Document:

ex101loanagreement

       LOAN AND SECURITY AGREEMENT  This LOAN AND SECURITY AGREEMENT (this “Agreement”) is entered into as of  June 30, 2022, by and among CUE HEALTH INC., a Delaware corporation (“Borrower”), the  financial institutions from time to time party to this Agreement (collectively, “Lenders” and  individually, each a “Lender”), EAST WEST BANK, as collateral and administrative agent for  Lenders (in such capacity, “Agent”), and COMERICA BANK as Documentation Agent.  RECITALS  This Agreement sets forth the terms on which Lenders will advance credit to Borrower,  and Borrower will repay the amounts owing to Lenders.  AGREEMENT  The parties agree as follows:  1. DEFINITIONS AND CONSTRUCTION.  1.1 Definitions.  As used in this Agreement, all capitalized terms shall have the  definitions set forth on Exhibit A.  Any term used in the Code and not defined herein shall have  the meaning given to the term in the Code.  1.2 Accounting Terms.  Any accounting term not specifically defined on  Exhibit A shall be construed in accordance with GAAP and all calculations shall be made in  accordance with GAAP; provided that if at any time any change in GAAP would affect the  computation of any financial ratio or covenant requirement set forth in any Loan Documents, and  any of Agent, Lenders or Borrower shall so request, Borrower, Agent and Lenders shall negotiate  in good faith to amend such ratio or covenant requirement to preserve the original intent thereof  in light of such change in GAAP. The term “financial statements” shall include the accompanying  notes and schedules.  1.3 Interpretation.  Any references to “pro rata”, “pro rata share”, “ratably” or  similar terms shall take into account the Revolving Loan Commitment Percentage of each Lender  and any outstanding commitments, undrawn Letters of Credit, and reimbursement obligations  related to any Letters of Credit.    2. LOAN AND TERMS OF PAYMENT.  2.1 Credit Extensions.  (a) Promise to Pay.  Borrower promises to pay to Agent for the benefit  of Lenders, in lawful money of the United States of America, the aggregate unpaid  principal amount of all Credit Extensions made by Lenders to Borrower, together with  interest on the unpaid principal amount of such Credit Extensions at the times and at the  interest rates in accordance with the terms hereof.   2      (b) Advances Under Revolving Line.  (i) Amount.  Subject to and upon the terms and conditions of  this Agreement, Borrower may request, and Lenders severally agree to make to  Borrower loans on a revolving credit basis (each a “Revolving Loan” and  collectively the “Revolving Loans”) in an aggregate outstanding original principal  amount for all Lenders at any time outstanding not to exceed the lesser of (i) the  Revolving Line and (ii) such amount as Borrower would still be in compliance with  the asset coverage ratio set forth in Section 6.7(a), provided that in no event shall  any Lender be obligated to make a Revolving Loan or participate in a Letter of  Credit if after giving effect to such Revolving Loan or such participation the sum  of such Lender’s (w) Revolving Loans outstanding, (x) Revolving Loan  Commitment Percentage of the aggregate maximum amount to be drawn under all  Letters of Credit outstanding and (y) Revolving Loan Commitment Percentage of  the aggregate amount of unreimbursed drawings under all Letters of Credit  outstanding, would exceed its Revolving Loan Commitment.  Amounts borrowed  pursuant to this Section 2.1(b) may be repaid and reborrowed at any time, from  time to time, without penalty or premium prior to the Revolving Maturity Date, at  which time all outstanding Advances under this Section 2.1(b) together with all  accrued but unpaid interest and fees thereon shall be immediately due and payable.  (ii) Form of Request; Lender Funding of Advances.  Whenever  Borrower desires an Advance, Borrower will give the Agent irrevocable notice by  electronic mail, facsimile transmission or telephone no later than 9:00 a.m., Pacific  time, on the Business Day that the Advance is to be made.  Each such notification  shall be promptly confirmed by a Payment/Advance Form in substantially the form  of Exhibit C and delivered by a Responsible Officer.  Upon receipt of such notice,  the Agent shall promptly notify each Lender thereof on the date of receipt of such  notice.  On the proposed borrowing date, not later than 1:00 p.m., Pacific time, each  Lender shall make available to the Agent the amount of such Lender’s pro rata share  of the aggregate borrowing amount (as determined in accordance with this Section  2.1(b)) in immediately available funds by wiring such amount to such account as  the Agent shall specify.  Agent and Lenders shall be entitled to rely on any facsimile  or telephonic notice given by a person who Agent and/or Lender reasonably  believes to be a Responsible Officer or a designee thereof, and Borrower shall  indemnify and hold Agent and Lenders harmless for any damages or loss suffered  by such Agent or Lender as a result of such reliance.  Agent will credit the amount  of Advances made under this Section 2.1(b) to a deposit account of the Borrower  at the Agent as Borrower requests in writing; provided that such deposit account is  subject to a perfected security interest in favor of the Agent for the benefit of the  Lenders.  (iii) Defaulting Lenders.  If and to the extent any Lender (a  “Defaulting Lender”) shall not have made its pro rata share of the Revolving Loan  available to the Agent in immediately available funds as set forth in this Section  2.1(b) and the Agent in such circumstances has made available to Borrower such  amount, that Lender shall, on the Business Day following the date of such Advance   3      (the “Funding Date”), make such amount available to the Agent; provided that  Agent shall be entitled to any interest applicable to such Advance for each day  during such period.  A notice submitted by the Agent to any Lender with respect to  amounts owing under this subsection shall be conclusive, absent demonstrable  error.  If such amount is so made available, such payment to the Agent shall  constitute such Defaulting Lender’s Advance on the Funding Date of such Advance  for all purposes of this Agreement.  If such amount is not made available to the  Agent on the Business Day following the Funding Date, the Agent will notify  Borrower of such failure to fund and, upon demand by the Agent, Borrower shall  pay such amount to the Agent for the Agent’s account, together with interest  thereon for each day elapsed since the Funding Date of such Advance, at a rate per  annum equal to the interest rate applicable at the time to the Advances composing  such Advance, without in any way prejudicing the rights and remedies of Borrower  against such Defaulting Lender.  The failure of any Lender to make any Advance  on any Funding Date shall not relieve any other Lender of any obligation hereunder  to make a Loan on such Funding Date, but no Lender shall be responsible for the  failure of any other Lender to make the Advance to be made by such other Lender  on any Funding Date.  (c) Letters of Credit.    (i) As a subfacility under the Revolving Line, the L/C Issuer  agrees from time to time (subject to the terms and conditions of this Agreement) to  issue or cause an Affiliate to issue commercial and standby letters of credit for the  account of the Borrower (each a “Letter of Credit,” and collectively “Letters of  Credit”) until thirty (30) days prior to the Revolving Maturity Date; provided,  however, that the aggregate drawn and undrawn amount of all outstanding Letters  of Credit (including the Existing Letters of Credit) shall not at any time exceed  Twenty Million and 00/100 Dollars ($20,000,000) (the “L/C Sublimit”).  For the  avoidance of doubt, the L/C Sublimit shall be a part of, and not in addition to, the  Revolving Line.  The undrawn amount of all Letters of Credit shall be reserved  under the Revolving Line and such amount shall not be available for borrowings.   Borrower shall give Agent and the L/C Issuer notice prior to 10:00 a.m., Pacific  time at least five (5) Business Days prior to the proposed date of issuance of each  Letter of Credit, specifying the beneficiary, the proposed date of issuance and the  expiry date of such Letter of Credit, and describing the proposed terms of such  Letter of Credit and the nature of the transactions proposed to be supported thereby.   The issuance by the L/C Issuer of any Letter of Credit shall, in addition to the  conditions precedent set forth in Section 3, be subject to the conditions precedent  that such Letter of Credit shall be satisfactory to the L/C Issuer and that Borrower  shall have executed and delivered such application agreement and/or such other  instruments and agreements relating to such Letter of Credit as the L/C Issuer shall  have requested in its sole discretion (each, a “L/C Application”).  The L/C Issuer  shall deliver a copy of the L/C Application to the Agent.  The form and substance  of each Letter of Credit shall be subject to approval by the L/C Issuer, in its sole  discretion.  Each Letter of Credit shall be issued for a term, as designated by the  Borrower, not to exceed three hundred and sixty-five (365) days; provided,   4      however, that no Letter of Credit shall have an expiration date later than five (5)  Business Days prior to the Revolving Maturity Date unless Borrower has posted on  the date of issuance of such Letter of Credit cash collateral to an account at the L/C  Issuer and in which the Borrower grants a security interest to the Agent (for the  benefit of the Lenders) in an amount equal to one hundred three percent (103%) of  such Letter of Credit on terms satisfactory to the Agent and the L/C Issuer in their  sole discretion, in which case the expiry date of such cash collateralized Letters of  Credit may be up to one (1) year later than the fifth (5th) Business Day prior to the  Revolving Maturity Date.  The Letters of Credit may include a provision providing  that their expiry date will automatically be extended each year for an additional one  (1) year period unless the L/C Issuer delivers written notice to the contrary.  Each  Letter of Credit shall be subject to the additional terms and conditions of the Letter  of Credit agreements, applications and any related documents required by the L/C  Issuer in connection with the issuance of Letters of Credit.  The L/C Issuer shall  deliver to the Agent, concurrently with or promptly following its issuance of any  Letter of Credit, a true and complete copy of each Letter of Credit. Promptly upon  its receipt thereof, the Agent shall give notice to each Lender of the issuance of  each Letter of Credit, specifying the amount thereof and the amount of such  Lender’s percentage thereof.  (ii) If the L/C Issuer shall honor a draft or other demand for  payment presented or made under any Letter of Credit, the Borrower agrees to pay  to the L/C Issuer an amount equal to the amount paid by the L/C Issuer in respect  of such draft or other demand under such Letter of Credit and all reasonable  expenses paid or incurred by the Agent relative thereto not later than 1:00 p.m.  Pacific time, in United States dollars, on (i) the Business Day that the Borrower  received notice of such presentment and honor, if such notice is received prior to  11:00 a.m. Pacific time or (ii) the Business Day immediately following the day that  the Borrower received such notice, if such notice is received after 11:00 a.m. Pacific  time.    (iii) If the L/C Issuer shall honor a draft or other demand for  payment presented or made under any Letter of Credit, but the Borrower does not  reimburse the L/C Issuer as required under clause (ii) above and the Revolving Line  has not been terminated (whether by maturity, acceleration or otherwise), such  drawing paid under such Letter of Credit shall be deemed an Advance under the  Revolving Line and shall be repaid by the Borrower in accordance with the terms  and conditions of this Agreement applicable to such Advances and the Agent will  promptly notify the Lenders of such deemed request, and each such Lender shall  make available to the Agent an amount equal to its pro rata share (based on its  Revolving Loan Commitment Percentage) of the amount of such Advance;  provided, however, that if Advances under the Revolving Line are not available,  for any reason, at the time any drawing is paid, then the Borrower shall immediately  pay to the L/C Issuer the full amount drawn, together with interest from the date  such drawing is paid to the date such amount is fully repaid by the Borrower, at the  rate of interest applicable to Advances under the Revolving Line.  In such event the  Borrower agrees that the Agent, in its sole discretion, may debit any account  

 

 5      maintained by the Borrower with the Agent for the amount of any such drawing.   Amounts held in such cash collateral account shall be applied by the Agent to the  payment of drafts drawn under such letters of credit and to the obligations and  liabilities of the Borrower to the Agent, in such order of application as the Required  Lenders may in their sole discretion elect.  Notwithstanding anything herein to the  contrary, the L/C Issuer shall have no obligation hereunder to issue any Letter of  Credit the proceeds of which would be made available to any Person to fund any  activity or business in any Prohibited Territory or with any Person organized under  or doing business in a Prohibited Territory. In addition to the Letters of Credit  issued hereunder after the Closing Date, the Existing Letters of Credit shall remain  outstanding as of the date hereof, shall be deemed to have been issued pursuant  hereto, and shall be considered Letters of Credit hereunder and from and after the  Closing Date shall be subject to and governed by the terms and conditions hereof  including all fees in respect thereof. Notwithstanding the foregoing, (i) Borrower  shall not be required to pay any additional issuance fees with respect to the issuance  of the Existing Letters of Credit solely as a result of such letters of credit being  converted to Letters of Credit hereunder (but the Borrower shall pay the fees set  forth in Section 6.12 hereof in connection with all Letters of Credit, including the  Existing Letters of Credit), and (ii) no Existing Letter of Credit may be extended or  renewed.  (iv) Upon issuance by the L/C Issuer of each Letter of Credit  hereunder (and on the Closing Date with respect to each Existing Letter of Credit),  each Lender shall automatically acquire a pro rata participation interest in such  Letter of Credit and related payments made by the L/C Issuer in connection with  such Letter of Credit, based on its respective Revolving Loan Commitment  Percentage.  (v) Each Lender agrees to reimburse the L/C Issuer on demand,  pro rata in accordance with its respective Revolving Loan Commitment Percentage,  for (i) the reasonable out-of-pocket costs and expenses of the L/C Issuer to be  reimbursed by the Borrower pursuant to any Letter of Credit (or related agreement),  to the extent not reimbursed by the Borrower or any other Loan Party and (ii) any  and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits,  costs, fees, reasonable out-of-pocket expenses or disbursements of any kind and  nature whatsoever which may be imposed on, incurred by or asserted against L/C  Issuer in any way relating to or arising out of this Agreement, any Letter of Credit,  any documentation or any transaction relating thereto, to the extent not reimbursed  by the Borrower, except to the extent that such liabilities, losses, costs or expenses  were incurred by L/C Issuer as a result of L/C Issuer’s gross negligence or willful  misconduct as determined by a court of competent jurisdiction by final and  nonappealable judgment or by the L/C Issuer’s wrongful dishonor of any Letter of  Credit after the presentation to it by the beneficiary thereunder of a draft or other  demand for payment and other documentation strictly complying with the terms  and conditions of such Letter of Credit.   6      2.2 Overadvances.  If the aggregate principal amount of the outstanding  Advances at any time exceeds the Revolving Line, Borrower shall promptly (but in any event  within three (3) Business Days) after the occurrence of such event, pay to Agent for the benefit of  the Lenders, in cash, the amount of such excess.  2.3 Interest Rates, Payments, and Calculations.  (a) Interest Rate.  Except as set forth in Section 2.3(b), the Advances  shall bear interest, on the outstanding daily balance thereof, at a rate equal to the Prime  Rate but in no event shall the interest rate be less than three and one half percent (3.50%).  (b) Default Rate.  All outstanding Obligations shall bear interest, from  and after the occurrence and during the continuance of an Event of Default, at a rate equal  to two (2) percentage points above the interest rate applicable immediately prior to the  occurrence of the Event of Default or such lesser amount the Required Lenders elect to  impose from time to time in their sole discretion.  (c) Payments.  Interest hereunder shall be due and payable in arrears on  the first calendar day of each calendar month during the term hereof.  Agent shall, at its  option, charge such interest, all Lender Expenses, and all Periodic Payments against any of  Borrower’s deposit accounts (other than deposit accounts exclusively used for payroll,  payroll taxes and other employee wage and benefit payments to or for the benefit of  Borrower’s employees) or, to the extent sufficient funds are not present in Borrower’s  deposit accounts, against the Revolving Line, and if charged against the Revolving Line  those charges shall thereafter be deemed to be Advances and shall thereafter accrue interest  at the rate then applicable hereunder.  Without limiting the foregoing, any interest not paid  when due shall become a part of the Obligations, and such interest shall thereafter accrue  interest at the rate then applicable hereunder.  (d) Computation.  In the event the Prime Rate is changed from time to  time hereafter, the applicable rate of interest hereunder shall be increased or decreased,  effective as of the day the Prime Rate is changed, by an amount equal to such change in  the Prime Rate.  Agent shall give Borrower prompt notice of such change in the Prime  Rate.  All interest chargeable under the Loan Documents shall be computed on the basis of  a three hundred sixty (360) day year for the actual number of days elapsed.  2.4 Pro Rata Treatment and Payments.  Each payment (including each  prepayment) by the Borrower on account of fees, principal of and interest on the Credit Extensions  shall be made pro rata according to the respective Revolving Loan Commitment Percentages then  held by the Lenders.  All payments (including prepayments) to be made by the Borrower  hereunder, whether on account of principal, interest, fees or otherwise, shall be made without set- off, deduction or counterclaim and shall be made prior to 12:00 noon, Pacific time, on the due date  thereof to the Agent, for the account of the Lenders.  The Agent shall distribute such payments to  the applicable Lenders promptly upon receipt in like funds as received.  Except during the  continuance of an Event of Default, Agent shall credit a wire transfer of funds, check or other item  of payment to such deposit account or Obligation as Borrower specifies.  After the occurrence and  during the continuance of an Event of Default, Agent shall (except as otherwise directed by the   7      Required Lenders) immediately apply any wire transfer of funds, check, or other item of payment  Agent may receive to reduce Obligations (on a pro rata basis), but such applications of funds shall  not be considered a payment on account unless such payment is of immediately available federal  funds or unless and until such check or other item of payment is honored when presented for  payment.  Notwithstanding anything to the contrary contained herein, any wire transfer or payment  received by Agent after 12:00 noon Pacific time shall be deemed to have been received by Agent  as of the opening of business on the immediately following Business Day.  Whenever any payment  to Agent for the benefit of the Lenders under the Loan Documents would otherwise be due (except  by reason of acceleration) on a date that is not a Business Day, such payment shall instead be due  on the next Business Day, and additional fees or interest, as the case may be, shall accrue and be  payable for the period of such extension.  2.5 Lender Expenses and Fees.  Borrower shall pay to Agent on or prior to the  Closing Date, all Lender Expenses incurred through the Closing Date and invoiced to Borrower  on or prior to the Closing Date, and, after the Closing Date, shall pay to Agent all Lender Expenses  invoiced to Borrower, as and when they become due.  Borrower authorizes Agent, at its sole option,  to (i) make an Advance under the Revolving Line  on or after the Closing Date, (ii) debit any other  Borrower account with Agent, or (iii) make demand upon Borrower, in each case for payment of  all Lender Expenses. Lender Expenses due on the Closing Date may be paid by way of an Advance  under the Revolving Line.  2.6 Term.  This Agreement shall become effective on the Closing Date and,  subject to Section 12.8, shall continue in full force and effect for so long as any Obligations (other  than inchoate indemnification or reimbursement obligations or other obligations which, by their  terms, survive termination of this Agreement) remain outstanding or Lenders have any obligation  to make Credit Extensions under this Agreement which obligation shall terminate on the Revolving  Maturity Date.  Notwithstanding the foregoing, Lenders shall have the right pursuant to  Section 9.1(b) to terminate their obligation to make Credit Extensions under this Agreement  immediately and without notice upon the occurrence and during the continuance of an Event of  Default.  2.7 Increased Costs.    (a) If any Change in Law shall:  (i) impose, modify or deem applicable any reserve, special  deposit, compulsory loan, insurance charge or similar requirement against assets  of, deposits with or for the account of, or credit extended or participated in by, any  Lender;  (ii) subject the Agent or any Lender to any Taxes (other than  Indemnified Taxes and Excluded Taxes) on its loans, loan principal, commitments,  or other obligations, or its deposits, reserves, other liabilities or capital attributable  thereto; or  (iii) impose on any Lender any other condition, cost or expense  (other than Taxes) affecting this Agreement or Advances made by such Lender;   8      and the result of any of the foregoing shall be to increase the cost to the Agent, increase the cost  to the L/C Issuer of issuing any Letter of Credit, or increase the cost to any such Lender of  purchasing or maintaining any participation in a Letter of Credit, or the Agent or such Lender of  making or maintaining any Advance or of maintaining its obligation to make any such Advance,  or to reduce the amount of any sum received or receivable by the Agent or such Lender hereunder  (whether of principal, interest or any other amount) then, upon request of the Agent or such Lender,  the Borrower will pay to the Agent or such Lender, as the case may be, such additional amount or  amounts as will compensate the Agent or such Lender, as the case may be, for such additional  costs incurred or reduction suffered.  (b) If any Lender determines that any Change in Law affecting such  Lender or any lending office of such Lender or such Lender’s holding company, if any,  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, the commitments of such Lender or the  Revolving Loans or Letters of Credit 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), then from time to time the Borrower  will pay to such Lender, as the case may be, such additional amount or amounts as will  compensate such Lender or such Lender’s holding company for any such reduction  suffered. The agreements in this Section shall survive the termination of this Agreement,  the expiration of the Letters of Credit and the payment of all Obligations (other than  unasserted contingent indemnification obligations and unasserted expense reimbursement  obligations).  (c) 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 (a) or (b) of this Section and delivered to the Borrower, including a  calculation of the amount in reasonable detail, shall be conclusive absent manifest error.   The Borrower shall pay such Lender the amount shown as due on any such certificate  within ten (10) days after receipt thereof. Any such certificate must be delivered within six  (6) months after the incurrence by the Lender or its holding company, as the case may be,  of the amounts set forth therein (except that, if the Change in Law giving rise to such  amounts is retroactive, then the six (6) month period referred to herein shall be extended  to include the period of retroactive effect thereof).  3. CONDITIONS OF LOANS.  3.1 Conditions Precedent to Initial Credit Extension.  The obligation of Lenders  to make the initial Credit Extension is subject to the condition precedent that Agent, and Lenders  where necessary, shall have received, in form and substance satisfactory to Agent and Lenders, the  following except as otherwise provided in Section 6.14:  (a) this Agreement;  (b) a promissory note for each Lender that requests one;  

 

 9      (c) an officer’s certificate of Borrower with respect to good standing,  no material adverse effect, incumbency and resolutions authorizing the execution and  delivery of this Agreement in the form of Exhibit G attached hereto;  (d) UCC National Form Financing Statement;  (e) intellectual property security agreements;  (f) such landlord and bailee waivers as requested by Agent;  (g) copies of insurance certificates evidencing the insurance coverage  required under Section 6.4 hereof and the insurance endorsements required by such  Section;  (h) payment of fees and Lender Expenses then due as specified in  Section 2.5;  (i) current SOS Reports indicating that except for Permitted Liens,  there are no other security interests or Liens of record in the Collateral;  (j) current financial statements, including audited statements for  Borrower’s fiscal year ended December 31, 2021, together with an unqualified opinion,  company prepared consolidated balance sheets and income statement for the most recently  ended fiscal quarter in accordance with Section 6.2, and such other updated financial  information as Agent may reasonably request;  (k) current Compliance Certificate in accordance with Section 6.2;  (l) a perfection certificate;  (m) subject to Section 4.2, securities and/or deposit account control  agreements with respect to any accounts maintained by a Loan Party;  (n) an Automatic Debit Authorization in the form of Exhibit H attached  hereto;  (o) Agent shall have been provided the opportunity to inspect  Borrower’s Books and to make copies thereof and to check, test, and appraise the Collateral  in order to verify Borrower’s financial condition or the amount, condition of, or any other  matter relating to, the Collateral;   (p) a fee letter between Agent and Borrower and payment of the fees  specified therein that are payable on the Closing Date; and  (q) such other documents or certificates, and completion of such other  matters, as Agent or any Lender may reasonably request, including, without limitation, any  such documents or certificates required in connection with customary “know your  customer” requirements, USA Patriot Act, and Beneficial Ownership Regulations.   10      3.2 Conditions Precedent to all Credit Extensions.  The obligation of Lenders  to make each Credit Extension, including the initial Credit Extension, is further subject to the  following conditions:  (a) timely receipt by Lenders of the Payment/Advance Form as  provided in Section 2.1;  (b) the representations and warranties contained in Article 5 shall be  true and correct in all material respects on and as of the date of such Payment/Advance  Form and on the effective date of each Credit Extension as though made at and as of each  such date, and no Default or Event of Default shall have occurred and be continuing, or  would immediately exist after giving effect to such Credit Extension (provided, however,  that those representations and warranties expressly referring to another date shall be true  and correct in all material respects as of such date, and those representations and warranties  already subject to materiality or a Material Adverse Effect condition shall be true and  correct in all respects).  The making of each Credit Extension shall be deemed to be a  representation and warranty by Borrower on the date of such Credit Extension as to the  accuracy of the facts referred to in this Section 3.2(b); and  (c) the financial covenants set forth in Section 6.7 shall be met  immediately prior to and after giving effect to such borrowing.  4. CREATION OF SECURITY INTEREST AND GUARANTY.  4.1 Grant of Security Interest.  Each Loan Party grants and pledges to Agent  (for the benefit of the Lenders) a continuing security interest in the Collateral to secure prompt  repayment of any and all Obligations and to secure prompt performance by each Loan Party of  each of its covenants and duties under the Loan Documents.  Subject to Permitted Liens other than  those under clauses (a), (j), (k), (l) (if the underlying lien is referenced in this sentence), (m) and  (p) of such definition, such security interest constitutes a valid, first priority security interest in the  presently existing Collateral, and will constitute a valid, first priority security interest in later- acquired Collateral.  Each Loan Party also hereby agrees not to sell, transfer, assign, mortgage,  pledge, lease, grant a security interest in, or encumber any of its Intellectual Property, except in  connection with Permitted Liens and Permitted Transfers.  Notwithstanding any termination of  this Agreement, Agent’s Lien (for the benefit of the Lenders) on the Collateral shall remain in  effect for so long as any Obligations (other than inchoate indemnification or reimbursement  obligations or other obligations which, by their terms, survive termination of this Agreement) are  outstanding or any Lender has any obligation to make Credit Extensions under this Agreement.   At the sole expense of Borrower following termination of this Agreement, Agent shall deliver such  documents as Borrower shall reasonably request to evidence such termination.  4.2 Perfection of Security Interest.    (a) Each Loan Party authorizes Agent to file at any time financing  statements, continuation statements, and amendments thereto that (i)  describe the  Collateral as all assets of such Loan Party of the kind pledged hereunder, and (ii) contain  any other information required by the Code for the sufficiency of filing office acceptance   11      of any financing statement, continuation statement, or amendment, including whether such  Loan Party is an organization, the type of organization and any organizational identification  number issued to such Loan Party, if applicable.  Any such financing statements may be  filed by Agent at any time in any jurisdiction whether or not Revised Article 9 of the Code  is then in effect in that jurisdiction.  Each Loan Party shall from time to time endorse and  deliver to Agent, at the request of Agent, all Negotiable Collateral and other documents  that Agent may reasonably request, in form reasonably satisfactory to Agent, to perfect and  continue perfection of Agent’s security interests (for the benefit of the Lenders) in the  Collateral and in order to fully consummate all of the transactions contemplated under the  Loan Documents.  The Loan Parties shall have possession of the Collateral, except where  expressly otherwise provided in this Agreement or where Agent chooses to perfect its  security interest by possession in addition to the filing of a financing statement.  Where  Collateral with a value in excess of Five Hundred Thousand and 00/100 Dollars ($500,000)  is in possession of a third party or bailee, the applicable Loan Party shall take such steps  as Agent reasonably requests for Agent to obtain an acknowledgment, in form and  substance reasonably satisfactory to Agent, of the bailee that the bailee holds such  Collateral for the benefit of Agent.  Where Collateral with a value in excess of Five  Hundred Thousand and 00/100 Dollars ($500,000) is located at a property which is not  owned by a Loan Party, the applicable Loan Party shall take such steps as Agent reasonably  requests for Agent to obtain an agreement, in form and substance reasonably satisfactory  to Agent, from the owner and/or mortgagee of such property that it agrees to, among other  things, waive or subordinate any Lien it may have on the Collateral, and agrees to permit  the Agent to enter upon the premises and remove the Collateral or to use the premises to  store or dispose of the Collateral. The applicable Loan Party shall cause Agent to obtain  “control” of any Collateral consisting of investment property, securities accounts or deposit  accounts (other than Excluded Accounts) (as such items and the term “control” are defined  in Revised Article 9 of the Code) by causing the securities intermediary or depositary  institution or issuing bank to execute a control agreement in form and substance reasonably  satisfactory to Agent.  (b) Each Loan Party authorizes Agent, at its option, which shall be  exercised upon request of any Lender, to take such actions as are necessary to cause the  United States to assign to Agent its payment rights under any Accounts owed by it to  Borrower and cause the assignment to be acknowledged under the Assignment of Claims  Act of 1940 (31 U.S.C. 3727) in the event the Accounts owing by the United States in the  aggregate at the end of any calendar month equal or exceed Twenty-Five Million and  00/100 Dollars ($25,000,000). Unless an Event of Default has occurred and is continuing,  Agent will remit to Borrower within one (1) Business Day of receipt any such payments  received in respect of Accounts owing by the United States.  4.3 Right to Inspect.  Agent (through any of its officers, employees, or agents)  shall have the right, upon reasonable prior written notice, from time to time at reasonable times  during Loan Parties’ usual business hours to inspect each Loan Party’s Books and to make copies  thereof and to check, test, and appraise the Collateral in order to verify such Loan Party’s financial  condition or the amount, condition of, or any other matter relating to, the Collateral (the  “Inspection”).  For the avoidance of doubt, Lenders shall be entitled to accompany Agent on any  Inspection. Notwithstanding the foregoing, unless an Event of Default has occurred and is   12      continuing, the Loan Parties’ shall only be obligated to reimburse Agent for one (1) Inspection in  each calendar year.  4.4 Collection Account.  (a) On or prior to the Closing Date, the Borrower shall establish a  deposit account maintained with the Agent (the “Collection Account”).  Promptly after  the Closing Date, the Borrower shall cause each Loan Party to (a) instruct all payments  with respect to Accounts due to such Loan Party to be made directly to the Collection  Account and (b) use commercially reasonable efforts to cause all such payments to be made  by the relevant account debtors directly to the Collection Account (and if any such  payments are received other than through a direct payment to the Collection Account,  Borrower shall cause such payment to be transferred to the Collection Account within five  (5) Business Days of receipt) and while in Borrower’s possession such payments shall be  held by Borrower in trust for Agent as Agent’s trustee, and Borrower shall deliver such  payments to Agent in their original form as received, with proper endorsements for deposit.  (b) After an Event of Default has occurred and is continuing, all items  or amounts remitted to the Collection Account or that Agent has otherwise received shall  be applied to the payment of the Obligations on a daily basis (or such lesser frequency, but  not less than two (2) times per month, as determined by Agent in consultation with  Borrower), whether then due or not, in the order set forth in Section 12.11 and no amounts  shall be swept to other accounts unless the Required Lenders agree in writing to such a  sweep in their sole discretion.  Any amounts in the Collection Account, so long as no Event  of Default exists, shall be transferred on a daily basis by Agent from the Collection Account  to Borrower’s primary operating account maintained with Agent. Except to the extent (but  only to the extent) caused by the Agent’s gross negligence or willful misconduct as  determined by a court of competent jurisdiction by final and nonappealable judgment,  Agent shall not be liable for any loss or damage which Borrower may suffer as a result of  Agent’s processing of items or its exercise of any other rights or remedies under this  Agreement, including without limitation indirect, special or consequential damages, loss  of revenues or profits, or any claim, demand or action by any third party arising out of or  in connection with the processing of items or the exercise of any other rights or remedies  under this Agreement.  Borrower shall indemnify and hold Agent and Lenders harmless  from and against all such third party claims, demands or actions, and all related expenses  or liabilities, including, without limitation, reasonable documented out-of-pocket  attorney’s fees and including claims, damages, fines, expenses, liabilities or causes of  action of whatever kind resulting from Agent’s own negligence except to the extent (but  only to the extent) caused by Agent’s gross negligence or willful misconduct as determined  by a court of competent jurisdiction by final and nonappealable judgment.  4.5 Guaranty.  (a) Unconditional Guaranty of Payment. In consideration of the  foregoing, each Guarantor from time to time party hereto hereby irrevocably, absolutely  and unconditionally guarantees to Agent and Lenders the prompt and complete payment  and performance when due (whether at stated maturity, by acceleration or otherwise) of all  

 

 13      Obligations. Guarantor agrees that it shall execute such other documents or agreements and  take such action as Agent or the Required Lenders shall reasonably request to effect the  purposes of its guaranty. If there is more than one Guarantor hereunder, such Guarantors  shall be jointly and severally obligated for such guarantees provided for herein.  (b) Separate Obligations. These obligations are independent of  Borrower’s obligations and separate actions may be brought against Guarantor (whether  action is brought against Borrower or whether Borrower is joined in the action).  4.6 Guarantor's Waivers.    (a) Except as prohibited by applicable law, Guarantor waives any right  to require Agent or any Lender to  (i)  make any presentment, protest, demand, or notice  of any kind, including notice of change of any terms of repayment of the Indebtedness,  default by Borrower or any other guarantor or surety, any action or nonaction taken by  Borrower, Agent, any Lender, or any other guarantor or surety of Borrower, or the creation  of new or additional Indebtedness;  (ii)  proceed against any person, including Borrower,  before proceeding against Guarantor;  (iii)  proceed against any collateral for the  Indebtedness, including Borrower's collateral, before proceeding against Guarantor;  (iv)   apply any payments or proceeds received against the Indebtedness in any order;  (v)  give  notice of the terms, time, and place of any sale of the collateral pursuant to the Uniform  Commercial Code or any other law governing such sale;  (vi)  disclose any information  about the Indebtedness, the Borrower, the collateral, or any other guarantor or surety, or  about any action or nonaction of Agent or any Lender; or  (vii)  pursue any remedy or  course of action in Lender's power whatsoever.  (b) Guarantor also waives any and all rights or defenses arising by  reason of  (i)  any disability or other defense of Borrower, any other guarantor or surety or  any other person;  (ii)  the cessation from any cause whatsoever, other than payment in full,  of the Indebtedness;  (iii)  the application of proceeds of the Indebtedness by Borrower for  purposes other than the purposes understood and intended by Guarantor, Agent and any  Lender;  (iv)  any act of omission or commission by Lender which directly or indirectly  results in or contributes to the discharge of Borrower or any other guarantor or surety, or  the Indebtedness, or the loss or release of any collateral by operation of law or otherwise;   (v)  any statute of limitations in any action under this Guaranty or on the Indebtedness; or   (vi)  any modification or change in terms of the Indebtedness, whatsoever, including  without limitation, the renewal, extension, acceleration, or other change in the time  payment of the Indebtedness is due and any change in the interest rate, and including any  such modification or change in terms after revocation of this Guaranty on the Indebtedness  incurred prior to such revocation.  (c) Guarantor waives all rights of subrogation, reimbursement,  indemnification, and contribution and any other rights and defenses that are or may become  available to Guarantor by reason of California Civil Code Sections 2787 to 2855, inclusive.  (d) Guarantor waives all rights and any defenses arising out of an  election of remedies by Agent or any Lender even though that the election of remedies,   14      such as a non-judicial foreclosure with respect to security for a guaranteed obligation, has  destroyed Guarantor's rights of subrogation and reimbursement against Borrower by  operation of Section 580d of the California Code of Civil Procedure or otherwise.  (e) Guarantor waives all rights and defenses that Guarantor may have  because Borrower's obligation is secured by real property.  This means among other things:    Agent or any Lender may collect from Guarantor without first foreclosing on any real or  personal property collateral pledged by Borrower. If Agent forecloses on any real property  collateral pledged by Borrower the amount of Borrower's obligation may be reduced only  by the price for which the collateral is sold at the foreclosure sale, even if the collateral is  worth more than the sale price.   Agent may collect from Guarantor even if Agent, by  foreclosing on the real property collateral, has destroyed any right Guarantor may have to  collect from Borrower.  This is an unconditional and irrevocable waiver of any rights and  defenses Guarantor may have because Borrower's obligation is secured by real property.  These rights and defenses include, but are not limited to, any rights and defenses based  upon Section  580a, 580b, 580d, or 726 of the Code of Civil Procedure.  (f) Guarantor understands and agrees that the foregoing waivers are  unconditional and irrevocable waivers of substantive rights and defenses to which  Guarantor might otherwise be entitled under state and federal law.  The rights and defenses  waived include, without limitation, those provided by California laws of suretyship and  guaranty, anti-deficiency laws, and the Uniform Commercial Code.  Guarantor  acknowledges that Guarantor has provided these waivers of rights and defenses with the  intention that they be fully relied upon by Agent and all Lenders.  Guarantor further  understands and agrees that this Guaranty is a separate and independent contract between  Guarantor and Agent and the Lenders, given for full and ample consideration, and is  enforceable on its own terms.  Until all of the Indebtedness is paid in full, Guarantor waives  any right to enforce any remedy Guarantor may have against the Borrower or any other  guarantor, surety, or other person, and further, Guarantor waives any right to participate in  any collateral for the Indebtedness now or hereafter held by Agent.  (g) Guarantor's Understanding With Respect To Waivers.  Guarantor  warrants and agrees that each of the waivers set forth above is made with Guarantor's full  knowledge of its significance and consequences and that, under the circumstances, the  waivers are reasonable and not contrary to public policy or law.  If any such waiver is  determined to be contrary to any applicable law or public policy, such waiver shall be  effective only to the extent permitted by law or public policy.  5. REPRESENTATIONS AND WARRANTIES.  Each Loan Party represents and warrants as follows:  5.1 Due Organization and Qualification.  Each Loan Party and each Subsidiary  is an entity duly existing under the laws of the jurisdiction in which it is organized and qualified  and licensed to do business in any state in which the conduct of its business or its ownership of  property requires that it be so qualified, except where the failure to do so could not reasonably be  expected to cause a Material Adverse Effect.   15      5.2 Due Authorization; No Conflict.  The execution, delivery, and performance  of the Loan Documents are within such Loan Party’s powers, have been duly authorized by such  Loan Party, and are not in conflict with nor constitute a breach of any provision contained in such  Loan Party’s organizational documents, nor will they constitute an event of default under any  material agreement by which any Loan Party is bound.  No Loan Party is in default under any  agreement by which it is bound, except to the extent such default would not reasonably be expected  to cause a Material Adverse Effect.  5.3 Collateral.  The Loan Parties have rights in or the power to transfer the  Collateral, and their title to the Collateral is free and clear of Liens, adverse claims, and restrictions  on transfer or pledge except, in each case, for Permitted Liens.  Except as otherwise agreed to by  Required Lenders from time to time, the Loan Parties shall maintain all tangible Collateral in the  United States other than assets necessary in the operation of up to two cartridge production pods,  related reagent production equipment and plastics tooling to be operated outside of the United  States, which assets may be located outside of the United States. The Eligible Accounts are bona  fide existing obligations. The property or services giving rise to such Eligible Accounts has been  delivered or rendered to the account debtor or its agent for immediate shipment to and  unconditional acceptance by the account debtor. Except as disclosed in writing to Agent, Borrower  has not received notice of actual or imminent Insolvency Proceeding of any account debtor whose  accounts are included in any Eligible Account. No licenses or agreements giving rise to such  Eligible Accounts is with any Prohibited Territory or with any Person organized under or doing  business in a Prohibited Territory.  5.4 Name; Location of Chief Executive Office.  Except as disclosed in the  Schedule, during the last five (5) years prior to the Closing Date, no Loan Party has done business  under any name other than that specified on the signature page hereof, and its exact legal name is  as set forth in the first paragraph of this Agreement.  The chief executive office of each Loan Party  is located in the Chief Executive Office State at the address indicated in Section 10 hereof or such  other location as Borrower has notified Agent of pursuant to Section 7.2.  5.5 Actions, Suits, Litigation, or Proceedings.  Except as set forth in the  Schedule, there are no actions, suits, litigation or proceedings, at law or in equity, pending by or  against any Loan Party or any Subsidiary before any court, administrative agency, or arbitrator in  which an adverse decision could reasonably be expected to have a Material Adverse Effect.  5.6 No Material Adverse Change in Financial Statements.  All consolidated  financial statements related to the Loan Parties that are delivered by Borrower to Agent fairly  present, in all material respects, such Loan Party’s consolidated financial condition as of the date  thereof and such Loan Party’s consolidated results of operations for the period then ended (subject,  in the case of unaudited financial statements, to the absence of footnotes and normal year-end audit  adjustments).  There has not occurred a Material Adverse Effect since December 31, 2021.  5.7 Solvency, Payment of Debts.  The Borrower is and the Loan Parties, taken  as a whole on a consolidated basis, are able to pay its debts (including trade debts) as they mature  in the ordinary course of business; the value of the balance sheet sets of the Borrower’s and the  Loan Parties’, taken as a whole on a consolidated basis (minus disposition costs) exceeds the fair  value of its liabilities; and the Borrower is not and the Loan Parties, taken as a whole on a   16      consolidated basis, are not left with unreasonably small capital after the transactions contemplated  by this Agreement.  5.8 Compliance with Laws and Regulations.  The Loan Parties and each  Subsidiary have met the minimum funding requirements of ERISA with respect to any employee  benefit plans subject to ERISA.  No event has occurred resulting from any Loan Party’s failure to  comply with ERISA that is reasonably likely to result in incurring any liability that could  reasonably be expected to have a Material Adverse Effect.  No Loan Party is an “investment  company” or a company “controlled” by an “investment company” within the meaning of the  Investment Company Act of 1940.  No Loan Party is engaged principally, or as one of the  important activities, in the business of extending credit for the purpose of purchasing or carrying  margin stock (within the meaning of Regulations T and U of the Board of Governors of the Federal  Reserve System).  Each Loan Party has complied in all material respects with all the applicable  provisions of the Federal Fair Labor Standards Act.  Each Loan Party is in compliance with all  applicable Environmental Laws, regulations and ordinances except where the failure to comply  would not reasonably be expected to have a Material Adverse Effect.  No Loan Party has violated  any statutes, laws, ordinances, rules or regulations applicable to it, the violation of which could  reasonably be expected to have a Material Adverse Effect.  Each Loan Party and each Subsidiary  have filed or caused to be filed all tax returns required to be filed by such Loan Party or such  Subsidiary, and have paid, or have made adequate provision for the payment of, all taxes reflected  therein except those being contested in good faith with adequate reserves under GAAP or where  the failure to file such returns or pay such taxes could not reasonably be expected to have a Material  Adverse Effect or result in any Lien which is not a Permitted Lien.  5.9 Subsidiaries.  No Loan Party owns any stock, partnership interest or other  equity securities of any Person, except for Permitted Investments.  5.10 Government Consents.  Each Loan Party and each Subsidiary have obtained  all consents, approvals and authorizations of, made all declarations or filings with, and given all  notices to, all governmental authorities that are necessary for the continued operation of such  Person’s business as currently conducted, except where the failure to do so could not reasonably  be expected to result in a Material Adverse Effect.  5.11 Inbound Licenses.  Except as disclosed on Schedule 5.11, no Loan Party is  a party to, nor is bound by, any inbound license, the failure, breach, or termination of which could  reasonably be expected to cause a Material Adverse Effect, that prohibits such Loan Party from  granting a security interest in such Loan Party’s interest in such license or any other property (other  than commercial off-the-shelf software).  5.12 Full Disclosure.  No representation, warranty or other statement made by  any Loan Party in connection with the Loan Documents or the transactions contemplated thereby  in any certificate or signed written statement furnished to Agent by any Loan Party, taken together  with all such certificates and written statements furnished to Agent by any Loan Party contains  any untrue statement of a material fact or omits to state a material fact necessary in order to make  the statements contained in such certificates or statements not misleading in light of the  circumstances under which they are made (it being recognized by Agent and Lenders that the  projections and forecasts as to future events provided by Borrower in good faith and based upon  

 

 17      reasonable assumptions are not viewed as facts and that actual results during the period or periods  covered by such projections and forecasts as to future events may differ from the projected or  forecasted results).  5.13 Beneficial Ownership Certification. The information included in the  Beneficial Ownership Certification is true and correct in all respects.  5.14 Sanctions.  None of the Loan Parties any of their Subsidiaries, any director  or officer, or any employee, agent, or Affiliate, of the Loan Parties or any of their Subsidiaries is  a Person that is, or is owned or controlled by Persons that are, (i) the subject of any sanctions  administered or enforced by the US Department of the Treasury’s Office of Foreign Assets  Control, the US Department of State, United Nations Security Council, the European Union, Her  Majesty’s Treasury, or the Hong Kong Monetary Authority or other relevant sanctions authority  (collectively, “Sanctions”), or (ii) located, organized or resident in a country or territory that is, or  whose government is, the subject of Sanctions, including, without limitation, currently, Cuba, the  Crimea, Donetsk and Luhansk  regions of the Ukraine, Iran, North Korea, Sudan and Syria.  5.15 Anti-Corruption.  None of the Loan Parties or Subsidiaries of the Loan  Parties nor, to the knowledge of any of the Loan Parties, any director, officer, agent, employee,  Affiliate or other Person acting on behalf of any of the Loan Parties or any Subsidiaries of the  Loan Parties, is aware of or has taken any action, directly or indirectly, that would result in a  violation by such Persons of any applicable anti-bribery law or Anti-Money Laundering Laws,  rules or regulations in any applicable jurisdiction, including but not limited to the U.S. Foreign  Corrupt Practices Act of 1977 (the “FCPA”). Furthermore, the Loan Parties and, to the knowledge  of the Loan Parties, their respective Affiliates have conducted their business in compliance with  the FCPA and similar laws, rules or regulations.  Borrower will maintain in effect policies and  procedures to promote compliance by the Loan Parties, their Subsidiaries, and their respective  directors, officers, employees, and agents with the FCPA, the UK Bribery Act and any other  applicable anti-corruption laws.  6. AFFIRMATIVE COVENANTS.  Each Loan Party covenants that, until payment in full of all outstanding Obligations (other  than inchoate indemnification or reimbursement obligations or other obligations which, by their  terms, survive termination of this Agreement), and for so long as Lenders may have any  commitment to make a Credit Extension hereunder, they shall do all of the following:  6.1 Good Standing and Government Compliance.  Each Loan Party shall  maintain its organizational existence and good standing in its state of incorporation or formation,  and shall cause each of its Subsidiaries to maintain its organizational existence and good standing  in its state of incorporation or formation, as applicable, and each shall maintain qualification and  good standing in each other jurisdiction in which the failure to so qualify could reasonably be  expected to have a Material Adverse Effect, and shall furnish to Agent the organizational  identification number issued to such Loan Party by the authorities of the jurisdiction in which it is  organized, if applicable.  Each Loan Party shall meet, and shall cause each Subsidiary to meet, the  minimum funding requirements of ERISA with respect to any employee benefit plans of such Loan  Party or Subsidiary subject to ERISA.  Each Loan Party shall comply in all material respects with   18      all applicable Environmental Laws, and maintain all material permits, licenses and approvals  required thereunder where the failure to do so could reasonably be expected to have a Material  Adverse Effect.  Each Loan Party shall comply in all material respects, and shall cause each  Subsidiary to comply, with all material statutes, laws, ordinances and government rules and  regulations to which it is subject, and shall maintain, and shall cause each of its Subsidiaries to  maintain, in force all licenses, approvals and agreements, in each case, the loss of which or failure  to comply with which would reasonably be expected to have a Material Adverse Effect.  6.2 Financial Statements, Reports, Certificates.  Borrower shall deliver to  Agent:  (i) (A) at all times prior to a Cash Trigger Event, as soon as available, but in any event  within forty-five (45) days after the end of the first three (3) fiscal quarters of each fiscal year, a  company prepared consolidated balance sheet and income statement covering the Loan Parties’  operations during such period, in a form reasonably acceptable to Agent and certified by a  Responsible Officer, and (B) at all times after a Cash Trigger Event, as soon as available, but in  any event within thirty (30) days after the end of each calendar month, a company prepared  consolidated balance sheet and income statement covering the Loan Parties’ operations during  such period, in a form reasonably acceptable to Agent and certified by a Responsible Officer; (ii)  within five  (5) days after Borrower submits its Form 10-K with the Securities and Exchange  Commission, consolidated financial statements of Borrower and its consolidated Subsidiaries  prepared in accordance with GAAP, consistently applied, and audited by a certified public  accountant; (iii) copies of all statements, reports and notices sent or made available generally by  any Loan Party to its security holders or to any holders of Subordinated Debt and all reports on  Forms 10-K and 10-Q filed by any Loan Party or any Subsidiary with the Securities and Exchange  Commission; (iv) promptly upon receipt of notice thereof by any Loan Party, a report of any legal  actions pending or threatened in writing against any Loan Party or any Subsidiary that could  reasonably be expected to result in damages or costs to any Loan Party or any Subsidiary of Five  Million and 00/100 Dollars ($5,000,000) or more; (v) promptly upon receipt by any Loan Party,  each management letter prepared by such Loan Party’s independent certified public accounting  firm regarding such Loan Party’s management control systems; (vi) as soon as available, but in  any event within ninety (90) days after the end of Borrower’s fiscal year, Borrower’s financial and  business projections and budget for the upcoming year, with evidence of approval thereof by  Borrower’s board of directors; and (vii) such budgets, sales projections, operating plans or other  financial information generally prepared by Borrower in the ordinary course of business as Agent  may reasonably request from time to time.  (a) Not later than at all times prior to a Cash Trigger Event, as soon as  available, but in any event within forty-five (45) days after the end of each fiscal quarter,  and at all time after a Cash Trigger Event, as soon as available, but in any event within  thirty (30) days after the end of each calendar month, the Borrower shall deliver to Agent,  in a form reasonably acceptable to Agent,  (i) reconciliations of all of the Loan Parties’  Accounts as shown on the report for the immediately preceding month to Loan Parties’  accounts receivable agings, to Loan Parties’ general ledger and to Loan Parties’ most recent  financial statements, (ii) a detailed aged trial balance of all Accounts as of the end of the  preceding fiscal quarter or calendar month, as applicable, specifying each Account’s debtor  name and address, amount, invoice date and due date, showing any discount, allowance,  credit, authorized return or dispute, and upon the request of Agent, including such proof of  delivery, copies of invoices above $10,000 and invoice registers, copies of related   19      documents, repayment histories, status reports and other information as Agent may  reasonably request, (iii) accounts payable agings, and (iv) accounts receivable agings.  (b) Within thirty (30) days after the end of each month, Borrower shall  deliver to Agent a Compliance Certificate certified as of the last day of the applicable  month and signed by a Responsible Officer in substantially the form of Exhibit D hereto.   (c) Promptly upon, but in any event within three (3) Business Days of  any Responsible Officer of Borrower becoming aware of the occurrence or existence of an  Event of Default hereunder, Borrower shall deliver to Agent a written statement of a  Responsible Officer setting forth details of the Event of Default, and the action which the  Loan Parties have taken or proposes to take with respect thereto.  Borrower may deliver to Agent on an electronic basis any certificates, reports or  information required pursuant to this Section 6.2, and Agent shall be entitled to rely on the  information contained in the electronic files, provided that Agent in good faith believes that the  files were delivered by a Responsible Officer.  If Borrower delivers this information electronically,  it shall also, upon the request of Agent, deliver to Agent by U.S. Mail, reputable overnight courier  service or hand delivery, within five (5) Business Days of submission of the unsigned electronic  copy, each submission bearing the physical signature of the Responsible Officer.  6.3 Taxes.  Each Loan Party shall make, and cause each Subsidiary to make,  due and timely payment or deposit of all material federal, state, and local Taxes, assessments, or  contributions required of it by law, including, but not limited to, those laws concerning income  taxes, F.I.C.A., F.U.T.A. and state disability, and will execute and deliver to Agent, on demand,  proof reasonably satisfactory to Agent indicating that Borrower or a Subsidiary has made such  payments or deposits and any appropriate certificates attesting to the payment or deposit thereof;  provided that Borrower or a Subsidiary need not make any payment if the amount or validity of  such payment is contested in good faith by appropriate proceedings and is reserved against (to the  extent required by GAAP) by Borrower and such non-payment does not result in a Lien which is  not a Permitted Lien.  6.4 Insurance.  (a) The Loan Parties, at their expense, shall keep the Collateral insured  against such hazards and risks, and in such amounts, as customarily insured against by  other owners in similar businesses conducted in the locations where each Loan Party’s  business is conducted on the date hereof.  The Loan Parties shall also maintain liability and  other insurance in amounts and of a type that are customary to businesses similar to the  Loan Parties’ business.  (b) All such policies of insurance shall be in such form, with such  companies, and in such amounts as reasonably satisfactory to Agent.  All policies of  property insurance shall contain a lender’s loss payable endorsement, in a form reasonably  satisfactory to Agent, showing Agent as lender’s loss payee, and all liability insurance  policies shall show Agent as an additional insured and all such policies shall specify that  the insurer must give at least thirty (30) days’ notice to Agent before canceling its policy   20      for any reason (or ten (10) days’ notice in the event of cancellation for nonpayment).  All  policies of insurance shall be addressed to Agent as follows:  East West Bank as Agent for  the Lenders, its Successors and / or Assigns, P.O. Box 60021, City of Industry, CA 91716,  Attention: Cue Health Inc. Account Manager.  Upon Agent’s reasonable request, Borrower  shall deliver to Agent certified copies of the policies of insurance and evidence of all  premium payments.  All proceeds payable under any such policy shall, unless Agent  otherwise consents, be payable to Agent to be applied on account of the Obligations.   Notwithstanding the foregoing sentence, if no Event of Default has occurred and is  continuing, proceeds payable under any insurance policy will, at Borrower’s option, be  payable to Borrower to repair or replace the property subject to the claim, provided that  any such replacement property shall be deemed Collateral in which Agent has been granted  a first priority security interest (subject to Permitted Liens); provided further, however, that  the aggregate amount of all such proceeds paid directly to Borrower pursuant to this  Section shall not exceed Five Million and 00/100 Dollars ($5,000,000) per fiscal year.  6.5 Accounts.  Each Loan Party shall maintain all of its primary depository and  operating accounts with Agent and, except as may be required for Borrower to comply with its  investment policy, its primary investment accounts with Lender or Lenders’ Affiliates (covered by  reasonably satisfactory control agreements) and, except as may be required for Borrower to  comply with its investment policy, shall make best efforts to maintain all other accounts with  Agent. All deposit accounts of any Loan Party, other than Excluded Accounts, shall be subject to  control agreements in form and content reasonably acceptable to Agent.  6.6 Reserved.    6.7 Financial Covenants.    (a) Asset Coverage Ratio. At all times, Borrower shall have a minimum  asset coverage ratio of not less than 1.20 to 1.00 measured as (i) (a) the sum of unrestricted  cash and Cash Equivalents maintained in deposit accounts or investment accounts with  Agent not subject to any Lien other than the Liens in favor Agent plus the sum of  unrestricted cash and Cash Equivalents maintained in deposit accounts or investment  accounts subject to an account control agreement in favor of the Agent plus eighty percent  (80%) of Eligible Accounts as Required Lenders determine are eligible, less (b) the amount  of any sales tax liability of the Borrower outstanding at the time of measurement of Eligible  Accounts, to (ii) the principal amount of all Obligations outstanding hereunder.  (b) Minimum Remaining Months Liquidity. As measured on the last  day of each calendar month at all times after a Cash Trigger Event or each fiscal quarter at  all times before a Cash Trigger Event, Borrower shall maintain a minimum of six (6)  months remaining liquidity measured as (i) the sum of unrestricted cash and Cash  Equivalents maintained in deposit accounts or investment accounts with Agent not subject  to any Lien other than the Liens in favor Agent plus the sum of unrestricted cash and Cash  Equivalents maintained in deposit accounts or investment accounts subject to an account  control agreement in favor of the Agent, plus the Revolving Loan availability divided by  (ii) the monthly average of, for the trailing three months, net income (inclusive of grants  received but not yet recognized per GAAP, if applicable and approved by Required  

 

 21      Lenders, to be subtracted once recognized as income per GAAP), plus, to the extent  deducted in determining net income, depreciation expense, amortization expense, stock- based compensation and less unfunded capital expenditures, all for the Borrower and all as  determined in accordance with GAAP.  (c) Current Ratio.  Maintain a Current Ratio (defined as ((i) total current  assets) divided by (ii) total current liabilities minus deferred revenue to the extent such  deferred revenue is reflected on Borrower’s balance sheet as of June 30, 2022 and for so  long as it continues to be reflected on Borrower's balance sheet thereafter, such calculation  as per GAAP) of not less than 1.20 to 1.00, each as measured on the last day of each  calendar quarter.  6.8 Registration of Intellectual Property Rights.  (a) Borrower shall register or cause to be registered (to the extent not  already registered) with the United States Patent and Trademark Office or the United States  Copyright Office, as the case may be, those registrable intellectual property rights now  owned or hereafter developed or acquired by Borrower, to the extent that Borrower, in its  reasonable business judgment, deems it appropriate to so protect such intellectual property  rights.  (b) Borrower shall promptly, but in any event at the time of delivery of  each Compliance Certificate, give Agent written notice of any applications or registrations  of intellectual property rights filed with the United States Patent and Trademark Office and  not previously reporting to Agent, including the date of such filing and the registration or  application numbers, if any.  (c) Borrower shall (i) promptly, but in any event at the time of delivery  of each Compliance Certificate, give Agent written notice of the filing of any applications  or registrations with the United States Copyright Office, including the title of such  intellectual property rights to be registered, as such title will appear on such applications  or registrations, and the date such applications or registrations will be filed; (ii) promptly,  but in any event within thirty (30) days after filing of any applications or registrations with  the United States Copyright Office, execute such documents as Agent may reasonably  request for Agent to maintain its perfection in such intellectual property rights to be  registered by Borrower; (iii) upon the request of Agent, either deliver to Agent or file such  documents promptly, but in any event within thirty (30) days after filing any such  applications or registrations with the United States Copyright Office; (iv) promptly, but in  any event within thirty (30) days after filing, provide Agent with a copy of such  applications or registrations together with any exhibits, evidence of the filing of any  documents requested by Agent to be filed for Agent to maintain the perfection and priority  of its security interest in such intellectual property rights, and the date of such filing.  (d) Borrower shall execute and deliver such additional instruments and  documents from time to time as Agent shall reasonably request to perfect and maintain the  perfection and priority of Agent’s security interest in the Intellectual Property Collateral.   22      (e) Borrower shall use commercially reasonably efforts to (i) protect,  defend and maintain the validity and enforceability of Borrower’s material trademarks,  patents, copyrights, and trade secrets, (ii) detect infringements of the copyrights,  trademarks and patents and promptly advise Agent in writing of material infringements  detected and (iii) not allow any material copyrights, trademarks and patents to be  abandoned, forfeited or dedicated to the public without the written consent of Agent, which  shall not be unreasonably withheld.  (f) Agent may audit Borrower’s Intellectual Property Collateral to  confirm compliance with this Section 6.8. Notwithstanding the foregoing, unless an Event  of Default has occurred and is continuing, the Loan Parties’ shall only be obligated to  reimburse Agent for one (1) such Intellectual Property Collateral audit in each calendar  year. Agent shall have the right, but not the obligation, to take, at Borrower’s sole expense,  any actions that Borrower is required under this Section 6.8 to take but which Borrower  fails to take, after fifteen (15) days’ notice to Borrower. Borrower shall reimburse and  indemnify Agent for all reasonable costs and reasonable expenses incurred in the  reasonable exercise of its rights under this Section 6.8.  6.9 Consent of Inbound Licensors. Prior to entering into or becoming bound by  any inbound license or agreement (other than over-the-counter or other software that is  commercially available to the public), the failure, breach, or termination of which could reasonably  be expected to cause a Material Adverse Effect, Borrower shall: (a) provide written notice to Agent  of the material terms of such license or agreement with a description of its likely impact on  Borrower’s business or financial condition; and (b) in good faith take such actions as Agent may  reasonably request to obtain the consent of, or waiver by, any person whose consent or waiver is  necessary for (i) Borrower’s interest in such licenses or contract rights to be deemed Collateral and  for Agent (on behalf of the Lenders) to have a security interest in it that might otherwise be  restricted by the terms of the applicable license or agreement, whether now existing or entered into  in the future, and (ii) Agent to have the ability in the event of a liquidation of any Collateral to  dispose of such Collateral in accordance with Agent’s and Lenders’ rights and remedies under this  Agreement and the other Loan Documents.  6.10 Creation/Acquisition of Subsidiaries and Other Equity Interests.  With  respect to each Formed Subsidiary or Acquired Subsidiary, such Loan Party and such Subsidiary,  as applicable, shall promptly notify Agent of the creation or acquisition of such new Subsidiary or  the acquisition of  other equity interests of another Person and take all such action as may be  reasonably required by Agent to cause each such domestic Subsidiary to guarantee the Obligations  of Borrower under the Loan Documents and grant a continuing pledge and security interest in and  to the collateral of such Subsidiary (substantially as described on Exhibit B hereto), and such Loan  Party shall grant and pledge to Agent a perfected security interest in the stock, units or other  evidence of ownership of each Subsidiary or other equity interest acquired (whether foreign or  domestic, but subject to the limitations in the definition of Collateral), deliver any and all  certificates or other evidence of ownership of such Subsidiary or other equity interest acquired,  together with stock or unit powers executed in blank, and take any other action in furtherance of  the foregoing reasonably requested by Agent.   23      6.11 Use of Proceeds.  The proceeds of the Advances under the Revolving Line  shall, unless otherwise consented to in writing by Agent, be used solely for (A) payment of interest,  legal fees and Lender fees, (B) working capital needs and general corporate purposes of the  Borrower, (C) issuing Letters of Credit and (D) paying the purchase price, costs, expenses and fees  incurred in connection with Permitted Acquisitions not to exceed Forty Million and 00/100 Dollars  ($40,000,000) in the aggregate from and after the Closing Date, provided, however, that the  aggregate amount of Revolving Loans used in connection with Permitted Acquisitions may exceed  Forty Million and 00/100 Dollars ($40,000,000) in the aggregate from and after the Closing Date  if consented to in writing by Required Lenders, which consent may be withheld in Required  Lenders' sole discretion.  6.12 Fees.  (a) Borrower shall pay to Agent for the ratable benefit of each Lender  having a commitment hereunder an unused availability fee equal to one-quarter of one  percent (0.25%) per annum of the daily unused portion of the Revolving Line which shall  be calculated by subtracting the amount outstanding hereunder from the Revolving Line,  which fee shall be payable quarterly in arrears on the last day of each calendar quarter,  commencing with the quarter ending June 30, 2022.  (b) The Borrower shall pay (i) to Agent for distribution to the Lenders  in accordance with their Revolving Loan Commitment Percentages, a non-refundable fee  equal to two percentage points (2.00%) per annum of the outstanding undrawn amount of  each standby Letter of Credit (including, for the avoidance of doubt, the Existing Letters  of Credit), payable annually in advance, calculated on the basis of the face amount  outstanding on the day the fee is calculated, and (ii) to Agent, for distribution to the L/C  Issuer of the applicable Letter of Credit, such L/C Issuer’s standard fees in connection with  each commercial Letter of Credit, which fees shall be non-refundable under all  circumstances.  (c) If Borrower terminates or permanently reduces the Revolving Loan  Commitments, in whole or in part at any time before the Revolving Maturity Date,  Borrower shall pay to Agent for the ratable benefit of each Lender having a commitment  hereunder a prepayment fee equal to the amount by which the commitment is permanently  reduced, or the outstanding commitment if terminated in full, times one percent (1.00%).  The prepayment fee described in this Section is deemed fully earned and non-refundable  as of the Closing Date and due and payable on the date of such termination or permanent  reduction.  6.13 Further Assurances.  At any time, and from time to time, the Loan Parties  shall execute and deliver such further instruments and take such further action as may reasonably  be requested by Agent and Lenders to effect the purposes of this Agreement.  6.14 Post-Closing Obligations.  The Loan Parties shall complete each of the post- closing obligations and/or deliver to Agent each of the documents, instruments, agreements and  information listed on the Post-Closing Obligations Schedule attached hereto as Exhibit F, on or  before the date set forth for each such item thereon (as may be extended by the Agent in writing   24      in its sole discretion), each of which shall be completed or provided in form and substance  reasonably satisfactory to Agent and Lenders.  6.15 Field Exam. The Loan Parties shall permit Agent, or its designees or  representative, from time to time to conduct Field Exams and to examine its corporate, financial  and operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs,  finances and accounts with its directors, officers and auditors.  The Agent shall not have any duty  to any Loan Party to share any results of any Field Exam with any Loan Party. The Loan Parties  acknowledge that all Field Exams and reports are prepared by or for the Agent and Lenders for  their purposes, and Loan Parties shall not be entitled to rely upon them. The Loan Parties shall  reimburse the Agent for all reasonable and documented out-of-pocket charges, costs and expenses  of the Agent in connection all Field Exams and Agent may conduct at least one Field Exam during  any twelve (12) month period. The first Field Exam shall be completed within thirty (30) days of  the Closing Date.  6.16 Beneficial Ownership Certification. Promptly following any request  therefor, Borrower shall provide information and documentation reasonably requested by the  Agent or any Lender for purposes of compliance with applicable “know your customer”  requirements under the PATRIOT Act, the Beneficial Ownership Regulation or other applicable  anti-money laundering laws, including but not limited to a Beneficial Ownership Certification  form acceptable to Agent or Lender.  6.17 Compliance with Laws.  Each Loan Party shall, and shall cause each  Subsidiary thereof to, comply with applicable laws (including Environmental Laws, Sanctions and  Anti-Money Laundering Laws), except, other than as to Sanctions and Anti-Money Laundering  Laws, where the failure to so comply would not reasonably be expected to have a Material Adverse  Effect.  7. NEGATIVE COVENANTS.  Each Loan Party covenants and agrees that, so long as any credit hereunder shall be  available and until the outstanding Obligations (other than inchoate indemnification or  reimbursement obligations or other obligations which, by their terms, survive termination of this  Agreement) are paid in full or for so long as any Lender may have any commitment to make any  Credit Extensions, each Loan Party will not do any of the following without Required Lenders’  prior written consent:  7.1 Dispositions.  Convey, sell, lease, license, transfer or otherwise dispose of  (collectively, to “Transfer”), or permit any of its Subsidiaries to Transfer, all or any part of its  business or property, or subject to Section 6.5 of the Agreement, move cash balances on deposit  with Agent to accounts opened at another financial institution, other than Permitted Transfers.  7.2 Change in Name, Location, Executive Office, or Executive Management;  Change in Business; Change in Fiscal Year; Change in Control.  Change its name or the Borrower  State or relocate its chief executive office without ten (10) days prior written notification to Agent;  replace its chief executive officer or chief financial officer without providing written notification  to Agent as soon as possible and in any event within ten (10) Business Days after the occurrence  

 

 25      thereof; engage in any business, or permit any of its Subsidiaries to engage in any business, other  than reasonably related, ancillary, complementary or incidental businesses to the businesses  currently engaged in by Borrower or a natural extension thereof; change its fiscal year end; have  a Change in Control.  7.3 Mergers or Acquisitions.    (a) Merge or consolidate, or permit any of its Subsidiaries to merge or  consolidate, with or into any other business organization (other than mergers or  consolidations of a Subsidiary into Borrower, or a Subsidiary into another Subsidiary), or  acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital  stock or property of another Person, except (i) where such transactions constitute a  Permitted Investment, (ii) no Event of Default has occurred, is continuing or would  immediately exist after giving effect to such transactions, (iii) such transactions do not  result in a Change in Control, and (iv) in any transaction involving Borrower, Borrower is  the surviving entity.  (b) Divisions. For all purposes under the Loan Documents, in  connection with any division or plan of division under Delaware law (or any comparable  event under a different jurisdiction’s laws): (a) if any asset, right, obligation or liability of  any Person becomes the asset, right, obligation or liability of a different Person, then it  shall be deemed to have been transferred from the original Person to the subsequent Person,  and (b) if any new Person comes into existence, such new Person shall be deemed to have  been organized on the first date of its existence by the holders of its capital stock at such  time.  7.4 Indebtedness.  Create, incur, assume, guarantee or be or remain liable with  respect to any Indebtedness, or permit any Subsidiary to do so, other than Permitted Indebtedness,  or prepay any Indebtedness or take any actions which imposes on a Loan Party an obligation to  prepay any Indebtedness, except Indebtedness to Lenders or intercompany Indebtedness to the  extent both are not prohibited or restricted (unless in compliance with such restriction) under this  Agreement.  7.5 Encumbrances.  (a) Create, incur, assume or allow any Lien with respect to  any of its property (including any equity interests owned by it), or assign or otherwise convey any  right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries so to  do, in each case, except for Permitted Liens and Permitted Transfers, or (b) covenant to any other  Person that in the future it will refrain from creating, incurring, assuming or allowing any Lien  with respect to any property, except (i) restrictions existing under the Loan Documents, (ii) as is  expressly permitted in this Section 7.5 (to the extent constituting Liens) and the definition of  “Permitted Liens” herein, (iii) covenants with such restrictions in merger or acquisition agreements  all of which are not prohibited or restricted (unless in compliance with such restriction) under this  Agreement, provided that such covenants do not prohibit Borrower from granting a security  interest in Borrower’s property in favor of Agent and Lenders and provided further that the  counterparties to such covenants are not permitted to receive a security interest in Borrower’s  property, (iv) any such prohibitions imposed in respect of property that is subject to a Permitted  Lien of the type described in clause (n) of the definition thereof, (v) customary provisions in leases,   26      subleases, licenses, sublicenses and other contracts restricting the assignment, subletting, or  encumbrance thereof, customary net worth provisions or similar financial maintenance provisions  contained therein, and other customary provisions contained in leases, subleases, licenses or  sublicenses not restricted hereunder and entered into in the ordinary course of business provided  that none of the foregoing impose restrictions on the entering into or performance of obligations  under the Loan Documents, and (vi) prohibitions, restrictions and conditions imposed by  applicable law which do not either result in an Event of Default hereunder and could not reasonably  be expected to cause a Material Adverse Effect.  7.6 Distributions.  Pay any dividends or make any other distribution or payment  on account of or in redemption, retirement or purchase of any capital stock, except that Borrower  or any Subsidiary may (i) repurchase the stock of existing or former employees, officers and  directors (their spouses, trusts, heirs and estates) pursuant to stock repurchase agreements (A) in  an amount not to exceed One Million and 00/100 Dollars ($1,000,000) in the aggregate per fiscal  year and (B) in any amount where the consideration for the repurchase is the cancellation of  indebtedness owed by such existing former employees, officers or directors to Borrower as long  as an Event of Default does not exist prior to such repurchase or would not immediately exist after  giving effect to such repurchase, (ii) declare and make dividend payments or other distributions  payable in stock or other equity interests, (iii) pay dividends or distributions in an aggregate  amount equal to 50% of the net cash proceeds of any sale of new common equity by the Borrower;  (iv) pay other dividends, distributions or payments in an aggregate amount not to exceed $500,000  per calendar year, provided that (A) no Event of Default shall exist before or after giving effect  thereto, and (B) Borrower shall be in pro forma compliance with the financial covenants set forth  in Section 6.7 hereof prior to and after giving effect to such dividends or distributions; (v) make  dividends or other distributions payable to Borrower or any other Subsidiary; (vi) Borrower may  distribute rights pursuant to a stockholder rights plan or redeem such rights, provided that such  redemption is in accordance with the terms of such stockholder rights plan and both the stockholder  rights plan and such redemption are not prohibited or restricted (unless in compliance with such  restriction) by another provision of this Agreement, (vii) Borrower may make payments in  connection with the retention of equity interests in payment of withholding taxes in connection  with equity-based compensation plans provided that both the equity-based compensation plans and  such equity interests in payment of withholding taxes are not prohibited or restricted (unless in  compliance with such restriction) by another provision of this Agreement, (viii) Borrower or any  Subsidiary may receive or accept the return to Borrower or any Subsidiary of equity interests of  Borrower or any Subsidiary constituting a portion of the purchase price consideration in settlement  of indemnification claims or as a result of purchase price adjustments (including earn-outs and  similar obligations) where such settlement of indemnification claims or purchase price adjustments  are otherwise not prohibited or restricted (unless in compliance with such restriction) by another  provision of this Agreement, and (ix) pay cash in lieu of fractional shares. For the avoidance of  doubt, the term "capital stock" shall not include any convertible debt security.  7.7 Investments.  Directly or indirectly acquire or own, or make any Investment  in or to any Person, or permit any of its Subsidiaries to do so, other than Permitted Investments  and then so long as the Borrower is in compliance with Section 6.5 and 6.7 hereof, as applicable,  or suffer or permit any Subsidiary to be a party to, or be bound by, an agreement that restricts such  Subsidiary from paying dividends or otherwise distributing property to a Loan Party (other than  restrictions existing under the Loan Documents).  Further, Borrower shall not enter into any license   27      or agreement with any Prohibited Territory or with any Person organized under or doing business  in a Prohibited Territory.  7.8 Transactions with Affiliates.  Other than as specifically permitted  hereunder, directly or indirectly enter into or permit to exist any transaction with any Affiliate  except for transactions that are in the ordinary course of business, upon fair and reasonable terms  that are no less favorable to such Loan Party than would be obtained in an arm’s length transaction  with a non-affiliated Person.  7.9 Subordinated Debt.  Make any payment in respect of any Subordinated  Debt, or permit any of its Subsidiaries to make any such payment, except in compliance with the  terms of such Subordinated Debt and the terms of the subordination agreement relating to such  Subordinated Debt, or amend, terminate or release any provision of any document evidencing such  Subordinated Debt, except with Required Lenders’ prior written consent and except in compliance  with the terms of the subordination agreement relating to such Subordinated Debt, or amend any  provision affecting Agent and Lenders’ rights contained in any documentation, or in any way that  is more restrictive on any Loan Party, relating to the Subordinated Debt, and each of the foregoing,  except as noted above, without Agent’s prior written consent.  7.10 No Investment Company; Margin Regulation.  Become or be controlled by  an “investment company,” within the meaning of the Investment Company Act of 1940, or become  principally engaged in, or undertake as one of its important activities, the business of extending  credit for the purpose of purchasing or carrying margin stock, or use the proceeds of any Credit  Extension for such purpose.  7.11 Sanctions; Anti-Corruption. The Loan Parties will not, directly or indirectly,  use the proceeds of the Loans or any Letter of Credit, or lend, contribute or otherwise make  available such proceeds to any Loan Party or any Subsidiary of a Loan Party, joint venture partner  or other Person, (i) to fund any activities or business of or with any Person, or in any country or  territory, that, at the time of such funding, is the target of Sanctions, or (ii) in any other manner  that would result in a violation of Sanctions by any Person (including any Person participating in  the Loans or Letters of Credit, whether as Agent, Arranger, L/C Issuer, Lender, underwriter,  advisor, investor or otherwise). No part of the proceeds of the Loans or any Letter of Credit will  be used, directly or indirectly, for any payments that could constitute a violation of any applicable  anti-bribery law.  8. EVENTS OF DEFAULT.  Any one or more of the following events shall constitute an Event of Default by Borrower  under this Agreement:  8.1 Payment Default.  If Borrower fails to pay any of the Obligations when due.  8.2 Covenant Default.  (a) If any Loan Party fails or neglects to perform any obligation under  Sections 6.3, 6.4, or 6.5, violates any of the covenants contained in Article 7 of this   28      Agreement; or if any Loan Party fails to perform any obligation under Section 6.2 within  three (3) days of when due.  (b) If any Loan Party fails or neglects to perform or observe any  obligation under Section 6.7, and any such covenant default can be cured, has failed to cure  such default within ten (10) days after the earlier of the date Borrower receives notice  thereof or any officer of any Loan Party becomes aware thereof; provided, however, such  ten (10) day cure right may only be exercised one time during the term of this Agreement.  (c) If any Loan Party fails or neglects to perform or observe any other  term, provision, condition, covenant contained in this Agreement or in any of the Loan  Documents, and as to any default under such other term, provision, condition or covenant  that can be cured, has failed to cure such default within ten (10) days after the earlier of the  date Borrower receives notice thereof or any officer of any Loan Party becomes aware  thereof; provided, however, that if the default cannot by its nature be cured within the ten  (10) day period or cannot after diligent attempts by Borrower or such Loan Party be cured  within such ten (10) day period, and such default is likely to be cured within a reasonable  time, then Borrower or such Loan Party shall have an additional reasonable period (which  shall not in any case exceed thirty (30) days) to attempt to cure such default, so long as  Borrower or such Loan Party continues to diligently attempt to cure such default, and  within such reasonable time period the failure to have cured such default shall not be  deemed an Event of Default but the Lenders shall not be required to make any Credit  Extensions (and shall be permitted in their sole discretion to decline to make any Credit  Extension) unless and until such default is cured.  8.3 Material Adverse Change.  If there occurs any circumstance or  circumstances that results in a Material Adverse Effect as determined by Agent or Required  Lenders  in their reasonable credit judgment.  8.4 Defective Perfection.  If Agent shall receive at any time following the  Closing Date an SOS Report indicating that Agent’s security interest in the Collateral is not prior  to all other security interests or Liens of record reflected in the report other than as a result of  Agent’s failure to file or maintain its Lien or Permitted Liens securing Permitted Indebtedness or  other obligations that is permitted hereunder to be prior to Agent’s security interest pursuant to  Section 4.1.  8.5 Attachment.  If any material portion of any Loan Party’s assets is attached,  seized, subjected to a writ or distress warrant, or is levied upon, or comes into the possession of  any trustee, receiver or person acting in a similar capacity and such attachment, seizure, writ or  distress warrant or levy has not been removed, discharged or rescinded within thirty (30) days, or  if any Loan Party is enjoined, restrained, or in any way prevented by court order from continuing  to conduct all or any material part of its business affairs, or if a judgment or other claim becomes  a lien or encumbrance upon any material portion of any Loan Party’s assets, or if a notice of lien,  levy, or assessment is filed of record with respect to any of any Loan Party’s assets by the United  States Government, or any department, agency, or instrumentality thereof, or by any state, county,  municipal, or governmental agency, and the same is not paid within thirty (30) days after such  Loan Party receives notice thereof, provided that none of the foregoing shall constitute an Event  

 

 29      of Default where such action or event is stayed or an adequate bond has been posted pending a  good faith contest by such Loan Party (provided that no Credit Extensions will be made during  such cure period).  8.6 Insolvency.  If the Loan Parties, taken as a whole on a consolidated basis,  become insolvent, or if an Insolvency Proceeding is commenced by any Loan Party, or if an  Insolvency Proceeding is commenced against any Loan Party and is not dismissed or stayed within  forty-five (45) days (provided that no Credit Extensions will be made prior to the dismissal of such  Insolvency Proceeding).  8.7 Other Agreements.  (a) If there is a payment or bankruptcy default by any  Loan Party in any agreement to which any Loan Party, as applicable, is a party with a third party  or parties which is related to Indebtedness in an amount in excess of Five Million and 00/100  Dollars ($5,000,000), or (b) there exists a right by a third party or parties, whether or not exercised,  to accelerate the maturity of any Indebtedness of a Loan Party in an amount in excess of Five  Million and 00/100 Dollars ($5,000,000).  8.8 Subordinated Debt.  If any Loan Party makes any payment on account of  Subordinated Debt, except to the extent the payment is allowed under any subordination agreement  entered into with Agent or otherwise permitted by this Agreement.  8.9 Judgments.  If one or more final judgments, orders, or decrees for the  payment of money in an amount, individually or in the aggregate, of at least Five Million and  00/100 Dollars ($5,000,000) (not covered by independent third-party insurance as to which  liability has been accepted in writing by such insurance carrier) shall be rendered against any Loan  Party or any Subsidiary and the same are not, within thirty (30) days after the entry thereof,  discharged or the execution thereof stayed or bonded pending appeal, or such judgments are not  discharged prior to the expiration of any such stay (provided that the Lenders shall not be required  to make any Credit Extensions (and shall be permitted in their sole discretion to decline to make  any Credit Extension) prior to the discharge, stay, or bonding of such judgment, order, or decree).  8.10 Misrepresentations.  If any material misrepresentation or material  misstatement when made or deemed made exists now or hereafter in any warranty or representation  set forth herein or in any certificate delivered to Agent by any Responsible Officer pursuant to this  Agreement or to induce Lenders to enter into this Agreement or any other Loan Document.  8.11 Guaranty.  If any guaranty of all or a portion of the Obligations including,  without limitation, the guaranty provided in Section 4.5 hereof (each, a “Guaranty”) ceases for  any reason to be in full force and effect (other than in accordance with its terms), or any guarantor  fails to perform any obligation under any Guaranty or a security agreement securing any Guaranty  (collectively, the “Guaranty Documents”) and as to any default under such other term, provision,  condition or covenant that can be cured, has failed to cure such default within any applicable cure  periods, or any event of default occurs under any Guaranty Document or any guarantor revokes or  purports to revoke a Guaranty, or any material misrepresentation or material misstatement when  made or deemed made exists now or hereafter in any warranty or representation set forth in any  Guaranty Document or in any certificate delivered to Agent in connection with any Guaranty   30      Document, or if any of the circumstances described in Sections 8.3 through 8.9 occur with respect  to any guarantor.  8.12 Invalidity of Loan Documents. If any Loan Document, including for the  avoidance of doubt, any subordination agreement with respect to any Subordinated Debt, ceases  for any reason to be in full force and effect (other than in accordance with its terms), or any party  thereto contests in any manner the validity or enforceability of any Loan Document or any Lien  granted pursuant thereto, denies that it has any or further liability or obligation thereunder, or  purports to revoke, terminate or rescind any Loan Document (other than in accordance with its  terms).  8.13 Emergency Use Authorization. Borrower shall fail to have in place either  (a) its emergency use authorization from the U.S. Food & Drug Administration as in effect on the  Closing Date or (b) a full medical device clearance from the U.S. Food & Drug Administration for  its COVID-19 test kit (which shall be no less restrictive than the authorization described in clause  (a)).    8.14 Change in Control. A Change in Control shall occur.  9. LENDERS’ RIGHTS AND REMEDIES.  9.1 Rights and Remedies.  Upon the occurrence and during the continuance of  an Event of Default, the Agent may, and at the direction Required Lenders, shall, at their election,  without notice of their election and without demand, do any one or more of the following, all of  which are authorized by the Loan Parties:  (a) Declare all Obligations, whether evidenced by this Agreement, by  any of the other Loan Documents, or otherwise, immediately due and payable (provided  that upon the occurrence of an Event of Default described in Section 8.6 (Insolvency), all  Obligations shall become immediately due and payable without any action by Agent or  Lenders);  (b) Cease advancing money or extending credit to or for the benefit of  Borrower under this Agreement or under any other agreement between Borrower and  Lenders;  (c) Settle or adjust disputes and claims directly with account debtors for  amounts, upon terms and in whatever order that Agent reasonably considers advisable;  (d) Make such payments and do such acts as Agent or Required Lenders  consider necessary or reasonable to protect the Agent’s security interest (for the benefit of  the Lenders) in the Collateral.  The Loan Parties agree to assemble the Collateral if Agent  so requires, and to make the Collateral available to Agent as Agent may designate in a  location reasonably convenient to Agent.  The Loan Parties authorize Agent to peaceably  enter the premises where the Collateral is located, to take and maintain possession of the  Collateral, or any part of it, and to pay, purchase, contest, or compromise any encumbrance,  charge, or lien which in Agent’s determination appears to be prior or superior to its security  interest and to pay all expenses incurred in connection therewith.  With respect to any of   31      the Loan Parties’ owned premises, such Loan Party hereby grants Agent a license to enter  into possession of such premises and to occupy the same, without charge, in order to  exercise any of Agent’s rights or remedies provided herein, at law, in equity, or otherwise;  (e) Set-off and apply to the Obligations any and all (i) balances and  deposits of any Loan Party held by Agent or any Lender, and (ii) Indebtedness at any time  owing to or for the credit or the account of any Loan Party held by Agent or any Lender;  (f) Ship, reclaim, recover, store, finish, maintain, repair, prepare for  sale, advertise for sale, and sell (in the manner provided for herein) the Collateral.  Agent,  on behalf of Lenders, is hereby granted a license or other right, solely pursuant to the  provisions of this Section 9.1, to use solely following the occurrence and during the  continuance of an Event of Default, without charge, any Loan Party’s labels, patents,  copyrights, rights of use of any name, trade secrets, trade names, trademarks, service  marks, and advertising matter, or any property of a similar nature, as it pertains to the  Collateral, in completing production of, advertising for sale, and selling any Collateral and,  in connection with Agent’s exercise of its rights under this Section 9.1, any Loan Party’s  rights under all licenses and all franchise agreements shall inure to Agent’s benefit;  (g) Except as otherwise provided in the Code, upon at least ten (10) days  prior written notice, sell the Collateral at either a public or private sale, or both, by way of  one or more contracts or transactions, for cash or on terms, in such manner and at such  places (including any Loan Party’s premises) as are commercially reasonable, and apply  any proceeds to the Obligations in whatever manner or order Agent deems appropriate.   Agent may sell the Collateral without giving any warranties as to the Collateral.  Agent  may specifically disclaim any warranties of title or the like.  This procedure will not be  considered adversely to affect the commercial reasonableness of any sale of the Collateral.   If Agent sells any of the Collateral upon credit, Borrower will be credited only with  payments actually made by the purchaser, received by Agent, and applied to the  indebtedness of the purchaser.  If the purchaser fails to pay for the Collateral, Agent may  resell the Collateral and Borrower shall be credited with the proceeds of such sale;  (h) Agent and/or any Lender may credit bid and purchase at any public  sale;  (i) Apply for the appointment of a receiver, trustee, liquidator or  conservator of the Collateral, without notice and without regard to the adequacy of the  security for the Obligations and without regard to the solvency of any Loan Party or any  other Person liable for any of the Obligations; and  (j) Any deficiency that exists after disposition of the Collateral as  provided above will be paid immediately by Borrower.  Agent and Lenders may comply with any applicable state or federal law requirements in  connection with a disposition of the Collateral and compliance will not be considered adversely to  affect the commercial reasonableness of any sale of the Collateral.   32      9.2 Power of Attorney.  Each Loan Party hereby irrevocably appoints Agent  (and any of Agent’s designated officers, or employees) as its true and lawful attorney to:  (a) in  consultation with Borrower, send requests for verification of Accounts or notify account debtors  of Agent’s security interest in the Accounts; (b) endorse such Loan Party’s, as applicable, name  on any checks or other forms of payment or security that may come into Agent’s possession;  (c) sign such Loan Party’s name, as applicable, on any invoice or bill of lading relating to any  Account, drafts against account debtors, schedules and assignments of Accounts, verifications of  Accounts, and notices to account debtors; (d) dispose of any Collateral; (e) make, settle, and adjust  all claims under and decisions with respect to any Loan Party’s policies of insurance; (f) settle and  adjust disputes and claims respecting the accounts directly with account debtors, for amounts and  upon terms which Agent determines to be reasonable; and (g) file, in its sole discretion, one or  more financing or continuation statements and amendments thereto, relative to any of the  Collateral without the signature of any Loan Party; provided Agent may exercise such power of  attorney to sign the name of any Loan Party, as applicable, on any of the documents described in  clause (g) above, regardless of whether an Event of Default has occurred.  The appointment of  Agent as each Loan Party’s attorney in fact, and each and every one of Agent’s rights and powers,  being coupled with an interest, is irrevocable until all of the Obligations (other than inchoate  indemnification or reimbursement obligations or other obligations which, by their terms, survive  termination of this Agreement) have been fully repaid and performed and Agent’s and each  Lender’s obligation to provide Advances hereunder is terminated.  9.3 Accounts Collection.  In consultation with Borrower, Agent may notify any  Person owing funds to any Loan Party of Agent’s security interest in such funds and verify the  amount of such Account and direct that any payments with respect thereto be deposited directly  into the Collection Account, if and to the extent not already so deposited pursuant to the  instructions provided by the Borrower in accordance with Section 4.4. Borrower shall collect all  amounts owing to Borrower for Agent, receive in trust all payments as Agent’s trustee, and  immediately deliver such payments to Agent in their original form as received from the account  debtor, with proper endorsements for deposit.  9.4 Lender Expenses.  If any Loan Party fails to pay any amounts or furnish any  required proof of payment due to third persons or entities, as required under the terms of this  Agreement, then Agent may do any or all of the following:  (a) make payment of the same or any  part thereof; (b) set up such reserves under the Revolving Line as Agent deems necessary to protect  Lenders from the exposure created by such failure; or (c) obtain and maintain insurance policies  of the type discussed in Section 6.4 of this Agreement, and take any action with respect to such  policies as Agent reasonably deems prudent.  Any amounts so paid or deposited by Agent shall  constitute Lender Expenses, shall be immediately due and payable, and shall bear interest at the  then applicable rate hereinabove provided, and shall be secured by the Collateral.  Any payments  made by Agent shall not constitute an agreement by Agent to make similar payments in the future  or a waiver of any Event of Default under this Agreement.  9.5 Liability for Collateral.  Neither Agent nor any Lender has any obligation  to clean up or otherwise prepare the Collateral for sale.  All risk of loss, damage or destruction of  the Collateral shall be borne by the Loan Parties, absent gross negligence or willful misconduct as  determined by a court of competent jurisdiction by final and nonappealable judgment on the part  of the Agent.  

 

 33      9.6 No Obligation to Pursue Others.  Neither Agent nor any Lender has any  obligation to attempt to satisfy the Obligations by collecting them from any other person liable for  them and Agent may release, modify or waive any Collateral provided by any other Person to  secure any of the Obligations, all without affecting Agent’s or Lenders’ rights against any Loan  Party.  Each Loan Party waives any right it may have to require Agent or any Lender to pursue  any other Person for any of the Obligations.  9.7 Remedies Cumulative.  Agent’s and Lenders’ rights and remedies under this  Agreement, the Loan Documents, and all other agreements shall be cumulative.  Agent and  Lenders shall have all other rights and remedies not inconsistent herewith as provided under the  Code, by law, or in equity.  No exercise by Agent of one right or remedy shall be deemed an  election, and no waiver by Agent of any Event of Default shall be deemed a continuing waiver.   No delay by Agent shall constitute a waiver, election, or acquiescence by it.  No waiver by Agent  shall be effective unless made in a written document signed on behalf of Agent and then shall be  effective only in the specific instance and for the specific purpose for which it was given.  Each  Loan Party expressly agrees that this Section 9.7 may not be waived or modified by Agent by  course of performance, conduct, estoppel or otherwise.  9.8 Demand; Protest.  Except as otherwise provided in this Agreement, each  Loan Party waives demand, protest, notice of protest, notice of default or dishonor, notice of  payment and nonpayment and any other notices relating to the Obligations.  10. NOTICES.  Unless otherwise provided in this Agreement, all notices or demands by any party relating  to this Agreement or any other agreement entered into in connection herewith shall be in writing  and (except for financial statements and other informational documents which may be sent by first- class mail, postage prepaid) shall be personally delivered or sent by a recognized overnight  delivery service, certified mail, postage prepaid, return receipt requested, or by electronic mail to  any Loan Party or to Agent, as the case may be, at its addresses set forth below:  If to any Loan Party: Cue Health Inc.  4980 Carroll Canyon Rd., Suite 100  San Diego, CA 92121  Attn:  John Gallagher, Chief Financial Officer  Email:  john.gallagher@cue.me  With an optional but not legally required copy to each of:  Cue Health, Inc.  4980 Carroll Canyon Rd., Suite 100  San Diego, CA 92121  Attn: Aasim Javid  Email: a.javed@cue.me    Cue Health, Inc.  4980 Carroll Canyon Road, Suite 100   34      San Diego, CA 92121  Attn: Erica Palsis and Joshua Bergmann  Email: legal@cue.me    If to Agent: East West Bank  9378 Wilshire Blvd., Suite 100  Beverly Hills, CA 90212  Attn:  Maytal Shainberg  Email:  Maytal.Shainberg@EastWestBank.com  The parties hereto may change the address at which they are to receive notices hereunder,  by notice in writing in the foregoing manner given to the other.  11. CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER; JUDICIAL  REFERENCE.  California law governs the Loan Documents without regard to principles of conflicts of  law.  The Loan Parties, Agent and Lenders each submit to the exclusive jurisdiction of the State  and Federal courts in Los Angeles County, California; provided, however, that nothing in this  Agreement shall be deemed to operate to preclude Agent or Lenders from bringing suit or taking  other legal action in any other jurisdiction to realize on the Collateral or any other security for the  Obligations, or to enforce a judgment or other court order in favor of Agent and/or Lenders.  Each  Loan Party expressly submits and consents in advance to such jurisdiction in any action or suit  commenced in any such court, and each Loan Party hereby waives any objection that it may have  based upon lack of personal jurisdiction, improper venue, or forum non conveniens and hereby  consents to the granting of such legal or equitable relief as is deemed appropriate by such court.   Each Loan Party hereby waives personal service of the summons, complaints, and other process  issued in such action or suit and agrees that service of such summons, complaints, and other  process may be made by registered or certified mail addressed to Borrower at the address set forth  in, or subsequently provided by Borrower in accordance with, Section 10 of this Agreement and  that service so made shall be deemed completed upon the earlier to occur of Borrower’s actual  receipt thereof or three (3) days after deposit in the U.S. mails, proper postage prepaid.  IF AND ONLY TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE  LOAN PARTIES, AGENT AND LENDERS EACH WAIVE THEIR RIGHT TO A JURY  TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON  THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY CONTEMPLATED  TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL  OTHER CLAIMS.  THIS WAIVER IS A MATERIAL INDUCEMENT FOR BOTH  PARTIES TO ENTER INTO THIS AGREEMENT.  EACH PARTY HAS REVIEWED  THIS WAIVER WITH ITS COUNSEL.  WITHOUT INTENDING IN ANY WAY TO LIMIT THE PARTIES’ AGREEMENT TO  WAIVE THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IF PERMITTED BY  APPLICABLE LAW, if the waiver of the right to a trial by jury is not enforceable, the parties  hereto agree that any and all disputes or controversies of any nature between them arising at any  time shall be decided by a reference to a private judge, who shall be a retired state or federal court   35      judge, mutually selected by the parties or, if they cannot agree, then any party may seek to have a  private judge appointed in accordance with California Code of Civil Procedure §§ 638 and 640 (or  pursuant to comparable provisions of federal law if the dispute falls within the exclusive  jurisdiction of the federal courts). The reference proceedings shall be conducted pursuant to and  in accordance with the provisions of California Code of Civil Procedure §§ 638 through 645.1,  inclusive. The private judge shall have the power, among others, to grant provisional relief,  including without limitation, entering temporary restraining orders, issuing preliminary and  permanent injunctions and appointing receivers.  All such proceedings shall be closed to the public  and confidential and all records relating thereto shall be permanently sealed. If during the course  of any dispute, a party desires to seek provisional relief, but a judge has not been appointed at that  point pursuant to the judicial reference procedures, then such party may apply to the Court for such  relief. The proceeding before the private judge shall be conducted in the same manner as it would  be before a court under the rules of evidence applicable to judicial proceedings. The parties shall  be entitled to discovery which shall be conducted in the same manner as it would be before a court  under the rules of discovery applicable to judicial proceedings. The private judge shall oversee  discovery and may enforce all discovery rules and orders applicable to judicial proceedings in the  same manner as a trial court judge. The parties agree that the selected or appointed private judge  shall have the power to decide all issues in the action or proceeding, whether of fact or of law, and  shall report a statement of decision thereon pursuant to California Code of Civil Procedure §  644(a). Nothing in this paragraph shall limit the right of any party at any time to exercise self-help  remedies, foreclose against collateral, or obtain provisional remedies. The private judge shall also  determine all issues relating to the applicability, interpretation, and enforceability of this  paragraph.  The parties agree that time is of the essence in conducting the referenced proceedings.  The  parties shall promptly and diligently cooperate with one another and the referee, and shall perform  such acts as may be necessary to obtain prompt and expeditious resolution of the dispute or  controversy in accordance with the terms hereof.  The costs shall be borne equally by the parties.  12. GENERAL PROVISIONS.  12.1 Successors and Assigns.    (a) This Agreement shall bind and inure to the benefit of the respective  successors and permitted assigns of each of the parties and shall bind all persons who  become bound as a debtor to this Agreement; provided, however, that neither this  Agreement nor any rights hereunder may be assigned by Borrower without the prior written  consent of the Agent and each Lender, which each such consent may be granted or withheld  in the Agent’s or such Lender’s sole discretion, as applicable.  Subject to the restrictions  set forth in clause (b) below, each Lender shall have the right to sell, transfer, assign  negotiate, or grant participation in all or any part of, or any interest in, such Lender’s  obligations, rights and benefits hereunder.  (b) No Lender may assign any or all of its interests hereunder to (i) the  Borrower or any of the Borrower’s Affiliates or Subsidiaries, (ii) any Defaulting Lender,  (iii) a natural person or an investment vehicle or trust for the benefit of a natural person.  All assignments by a Lender shall be subject to the following consents:   36      (i) unless an Event of Default has occurred, the consent of the  Borrower (such consent not to be unreasonably withheld or delayed) shall be  required for assignments to a Person that is not a Lender, an Affiliate of a Lender  or an Approved Fund provided that the Borrower shall be deemed to have consented  to any such assignment unless it shall object thereto by written notice to the Agent  within five (5) Business Days after having received notice thereof and provided,  further, that the Borrower’s consent shall not be required during the primary  syndication of the Revolving Loan;  (ii) the consent of the Agent (such consent not to be  unreasonably withheld or delayed) shall be required for assignments to a Person  that is not a Lender, an Affiliate of a Lender or an Approved Fund; and  (iii) the consent of each L/C Issuer (such consent not to be  unreasonably withheld or delayed).   (c) Any Lender may at any time pledge or assign a security interest in  all or any portion of its rights under this Agreement to secure obligations of such Lender,  including any pledge or assignment to secure obligations to a Federal Reserve Bank;  provided, no such pledge or assignment shall release such Lender from any of its  obligations hereunder or substitute any such pledgee or assignee for such Lender as a party  hereto.  12.2 Indemnification.  Borrower shall defend, indemnify and hold harmless  Lenders and their respective officers, employees, and agents against:  (a) all obligations, demands,  claims, and liabilities claimed or asserted by any other party in connection with the transactions  contemplated by this Agreement and/or the Loan Documents; and (b) all losses or Lender  Expenses in any way suffered, incurred, or paid by any Lender, its officers, employees and agents  as a result of or in any way arising out of, following, or consequential to transactions between  Lenders and Borrower whether under this Agreement, or otherwise (including without limitation  reasonable attorneys’ fees and expenses), except, in each case, for obligations, demands, claims,  liabilities, losses and expenses caused by Agent and or Lenders’ gross negligence or willful  misconduct as determined by a court of competent jurisdiction by final and nonappealable  judgment.  12.3 Time of Essence.  Time is of the essence for the performance of all  obligations set forth in this Agreement.  12.4 Severability of Provisions.  Each provision of this Agreement shall be  severable from every other provision of this Agreement for the purpose of determining the legal  enforceability of any specific provision.  12.5 Correction of Loan Documents.  Agent may correct patent errors and fill in  any blanks in this Agreement and the other Loan Documents consistent with the agreement of the  parties so long as Agent provides Borrower with written notice of such correction and allows  Borrower at least ten (10) days to object to such correction.  

 

 37      12.6 Amendments in Writing, Integration.  All amendments, modifications,  waivers and consents to or terminations of this Agreement or the other Loan Documents, must be  in writing signed by the Loan Parties and the Required Lenders, and such additional Lenders as  set forth below.  All prior agreements, understandings, representations, warranties, and  negotiations between the parties hereto with respect to the subject matter of this Agreement and  the other Loan Documents, if any, are merged into this Agreement and the Loan Documents.  (a) Lender Consent. Notwithstanding the foregoing, no amendment,  modification, waiver or consent shall:  (i) extend or increase any commitment of any Lender without  the written consent of such Lender (it being understood that a waiver of any  condition precedent set forth in Section 3 or the waiver of any Default shall not  constitute an extension or increase of any commitment of any Lender);  (ii) reduce or forgive the principal of, or rate of interest specified  herein on, any Advance or any fees or other amounts payable hereunder or under  any other Loan Document, without the written consent of each Lender directly and  adversely affected thereby (provided that only the consent of the Required Lenders  shall be necessary (x) to amend the default rate set forth in Section 2.3(b) or to  waive the obligation of the Borrower to pay interest at such default rate or (y) to  amend any financial covenant (or any defined term directly or indirectly used  therein), even if the effect of such amendment would be to reduce the rate of interest  on any Advance or other Obligation or to reduce any fee payable hereunder);  (iii) postpone any date scheduled for any payment of principal  of, or interest on, any Advance, or any fees or other amounts payable hereunder or  under any other Loan Document, or reduce the amount of, waive or excuse any  such payment, without the written consent of each Lender directly and adversely  affected thereby;  (iv) change any provision of this Section or the percentage in the  definition of “Required Lenders” or any other provision hereof specifying the  number or percentage of Lenders required to amend, waive or otherwise modify  any rights hereunder or make any determination or grant any consent hereunder,  without the written consent of each Lender;   (v) affect the rights or duties hereunder or under any other Loan  Document of the Agent, unless in writing executed by the Agent, in each case in  addition to the Borrower and the Lenders required above; or  (vi) change or amend Section 12.11, Section 12.12 or any other  provision of this Agreement providing for pro rata treatment of Lenders, in each  case, without the written consent of each Lender;  (vii) release any Guarantor from its obligation under its guaranty  (except as otherwise permitted herein or in the other Loan Documents), without the  written consent of each Lender;   38      (viii) release all or substantially all of the Collateral (except as  otherwise expressly permitted herein or in the other Loan Documents) without the  written consent of each Lender;   (ix) subordinate the Obligations or the Liens granted under the  Loan Documents, to any other Indebtedness or Liens, without the written consent  of each Lender;  (x) amend, modify, terminate or waive any obligation of the  Lenders relating to the purchase of participations in Letters of Credit as provided  in Section 2.1 without the written consent of the Agent and each L/C Issuer;   (xi) change any component of the definition of Eligible Accounts  to increase eligibility thereunder without the consent of Required Lenders; or  (xii) change or amend Section 6.7(b) without the written consent  of Required Lenders.  (b) In addition, notwithstanding anything in this Section to the contrary,  if the Agent and the Borrower shall have jointly identified an obvious error or any error or  omission of a technical nature, in each case, in any provision of the Loan Documents, then  the Agent and the Borrower shall be permitted to amend such provision, and, in each case,  such amendment shall become effective without any further action or consent of any other  party to any Loan Document if the same is not objected to in writing by the Required  Lenders to the Agent within five (5) Business Days following receipt of notice thereof.  (c) Replacement of Lenders.  If any Lender is a Non-Consenting  Lender, then the Agent may upon notice to such Lender, require such Lender to assign and  delegate, without recourse, all of its interests, rights (other than its existing rights to  payments) and obligations under this Agreement and the related Loan Documents to an  assignee permitted hereunder that shall assume such obligations (which assignee may be  another Lender, if a Lender accepts such assignment); provided that:  (i) such Non-Consenting Lender shall have received, as  applicable, payment of an amount equal to the outstanding principal of its Loans,  accrued interest thereon, accrued fees and all other amounts payable to it hereunder  and under the other Loan Documents from the assignee or the Borrower, as  applicable; and  (ii) the applicable assignee shall have consented to the  applicable amendment, waiver or consent.  A Lender shall not be required to make any such assignment or delegation if, prior thereto,  as a result of a waiver by such Lender or otherwise, the circumstances entitling the Agent  to require such assignment and delegation cease to apply.  12.7 Counterparts; Electronic Signatures. This Agreement and any other Loan  Document may be executed in any number of counterparts and by different parties on separate   39      counterparts, each of which, when executed and delivered, shall be deemed to be an original, and  all of which, when taken together, shall constitute but one and the same Agreement or Loan  Document, as applicable. The words “execution,” “signed,” “signature,” (delivery,” and words of  like import in or relating to this Agreement and/or any Loan Document and the transactions  contemplated hereby shall be deemed to include Electronic Signatures (as defined below),  deliveries or the keeping of records in electronic form, each of which shall be of the same legal  effect, validity or enforceability as a manually executed signature, physical delivery thereof or the  use of a paper-based recordkeeping system, as the case may be. As used herein, “Electronic  Signatures” means any electronic symbol or process attached to, or associated with, any contract  or other record and adopted by a person with the intent to sign, authenticate or accept such contract  or record. If any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf”  format data file, such signature shall create a valid and binding obligation of the party executing  this Agreement or any other Loan Document (or on whose behalf such signature is executed) with  the same force and effect as if such facsimile or “.pdf” signature page were an original hereof or  thereof.  12.8 Survival.  All covenants, representations and warranties made in this  Agreement shall continue in full force and effect so long as any Obligations (other than inchoate  indemnification and reimbursement obligations and other obligations which, by their terms,  survive termination of this Agreement) remain outstanding or Lenders have any obligation to make  any Credit Extension to Borrower.  The obligations of Borrower to indemnify Lenders with respect  to the expenses, damages, losses, costs and liabilities described in Section 12.2 shall survive until  all applicable statute of limitations periods with respect to actions that may be brought against  Lenders have run.  12.9 Confidentiality.  In handling any confidential information, Agent and  Lenders and all employees and agents of Agent and Lenders shall exercise the same degree of care  that each Lender exercises with respect to its own proprietary information of the same types to  maintain the confidentiality of any non-public information thereby received or received pursuant  to this Agreement except that disclosure of such information may be made (i) on a need to know  basis to the subsidiaries or Affiliates of Lenders in connection with their present or prospective  business relations with Borrower and who agree to keep such information confidential in  accordance with this Section 12.9, (ii) to prospective transferees or purchasers of any interest in  the Loans provided they have entered into a confidentiality agreement with terms no less restrictive  than those set forth herein in favor of Borrower and have delivered a copy to Borrower, (iii) as  required by law, regulations, rule or order, subpoena, judicial order or similar order, (iv) as may  be required in connection with the examination, audit or similar investigation of Lender, (v) on a  need to know basis to Lenders’ accountants, auditors and regulators and who in the case of  accountants and auditors have a duty of confidentiality with respect to such information or agree  to keep such information confidential in accordance with this Section 12.9, and (vi) as Lender may  reasonably determine necessary in connection with the enforcement of any remedies hereunder.   Confidential information hereunder shall not include information that either:  (a) is in the public  domain or in the knowledge or possession of Lender when disclosed to Lender, or becomes part  of the public domain after disclosure to Lender through no fault of Lender; or (b) is disclosed to  Lender by a third party, provided Lender does not have actual knowledge that such third party is  prohibited from disclosing such information.   40      12.10 Reserved.  12.11 Application of Payments and Proceeds.  Upon the occurrence and during  the continuance of an Event of Default and after the acceleration of the principal amount of any of  the Revolving Loans, all payments and proceeds in respect of any of the Obligations received by  the Agent or any Lender under any Loan Document, including any proceeds of any sale of, or other  realization upon, all or any part of the Collateral, shall be applied as follows:  first, to all fees, costs, indemnities, liabilities, obligations and expenses incurred by  or owing to the Agent and/or each L/C Issuer with respect to this Agreement, the  other Loan Documents or the Collateral;  second, to all fees, costs, indemnities, liabilities, obligations and expenses incurred  by or owing to any other Lender with respect to this Agreement, the other Loan  Documents or the Collateral;  third, to accrued and unpaid interest on the Obligations (including any interest  which, but for the provisions of Title 11 of the United States Code entitled  “Bankruptcy,” as now and hereafter in effect, or any successor statute, would have  accrued on such amounts);  fourth, to the principal amount of the Obligations, including to cash collateralize  existing obligations with respect to Letters of Credit in compliance with this  Agreement,   fifth, to the Obligations owing to any counterparty in respect of any Lender  Hedging Agreement;  sixth, to any other Obligations owing to the Agent or any other Lender under the  Loan Documents; and  seventh, to the Borrower or to whoever may be lawfully entitled to receive such  balance or as a court of competent jurisdiction may direct.  In carrying out the foregoing, (a) amounts received shall be applied in the numerical order provided  until exhausted prior to the application to the next succeeding category, and (b) each of the Persons  entitled to receive a payment in any particular category shall receive an amount equal to its pro  rata share of amounts available to be applied pursuant thereto for such category.    12.12 Adjustments; Set-off.    (a) If any Lender (a “benefitted Lender”) shall at any time exercise any  set-off right or receive any payment of all or part of its Revolving Loans, or its  participations in Letters of Credit, or interest thereon, or fees, or receive any collateral in  respect thereof (whether voluntarily or involuntarily, by set-off, pursuant to bankruptcy or  insolvency proceedings or otherwise), in a greater proportion than any such payment to or  collateral received by any other Lender, if any, in respect of such other Lender’s Revolving  Loans, its participation in Letters of Credit,  or interest thereon, or fees, such benefitted  

 

 41      Lender shall purchase for cash from the other Lenders such portion of each such other  Lender’s Revolving Loans or fees, or shall provide such other Lenders with the benefits of  any such collateral, or the proceeds thereof, as shall be necessary to cause such benefitted  Lender to share the excess payment or benefits of such collateral or proceeds ratably with  each of the Lenders; provided, however, that if all or any portion of such excess payment  or benefits is thereafter recovered from such benefitted Lender, such purchase shall be  rescinded, and the purchase price and benefits returned, to the extent of such recovery, but  without interest.  The Borrower agrees that each Lender so purchasing a portion of another  Lender’s Loans or its participation in Letters of Credit may exercise all rights of payment  (including, without limitation, rights of set-off) with respect to such portion as fully as if  such Lender were the direct holder of such portion, provided that, for the avoidance of  doubt but subject to the foregoing provisions of this Section 12.12(a), any Lender shall  have the right (without further consent of the Borrower, the Agent or any other Lender),  exercisable upon the occurrence and during the continuance of an Event of Default, without  prior notice to the Borrower, any such notice being expressly waived by the Borrower to  the extent permitted by applicable law, to set-off and appropriate and apply against any  such Obligations any and all deposits (general or special, time or demand, provisional or  final), in any currency, and any other credits, indebtedness or claims in any currency, in  each case whether direct or indirect, absolute or contingent, matured or unmatured, at any  time held or owing by such Lender or any branch or agency thereof or bank controlling  such Lender to or for the credit or the account of the Borrower.  (b) In addition to any rights and remedies of the Agent provided by law,  the Agent shall have the right (without further consent of the Borrower or any other  Lender), exercisable upon the occurrence and during the continuance of an Event of  Default, without prior notice to the Borrower, any such notice being expressly waived by  the Borrower to the extent permitted by applicable law, to set-off and appropriate and apply  against any such Obligations any and all deposits (general or special, time or demand,  provisional or final), in any currency, and any other credits, indebtedness or claims in any  currency, in each case whether direct or indirect, absolute or contingent, matured or  unmatured, at any time held or owing by the Agent or any branch or agency thereof or bank  controlling the Agent to or for the credit or the account of the Borrower.  12.13 Taxes.    (a) All sums payable by or on behalf of any Loan Party under the Loan  Documents shall, except to the extent required by applicable law, be paid free and clear of,  and without any deduction or withholding on account of, any Taxes.  If any Loan Party or  any other Person (acting as a withholding agent) is (in such withholding agent’s reasonable  good faith discretion) required by applicable law to make any deduction or withholding on  account of any Tax from any sum paid or payable by any Loan Party to the Agent or any  Lender (which term for purposes of this Section 12.13 shall include any L/C Issuer and any  assignee of a Lender, L/C Issuer) under any of the Loan Documents: (i) such Loan Party  or other withholding agent shall be entitled to make such deduction or withholding; (ii) if  a Loan Party is the applicable withholding agent, the applicable Loan Party shall timely  pay any such Tax to the relevant Governmental Authority in accordance with applicable  law; and (iii) in the case of Indemnified Taxes, the sum payable by such Loan Party in   42      respect of which the relevant deduction, withholding or payment is required shall be  increased to the extent necessary to ensure that, after the making of such deduction,  withholding or payment, the Agent or such Lender, as the case may be, receives on the due  date a net sum equal to what it would have received had no such deduction, withholding or  payment been required or made.  (b) The Loan Parties shall timely pay to the relevant Governmental  Authority in accordance with applicable law, or at the option of the Agent timely reimburse  it for the payment of, any Other Taxes.  (c) Within thirty (30) days after the due date of payment of any Tax  which it is required by this Section 12.13 to pay, if a Loan Party is the applicable  withholding agent, such Loan Party shall deliver to the Agent the original or certified copy  of a receipt issued by the relevant Governmental Authority evidencing such payment or  other evidence reasonably satisfactory to the Agent of such deduction, withholding or  payment and of the remittance thereof to the relevant Governmental Authority.  (d) The Loan Parties shall jointly and severally indemnify the Agent and  each Lender, within ten (10) days after demand therefor, for the full amount of Indemnified  Taxes (including any Indemnified Taxes imposed or asserted on or attributable to amounts  payable under  this Section 12.13) payable or paid by the Agent or any such Lender or any  of their respective Affiliates arising in connection with payments made under any Loan  Document, 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 such Loan Party by a Lender (with a copy to the Agent), or by the Agent on  its own behalf or on behalf of a Lender, prepared in reasonable detail shall be conclusive  absent manifest error. Any such certificate must be provided within six (6) months of  incurrence of such tax liability by the Agent or Lender.  (e) Each Lender shall severally indemnify the Agent, within 10 days  after demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only  to the extent that a Loan Party has not already indemnified the Agent for such Indemnified  Taxes and without limiting the obligation of such Loan Party to do so), and (ii)  any  Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the  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 Agent shall be conclusive absent  manifest error.  Each Lender hereby authorizes the 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 Agent to the Lender from any other source against any amount due to the Agent  under this paragraph (c).    (f) The Loan Parties’ obligations under this Section 12.13 shall survive  the resignation or replacement of the Agent or any assignment of rights by, or the  replacement of, a Lender, the termination of the Revolving Loan Commitments, the   43      expiration of the Letters of Credit and the repayment, satisfaction or discharge of all  Obligations.  12.14 Certain Laws and Regulations. Each Lender that is subject to the Act (as  hereinafter defined) and  Agent (for itself and not on behalf of any Lender) hereby notifies  Borrower that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56  (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and record  information that identifies Borrower, which information includes the name and address of  Borrower and other information that will allow such Lender or Agent, as applicable, to identify  the Borrower in accordance with the Act.  Borrower shall, promptly following a request by Agent  or any Lender, provide all documentation and other information that Agent or such Lender requests  in order to comply with its ongoing obligations under applicable “know your customer” and anti- money laundering rules and regulations, including the Act. For legal entity borrowers, Lender or  Agent will require the legal entity to provide identifying information about each beneficial owner  and/or individuals who have significant responsibility to control, manage or direct the legal entity.  12.15 Acknowledgement and Consent to Bail-In of Affected Financial  Institutions.  Notwithstanding anything to the contrary in any Loan Document or in any other  agreement, arrangement or understanding among any such parties, each party hereto acknowledges  that any liability of any Affected Financial Institution arising under any Loan Document, to the  extent such liability is unsecured, may be subject to the write-down and conversion powers of an  Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:  (a) the application of any Write-Down and Conversion Powers by an  Resolution Authority to any such liabilities arising hereunder which may be payable to it  by any party hereto that is an Affected Financial Institution; and  (b) the effects of any Bail-In Action on any such liability, including, if  applicable:  (i) a reduction in full or in part or cancellation of any such  liability;  (ii) a conversion of all, or a portion of, such liability into shares  or other instruments of ownership in such Affected Financial Institution, its parent  undertaking, or a bridge institution that may be issued to it or otherwise conferred  on it, and that such shares or other instruments of ownership will be accepted by it  in lieu of any rights with respect to any such liability under this Agreement or any  other Loan Document; or  (iii) the variation of the terms of such liability in connection with  the exercise of the write-down and conversion powers of any Resolution Authority.  (c) As used in this Section 12.15, the following terms have the  following meanings:   44      “Affected Financial Institution” means (a) any EEA Financial Institution or (b) any UK  Financial Institution.   “Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the  applicable Resolution Authority in respect of any liability of an Affected Financial Institution.  “Bail-In Legislation” means, (a) with respect to any EEA Member Country implementing  Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European  Union, the implementing law, regulation rule or requirement for such EEA Member Country from  time to time which is described in the EU Bail-In Legislation Schedule and (b) with respect to the  United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time)  and any other law, regulation or rule applicable in the United Kingdom relating to the resolution  of unsound or failing banks, investment firms or other financial institutions or their affiliates (other  than through liquidation, administration or other insolvency proceedings).  “EEA Financial Institution” means (a) any credit institution or investment firm established  in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority,  (b) any entity established in an EEA Member Country which is a parent of an institution described  in clause (a) of this definition, or (c) any financial institution established in an EEA Member  Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and  is subject to consolidated supervision with its parent.  “EEA Member Country” means any of the member states of the European Union, Iceland,  Liechtenstein, and Norway.  “EEA Resolution Authority” means any public administrative authority or any Person  entrusted with public administrative authority of any EEA Member Country (including any  delegee) having responsibility for the resolution of any EEA Financial Institution.  “EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published  by the Loan Market Association (or any successor thereto), as in effect from time to time.1  “Resolution Authority” means an EEA Resolution Authority or, with respect to any UK  Financial Institution, a UK Resolution Authority.  “Write-Down and Conversion Powers” means, (a) with respect to any EEA Resolution  Authority, the write-down and conversion powers of such EEA Resolution Authority from time to  time under the Bail-In Legislation for the applicable EEA Member Country, which write-down  and conversion powers are described in the EU Bail-In Legislation Schedule, and (b) with respect  to the United Kingdom,  any powers of the applicable Resolution Authority under the Bail-In  Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial  Institution  or any contract or instrument under which that liability arises, to convert all or part of  that liability into shares, securities or obligations of that person or any other person, to provide that  any such contract or instrument is to have effect as if a right had been exercised under it or to    1 The EU Bail-In Legislation Schedule may be found at  http://www.lma.eu.com/uploads/files/EU%20BAIL- IN%20LEGISLATION%20SCHEDULE%2022-Dec-2015%2010-46%20.pdf  

 

 45      suspend any obligation in respect of that liability or any of the powers under that Bail-In  Legislation that are related to or ancillary to any of those powers.  12.16 Acknowledgement Regarding Any Supported QFCs.  To the extent that the  Loan Documents provide support, through a guarantee or otherwise, for any swap obligation or  any other agreement or instrument that is a QFC (such support, “QFC Credit Support”, and each  such QFC, a “Supported QFC”), the parties acknowledge and agree as follows with respect to the  resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit  Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act  (together with the regulations promulgated thereunder, the “U.S. Special Resolution Regimes”) in  respect of such Supported QFC and QFC Credit Support (with the provisions below applicable  notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be  governed by the laws of the State of New York and/or of the United States or any other state of  the United States):  (a) In the event a Covered Entity that is party to a Supported QFC (each,  a “Covered Party”) becomes subject to a proceeding under a U.S. Special Resolution  Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support  (and any interest and obligation in or under such Supported QFC and such QFC Credit  Support, and any rights in property securing such Supported QFC or such QFC Credit  Support) from such Covered Party will be effective to the same extent as the transfer would  be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC  Credit Support (and any such interest, obligation and rights in property) were governed by  the laws of the United States or a state of the United States. In the event a Covered Party  or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S.  Special Resolution Regime, Default Rights under the Loan Documents that might  otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised  against such Covered Party are permitted to be exercised to no greater extent than such  Default Rights could be exercised under the U.S. Special Resolution Regime if the  Supported QFC and the Loan Documents were governed by the laws of the United States  or a state of the United States. Without limitation of the foregoing, it is understood and  agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in  no event affect the rights of any Covered Party with respect to a Supported QFC or any  QFC Credit Support.  (b) As used in this Section 12.16, the following terms have the  following meanings:  “BHC Act Affiliate” of a party means an “affiliate” (as such term is defined  under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.  “Covered Entity” means any of the following:  (i) a “covered entity” as that  term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b); (ii) a  “covered bank” as that term is defined in, and interpreted in accordance with, 12  C.F.R. § 47.3(b); or (iii) a “covered FSI” as that term is defined in, and interpreted  in accordance with, 12 C.F.R. § 382.2(b).   46      “Default Right” has the meaning assigned to that term in, and shall be  interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.  “QFC” has the meaning assigned to the term “qualified financial contract”  in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).  13. AGENT  13.1 Appointment and Duties.  For the avoidance of doubt and notwithstanding  anything else herein:  (a) Each Lender hereby appoints Agent (together with any successor  Agent) as agent hereunder and authorizes Agent to (i) execute and deliver the Loan  Documents and accept delivery thereof on its behalf from any Loan Party, (ii) take such  action on its behalf and to exercise all rights, powers and remedies and perform the duties  as are expressly delegated to Agent under such Loan Documents and (iii) exercise such  powers as are incidental thereto.  (b) Without limiting the generality of clause (a) above, Agent shall have  the sole and exclusive right and authority (to the exclusion of the other Lenders), and is  hereby authorized, to (i) act as the disbursing and collecting agent for Lenders with respect  to all payments and collections arising in connection with the Loan Documents, and each  Person making any payment in connection with any Loan Document to any Lender is  hereby authorized to make such payment to Agent, (ii) file and prove claims and file other  documents necessary or desirable to allow the claims of Lenders with respect to any  Obligation in any Insolvency Proceeding or any other bankruptcy, insolvency or similar  proceeding (but not to vote, consent or otherwise act on behalf of such Person), (iii) act as  collateral agent for each Lender for purposes of the perfection of all Liens created by such  agreements and all other purposes stated therein, (iv) manage, supervise and otherwise deal  with the Collateral, (v) take such other action as is necessary or desirable to maintain the  perfection and priority of the Liens created or purported to be created by the Loan  Documents, (vi) except as may be otherwise specified in any Loan Document, exercise all  remedies given to Agent and the other Lenders with respect to the Collateral, whether under  the Loan Documents, applicable law or otherwise and (vii) execute any amendment,  consent or waiver under the Loan Documents on behalf of any Lender that has consented  in writing to such amendment, consent or waiver; provided, however, that Agent hereby  appoints, authorizes and directs each Lender to act as collateral sub-agent for Agent,  Lenders for purposes of the perfection of Liens with respect to any deposit account  maintained by a Loan Party with, and cash and Cash Equivalents held by, such Lender, and  may further authorize and direct Lenders to take further actions as collateral sub-agents for  purposes of enforcing such Liens or otherwise to transfer the Collateral subject thereto to  Agent, and each Lender hereby agrees to take such further actions to the extent, and only  to the extent, so authorized and directed.  (c) Under the Loan Documents, Agent (i) is acting solely on behalf of  Lenders, with duties that are entirely administrative in nature, notwithstanding the use of  the defined term “Agent”, the terms “agent”, “Agent” and “collateral agent” and similar   47      terms in any Loan Document to refer to Agent, which terms are used for title purposes  only, (ii) is not assuming any obligation under any Loan Document other than as expressly  set forth therein or any role as agent, fiduciary or trustee of or for any Lender or any other  Person and (iii) shall have no implied functions, responsibilities, duties, obligations or  other liabilities under any Loan Document, and each Lender, by accepting the benefits of  the Loan Documents, hereby waives and agrees not to assert any claim against Agent based  on the roles, duties and legal relationships expressly disclaimed in clauses (i) through (iii)  above.  13.2 Binding Effect.  Each Lender, by accepting the benefits of the Loan  Documents, agrees that (i) any action taken by Agent in accordance with the provisions of the  Loan Documents and (ii) the exercise by Agent of the powers set forth herein or therein, together  with such other powers as are incidental thereto, shall be authorized and binding upon all of  Lenders.  13.3 Use of Discretion.  (a) Agent shall not have any duty to take any discretionary action or  exercise any discretionary powers, except discretionary rights and powers expressly  contemplated hereby or by the other Loan Documents that Agent is required to exercise;  provided, that Agent shall not be required to take any action that, in its opinion or the  opinion of its counsel, may expose Agent to liability or that is contrary to any Loan  Document or applicable requirement of law.  (b) Agent shall provide copies of the various deliverables provided to it  by the Borrower pursuant to clauses 5.6, 5.12, 6.2 hereof to the other Lenders; provided  that Agent shall not, except as expressly set forth herein and in the other Loan Documents,  have any duty to disclose, and shall not be liable for the failure to disclose, any information  relating to any Loan Party or its Affiliates that is communicated to or obtained by Agent  or any of its Affiliates in any capacity other than its capacity as Agent hereunder.  (c) Notwithstanding anything to the contrary contained herein or in any  other Loan Document, the authority to enforce rights and remedies hereunder and under  the other Loan Documents against Loan Parties or any of them shall be vested exclusively  in, and all actions and proceedings at law in connection with such enforcement shall be  instituted and maintained exclusively by, Agent in accordance with the Loan Documents  for the benefit of all Lenders; provided that the foregoing shall not prohibit (i) Agent from  exercising on its own behalf the rights and remedies that inure to its benefit (solely in its  capacity as Agent) hereunder and under the other Loan Documents, (ii) any Lender from  exercising set-off rights in accordance with the terms hereof or (iii) any Lender from filing  proofs of claim or appearing and filing pleadings on its own behalf during the pendency of  a proceeding relative to any Loan Party under any bankruptcy or other debtor relief law.  13.4 Delegation of Rights and Duties.  Agent may, upon any term or condition it  specifies, delegate or exercise any of its rights, powers and remedies under, and delegate or  perform any of its duties or any other action with respect to, any Loan Document by or through  any trustee, co-agent, employee, attorney-in-fact and any other Person (including any Lender),   48      provided that Agent shall be liable for all acts or failures to act of any such Person to the same  extent as Agent would be if Agent performed such action.  Any such Person shall benefit from this  Article 13 to the extent provided by Agent.  13.5 Reliance and Liability.  (a) Agent may, without incurring any liability hereunder, (i) treat the  payee of any note issued hereunder as its holder until such note has been assigned in  accordance with the terms of this Agreement, (ii) rely on the Register, (iii) consult with  any advisors, accountants and other experts (including advisors to, and accountants and  experts engaged by, any Loan Party) and (iv) rely and act upon any document and  information (including those transmitted by electronic transmission) and any telephone  message or conversation, in each case believed by it to be genuine and transmitted, signed  or otherwise authenticated by the appropriate parties.  (b) None of Agent and its officers, employees, affiliates or agents shall  be liable for any action taken or omitted to be taken by any of them under or in connection  with any Loan Document, and each Lender, each Borrower and each other Loan Party  hereby waive and shall not assert (and each Borrower shall cause each other Loan Party to  waive and agree not to assert) any right, claim or cause of action based thereon, except to  the extent of liabilities resulting from the gross negligence or willful misconduct as  determined by a court of competent jurisdiction by final and nonappealable judgment of  Agent or, as the case may be, such officers, employees, affiliates or agents (each as  determined in a final, non-appealable judgment by a court of competent jurisdiction) in  connection with the duties expressly set forth herein.  (c) Each Lender (i) acknowledges that it has performed and will  continue to perform its own diligence and has made and will continue to make its own  independent investigation of the operations, financial conditions and affairs of Loan Parties  and (ii) agrees that is shall not rely on any audit or other report provided by Agent.  13.6 Agent Individually.  Agent and its Affiliates may make loans and other  extensions of credit to, acquire Equity Interests of, engage in any kind of business with, any Loan  Party or Affiliate thereof as though it were not acting as Agent and may receive separate fees and  other payments therefor.  To the extent Agent or any of its Affiliates makes any Loan or otherwise  becomes a Lender hereunder, it shall have and may exercise the same rights and powers hereunder  and shall be subject to the same obligations and liabilities as any other Lender and the term  “Lender” and any similar terms shall, except where otherwise expressly provided in any Loan  Document, include, without limitation, Agent or such Affiliate, as the case may be, in its individual  capacity as Lender.  13.7 Lender Credit Decision.  Each Lender acknowledges that it shall,  independently and without reliance upon Agent, any Lender or upon any document (including any  offering and disclosure materials in connection with the syndication of the Loans) solely or in part  because such document was transmitted by Agent, conduct its own independent investigation of  the financial condition and affairs of each Loan Party and make and continue to make its own  credit decisions in connection with entering into, and taking or not taking any action under, any  

 

 49      Loan Document or with respect to any transaction contemplated in any Loan Document, in each  case based on such documents and information as it shall deem appropriate.  Except for documents  expressly required by any Loan Document to be transmitted by Agent to Lenders, Agent shall not  have any duty or responsibility to provide any Lender with any credit or other information  concerning the business, prospects, operations, property, financial and other condition or  creditworthiness of any Loan Party or any Affiliate of any Loan Party that may come in to the  possession of Agent or any of its Related Persons, except to the extent of any costs and expenses  resulting from the gross negligence or willful misconduct as determined by a court of competent  jurisdiction by final and nonappealable judgment of Agent or, as the case may be, such officers,  employees, affiliates or agents (each as determined in a final, non-appealable judgment by a court  of competent jurisdiction).  13.8 Expenses; Indemnities.  (a) Each Lender agrees to reimburse Agent and each of its Related  Persons (to the extent not reimbursed by any Loan Party) promptly upon demand, severally  and ratably, for any costs and expenses (including fees, charges and disbursements of  financial, legal and other advisors and Taxes paid in the name of, or on behalf of, any Loan  Party) that may be incurred by Agent or any of its Related Persons in connection with the  preparation, syndication, execution, delivery, administration, modification, consent,  waiver or enforcement of, or the taking of any other action (whether through negotiations,  through any work-out, bankruptcy, restructuring or other legal or other proceeding  (including, without limitation, preparation for and/or response to any subpoena or request  for document production relating thereto) or otherwise) in respect of, or legal advice with  respect to its rights or responsibilities under, any Loan Document.  (b) Each Lender further agrees, within thirty (30) days after demand  therefor, to indemnify Agent (to the extent not reimbursed by any Loan Party), severally  and ratably, from and against liabilities that may be imposed on, incurred by or asserted  against Agent in any matter relating to or arising out of, in connection with or as a result  of any Loan Document or any other act, event or transaction related, contemplated in or  attendant to any such document, or, in each case, any action taken or omitted to be taken  by Agent or any of its Related Persons under or with respect to any of the foregoing except  to the extent of liabilities resulting from the gross negligence or willful misconduct as  determined by a court of competent jurisdiction by final and nonappealable judgment of  Agent or, as the case may be, such officers, employees, affiliates or agents (each as  determined in a final, non-appealable judgment by a court of competent jurisdiction).  A  certificate as to the amount of such payment or liability delivered to any Lender by Agent  shall be conclusive absent demonstrable error.  Each Lender hereby authorizes Agent to  apply any and all amounts at any time owing to such Lender under any Loan Document or  otherwise payable by Agent to such Lender from any other source against any amount due  to Agent under this Section 13.8(b).  13.9 Resignation of Agent.  (a) Agent may resign at any time by delivering notice of such  resignation to Lenders and Borrower, effective on the date set forth in such notice or, if no   50      such date is set forth therein, upon the date such notice shall be effective in accordance  with the terms of this Section 13.9.  If Agent delivers any such notice, Lenders shall have  the right to appoint a successor Agent.  If, after thirty (30) days after the date of retiring  Agent’s notice of resignation, no successor Agent has been appointed by Lenders that has  accepted such appointment, then the retiring Agent may, on behalf of Lenders, appoint a  successor Agent from among Lenders.  (b) Effective immediately upon its resignation, (i) the retiring Agent  shall be discharged from its duties and obligations under the Loan Documents, (ii) Lenders  shall assume and perform all of the duties of Agent until a successor Agent shall have  accepted a valid appointment hereunder, (iii) the retiring Agent shall no longer have the  benefit of any provision of any Loan Document other than with respect to any actions taken  or omitted to be taken while such retiring Agent was, or because such Agent had been,  validly acting as Agent under the Loan Documents and (iv) the retiring Agent shall take  such action as may be reasonably necessary to assign to the successor Agent its rights as  Agent under the Loan Documents.  Effective immediately upon its acceptance of a valid  appointment as Agent, a successor Agent shall succeed to, and become vested with, all the  rights, powers, privileges and duties of the retiring Agent under the Loan Documents.  13.10 Release of Collateral or Guarantors.  Each Lender hereby consents to the  release and hereby directs Agent to release or subordinate the following:  (a) any Subsidiary of Borrower from its guaranty of any Obligation if  all of the equity interests of such Subsidiary are sold or transferred in a transaction  permitted by the Loan Documents; and  (b) any Lien held by Agent for the benefit of Lenders against (i) any  Collateral that is sold, transferred, conveyed or otherwise disposed of by a Loan Party in a  transaction permitted by the Loan Documents (including pursuant to a waiver or consent),  (ii) any property subject to a Lien permitted under clause (n) of the definition of Permitted  Lien and (iii) all of the Collateral and all Loan Parties, upon termination of the Revolving  Line or the occurrence of the Revolving Maturity Date.  Each Lender hereby directs Agent, and Agent hereby agrees, upon receipt of notice from  the Borrower, to execute and deliver or file such documents and to perform other actions  reasonably necessary to release the guaranties and Liens when and as directed in this  Section 13.10.  [Balance of Page Intentionally Left Blank]  (Signature Page to Loan and Security Agreement)       IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed  as of the date first above written.   CUE HEALTH INC., as Borrower  By: /s/ John Gallagher    John Gallagher   Chief Financial Officer  (Signature Page to Loan and Security Agreement)        EAST WEST BANK, as Agent and Lender  By: /s/ Maytal Shainberg    Maytal Shainberg   Senior Vice President  

 

(Signature Page to Loan and Security Agreement)        COMERICA BANK, as Lender  By: /s/ Robert Hernandez   Robert Hernandez  Group Manager           Exhibit A – Page 1      EXHIBIT A  DEFINITIONS  “Accounts” means all presently existing and hereafter arising “accounts,” as such term is  defined in Section 9102 of the Code, contract rights, instruments (including those evidencing  indebtedness owed to Borrower by its Affiliates), general intangibles, payment intangibles, chattel  paper (including electronic chattel paper) and all other forms of obligations owing to Borrower  arising out of the sale or lease of goods or inventory (including, without limitation, the licensing  of digital content, software and other technology) or the rendering of services by Borrower and  any and all credit insurance, guaranties, and other security therefor, as well as all merchandise  returned to or reclaimed by Borrower and Borrower’s Books relating to any of the foregoing.  “Advance” or “Advances” means a cash advance or cash advances or issuance of a Letter  of Credit under the Revolving Line.  “Affiliate” means, with respect to any Person, any Person that owns or controls directly or  indirectly such Person, any Person that controls or is controlled by or is under common control  with such Person, and each of such Person’s senior executive officers, directors, and partners.  “Anti-Money Laundering Laws” means the PATRIOT Act; the U.S. Money Laundering  Control Act of 1986 and the regulations and rules promulgated thereunder, as amended from time  to time, the U.S. Bank Secrecy Act and the regulations and rules promulgated thereunder, as  amended from time to time, and corresponding laws of jurisdictions in which the Borrower  operates or in which the proceeds of the Loans will be used or from which repayments of the  Obligations will be derived.  “Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an  Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a  Lender.  “Beneficial Ownership Certification” means a certification regarding beneficial  ownership required by the Beneficial Ownership Regulation, which certification shall be  substantially in form and substance satisfactory to Agent and the Lenders.   “Beneficial Ownership Regulation” means 31 C.F.R. § 1010.230.  “Borrower State” means Delaware, the state under whose laws Borrower is organized.  “Borrower’s Books” means all of Borrower’s books and records including:  ledgers;  records concerning Borrower’s assets or liabilities, the Collateral, business operations or financial  condition; and all computer programs, or tape files, and the equipment, containing such  information.  “Business Day” means any day that is not a Saturday, Sunday, or other day on which banks  in the State of California or the State of New York are authorized or required to close.     Exhibit A – Page 2      “Cash Equivalents” means (a) any readily-marketable securities (i) issued by, or directly,  unconditionally and fully guaranteed or insured by the United States federal government or  (ii) issued by any agency of the United States federal government the obligations of which are  fully backed by the full faith and credit of the United States federal government, (b) any readily- marketable direct obligations issued by any other agency of the United States federal government,  any state of the United States or any political subdivision of any such state or any public  instrumentality thereof, in each case having a rating of at least “A-1” from S&P or at least “P-1”  from Moody’s, (c) any commercial paper rated at least “A-1” by S&P or “P-1” by Moody’s and  issued by any Person organized under the laws of any state of the United States, (d) any Dollar- denominated time deposit, certificate of deposit, overnight bank deposit or bankers’ acceptance  issued or accepted by any Lender or any commercial bank that is, in each case, rated investment  grade by both S&P and Moody’s, (e) interests in any money market fund registered under the  Investment Company Act of 1940 that (i) has substantially all of its assets invested continuously  in the types of investments referred to in clause (a), (b), (c) or (d) above with maturities as set forth  in the proviso below, (ii) has net assets in excess of Five Hundred Million and 00/100 Dollars  ($500,000,000) and (iii) has obtained from either S&P or Moody’s the highest rating obtainable  for money market funds in the United States, and (f) other cash equivalents determined by the  Agent to have a risk equivalent to items rated at least “A-1” by S&P or “P-1” by Moody’s and  otherwise acceptable from time to time to the Agent; provided, however, that the maturities of all  obligations specified in any of clauses (a) through (d) above shall not exceed 365 days.  “Cash Management Obligations” means the obligations of the Loan Parties to the Agent  or any Lender under one or more credit cards, debit cards, cash management agreements, deposit  account agreements, treasury agreements, sweep agreements or similar agreements pertaining to  cash management services.  "Cash Trigger Event" means the earlier of (i) December 31, 2022, and (i) the first date on  which Borrower's aggregate cash and Cash Equivalents is less than Two Hundred Million and  00/100 Dollars ($200,000,000.00), measured as of the last day of the calendar month.   “Change in Control” shall mean a transaction in which any “person” or “group” (other  than Borrower’s existing investors) (within the meaning of Section 13(d) and 14(d)(2) of the  Securities Exchange Act of 1934) becomes the “beneficial owner” (as defined in Rule 13d-3 under  the Securities Exchange Act of 1934), directly or indirectly, of a sufficient number of shares of all  classes of stock then outstanding of Borrower ordinarily entitled to vote in the election of directors,  empowering such “person” or “group” to elect a majority of the Board of Directors of Borrower,  who did not have such power before such transaction.  “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; provided that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall  Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives  thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives  promulgated by the Bank for International Settlements, the Basel Committee on Banking     Exhibit A – Page 3      Supervision (or any successor or similar authority) or the United States or foreign regulatory  authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in  Law”, regardless of the date enacted, adopted or issued.  “Chief Executive Office State” means California, where Borrower’s chief executive  office is located.  “Closing Date” means the date of this Agreement.  “Code” means the California Uniform Commercial Code as amended or supplemented  from time to time.  “Collateral” means all of Borrower’s right, title and interest in and to the property  described on Exhibit B attached hereto and all Intellectual Property Collateral except to the extent  (i) any such property is nonassignable by its terms without the consent of the licensor thereof or  another party (but only to the extent such prohibition on transfer remains in place and is  enforceable under applicable law, including, without limitation, Sections 9406 and 9408 of the  Code) provided that upon the cessation of any such restriction or prohibition, such property shall  automatically become part of the Collateral, (ii) the granting of a security interest therein is  contrary to applicable law, provided that upon the cessation of any such restriction or prohibition,  such property shall automatically become part of the Collateral, (iii) constitutes the equity interests  of a controlled foreign corporation (as defined in the IRC), in excess of such amount of the voting  power of all classes of equity interests of such controlled foreign corporations entitled to vote as  would result in materially adverse tax consequences to the Loan Parties if such amount was  included as Collateral hereunder, provided that the amount not excluded shall never be less than  sixty-five percent (65%), (iv) is an intent-to-use trademark, (v) is an asset as to which the costs of  creating or perfecting a security interest or pledge exceeds the benefit to Agent and Lenders to be  obtained therefrom, as determined by Agent from time to time; provided that in no case shall the  definition of “Collateral” exclude any Accounts, proceeds of the disposition of any property, or  general intangibles consisting of rights to payment; or (vi) any such property constitutes Excluded  Accounts.  “Collateral State” means the state or states where the Collateral is located, which is  California.  “Collection Account” has the meaning set forth in Section 4.4.  “Contingent Obligation” means, as applied to any Person, any direct or indirect liability,  contingent or otherwise, of that Person with respect to (i) any indebtedness, lease, dividend, letter  of credit or other obligation of another, including, without limitation, any such obligation directly  or indirectly guaranteed, endorsed, co-made or discounted or sold with recourse by that Person, or  in respect of which that Person is otherwise directly or indirectly liable; (ii) any obligations with  respect to undrawn letters of credit, corporate credit cards or merchant services issued for the  account of that Person; and (iii) all obligations arising under any interest rate, currency or  commodity swap agreement, interest rate cap agreement, interest rate collar agreement, or other  agreement or arrangement designated to protect a Person against fluctuation in interest rates,  currency exchange rates or commodity prices; provided, however, that the term “Contingent  

 

   Exhibit A – Page 4      Obligation” shall not include endorsements for collection or deposit in the ordinary course of  business or customary indemnity or warranty obligations entered into in connection with any  acquisition or any disposition permitted hereunder.  The amount of any Contingent Obligation  shall be deemed to be an amount equal to the stated or determined amount of the primary obligation  in respect of which such Contingent Obligation is made or, if not stated or determinable, the  maximum reasonably anticipated liability in respect thereof as determined by such Person in good  faith; provided, however, that such amount shall not in any event exceed the maximum amount of  the obligations under the guarantee or other support arrangement.  “Credit Extension” means each Advance or any other extension of credit by Lenders to  or for the benefit of Borrower hereunder.  “Default” means any event or condition that constitutes an Event of Default or that, with  the giving of any notice, the passage of time, or both, would be an Event of Default.  “Disqualified Stock” means any equity, stock or stock equivalent which, by its terms, or  upon the happening of any event or condition (a) matures or is mandatorily redeemable or  redeemable at the option of the holder thereof (in whole or in party) on or prior to the date that is  ninety-one (91) days following the Revolving Maturity Date, (b) is convertible into or  exchangeable for debt securities, any equity, stock or stock equivalents described in clause (a), in  each case, at any time on or prior to the date that is ninety (90) days following the Revolving  Maturity Date, or (c) is entitled to receive scheduled dividends or distributions in cash prior to the  time that the Obligations (other than unasserted claims of contingent indemnification obligations)  are paid in full.  “Eligible Accounts” means those Accounts that arise in the ordinary course of Borrower’s  business that comply with all of Borrower’s representations and warranties to Agent set forth in  Section 5.3; provided, that, subject to Section 12.6, Agent may change the standards of eligibility  by giving Borrower prior written notice. Unless otherwise agreed to by Agent, Eligible Accounts  shall not include the following:  (a) Accounts that the account debtor has failed to pay in full (i) within ninety (90) days  of the original invoice date or (ii) within sixty (60) days of the original due date;  (b) credit balances over sixty (60) days of the original due date or over ninety (90) days  from the original invoice date;  (c) Accounts with respect to an account debtor twenty-five percent (25%) of whose  Accounts the account debtor has failed to pay (i) within ninety (90) days of invoice date or (ii)  within sixty (60) days of the original due date;  (d) Accounts with respect to an account debtor whose total obligations to Borrower  exceed twenty-five percent (25%) of all Accounts, except that the foregoing limitation shall not  apply to Accounts owing from the U.S. Department of Defense, the U.S. Department of Health &  Human Services and Google and Google's designated distributor;  (e) Accounts with respect to which the account debtor does not have its principal place  of business in the United States;     Exhibit A – Page 5      (f) Accounts with respect to which the account debtor is the United States or any  department, agency, or instrumentality of the United States, except for (i) Accounts of the United  States or any department, agency, or instrumentality of the United States if the payee has assigned  its payment rights to Bank and the assignment has been acknowledged under the Assignment of  Claims Act of 1940 (31 U.S.C. 3727), (ii) Accounts owing from the U.S. Department of Defense  and the U.S. Department of Health & Human Services pursuant to contracts in place as of the  Closing Date, and (iii) Accounts approved by the Required Lenders in writing or as to which the  Required Lenders have waived compliance with Section 4.2(b);  (g) Accounts with respect to which Borrower is liable to the account debtor for goods  sold or services rendered by the account debtor to Borrower, or otherwise subject to set-off or  counterclaim or contra accounts, but only to the extent of any amounts owing to the account debtor  against amounts owed to Borrower, such set-off or such counterclaim;  (h) Accounts with respect to which goods are placed on consignment, guaranteed sale,  sale or return, sale on approval, bill and hold, demo or promotional, or other terms by reason of  which the payment by the account debtor may be conditional;  (i) Accounts with respect to which the account debtor is an officer, employee, agent,  Subsidiary or Affiliate of Borrower;  (j) Accounts with respect to which the account debtor disputes liability or makes any  claim with respect thereto that there may be a basis for dispute (but only to the extent of the amount  subject to such dispute or claim), or is subject to any Insolvency Proceeding, or becomes insolvent,  or goes out of business;  (k) Accounts the collection of which Agent reasonably determines after inquiry and  consultation with Borrower to be doubtful, including, for the avoidance of doubt, any Accounts  with an account debtor who is subject to a bankruptcy or insolvency proceeding;   (l) Accounts owing by an account debtor organized under the law of a jurisdiction  outside of the United States and Accounts not owed in United States dollars unless supported by  adequate credit insurance acceptable to Agent;  (m) retentions and hold-backs;  (n) cash or cash on demand Accounts;  (o) Accounts that have not yet been billed to the account debtor or that relate to deposits  (such as good faith deposits) or other property of the account debtor held by Borrower for the  performance of services or delivery of goods which Borrower has not yet performed or delivered  and unconditionally accepted by the account debtor; and  (p) Accounts arising from direct to consumer contracts until such time as monthly  updates to the direct to consumer Accounts are being provided hereunder.  “Environmental Laws” means all laws, rules, regulations, orders and the like issued by  any federal state, local foreign or other Governmental Authority pertaining to the environment or     Exhibit A – Page 6      to any hazardous materials or wastes, toxic substances, flammable, explosive or radioactive  materials, asbestos or other similar materials.  “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and  the regulations thereunder.  “Event of Default” has the meaning assigned in Article 8.  “Excluded Accounts” means deposit accounts exclusively used for payroll, payroll taxes  and other employee wage and benefit payments to or for the benefit of Borrower’s employees or  any deposit account established as trust, escrow, fiduciary or third-party cash collateral accounts  permitted hereunder.  “Excluded Taxes” means, with respect to the Agent, any Lender or any other recipient of  any payment made by or on account of any obligation of any Loan Party under any Loan  Document, Taxes imposed on or measured by its net income or net profits (however denominated),  franchise Taxes imposed on it in lieu of net income Taxes and branch profits Taxes imposed on it,  in each case, by any jurisdiction (or any political subdivision thereof) (a) as a result of the recipient  being organized under the laws of, or having its principal office located in, or, in the case of any  Lender, its applicable lending office in such jurisdiction, or (b) as a result of any other present or  former connection between such recipient and such jurisdiction (other than connections arising  solely from 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, or sold or assigned an interest in  any Advance or Loan Document).  “Existing Letters of Credit” means, individually and collectively, (a) the following  Letters of Credit issued by East West Bank: (i) that certain Irrevocable Transferrable Standby  Letter of Credit No. 21OSL004814 issued March 1, 2021, in the amount of $12,000,000 under  which Sanmina Corporation is the beneficiary and Borrower is the applicant, and (ii) that certain  Irrevocable Transferrable Standby Letter of Credit No. 21OSL004975 issued November 4, 2021,  in the amount of $5,000,000 under which Affirm, Inc. is the beneficiary and Borrower is the  applicant and (b) the following Letters of Credit issued by Comerica Bank: (i) that certain Letter  of Credit No. OSB11611C issued by Comerica Bank on December 11, 2020, in the amount of  $101,565 under which ARE SD-REGION NO. 25, LLC is the beneficiary and Borrower is the  applicant,  (ii) that certain Letter of Credit No. OSB16721C issued by Comerica Bank on  December 11, 2020, in the amount of $75,240 under which BMR-MODA Sorrento LP is the  beneficiary and Borrower is the applicant, and (iii) that certain Letter of Credit No OSB19688C  issued by Comerica Bank on July 15, 2020, in the amount of $350,000 under which ARE-SD  Region NO. 67 LLC is the beneficiary and Borrower is the applicant.  “Field Exam” means any visit and inspection of the properties, assets and records of any  Loan Party during the term of this Agreement, which shall include access to such properties, assets  and records sufficient to permit the Agent or its representatives to examine, audit and make extracts  from any Loan Party’s books and records, make examinations and audits of any Loan Party’s other  financial matters and Collateral as Agent deems appropriate, and discussions with its officers,     Exhibit A – Page 7      employees, agents, advisors and independent accountants regarding such Loan Party’s business,  financial condition, assets, prospects and results of operations.  “Fund” means any Person (other than a natural person) that is (or will be) engaged in  making, purchasing, holding or otherwise investing in commercial loans, bonds and similar  extensions of credit in the ordinary course of its activities.  “GAAP” means generally accepted accounting principles, consistently applied, as in effect  from time to time.  “Governmental Authority” means any federal, state, municipal, national, supranational  or other government, governmental department, commission, board, bureau, court, agency or  instrumentality or political subdivision thereof or any entity, officer or examiner exercising  executive, legislative, judicial, regulatory or administrative functions of or pertaining to any  government or any court, in each case whether associated with the United States of America, any  State thereof or the District of Columbia or a foreign entity or government.  “Guarantor” means any Person that has guaranteed the Obligations of Borrower under the  Loan Documents pursuant to a document in form and substance satisfactory to Agent in its  reasonable discretion.  “Hedging Agreements” means any and all agreements, devices or arrangements designed  to protect at least one of the parties thereto from the fluctuations of interest rates, commodity  prices, exchange rates or forward rates applicable to such party’s assets, liabilities or exchange  transactions, including dollar-denominated or cross-currency interest rate exchange agreements,  forward currency exchange agreements, interest rate cap or collar protection agreements, forward  rate currency or interest rate options, puts and warrants or any similar derivative transactions.  “Indebtedness” means (a) all indebtedness for borrowed money or the deferred purchase  price of property or services, including without limitation reimbursement and other obligations  with respect to surety bonds and letters of credit (to the extent not cash collateralized), (b) all  obligations evidenced by notes, bonds, debentures or similar instruments, (c) all capital lease  obligations that have been or required to be accounted for as a capital lease on a balance sheet  prepared in accordance with GAAP and (d) all Contingent Obligations, if any.  “Indemnified Taxes” means (i) Taxes, other than Excluded Taxes, imposed on or with  respect to any payment made by or on account of any obligation of any Loan Party under any Loan  Document and (ii) to the extent not otherwise described in (i), Other Taxes.  “Insolvency Proceeding” means any proceeding commenced by or against any Person or  entity under any provision of the United States Bankruptcy Code, as amended, or under any other  bankruptcy or insolvency law, including assignments for the benefit of creditors, formal or  informal moratoria, compositions, extension generally with its creditors, or proceedings seeking  reorganization, arrangement, or other relief.  “Intellectual Property Collateral” means all of Borrower’s right, title, and interest in and  to the following:  

 

   Exhibit A – Page 8      (a) copyrights, trademarks and patents;  (b) Any and all trade secrets, and any and all intellectual property rights in computer  software and computer software products now or hereafter existing, created, acquired or held;  (c) Any and all design rights which may be available to Borrower now or hereafter  existing, created, acquired or held;  (d) Any and all claims for damages by way of past, present and future infringement of  any of the rights included above, with the right, but not the obligation, to sue for and collect such  damages for said use or infringement of the intellectual property rights identified above;  (e) All licenses or other rights to use any of the copyrights, trademarks and patents,  and all license fees and royalties arising from such use to the extent permitted by such license or  rights;  (f) All amendments, renewals and extensions of any of the copyrights, trademarks and  patents; and  (g) All proceeds and products of the foregoing, including without limitation all  payments under insurance or any indemnity or warranty payable in respect of any of the foregoing.  “Investment” by any Person means any beneficial ownership of (including stock,  partnership or limited liability company interest or other securities) any other Person, or any loan,  advance or capital contribution to any other Person.  “IRC” means the Internal Revenue Code of 1986, as amended, and the regulations  thereunder.  “L/C Issuer” means, as applicable (a) in the case of the Existing Letters of Credit issued  by Comerica Bank, Comerica Bank and (b) in the case of the Existing Letters of Credit issued by  East West Bank and each other Letter of Credit, East West Bank.  “Lender Expenses” means all reasonable documented out-of-pocket costs or expenses  (including reasonable documented attorneys’ fees and out-of-pocket expenses, generated by  outside counsel) incurred in connection with the preparation, negotiation, administration, and  enforcement of the Loan Documents; reasonable Collateral audit fees; and Agent and Lenders’  reasonable documented attorneys’ fees and out-of-pocket expenses (generated by outside counsel)  incurred in amending, enforcing or defending the Loan Documents (including fees and expenses  of appeal), incurred before, during and after an Insolvency Proceeding, whether or not suit is  brought.  “Lender Hedging Agreement” means any Hedging Agreement entered into between (i)  the Borrower or any Subsidiary thereof and (ii) the Agent, any Affiliate of the Agent, any Lender,  or any Affiliate of any Lender.  “Lien” means any mortgage, lien, deed of trust, charge, pledge, security interest or other  encumbrance.     Exhibit A – Page 9      “Loan Documents” means, collectively, this Agreement, any note or notes executed by  Borrower in connection with this Agreement or any Loan Document, and any other document,  instrument or agreement entered into in connection with this Agreement or any Loan Document,  all as amended, restated, amended and restated, modified, supplemented or extended from time to  time.  “Loan Party” means any Borrower or Guarantor.  “Material Adverse Effect” means (a) a material impairment in the perfection or priority  of Agent’s Lien in the Collateral or in the value of such Collateral (taken as a whole); (b) any  event, change, circumstance, effect or other matter that either individually or in the aggregate with  all other events, changes, circumstances, effects or other matters, has been materially adverse to  the to the business, assets, liabilities, results of operations or financial condition of Borrower and  its Subsidiaries, taken as a whole, or prevents or materially delays or materially impairs the ability  of Borrower to perform its obligations under this Agreement; or (c) a material impairment of the  prospect of repayment of any portion of the Obligations when due, each of the foregoing as  determined by the Agent or the Required Lenders in their reasonable discretion.  “Moody’s” means Moody’s Investors Service, Inc., or any successor to its rating agency  business.  “Negotiable Collateral” means Collateral regarding which a security interest under the  Code is or may be perfected by possession or control.  “Non-Consenting Lender” means any Lender that does not approve any consent, waiver  or amendment that (a) requires the approval of all or all affected Lenders in accordance with the  terms of Section 12.6 and (b) has been approved by the Required Lenders.  “Obligations” means all debt, principal, interest, Lender Expenses, Letter of Credit  outstanding, and other amounts owed to Lenders by Borrower pursuant to this Agreement or any  other Loan Document, including any and all obligations under Lender Hedging Agreements and  any and all Cash Management Obligations, whether absolute or contingent, due or to become due,  now existing or hereafter arising, including any interest that accrues after the commencement of  an Insolvency Proceeding and including any debt, liability, or obligation owing from Borrower to  others that Lenders may have obtained by assignment or otherwise.  “OFAC” means the Office of Foreign Asset Control of the United States Treasury  Department.  “Other Connection Taxes” means, with respect to the Agent, any Lender or any other  recipient of any payment made by or on account of any obligation of any Loan Party under any  Loan Document, Taxes imposed as a result of a present or former connection between such  recipient and the jurisdiction imposing such Tax (other than connections arising from 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, or sold or assigned an interest in any Advance or  Loan Document).     Exhibit A – Page 10      “Other Taxes” means all present or future stamp, court or documentary, intangible,  recording, filing or similar Taxes that arise from any payment made under, 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 that are  Other Connection Taxes imposed with respect to an assignment (other than an assignment at the  request of a Loan Party).  “Periodic Payments” means all installments or similar recurring payments that Borrower  may now or hereafter become obligated to pay to Agent pursuant to the terms and provisions of  any instrument, or agreement now or hereafter in existence between Borrower and Lenders.  “Permitted Indebtedness” means:  (a) Indebtedness of Borrower in favor of Lenders arising under this Agreement or any  other Loan Document;  (b) Indebtedness existing on the Closing Date and disclosed in the Schedule;  (c) Indebtedness (i) owing by any Loan Party to any other Loan Party, (ii) owing by  any Subsidiary that is not a Loan Party to any other Subsidiary that is not a Loan Party, and  (iii) owing by any Subsidiary that is not a Loan Party to any Loan Party in an aggregate principal  amount not to exceed Five Million and 00/100 Dollars ($5,000,000) at any time outstanding;  (d) Reimbursement obligations in connection with corporate credit cards in the  ordinary course of business;  (e) Subordinated Debt;  (f) Indebtedness of any Acquired Subsidiary incurred prior to the date of its acquisition  by Borrower in an amount not to exceed One Million and 00/100 Dollars ($1,000,000);  (g) Endorsements of negotiable instruments for deposit or collection in the ordinary  course of business;  (h) (i) Indebtedness in the form of deferred purchase price adjustments, customary  indemnification obligations and working capital adjustments and similar obligations (including all  seller notes), hold-backs, earn-outs and other contingent payment obligations not yet due and  payable in connection with the acquisition of an Acquired Subsidiary, in each case on  subordination terms reasonably acceptable to Agent, and (ii) the Borrower shall use commercially  reasonable efforts to subordinate such contingent payment obligations and, if after such use of  commercially reasonable efforts the Borrower is unable to obtain such subordination, such  Indebtedness shall be permitted up to an aggregate amount not to exceed Five Million and 00/100  Dollars ($5,000,000) for such contingent payment obligations to be paid prior to the Revolving  Maturity Date and in any amount for such contingent payment obligations reasonably expected to  be paid after the Revolving Maturity Date;  (i) Indebtedness to trade creditors, intercompany charges of expenses, intercompany  payables and other accrued obligations, in each case incurred in the ordinary course of business;     Exhibit A – Page 11      (j) Indebtedness of Borrower secured by a lien described in clause (n) of the defined  term “Permitted Liens,” provided such Indebtedness at the time incurred does not exceed the lesser  of the cost or fair market value of the equipment financed with such Indebtedness, and such  Indebtedness may not be increased after incurrence;  (k) Indebtedness with respect to any interest rate, currency or commodity swap  agreement, interest rate cap agreement, interest rate collar agreement or other agreement or  arrangement designed to protect Borrower against fluctuation in interest rates, currency exchange  rates or commodity prices maintained with Agent or any Lender (or any of their Affiliates);  (l) Indebtedness in respect of netting services, overdraft protections and other  customary bank products in connection with deposit accounts;  (m)  Indebtedness in respect of performance bonds, bid bonds, appeal bonds, surety  bonds and similar obligations, in each case provided in the ordinary course of business  (n) Indebtedness incurred in connection with the financing of insurance premiums,  provided, that the Borrower shall not finance more than one (1) year’s premiums at any time;  (o) Indebtedness, direct or indirect, not otherwise permitted hereunder not to exceed  Five Million and 00/100 Dollars ($5,000,000) in the aggregate at any one time outstanding;   (p) Indebtedness arising in connection with Qualified Receivables Financing  Transactions in an aggregate amount at any time outstanding not to exceed Twenty Million and  00/100 Dollars ($20,000,000);  (q) guarantees in respect of Indebtedness of a Loan Party or a Subsidiary to the extent  such Indebtedness is permitted to exist or be incurred pursuant to this definition;   (r) Indebtedness, to the extent arising from real property leases of a Loan Party or a  Subsidiary entered into in the ordinary course of business and classified as capital leases under  GAAP in an aggregate amount at any time outstanding not to exceed Twenty-Five Million and  00/100 Dollars ($25,000,000); and  (s) Extensions, refinancings and renewals of any items of Permitted Indebtedness  otherwise permitted by this definition, provided that the principal amount is not increased or the  terms modified to impose more burdensome terms upon Borrower or its Subsidiary, or less  favorable to Agent and Lenders, as the case may be.  “Permitted Investment” means:  (a) Investments existing on the Closing Date disclosed in the Schedule;  (b) (i) Marketable direct obligations issued or unconditionally guaranteed by the  United States of America or any agency or any State thereof maturing within one (1) year from  the date of acquisition thereof, (ii) commercial paper maturing no more than one (1) year from the  date of creation thereof and currently having rating of at least A-1 or P-1 from either Standard &  Poor’s Corporation or Moody’s Investors Service, (iii) any Lender's certificates of deposit  

 

   Exhibit A – Page 12      maturing no more than one (1) year from the date of investment therein, (iv) any Lender's money  market accounts, (v) other Cash Equivalents and (vi) investments made in accordance with the  investment policy of the Borrower as in effect on the Closing Date or as amended from time to  time subject to prior written approval from Agent for the purposes of this Agreement;  (c) Repurchases of stock from existing, former employees, officers or directors of  Borrower under the terms of applicable repurchase agreements (i) in an aggregate amount not to  exceed One Million and 00/100 Dollars ($1,000,000) in any fiscal year, provided that no Event of  Default has occurred, is continuing or would immediately exist after giving effect to the  repurchases, or (ii) in any amount where the consideration for the repurchase is the cancellation of  indebtedness owed by such existing former employees, officers or directors to Borrower regardless  of whether an Event of Default exists;  (d) Investments of (i) Borrower or its Subsidiaries in Borrower or Subsidiaries that are  Guarantors, (ii) Subsidiaries that are not Guarantors in Subsidiaries that are not Guarantors,  (iii) Borrower or Subsidiaries that are Guarantors in Subsidiaries that are not Guarantors not to  exceed Five Million and 00/100 Dollars ($5,000,000) in the aggregate in any fiscal year, or (iv)  Borrower in any Subsidiary in connection with the transfer of assets necessary in the operation of  up to two cartridge production pods, related reagent production equipment and plastics tooling to  be operated outside of the United States;  (e) Investments not to exceed Five Hundred Thousand and 00/100 Dollars ($500,000)   in the aggregate in any fiscal year consisting of (i) travel advances and employee relocation loans  and other employee loans and advances in the ordinary course of business, and (ii) loans to  employees, officers or directors relating to the purchase of equity securities of Borrower or its  Subsidiaries pursuant to employee stock purchase plan agreements approved by Borrower’s Board  of Directors;  (f) Investments not to exceed an aggregate principal amount of One Million and  00/100 Dollars ($1,000,000) during the term of this Agreement consisting of loans to employees  not in the ordinary course of business;  (g) Investments (including debt obligations) received in connection with the  bankruptcy or reorganization of customers or suppliers and in settlement of delinquent obligations  of, and other disputes with, customers or suppliers arising in the ordinary course of Borrower’s  business;  (h) Investments consisting of deposit or securities accounts, which are maintained in  accordance with the terms of this Agreement;  (i) (1) the formation and capitalization of a Subsidiary (“Formed Subsidiary”), or  (2)  any other consensual acquisition of all equity interests in all or substantially all of the assets  of any other Person (each an “Acquired Subsidiary”); provided that Borrower shall be in pro  forma compliance with the financial covenants set forth in Section 6.7 hereof immediately prior to  and after giving effect to such acquisition, no Event of Default shall have occurred or would result  from such acquisition or formation, Borrower receives written consent from Required Lenders for  acquisitions exceeding Forty Million and 00/100 Dollars ($40,000,000) in the aggregate from and     Exhibit A – Page 13      after the Closing Date and the representations and warranties set forth in the Loan Documents are  true and correct in all material respects after giving effect thereto; provided further that, Borrower  shall deliver financial information reasonably requested by Agent or the Lenders with respect to  any Acquired Subsidiary ten (10) Business Days prior to the consummation of such acquisition;  provided that such acquisition shall not be a “hostile” acquisition and shall have been approved by  the board of directors (or equivalent) and/or shareholders (or equivalent) of the Borrower and the  Acquired Subsidiary and shall be in the same line of business as the Borrower or a line of business  that is incidental, ancillary or complementary thereto or a natural extension thereof; provided  further that any such Formed Subsidiary or Acquired Subsidiary that is a domestic Subsidiary shall  become a Guarantor hereunder concurrently with such transaction if Revolving Loan proceeds are  used to fund such transaction, or within forty-five (45) days (as such date may be extended by  Agent in its discretion) after the consummation of the acquisition, and Borrower shall otherwise  comply with the requirements set forth in Section 6.10 of this Agreement with respect to such  Formed Subsidiary or Acquired Subsidiary (the transactions under clause(i)(2) of this definition  "Permitted Acquisitions");  (j) Investments of any Person existing at the time such Person becomes an Acquired  Subsidiary of the Borrower, so long as such Investments were not made in contemplation of such  Person becoming a Subsidiary and provided that such Investments do not exceed One Million and  00/100 Dollars ($1,000,000) in the aggregate;   (k) security deposits, prepaid expenses and negotiable instruments held for collection  in the ordinary course of business;  (l) to the extent constituting Investments, pledges and deposits permitted pursuant to  the definition of Permitted Liens;   (m) Investments consisting of the endorsement of negotiable instruments for deposit or  collection or similar transactions in the ordinary course of Borrower;   (n) (i) receivables owing to the Loan Parties or any of their Subsidiaries or any  receivables, prepayments, deposits and advances to suppliers or vendors, in each case if created  acquired or made in the ordinary course of business and payable or dischargeable in accordance  with customary trade terms and (ii) intercompany charges of expenses and intercompany payables,  in each case if created, acquired or made in the ordinary course of business;   (o) Investments in joint ventures and other minority interests in business with a  reasonable relationship to the business of the Borrower in an aggregate amount not to exceed Ten  Million and 00/100 Dollars ($10,000,000) at any one time outstanding;   (p) (i) Guarantees constituting Permitted Indebtedness and (ii) guaranties of leases or  other obligations entered into in the ordinary course of business that do not constitute  Indebtedness;   (q) interest rate, currency or commodity swap agreement, interest rate cap agreement,  interest rate collar agreement or other agreement or arrangement entered into with any Lender or  any Affiliate of a Lender designed to protect Borrower against fluctuation in interest rates,  currency exchange rates or commodity prices; and     Exhibit A – Page 14      (r) Investments not otherwise permitted hereunder not to exceed Five Million and  00/100 Dollars ($5,000,000) in the aggregate in any fiscal year.  “Permitted Liens” means the following:  (a) Any Liens existing on the Closing Date and disclosed in the Schedule (excluding  Liens to be satisfied with the proceeds of the Advances) or arising under this Agreement or the  other Loan Documents or any other Lien in favor of Agent for the benefit of Lenders;  (b) Liens for taxes, fees, assessments or other governmental charges or levies, either  not delinquent or being contested in good faith by appropriate proceedings and for which Borrower  maintains adequate reserves, provided the same have no priority over any of Agent’s security  interests;  (c) Carrier’s, warehousemen’s, mechanic’s, materialmen’s, repairmen’s, suppliers’,  utilities or other like Liens arising in the ordinary course of business which are not overdue for a  period for more than 30 days or which are being contested in good faith and by appropriate  proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the  books of the applicable Person;  (d) Pledges or deposits in the ordinary course of business in connection with workers’  compensation, unemployment insurance and other social security legislation, other than any Lien  imposed by ERISA;  (e) Deposits to secure the performance of bids, trade contracts and leases (other than  Indebtedness), statutory obligations, surety bonds, performance bonds and other obligations of a  like nature incurred in the ordinary course of business;  (f) Liens affecting the interest of the landlords and licensors (any underlying landlords  and licensors) of any real property leased, licensed or occupied by a Borrower or any of their  Subsidiaries;  (g) Liens of a collection bank on items in the course of collection arising under  Section 4-208 of the Code or other normal and customary rights of set-off and banker’s liens in  favor of banks or other depository institutions arising in the ordinary course of business;  (h) the title and interests of a lessor or sublessor in and to personal property leased or  subleased, in each case, extending only to such personal property and only to the extent such lease  or sublease is permitted hereunder;  (i) Liens on premium refunds and insurance proceeds granted in favor of insurance  companies (or their financing affiliates) solely in connection with the financing of insurance  premiums permitted hereunder;  (j) non-exclusive licenses and sublicenses and similar arrangements for the use of  intellectual property rights of Borrower or its Subsidiaries in the ordinary course of business  (including intercompany licensing of intellectual property between the Borrower and any     Exhibit A – Page 15      Subsidiary and between Subsidiaries in connection with cost-sharing arrangements, distribution,  marketing, make-sell or other similar arrangements);  (k) Precautionary financing statements filed in connection with operating leases  permitted by this Agreement;  (l) Liens incurred in connection with the extension, renewal or refinancing of the  indebtedness secured by Liens of the type described in clauses (a) through (c) above, provided that  any extension, renewal or replacement Lien shall be limited to the property encumbered by the  existing Lien and the principal amount of the indebtedness being extended, renewed or refinanced  does not increase;  (m) Liens arising from judgments, decrees or attachments in circumstances not  constituting an Event of Default under Sections 8.5 (attachment) or 8.9 (judgments);  (n) Liens securing obligations not to exceed Eight Million and 00/100 Dollars  ($8,000,000) in the aggregate (i) upon or in any Equipment acquired or held by Borrower or any  of its Subsidiaries to secure the purchase price of such Equipment or indebtedness incurred solely  for the purpose of financing the acquisition or lease of such Equipment, or (ii) existing on such  Equipment at the time of its acquisition, provided that the Lien is confined solely to the property  so acquired and improvements thereon, and the proceeds of such Equipment;  (o) Security deposits securing real estate leases;  (p) Liens securing Subordinated Debt;   (q) easements, zoning restrictions, right of way restrictions, minor defects or  irregularities in title, and other similar encumbrances affecting real property which, in the  aggregate, are not substantial in amount, and which do not in any case materially detract from the  value of the property subject thereto or materially interfere with the ordinary conduct of the  business of the applicable Person;   (r) Liens attaching solely to cash earnest money deposits in connection with an  acquisition of an Acquired Subsidiary as permitted hereunder or an acquisition of property  otherwise permitted hereunder; and  (s) Liens in favor of a Lender on Securitization Assets sold, conveyed, assigned or  otherwise transferred or purported to be sold, conveyed, assigned or otherwise transferred in  connection with a Qualified Receivables Financing Transaction, and Liens in favor of a Lender on  assets securing the Standard Securitization Undertakings of Borrower or a Subsidiary in  connection with Qualified Receivables Financing Transactions.  “Permitted Transfer” means the conveyance, sale, lease, transfer or disposition by  Borrower or any Subsidiary of:  (a) Inventory of the Borrower or any Subsidiary in the ordinary course of business;  

 

   Exhibit A – Page 16      (b) (i) non-exclusive licenses and sublicenses and similar arrangements for the use of  the property of Borrower or its Subsidiaries in the ordinary course of business  (including intercompany licensing of intellectual property between the Borrower  and any Subsidiary and between Subsidiaries in connection with cost sharing  arrangements, distribution, marketing, make-sell or other similar arrangements),  and (ii) licenses that could not result in a legal transfer of title of the licensed  property, which may be exclusive in respects other than territory and which may be  exclusive as to territory only as to discrete geographical areas outside of the United  States, in each case, not interfering in any material respect with the business of  Borrower or its Subsidiaries;  (c) Worn-out, surplus or obsolete equipment or inventory;  (d) Dispositions of equipment or real property to the extent that (i) such property is  exchanged for credit against the purchase price of replacement property or (ii) the  proceeds of such disposition are reasonably promptly applied to the purchase price  of such replacement property;  (e) (i) Dispositions or transfers of property by Borrower or any Subsidiary of Borrower  that is a Guarantor to Borrower or to another Subsidiary that is a Guarantor, or (ii)  by any Subsidiary that is not a Loan Party to any other Subsidiary that is not a Loan  Party;  (f) Dispositions of cash and Cash Equivalents in the ordinary course of business;  (g) Sale, assignment, transfer, disposition or discount of accounts receivable arising in  the ordinary course of business in connection with the compromise or collection  thereof;  (h) sales of common equity of the Borrower for cash that do not cause or result in a  Change in Control, provided that such equity is not Disqualified Stock;   (i) the lapse of registered intellectual property of the Borrower and its Subsidiaries to  the extent not economically desirable or otherwise material in the conduct of their  business;  (j)  transfers to the extent constituting Permitted Liens, Permitted Investments or  transactions permitted by Section 7.3;   (k) the disposition of Securitization Assets in connection with a Qualified Receivables  Financing Transaction permitted hereunder; and  (l) Other assets of Borrower or its Subsidiaries that do not in the aggregate exceed Two  Million and 00/100 Dollars ($2,000,000) after the Closing Date.  “Person” means any individual, sole proprietorship, partnership, limited liability company,  joint venture, trust, unincorporated organization, association, corporation, institution, public  benefit corporation, firm, joint stock company, estate, entity or governmental agency.     Exhibit A – Page 17      “Prime Rate” means, for any particular day, the variable rate of interest, per annum, most  recently announced by Agent, as its “prime rate,” whether or not such announced rate is the lowest  rate available from Agent.  “Prohibited Territory” means any person or country listed by OFAC as to which  transactions between a United States Person and that territory are prohibited.  “Qualified Receivables Financing Transaction” means any Receivables Financing  Transaction that meets the following conditions:   (a) such Receivables Financing Transaction (including financing terms, covenants,  termination events and other provisions) is in the aggregate economically fair and reasonable to  the Borrower and its Subsidiaries (as determined in good faith by the Borrower and not objected  to by Required Lenders);  (b) such Receivables Financing Transaction is non-recourse to, and does not obligate, the  Borrower or any Subsidiary, or their respective properties or assets (other than Securitization  Assets) in any way (other than in respect of Standard Securitization Undertakings);   (c) all sales, conveyances, assignments and/or contributions of Securitization Assets by the  Borrower or any Subsidiary are made at fair market value (as determined in good faith by the  Borrower); and  (d) such Receivables Financing Transaction is entered into exclusively with Lenders  hereunder.  “Receivables Financing Transaction” means any transaction or series of transactions that  may be entered into by the Borrower or any Subsidiary pursuant to which the Borrower or such  Subsidiary may sell, convey, assign or otherwise transfer (or purport to be sell, convey, assign or  otherwise transfer) Securitization Assets (which may include a grant of security interest to a Lender  in such Securitization Assets so sold, conveyed, assigned or otherwise transferred or purported to  be so sold, conveyed, assigned or otherwise transferred) to any Lender.   “Required Lenders” means, unless all of the Lenders and Agent agree otherwise in  writing, each Lender as of the Closing Date (which, for the avoidance of doubt, is East West Bank  and Comerica Bank).  “Responsible Officer” means each of the Chief Executive Officer, the Chief Operating  Officer, the Chief Financial Officer and the Treasurer of Borrower.  “Revolving Line” means revolving Credit Extensions of up to One Hundred Million  Dollars ($100,000,000.00) in aggregate original principal amount at any time outstanding, which  may be reduced from time to time in accordance with the terms of this Agreement.  “Revolving Loan” is defined in Section 2.1(b) hereof.  “Revolving Loan Commitment” means the commitment of a Lender listed below, or in  the Assignment and Assumption in the form attached hereto as Exhibit I pursuant to which it     Exhibit A – Page 18      becomes a Lender hereunder, to make Credit Extensions and participate in Letters of Credit  hereunder, as the same may be adjusted pursuant to the provisions hereof.  For the avoidance of  doubt, no Lender shall have any liability for the commitment of any other Lender.  Lender Revolving Loan  Commitment  Revolving Loan  Commitment Percentage  East West Bank $65,000,000.00 65%  Comerica Bank $35,000,000.00 35%  TOTAL $100,000,000.00 100%    “Revolving Loan Commitment Percentage” means, with respect to each Lender, the  percentage equivalent of the ratio which such Lender’s Revolving Loan Commitment bears to the  Revolving Line.   “Revolving Maturity Date” means two (2) years from the Closing Date, or June 30, 2024.  “S&P” means S&P Global Ratings, or any successor to its rating agency business.  “Schedule” means the schedule of exceptions attached hereto and approved by Agent, if  any.  “Securitization Assets” means accounts receivable, royalties, licensing fees or other  revenue streams, other rights to payment, including with respect to rights of payment pursuant to  the terms of joint ventures (in each case, whether now existing or arising in the future), and any  assets related thereto, including all collateral securing any of the foregoing, all contracts and all  guarantees or other obligations in respect of any of the foregoing, proceeds of any of the foregoing   and other assets which are customarily transferred or in respect of which security interests are  customarily granted in connection with non-recourse, asset securitization or receivables financing  transactions.  “SOS Reports” means the official reports from the Secretaries of State of each Collateral  State, Chief Executive Office State and the Borrower State and other applicable federal, state or  local government offices identifying all current security interests filed in the Collateral and Liens  of record as of the date of such report.  “Standard Securitization Undertakings” means representations, warranties, covenants  and indemnities entered into by the Borrower or any Subsidiary of the Borrower that are customary  in non-recourse securitization financings.  “Subordinated Debt” means any debt now or hereafter incurred by any Loan Party that is  subordinated in writing to the debt owing by Borrower to Agent and Lenders on terms, including  any security therefor, acceptable to Agent and the Required Lenders in their sole discretion.     Exhibit A – Page 19      “Subsidiary” means any corporation, partnership or limited liability company or joint  venture in which (i) any general partnership interest or (ii) more than fifty percent (50%) of the  stock, limited liability company interest or joint venture of which by the terms thereof ordinary  voting power to elect the Board of Directors, managers or trustees of the entity, at the time as of  which any determination is being made, is owned by Borrower, either directly or through an  Affiliate.  “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, additions to tax or penalties applicable thereto. 

 

   Exhibit B – Page 1      EXHIBIT B  COLLATERAL DESCRIPTION ATTACHMENT  TO LOAN AND SECURITY AGREEMENT  BORROWER: CUE HEALTH INC.  AGENT:  EAST WEST BANK  All right, title and interest in the following personal property and assets of the Loan Parties  (herein referred to, individually and collectively, as “Debtor”) whether presently existing or  hereafter created or acquired, and wherever located, including, but not limited to:  (a) all accounts (including health-care-insurance receivables), chattel paper  (including tangible and electronic chattel paper), deposit accounts (including, without limitation,  the Collection Account), documents (including negotiable documents), equipment (including all  accessions and additions thereto), general intangibles (including payment intangibles and  software), goods (including fixtures), instruments (including promissory notes), inventory  (including all goods held for sale or lease or to be furnished under a contract of service, and  including returns and repossessions), investment property (including securities and securities  entitlements), letter of credit rights, money, and all of Debtor’s books and records with respect to  any of the foregoing, and the computers and equipment containing said books and records;  (b) all deposit accounts, including without limitation, all demand, time, savings,  passbook, custodial, safekeeping, escrow or like accounts maintained by Debtor with the Agent,  any Lender or any bank, savings and loan association, credit union or like organization, and all  money, cash, cash equivalents, investment securities, deposits and prepayments of Debtor in any  such deposit account (all of the foregoing being deemed to be in any such account as soon as the  same is put in transit to such account by mail or other courier);  (c) all agreements, contracts, leases, licenses, letters of credit, security  agreements, indentures and purchase and sales orders of any kind whatsoever, all rights of Debtor  thereunder, including all rights to purchase, lease, sell or otherwise acquire or deal with real or  personal property and all warranty rights and contract rights of any nature, whether written or oral,  and all consents or other authorizations relating thereto, to the extent assignable;  (d) all licenses, permits, franchises, certificates and other governmental  authorizations and approvals of any nature whatsoever, to the extent assignable;  (e) all common law and statutory copyrights and copyright registrations,  applications for registration, now existing or hereafter arising, in the United States of America or  in any foreign jurisdiction, obtained or to be obtained on or in connection with any of the foregoing,  or any parts thereof or any underlying or component elements of any of the foregoing, together  with the right to copyright and all rights to renew or extend such copyrights and the right (but not  the obligation) of Agent to sue in its own name and/or in the name of the Debtor for past, present  and future infringements of copyright;     Exhibit B – Page 2      (f) all trademarks, service marks, trade names and service names and the  goodwill associated therewith, together  with the right to trademark and all rights to renew or  extend such trademarks and the right (but not the obligation) of Agent to sue in its own name  and/or in the name of the Debtor for past, present and future infringements of trademark;  (g) all (i) patents and patent applications filed in the United States Patent and  Trademark Office or any similar office of any foreign jurisdiction, and interests under patent  license agreements, including, without limitation, the inventions and improvements described and  claimed therein, (ii) licenses pertaining to any patent whether Debtor is licensor or licensee,  (iii) income, royalties, damages, payments, accounts and accounts receivable now or hereafter due  and/or payable under and with respect thereto, including, without limitation, damages and  payments for past, present or future infringements thereof, (iv) right (but not the obligation) of  Agent to sue i in its own name and/or in the name of the Debtor for past, present and future  infringements thereof, (v) rights corresponding thereto throughout the world in all jurisdictions in  which such patents have been issued or applied for, and (vi) reissues, divisions, continuations,  renewals, extensions and continuations-in-part with respect to any of the foregoing;  (h) all other proprietary rights and confidential information, technology,  processes, trade secrets, computer programs, source codes, software, customer lists, sales literature  and catalogues, price lists, subscriber information, drawings, specifications, blueprints, telephone  numbers, formulae, goodwill and all applications and registrations relating to any of the foregoing;  (i) all rights, remedies, powers and/or privileges of Debtor with respect to any  of the foregoing, all rights in all litigation presently or hereafter pending for any cause or claim  (whether in contract, tort or otherwise) and all judgments now or hereafter arising therefrom;  (j) all proceeds, replacements, products, additions, accessions and substitutions  of any of the foregoing;  (k) all files, correspondence, books and records of Debtor, including without  limitation, books of account and ledgers of every kind and nature, all electronically recorded data  relating to the Collateral, Debtor or the business thereof, all computer programs, tapes, discs and  data processing software containing the same, and all receptacles and containers for such records;  and  (l) any and all cash proceeds and/or noncash proceeds of any of the foregoing,  including, without limitation, insurance proceeds, and all supporting obligations and the security  therefor or for any right to payment.  All terms above have the meanings given to them in the  California Uniform Commercial Code, as amended or supplemented from time to time.     Exhibit C – Page 1      EXHIBIT C  LOAN ADVANCE/PAYDOWN REQUEST FORM  DEADLINE FOR SAME DAY PROCESSING IS 12:00 NOON, PACIFIC TIME.  To:  _____________________  FAX #: 626-927-2088  DATE:  _______________20___ TIME: _________    REQUESTED TRANSACTION  TYPE  REQUESTED DOLLAR AMOUNT For Bank Use  Only  PRINCIPAL INCREASE*  (ADVANCE)  $_____________________ Date Rec’d:  PRINCIPAL PAYMENT (ONLY) $_____________________ Time:  OTHER INSTRUCTIONS:  Comp.  Status:  YES   NO  _______________________________________________________________ Status Date:  _______________________________________________________________ Time:  Approval:  _______________________________________________________________             All representations and warranties of Borrower stated in the Loan and Security Agreement  are true and correct in all material respects as of the date of the telephone request for and advance  confirmed by this Loan Advance/Paydown Request Form; provided, however, that those  representations and warranties the date expressly referring to another date shall be true and correct  in all material respects as of such date.  *IS THERE A WIRE REQUEST TIED TO THIS LOAN ADVANCE?   (PLEASE CIRCLE ONE)  YES NO    If YES, the Outgoing Wire Transfer Instructions must be completed below.  OUTGOING WIRE TRANSFER  INSTRUCTIONS  Fed Reference  Number  Bank Transfer  Number  The items marked with an asterisk (*) are required to be completed.  *Beneficiary Name   *Beneficiary Account Number      Exhibit C – Page 2      *Beneficiary Address   Currency Type US DOLLARS ONLY  *ABA Routing Number (9 Digits)   *Receiving Institution Name   *Receiving Institution Address   *Wire Amount $    

 

   Exhibit D – Page 1      EXHIBIT D  COMPLIANCE CERTIFICATE  Please send all Required Reporting to: East West Bank  2350 Mission College Blvd., Suite 988  Santa Clara, CA 95054  Fax:  626-927-2088  FROM:  Cue Health Inc. (“Borrower”)     The undersigned authorized Officer of Cue Health Inc., hereby certifies in his or her  corporate capacity and not in his or her personal capacity that in accordance with the terms and  conditions of the Loan and Security Agreement between Borrower, Agent and Lenders (as  amended, restated, modified or otherwise supplemented from time to time, the “Agreement”),  (i) Borrower is in complete compliance for the period ending ___________________ with all  required covenants, including without limitation the ongoing registration of intellectual property  rights in accordance with Section 6.8, except as noted below, (ii) all representations and warranties  of Borrower stated in the Agreement are true and correct in all material respects as of the date  hereof; provided, however, that those representations and warranties the date expressly referring  to another date shall be true and correct in all material respects as of such date, and (iii) attached  hereto is a list of any applications or registrations of intellectual property rights filed with the  United States Patent and Trademark Office and not previously reporting to Agent, including the  date of such filing and the registration or application numbers, if any, and any filing of any  applications or registrations with the United States Copyright Office, including the title of such  intellectual property rights to be registered, as such title will appear on such applications or  registrations, and the date such applications or registrations will be filed.  Attached herewith are  the required documents supporting the above certification.  The Officer further certifies that these  are prepared in accordance with Generally Accepted Accounting Principles (GAAP) (other than,  in the case of unaudited financial statements, for the absence of footnotes and year-end audit  adjustments) and are consistently applied from one period to the next except as explained in an  accompanying letter or footnotes.  Please indicate compliance status by circling Yes/No under “Complies” or “Applicable” column.  REPORTING COVENANTS REQUIRED COMPLIES  [Company Prepared  Monthly/Quarterly F/S  Monthly, within 30 days/Quarterly  within 45 days YES NO]2  Compliance Certificate Monthly, within 30 days YES NO  [Company prepared Audited and  Unqualified F/S   Annually, within 5 days of  submission YES NO] 3  A/R & A/P Agings Monthly, within 30 days YES NO    2 To be included for Compliance Certificates delivered with such financial statements.   3 To be included for Compliance Certificates delivered with such financial statements.      Exhibit D – Page 2      REPORTING COVENANTS REQUIRED COMPLIES  [Annual projections   (incl. operating budget) FYE, within 90 days YES NO]4    FINANCIAL COVENANTS REQUIRED ACTUAL COMPLIES  TO BE  TESTED   MONTHLY, UNLESS OTHERWISE NOTED:    At all times, minimum asset coverage  ratio (see attached worksheet)  1.20x _____________ YES NO  [quarterly][monthly] Minimum  remaining months liquidity  Six (6) months _____________ YES NO  As of the end of each fiscal quarter,  minimum current ratio  1.20x _____________ YES NO  Borrower’s aggregate cash and Cash  Equivalents as of the last day of the  month  $200,000,000 _____________ YES NO    Please Enter Below Comments Regarding Violations:  The Officer further acknowledges that at any time Borrower is not in compliance with all the terms  set forth in the Agreement, including, without limitation, the financial covenants, no credit  extensions will be made.  Very truly yours,    CUE HEALTH INC.    By:     Name:   Title:           4 To be included for Compliance Certificates delivered with such financial statements.     Exhibit D – Page 1      ASSET COVERAGE RATIO WORKSHEET      Borrower certifies to Agent that the following accounts are  true and correct as of:   XX/XX/2022           Accounts Receivable      1. Previous Accounts Receivable Ending Balance   $  2. Plus:    New sales as posted through: XX/XX/2022 $  3. Plus:    Other additions (debit adjustments, etc)   $  4. Total Additions:    (line 2 + line 3):   $  5. Less:    Collections as posted through XX/XX/2022 $  6. Less:     Credit memo, discounts, credit adjustments, etc   $  7. Total Deductions:  (Line 5 + Line 6)   $  8.  Accounts Receivable as of: XX/XX/2022 $  9. Less: Ineligible Accounts Receivable      a) Earlier of 60 days past due date or 90 Days from invoice  date   $  b) Credit Balances over 60 days past due date or 90 Days  from invoice date   $  c) Cross-Aging > 25%  $  d) Concentration > 25% (except DOD/HHS, Google, and  Google's designated distributor)   $  e) Accounts with respect to which the account debtor does  not have its principal place of business in the United States   $  f) U.S. gov't receivables, except 1) when payee has  Assignment of Claims, 2) existing contracts as of Closing  Date w/ DOD/HHS, and 3) approved by Required Lenders   $  g) Accounts with respect to which Borrower is liable to the  account debtor for goods sold or services rendered by the  account debtor to Borrower, or otherwise subject to set-off  or counterclaim or contra accounts, but only to the extent of  any amounts owing to the account debtor against amounts  owed to Borrower, such set-off or such counterclaim   $  h) Accounts with respect to which goods are placed on  consignment, guaranteed sale, sale or return, sale on  approval, bill and hold, demo or promotional, or other terms  by reason of which the payment by the account debtor may  be conditional   $     Exhibit D – Page 2      i) Accounts with respect to which the account debtor is an  officer, employee, agent, Subsidiary or Affiliate of  Borrower   $  j) Accounts with respect to which the account debtor  disputes liability or makes any claim with respect thereto  that there may be a basis for dispute (but only to the extent  of the amount subject to such dispute or claim), or is subject  to any Insolvency Proceeding, or becomes insolvent, or  goes out of business   $  k) Accounts the collection of which Agent reasonably  determines after inquiry and consultation with Borrower to  be doubtful, including, for the avoidance of doubt, any  Accounts with an account debtor who is subject to a  bankruptcy or insolvency proceeding   $  l) Accounts owing by an account debtor organized under the  law of a jurisdiction outside of the United States and  Accounts not owed in United States dollars unless  supported by adequate credit insurance acceptable to Agent   $  m) retentions and hold-backs  $  n) Cash or Cash on demand Accounts  $  o) Accounts that have not yet been billed to the account  debtor or that relate to deposits (such as good faith deposits)  or other property of the account debtor held by Borrower  for the performance of services or delivery of goods which  Borrower has not yet performed or delivered and  unconditionally accepted by the account debtor     $  p) Accounts arising from direct to consumer contracts  until such time as monthly updates to the direct to consumer  Accounts are being provided hereunder   $  Total Ineligible Accounts Receivable   $  10. Eligible Receivables   $  11. Times Rate of Advance (% of Line 10) 80% $  12. Less:   any sales tax liability outstanding  $  13. Sum of unrestricted cash and Cash Equivalents  maintained in deposit accounts or investment accounts with  Agent not subject to any Lien other than the Liens in favor  Agent plus the sum of unrestricted cash and Cash  Equivalents maintained in deposit accounts or investment  accounts subject to an account control agreement in favor of  the Agent     $  14. Sum of Line 11 less Line 12 plus Line 13   $  15. Divided by Maximum Asset Coverage Ratio 1.20   

 

   Exhibit D – Page 3      16.  Obligations              Sight Letters of Credit  $          Usance Letters of Credit  $          Bankers Acceptance  $          Clean Advances /Revolving Working Capital  $  17.  Total Obligations as of: XX/XX/2022 $  18.  Net Availability (Line 14 minus Line 17) (Obligations  not to exceed Facility Commitment)  $100,000,000  $  (Note: if Negative -- Repayment Required)         Exhibit E      EXHIBIT E  DISBURSEMENT LETTER  CUE HEALTH INC.  The undersigned duly elected and acting officer of CUE HEALTH INC. (“Borrower”)  does hereby certify to EAST WEST BANK (“Agent”) and the Lenders, in connection with that  certain Loan and Security Agreement dated as of  June 30, 2022, by and among Borrower, Lenders  and Agent (as amended, restated , modified or otherwise supplemented from time to time, the  “Loan Agreement”; with other capitalized terms used below having the meanings ascribed thereto  in the Loan Agreement) that:  1. The representations and warranties made by Borrower in Section 5 of the Loan  Agreement and in the other Loan Documents are true and correct in all material respects as of the  date hereof; provided, however that those representations and warranties the date expressly  referring to another date shall be true and correct in all material respects as of such date.  2. No event or condition has occurred that would constitute an Event of Default under  the Loan Agreement or any other Loan Document.  3. The undersigned is a Responsible Officer.  [Balance of Page Intentionally Left Blank]     Exhibit E      4. The proceeds of the Advances shall be disbursed as follows:                      5. The aggregate proceeds of the Credit Extensions to be made shall be remitted as  follows:  1. [________________]    [________________]  ABA # [________________]  Account # [________________]  Reference: [________________]  $[________________]  2. [________________]    [________________]  ABA # [________________]  Account # [________________]  Reference: [________________]    $[________________]    Balance – credited to Borrower’s account at East West Bank.  [Balance of Page Intentionally Left Blank]     Exhibit E      Dated as of the date first set forth above.   BORROWER:    CUE HEALTH INC.  By:       Name:   Title:    AGENT:    EAST WEST BANK  By:    Name: Maytal Shainberg  Title:   Senior Vice President    

 

   Exhibit F – Page 1      EXHIBIT F  POST-CLOSING OBLIGATIONS SCHEDULE  1. Within thirty (30) days of Closing Date, a Field Exam must be completed.  2. The Loan Parties shall use commercially reasonable efforts to provide, within thirty (30)  days of the Closing Date, landlord waiver for those locations requested by Agent prior to the  Closing Date.   3. Within thirty (30) days of the Closing Date, to the extent not provided on or prior to the  Closing Date, the Loan Parties shall either (i) provide control agreements for all deposit accounts  and investment accounts held by the Loan Parties at banks other than Agent in form and substance  reasonably acceptable to Agent or (ii) close all deposit accounts and investment accounts held by  the Loan Parties with banks other than Agent that are not otherwise subject to a control agreement  in form and substance reasonably acceptable to Agent.       Exhibit G – Page 1      EXHIBIT G   CORPORATE BORROWING CERTIFICATE  BORROWER:  CUE HEALTH INC. DATE: [___________], 20[__]  AGENT: EAST WEST BANK     I hereby certify in my corporate capacity and not in my personal capacity as follows, as of  the date set forth above:  1. I am the Secretary, Assistant Secretary or other officer of the Borrower.  My title is  as set forth below.  2. Borrower’s exact legal name is set forth above.  Borrower is a corporation existing  under the laws of the State of Delaware.  3. Attached hereto as Exhibit A is a true, correct and complete copy of Borrower’s  Amended and Restated Certificate of Incorporation (including amendments), as filed with the  Secretary of State of the state in which Borrower is incorporated as set forth in paragraph 2 above.   Such Certificate of Incorporation has not been amended, annulled, rescinded, revoked or  supplemented, and remains in full force and effect as of the date hereof.  4. Attached hereto as Exhibit B is a true, correct and complete copy of Borrower’s  Amended and Restated Bylaws (including amendments).  Such Bylaws have not been amended,  annulled, rescinded, revoked or supplemented, and remain in full force and effect as of the date  hereof.  5. Attached hereto as Exhibit C is a true, correct and complete copy of the written  consent of the Board of Directors of Borrower duly and validly adopted by Borrower’s Board of  Directors on [_________________], 2022 (the “Written Consent”) authorizing the entry into,  execution, delivery and performance of the transactions contemplated by the Loan and Security  Agreement dated as of June 30, 2022 between Borrower and Agent (the “Credit Agreement”).   Such written consent is in full force and effect as of the date hereof and has not been in any way  modified, repealed, rescinded, amended or revoked, and Agent may rely on it until Agent receives  written notice of revocation from Borrower.  6. The true signatures of the persons and their titles who have been authorized to sign  or execute the Credit Agreement and any related documents and instruments to which Borrower  is a party on behalf of Borrower are set forth in the Written Consent attached hereto as Exhibit C.   The persons listed in the Written Consent are Borrower’s officers or employees with their titles  and signatures shown next to their names.       Exhibit G – Page 2       CUE HEALTH INC.  By:      Name:   Title:            Exhibit H – Page 1      EXHIBIT H    EAST WEST BANK   AUTOMATIC DEBIT AUTHORIZATION  Member FDIC      To: East West Bank   Re:  Loan #     You are hereby authorized and instructed to charge account No.  in the name  of CUE HEALTH INC. for principal, interest and other payments due on above referenced  loan as set forth below and credit the loan referenced above.   Debit each interest payment as it becomes due according to the terms  of the Loan and Security Agreement and any renewals or amendments thereof.   Debit each principal payment as it becomes due according to the  terms of the Loan and Security Agreement and any renewals or amendments  thereof.   Debit each payment for Lender Expenses as it becomes due according to the  terms of the Loan and Security Agreement and any renewals or amendments thereof.  This Authorization is to remain in full force and effect until revoked in writing.    Borrower Signature Date  CUE HEALTH INC. as Borrower  By:     Name:   Title:   [          ], 2022    

 

   Exhibit I – Page 1      EXHIBIT I  FORM OF ASSIGNMENT AND ASSUMPTION  This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the  Effective Date set forth below and is entered into by and between [the][each]  Assignor identified  in item 1 below ([the][each, an] “Assignor”) and [the][each]   Assignee identified in item 2 below  ([the][each, an] “Assignee”).  [It is understood and agreed that the rights and obligations of [the  Assignors][the Assignees]  hereunder are several and not joint.]   Capitalized terms used but not  defined herein shall have the meanings given to them in the Loan and Security Agreement  identified below (as amended, restated, modified or otherwise supplemented from time to time,  the “Loan Agreement”), receipt of a copy of which is hereby acknowledged by [the][each]  Assignee.  The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby  agreed to and incorporated herein by reference and made a part of this Assignment and Assumption  as if set forth herein in full.  For an agreed consideration, [the][each] Assignor hereby irrevocably sells and assigns to  [the Assignee][the respective Assignees], and [the][each] Assignee hereby irrevocably purchases  and assumes from [the Assignor][the respective Assignors], subject to and in accordance with the  Standard Terms and Conditions and the Loan Agreement, as of the Effective Date inserted by the  Agent as contemplated below (i) all of [the Assignor’s][the respective Assignors’] rights and  obligations in [its capacity as a Lender][their respective capacities as Lenders] under the Loan  Agreement and any other documents or instruments delivered pursuant thereto to the extent related  to the amount and percentage interest identified below of all of such outstanding rights and  obligations of [the Assignor][the respective Assignors] under the respective facilities identified  below (including any letters of credit, guarantees, and swingline loans included in such facilities),  and (ii) to the extent permitted to be assigned under Applicable Law, all claims, suits, causes of  action and any other right of [the Assignor (in its capacity as a Lender)][the respective Assignors  (in their respective capacities as Lenders)] against any Person, whether known or unknown, arising  under or in connection with the Loan Agreement, any other documents or instruments delivered  pursuant thereto or the loan transactions governed thereby or in any way based on or related to any  of the foregoing, including contract claims, tort claims, malpractice claims, statutory claims and  all other claims at law or in equity related to the rights and obligations sold and assigned pursuant  to clause (i) above (the rights and obligations sold and assigned by [the][any] Assignor to  [the][any] Assignee pursuant to clauses (i) and (ii) above being referred to herein collectively as  [the][an] “Assigned Interest”).  Each such sale and assignment is without recourse to [the][any]  Assignor and, except as expressly provided in this Assignment and Assumption, without  representation or warranty by [the][any] Assignor.  1. Assignor[s]: _________________________________________    _________________________________________  2. Assignee[s]: _________________________________________    _________________________________________   [Assignee is an [Affiliate] of [identify Lender]     Exhibit I – Page 2      3. Borrower(s): Cue Health Inc.  4. Agent: East West Bank, as the administrative agent under the Loan Agreement  5. Loan Agreement:  The Loan Agreement dated as of June 30, 2022, among  Borrower, the Lenders parties thereto and the Agent.  6.  Assigned Interest[s]:    Assignor[s] 5  Assignee[s] 6  Facility  Assigned7  Aggregate  Amount of  Commitment/  Loans for all  Lenders8  Amount of  Commitment/  Loans  Assigned 8  Percentage  Assigned of  Commitment/  Loans9  CUSIP  Number     $ $ %      $ $ %      $ $ %      [7. Trade Date:  ______________]   [Page break]      5 List each Assignor, as appropriate.  6 List each Assignee, as appropriate.  7 Fill in the appropriate terminology for the types of facilities under the Credit Agreement that are  being assigned under this Assignment and Assumption.  8 Amount to be adjusted by the counterparties to take into account any payments or prepayments  made between the Trade Date and the Effective Date.  9 Set forth, to at least 9 decimals, as a percentage of the Commitment/ Loans of all Lenders  thereunder.     Exhibit I – Page 3      Effective Date:   _____________ ___, 20___ [TO BE INSERTED BY  ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF  RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]  The terms set forth in this Assignment and Assumption are hereby agreed to:  ASSIGNOR[S]   [NAME OF ASSIGNOR]  By:_________________________________  Title:  [NAME OF ASSIGNOR]  By:_________________________________  Title:  ASSIGNEE[S]   [NAME OF ASSIGNEE]  By:_________________________________  Title:  [NAME OF ASSIGNEE]  By:_________________________________  Title:  [Consented to and]  Accepted:  EAST WEST BANK as Agent and Lender  By:     Title:   [Consented to:]   [NAME OF RELEVANT PARTY]  By:  ________________________________  Title:     Exhibit I – Page 4      ANNEX 1  STANDARD TERMS AND CONDITIONS FOR  ASSIGNMENT AND ASSUMPTION  1. Representations and Warranties.  1.1 Assignor[s].  [The][Each] Assignor (a) represents and warrants that (i) it is the legal  and beneficial owner of [the][the relevant] Assigned Interest, (ii) [the][such] Assigned Interest is  free and clear of any lien, encumbrance or other adverse claim, (iii) it has full power and authority,  and has taken all action necessary, to execute and deliver this Assignment and Assumption and to  consummate the transactions contemplated hereby and (iv) is not a Defaulting Lender; and (b)  assumes no responsibility with respect to (i) any statements, warranties or representations made in  or in connection with the Loan Agreement or any other Loan Document , (ii) the execution,  legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents [or any  collateral thereunder], (iii) the financial condition of the Borrower, any of its Subsidiaries or  Affiliates or any other Person obligated in respect of any Loan Document, or (iv) the performance  or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of  their respective obligations under any Loan Document.  1.2 Assignee[s].  [The][Each] Assignee (a) represents and warrants that (i) it has full  power and authority, and has taken all action necessary, to execute and deliver this Assignment  and Assumption and to consummate the transactions contemplated hereby and to become a Lender  under the Loan Agreement, (ii) it meets all the requirements to be an assignee under Section 9.04  of the Loan Agreement (subject to such consents, if any, as may be required thereunder) , (iii) from  and after the Effective Date, it shall be bound by the provisions of the Loan Agreement as a Lender  thereunder and, to the extent of [the][the relevant] Assigned Interest, shall have the obligations of  a Lender thereunder, (iv) it is sophisticated with respect to decisions to acquire assets of the type  represented by the Assigned Interest and either it, or the Person exercising discretion in making its  decision to acquire the Assigned Interest, is experienced in acquiring assets of such type, (v) it has  received a copy of the Loan Agreement, and has received or has been accorded the opportunity to  receive copies of the most recent financial statements delivered pursuant to Section 5.01 thereof,  as applicable, and such other documents and information as it deems appropriate to make its own  credit analysis and decision to enter into this Assignment and Assumption and to purchase  [the][such] Assigned Interest, (vi) it has, independently and without reliance upon the  Administrative Agent or any other Lender and based on such documents and information as it has  deemed appropriate, made its own credit analysis and decision to enter into this Assignment and  Assumption and to purchase [the][such] Assigned Interest, and (vii) if it is a Foreign Lender   attached to the Assignment and Assumption is any documentation required to be delivered by it  pursuant to the terms of the Loan Agreement, duly completed and executed by [the][such]  Assignee; and (b) agrees that (i) it will, independently and without reliance on the Administrative  Agent, [the][any] Assignor or any other Lender, and based on such documents and information as  it shall deem appropriate at the time, continue to make its own credit decisions in taking or not  taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all  of the obligations which by the terms of the Loan Documents are required to be performed by it  as a Lender.  

 

   Exhibit I – Page 5      2. Payments.  From and after the Effective Date, the Administrative Agent shall make  all payments in respect of [the][each] Assigned Interest (including payments of principal, interest,  fees and other amounts) to [the][the relevant] Assignor for amounts that have accrued to but  excluding the Effective Date and to [the][the relevant] Assignee for amounts that have accrued  from and after the Effective Date.   Notwithstanding the foregoing, the Administrative Agent shall  make all payments of interest, fees or other amounts paid or payable in kind from and after the  Effective Date to [the][the relevant] Assignee.  3. General Provisions.  This Assignment and Assumption shall be binding upon, and  inure to the benefit of, the parties hereto and their respective successors and assigns.  This  Assignment and Assumption may be executed in any number of counterparts, which together shall  constitute one instrument.  Delivery of an executed counterpart of a signature page of this  Assignment and Assumption by telecopy shall be effective as delivery of a manually executed  counterpart of this Assignment and Assumption.  This Assignment and Assumption shall be  governed by, and construed in accordance with, the law of the State of California.       Schedule of Exceptions –  Page 1       SCHEDULE OF EXCEPTIONS  Permitted Indebtedness (Exhibit A)  None.  Permitted Investments (Exhibit A)  None.  Permitted Liens (Exhibit A)   None.   Prior Names (Section 5.4)  None.   Litigation (Section 5.5)  None.  Inbound Licenses (Section 5.11)  None.     USA Patriot Act  Notice of Customer Appreciation  –  Page 1       USA PATRIOT ACT  NOTICE OF  CUSTOMER IDENTIFICATION  IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT  To help the government fight the funding of terrorism and money laundering activities,  Federal law requires all financial institutions to obtain, verify, and record information that  identifies each person who opens an account.  WHAT THIS MEANS FOR YOU: when you open an account, we will ask your name,  address, date of birth, and other information that will allow us to identify you.  We may also ask  to see your driver’s license or other identifying documents.Document

Exhibit 10.1

EXECUTION VERSION

AMENDMENT NO. 16 TO LOAN AND SERVICING AGREEMENT

This AMENDMENT NO. 16 TO LOAN AND SERVICING AGREEMENT (the “Amendment”), dated as of June 30, 2022 (the “Amendment Effective Date”), is entered into by and among ARES CAPITAL CP FUNDING LLC, a Delaware limited liability company, as the borrower (the “Borrower”), ARES CAPITAL CORPORATION, a Maryland corporation, as the servicer (the “Servicer”), WELLS FARGO BANK, NATIONAL ASSOCIATION, as the agent (the “Agent”), WELLS FARGO BANK, NATIONAL ASSOCIATION, BANK OF AMERICA, N.A., SAMPENSION LIVSFORSIKRING A/S, ARKITEKTERNES PENSIONSKASSE, PENSIONSKASSEN FOR JORDBRUGSAKADEMIKERE OG DYRLAEGER and CANADIAN IMPERIAL BANK OF COMMERCE (each, a “Lender” and together, the “Lenders”), U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as the trustee (in such capacity, the “Trustee”) and U.S. BANK NATIONAL ASSOCIATION, as the bank (in such capacity, the “Bank”) and as collateral custodian (in such capacity, the “Collateral Custodian”);

WHEREAS, the Borrower, the Agent, the Lenders, Wells Fargo Bank, National Association, as the Swingline Lender, the Servicer, the Trustee, the Bank, the Collateral Custodian and each of the other lenders, are party to the Loan and Servicing Agreement, dated as of January 22, 2010 (as amended, modified, waived, supplemented, restated or replaced from time to time, prior to the date hereof, the “Loan and Servicing Agreement”); and

WHEREAS, the parties hereto desire to amend the Loan and Servicing Agreement in accordance with the provisions thereof and subject to the terms and conditions set forth herein.

NOW THEREFORE, in consideration of the foregoing premises and the mutual agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

ARTICLE I

Definitions

SECTION 1.1.        Defined Terms.  Terms used but not defined herein have the respective meanings given to such terms in the Loan and Servicing Agreement.

ARTICLE II

Amendments to Loan and Servicing Agreement and Schedules 

SECTION 2.1.        As of the Amendment Effective Date, the Loan and Servicing Agreement is hereby amended to delete the stricken text (indicated textually in the same manner 

as the following example: stricken text) and to add the bold and double-underlined text (indicated textually in the same manner as the following example: bold and double-underlined text) as set forth on the pages attached as Appendix A hereto.

SECTION 2.2.        As of the Amendment Effective Date, the Schedules are hereby amended to delete the stricken text (indicated textually in the same manner as the following example: stricken text) and to add the bold and double-underlined text (indicated textually in the same manner as the following example: bold and double-underlined text) as set forth on the pages attached as Appendix B hereto.

ARTICLE III

Representations and Warranties

SECTION 3.1.        Each of the Borrower and the Servicer hereby represents and warrants (as to itself) to the Agent that, as of the date first written above, (i) no Unmatured Event of Default, Event of Default or Servicer Termination Event has occurred and is continuing and (ii) the representations and warranties of the Borrower and the Servicer contained in the Loan and Servicing Agreement are true and correct in all material respects on and as of such day (other than any representation and warranty that is made as of a specific date).

ARTICLE IV

Conditions Precedent

SECTION 4.1.        This Amendment shall become effective as of the date hereof upon:

(a)the execution and delivery of this Amendment by each party hereto;

(b)the Agent shall have received satisfactory evidence that the Borrower has obtained all required consents and approvals of all Persons to the execution, delivery and performance of this Amendment and the consummation of the transactions contemplated hereby;

(c)the Lenders shall have received the executed legal opinion or opinions of Latham & Watkins LLP, and any applicable local counsel to the Borrower, in form and substance acceptable to the Agent in its reasonable discretion;

(d)each of the Agent and the Lender have received all fees due and payable to such Person; and 

(e)the Agent shall have received, with a copy for each Lender, certificates dated as of a recent date from the Secretary of State or other appropriate authority, evidencing the good standing of the Borrower.

2

ARTICLE V

Miscellaneous

SECTION 5.1.        Governing Law. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

SECTION 5.2.        Severability Clause.    In case any provision in this Amendment shall be invalid, illegal or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

SECTION 5.3.        Ratification.  Except as expressly amended hereby, the Loan and Servicing Agreement is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect.  This Amendment shall form a part of the Loan and Servicing Agreement for all purposes.

SECTION 5.4.        Counterparts.  The parties hereto may sign one or more copies of this Amendment in counterparts, all of which together shall constitute one and the same agreement.  Delivery of an executed signature page of this Amendment by facsimile or email transmission shall be effective as delivery of a manually executed counterpart hereof.

SECTION 5.5.        Headings.  The headings of the Articles and Sections in this Amendment are for convenience of reference only and shall not be deemed to alter or affect the meaning or interpretation of any provisions hereof.

SECTION 5.6.        Direction to Execute.  The Lenders hereby authorize and direct the Trustee, the Bank and the Collateral Custodian to execute this Amendment and acknowledge and agree that the Trustee, the Bank and the Collateral Custodian shall be entitled to all of their rights, benefits, protections, immunities and indemnities set forth in the Loan and Servicing Agreement. By their signatures hereto, each of the parties acknowledges and agrees to the assignment by U.S. Bank National Association of its rights, interests and obligations as Trustee under the Transaction Documents to U.S. Bank Trust Company, National Association. 

SECTION 5.7.        Execution. The words “execution,” “signed,” “signature,” “delivery,” and words of like import in or relating to this Amendment or any document to be signed in connection with this Amendment and the transactions contemplated hereby shall be deemed to include electronic signatures, deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other state laws based on the Uniform Electronic Transactions Act, and the parties hereto consent to conduct the transactions contemplated hereunder by electronic means.

[Signature Pages Follow]

3

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

									
			ARES CAPITAL CP FUNDING LLC

			
			
			
		By:
	/s/ Joshua Bloomstein

		Name:
	Joshua Bloomstein

		Title:
	Authorized Signatory

[Signature Page to Amendment No. 16 to LSA]

                                  
									
			ARES CAPITAL CORPORATION,

			as the Servicer
			
			
		By:
	/s/ Joshua Bloomstein

		Name:
	Joshua Bloomstein

		Title:
	Authorized Signatory

			
			

[Signature Page to Amendment No. 16 to LSA]

									
			WELLS FARGO BANK NATIONAL ASSOCIATION, as the Agent

			
			
			
		By:
	/s/ Steve Sebo

		Name:
	Steve Sebo
		Title:
	Director

[Signature Page to Amendment No. 16 to LSA]

									
			WELLS FARGO BANK, NATIONAL ASSOCIATION, as a Lender

			
			
			
		By:
	/s/ Steve Sebo

		Name:
	Steve Sebo
		Title:
	Director

[Signature Page to Amendment No. 16 to LSA]

									
			BANK OF AMERICA, N.A., as a Lender

			
			
			
		By:
	/s/ Bryson Brannon

		Name:
	Bryson Brannon
		Title:
	Director

[Signature Page to Amendment No. 16 to LSA]

									
			CANADIAN IMPERIAL BANK OF COMMERCE, as a Lender

			
			
			
		By:
	/s/ Kathryn Lagroix

		Name:
	Kathryn Lagroix
		Title:
	Managing Director

[Signature Page to Amendment No. 16 to LSA]

															
			U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Trustee

			
			
		By:
	/s/ Ralph J. Creasia, Jr.
	
		Name:
	Ralph J. Creasia, Jr.	
		Title:
	Senior Vice President
	

															
			U.S. BANK NATIONAL ASSOCIATION, as Bank

			
			
		By:
	/s/ Ralph J. Creasia, Jr.
	
		Name:
	Ralph J. Creasia, Jr.	
		Title:
	Senior Vice President
	

															
			U.S. BANK NATIONAL ASSOCIATION, as Collateral Custodian

			
			
		By:
	/s/ Kenneth Brandt
	
		Name:
	Kenneth Brandt	
		Title:
	Vice President
	

[Signature Page to Amendment No. 16 to LSA]

															
			SAMPENSION LIVSFORSIKRING A/S, as a Lender

			
			
		By:
	/s/ Henrik Arnt
	
		Name:
	Henrik Arnt
	
		Title:
	Senior Portfolio Manager
	
					
					
		By:
	/s/ Jesper Damkjaer
	
		Name:
	Jesper Damkjaer
	
		Title:
	Senior Portfolio Manager - Credit
	
					

[Signature Page to Amendment No. 16 to LSA]

															
			ARKITEKTERNES PENSIONSKASSE, as a Lender

			
			
		By:
	/s/ Henrik Arnt
	
		Name:
	Henrik Arnt
	
		Title:
	Senior Portfolio Manager
	
					
					
		By:
	/s/ Jesper Damkjaer
	
		Name:
	Jesper Damkjaer
	
		Title:
	Senior Portfolio Manager - Credit
	
					

[Signature Page to Amendment No. 16 to LSA]

															
			PENSIONSKASSEN FOR JORDBRUGSAKADEMIKERE OG DYRLÆGER, as a Lender

			
			
		By:
	/s/ Henrik Arnt
	
		Name:
	Henrik Arnt
	
		Title:
	Senior Portfolio Manager
	
					
					
		By:
	/s/ Jesper Damkjaer
	
		Name:
	Jesper Damkjaer
	
		Title:
	Senior Portfolio Manager - Credit
	
					

[Signature Page to Amendment No. 16 to LSA]

APPENDIX A

EXHIBIT A

EXECUTION VERSION
                                                   Conformed through Amendment No. 1516

			
	

Up to U.S. $ 1,525,000,0001,775,000,000

LOAN AND SERVICING AGREEMENT

Dated as of January 22, 2010

Among

ARES CAPITAL CP FUNDING LLC, 
as the Borrower

and

ARES CAPITAL CORPORATION, 
as the Servicer and the Transferor

and

WELLS FARGO BANK, NATIONAL ASSOCIATION, 
as the Agent and the Swingline Lender

and

EACH OF THE LENDERS FROM TIME TO TIME PARTY HERETO, 
as the Lenders

and

U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, 
as the Trustee

and

U.S. BANK NATIONAL ASSOCIATION,
as the Bank and the Collateral Custodian, Trustee and the Bank

			
	

ARTICLE I. DEFINITIONS									
	SECTION 1.01 Certain Defined Terms		2 	
	SECTION 1.02 Other Terms		60  56

	SECTION 1.03 Computation of Time Periods		60  56

	SECTION 1.04 Interpretation		60  56

ARTICLE II. THE FACILITY									
	SECTION 2.01  Advances		61 58

	SECTION 2.02  Procedure for Advances		63 60

	SECTION 2.03  Determination of Yield
		64 61

	SECTION 2.04 Remittance Procedures
		65 62

	SECTION 2.05  Instructions to the Trustee and the Bank
		69 66

	SECTION 2.06  Borrowing Base Deficiency Payments
		69 66

	SECTION 2.07  Substitution and Sale of Loan Assets; Affiliate Transactions
		70 67

	SECTION 2.08  Payments and Computations, Etc
		75 72

	SECTION 2.09  Fees		77 74

	SECTION 2.10  Increased Costs; Capital Adequacy
		77 74

	SECTION 2.11  Taxes
		79 76

	SECTION 2.12  Collateral Assignment of Agreements
		81 78

	SECTION 2.13  Grant of a Security Interest
		82 79

	SECTION 2.14  Evidence of Debt
		82 79

	SECTION 2.15  Survival of Representations and Warranties
		82 79

	SECTION 2.16  Release of Loan Assets
		83 79

	SECTION 2.17  Treatment of Amounts Received by the Borrower
		83 80

	SECTION 2.18  Prepayment; Termination
		83 80

	SECTION 2.19  Extension of Stated Maturity Date and Reinvestment Period
		84 81

	SECTION 2.20  Collections and Allocations
		84 81

	SECTION 2.21  Reinvestment of Principal Collections
		86 83

	SECTION 2.22  Additional Lenders; Increase of Commitment
		86 83

	SECTION 2.23  Defaulting Lenders
		87 84

	SECTION 2.24  Mitigation Obligations; Replacement of Lenders
		89 86

	SECTION 2.25  Refunding of Swingline Advances
		90 87

	SECTION 2.26  Effect of Benchmark Transition Event
		91

ARTICLE III. CONDITIONS PRECEDENT									
	SECTION 3.01  Conditions Precedent to Effectiveness
		93 88

	SECTION 3.02  Conditions Precedent to All Advances
		94 83

	SECTION 3.03  Advances Do Not Constitute a Waiver
		96 91

	SECTION 3.04  Conditions to Pledges of Loan Assets
		96 91

ARTICLE IV. REPRESENTATIONS AND WARRANTIES
									
	SECTION 4.01  Representations and Warranties of the Borrower
		98 92

	SECTION 4.02  Representations and Warranties of the Borrower Relating to the Agreement and the Collateral Portfolio
		106 101

	SECTION 4.03  Representations and Warranties of the Servicer
		107 102

	SECTION 4.04  Representations and Warranties of the Trustee
		111 106

	SECTION 4.05  Representations and Warranties of the each Lender
		112 107

	SECTION 4.06  Representations and Warranties of the Collateral Custodian
		112 107

ARTICLE V. GENERAL COVENANTS									
	SECTION 5.01  Affirmative Covenants of the Borrower
		113 108

	SECTION 5.02  Negative Covenants of the Borrower
		120 115

	SECTION 5.03  Affirmative Covenants of the Servicer
		124 118

	SECTION 5.04  Negative Covenants of the Servicer
		129 123

	SECTION 5.05  Affirmative Covenants of the Trustee
		130 125

	SECTION 5.06  Negative Covenants of the Trustee
		131 125

	SECTION 5.07  Affirmative Covenants of the Collateral Custodian
		131 125

	SECTION 5.08  Negative Covenants of the Collateral Custodian
		131 126

	SECTION 5.09  Covenants of the Borrower Relating to Hedging of Loan Assets
		131 126

ARTICLE VI. ADMINISTRATION AND SERVICING OF CONTRACTS

									
	SECTION 6.01  Appointment and Designation of the Servicer
		133 127

	SECTION 6.02  Duties of the Servicer
		135 129

	SECTION 6.03  Authorization of the Servicer
		137 132

	SECTION 6.04  Collection of Payments; Accounts
		138 126

	SECTION 6.05  Realization Upon Loan Assets
		139 134

	SECTION 6.06  Servicing Compensation
		140 134

	SECTION 6.07  Payment of Certain Expenses by Servicer
		140 135

	SECTION 6.08 Reports to the Agent; Account Statements; Servicing Information
		141 135

	SECTION 6.09  Annual Statement as to Compliance
		143 137

	SECTION 6.10  Annual Independent Public Accountant’s Servicing Reports
		143 137

	SECTION 6.11  The Servicer Not to Resign
		144 138

			

ARTICLE VII. EVENTS OF DEFAULT									
	SECTION 7.01  Events of Default
		144 138

	SECTION 7.02  Additional Remedies of the Agent
		148 142

ARTICLE VIII. INDEMNIFICATION
									
	SECTION 8.01  Indemnities by the Borrower
		151 146

	SECTION 8.02  Indemnities by Servicer
		154 149

	SECTION 8.03  Legal Proceedings
		156 151

	SECTION 8.04  After-Tax Basis
		157 151

	SECTION 8.05  Benefit of Indemnity
		157 152

ARTICLE IX. THE AGENT
									
	SECTION 9.01 The Agent
		157  152

			

ARTICLE X. TRUSTEE
									
	SECTION 10.01  Designation of Trustee
		162 158

	SECTION 10.02  Duties of Trustee
		162 158

	SECTION 10.03  Merger or Consolidation
		164 160

	SECTION 10.04  Trustee Compensation
		164 160

	SECTION 10.05  Trustee Removal
		164 161

	SECTION 10.06  Limitation on Liability
		165 161

	SECTION 10.07  Trustee Resignation
		166 163

ARTICLE XI. MISCELLANEOUS
									
	SECTION 11.01  Amendments and Waivers
		167  163

	SECTION 11.02  Notices, Etc
		168  165

	SECTION 11.03  No Waiver; Remedies
		171  168

	SECTION 11.04  Binding Effect; Assignability; Multiple Lenders
		172  169

	SECTION 11.05  Term of This Agreement
		173  170

	SECTION 11.06  GOVERNING LAW; JURY WAIVER
		173  170

			
	SECTION 11.07  Costs, Expenses and Taxes
		173  170

	SECTION 11.08  No Proceedings
		174  171

	SECTION 11.09  Recourse Against Certain Parties
		174  171

	SECTION 11.10  Execution in Counterparts; Severability; Integration
		175  172

	SECTION 11.11  Consent to Jurisdiction; Service of Process
		176  173

	SECTION 11.12  Characterization of Conveyances Pursuant to the Purchase and Sale Agreement
		176  173

	SECTION 11.13  Confidentiality
		178  175

	SECTION 11.14  Acknowledgement and Consent to Bail-In of EEA Financial Institutions
		179  176

	SECTION 11.15  Waiver of Set Off
		180  177

	SECTION 11.16  Headings and Exhibits
		180  177

	SECTION 11.17  Ratable Payments
		180  177

	SECTION 11.18  Breaches of Representations, Warranties and Covenants
		181  178

	SECTION 11.19 Assignments of Loan Assets
		181  178

	SECTION 11.20  Affirmation
		181  178

	SECTION 11.21 Covered Transactions
		182  179

ARTICLE XII. COLLATERAL CUSTODIAN
									
	SECTION 12.01  Designation of Collateral Custodian
		182  179

	SECTION 12.02  Duties of Collateral Custodian
		182  179

	SECTION 12.03  Merger or Consolidation
		185  182

	SECTION 12.04  Collateral Custodian Compensation
		185  182

	SECTION 12.05  Collateral Custodian Removal
		185  182

	SECTION 12.06  Limitation on Liability
		186  183

	SECTION 12.07  Collateral Custodian Resignation
		187  184

	SECTION 12.08  Release of Documents
		187  184

	SECTION 12.09  Return of Required Loan Documents
		188  185

	SECTION 12.10 Access to Certain Documentation and Information Regarding the Collateral Portfolio; Audits of Servicer
		188  185

	SECTION 12.11  Custodian as Agent of Trustee
		189  186

	SECTION 12.12  Recognition of the U.S. Special Resolution Regimes
		189  186

This LOAN AND SERVICING AGREEMENT (as amended, restated, supplemented or modified from time to time, the “Loan and Servicing Agreement”) is made as of January 22, 2010, among:

(1)ARES CAPITAL CP FUNDING LLC, a Delaware limited liability company (together with its successors and assigns in such capacity, the “Borrower”);

(2)ARES CAPITAL CORPORATION, a Maryland corporation, as the Servicer (as defined herein) and the Transferor (as defined herein);

(3)WELLS FARGO BANK, NATIONAL ASSOCIATION, as agent (together with its successor and assigns in such capacity, the “Agent”) and as swingline lender (together with its successor and assigns in such capacity, the “Swingline Lender”);

(4)EACH OF THE LENDERS FROM TIME TO TIME PARTY HERETO, as a Lender; and

(5)U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION (“U.S. Bank”), as the Trustee (together with its successors and assigns in such capacity, the “Trustee”); and

(6)U.S. BANK NATIONAL ASSOCIATION, as the Bank (as defined herein) and the Collateral Custodian (together with its successors and assigns in such capacity, the “Collateral Custodian”).

PRELIMINARY STATEMENT

WHEREAS, certain parties hereto were party to a Sale and Servicing Agreement, dated as of November 3, 2004, by and among the Servicer, as the servicer, the Transferor, as the originator, the Borrower, as the borrower, Ares CP Funding II LLC, as the guarantor, Variable Funding Capital Company LLC (“VFCC”), as a conduit purchaser, the Note Purchaser, as an institutional purchaser, Wells Fargo Securities, LLC (f/k/a Wachovia Capital Markets, LLC) (together with its successors and assigns, “WFS”), as the administrative agent and as the purchaser agent for VFCC, Ares Capital CP Funding II, as the guarantor (the “Guarantor”) the Trustee, as the trustee, and Lyon Financial Services, Inc. d/b/a U.S. Bank Portfolio Services (“Lyon”), as the backup servicer (as amended, restated, supplemented or modified prior to the date hereof, the “Original Agreement”);

WHEREAS, certain parties hereto are party to an Amended and Restated Sale and Servicing Agreement, dated as of January 22, 2010, by and among the Servicer, as the servicer, the Transferor as the originator, the Borrower, as the borrower, Wells Fargo Bank, National Association, in its individual capacity (together with its successors and assigns, “Wells Fargo”), as the note purchaser, WFS, as the administrative agent, and U.S. Bank, as the collateral custodian, trustee and bank (as amended, restated, supplemented or modified prior to the date hereof, (the “Restatement Agreement”) that amended and restated the Original Agreement;

control by, a common Financial Sponsor; provided, further, that, for the purposes of Section 2.07(b), Section 2.07(g), Section 4.01(ii), Section 4.03(q), Section 5.01(p) and Section 5.03(j) of this Agreement, as well as Section 4.1(ii) and Section 5.2(j)(v) of each of the Purchase and Sale Agreements, the term “Affiliate” shall not include any Excluded Affiliate.

“Agent” means Wells Fargo, in its capacity as agent for the Lenders, together with its successors and assigns, including any successor appointed pursuant to Article IX.

“Agent Fee” means the “agent fee” set forth in the Wells Fargo Fee Letter. 
Agented Note” means any Loan Asset (i) originated as a part of a syndicated loan transaction that has been closed (without regard to any contemporaneous or subsequent syndication of such Loan Asset) prior to such Loan Asset becoming part of the Collateral Portfolio and (ii) with respect to which, upon an assignment of the note under the Purchase and Sale Agreements to the Borrower, the Borrower, as assignee of the note, will have all of the rights but none of the obligations of the Transferor with respect to such note and the Underlying Collateral.

“Aggregate Funded Coupon” means, as of any date of determination, the sum of, for each Eligible Loan Asset included in the Collateral Portfolio that is a Fixed Rate Loan Asset, the product of (i) the current per annum rate at which such Eligible Loan Asset provides payment of interest in cash (including, for any PIK Loan Asset, only the required current cash pay interest rate thereon) multiplied by (ii) the Adjusted Borrowing Value of such Eligible Loan Asset.

“Aggregate Funded Spread” means, as of any date of determination, the sum of:

(a)in the case of each Eligible Loan Asset (other than any Floor Obligation) included in the Collateral Portfolio that is a Floating Rate Loan Asset that bears interest at a spread over the Ares LIBOR Rateapplicable Benchmark, (i) the stated interest rate spread on such Eligible Loan Asset (including, for any PIK Loan Asset, only the required current cash pay interest rate thereon) above the Ares LIBOR Rateapplicable Benchmark on such date multiplied by (ii) the Adjusted Borrowing Value of such Eligible Loan Asset; and

(b)in the case of each Floor Obligation included in the Collateral Portfolio and each other Eligible Loan Asset included in the Collateral Portfolio that is a Floating Rate Loan Asset that bears interest at a spread over an index other than the Ares LIBOR Rateapplicable Benchmark, (i) the excess of the sum of such spread and such index (including in the case of each Floor Obligation, the “floor” rate) on such Eligible Loan Asset (including, for any PIK Loan Asset, only the required current cash pay interest rate thereon) above the Ares LIBOR Rateapplicable Benchmark on such date multiplied by (ii) the Adjusted Borrowing Value of such Eligible Loan Asset.

“Agreement” means this Loan and Servicing Agreement, as the same may be amended, restated, supplemented and/or otherwise modified from time to time hereafter.

“Announcements” has the meaning specified in Section 2.26(f).

“Anti-Corruption Laws” means (a) the U.S. Foreign Corrupt Practices Act of 1977, as amended; (b) the U.K. Bribery Act 2010, as amended; and (c) any other anti-bribery or 
									
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anti-corruption laws, regulations or ordinances in any jurisdiction in which the Borrower, the Servicer, the Transferor or any of their respective Subsidiaries is located or doing business.

“Anti-Money Laundering Laws” means Applicable Law in any jurisdiction in which the Borrower, the Servicer, the Transferor or any of their respective Subsidiaries are located or doing business that relates to money laundering or terrorism financing, any predicate crime to money laundering, or any financial record keeping and reporting requirements related thereto.

“Applicable Law” means for any Person all existing and future laws, rules, regulations (including proposed, temporary and final income tax regulations), statutes, treaties, codes, ordinances, permits, certificates, orders, licenses of and interpretations by any Governmental Authority which are applicable to such Person (including, without limitation, predatory lending laws, usury laws, the Federal Truth-in-Lending Act, the Equal Credit Opportunity Act, the Fair Credit Billing Act, the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, the Federal Trade Commission Act, the Magnuson-Moss Warranty Act, the Federal Reserve Board’s Regulations “B” and “Z”, the Servicemembers Civil Relief Act of 2003 and state adaptations of the National Consumer Act and of the Uniform Consumer Credit Code and all other consumer credit laws and equal credit opportunity and disclosure laws) 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 Percentage” means (a) with respect to any First Lien Loan Asset, 70%, (b) with respect to any First Lien Last Out Loan Asset, 55% and (c) with respect to any Second Lien Loan Asset, 35%.

“Applicable Prime Rate” means, with respect to any Loan, the prime or base rate applicable to such Loan pursuant to the Loan Agreements for such Loan.

“Applicable Spread” means, for any date of determination, from and including the Fifteenth Amendment Effective Date, in the event that the Yield Rate is calculated utilizing LIBOR or the Benchmark Replacement, 1.90% per annum, and in the event that the Yield Rate is calculated utilizing the Base Rate, 1.001.90% per annum.

“Approval Notice” means, with respect to any Eligible Loan Asset, the written notice, in substantially the form attached hereto as Exhibit A, evidencing the approval by the Agent, in its sole discretion, of the conveyance of such Eligible Loan Asset by the Transferor to the Equityholder pursuant to the terms of the First Tier Purchase and Sale Agreement and by the Equityholder to the Borrower pursuant to the terms of the Second Tier Purchase and Sale Agreement and the Assignments by which the Transferor effects such conveyance.

“Approved Lender” means any prospective Lender that acting, for its own account, in the aggregate owns and invests on a discretionary basis, not less than $25,000,000 in investments.

“Ares” means Ares Capital Corporation.

“Ares Competitor” means, as of any date, (1) any Person that (a) is a business development company under the 1940 Act as of such date or (b) has filed with the Securities and Exchange Commission to become a business development company under the 1940 Act as of 
									
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such date or (2) any investment platform that is primarily engaged in the business of originating, acquiring, managing or investing in middle market loans as of such date which, for the avoidance of doubt, would include the individual business units of the companies set forth on Schedule VI that specialize in the business of originating, acquiring, managing or investing in middle market loans as of such date.

“Ares LIBOR Rate” means, with respect to any Loan Asset, the definition of “LIBOR Rate” or any comparable definition in the Loan Agreement for each such Loan Asset, and in any case that “LIBOR Rate” or such comparable definition is not defined in such Loan Agreement, the rate per annum appearing on Reuters Screen LIBOR01 Page (or on any successor or substitute page of such service, or any successor to or substitute for such service, providing rate quotations comparable to those currently provided on such page of such service, as determined by the Agent from time to time for purposes of providing quotations of interest rates applicable to dollar deposits in the London interbank market) at approximately 11:00 a.m., London time for such day, provided, if such day is not a Business Day, the immediately preceding Business Day, as the rate for dollar deposits with a one-month, a two-month or a three-month maturity, as applicable, as and when determined in accordance with the applicable Loan Agreement.

“Ares Prime Rate” means, with respect to any Loan Asset, the definition of “Prime Rate” or any comparable definition in the Loan Agreement for each such Loan Asset, and in any case that “Prime Rate” or such comparable definition is not defined in such Loan Agreement, the rate designated by certain reference lenders in the applicable Loan Agreement from time to time as its prime rate in the United States, such rate to change as and when the designated rate changes; provided that the Ares Prime Rate is not intended to be lowest rate of interest charged by Ares in connection with extensions of credit to debtors.

“Asset Coverage Ratio” means the ratio, determined on a consolidated basis, without duplication, in accordance with GAAP, of (a) the value of the total assets of Ares and its Subsidiaries, less all liabilities (other than outstanding Indebtedness, including outstanding Indebtedness hereunder) of Ares and its Subsidiaries, to (b) the aggregate amount of Indebtedness of Ares and its Subsidiaries. For purposes of calculating the Asset Coverage Ratio, Indebtedness of an SBIC Subsidiary outstanding as of the date of such calculation shall be excluded from the calculation of the Asset Coverage Ratio to the extent and in the manner that such Indebtedness may be excluded from the asset coverage requirements of sections 18(a) and 61(d) of the Investment Company Act pursuant to an effective exemptive order issued by the US Securities and Exchange Commission.

“Asset Specific Hedge” means any interest rate exchange agreement between the Borrower and a Hedge Counterparty that is entered into by the Borrower in connection with the purchase or holding of a Fixed Rate Loan Asset or a Floating Rate Loan Asset.

“Asset Specific Hedged Loan Asset” means any Loan Asset for which the Borrower has entered into an Asset Specific Hedge. If an Asset Specific Hedge effectively provides for the conversion of a fixed rate of interest under the related Loan Asset to a floating rate of interest, such Loan Asset will, for all purposes under this Agreement, (i) be considered a Floating Rate Loan Asset and (ii) be deemed to pay interest at a floating rate equal to the implied spread over LIBORthe applicable Benchmark to be received by the Borrower under such Asset Specific Hedge. If an Asset Specific Hedge effectively provides for the conversion of a floating rate of interest under the related Loan Asset to a fixed rate of interest, such Loan Asset will, for 
									
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all purposes under this Agreement, (a) be considered a Fixed Rate Loan Asset and (b) be deemed to pay interest at a fixed rate to be received by the Borrower under the related Asset Specific Hedge.

“Assigned Documents” has the meaning assigned to that term in Section 2.12.

“Assigned Value” means, with respect to each Loan Asset, as of any date of determination and expressed as a percentage of the principal balance of such Loan Asset (exclusive of Accreted Interest), the lower of (x) the amount (not greater than par) paid by the Borrower to acquire such Loan Asset from the Equityholder (in each case, expressed exclusive of Accreted Interest) or (y) the value determined by the Agent, in its sole reasonable discretion, as of the applicable Cut-Off Date, subject to the following terms:

(a)If a Value Adjustment Event of the type described in clauses (i) through
(viix) of the definition thereof with respect to such Loan Asset occurs, the Assigned Value” may be amended at any time (provided that, after the initial amendment to the Assigned Value with respect to any Loan Asset, any additional amendment (other than an amendment as a result of the occurrence of a separate Value Adjustment Event) shall only be on a quarterly basis, after receipt by the Agent from the Servicer of the applicable financial information with respect to such Loan Asset), thereafter by the Administrative Agent, in its sole discretion.

(b)The Assigned Value of any Loan Asset may be increased at the sole reasonable discretion of the Agent upon improvement in the Net Leverage Ratio or the Interest Coverage Ratio of such Loan Asset, as the case may be, as part of a Value Adjustment Event. The Assigned Value of any Loan Asset whose Assigned Value is lower than 100% may be increased at the sole reasonable discretion of the Agent (i)(x) upon the cure of any Value Adjustment Event with respect to such Loan Asset or (y) if the Net Leverage Ratio for such Loan Asset is at least 0.75x lower than the Net Leverage Ratio calculated as of the applicable Cut-Off Date and (ii) upon the written request of the Borrower.

The Agent shall promptly notify the Servicer of any change effected by the Agent of the Assigned Value of any Loan Asset; provided that, solely with respect to the occurrence of a Value Adjustment Event of the type described in clause (i)(y) of the definition thereof, immediately after giving effect to any such reevaluation, the Assigned Value shall not be lower than such value that would result in the Facility Attachment Ratio for such Loan Asset (based upon such Loan Asset’s Senior Net Leverage Ratio or Net Leverage Ratio, as applicable) being

Benchmark or (y) otherwise, any payment period for interest calculated with reference to such Benchmark that is or may be used for determining the length of a Remittance Period pursuant to this Agreement as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark that is then-removed from the definition of “Remittance Period” pursuant to Section 2.2611.01.

“Average Life” means, for any Loan Asset, as of any date of determination, the number determined by multiplying the amount of each Scheduled Payment of principal to be paid after such date of determination by the number of years (rounded to the nearest hundredth) from such date of determination until such Scheduled Payment of principal is due.

“Bail-In Action” has the meaning assigned to that term in Section 11.14. “Bail-In Legislation” has the meaning assigned to that term in Section 11.14.
									
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“Bank” means U.S. Bank National Association, in its capacity as the “Bank” pursuant to each of the Collection Account Agreement and the Unfunded Exposure Account Agreement.

“Bankruptcy Code” means Title 11, United States Code, 11 U.S.C. §§ 101 et seq., as amended from time to time.

“Bankruptcy Event” shall be deemed to have occurred with respect to a Person if

either:

(i)a case or other proceeding shall be commenced, without the application or consent of such Person, in any court, seeking the liquidation, reorganization, debt arrangement, dissolution, winding up, or composition or readjustment of debts of such Person, the appointment of a trustee, receiver, custodian, liquidator, assignee, sequestrator or the like for such Person or all or substantially all of its assets under any Bankruptcy Laws, or any similar action with respect to such Person, in each case, under any law relating to bankruptcy, insolvency, reorganization, winding up or composition or adjustment of debts, and such case or proceeding shall continue undismissed, or unstayed and in effect, for a period of 60 consecutive days; or an order for relief in respect of such Person shall be entered in an involuntary case under the federal bankruptcy laws or other similar laws now or hereafter in effect; or

(ii)such Person shall commence a voluntary case or other proceeding under any Bankruptcy Laws now or hereafter in effect, or shall consent to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other similar official) for such Person or all or substantially all of its assets under any Bankruptcy Laws, or shall make any general assignment for the benefit of creditors, or shall fail to, or admit in writing its inability to, pay its debts generally as they become due, or, if a corporation or similar entity, its board of directors or members shall vote to implement any of the foregoing.

“Bankruptcy Laws” means the Bankruptcy Code and all other applicable liquidation, conservatorship, bankruptcy, moratorium, rearrangement, receivership, insolvency, reorganization, suspension of payments, or similar debtor relief laws from time to time in effect affecting the rights of creditors generally.

“Bankruptcy Proceeding” means any case, action or proceeding before any court or other Governmental Authority relating to any Bankruptcy Event.

“Base Rate” means, on any date, a fluctuating per annum interest rate equal to the higher of (a) the Prime Rate or (b) the Federal Funds Rate plus 0.5%.

“Benchmark” means, initially, LIBORDaily Simple SOFR; provided that if a Benchmark Transition Event, a Term SOFR Transition Event, or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date have occurred with respect to LIBORDaily Simple SOFR or the applicable then-current Benchmark, then references to such “Benchmark” meansshall refer to the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to Section 2.2611.01.
									
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“Benchmark Replacement” means, for any Available Tenor:(a) with respect to any Benchmark Transition Event or Early Opt-in Election with respect to a then-current Benchmark, the first alternative set forth in the order below that can be determined by the Administrative Agent for the applicable Benchmark Replacement Date: (i) the sum of: (A) Term SOFR and (B) the related Benchmark Replacement Adjustment;

ii.the sum of: (A) Daily Simple SOFR and (B) the related Benchmark Replacement Adjustment;

iii.the sum of: (Aa) the alternate benchmark rate that has been selected by the Administrative Agent and the Borrower as the replacement for the then-current Benchmark for the applicable Corresponding Tenor giving due consideration to (i) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement for such Benchmark for Dollar-denominated syndicated credit facilities at such time and (B) the related Benchmark Replacement Adjustment; or

(b)  with respect to any Term SOFR Transition Event, the sum of (i) Term   SOFR and (iib) the related Benchmark Replacement Adjustment; provided that, (i) in the case of clause (a)(i), if, after consultation with the other Lenders, the Administrative Agent decides that Term SOFR is not administratively feasible for the Administrative Agent, then Term SOFR will be deemed unable to be determined for purposes of this definition and (ii) in the case of clause (a)(i) or clause (b) of this definition,if the applicable Unadjusted Benchmark Replacement is displayed on a screen or other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion. If the Benchmark Replacement as determined pursuant to clause (a)(i), (a)(ii) or (a)(iii) or clause (b) of this definitionas so determined would be less than the Floorzero, the Benchmark Replacement will be deemed to be the Floorzero for the purposes of this Agreement and the other Transaction Documents.

“Benchmark Replacement Adjustment” means, with respect to any replacement of anythe then-current Benchmark with an Unadjusted Benchmark Replacement for anyeach applicable Remittance Period and Available Tenor for any setting of such Unadjusted Benchmark Replacement:

(a)for purposes of clauses (a)(i) and (a)(ii) of the definition of “Benchmark Replacement,” the first alternative set forth in the order below that can be determined by the Administrative Agent:(i) , the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) as of the Reference Time such Benchmark Replacement is first set for such Remittance Period that has been selected or recommended by the Relevant Governmental Body for the replacement of such Available Tenor of such Benchmark with the applicable Unadjusted Benchmark Replacement;

(ii)     the spread adjustment (which may be a positive or negative value or zero) as of the Reference Time such Benchmark Replacement is first set for such Remittance Period that would apply to the fallback rate for a derivative transaction 
									
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referencing the ISDA Definitions to be effective upon an index cessation event with respect to such Available Tenor of such Benchmark;

(b)for purposes of clause (a)(iii) of the definition of “Benchmark Replacement,” the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Administrative Agent and the Borrower giving due consideration to (i) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Available Tenor of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body on the applicable Benchmark Replacement Date or (ii) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Available Tenor of such Benchmark with the applicable Unadjusted Benchmark Replacement for Dollar-denominated syndicated credit facilities; and

(c)for purposes of clause (b) of the definition of “Benchmark Replacement,” the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) as of the Reference Time such Benchmark Replacement is first set for such Remittance Period that has been selected or recommended by the Relevant Governmental Body for the replacement of such Available Tenor of such Benchmark Replacement with a SOFR-based rate;

provided that, (x) in the case of clause (a) above, such adjustment is displayed on a screen or other information service that publishes such Benchmark Replacement Adjustment from time to time as selected by the Administrative Agent in its reasonable discretion and (y) if such then-current Benchmark is a term rate, more than one tenor of such Benchmark is available as of the applicable Benchmark Replacement Date and the applicable Unadjusted Benchmark Replacement that will replace such Benchmark in accordance with Section 2.26 will not be a term rate, the Available Tenor of such Benchmark for purposes of this definition of “Benchmark

Replacement Adjustment” shall be deemed to be, with respect to each Unadjusted Benchmark Replacement having a payment period for interest calculated with reference thereto, the Available Tenor that has approximately the same length (disregarding business day adjustments) as such payment period at such time.

“Benchmark Replacement Conforming Changes” means with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of “Prime Rate,” the definition of “Ares LIBOR Rate,” the definition of “Ares Prime Rate,” the definition of “Federal Funds Rate,” the definition of “Remittance Period,” the definition of “Business Day”, the timing and frequency of determining rates and making payments of interest and other administrative matters) that the Agent, in consultation with the Borrower, decides may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by the Agent in a manner substantially consistent with market practice (or, if the Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Agent determines that no market practice for the administration of the Benchmark Replacement exists, in such other 
									
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manner of administration as the Agent, in consultation with the Borrower, decides is reasonably necessary in connection with the administration of this Agreement and the other Transaction Documents).

“Benchmark Replacement Date” means, the earliestearlier to occur of the following events with respect to anythe then-current Benchmark:

(a) (1) in the case of clause (a1) or (b2) of the definition of “Benchmark Transition Event,” the later of (ia) the date of the public statement or publication of information referenced therein and (iib) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide all Available Tenors of such Benchmark; (or such component thereof

(2);(b) in the case of clause (c3) of the definition of “Benchmark Transition Event,” the date of the public statement or publication of information referenced therein;

(c)in the case of a Term SOFR Transition Event, the date that is thirty (30) days after the Administrative Agent has provided the Term SOFR Notice to the Lenders and the Borrower pursuant to Section 2.26; and

(d)in the case of an Early Opt-in Election, the sixth (6th) Business Day after the date notice of such Early Opt-in Election is provided to the Lenders, so long as the Administrative Agent has not received, by 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the date notice of such Early Opt-in Election is provided to the Lenders, written notice of objection to such Early Opt-in Election from Lenders comprising the Required Lenders.

For the avoidance of doubt, (i) if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for such determination and (ii) the “Benchmark Replacement Date” will be

deemed to have occurred in the case of clause (a) or (b) with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof).

“Benchmark Transition Event” means, with respect to the then-current Benchmark, the occurrence of one or more of the following events with respect to any then-current Benchmark:

(a)(1) a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such administrator has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof);

(b)(2) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or, the published component used in the calculation thereof), theU.S. Federal Reserve Board, the Federal Reserve Bank of New YorkSystem, an 
									
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insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component), which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); or

(c)(3) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that all Available Tenors of such Benchmark (or such component thereof) areis no longer representative.

For the avoidance of doubt, a

“Benchmark Transition Event” will be deemed to have occurredStart Date” means, with respect to any Benchmark if, in the case of a related Benchmark Transition Event, the earlier of (i) the applicable Benchmark Replacement Date and (ii) if such Benchmark Transition Event is a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmarkof a prospective event, the 90th day prior to the expected date of such event as of such public statement or publication of information (or if the published component used in the calculation thereofexpected date of such prospective event is fewer than 90 days after such statement or publication, the date of such statement or publication).

“Benchmark Unavailability Period” means, with respect to any Benchmark, if a related Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to such Benchmark and solely to the extent that such Benchmark has not been replaced with a Benchmark Replacement, the period (if any) (x) beginning at the time that asuch Benchmark Replacement Date pursuant to clauses (a) or (b) of that definition has occurred if, at such time, no Benchmark Replacement has replaced the then-currentsuch Benchmark for all purposes hereunder and under any Transaction Document in accordance with Section 2.2611.01 and (y) ending at the time that a Benchmark Replacement has replaced the then-currentsuch Benchmark for all purposes hereunder and under any Transaction Document in accordance withpursuant to Section 2.2611.01.

“Beneficial Ownership Certification” means a certification regarding beneficial ownership required by the Beneficial Ownership Regulation, which certification shall be substantially similar in form and substance to the form of Certification Regarding Beneficial Owners of Legal Entity Customers published jointly, in May 2018, by the Loan Syndications and Trading Association and Securities Industry and Financial Markets Association.

“Beneficial Ownership Regulation” means 31 C.F.R. § 1010.230.

“Benefit Plan Investor” means a “benefit plan investor” as defined in Department of Labor regulation 29 C.F.R. Section 2510.3-101, as modified by Section 3(42) of ERISA, and includes an employee benefit plan that is subject to the fiduciary responsibility provisions of Title I of ERISA, a plan that is subject to Section 4975 of the Code, and an entity the underlying assets of which are deemed to include plan assets.
									
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“BHC Act Affiliate” means the meaning assigned to the term “affiliate” in, and shall be interpreted in accordance with, 12 U.S.C. § 1841(k).

“Borrower” has the meaning assigned to that term in the preamble hereto.
“Borrowing Base” means, as of any date of determination, an amount equal to the
lesser of:

(a)(i) the product of (A) the Weighted Average Applicable Percentage as of
such date and (B) the aggregate Adjusted Borrowing Value of all Eligible Loan Assets as of such date minus the Excess Concentration Amount, plus (ii) the amount on deposit in the Principal Collection Account as of such date, minus (iii) the Unfunded Exposure Equity Shortfall; or

(b)(i) the aggregate Adjusted Borrowing Value of all Eligible Loan Assets as of such date, minus (ii) the Minimum Required Equity Amount, minus (iii) the Excess Concentration Amount, plus (iv) the amount on deposit in the Principal Collection Account as of such date, minus (v) the Unfunded Exposure Equity Shortfall; or

(c)the Maximum Facility Amount minus the Unfunded Exposure Amount;

provided that, for the avoidance of doubt, any Loan Asset which at any time is no longer an Eligible Loan Asset shall not be included in the calculation of “Borrowing Base”.

“Borrowing Base Certificate” means a certificate setting forth the calculation of the Borrowing Base as of the applicable date of determination substantially in the form of Exhibit C hereto, prepared by the Servicer.

“Borrowing Base Deficiency” means, as of any date of determination, the extent to which the aggregate Advances Outstanding on such date exceeds the Borrowing Base.

“Breakage Fee” means, for Advances which are repaid (in whole or in part) on any date other than a Payment Date, the breakage costs, if any, related to such repayment, it hereby being understood that the amount of any loss, costs or expense payable by the Borrower to any Lender as Breakage Fee shall be determined in the respective Lender’s reasonable discretion based upon the assumption that such Lender funded its loan commitment in the London Interbank Eurodollar market and using any reasonable attribution or averaging methods which such Lender deems appropriate and practical.

“Business Day” means a day of the year other than (i) Saturday or a Sunday, (ii) any other day on which commercial banks in New York, New York or the city in which the offices of the Trustee or the Collateral Custodian (as set forth in Section 11.02 hereunder) are authorized or required by Applicable Law, regulation or executive order to close or (iii) any day that is not a TARGET Day; provided that, if any determination of a Business Day shall relate to an Advance bearing interest at LIBORa Benchmark, the term “Business Day” shall also exclude any day on which banks are not open for dealings in dollar deposits in the London interbank 
									
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market. For avoidance of doubt, if the offices of the Trustee are authorized by Applicable Law, regulation or executive order to close but remain open, such day shall not be a “Business Day”.

“Buyers” has the meaning assigned to that term in the definition of “Acquisition
Agreement”.

“Capital Lease Obligations” means, with respect to any entity, the obligations of
such entity to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as capital leases on a balance sheet of such entity under GAAP, and the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP.

“Change of Control” shall be deemed to have occurred if any of the following

occur:

(a)the Management Agreement shall fail to be in full force and effect;

(b)the creation or imposition of any Lien on any limited liability company membership interest in the Borrower (other than pursuant to the Pledge Agreement);

(c)the failure by the Transferor to own 100% of the limited liability company membership interests in the Equityholder;

(d)the failure by the Equityholder to own 100% of the limited liability company membership interests in the Borrower; or

(e)the dissolution, termination or liquidation in whole or in part, transfer or other disposition, in each case, of all or substantially all of the assets of, Ares, that does not comply with the provisions of Section 5.04(a) of this Agreement.

“Closing Date” means November 3, 2004.

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

“Collateral Custodian” means U.S. Bank National Association, not in its individual capacity, but solely as collateral custodian pursuant to the terms of this Agreement. Solely when used with respect to the custody of “certificated securities”, the Collateral Custodian means U.S. Bank Trust Company, National Association, not in its individual capacity, but solely as collateral custodian pursuant to the terms of this Agreement.

“Collateral Custodian Expenses” means the custodial expenses set forth in the Trustee and Collateral Custodian Fee Letter and any other accrued and unpaid fees, expenses (including reasonable attorneys’ fees, costs and expenses) and indemnity amounts payable by the Borrower or the Servicer to the Collateral Custodian under the Transaction Documents.

“Collateral Custodian Fees” means the custodial fees set forth in the Trustee and Collateral Custodian Fee Letter, as such fee letter may be amended, restated, supplemented and/or otherwise modified from time to time.
									
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“Collateral Custodian Termination Notice” has the meaning assigned to that term in Section 12.05.

“Collateral Portfolio” means all right, title, and interest (whether now owned or hereafter acquired or arising, and wherever located) of the Borrower in the property identified below in clauses (i) through (v) and all accounts, cash and currency, chattel paper, tangible chattel paper, electronic chattel paper, copyrights, copyright licenses, equipment, fixtures, contract rights, general intangibles, instruments, certificates of deposit, certificated securities, uncertificated securities, financial assets, securities entitlements, commercial tort claims, deposit accounts, inventory, investment property, letter-of-credit rights, software, supporting obligations, accessions, or other property consisting of, arising out of, or related to any of the following (in each case excluding the Retained Interest and the Excluded Amounts):

(i)the Loan Assets, and all monies due or to become due in payment under such Loan Assets on and after the related Cut-Off Date, including, but not limited to, all Available Collections, but excluding any related Attached Equity;

Specific Hedged Loan Assets shall be considered Fixed Rate Loan Assets or Floating Rate Loan Assets, as applicable, as provided in the definition thereof;

(vi)the aggregate Adjusted Borrowing Value of all Eligible Loan Assets that pay interest in cash less frequently than quarterly shall not exceed 15% of the aggregate Adjusted Borrowing Value of all Eligible Loan Assets;

(vii)the aggregate Outstanding Balances and Exposure Amounts of all Eligible Loan Assets that are Revolving Loan Assets and the Exposure Amounts of Eligible Loan Assets that are Delayed Draw Loan Assets shall not exceed 10% of the aggregate Adjusted Borrowing Value of all Eligible Loan Assets;

(viii)the aggregate Adjusted Borrowing Value of all Eligible Loan Assets that are Partial PIK Loan Assets shall not exceed 10% of the aggregate Adjusted Borrowing Value of all Eligible Loan Assets; and

(ix)the aggregate Adjusted Borrowing Value of all Eligible Loan Assets that are Participation Interests shall not exceed (i) during the Acquisition Participation Elevation Period, 10.0% and (ii) thereafter, 0.0%.

“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise.

“Controlled Accounts” means the Collection Account and the Unfunded Exposure Account.

“Corresponding Tenor” means, with respect to any Available Tenor, as applicable, either a tenor (including overnight) or an interest payment period having approximately the same length (disregarding business day adjustment) as such Available Tenor.

									
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“Covered Party” means any Secured Party that is one of the following: (i) a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R.
§252.82(b); (ii) a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. §47.3(b), or any subsidiary of such a covered bank to which 12 C.F.R. Part 47 applies in accordance with 12 C.F.R. §47.3(b); or (iii) a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. §382.2(b).

“Cut-Off Date” means, with respect to each Loan Asset, the date such Loan Asset is Pledged hereunder.

“Daily Simple SOFR” means, for any day, SOFR, with the conventions for this rate (which will include a lookback) being established by the Administrative Agent in accordance with the conventions for this rate selected or recommended by the Relevant Governmental Body for determining “Daily Simple SOFR” for syndicated business loans; provided, that if the Administrative Agent decides that any such convention is not

administratively feasible for the Administrative Agent, then the Administrative Agent may establish another convention in its reasonable discretion. (a “SOFR Rate Day”), a rate per annum equal to the greater of (a) the SOFR Adjustment plus SOFR for the day (such day, a “SOFR Determination Day”) that is five (5) U.S. Government Securities Business Days prior to (i) if such SOFR Rate Day is a U.S. Government Securities Business Day, such SOFR Rate Day or (ii) if such SOFR Rate Day is not a U.S. Government Securities Business Day, the U.S. Government Securities Business Day immediately preceding such SOFR Rate Day, in each case, as such SOFR is published by the SOFR Administrator on the SOFR Administrator’s Website, and (b) zero. If by 5:00 p.m. on the second (2nd) U.S. Government Securities Business Day immediately following any SOFR Determination Day, SOFR in respect of such SOFR Determination Day has not been published on the SOFR Administrator’s Website and a Benchmark Replacement Date with respect to the Daily Simple SOFR has not occurred, then SOFR for such SOFR Determination Day will be SOFR as published in respect of the first preceding U.S. Government Securities Business Day for which such SOFR was published on the SOFR Administrator’s Website; provided that any SOFR determined pursuant to this sentence shall be utilized for purposes of calculation of Daily Simple SOFR for no more than three (3) consecutive SOFR Rate Days. Any change in Daily Simple SOFR due to a change in SOFR shall be effective from and including the effective date of such change in SOFR without notice to the Borrower.

“Default Funding Rate” means a floating interest rate per annum equal to 4.00% plus LIBORthe applicable Benchmark; provided that if any Lender shall have notified the Agent that a Eurodollar Disruption Event has occurred, the Default Funding Rate with respect to Advances of such Lender shall be equal to the Base Rate plus 3.00% until such Lender shall have notified the Agent that such Eurodollar Disruption Event has ceased, at which time the Default Funding Rate with respect to Advances of such Lender shall again be equal to LIBORthe applicable Benchmark for such date plus 4.00%.

“Default Right” means the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

“Defaulting Lender” means any Lender that (i) has failed to fund any portion of the Advances or participations in Swingline Advances required to be funded by it hereunder within one Business Day (or, solely in the case of a European Lender that receives the applicable 
									
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Notice of Borrowing after 9:00 a.m. (New York City time) on the second Business Day prior to the related Advance Date, two Business Days and (a) Wells Fargo, in its sole discretion, agrees for such two Business Day period to fund the amount that was to be funded by the European Lender and (b) the European Lender agrees to reimburse Wells Fargo within two (2) Business Days for any amounts paid pursuant to clause (a) above) of the date required to be funded by it hereunder, (ii) has otherwise failed to pay over to the Agent or any other Lender any other amount required to be paid by it hereunder within three Business Days of the date when due, unless such amount is the subject of a good faith dispute, (iii) has notified the Borrower, the Agent or any other Lender in writing that it does not intend to comply with any of its funding obligations under this Agreement or has made a public statement to the effect that it does not intend to comply or has failed to comply with its funding obligations under this Agreement or

generally under other agreements in which it commits or is obligated to extend credit or (iv) has (or, with respect to such Lender (x) the bank holding company (as defined in Federal Reserve Board Regulation Y), if any, of such Lender and/or (y) any Person owning, beneficially or of record, directly or indirectly, a majority of the shares of such Lender, has) become or is insolvent or has become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee or custodian appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding or appointment.

“Delayed Draw Loan Asset” means a Loan Asset that is fully committed on the initial funding date of such Loan Asset and is required to be fully funded in one or more installments on draw dates to occur after the initial funding of such Loan Asset but which, once all such installments have been made, has the characteristics of a Term Loan Asset.

“Designated Lender” means Wells Fargo, in its capacity as a Lender hereunder, and any successor-in-interest thereto.

“Designated Loan Asset” means any Loan Asset designated by the Agent in its sole discretion as a “Designated Loan Asset” at the time of approval of such Loan Asset.

“Determination Date” means the last day of each calendar month.

“Disbursement Request” means a disbursement request from the Borrower to the Agent and the Trustee in the form attached hereto as Exhibit D in connection with a disbursement request from the Unfunded Exposure Account in accordance with Section 2.04(d) or a disbursement request from the Principal Collection Account in accordance with Section 2.21, as applicable.

“Early Opt-in Election” means if the then-current Benchmark is LIBOR, the occurrence of 

(a)a notification by the Administrative Agent to (or the request by the Borrower to the Administrative Agent to notify) each of the other parties hereto that at least five currently outstanding Dollar-denominated syndicated credit facilities at such time contain (as a result of amendment or as originally executed) a SOFR-based rate (including SOFR, a term SOFR or any other rate based upon SOFR) as a benchmark rate (and such syndicated credit facilities are identified in such notice and are publicly available for review); and

									
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(b)the joint election by the Administrative Agent and the Borrower to trigger a fallback from LIBOR and the provision by the Administrative Agent of written notice of such election to the LendersDisruption Event” means the occurrence of any of the following: (a) any Lender shall have notified the Agent of a determination by such Lender or any of its assignees or participants that it would be contrary to law or to the directive of any central bank or other Governmental Authority (whether or not having the force of law) to obtain United States dollars in the London interbank market to fund any Advance, (b) any Lender shall have notified the Agent of the inability, for any reason, of such Lender or any of its assignees or participants to

determine the applicable Benchmark, (c) any Lender shall have notified the Agent of a determination by such Lender or any of its assignees or participants that the rate at which deposits of United States dollars are being offered to such Lender or any of its assignees or participants in the London interbank market does not accurately reflect the cost to such Lender or such assignee or such participant of making, funding or maintaining any Advance or (d) any Lender shall have notified the Agent of the inability of such Lender or any of its assignees or participants to obtain United States dollars in the London interbank market to make, fund or maintain any Advance.

“EBITDA” means, with respect to any period and any Loan Asset, the meaning of “EBITDA”, “Adjusted EBITDA” or any comparable definition in the Loan Agreement for such Loan Asset (together with all add-backs and exclusions as designated in such Loan Agreement), and in any case that “EBITDA”, “Adjusted EBITDA” or such comparable definition is not defined in such Loan Agreement, an amount, for the principal obligor on such Loan Asset and any of its parents or Subsidiaries that are obligated pursuant to the Loan Agreement for such Loan Asset (determined on a consolidated basis without duplication in accordance with GAAP) equal to earnings from continuing operations for such period plus (a) cash interest expense, (b) income taxes, (c) depreciation and amortization for such period (to the extent deducted in determining earnings from continuing operations for such period), (d) amortization of intangibles (including, but not limited to, goodwill, financing fees and other capitalized costs), to the extent not otherwise included in clause (c) above, other non-cash charges and organization costs, (e) extraordinary losses in accordance with GAAP, (f) one-time, non-recurring non-cash charges consistent with the compliance statements and financial reporting packages provided by the Obligors and (g) any other item the Borrower and the Agent mutually deem to be appropriate; provided that with respect to any Obligor for which four full fiscal quarters of financial data are not available, EBITDA shall be determined for such Obligor based on annualizing the financial data from the reporting periods actually available.

“EEA Financial Institution” has the meaning assigned to that term in Section

11.14.

“EEA Member Country” has the meaning assigned to that term in Section 11.14. 
“EEA Resolution Authority” has the meaning assigned to that term in Section 11.14.

“Eighth Amendment Effective Date” means January 3, 2017. “Eleventh Amendment Effective Date” means December 14, 2018.
									
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“Eligible Bid” means a bid made in good faith (and acceptable as a valid bid in
the Agent’s reasonable discretion) by a bidder for all or any portion of the Collateral Portfolio in connection with a sale of the Collateral Portfolio in whole or in part pursuant to Section 7.02(i).

“Eligible Loan Asset” means, at any time, a Loan Asset in respect of which each of the representations and warranties contained in Section 4.02 and Schedule III hereto is true and correct.

“Environmental Laws” means any and all foreign, federal, state and local laws, statutes, ordinances, rules, regulations, permits, licenses, approvals, interpretations (with the force of law) and orders of courts or Governmental Authorities, relating to the protection of human health or the environment, including, but not limited to, requirements pertaining to the manufacture, processing, distribution, use, treatment, storage, disposal, transportation, handling, reporting, licensing, permitting, investigation or remediation of Hazardous Materials. Environmental Laws include, without limitation, the Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C. § 9601 et seq.), the Hazardous Material Transportation Act (49 U.S.C. § 331 et seq.), the Resource Conservation and Recovery Act (42 U.S.C. § 6901 et seq.), the Federal Water Pollution Control Act (33 U.S.C. § 1251 et seq.), the Clean Air Act (42 U.S.C. § 7401 et seq.), the Toxic Substances Control Act (15 U.S.C. § 2601 et seq.), the Safe Drinking Water Act (42 U.S.C. § 300, et seq.), the Environmental Protection Agency’s regulations relating to underground storage tanks (40 C.F.R. Parts 280 and 281), and the Occupational Safety and Health Act (29 U.S.C. § 651 et seq.), and the rules and regulations thereunder, each as amended or supplemented from time to time.

“Equity Security” means (i) any equity security or any other security that is not eligible for purchase by the Borrower as a Loan Asset, (ii) any security purchased as part of a “unit” with a Loan Asset and that itself is not eligible for purchase by the Borrower as a Loan Asset, and (iii) any obligation that, at the time of commitment to acquire such obligation, was eligible for purchase by the Borrower as a Loan Asset but that, as of any subsequent date of determination, no longer is eligible for purchase by the Borrower as a Loan Asset, for so long as such obligation fails to satisfy such requirements.

“Equityholder” means Ares Capital CP Funding Holdings LLC, a Delaware limited liability company, which owns 100% of the equity interests in the Borrower.

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

“ERISA Affiliate” means (a) any corporation that is a member of the same controlled group of corporations (within the meaning of Section 414(b) of the Code) as the Borrower, (b) a trade or business (whether or not incorporated) under common control (within the meaning of Section 414(c) of the Code) with the Borrower, or (c) a member of the same affiliated service group (within the meaning of Section 414(m) of the Code) as the Borrower, any corporation described in clause (a) above or any trade or business described in clause (b) above.

“Erroneous Payment” means the meaning specified in Section 9.02(a).
									
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“Erroneous Payment Deficiency Assignment” means the meaning specified in Section 9.02(a).
“Erroneous Payment Return Deficiency” means the meaning specified in Section 9.02(a).
“EU Bail-In Legislation Schedule” has the meaning assigned to that term in Section 11.14.

“EUR” and “euro” denote the single currency of the Participating Member States.

“Eurodollar Disruption Event” means the occurrence of any of the following: (a) any Lender shall have notified the Agent of a determination by such Lender or any of its assignees or participants that it would be contrary to law or to the directive of any central bank or other Governmental Authority (whether or not having the force of law) to obtain United States dollars in the London interbank market to fund any Advance, (b) any Lender shall have notified the Agent of the inability, for any reason, of such Lender or any of its assignees or participants to determine LIBOR, (c) any Lender shall have notified the Agent of a determination by such Lender or any of its assignees or participants that the rate at which deposits of United States dollars are being offered to such Lender or any of its assignees or participants in the London interbank market does not accurately reflect the cost to such Lender or such assignee or such participant of making, funding or maintaining any Advance or (d) any Lender shall have notified the Agent of the inability of such Lender or any of its assignees or participants to obtain United States dollars in the London interbank market to make, fund or maintain any Advance.

“European Lender” means a Lender that is domiciled in Europe or has its primary lending office in Europe.
“Event of Default” has the meaning assigned to that term in Section 7.01. “Excepted Persons” has the meaning assigned to that term in Section 11.13(a). “Excess Concentration Amount” means, as of any date of determination, with
respect to all Eligible Loan Assets included in the Collateral Portfolio, the amount by which the sum of the Adjusted Borrowing Value of such Eligible Loan Assets exceeds any applicable Concentration Limits, to be calculated without duplication after giving effect to any sales, purchases or substitutions of Loan Assets as of such date.

“Exchange Act” means the United States Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

“Excluded Affiliate” means any portfolio company of the Servicer or the Transferor, as applicable, that is not consolidated on the financial statements of the Servicer or the Transferor, as applicable.

“Excluded Amounts” means (a) any amount received in the Collection Account with respect to any Loan Asset included as part of the Collateral Portfolio, which amount is attributable to the payment of any Tax, fee or other charge imposed by any Governmental 
									
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Authority on such Loan Asset or on any Underlying Collateral and (b) any amount received in the Collection Account or other Controlled Account representing (i) any amount representing a reimbursement of insurance premiums, (ii) any escrows relating to Taxes, insurance and other amounts in connection with Loan Assets which are held in an escrow account for the benefit of the Obligor and the secured party pursuant to escrow arrangements under a Loan Agreement, (iii) any amount received in the Collection Account with respect to any Loan Asset retransferred or substituted for upon the occurrence of a Warranty Event or that is otherwise replaced by a Substitute Eligible Loan Asset, or that is otherwise sold or transferred by the Borrower pursuant

definition if “permitted liens” is not defined therein, so long as such definition is reasonable and customary, (ii) has a Loan-to-Value Ratio not greater than 65%, and (iii) is not by its terms (and is not expressly permitted by its terms to become) subordinate in right of payment to any other obligation for borrowed money of the Obligor of such Loan Asset, other than with respect to the liquidation of such Obligor or such Underlying Collateral.

“First Lien Loan Asset” means any Loan Asset that (i) is secured by a valid and perfected first priority Lien on all of the Obligor’s assets constituting Underlying Collateral for the Loan Asset, subject to any expressly permitted liens under the applicable covenants in the Loan Agreement for such Loan Asset, including those set forth in “permitted liens” as defined in the applicable Loan Agreement for such Loan Asset or such comparable definition if “permitted liens” is not defined therein, so long as such definition is reasonable and customary, (ii) has a Loan-to-Value Ratio not greater than 60%, and (iii) provides that the payment obligation of the Obligor on such Loan Asset is either senior to, or pari passu with, all other Indebtedness of such Obligor.

“First Out Attachment Ratio” means, with respect to any Loan Asset, as of any date of determination, an amount equal to the Senior Net Leverage Ratio with respect to all or any portion of such Loan Asset that constitutes first lien senior secured Indebtedness that is not (and cannot by its terms become) subordinate in right of payment to any obligation of the Obligor in any bankruptcy, reorganization, arrangement, insolvency, moratorium or liquidation proceedings (excluding any First Lien Last Out Loan Asset or first lien last out Indebtedness within the capital structure).

“First Tier Loan Assignment” has the meaning set forth in the First Tier Purchase and Sale Agreement.

“First Tier Purchase and Sale Agreement” means that certain Amended and Restated Purchase and Sale Agreement, dated as of the Closing Date and amended and restated as of the Restatement Date, between the Transferor, as the seller, and the Equityholder, as the purchaser, as amended, modified, waived, supplemented, restated or replaced from time to time.

“Fixed Rate Excess” means as, as of any date of determination, a fraction (expressed as a percentage) the numerator of which is the product of (i) the greater of zero and the excess of the Weighted Average Coupon for such date of determination over the Minimum Weighted Average Coupon on such date of determination and (ii) the Adjusted Borrowing Value of all Fixed Rate Loan Assets (excluding any defaulted Loan Assets) held by the Borrower as of such date of determination, and the denominator of which is the Adjusted Borrowing Value of all Floating Rate Loan Assets (excluding any defaulted Loan Assets) held by the Borrower as of such date of determination.

									
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“Fixed Rate Loan Asset” means a Loan Asset other than a Floating Rate Loan
Asset.

“Floating Rate Loan Asset” means a Loan Asset under which the interest rate
payable by the Obligor thereof is based on the AresApplicable Prime Rate or Ares LIBOR Ratethe applicable Benchmark, plus some specified interest percentage in addition thereto, and

whichthe Loan provides that such interest rate will reset immediately upon any change in the related AresApplicable Prime Rate or Ares LIBOR Ratethe Benchmark.

“Floor” means for purposes of this Agreement, 0%.

“Floor Obligation” means, as of any date, a Floating Rate Loan Asset (a) for which the related Underlying Instruments allow a floating rate option, (b) that provides that such floating rate is (in effect) calculated as the greater of (i) a specified “floor” rate per annum and
(ii) the Londonapplicable interbank offered rate or other floating rate for the applicable interest period for such Loan Asset and (c) that, as of such date, bears interest based on such floating rate option, but only if as of such date such Londonapplicable interbank offered rate or other floating rate for the applicable interest period is less than the “floor” rate.

“Foreign Lender” has the meaning assigned to that term in Section 2.11(d)(ii)(B).
“Fronting Exposure” means, at any time there is a Defaulting Lender, with respect to the Swingline Lender, such Defaulting Lender’s Pro Rata Share of Swingline Advances other than Swingline Advances as to which such Defaulting Lender’s participation obligation has been reallocated to other Lenders, repaid by the Borrower or for which cash collateral or other credit support acceptable to the Swingline Lender shall have been provided in accordance with the terms hereof.
“GAAP” means generally accepted accounting principles as in effect from time to time in the United States.

“GICS Industry Classification Group” means each sub-industry classification group listed on Schedule VII, as the same may be updated by the Borrower (a) to conform to the Global Industry Classification Standard promulgated by MSCI Inc. or (b) as otherwise agreed with the Agent.

“Governmental Authority” means, with respect to any Person, any nation or government, any state or other political subdivision thereof, any central bank (or similar monetary or regulatory authority) thereof, any body or entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government and any court or arbitrator having jurisdiction over such Person.

“Hazardous Materials” means all materials subject to any Environmental Law, including, without limitation, materials listed in 49 C.F.R. § 172.010, materials defined as hazardous pursuant to § 101(14) of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, flammable, explosive or radioactive materials, hazardous or toxic wastes or substances, lead-based materials, petroleum or petroleum distillates or asbestos or material containing asbestos, polychlorinated biphenyls, radon gas, urea formaldehyde and 
									
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any substances classified as being “in inventory”, “usable work in process” or similar classification that would, if classified as unusable, be included in the foregoing definition.

“Hedge Breakage Costs” means, for any Hedge Transaction, any amount payable by the Borrower for the early termination of that Hedge Transaction or any portion thereof.

“Hedge Collateral” has the meaning assigned to that term in Section 5.09(b).

“Hedge Counterparty” means any entity that either (i) is approved in writing by the Agent (in its reasonable discretion) or (ii) satisfies the Hedge Counterparty Minimum Ratings, which has entered into a Hedging Agreement in connection with this Agreement.

“Hedge Counterparty Minimum Ratings” means (i) a rating of its unsecured and otherwise unsupported long-term debt obligations of at least “A1” and a rating of its unsecured and otherwise unsupported short-term debt obligations of at least “P-1” respectively by Moody’s, if such counterparty has both long-term and short-term ratings, or if it has no such short-term rating, “A2” and (ii) a rating of its unsecured and otherwise unsupported short-term debt obligations of at least “A-1” by S&P, or if it has no such short-term rating, the rating of its unsecured and otherwise unsupported long-term debt obligations of “A” (or, with respect to any Hedge Counterparty not so rated, whose obligations in respect of the Hedging Agreement are absolutely and unconditionally guaranteed by an Affiliate of such Hedge Counterparty, such ratings of such Affiliate’s debt obligations); provided that in each case, if it has the minimum specified rating, it is not on watch for possible downgrade.

“Hedge Transaction” means each Asset Specific Hedge, interest rate swap transaction, interest rate cap transaction, interest rate floor transaction or other derivative transaction approved in writing by the Agent, between the Borrower and a Hedge Counterparty that is entered into pursuant to Section 5.09 and is governed by a Hedging Agreement.

“Hedge Notional Amount” means, for any Loan Asset, the aggregate notional amount in effect on any day under all Hedge Transactions entered into pursuant to Section 5.09 for that Loan Asset.

“Hedging Agreement” means each agreement between the Borrower and a Hedge Counterparty that governs one or more Hedge Transactions entered into by the Borrower and such Hedge Counterparty pursuant to Section 5.09, which agreement shall consist of a “Master Agreement” in a form published by the International Swaps and Derivatives Association, Inc., together with a “Schedule” and each “Confirmation” thereunder confirming the specific terms of each such Hedge Transaction; provided that the “Schedule” and the form of each “Confirmation” to any Hedging Agreement shall be subject to the written approval of the Agent, in its reasonable discretion.

“IBA” has the meaning specified in Section 2.26(f). 
“Indebtedness” means:
(i)with respect to any Obligor under any Loan Asset, for the purposes of the definition of the Interest Coverage Ratio, the Senior Net Leverage Ratio and the Net Leverage Ratio, the meaning of “Indebtedness” or any comparable definition in the Loan Agreement for each such Loan Asset, and in any case that 
									
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“Indebtedness” or such comparable definition is not defined in such Loan Agreement, without duplication, (a) all obligations of such entity for borrowed money or with respect to deposits or advances of any kind, (b) all obligations of

“Interest Collections” means, (i) with respect to any Loan Asset, all payments and collections attributable to interest on such Loan Asset, including, without limitation, all scheduled payments of interest and payments of interest relating to principal prepayments, all guaranty payments attributable to interest and proceeds of any liquidations, sales, dispositions or securitizations attributable to interest on such Loan Asset and (ii) amendment fees, late fees, waiver fees or other amounts received in respect of Loan Assets.

“Interest Coverage Ratio” means, with respect to any Loan Asset for any Relevant Test Period, the meaning of “Interest Coverage Ratio” or any comparable definition in the Loan Agreement for each such Loan Asset, and in any case that “Interest Coverage Ratio” or such comparable definition is not defined in such Loan Agreement, the ratio of (a) EBITDA to (b) Interest.

“Joinder Supplement” means an agreement among the Borrower, a Lender and the Agent in the form of Exhibit E to this Agreement (appropriately completed) delivered in connection with a Person becoming a Lender hereunder after the Restatement Date.

“Last Out Attachment Ratio” means, with respect to any Loan Asset, as of any date of determination, an amount equal to the Senior Net Leverage Ratio with respect to all or any portion of such Loan Asset that constitutes first lien senior secured Indebtedness that is (or by its terms could become) subordinate in right of payment to one or more tranches of first lien senior secured indebtedness.

“Lender” means (i) Wells Fargo and (ii) each financial institution which may from time to time become a Lender hereunder by executing and delivering this Agreement or a Joinder Supplement to the Agent and the Borrower as contemplated by Section 2.22, and/or any other Person to whom a Lender assigns any part of its rights and obligations under this Agreement and the other Transaction Documents in accordance with the terms of Section 11.04. For the avoidance of doubt, the Swingline Lender shall constitute a “Lender” with respect to the repayment of Swingline Advances for all purposes hereunder.

“Lender Fee Letter” means each fee letter agreement that shall be entered into by and among the Borrower, the Servicer, the Agent and the applicable Lender in connection with the transactions contemplated by this Agreement, as amended, modified, waived, supplemented, restated or replaced from time to time.

“LIBOR” means, for any day during the Remittance Period, with respect to any Advance (or portion thereof) the greater of (x)(a) the rate per annum appearing on Reuters Screen LIBOR01 Page (or any successor or substitute page) as the London interbank offered rate administered by ICE Benchmark Administration Limited (or any other person which takes over the administration of that rate) for deposits in dollars at approximately 11:00 a.m., London time, for such day, provided, if such day is not a Business Day, the immediately preceding Business Day, for a one-month maturity; and (b) if no rate specified in clause (a) of this definition so appears on Reuters Screen LIBOR01 Page (or any successor or substitute page), the interest rate per annum at which dollar deposits of $5,000,000 and for a one-month maturity are offered by

									
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the principal London office of Wells Fargo in immediately available funds in the London interbank market at approximately 11:00 a.m., London time, for such day and (y) zero.

“Lien” means any mortgage or deed of trust, pledge, hypothecation, collateral assignment, deposit arrangement, encumbrance, lien (statutory or other), charge, claim, preference, priority or other security interest or preferential arrangement in the nature of a security interest of any kind or nature whatsoever (including any conditional sale, lease or other title retention agreement, sale subject to a repurchase obligation, any easement, right of way or other encumbrance on title to real property, and any financing lease having substantially the same economic effect as any of the foregoing) or the filing of or agreement to give any financing statement perfecting a security interest under the UCC or comparable law of any jurisdiction.

“Lien Release Dividend” has the meaning assigned to that term in Section
2.07(d).

“Lien Release Dividend Date” means the date specified by the Borrower, which
date may be any Business Day, provided written notice is given in accordance with Section 2.07(d).

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

“Loan Asset” means any loan originated or acquired by the Transferor in the ordinary course of its business (or, during the Acquisition Participation Elevation Period, any Acquisition Participation Interest in any such loan), which loan includes, without limitation, (i) the Required Loan Documents and Loan Asset File, and (ii) all right, title and interest of the Transferor in and to the loan and any Underlying Collateral (or the applicable Acquisition Participation Interest), but excluding, in each case, the Retained Interest, any Attached Equity and Excluded Amounts and which loan or Acquisition Participation Interest was (x) acquired from the Transferor by the Borrower prior to the Restatement Date pursuant to the Original Purchase and Sale Agreement or (y) acquired by the Borrower from the Equityholder under the Second Tier Purchase and Sale Agreement and by the Equityholder from the Transferor under the First Tier Purchase and Sale Agreement and owned by the Borrower on the initial Advance Date (as set forth on the Loan Asset Schedule delivered on the initial Advance Date) or acquired by the Borrower after the initial Advance Date pursuant to the delivery of the Loan Assignments and listed on Schedule I to such Loan Assignments (or in the case of the Acquisition Participation Interests, the applicable participation documentation), which Schedule I is in the possession of Ares Capital Funding LLC and includes specific accounts, instruments or general intangibles.

“Loan Asset Checklist” means an electronic or hard copy, as applicable, of a checklist delivered by or on behalf of the Borrower to the Collateral Custodian, for each Loan Asset, of all Required Loan Documents to be included within the respective Loan Asset File, which shall specify (i) whether such document is an original or a copy and (ii) whether such Loan Asset is a Third Party Acquired Loan Asset.

Agreement for such Loan Asset or such comparable definition if “permitted liens” is not defined therein, so long as such definition is reasonable and customary) on any of the Underlying 
									
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Collateral securing such Loan Asset or (y) increases the commitment amount of any loan senior to such Loan Asset and the Net Leverage Ratio of such Loan Asset increases by more than 0.5x as a result of such increase;

(e)substitutes, alters or releases the Underlying Collateral securing such Loan Asset and each such substitution, alteration or release, as determined in the sole reasonable discretion of the Agent, materially and adversely affects the value of such Loan Asset;

(f)provides additional funds to the Obligor of such Loan Asset with the intent of keeping that Loan Asset current; or

(g)amends, waives, forbears, supplements or otherwise modifies (i) the meaning of “Senior Net Leverage Ratio”, “Net Leverage Ratio”, “Interest Coverage Ratio”, or “Permitted Liens” or any respective comparable definitions in the Loan Agreement for such Loan Asset or (ii) any term or provision of such Loan Agreement referenced in or utilized in the calculation of the “Senior Net Leverage Ratio”, “Net Leverage Ratio”, “Interest Coverage Ratio”, or “Permitted Liens” or any respective comparable definitions for such Loan Asset, in either case in a manner that, in the sole reasonable judgment of the Agent, is materially adverse to the Secured Parties; provided that in connection with any Revenue Recognition Implementation or any Operating Lease Implementation, the Agent (with the consent of the Servicer (such consent not to be unreasonably withheld, delayed or conditioned)) may retroactively adjust the Interest Coverage Ratio, Senior Net Leverage Ratio or Net Leverage Ratio for any Loan Asset as determined on the applicable Cut-Off Date.

“Maximum Facility Amount” means the aggregate Commitments of the Lenders then in effect, which amount may be up to $1,525,000,0001,775,000,000, as such amount may vary from time to time pursuant to Section 2.18(b) or Section 2.22; provided that, at all times after the Reinvestment Period, the Maximum Facility Amount shall mean the aggregate Advances Outstanding at such time.

“Minimum Required Equity Amount” means, as of any date of determination, an amount equal to the greater of (i) $300,000,000375,000,000 and (ii) the sum of the Adjusted Borrowing Values of all Eligible Loan Assets attributable to the three Obligors having the largest Obligor concentration; such Obligor concentrations to be determined by summing, for each Obligor, the Adjusted Borrowing Values for all Eligible Loan Assets of such Obligor on such date of determination.

“Minimum Weighted Average Coupon” means 5.00%.

“Minimum Weighted Average Coupon Test” means a test that will be satisfied on any date of determination if the Weighted Average Coupon of all Loan Assets included in the Collateral Portfolio is equal to or greater than the Minimum Weighted Average Coupon.

“Minimum Weighted Average Spread” means 3.00%.

above, as mature (or are putable at par to the issuer thereof) no later than the Business Day prior to the next Payment Date unless such Permitted Investments are issued by the Collateral Agent in its capacity as a banking institution, in which event such Permitted Investments may mature on such Payment Date; and (2) none of the foregoing 
									
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obligations or securities shall constitute Permitted Investments if (A) such obligation or security has an “f”, “r”, “p”, “pi”, “q” or “t” subscript assigned by S&P, (B) all, or substantially all, of the remaining amounts payable thereunder consist of interest and not principal payments, (C) payments with respect to such obligations or securities or proceeds of disposition are subject to withholding Taxes by any jurisdiction unless the payor is required to make “gross-up” payments that cover the full amount of any such withholding Taxes on an after-tax basis, (D) such obligation or security is secured by real property, (E) such obligation or security is purchased at a price greater than 100% of the principal or face amount thereof, (F) such obligation or security is subject of a tender offer, voluntary redemption, exchange offer, conversion or other similar action, (G) in the Servicer’s judgment, such obligation or security is subject to material non-credit related risks, (H) such obligation is a structured finance obligation or (I) such obligation or security is represented by a certificate of interest in a grantor trust. Any investment that is a Permitted Investment pursuant to the above provisions of this definition shall not be disqualified from being a Permitted Investment because it is issued by or made with the Bank or because the Bank or the Trustee or an Affiliate of the Bank or the Trustee provides services for such investment and receives compensation therefor); provided that, notwithstanding the foregoing clauses (a) through (d), unless the Borrower and the Servicer have received the written advice of counsel of national reputation experienced in such matters to the contrary (together with an Officer’s Certificate of the Borrower or the Servicer to the Agent that the advice specified in this definition has been received by the Borrower and the Servicer), Permitted Investments may only include obligations or securities that constitute cash equivalents for purposes of the rights and assets in paragraph (c)(8)(i)(B) of the exclusions from the definition of “covered fund” for purposes of the Volcker Rule.

“Permitted Liens” means any of the following as to which no enforcement, collection, execution, levy or foreclosure proceeding shall have been commenced (a) Liens for state, municipal or other local 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 and (c) Liens granted pursuant to or by the Transaction Documents.

“Permitted Refinancing” means any refinancing transaction undertaken by the Transferor, the Borrower or an Affiliate of the Transferor that is secured, directly or indirectly, by any Loan Asset currently or formerly included in the Collateral Portfolio or any portion thereof or any interest therein released from the Lien of this Agreement.

“Permitted Securitization” means any private or public term or conduit securitization transaction (a) undertaken by the Transferor, the Borrower or an Affiliate of the

Transferor, that is secured, directly or indirectly, by any Loan Asset currently or formerly included in the Collateral Portfolio or any portion thereof or any interest therein released from the Lien of this Agreement, including, without limitation, any collateralized loan obligation or collateralized debt obligation offering or other asset securitization and (b) in the case of a term securitization in which the Transferor or an Affiliate thereof or underwriter or placement agent has agreed to purchase or place 100% of the equity and non-investment grade tranches of notes 
									
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issued in such term securitization transaction. For the avoidance of doubt, notwithstanding any agreement by the Transferor or an Affiliate to purchase or place 100% of the equity in such term securitization transaction, any such party agreeing to so purchase or place may designate other Persons as purchasers of such equity provided such party or parties remain primarily liable therefor if such designees fail to purchase or place in connection with the closing date of such term securitization and/or, after the closing of such term securitization, may transfer equity it purchases at the closing thereof.

“Person” means an individual, partnership, corporation (including a statutory or business trust), company, limited liability company, limited liability partnership, joint stock company, trust, estate, unincorporated association, sole proprietorship, joint venture, nonprofit corporation, group, sector, government (or any agency, instrumentality or political subdivision thereof), territory or other entity or organization.

“PIK Loan Asset” means a Loan Asset which provides for a portion of the interest that accrues thereon to be added to the principal amount of such Loan Asset for some period of the time prior to such Loan Asset requiring the current cash payment of such previously capitalized interest, which cash payment shall be treated as an Interest Collection at the time it is received; provided that, notwithstanding the foregoing, no Loan Asset shall constitute a PIK Loan Asset if the portion of the interest accruing thereon that is contractually required to be paid in cash accrues at a rate equal to or in excess of (a) the Ares LIBOR Rateapplicable London interbank offered rate or SOFR rate plus 2.0%, if such Loan Asset is a Floating Rate Loan Asset with an interest rate based on the London interbank offered rateBenchmark applicable to such Loan Asset pursuant to the Loan Agreement for such Loan Asset, (b) the AresApplicable Prime Rate, if such Loan Asset is a Floating Rate Loan Asset with an interest rate based on the AresApplicable Prime Rate, and (c) 6.0%, if such Loan Asset is a Fixed Rate Loan Asset (any such Loan Asset described in this proviso, a “Partial PIK Loan Asset”).

“Pledge” means the pledge of any Eligible Loan Asset or other Portfolio Asset pursuant to Article II.

“Pledge Agreement” means that certain Pledge Agreement, dated as of the Restatement Date, between the Equityholder, as pledgor, and the Trustee, as pledgee, as such Pledge Agreement may from time to time be amended, restated, supplemented or otherwise modified from time to time in accordance with the terms thereof.

“Portfolio Assets” means all Loan Assets owned by the Borrower, together with all proceeds thereof and other assets or property related thereto, including all right, title and interest of the Borrower in and to:

“Principal Collections” means (i) any deposits by the Borrower in accordance with Section 2.06(a)(i) or Section 2.07(e)(i), (ii) with respect to any Loan Asset, all amounts received which are not Interest Collections, including, without limitation, all Recoveries, all Insurance Proceeds, all scheduled payments of principal and principal prepayments and all guaranty payments and proceeds of any liquidations, sales, dispositions or securitizations, in each case, attributable to the principal of such Loan Asset and (iii) all payments received pursuant to any Hedging Agreement or Hedge Transaction; provided that, for the avoidance of doubt, “Principal Collections” shall not include amounts on deposit in the Unfunded Exposure Account or amounts withdrawn pursuant to Section 2.21.
									
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“Pro Rata Share” means, with respect to each Lender, the percentage obtained by dividing the Commitment of such Lender (as determined under clause (i) of the definition of “Commitment”), by the aggregate Commitments of all the Lenders (as determined under clause
a.of the definition of “Commitment”).

“Proceeds” means, with respect to any Collateral Portfolio, all property that is receivable or received when such Collateral Portfolio is collected, sold, liquidated, foreclosed, exchanged, or otherwise disposed of, whether such disposition is voluntary or involuntary, and includes all rights to payment with respect to any insurance relating to such Collateral Portfolio.

“Purchase and Sale Agreements” means the First Tier Purchase and Sale Agreement and the Second Tier Purchase and Sale Agreement.

“QFC” has the meaning assigned to the term “qualified financial contract” in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).

“Records” means all documents relating to the Loan Assets, including books, records and other information executed in connection with the origination or acquisition of the Collateral Portfolio or maintained with respect to the Collateral Portfolio and the related Obligors that the Borrower, the Transferor or the Servicer have generated, in which the Borrower, the Transferor or the Equityholder have acquired an interest pursuant to the Purchase and Sale Agreements or in which the Borrower, the Transferor or the Equityholder have otherwise obtained an interest.

“Recoveries” means, as of the time any Underlying Collateral with respect to any Loan Asset subject to clauses (ii) or (iv) of the definition of “Value Adjustment Event”, as applicable, is sold, discarded or abandoned (after a determination by the Servicer that such Underlying Collateral has little or no remaining value) or otherwise determined to be fully liquidated by the Servicer in accordance with the Servicing Standard, the proceeds from the sale of the Underlying Collateral, the proceeds of any related Insurance Policy, any other recoveries with respect to such Loan Asset, as applicable, the Underlying Collateral, and amounts representing late fees and penalties, net of any amounts received that are required under such Loan Asset, as applicable, to be refunded to the related Obligor.

“Reference Time” With respect to any setting of any then-current Benchmark (a) if such Benchmark is LIBOR, 11:00 a.m. (London time) on the day that is two (2) London

banking days preceding the date of such setting, and (b) if such Benchmark is not LIBOR, the time determined by the Administrative Agent in its reasonable discretion.

“Register” has the meaning assigned to that term in Section 2.14.

“Registered” means, for the purposes of the definition of “Permitted Investments”, in registered form for United States federal income tax purposes and issued after July 18, 1984; provided that a certificate of interest in a grantor trust shall not be treated as Registered unless each of the obligations or securities held by the trust was issued after that date.

“Reinvestment Period” means, the period commencing on the Closing Date and ending on the earliest to occur of (i) the three year anniversary of the Fifteenth Amendment 
									
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Effective Date (or such later date as is agreed to in writing by the Borrower, the Servicer, the Agent and the Lenders pursuant to Section 2.19), (ii) the occurrence of an Event of Default (past any applicable notice or cure period provided in the definition thereof) and (iii) the date of any voluntary termination by the Borrower pursuant to Section 2.18(b); provided that if any of the foregoing is not a Business Day, the Reinvestment Period shall end on the next succeeding Business Day.

“Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners, agents, trustees, administrators, managers, advisors and representatives of such Person and of such Person’s Affiliates.
“Release Date” has the meaning assigned to that term in Section 2.07(e). “Relevant Governmental Body” means the Federal Reserve Board and/or the
Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto.

“Relevant Test Period” means, with respect to any Loan Asset, the relevant test period for the calculation of Senior Net Leverage Ratio, Net Leverage Ratio or Interest Coverage Ratio, as applicable, for such Loan Asset in the Loan Agreements or, if no such period is provided for therein, for Obligors delivering monthly financing statements, each period of the last 12 consecutive reported calendar months, and for Obligors delivering quarterly financing statements, each period of the last four consecutive reported fiscal quarters of the principal Obligor on such Loan Asset; provided that with respect to any Loan Asset for which the relevant test period is not provided for in the Loan Agreement, if an Obligor is a newly-formed entity as to which 12 consecutive calendar months have not yet elapsed, “Relevant Test Period” shall initially include the period from the date of formation of such Obligor to the end of the twelfth calendar month or fourth fiscal quarter (as the case may be) from the date of formation, and shall subsequently include each period of the last 12 consecutive reported calendar months or four consecutive reported fiscal quarters (as the case may be) of such Obligor.

“Remittance Period” means, (i) as to the Initial Payment Date, the period beginning on January 1, 2010 and ending on, and including, the Determination Date immediately preceding such Payment Date and (ii) as to any subsequent Payment Date, the period beginning on the first day after the most recently ended Remittance Period and ending on, and including,

the Determination Date immediately preceding such Payment Date, or, with respect to the final Remittance Period, the Collection Date.

“Replacement Servicer” has the meaning assigned to that term in Section 6.01(c). 
“Reportable Event” means any of the events set forth in Section 4043(c) of
ERISA, other than an event for which the 30 day notice period has been waived.

“Reporting Date” means the date that is two Business Days prior to each Payment
Date.

									
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“Required Lenders” means (i) so long as Wells Fargo (or an Affiliate of Wells
Fargo) is the Agent hereunder, Wells Fargo (as a Lender hereunder) and its successors and assigns and (ii) the Lenders representing an aggregate of more than 50% of the aggregate Commitments of the Lenders then in effect; provided that, if there are two or more unaffiliated Lenders party to this Agreement as of the applicable date of determination, then at least two such Lenders shall be required to constitute the Required Lenders; provided further that the Commitment of, and the portion of any outstanding Advances, as applicable, held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders; provided further that with respect to the waiver of an Event of Default pursuant to Section 11.01 or the appointment of a replacement Servicer pursuant to Section 6.01(c), Required Lenders shall also include each Lender holding 20% or more of the aggregate Commitments (provided that such Lender also held 20% or more of the aggregate Commitments as of the Fifteenth Amendment Effective Date).

“Required Loan Documents” means, for each Loan Asset, originals (except as otherwise indicated) of the following documents or instruments, all as specified on the related Loan Asset Checklist:

(a)(i) other than in the case of a Noteless Loan Asset, the original or, if accompanied by an original “lost note” affidavit and indemnity, a copy of, the underlying promissory note, endorsed by the Borrower or the prior holder of record either in blank or to the Trustee (and evidencing an unbroken chain of endorsements from each prior holder thereof evidenced in the chain of endorsements either in blank or to the Trustee, subject to Section 11.19), with any endorsement to the Trustee to be in the following form: “U.S. Bank Trust Company, National Association, as Trustee for the Secured Parties” and (ii) in the case of a Noteless Loan Asset (x) a copy of each transfer document or instrument relating to such Noteless Loan Asset evidencing the assignment of such Noteless Loan Asset to the Transferor and from the Transferor to the Borrower (or, in the case of Third Party Acquired Loan Assets purchased by the Transferor from third parties, from such third party directly to the Borrower as provided in Section 11.19) and from the Borrower either to the Trustee or in blank, and (y) a copy of the Loan Asset Register with respect to such Noteless Loan Asset, as described in Section 5.03(l)(ii);

(b)originals or copies of each of the following, to the extent applicable to the related Loan Asset; any related loan agreement, credit agreement, note purchase agreement, security agreement (if separate from any Mortgage), sale and servicing

agreement, acquisition agreement, subordination agreement, intercreditor agreement or similar instruments, guarantee, Insurance Policy, assumption or substitution agreement or similar material operative document, in each case together with any amendment or modification thereto, as set forth on the Loan Asset Checklist;

(c)if any Loan Asset is secured by a Mortgage, in each case as set forth in the Loan Asset Checklist:

(i)either (i) the original Mortgage, the original assignment of leases and rents, if any, and the originals of all intervening assignments, if any, of the Mortgage and assignments of leases and rents with evidence of recording thereon, copies thereof certified by the Servicer, by closing counsel or by a title company or escrow company to be true and complete copies thereof where the originals have been 
									
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transmitted for recording until such time as the originals are returned by the public recording office; provided that, solely for purposes of the Review Criteria, the Collateral Custodian shall have no duty to ascertain whether any certification set forth in this subsection (c)(ii) has been received, other than a certification which has been clearly delineated as being provided by the Servicer or (iii) copies certified by the public recording offices where such documents were recorded to be true and complete copies thereof in those instances where the public recording offices retain the original or where the original recorded documents are lost; and

(ii) other than with respect to any Agented Note, to the extent the Borrower is the sole lender under the Loan Agreement, an Assignment of Mortgage and of any other material recorded security documents (including any assignment of leases and rents) in recordable form, executed by the Borrower or the prior holder of record, in blank or to the Trustee (and evidencing an unbroken chain of assignments from the prior holder of record to the Trustee), with any assignment to the Trustee to be in the following form: “U.S. Bank Trust Company, National Association, as Trustee for the Secured Parties”;

(d)with respect to any Loan Asset originated by the Transferor and with respect to which the Transferor acts as administrative agent (or in a comparable capacity), either (i) copies of the UCC-1 Financing Statements, if any, and any related continuation statements, each showing the Obligor as debtor and the Trustee as total assignee or showing the Obligor, as debtor and the Transferor as secured party and each with evidence of filing thereon, or (ii) copies of any such financing statements certified by the Servicer to be true and complete copies thereof in instances where the original financing statements have been sent to the appropriate public filing office for filing, in each case as set forth in the Loan Asset Checklist; and 

(e)with respect to any Acquisition Participation Interest, prior to the elevation thereof by assignment, the participation interest documentation.

“Required Reports” means, collectively, the Servicing Report required pursuant to Section 6.08(b), the Servicer’s Certificate required pursuant to Section 6.08(c), the financial

“Servicing Standard” means, with respect to any Loan Assets included in the Collateral Portfolio, to service and administer such Loan Assets on behalf of the Secured Parties in accordance with Applicable Law, the terms of this Agreement, the Loan Agreements, all customary and usual servicing practices for loans like the Loan Assets and, to the extent consistent with the foregoing, (i) if the Servicer is the originator or an Affiliate thereof, the higher of: (A) in a manner which the Servicer believes to be consistent with the practices and procedures followed by institutional servicers of national standing relating to assets of the nature and character of the Loan Assets, and (B) the same care, skill, prudence and diligence with which the Servicer services and administers loans for its own account or for the account of others, and (ii) if the Servicer is not the originator or an Affiliate thereof, the same care, skill, prudence and diligence with which the Servicer services and administers loans for its own account or for the account of others.

“Seventh Amendment Effective Date” means May 14, 2014.

									
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“Shareholders’ Equity” means, at any date, the amount determined on a consolidated basis, without duplication, in accordance with GAAP, of shareholders equity for the Servicer and its Subsidiaries at such date.

“Sixteenth Amendment Effective Date” means June 30, 2022.

“SOFR” means, with respect to any day means, the secured overnight financing rate published for such day by the SOFR Administrator on the SOFR Administrator’s Website.

“SOFR Adjustment” means 0.10%.

“SOFR Administrator” means The Federal Reserve Bank of New York, as the administrator of the benchmark, (or aany successor administrator) on the Federal Reserve Bank of New York.

“SOFR Administrator’s Website.” means the website of the SOFR Administrator, currently at http://www.newyorkfed.org, or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to time.

“SOFR Determination Day” has the meaning specified in the definition of “Daily Simple SOFR.”

“SOFR Rate Day” has the meaning specified in the definition of “Daily Simple

SOFR.”

“Spread Differential” means, for any date of determination, (a) the weighted
average interest rate of the Loan Assets included in the Collateral Portfolio (and for the avoidance of doubt, with respect to Floating Rate Loan Assets, including LIBOR) on such date minus (b) the Yield Rate for such date.

“Spread Excess” means, as of any date of determination, a fraction (expressed as a percentage) the numerator of which is the product of (i) the greater of zero and the excess of

“Swingline  Refund  Date”  has  the  meaning  assigned  to  that  term  in Section

“TARGET2” means the Trans-European Automated Real-time Gross Settlement

Express Transfer payment system which utilizes a single shared platform and which was launched on November 19, 2007.

“TARGET Day” means any day on which TARGET2 is open for the settlement of payments in EUR.

“Taxes” means any present or future taxes, levies, imposts, duties, charges, assessments or fees of any nature (including interest, penalties, and additions thereto) that are imposed by any Governmental Authority.

									
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“Term Loan Asset” means a Loan Asset that is a term loan that has been fully funded and does not contain any unfunded commitment on the part of the Transferor arising from an extension of credit by the Transferor to an Obligor.

“Term SOFR” means, for the applicable Corresponding Tenor as of the applicable Reference Time, the forward-looking term rate based on SOFR that has been selected or recommended by the Relevant Governmental Body.

“Term SOFR Notice” means, a notification by the Administrative Agent to the Lenders and the Borrower of the occurrence of a Term SOFR Transition Event.

“Term SOFR Transition Event” means, the determination by the Administrative Agent, in consultation with the Borrower, that (a) Term SOFR has been recommended for use by the Relevant Governmental Body, (b) the administration of Term SOFR is administratively feasible for the Administrative Agent and (c) a Benchmark Transition Event or an Early Opt-in Election, as applicable, has previously occurred resulting in the replacement of the applicable then-current Benchmark with respect to any Obligations denominated in Dollars or calculated with respect thereto for all purposes hereunder and under any Transaction Document in accordance with Section 2.26 with a Benchmark Replacement the Unadjusted Benchmark Replacement component of which is not Term SOFR.

“Third Party Acquired Loan Asset” means any Loan Asset purchased by the Transferor from third parties not Affiliated with the Transferor and then sold from the Transferor to the Equityholder pursuant to the First Tier Purchase and Sale Agreement and from the Equityholder to the Borrower pursuant to the Second Tier Purchase and Sale Agreement.

“Thirteenth Amendment Effective Date” means January 31, 2020.

“Transaction Documents” means this Agreement, any Hedging Agreement, any Joinder Supplement, the Purchase and Sale Agreements, the Participation Agreement, the Collection Account Agreement, the Unfunded Exposure Account Agreement, the Trustee and Collateral Custodian Fee Letter, any Lender Fee Letter, the Pledge Agreement and each document, instrument or agreement related to any of the foregoing.

benefit of the Secured Parties; provided that the funds deposited therein (including any interest and earnings thereon) from time to time shall constitute the property and assets of the Borrower and the Borrower shall be solely liable for any Taxes payable with respect to the Unfunded Exposure Account.

“Unfunded Exposure Account Agreement” means that certain controlled account agreement (unfunded exposure account), dated as of the Second Amendment Effective Date, among the Borrower, the Servicer, the Bank, the Agent, and the Trustee, which agreement relates to the Unfunded Exposure Account, as such agreement may from time to time be amended, supplemented or otherwise modified in accordance with the terms thereof.

“Unfunded Exposure Amount” means, as of any date of determination, the amount, if any, by which (i) the aggregate of all Exposure Amounts exceeds (ii) the amount on deposit in the Unfunded Exposure Account.

									
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“Unfunded Exposure Equity Amount” means, as of any date of determination, with respect to any Revolving Loan Asset or Delayed Draw Loan Asset, an amount equal to (a) the Exposure Amount for such Revolving Loan Asset or Delayed Draw Loan Asset multiplied by
a.the difference of 100% minus the product of (i) the Applicable Percentage for such Revolving Loan Asset or Delayed Draw Loan Asset and (ii) the Assigned Value for such Revolving Loan Asset or Delayed Draw Loan Asset.

“Unfunded Exposure Equity Shortfall” means, as of any date of determination, an amount equal to the excess, if any, of (i) the aggregate of all Unfunded Exposure Equity Amounts over (ii) the amount on deposit in the Unfunded Exposure Account.

“United States” means the United States of America.

“Unmatured Event of Default” means any event that, if it continues uncured, will, with lapse of time, notice or lapse of time and notice, constitute an Event of Default.

“Unrestricted Cash” the meaning of “Unrestricted Cash” or any comparable definition in the Loan Agreements for each Loan Asset, and in any case that “Unrestricted Cash” or such comparable definition is not defined in such Loan Agreement, all cash available for use for general corporate purposes and not held in any reserve account or legally or contractually restricted for any particular purposes or subject to any lien (other than blanket liens permitted under or granted in accordance with such Loan Agreement).

“U.S. Government Securities Business Day” means any day except for (a) a Saturday, (b) a Sunday or (c) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.

“U.S. Special Resolution Regime” means each of (i) the Federal Deposit Insurance Act and the regulations promulgated thereunder and (ii) Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder.

“Value Adjustment Event” means, with respect to any Loan Asset, the occurrence of any one or more of the following events after the related Cut-Off Date:

(i)(x) Thethe Interest Coverage Ratio for any Relevant Test Period with respect to such Loan Asset is (A) less than 90% of the Interest Coverage Ratio with respect to such Loan Asset as calculated on the applicable Cut-Off Date, and (B) less than 1.50:1.00, or (y) the Senior Net Leverage Ratio (or, with respect to any Second Lien Loan Asset or Designated Loan Asset, the Net Leverage Ratio) for any Relevant Test Period of the related Obligor with respect to such Loan Asset is (A) more than 0.75x higher than such ratio as calculated on the applicable Cut-Off Date, and (B) greater than 3.50:1.00; provided that in connection with any Revenue Recognition Implementation or any Operating Lease Implementation, the Agent (with the consent of the Servicer (such consent not to be unreasonably withheld, delayed or conditioned)) may retroactively adjust the Interest Coverage Ratio, the Senior Net Leverage Ratio, or the Net Leverage Ratio for any Loan Asset as determined on the applicable Cut-Off Date;

									
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(ii)an Obligor payment default under any Loan Asset (after giving effect to any applicable grace or cure periods, but in any case not to exceed five Business Days, in accordance with the Loan Agreement);

(iii)(x) the failure to deliver a “loan level” financial reporting package no later than 45 days after the end of each month (to the extent required by the underlying loan documents), 60 days after the end of each quarter or 130 days after the end of each fiscal year, or such greater number of days as allowed in the Loan Agreement, including any grace and/or cure periods set forth in the Loan Agreement, but which shall in no case exceed 150 days after the end of each fiscal year (unless waived or otherwise agreed to by the Agent in its sole discretion) or (y) any other Obligor default under any Loan Asset (after giving effect to any applicable grace or cure periods in accordance with the Loan Agreement) that could reasonably be expected to have a material and adverse effect on the creditworthiness of such Obligor or on the collectability of any amount required to be paid under the related Loan Agreement for such Loan Asset;

(iv)a Bankruptcy Event with respect to the related Obligor;

(v)the occurrence of a Material Modification (in accordance with clauses (b)-(c) or clauses (e)-(g) of the definition thereof) with respect to such Loan Asset; or

(vi)the occurrence of a Material Modification (in accordance with clauses (a) or (d) of the definition thereof) with respect to such Loan Asset.;

“Volcker Rule” means Section 13 of the U.S. Bank Holding Company Act of 1956, as amended, and the applicable rules and regulations thereunder.

“Write-Down and Conversion Powers” has the meaning assigned to that term in Section 11.14.

“WFS” has the meaning assigned to that term in the Preliminary Statement. 

“Yield” means with respect to any Remittance Period, the sum for each day in

such Remittance Period determined in accordance with the following formula:

YR x L
 D
												
	where:
	YR
	=
	the Yield Rate applicable on such day;

		L
	=
	the Advances Outstanding on such day; and

		D
	=
	360 or, to the extent the Yield Rate is the Base Rate, 365 or 366 days, as applicable;

provided that (i) no provision of this Agreement shall require the payment or permit the collection of Yield in excess of the maximum permitted by Applicable Law and (ii) Yield shall not be considered paid by any distribution if at any time such distribution is later required to be rescinded by any Lender to the Borrower or any other Person for any reason including, without limitation, such distribution becoming void or otherwise avoidable under any statutory provision 
									
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or common law or equitable action, including, without limitation, any provision of the Bankruptcy Code.

“Yield Rate” means, as of any date of determination, an interest rate per annum equal to LIBORthe applicable Benchmark for such date (not less than zero) plus the Applicable Spread; provided that (i) if anya Lender shall have notified the Agent that a Eurodollar Disruption Event has occurred, the Yield Rate with respect to Advances of such LenderBenchmark, the applicable Yield Rate shall be equal to the Base Rate plus the Applicable Spread until such Lender shall have notified the Agent that such Eurodollar Disruption Event has ceased, at which time the applicable Yield Rate with respect to Advances of such Lender shall again be equal to LIBORsuch Benchmark for such date plus the Applicable Spread and (ii) if any Event of Default has occurred, the Yield Rate shall be increased to the Default Funding Rate, effective as of the date of the occurrence of such Event of Default, and shall remain at the Default Funding Rate following the occurrence of such Event of Default.

Section 1.02 Other Terms. All accounting terms used but  not  specifically defined herein shall be construed in accordance with GAAP. All terms used in Article 9 of the UCC in the State of New York, and used but not specifically defined herein, are used herein as defined in such Article 9.

Section 1.03 Computation of Time Periods. Unless otherwise stated in this Agreement, in the computation of a period of time from a specified date to a later specified date, the word “from” means “from and including” and the words “to” and “until” each mean “to but excluding.”

(i)the aggregate amount of such Advance which amount shall not cause the Advances Outstanding to exceed the Borrowing Base; provided that, except with respect to an Advance pursuant to Section 2.02(f), the amount of such Advance must be at least equal to $500,000;

(ii)the proposed date of such Advance;

(iii)a representation that all conditions precedent for an Advance described in Article III hereof have been satisfied; and

(iv)the amount of cash that will be funded into the Unfunded Exposure Account in connection with the Advance, if applicable.

On the date of each Advance (other than a Swingline Advance), upon satisfaction of the applicable conditions set forth in Article III, each Lender shall make available to the Agent on the applicable Advance Date in same day funds by no later than 12:00 noon, an amount equal to such Lender’s Pro Rata Share of such Advance and upon receipt of such amounts with respect to such Advance, the Agent shall promptly fund such amounts by wire transfer to the account which the Borrower has designated in writing; provided that, with respect to an Advance funded pursuant to Section 2.02(f), each Lender shall remit the Advance equal to such Lender’s Pro Rata Share of the Exposure Amount Shortfall in same day funds by no later than 12:00 noon to the Agent and upon receipt of such amounts with respect to such Advance, the Agent shall promptly fund such amounts to the Unfunded Exposure Account. On the date of any Swingline Advance, the Swingline Lender shall make available to the Agent in same day funds, an amount equal to the amount of such Swingline Advance and upon receipt of such 
									
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amount with respect to such Swingline Advance, the Agent shall promptly fund such amounts by wire transfer to the account which the Borrower has designated in writing.

(c)The Advances shall bear interest at the Yield Rate.

(d)Subject to Section 2.18 and the other terms, conditions, provisions and limitations set forth herein (including, without limitation, the payment of the Commitment Termination Premium, if any, as applicable), the Borrower may (i) borrow and reborrow Advances without any penalty, on and after the Restatement Date and prior to the end of the Reinvestment Period and (ii) repay or prepay Advances without any penalty, on and after the Restatement Date and prior to the Facility Maturity Date.

(e)Determinations by any Lender of the existence of any Eurodollar Disruption Event with respect to such Lender (any such determination to be communicated to the Borrower by written notice from the Agent promptly after the Agent learns of such event), or of the effect of any Eurodollar Disruption Event on its making or maintaining Advances at LIBORthe applicable Benchmark, shall be conclusive absent manifest error.

(f)Notwithstanding anything to the contrary herein (including, without limitation, the occurrence of an Event of Default or the existence of an Unmatured Event of Default or a Borrowing Base Deficiency), if, on the last day of the Reinvestment Period, the amount on deposit in the Unfunded Exposure Account is less than the aggregate of all Exposure

(v)to the Agent to be distributed pro rata to each Lender, in accordance with the amounts due under this clause, all Yield and the Non-Usage Fee that is accrued and unpaid as of the last day of the related Remittance Period;

(vi)pro rata to the Agent (for the account of each Lender), the Agent (for its own account) or the Trustee (on behalf of itself and the Collateral Custodian and the Bank), as applicable, all accrued and unpaid fees, expenses (including reasonable attorneys’ fees, costs and expenses) and indemnity amounts payable by the Borrower to any Lender, the Agent, the Trustee, the Bank or the Collateral Custodian under the Transaction Documents;

(vii)(a) prior to the end of the Reinvestment Period, if any Borrowing Base Deficiency is a result of a shortfall in the Unfunded Exposure Amount, at the discretion and direction of the Servicer, to fund the Unfunded Exposure Account (in an amount up to the aggregate of all Unfunded Exposure Equity Amounts), and (b) after the end of the Reinvestment Period but prior to the Facility Maturity Date, to fund the Unfunded Exposure Account (in an amount up to the aggregate of all Exposure Amounts);

(viii)to the Agent to be distributed pro rata to each Lender, an amount necessary to satisfy any outstanding Borrowing Base Deficiency not paid in Section 2.04(a)(vii), pro rata in accordance with the amount of Advances Outstanding;

(ix)to the Agent to be distributed pro rata to each Lender, to pay the Advances Outstanding, including any Commitment Termination Premium, in connection with any complete refinancing or termination of this Agreement in accordance with Section 2.18(b);

									
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(x)pro rata in accordance with the amounts due under this clause, to each Hedge Counterparty, any Hedge Breakage Costs owing to that Hedge Counterparty under its respective Hedging Agreement;

(xi)to pay any other amounts due (other than with respect to the repayment of Advances) under this Agreement and the other Transaction Documents (including any indemnity amounts due from the Borrower hereunder and thereunder);

(xii)to the Servicer, in respect of all reasonable expenses (except allocated overhead) incurred during the immediately ended Remittance Period in connection with the performance of its duties hereunder or paid on behalf of the Borrower, plus any outstanding deferred reimbursement amount plus interest thereon as further set forth in Section 6.07; and

(xiii)(A) during an Unmatured Event of Default, to remain in the Collection Account or (B) otherwise, at the Borrower’s election and with prior written notice to the Trustee (which notice may be set forth in the applicable Servicing Report), to the Borrower, any remaining amounts.

transfer collected funds held by the Bank in the Collection Account, in accordance with the Servicing Report, to the following Persons in the following amounts, calculated as of the Determination Date immediately preceding any Payment Date, and priority:

(i)pari passu to (a) the Trustee, in payment in full of all accrued Trustee Fees and all Trustee Expenses, and (b) the Collateral Custodian, in payment in full of all accrued Collateral Custodian Fees and Collateral Custodian Expenses; provided that amounts payable to the Trustee for Trustee Expenses and Collateral Custodian for Collateral Custodian Expenses pursuant to the foregoing clauses (a) and (b) shall not exceed $15,000 for any Payment Date;

(ii)to the Servicer, in payment in full of all accrued Servicing Fees;

(iii)pro rata in accordance with the amounts due under this clause, to each Hedge Counterparty, any amounts (other than any Hedge Breakage Costs) owing to that Hedge Counterparty under its respective Hedging Agreement in respect of any Hedge Transaction(s);

(iv)to the Agent, in an amount equal to any accrued and unpaid Agent Fee;

(v)to the Agent to be distributed pro rata to each Lender, in accordance with the amounts due under this clause, all Yield and the Non-Usage Fee that is accrued and unpaid as of the last day of the related Remittance Period;

(vi)to the Unfunded Exposure Account in an amount necessary to cause the amount on deposit in the Unfunded Exposure Account to equal the aggregate of all Exposure Amounts;

(vii)pro rata to the Agent (for the account of each Lender), the Agent (for its own account) or the Trustee (on behalf of itself and the Collateral Custodian and the Bank), as applicable, all accrued and unpaid fees, expenses (including reasonable attorneys’ fees, costs and expenses) and indemnity amounts payable by the Borrower to any Lender, the Agent, the Trustee, the Bank or the Collateral Custodian under the Transaction Documents;

									
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(viii)to the Agent to be distributed pro rata to each Lender, to pay the Advances, and any applicable Commitment Termination Premium, until paid in full;

(ix)pro rata in accordance with the amounts due under this clause, to each Hedge Counterparty, any Hedge Breakage Costs owing to that Hedge Counterparty under its respective Hedging Agreement;

(x)to pay any other amounts due under this Agreement and the other Transaction Documents (including any indemnity amounts due from the Borrower hereunder and thereunder);

(xi)to the Servicer, in respect of all reasonable expenses (except allocated overhead) incurred during the immediately ended Remittance Period in connection with

Financial Accounting Standards No. 140 by the Financial Accounting Standards Board, or the issuance of any other pronouncement, release or interpretation, causes or requires the consolidation of all or a portion of the assets and liabilities of the Transferor, the Borrower or any Secured Party with the assets and liabilities of the Agent or any Lender and, as a result, imposes any loss, cost, expense, reduction of return on capital or other loss, such event shall constitute a circumstance on which such Indemnified Party may base a claim for reimbursement under this Section 2.10. For the further avoidance of doubt, any increase in cost and/or reduction in Yield with respect to any Affected Party caused by regulatory capital allocation adjustments due to Financial Accounting Standards Nos. 166, 167 and subsequent statements and interpretations shall constitute a circumstance on which such Affected Party may base a claim for reimbursement under this Section 2.10.

(c)In determining any amount provided for in this Section 2.10, the Affected Party may use any reasonable averaging and attribution methods. The Agent, on behalf of any Affected Party making a claim under this Section 2.10, shall submit to the Borrower a certificate setting forth in reasonable detail the basis for and the computations of such additional or increased costs, which certificate shall be conclusive absent manifest error.

(d)The payment of amounts under this Section 2.10 shall be on an after Tax basis.

(e)Notwithstanding anything to the contrary herein, the Dodd-Frank Wall
Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith, and all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a change in Applicable Law for purposes of clause (a) above, regardless of the date enacted, adopted or issued.

(f)If a Eurodollar Disruption Event with respect to any Lender occurred on any date prior to the occurrence of a Benchmark Transition Event, such Lender shall in turn so notify the Borrower, whereupon all Advances Outstanding of the affected Lender in respect of which Interest accrues at LIBORthe applicable Benchmark shall immediately be converted into Advances Outstanding in respect of which such Interest accrues at the Base Rate.

Section 2.11    Taxes.
									
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(a) All payments made by an Obligor in respect of a Loan Asset and all  payments made by the Borrower or made by the Servicer on behalf of the Borrower under this Agreement will be made free and clear of and without deduction or withholding for or on account of any Taxes, unless required by Applicable Law. If any Indemnified Taxes are required to be withheld from any amounts payable to any Indemnified Party, then the amount payable to such Person will be increased (the amount of such increase, the “Additional Amount”) such that every net payment made under this Agreement after withholding for or on account of any Indemnified Taxes (including, without limitation, any Taxes on such increase) is not less than the amount that would have been paid had no such deduction or withholding been made.

(d)Notwithstanding anything to the contrary contained in this Section 2.25,   the Swingline Lender shall not be obligated to make any Swingline Advance at a time when any other Lender is a Defaulting Lender, unless the Swingline Lender has entered into arrangements (which may include the delivery of cash collateral) with the Borrower or such Defaulting Lender which are satisfactory to the Swingline Lender to eliminate the Swingline Lender’s Fronting Exposure (after giving effect to Section 2.23(a)(iii)) with respect to any such Defaulting Lender.

Section 2.26    Effect of Benchmark Transition Event.

(a)Benchmark Replacement. Notwithstanding anything to the contrary  herein or in any other Transaction Document, if a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date have occurred prior to the Reference Time in respect of any setting of any then-current Benchmark, then (x) if a Benchmark Replacement is determined in accordance with clause (a)(i) or (a)(ii) of the definition of “Benchmark Replacement” for such Benchmark Replacement Date and such Benchmark, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Transaction Document in respect of such Benchmark setting and subsequent Benchmark settings without any amendment to, or further action or consent of any other party to, this Agreement or any other Transaction Document upon delivery by the Administrative Agent of notice pursuant to Section 2.26(c) hereunder and (y) if a Benchmark Replacement is determined in accordance with clause (a)(iii) of the definition of “Benchmark Replacement” for such Benchmark Replacement Date and such Benchmark, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Transaction Document in respect of any Benchmark setting at or after 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the date on which notice of such Benchmark Replacement is provided to the Lenders without any amendment to, or further action or consent of any other party to, this Agreement or any other Transaction Document so long as the Administrative Agent has not received, by such time, written notice of objection to such Benchmark Replacement from Lenders holding greater than 50% of the aggregate Commitments then in effect (or, after the end of the Reinvestment Period, the Advances Outstanding).

Notwithstanding anything to the contrary herein or in any other Transaction Document, if a Term SOFR Transition Event and its related Benchmark Replacement Date have occurred prior to the Reference Time in respect of any setting of the applicable then-current Benchmark, then the applicable Benchmark Replacement will replace the then-current Benchmark for all purposes hereunder or under any Transaction Document in respect of such Benchmark setting and subsequent Benchmark settings, without any amendment to, or further action or consent of any other party to, this Agreement or any other Transaction Document upon delivery by the Administrative Agent of notice pursuant to Section 2.26(c) hereunder; provided 
									
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that this paragraph shall not be effective unless the Administrative Agent has delivered to the Lenders and the Borrower a Term SOFR Notice. For the avoidance of doubt, the Administrative Agent shall not be required to deliver a Term SOFR Notice after a Term SOFR Transition Event and may elect or not elect to do so in its sole discretion.

(b)Benchmark Replacement Conforming Changes. In connection with the implementation of any Benchmark Replacement, the Administrative Agent will have the right to

make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Transaction Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Transaction Document upon delivery by the Administrative Agent of notice pursuant to Section 2.26(c) hereunder.

(c)Notices. The Administrative Agent will promptly notify the Borrower and the Lenders (with a copy to the Collateral Agent) of (i) any occurrence of a Benchmark Transition Event, a Term SOFR Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date, (ii) the implementation of any Benchmark Replacement, (iii) the effectiveness of any Benchmark Replacement Conforming Changes, (iv) the removal or reinstatement of any tenor of a Benchmark pursuant to the below and (v) the commencement or conclusion of any Benchmark Unavailability Period.

Notwithstanding anything to the contrary herein or in any other Transaction Document, at any time (including in connection with the implementation of a Benchmark Replacement), (A) if any then-current Benchmark is a term rate (including Term SOFR or LIBOR) and either (1) any tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion or (2) the regulatory supervisor for the administrator of such Benchmark has provided a public statement or publication of information announcing that any tenor for such Benchmark is or will be no longer representative, then the Administrative Agent may modify the definition of “Remittance Period” for any Benchmark settings at or after such time to remove such unavailable or non-representative tenor and (B) if a tenor that was removed pursuant to clause (A) above either (1) is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (2) is not, or is no longer, subject to an announcement that it is or will no longer be representative for a Benchmark (including a Benchmark Replacement), then the Administrative Agent may modify the definition of “Remittance Period” for all Benchmark settings at or after such time to reinstate such previously removed tenor.

(d)Standards for Decisions and Determinations. Any determination, decision or election that may be made by the Administrative Agent or Lenders pursuant to this Section 2.26 including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party hereto, except, in each case, as expressly required pursuant to this Section 2.26 (or the defined terms used in this Section 2.26).

(e)Benchmark Unavailability Period. For any determination of interest hereunder or under any other Transaction Document during a Benchmark Unavailability Period with respect 
									
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to a given Benchmark, the principal amount of Advances which bear interest on such Benchmark, shall instead bear interest determined in relation to the Base Rate, computed as otherwise described herein; provided, however, that no such determination of interest shall take effect during any applicable Remittance Period.

(f)London Interbank Offered Rate Benchmark Transition Event. On March 5, 2021, the ICE Benchmark Administration (the “IBA”), the administrator of the London interbank offered rate, and the Financial Conduct Authority, the regulatory supervisor of the IBA, announced in public statements (the “Announcements”) that the final publication or representativeness date for the London interbank offered rate for: (i) Dollars for 1-week and 2-month tenor settings will be December 31, 2021 and (ii) Dollars for overnight, 1-month, 3-month, 6-month and 12-month tenor settings will be June 30, 2023. No successor administrator for the IBA was identified in such Announcements. The parties hereto agree and acknowledge that the Announcements resulted in the occurrence of a Benchmark Transition Event with respect to the London interbank offered rate for Dollars and that any obligation of the Administrative Agent to notify any parties of any such Benchmark Transition Event pursuant to clause (c) of this Section 2.26 shall be deemed satisfied.

ARTICLE III.

CONDITIONS PRECEDENT

Section 3.01    Conditions Precedent to Effectiveness.

(a)This Agreement shall be effective upon satisfaction of the conditions precedent that:

(i)all reasonable up-front expenses and fees (including legal fees and any fees required under any Lender Fee Letter and the Trustee and Collateral Custodian Fee Letter) that are invoiced at or prior to the Restatement Date shall have been paid in full;

(ii)any and all information submitted to each Lender and the Agent by the Borrower, the Transferor, the Equityholder or the Servicer or any of their Affiliates is true, accurate, complete in all material respects and not misleading in any material respect;

(iii)each Lender shall have received all documentation and other information requested by such Lender in its sole discretion and/or required by regulatory authorities with respect to the Borrower, the Transferor and the Servicer under applicable “know your customer” and Anti-Money Laundering Laws, including, without limitation, the USA PATRIOT Act, all in form and substance reasonably satisfactory to each Lender;

(iv)the Agent shall have received on or before the date of such effectiveness the items listed in Schedule I hereto, each in form and substance satisfactory to the Agent and each Lender; and

(v)no material adverse effect on the business, assets, financial conditions or performance of the Servicer and its subsidiaries, including the Borrower, on a consolidated basis, has occurred.

									
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financial reporting package with respect to such Obligor and with respect to each Loan Asset for such Obligor (including any covenant compliance certificates with respect to such Obligor and with respect to each Loan Asset for such Obligor) provided to the Borrower and/or the Servicer either monthly or quarterly, as the case may be, by such Obligor, which delivery shall be made within 45 days (or such longer period as specified in the Loan Agreement) after the end of each such month or such Obligor’s fiscal quarters, as applicable (excluding the last month or fiscal quarter, as applicable, of each such Obligor’s fiscal year), and within 90 days (or such longer period as specified in the Loan Agreement) after the end of each such Obligor’s fiscal year, and (ii) a quarterly update to the “tear sheet” prepared by the Servicer with respect to such Obligor and with respect to each Loan Asset for such Obligor, which delivery shall be made within 45 days (or such longer period as specified in the Loan Agreement) after the end of each such Obligor’s fiscal quarters (excluding the last fiscal quarter of each such Obligor’s fiscal year) and within 90 days (or such longer period as specified in the Loan Agreement) after the end of each such Obligor’s fiscal year. The Servicer will promptly deliver to the Agent, upon reasonable request and to the extent received by the Borrower and/or the Servicer, all other documents and information required to be delivered by the Obligors to the Borrower with respect to any Loan Asset included in the Collateral Portfolio. The Agent will provide each Lender with a copy of such other documents and information promptly upon receipt thereof.

(g)Amendments to Loan Assets. The Servicer will deliver to the Agent (who will provide each Lender with a copy promptly upon receipt thereof), the Trustee and the Collateral Custodian a copy of any material amendment, restatement, supplement, waiver or other modification to the Loan Agreement of any Loan Asset (along with any internal documents prepared by the Servicer and provided to its investment committee in connection with such amendment, restatement, supplement, waiver or other modification) within 10 Business Days of the effectiveness of such amendment, restatement, supplement, waiver or other modification.

(h)Website Access to Information. Notwithstanding anything to the contrary contained herein, information required to be delivered or submitted to any Secured Party pursuant to Section 5.03(i) and this Article VI shall be deemed to have been delivered on the date on which such information is posted on an IntraLinks (or other replacement) website to which the Agent and the Lenders have access.

Section 6.09 Annual Statement as to Compliance. The Servicer will provide to the Agent and the Trustee within 90 days following the end of each fiscal year of the Servicer, commencing with the fiscal year ending on December 31, 2010, a fiscal report signed by a Responsible Officer of the Servicer certifying that (a) a review of the activities of the Servicer, and the Servicer’s performance pursuant to this Agreement, for the fiscal period ending on the last day of such fiscal year has been made under such Person’s supervision and (b) the Servicer has performed or has caused to be performed in all material respects all of its obligations under this Agreement throughout such year and no Servicer Termination Event has occurred. With respect to the Original Agreement, the Servicer will provide to the Agent and the Trustee within 90 days following the end of the fiscal year of the Servicer for 2009, a fiscal report signed by a Responsible Officer of the Servicer certifying that (a) a review of the activities of the Servicer, and the Servicer’s performance pursuant to the Original Agreement, for the fiscal period ending on the last day of such fiscal year has been made under such Person’s supervision and (b) the Servicer has performed or has caused to be performed in all material respects all of its

Section 9.02    Erroneous Payments.

									
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(a)Each Lender, each other Secured Party and any other party hereto hereby severally agrees that if the Agent or the Trustee notifies (which such notice shall be conclusive absent manifest error) such Lender or any other Secured Party or any other Person that the Agent or the Trustee has determined in its sole discretion that such person has received funds on behalf of a Lender, Secured Party or other Person (each such recipient, a “Payment Recipient”) from the Agent, the Trustee or any of their respective Affiliates which were erroneously transmitted to, or otherwise erroneously or mistakenly received by, such Payment Recipient (whether or not known to such Payment Recipient) (any such amounts specified in this Section 9.02(a), whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise; individually and collectively, an “Erroneous Payment”) then such Payment Recipient is deemed to have knowledge of such error at the time of its receipt of such Erroneous Payment; provided that nothing in this Section shall require the Agent or the Trustee to provide any of the notices specified above. Each Payment Recipient shall not assert any right or claim to the Erroneous Payment, and hereby waives any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by the Agent or the Trustee for the return of any Erroneous Payments, including without limitation waiver of any defense based on “discharge for value” or any similar doctrine.

(b)[Reserved].

(c)Such Erroneous Payment shall at all times remain the property of the Agent or the Trustee, as applicable, and shall be segregated by the Payment Recipient and held in trust for the benefit of the Agent or the Trustee, as applicable, and upon demand from the Agent or the Trustee, as applicable, such Payment Recipient shall (or, with respect to any Payment Recipient who received such funds on its behalf shall cause such Payment Recipient to), promptly, but in all events no later than one Business Day thereafter, return to the Agent or the Trustee, as applicable, the amount of any such Erroneous Payment (or portion thereof) as to which such a demand was made in same day funds and in the currency so received, together with interest thereon in respect of each day from and including the date such Erroneous Payment (or portion thereof) was received by such Payment Recipient to the date such amount is repaid to the Agent or the Trustee, as applicable, at the greater of the Federal Funds Rate and a rate determined by the Agent or the Trustee, as applicable, in accordance with banking industry rules on interbank compensation from time to time in effect.

(d)In the event that an Erroneous Payment (or portion thereof) is not recovered by the Agent or the Trustee, as applicable, for any reason, after demand therefor by the Agent or the Trustee in accordance with immediately preceding clause (c), from any Lender that is a Payment Recipient (such unrecovered amount as to such Lender, an “Erroneous Payment Return Deficiency”), then at the sole discretion of the Agent or the Trustee, as applicable, and upon the Agent’s or the Trustee’s written notice to such Payment Recipient (i) such Payment Recipient shall be deemed to have assigned its Advances (but not its Commitments) with respect to which such Erroneous Payment was made to the Agent or the Trustee, as applicable, or, at the option of the Agent or the Trustee, as applicable, or any Lender Affiliated with the Agent, in a principal amount equal to the Erroneous Payment Return Deficiency (or such lesser amount as

the Agent may specify) (such assignment of the Advances (but not Commitments), the “Erroneous Payment Deficiency Assignment”) at par plus any accrued and unpaid interest, without further consent or approval of any party hereto without any further payment by the Agent, the Trustee or the Agent’s Affiliated Lender as the assignee of such Erroneous Payment Deficiency Assignment, and the Agent or the Trustee, as applicable, may reflect in the Register 
									
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its ownership interest in the Advances subject to the Erroneous Payment Deficiency Assignment. As to any Erroneous Payment Deficiency Assignment, the provisions of this clause (d) shall govern in the event of any conflict with the terms and conditions of Section 11.04. For the avoidance of doubt, no Erroneous Payment Deficiency Assignment will reduce the Commitments of any Lender and such Commitments shall remain available in accordance with the terms of this Agreement.

(e)Each party hereto hereby agrees that (x) in the event an Erroneous Payment (or portion thereof) is not recovered from any Payment Recipient that has received such Erroneous Payment (or portion thereof) for any reason, the Agent or the Trustee, as applicable, shall be subrogated to all the rights of such Payment Recipient with respect to such amount, (y) the receipt of an Erroneous Payment by a Payment Recipient shall not for the purpose of this Agreement be treated as a payment, prepayment, repayment, discharge or other satisfaction of any Obligations owed by the Borrower (except to the extent that the funds used to make such Erroneous Payment were received from the Borrower as repayment of such Obligations) and (z) to the extent that an Erroneous Payment was in any way or at any time credited as payment or satisfaction of any of the Obligations, the Obligations or any part thereof that were so credited, and all rights of the Payment Recipient, as the case may be, shall be reinstated and continue in full force and effect as if such payment or satisfaction had never been received (except to the extent that the funds used to make such Erroneous Payment were received from the Borrower as repayment of such Obligations).

(f)Each Payment Recipient hereby authorizes the Agent and the Trustee to set off, net and apply any and all amounts at any time owing to such Payment Recipient under any Transaction Document, or otherwise payable or distributable by the Agent or the Trustee to such Payment Recipient from any source, against any amount due to the Agent or the Trustee, as applicable, pursuant to this Section 9.02 or under the indemnification provisions of this Agreement.

(g)Each party’s obligations under this Section 9.02 shall survive the resignation or replacement of the Agent or the Trustee or any transfer of right or obligations by, or the replacement of, a Lender, the termination of the Commitments or the repayment, satisfaction or discharge of all Obligations (or any portion thereof) under any Transaction Document.

(d)If, in performing its duties under this Agreement, the Trustee is required to decide between alternative courses of action, the Trustee may request written instructions from the Agent as to the course of action desired by it. If the Trustee does not receive such instructions within two Business Days after it has requested them, the Trustee may, but shall be under no duty to, take or refrain from taking any such courses of action. The Trustee shall act in accordance with instructions received after such two 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 Trustee shall be entitled to rely on the advice of legal counsel and independent accountants in performing its duties hereunder and shall be deemed to have acted in good faith if it acts in accordance with such advice.

(e)Concurrently herewith, the Agent directs the Trustee and the Trustee is authorized to enter into the Pledge Agreement, the Collection Account Agreement and the Unfunded Exposure Account Agreement. For the avoidance of doubt, all of the Trustee’s rights, protections and immunities provided herein shall apply to the Trustee for any actions taken or omitted to be 
									
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taken under the Pledge Agreement, the Collection Account Agreement and the Unfunded Exposure Account Agreement in such capacity.

Section 10.03 Merger or Consolidation.

Any Person (i) into which the Trustee may be merged or consolidated, (ii) that may result from any merger or consolidation to which the Trustee shall be a party, or (iii) that may succeed to the properties and assets of the Trusteeall or substantially as a whole, which Person in anyall of the foregoing cases executes an agreement of assumption to perform every obligationcorporate trust business of the Trustee hereunder, shall be the successor to the Trustee under this Agreement without further act of any of the parties to this Agreement.

Section 10.04 Trustee Compensation.

As compensation for its Trustee activities hereunder, the Trustee shall be entitled to the Trustee Fees and Trustee Expenses from the Borrower as set forth in the Trustee and Collateral Custodian Fee Letter. The Trustee shall be entitled to receive the Trustee Fees and Trustee Expenses to the extent of funds available therefor pursuant to the provision of Section 2.04; provided that, for the avoidance of doubt, to the extent funds are not so available on any Payment Date to pay such fees or reimburse such expenses incurred during the immediately ended Remittance Period, such payment or reimbursement amount shall be deferred and payable on the next Payment Date on which funds are available therefor pursuant to Section 2.04. The Trustee’s entitlement to receive the Trustee Fees shall cease on the earlier to occur of: (i) its removal as Trustee pursuant to Section 10.05 or (ii) the termination of this Agreement.

Section 10.05 Trustee Removal.

The Trustee may be removed, with or without cause, by the Agent by notice given in writing to the Trustee (the “Trustee Termination Notice”); provided that, notwithstanding its receipt of a Trustee Termination Notice, the Trustee shall continue to act in such capacity until a successor Trustee has been appointed and has agreed to act as Trustee hereunder; provided that

unless it has received instructions from the Servicer or the Agent, as applicable. The Trustee shall in all events have no liability, risk or cost for any action taken pursuant to and in compliance with the instruction of the Agent. In no event shall the Trustee be liable for special, indirect or consequential loss or damage of any kind whatsoever (including but not limited to lost profits), even if the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action.

(i)The Trustee shall not be liable for the acts or omissions of the Collateral Custodian under this Agreement and shall not be required to monitor the performance of the Collateral Custodian. Notwithstanding anything herein to the contrary, unless appointed as successor Collateral Custodian hereunder, the Trustee shall have no duty to perform any of the duties of the Collateral Custodian under this Agreement.

(j)The Trustee and the Bank shall be under no obligation to (i) monitor, determine or verify the unavailability or cessation of LIBOR, SOFR, Term SOFR, Benchmark Replacement (or other applicable interest rate), or whether or when there has occurred, or to give notice to any other transaction party of the occurrence of (except as expressly provided herein), any 
									
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Benchmark Transition Event or any amendment or change required to be made to the applicable interest rate, (ii) select, determine or designate any LIBOR, SOFR, Term SOFR, Benchmark Replacement or other successor or replacement benchmark index, or whether any conditions to the designation of such a rate have been satisfied, (iii) select, determine or designate any Benchmark Replacement Adjustment or other modifier to any replacement or successor index, or (iv) determine whether or what Benchmark Replacement Conforming Changes are necessary or advisable, if any, in connection with any of the foregoing.

(k)The Trustee and the Bank shall not be liable for any inability, failure or delay on its part to perform any of its duties set forth in this Agreement as a result of the unavailability of LIBOR, SOFR, Term SOFR, Benchmark Replacement (or other applicable interest rate) and absence of a designated replacement Interest Rate, including as a result of any inability, delay, error or inaccuracy on the part of any other transaction party, including without limitation the Agent or Required Lenders, in providing any direction, instruction, notice or information required or contemplated by the terms of this Agreement and reasonably required for the performance of such duties.

Section 10.07 Trustee Resignation.

The Trustee may resign at any time by giving not less than 90 days written notice thereof to the Agent (who will provide each Lender with a copy promptly upon receipt thereof) and with the consent of the Agent, which consent shall not be unreasonably withheld. Upon receiving such notice of resignation, the Agent shall promptly appoint a successor trustee or trustees by written instrument, in duplicate, executed by the Agent, one copy of which shall be delivered to the Trustee so resigning and one copy to the successor trustee or trustees, together with a copy to the Borrower, Servicer and Collateral Custodian. If no successor trustee shall have been appointed and an instrument of acceptance by a successor Trustee shall not have been delivered to the Trustee within 45 days after the giving of such notice of resignation, the resigning Trustee may petition any court of competent jurisdiction for the appointment of a

(h)release all or substantially all of the Collateral Portfolio or release any Transaction Document (other than as specifically permitted or contemplated in this Agreement or the applicable Transaction Document) without the written consent of each Lender; or

(i)make material amendments to the definitions of “Collateral Quality Test”, “Minimum Weighted Average Coupon Test”, “Minimum Weighted Average Spread Test” or any definitions therein, in each case, without the written consent of a Supermajority of the Lenders;

(j)make any modification to the definitions of “Borrowing Base”, “Adjusted Borrowing Value”, “Excess Concentration Amount” or any definitions therein, in each case, which would have a material adverse effect on the calculation of the Borrowing Base, without the written consent of each Lender;

provided, further, that (i) any amendment of this Agreement that is solely for the purpose of adding a Lender may be effected with the consent of the Agent, but without the written consent of the Borrower or any Lender, (ii) no such amendment, waiver or modification materially adversely affecting the rights or obligations of the Trustee, the Bank or the Collateral Custodian shall be effective without the written agreement of the Trustee, the Bank or the Collateral Custodian, as applicable, (iii) no amendment, waiver or modification adversely affecting the rights or obligations of any Hedge Counterparty shall be effective without the 
									
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written agreement of such Person, (iv) no amendment, waiver or consent shall, unless in writing and signed by the Swingline Lender in addition to the Lenders required above, affect the rights or duties of the Swingline Lender under this Agreement, (v) no amendment, waiver or consent shall, unless in writing and signed by the Agent, affect the rights or duties of the Agent under this Agreement or any other Transaction Document and (vi) the Agent and the Borrower shall be permitted to amend any provision of the Transaction Documents (and such amendment shall become effective without any further action or consent of any other party to any Transaction Document) if the Agent and the Borrower shall have jointly identified an obvious error or any error or omission of a technical or immaterial nature in any such provision. Any waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. For the avoidance of doubt, in the event that an Event of Default has occurred but has been waived unconditionally and in its entirety in accordance with the terms hereof, such Event of Default shall be deemed to have not “occurred” and references to “after the occurrence of an Event of Default” shall be inapplicable for all purposes in this Agreement or any of the Transaction Documents, except to the extent otherwise provided for in the relevant waiver; provided that any waiver which by its terms becomes effective upon certain conditions precedent being met will not be considered a conditional waiver solely due to the existence of such conditions precedent if all such conditions precedent to effectiveness have been satisfied. Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder, except that the Commitment of such Lender may not be increased or extended without the consent of such Lender.

Notwithstanding anything to the contrary herein or in any other Transaction Document, upon the occurrence of a Benchmark Transition Event with respect to the then-current Benchmark, the Agent and the Borrower may amend this Agreement to replace such

Benchmark with a Benchmark Replacement. Any such amendment with respect to a Benchmark Transition Event will become effective at 5:00 p.m. on the fifth (5th) Business Day after the Agent has delivered such proposed amendment to all Lenders, the Servicers and the Borrower so long as the Agent has not received, by such time, written notice of objection from Lenders comprising the Required Lenders. No replacement of a Benchmark with a Benchmark Replacement pursuant to this Section 11.01 will occur prior to the applicable Benchmark Transition Start Date.

In connection with the implementation of a Benchmark Replacement, the Agent, in consultation with the Borrower, will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Transaction Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement.

The Agent will promptly notify the Borrower, the Servicers and the Lenders (with a copy to the Trustee) of (i) any occurrence of a Benchmark Transition Event, and its related Benchmark Replacement Date and Benchmark Transition Start Date, (ii) the implementation of any Benchmark Replacement, (iii) the effectiveness of any Benchmark Replacement Conforming Changes and (iv) the commencement or conclusion of any Benchmark Unavailability Period. Any determination, decision or election that may be made by the Agent or Lenders pursuant to this Section 11.01 including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any 
									
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decision to take or refrain from taking any action, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party hereto, except, in each case, as expressly required pursuant to this Section 11.01.

During any Benchmark Unavailability Period with respect to a Benchmark (x) all Advances denominated in Dollars shall bear interest at the Base Rate and (y) the Borrower may revoke any Notice of Borrowing to be made or any continuation of an Advance during such Benchmark Unavailability Period.

Section 11.02 Notices, Etc. All notices and other communications hereunder shall, unless otherwise stated herein, be in writing (which shall include facsimile communication and communication by e-mail) and faxed, e-mailed or delivered, to each party hereto, at its address set forth under its name below or at such other address as shall be designated by such party in a written notice to the other parties hereto:

If to the Swingline Lender:

Wells Fargo Bank, National Association
 550 S. Tryon Street, 5th Floor
MAC D1086-051
Charlotte, North Carolina 28202 
Attention: Kevin Sunday 
Facsimile No.: (704) 715-0067
Confirmation No: (704) 374-6230 
If to the Trustee:
U.S. Bank Trust Company, National Association 
One Federal Street, Third Floor
Boston, Massachusetts 02110
Attention: Corporate Trust / CDO Unit – Ares Capital CP Funding     
Facsimile No: (866) 738-6062

If to the Bank:

U.S. Bank National Association 
One Federal Street, Third Floor 
Boston, Massachusetts 02110
Attention: Corporate Trust/CDO Unit–Ares Capital CP Funding 
Facsimile No: (866) 738-6062

If to the Collateral Custodian:

U.S. Bank National Association
 as the Collateral Custodian 
Document Custody Services 
1719 Otis Way
Florence, SC 29501 
Attention: Steven Garrett
Email: steven.garrett@usbank.com 
Facsimile No.: (843) 673-0162
									
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Notices and communications by facsimile and e-mail shall be effective when sent, and notices and communications sent by other means shall be effective when received. The Agent shall, promptly after receipt of any notice from the Trustee, the Borrower, the Transferor, the Equityholder or the Servicer, provide copies thereof to each Lender.

Section 11.03 No Waiver; Remedies. No failure on the part of the Agent, the Trustee or a Secured Party to exercise, and no delay in exercising, any right or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right or remedy hereunder preclude any other or further exercise thereof or the exercise of any other right. The

so purchased or the liabilities or recourse of the Transferor or Equityholder, as applicable, pertaining to such sales.

Section 11.20 Affirmation. Each of the parties hereto confirm, acknowledge and agree that this Agreement is an amendment and restatement of the Original Agreement and that the execution, delivery and performance of this Agreement does not create a novation of any indebtedness existing under the Original Agreement immediately prior to the amendment and restatement on the Restatement Date. The Borrower confirms, acknowledges and agrees that this Agreement benefits from all collateral security executed in connection with the Original Agreement and that the “Obligations” are secured by, and benefit from, all collateral security and guarantees included in the Transaction Documents. The Borrower hereby ratifies and confirms that all of the terms and conditions, representations and covenants contained in the Transaction Documents shall remain in full force and effect after giving effect to the execution and effectiveness of this Agreement.

Section 11.21 Covered Transactions. The Borrower shall not use the proceeds of any Advance in a manner that would cause such credit extension to become a “covered transaction” as defined in Section 23A of the Federal Reserve Act (12 U.S.C. § 371c) and the Federal Reserve Board’s Regulation W (12 C.F.R. Part 223), including any transaction where the proceeds of any Advance are used for the benefit of, or transferred to, an Affiliate of a Lender.

ARTICLE XII. 
COLLATERAL CUSTODIAN
Section 12.01  Designation of Collateral Custodian.

(a)Initial Collateral Custodian. The role of Collateral Custodian with respect to the Required Loan Documents shall be conducted by the Person designated as Collateral Custodian hereunder from time to time in accordance with this Section 12.01. Until the Agent shall give to U.S. Bank National Association a Collateral Custodian Termination Notice, U.S. Bank National Association is hereby appointed as, and hereby accepts such appointment and agrees to perform the duties and obligations of, Collateral Custodian pursuant to the terms hereof.

(b)Successor Collateral Custodian. Upon the Collateral Custodian’s receipt of a Collateral Custodian Termination Notice from the Agent of the designation of a successor Collateral Custodian pursuant to the provisions of Section 12.05, the Collateral Custodian agrees that it will terminate its activities as Collateral Custodian hereunder.

Section 12.02 Duties of Collateral Custodian.
									
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(a)        Appointment. The Borrower and the Agent each hereby appoints U.S. Bank National Association to act as Collateral Custodian, for the benefit of the Secured Parties. The Collateral Custodian hereby accepts such appointment and agrees to perform the duties and obligations with respect thereto set forth herein.

acting) upon the direction of the Agent; provided that the Collateral Custodian shall not be required to take any action hereunder at the request of the Agent, any Secured Party or otherwise if the taking of such action, in the reasonable determination of the Collateral Custodian, (x) shall be in violation of any Applicable Law or contrary to any provisions of this Agreement or (y) shall expose the Collateral Custodian to liability hereunder or otherwise (unless it has received indemnity which it reasonably deems to be satisfactory with respect thereto). In the event the Collateral Custodian requests the consent of the Agent and the Collateral Custodian does not receive a consent (either positive or negative) from the Agent within 10 Business Days of its receipt of such request, then the Agent shall be deemed to have declined to consent to the relevant action.

(iii)The Collateral Custodian shall not be liable for any action taken, suffered or omitted by it in accordance with the request or direction of any Secured Party, to the extent that this Agreement provides such Secured Party the right to so direct the Collateral Custodian, or the Agent. The Collateral Custodian shall not be deemed to have notice or knowledge of any matter hereunder, including an Event of Default, unless a Responsible Officer of the Collateral Custodian has knowledge of such matter or written notice thereof is received by the Collateral Custodian.

(iv)The parties acknowledge that in accordance with the Customer Identification Program (CIP) requirements under the USA PATRIOT Act and its implementing regulations, the Collateral Custodian in order to help fight the funding of terrorism and money laundering, is required to obtain, verify, and record information that identifies each person or legal entity that establishes a relationship or opens an account with the Collateral Custodian. The Borrower hereby agrees that it shall provide the Collateral Custodian with such information as it may request including, but not limited to, the Borrower’s name, physical address, tax identification number and other information that will help the Collateral Custodian to identify and verify the Borrower’s identity (in certain circumstances, the beneficial owners thereof) such as organizational documents, certificate of good standing, license to do business, or other pertinent identifying information.

Section 12.03 Merger or Consolidation.

Any Person (i) into which the Collateral Custodian may be merged or consolidated, (ii) that may result from any merger or consolidation to which the Collateral Custodian shall be a party, or (iii) that may succeed to the properties and assets of the Collateral Custodianall or substantially as a whole, which Person in anyall of the foregoing cases executes an agreement of assumption to perform every obligationdocument custody business of the Collateral Custodian hereunder, shall be the successor to the Collateral Custodian under this Agreement without further act of any of the parties to this Agreement.

Section 12.04 Collateral Custodian Compensation.

									
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As compensation for its Collateral Custodian activities hereunder, the Collateral Custodian shall be entitled to the Collateral Custodian Fees and Collateral Custodian Expenses from the Borrower as set forth in the Trustee and Collateral Custodian Fee Letter. The Collateral
									
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their respective officers thereunto duly authorized, as of the date first above written.

									
	BORROWER:		ARES CAPITAL CP FUNDING LLC

			
			
			
		By:
	
		Name:
	
		Title:
	

[SIGNATURES CONTINUE ON THE FOLLOWING PAGE]
			
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                                      Ares CP Funding Facility
            Loan and Servicing Agreement

                                  
									
	TRUSTEE:		U.S. BANK TRUST COMPANY, 
NATIONAL ASSOCIATION

			
			
			
		By:
	
		Name:
	
		Title:
	

									
	BANK:		U.S. BANK NATIONAL ASSOCIATION
			
			
			
		By:
	
		Name:
	
		Title:
	

									
	COLLATERAL CUSTODIAN:
		U.S. BANK NATIONAL ASSOCIATION
			
			
			
		By:
	
		Name:
	
		Title:
	

			
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                                      Ares CP Funding Facility
            Loan and Servicing Agreement

ANNEX A

Commitments

						
	Lender
	Commitment

	Wells Fargo Bank, National Association
	$900,000,000$1,150,000,000

	Bank of America, N.A.
	$375,000,000
	Sampension Livsforsikring A/S
	$127,000,000
	Arkitekternes Pensionskasse
	$9,000,000
	Pensionskassen for Jordbrugsakademikere og Dyrlæger
	$14,000,000
	Canadian Imperial Bank of Commerce
	$100,000,000

												
				
				
				
			

									
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	Annex A-1

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