avoidance of doubt, any other unsecured obligation of an obligor).

 

5.                                      From and after the end of the Ramp-Up Period, not more than an aggregate of 20% of the Total Principal Balance may consist of Portfolio Investments that are issued by obligors that belong to a given Moody’s Classified Industry, with the exception of any one Moody’s Classified Industry, for which up to 30% of the Total Principal Balance may be issued by obligors that belong to such Moody’s Classified Industry.

 

6.                                      Not more than an aggregate of 5% of the Total Principal Balance may consist of Current Pay Obligations.

 

7.                                      Not more than an aggregate of 15% of the Total Principal Balance may consist of Portfolio Investments denominated in Permitted Non-USD Currencies.

 

8.                                      Not more than an aggregate of 15% of the Total Principal Balance may consist of Portfolio Investments whose obligors are organized in Eligible Jurisdictions other than the United States.

 

Sch. 4-1

 

SCHEDULE 5

 

Form of Position Report

 

	
Asset
   ID
    	
 
    	
Issuer
   Name
    	
 
    	
Asset
   Name
    	
 
    	
Asset
   Detail
   Type
   Name
    	
 
    	
Asset
   Rate
   Type
   Name
    	
 
    	
Asset
   Maturity
   Date
    	
 
    	
Asset
   Security
   ID
    	
 
    	
Issuer
   ID
    	
 
    	
Currency
   Type ID
    	
 
    	
Spot
   Rate
    	
 
    	
Asset
   Type
   Name
    	
 
    	
Facility
   LIBOR
   Spread
    	
 
    	
Out-
   standing
   Settled
    	
 
    	
Current
   Pay
    	
 
    	
Juristiction
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

Sch. 6-1

 

EXHIBIT A

 

Form of Request for Advance

 

JPMorgan Chase Bank, National Association,
  as Administrative Agent
 c/o JPMorgan Services Inc.
 500 Stanton Christiana Rd., 3rd Floor
 Attention:  Ryan Hanks

 

JPMorgan Chase Bank, National Association,
 as Administrative Agent
 383 Madison Avenue
 New York, New York 10179
 Attention:  Louis Cerrotta
  Email:    louis.cerrotta@jpmorgan.com
 ji.han@jpmorgan.com
 ruchira.patel@jpmorgan.com
 desiree.fixler@jpmchase.com
 Pooja.malhotra@jpmorgan.com
 de_custom_business@jpmchase.com

 

JPMorgan Chase Bank, National Association,
 as Lender
 c/o JPMorgan Services Inc.
 500 Stanton Christiana Rd., 3rd Floor
 Newark, Delaware 19713
  Attention:  Robert Nichols

 

cc:

 

Hamilton Finance LLC
 c/o Carey Credit Income Fund

50 Rockefeller Plaza

13th Floor

New York, NY 10020

 

U.S. Bank National Association, 
 as Collateral Agent and Collateral Administrator
 214 N. Tryon Street, 26th Floor
 Charlotte, NC 28202
 Attention:  Scott DeRoss and Christopher Hagen

 

Ladies and Gentlemen:

 

Reference is hereby made to the Loan Agreement, dated as of December 17, 2015 (the “Agreement”), among Hamilton Finance LLC, as borrower (the “Company”), JPMorgan Chase Bank, National Association, as administrative agent (the “Administrative Agent”), the financing

 

Exh. A-1

 

providers party thereto, and the collateral agent, collateral administrator and securities intermediary party thereto.  Capitalized terms used herein and not otherwise defined herein shall have the respective meanings given such terms in the Agreement.

 

Pursuant to the Agreement, you are hereby notified of the following:

 

(1)           The Company hereby requests an Advance under Section 2.03 of the Agreement to be funded on [*].

 

(2)           The aggregate amount of the Advance requested hereby is $[*].(1)

 

(3)           The proposed purchases (if any) relating to this request are as follows:

 

	
Asset Name(s)
    	
 
    	
Draw Amount(s)
   Requested
    	
 
    	
Market Value of
   Asset(s)
    	
 
    	
Price of Asset(s)
    	
 
    	
Purchased
   Interest (if any)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

We hereby certify that all conditions to the Purchase of such Portfolio Investment(s) set forth in Section 1.03 of the Agreement have been satisfied or waived as of the related Trade Date (and shall be satisfied or waived as of the related Settlement Date).

 

	
 
    	
Very truly yours,
    
	
 
    	
 
    
	
 
    	
CAREY CREDIT INCOME FUND
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

(1)                                 Note:  The requested Financing shall be in an amount such that, after giving effect thereto and the related purchase of the applicable Portfolio Investment(s) and/or Permitted Distribution (if any), the Compliance Condition is satisfied.

 

Exh. A-2

 

EXHIBIT B

 

Moody’s Industry Classification Groups

 

	
Industry
   Code
    	
 
    	
Description
    
	
1
    	
 
    	
Aerospace & Defense
    
	
2
    	
 
    	
Automotive
    
	
3
    	
 
    	
Banking, Finance, Insurance & Real   Estate
    
	
4
    	
 
    	
Beverage, Food & Tobacco
    
	
5
    	
 
    	
Capital Equipment
    
	
6
    	
 
    	
Chemicals, Plastics & Rubber
    
	
7
    	
 
    	
Construction & Building
    
	
8
    	
 
    	
Consumer goods:  Durable
    
	
9
    	
 
    	
Consumer goods:  Non-durable
    
	
10
    	
 
    	
Containers, Packaging & Glass
    
	
11
    	
 
    	
Energy:  Electricity
    
	
12
    	
 
    	
Energy:  Oil & Gas
    
	
13
    	
 
    	
Environmental Industries
    
	
14
    	
 
    	
Forest Products & Paper
    
	
15
    	
 
    	
Healthcare & Pharmaceuticals
    
	
16
    	
 
    	
High Tech Industries
    
	
17
    	
 
    	
Hotel, Gaming & Leisure
    
	
18
    	
 
    	
Media: Advertising, Printing & Publishing
    
	
19
    	
 
    	
Media:  Broadcasting & Subscription
    
	
20
    	
 
    	
Media:  Diversified & Production
    
	
21
    	
 
    	
Metals & Mining
    
	
22
    	
 
    	
Retail
    
	
23
    	
 
    	
Services:  Business
    
	
24
    	
 
    	
Services:  Consumer
    
	
25
    	
 
    	
Sovereign & Public Finance
    
	
26
    	
 
    	
Telecommunications
    
	
27
    	
 
    	
Transportation:  Cargo
    
	
28
    	
 
    	
Transportation:  Consumer
    
	
29
    	
 
    	
Utilities:  Electric
    
	
30
    	
 
    	
Utilities:  Oil & Gas
    
	
31
    	
 
    	
Utilities:  Water
    
	
32
    	
 
    	
Wholesale
    

 

Exh. B-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00252-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00252-of-00352.parquet"}]]