Document:

exv10w1

Exhibit 10.1

FORM OF ADVISORY AGREEMENT

INVESTMENT ADVISORY AND MANAGEMENT AGREEMENT

BETWEEN

TPG SPECIALTY LENDING, INC.

AND

TSL ADVISERS, LLC

     This Agreement (the “Agreement”) is made as of [MONTH] __, 2011, by and between TPG SPECIALTY
LENDING, INC., a Delaware corporation (the “Company”), and TSL ADVISERS, LLC, a Delaware
limited liability company (the “Adviser”).

     WHEREAS, the Company is a closed-end management investment company that intends to elect to be
treated as a business development company (“BDC”) under the Investment Company Act of 1940
(the “Investment Company Act”);

     WHEREAS, the Adviser is an investment adviser that is registered under the Investment Advisers
Act of 1940 (the “Advisers Act”); and

     WHEREAS, the Company desires to retain the Adviser to furnish investment advisory services to
the Company on the terms and conditions hereinafter set forth, and the Adviser desires to be
retained to provide such services.

     NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, the parties hereby agree as follows:

1. Duties of the Adviser

     (a) The Company hereby employs the Adviser to act as the investment adviser to the Company and
to manage the investment and reinvestment of the assets of the Company, subject to the supervision
of the Board of Directors of the Company (the “Board”), for the period and upon the terms
herein set forth, (i) in accordance with the investment objective, policies and restrictions that
are set forth in the Company’s registration statement on
Form 10 (File No. 000-54245) initially
filed on January 14, 2011 (and as the same shall be amended from time to time, the “Registration
Statement”), and prior to the filing of the Company’s Registration Statement, in accordance
with the investment objective, policies and restrictions that are set forth in the Company’s
private placement memorandum dated [DATE]; (ii) in accordance with all other applicable federal and
state laws, rules and regulations, and the Company’s charter and by-laws as the same shall be
amended from time to time; and (iii) in accordance with the Investment Company Act. Without
limiting the generality of the foregoing, the Adviser shall, during the term and subject to the
provisions of this Agreement: (i) determine the composition of the

 

 

portfolio of the Company, the nature and timing of the changes therein and the manner of
implementing such changes; (ii) identify/source, research, evaluate and negotiate the structure of
the investments made by the Company; (iii) close and monitor the Company’s investments; (iv)
determine the securities and other assets that the Company will purchase, retain, or sell; (v) use
reasonable endeavors to ensure that the Company’s investments consist mainly of shares, securities
or currencies (or derivative contracts relating thereto), which for the avoidance of doubt may
include loans, notes and other evidences of indebtedness; (vi) perform due diligence on prospective
portfolio companies; and (vii) provide the Company with such other investment advisory, research,
and related services as the Company may, from time to time, reasonably require for the investment
of its funds, including providing operating and managerial assistance to the Company and its
portfolio companies as required. Subject to the supervision of the Board, the Adviser shall have
the power and authority on behalf of the Company to effectuate its investment decisions for the
Company, including the execution and delivery of all documents relating to the Company’s
investments and the placing of orders for other purchase or sale transactions on behalf of the
Company. In the event that the Company determines to acquire debt financing, the Adviser will
arrange for such financing on the Company’s behalf, subject to the oversight and approval of the
Board. If it is necessary or appropriate for the Adviser to make investments on behalf of the
Company through a special purpose vehicle, the Adviser shall have authority to create or arrange
for the creation of such special purpose vehicle and to make such investments through such special
purpose vehicle (in accordance with the Investment Company Act).

     (b) The Adviser hereby accepts such employment and agrees during the term hereof to render the
services described herein for the compensation provided herein.

     (c) The Adviser is hereby authorized to enter into one or more sub-advisory agreements with
other investment advisers (each, a “Sub-Adviser”) pursuant to which the Adviser may obtain
the services of the Sub-Adviser(s) to assist the Adviser in fulfilling its responsibilities
hereunder. Specifically, the Adviser may retain a Sub-Adviser to recommend specific securities or
other investments based upon the Company’s investment objective and policies, and work, along with
the Adviser, in structuring, negotiating, arranging or effecting the acquisition or disposition of
such investments and monitoring investments on behalf of the Company, subject to the oversight of
the Adviser and the Company. The Company shall be responsible for any compensation payable to any
Sub-Adviser. Any sub-advisory agreement entered into by the Adviser shall be in accordance with
the requirements of the Investment Company Act and other applicable federal and state law.

     (d) The Adviser shall for all purposes herein provided be deemed to be an independent
contractor and, except as expressly provided or authorized herein, shall have no authority to act
for or represent the Company in any way or otherwise be deemed an agent of the Company.

     (e) The Adviser shall keep and preserve for the period required by the Investment Company Act
any books and records relevant to the provision of its investment advisory services

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to the Company and shall specifically maintain all books and records in accordance with
Section 31(a) of the Investment Company Act with respect to the Company’s portfolio transactions
and shall render to the Board such periodic and special reports as the Board may reasonably
request. The Adviser agrees that all records that it maintains for the Company are the property of
the Company and will surrender promptly to the Company any such records upon the Company’s request,
provided that the Adviser may retain a copy of such records.

     (f) The Adviser shall be primarily responsible for the execution of any trades in securities
in the Company’s portfolio and the Company’s allocation of brokerage commissions.

2. Company’s Responsibilities and Expenses Payable by the Company 

     (a) Except as otherwise provided herein or in the Administration Agreement, the Adviser shall
be solely responsible for the compensation of its investment professionals and employees and all
overhead expenses of the Adviser (including rent, office equipment and utilities). The Company
will bear all other costs and expenses of its operations, administration and transactions,
including (without limitation) those relating to: organizational expenses (up to an aggregate of
$1,500,000, it being understood and agreed that the Adviser shall bear all organizational expenses
of the Company in excess of such amount); calculating the Company’s net asset value (including the
cost and expenses of any independent valuation firm); expenses, including travel expense, incurred
by the Adviser or payable to third parties performing due diligence on prospective portfolio
companies and, if necessary, enforcing the Company’s rights; sales and purchases of the Company’s
common stock and other securities; fees paid to the Adviser under this Agreement; distributions on
the Company’s shares; administration fees, if any, payable under the Administration Agreement
between the Company and TSL Advisers, LLC (the “Administrator”); debt service and other
costs of borrowings or other financing arrangements; the allocated costs incurred by the Adviser in
providing managerial assistance to those portfolio companies that request it; amounts payable to
third parties relating to, or associated with, making or holding investments; transfer agent and
custodial fees; costs of hedging; commissions and other compensation payable to brokers or dealers;
registration fees; listing fees; federal, state and local taxes; independent director fees and
expenses; costs of preparing and filing reports or other documents required by the Securities and
Exchange Commission and other reporting and compliance costs; the costs of any reports, proxy
statements or other notices to the Company’s stockholders, including printing and mailing costs,
and the costs of any stockholders’ meetings, as well as the compensation of an investor relations
professional responsible for the coordination and administration of the foregoing; the Company’s
fidelity bond; directors and officers/errors and omissions liability insurance, and any other
insurance premiums; indemnification payments; direct costs and expenses of administration,
including audit and legal costs; and all other expenses reasonably incurred by the Company in
connection with making investments and administering the Company’s business. Notwithstanding
anything to the contrary contained herein, the Company shall reimburse the Adviser (or its
affiliates) for an allocable portion of the compensation paid by the Adviser (or its affiliates) to
the Company’s Chief Compliance Officer and Chief Financial Officer (based on a percentage of time
such individuals devote, on an estimated basis, to the business affairs of the

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Company). For the avoidance of doubt, the Adviser shall be solely responsible for any
placement or “finder’s” fees payable to placement agents engaged by the Company or its affiliates
in connection with the offering of securities by the Company.

3. Compensation of the Adviser

     The Company agrees to pay, and the Adviser agrees to accept, as compensation for the services
provided by the Adviser hereunder, a base management fee (the “Management Fee”) and an
incentive fee (the “Incentive Fee”) as hereinafter set forth. The Company shall make any
payments due hereunder to the Adviser or to the Adviser’s designee as the Adviser may otherwise
direct. To the extent permitted by applicable law, the Adviser may elect, or the Company may
adopt, a deferred compensation plan pursuant to which the Adviser may elect to defer all or a
portion of its fees hereunder for a specified period of time.

     (a) For services rendered under this Agreement, the Management Fee will be payable
quarterly in arrears. Management Fees for any partial month or quarter will be appropriately
prorated. The Management fee shall be calculated as follows:

	 	(i)	 	Prior to any initial public offering (“IPO”) of the
Company’s common stock that may occur, the Management Fee shall be calculated
at an annual rate of (i) 0.25% of aggregate committed but undrawn capital and
(ii) 0.75% of aggregate drawn capital (including capital drawn to pay Company
expenses) during any period.
	 
	 	(ii)	 	Following any IPO of the Company’s common stock that may occur,
the Management Fee shall be calculated at an annual rate of 1.5% of the
Company’s gross assets. The post-IPO Management Fee will be calculated based
on the average value of the Company’s gross assets at the end of the two most
recently completed calendar quarters, and appropriately adjusted for any share
issuances or repurchases during the current calendar quarter.

     (b) The Incentive Fee shall consist of two parts, as follows:

	 	(i) 	 	One part will be calculated and payable quarterly in arrears
based on the pre-Incentive Fee net investment income for the immediately
preceding calendar quarter. For this purpose, pre-Incentive Fee net investment
income means dividends (including reinvested dividends), interest and fee
income accrued by the Company during the calendar quarter, minus the Company’s
operating expenses for the quarter (including the Management Fee, expenses
payable under the Administration Agreement to the Administrator, and any
interest expense and dividends paid on any issued and outstanding preferred
stock, but excluding the Incentive Fee). Pre-Incentive Fee net investment
income includes, in the case of investments with a deferred interest feature
(such as original issue discount, debt instruments with pay-in-kind interest
and zero coupon securities), accrued income that the Company has not yet
received in cash. Pre-Incentive Fee net investment income does not include any
realized capital gains, realized capital losses or unrealized capital
appreciation or depreciation. Pre-

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Incentive Fee net investment income, expressed as a rate of return on the
value of the Company’s net assets at the end of the immediately preceding
calendar quarter, will be compared to a “hurdle rate” of 1.5% per quarter
(6% annualized). The Company’s net investment income used to calculate this
part of the Incentive Fee is also included in the amount of its gross assets
used to calculate the 1.5% Management Fee.

The Company will pay the Adviser an Incentive Fee with respect to the
Company’s pre-Incentive Fee net investment income in each calendar quarter
as follows:

	 	•	 	With the exception of the Capital Gains Fee (as defined and
discussed in greater detail below), no Incentive Fee is payable to
the Adviser in any calendar quarter in which the Company’s
pre-Incentive Fee net investment income does not exceed the hurdle
rate of 1.5% for such quarter.
	 
	 	•	 	Following any IPO of the
Company’s common stock that may occur, 100% of the Company’s
pre-Incentive Fee net investment income with respect to that portion
of such pre-Incentive Fee net investment income, if any, that
exceeds the hurdle rate is payable to the Adviser until the Adviser
has received 17.5% of the total pre-Incentive Fee net investment
income for that fiscal quarter. The Company refers to this portion
of the Company’s Pre-Incentive Fee Net Investment Income as the
“catch-up.”
	 
	 	 	 	Prior to any IPO of the Company’s common stock that may occur, 100%
of the Company’s pre-Incentive Fee net investment income with respect
to that portion of such pre-Incentive Fee net investment income, if
any, that exceeds the hurdle rate is payable to the Adviser until the
Adviser has received 15% of the total pre-Incentive Fee net
investment income for that fiscal quarter.
	 
	 	•	 	Following any IPO of the Company’s common stock that may occur,
once the hurdle is reached and the catch-up is achieved, 17.5% of
all remaining pre-Incentive Fee net investment income for that
fiscal quarter is payable to the Adviser.
	 
	 	 	 	Prior to any IPO of the Company’s common stock that may occur, once
the hurdle is reached and the catch-up is achieved, 15% of all
remaining pre-Incentive Fee net investment income for that fiscal
quarter is payable to the Adviser.

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	 	•	 	These calculations will be appropriately prorated for any period
of less than three months and adjusted for any share issuances or
repurchases during the relevant quarter.

(ii) Following any IPO of the Company’s common stock that may occur, the second part
of the Incentive Fee (the “Capital Gains Fee”) will be determined and
payable in arrears as of the end of each fiscal year of the Company (or upon
termination of this Agreement as set forth below), and will equal the Weighted
Percentage (as defined below) of the Company’s realized capital gains, if any, on a
cumulative basis from the inception of the Company to the end of such fiscal year,
computed net of all realized capital losses and unrealized capital depreciation on a
cumulative basis, minus the aggregate amount of any previously paid capital gain
incentive fees for prior periods. The Weighted Percentage is intended to ensure
that, for each fiscal year following an IPO of the Company’s common stock, the
portion of the Company’s realized capital gains that accrued prior to an IPO will be
subject to an incentive fee rate of 15% and the portion of the Company’s realized
capital gains that accrued following an IPO will be subject to an incentive fee rate
of 17.5%, and is determined as follows:

“Weighted Percentage” means a percentage equal to the Pre-IPO Percentage
plus the Post-IPO Percentage.

“Pre-IPO Percentage” means a percentage determined by multiplying 15% by a
fraction, the numerator of which is the Pre-IPO Gain Amount and the denominator of
which is the Total Gain Amount, rounded to the nearest one hundredth percent.

“Post-IPO Percentage” means a percentage determined by multiplying 17.5% by
a fraction, the numerator of which is the Post-IPO Gain Amount and the denominator
of which is the Total Gain Amount, rounded to the nearest one hundredth percent.

“Total Gain Amount” means, for any fiscal year, the aggregate dollar amount
of the Company’s realized capital gains on a cumulative basis from the inception of
the Company to the end of such fiscal year.

“Pre-IPO Gain Amount” means the aggregate dollar amount equal to sum of the
following:

(A) In respect of each capital gain of the Company realized prior to the
occurrence of any IPO, a dollar amount equal to 100% of such capital gain;
and

(B) In respect of each capital gain of the Company realized following the
occurrence of an IPO:

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(I) In the event that the investment giving rise to such capital gain
was made by the Company prior to the occurrence of an IPO, a dollar
amount equal to the portion of such capital gain, if any, that had
accrued on the books of the Company as of the date of any IPO (the
“Marked Amount”); provided, however, if the Marked Amount for
such capital gain exceeds the disposition proceeds realized in
respect of the such capital gain, the dollar amount to be included in
this paragraph (B)(I) in respect of such capital gain shall equal (x)
the disposition proceeds realized in respect of such capital gain
minus (y) the cost basis of such capital gain; or

(II) In the event that the investment giving rise to such capital
gain was made by the Company following the occurrence of an IPO,
zero.

“Post-IPO Gain Amount” means the aggregate dollar amount equal to the sum of
the following:

(A) In respect of each capital gain of the Company realized prior to the
occurrence of an IPO, zero; and

(B) In respect of each capital gain of the Company realized following the
occurrence of an IPO:

(I) In the event that the investment giving rise to such capital gain
was made by the Company prior to the occurrence of an IPO, a dollar
amount equal to (x) disposition proceeds realized in respect of such
capital gain minus (y) the Marked Amount in respect of such capital
gain; provided, however, if the Marked Amount for such capital gain
exceeds the disposition proceeds realized in respect of such capital
gain, the amount to be included in this paragraph (B)(I) in respect
of such capital gain shall be zero; provided, further, if the
investment giving rise to such capital gain was reflected as an
unrealized capital loss on the books of the Company as of the date of
an IPO, the dollar amount to be included in this paragraph (B)(I)
shall equal 100% of such capital gain; or

(II) In the event that the investment giving rise to such capital
gain was made by the Company following the occurrence of an IPO, a
dollar amount equal to 100% of such capital gain.

Prior to any IPO of the Company’s common stock that may occur, the Capital Gains Fee
will equal 15% of the Company’s realized capital gains, if any, on a cumulative
basis from the inception of the Company to the end of such fiscal

7

 

year, computed net of all realized capital losses and unrealized capital
depreciation on a cumulative basis, minus the aggregate amount of any previously
paid capital gain incentive fees for prior period; provided that the Capital Gains
Fee determined as of [DATE] will be calculated for a period of shorter than twelve
calendar months to take into account any realized capital gains computed net of all
realized capital losses and unrealized capital depreciation from inception. In the
event that this Agreement shall terminate as of a date that is not a fiscal year
end, the termination date shall be treated as though it were a fiscal year end for
purposes of calculating and paying a Capital Gains Fee.

Examples of Quarterly Incentive Fee Calculation :

Example 1: Income Related Portion of Incentive Fee (*) (**):

Alternative 1

Assumptions

Investment income (including interest, dividends, fees, etc.) = 2%

Hurdle rate (1) = 1.5%

Management fee (2) = 0.375%

Other expenses (legal, accounting, custodian, transfer agent, etc.) (3) = 0.20%

Pre-Incentive Fee net investment income

   (investment income - (management fee + other expenses)) = 1.425%

Pre-incentive net investment income does not exceed hurdle rate, therefore there is no Incentive Fee.

Alternative 2

Assumptions

Investment income (including interest, dividends, fees, etc.) = 2.375%

Hurdle rate (1) = 1.5%

Management fee (2) = 0.375%

Other expenses (legal, accounting, custodian, transfer agent, etc.) (3) = 0.20%

Pre-Incentive Fee net investment income

   (investment income - (management fee + other expenses)) = 1.8%

Incentive Fee = 100% × pre-Incentive Fee net investment income, subject to the “catch-up” (4)

   = 100% × (1.8% - 1.5%)

   = 0.3%

Alternative 3

Assumptions

Investment income (including interest, dividends, fees, etc.) = 3.5%

Hurdle rate (1) = 1.5%

Management fee (2) = 0.375%

Other expenses (legal, accounting, custodian, transfer agent, etc.) (3) = 0.20%

Pre-Incentive Fee net investment income

   (investment income - (management fee + other expenses)) = 2.925%

Incentive Fee = 17.5% × pre-Incentive Fee net investment income, subject to “catch-up” (4)

Incentive Fee = 100% × “catch-up” + (17.5% ×
(pre-Incentive Fee net investment income - 1.82%))

Catch-up = 1.82% - 1.5% =0.32%

Incentive Fee = (100% × 0.32%) + (17.5% × (2.925% - 1.82%))

   = 0.32% + (17.5% × 1.105%)

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   = 0.32% + 0.193%

   = 0.513%

 

			
	(1)	 	Represents 6.0% annualized hurdle rate.
	 
	(2)	 	Represents 1.5% annualized management fee.
	 
	(3)	 	Excludes organizational and offering expenses.
	 
	(4)	 	The “catch-up” provision is intended to provide the Adviser with an
Incentive Fee of 17.5% on all of the Company’s pre-Incentive Fee net
investment income as if a hurdle rate did not apply when the Company’s net
investment income exceeds 17.5% in any calendar quarter and is not applied
once the Adviser has received 17.5% of investment income in a quarter. The
“catch-up” portion of the Company’s pre-Incentive Fee Net Investment Income
is the portion that exceeds the 1.5% hurdle rate but is less than or equal
to 1.82% in any fiscal quarter.
	 
	(*)	 	This example assumes that an IPO of the Company’s common stock has occurred.
	 
	(**)	 	The hypothetical amount of pre-Incentive Fee net investment income shown is
based on a percentage of total net assets.

Example 2: Capital Gains Portion of Incentive Fee:

Assumptions

	•	 	Year 1: $10 million investment made in Company A
(“Investment A”), $10 million investment
made in Company B (“Investment B”), $10 million
investment made in Company C (“Investment
C”), $10 million investment made in Company D
(“Investment D”) and $10 million investment
made in Company E (“Investment E”).
	 
	•	 	Year 2: Investment A sold for $20 million, fair market value (“FMV”) of Investment B
determined to be $8 million, FMV of Investment C determined to be $12 million, and FMV of
Investments D and E each determined to be $10 million.
	 
	•	 	Year 3: IPO of the Company occurs. At IPO, FMV of Investment of B determined to be $8
million, FMV of Investment C determined to be $14 million, FMV of Investment D determined to
be $14 million and FMV of Investment E determined to be $16 million.
	 
	•	 	Year 4: $10 million investment made in Company F
(“Investment F”), Investment D sold for $12
million, FMV of Investment B determined to be $10 million, FMV of Investment C determined to
be $16 million and FMV of Investment E determined to be $14 million.
	 
	•	 	Year 5: Investment C sold for $20 million, FMV of Investment B determined to be $14 million,
FMV of Investment E determined to be $10 million and FMV of Investment F determined to $12
million.
	 
	•	 	Year 6: Investment B sold for $16 million, FMV of Investment E determined to be $8 million
and FMV of Investment F determined to be $15 million.
	 
	•	 	Year 7: Investment E sold for $8 million and FMV of Investment F determined to be $17 million.
	 
	•	 	Year 8: Investment F sold for $18 million.

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     These assumptions are summarized in the following chart:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Cumulative	 	Cumulative	 	Cumulative
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Unrealized	 	Realized	 	Realized
	 	 	Investment	 	Investment	 	Investment	 	Investment	 	Investment	 	Investment	 	Capital	 	Capital	 	Capital
	 	 	A	 	B	 	C	 	D	 	E	 	F	 	Depreciation	 	Losses	 	Gains
	Year 1

	 	$10 million (cost
basis)
	 	$10 million (cost
basis)
	 	$10 million (cost
basis)
	 	$10 million (cost
basis)
	 	$10 million (cost
basis)
	 	—
	 	—
	 	—
	 	—
	 
	Year 2

	 	$20 million (sale
price)
	 	$8 million FMV
	 	$12 million FMV
	 	$10 million FMV
	 	$10 million FMV
	 	—
	 	$2 million
	 	—
	 	$10 million
	 
	Year 3 (IPO)

	 	—
	 	$8 million FMV at
IPO
	 	$14 million FMV at
IPO
	 	$14 million FMV at
IPO
	 	$16 million FMV at
IPO
	 	—
	 	$2 million
	 	—
	 	$10 million
	 
	Year 4

	 	—
	 	$10 million FMV
	 	$16 million FMV
	 	$12 million (sale
price)
	 	$14 million FMV
	 	$10 million (cost
basis)
	 	—
	 	—
	 	$12 million
	 
	Year 5

	 	—
	 	$14 million FMV
	 	$20 million (sale
price)
	 	—
	 	$10 million FMV
	 	$12 million FMV
	 	—
	 	—
	 	$22 million
	 
	Year 6

	 	—
	 	$16 million (sale
price)
	 	—
	 	—
	 	$8 million FMV
	 	$15 million FMV
	 	$2 million
	 	—
	 	$28 million
	 
	Year 7

	 	—
	 	—
	 	—
	 	—
	 	$8 million (sale
price)
	 	$17 million FMV
	 	—
	 	$2 million
	 	$28 million
	 
	Year 8

	 	—
	 	—
	 	—
	 	—
	 	—
	 	$18 million (sale
price)
	 	—
	 	$2 million
	 	$36 million

     The capital gains portion of the Incentive Fee would be:

	 	•	 	Year 1: None
	 
	 	•	 	Year 2:
	 
	 	 	 	Capital gains Incentive Fee = 15% multiplied by ($10 million realized
capital gains on sale of Investment A less $2 million cumulative
capital depreciation) = $1.2 million
	 
	 	•	 	Year 3:
	 
	 	 	 	Capital Gains Incentive Fee = (Weighted Percentage multiplied by ($10
million cumulative realized capital gains less $2 million cumulative
capital depreciation)) less $1.2 million cumulative Capital Gains Fee
previously paid = $1.2 million less $1.2 million = $0.00
	 
	 	 	 	Weighted Percentage = (15% multiplied by ($10 million Pre-IPO Gain
Amount divided by $10 million Total Gain Amount)) plus (17.5%
multiplied by ($0 Post-IPO Gain Amount divided by $10 million Total
Gain Amount)) = 15%
	 
	 	•	 	Year 4:
	 
	 	 	 	Capital Gains Fee = (Weighted Percentage multiplied by ($12 million
cumulative realized capital gains)) less $1.2 million cumulative
Capital Gains Fee previously paid = $1.8 million less $1.2 million =
$0.6 million
	 
	 	 	 	Weighted Percentage = (15% multiplied by ($12 million Pre-IPO Gain
Amount divided by $12 million Total Gain

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	 	 	 	Amount)) plus (17.5%
multiplied by ($0 Post-IPO Gain Amount divided by $10 million Total
Gain Amount)) = 15%
	 
	 	•	 	Year 5:
	 
	 	 	 	Capital Gains Fee = (Weighted Percentage multiplied by ($22 million
cumulative realized capital gains)) less $1.8 million cumulative
Capital Gains Fee previously paid = $3.45 million less $1.8 million =
$1.65 million
	 
	 	 	 	Weighted Percentage = (15% multiplied by ($16 million Pre-IPO Gain
Amount divided by $22 million Total Gain Amount)) plus (17.5%
multiplied by ($6 Post-IPO Gain Amount divided by $22 million Total
Gain Amount)) = 15.68%
	 
	 	•	 	Year 6:
	 
	 	 	 	Capital Gains Fee = (Weighted Percentage multiplied by ($28 million
cumulative realized capital gains less $2 million cumulative capital
depreciation)) less $3.45 million cumulative Capital Gains Fee
previously paid = $4.18 million less $3.45 million =
$0.73 million
	 
	 	 	 	
Weighted Percentage = (15% multiplied by ($16 million Pre-IPO Gain
Amount divided by $28 million Total Gain Amount)) plus (17.5%
multiplied by ($12 Post-IPO Gain Amount divided by $28 million Total
Gain Amount)) = 16.07%
	 
	 	•	 	Year 7:
	 
	 	 	 	Capital Gains Fee = (Weighted Percentage multiplied by ($28 million
cumulative realized capital gains less $2 million cumulative realized
capital losses)) less $4.18 million cumulative Capital Gains Fee
previously paid = $4.18 million less $4.18 million =
$0.00
	 
	 	 	 	
Weighted Percentage = (15% multiplied by ($16 million Pre-IPO Gain
Amount divided by $28 million Total Gain Amount)) plus (17.5%
multiplied by ($12 Post-IPO Gain Amount divided by $28 million Total
Gain Amount)) = 16.07%
	 
	 	•	 	Year 8:
	 
	 	 	 	Capital Gains Fee = (Weighted Percentage multiplied by ($36 million
cumulative realized capital gains less $2 million cumulative realized
capital losses)) less $4.18 million cumulative Capital Gains Fee
previously paid = $5.57 million less $4.18 million = $1.39 million

	 
	 	 	 	
Weighted Percentage = (15% multiplied by ($16 million Pre-IPO Gain
Amount divided by $36 million Total Gain Amount)) plus (17.5%
multiplied by ($18 Post-IPO Gain Amount divided by $36 million Total
Gain Amount)) = 16.39%

     (c) Any transaction, loan origination, advisory or similar fees (“Transaction Fees”)
received in connection with the Company’s activities or the Adviser’s activities as they relate to
the Company shall be the property of the Company. The parties agree that any Transaction Fees
paid to the members, managers, partners or employees of the Company, the Adviser or their
respective affiliates in connection with the Company’s activities or the Adviser’s activities as

11

 

they relate to the Company shall be promptly remitted to the Company; provided, however,
Transaction Fees received in respect of an investment opportunity in which the Company and one or
more entities (including affiliates of the Adviser) participate shall be allocated to each of the
Company and such entities pro rata in accordance with their respective investments
or proposed investments in such investment opportunity.

4. Covenants of the Adviser

     The Adviser agrees that its activities will at all times be in compliance in all material
respects with all applicable federal and state laws governing its operations and investments.

5. Excess Brokerage Commissions

     The Adviser is hereby authorized, to the fullest extent now or hereafter permitted by law, to
cause the Company to pay a member of a national securities exchange, broker or dealer an amount of
commission for effecting a securities transaction in excess of the amount of commission another
member of such exchange, broker or dealer would have charged for effecting that transaction, if the
Adviser determines in good faith, taking into account such factors as price (including the
applicable brokerage commission or dealer spread), size of order, difficulty of execution, and
operational facilities of the firm and the firm’s risk and skill in positioning blocks of
securities, that such amount of commission is reasonable in relation to the value of the brokerage
and/or research services provided by such member, broker or dealer, viewed in terms of either that
particular transaction or its overall responsibilities with respect to the Company’s portfolio, and
constitutes the best net results for the Company.

6. Investment Team

     The Adviser shall manage the Company’s portfolio through a team of investment professionals
(the “Investment Team”) dedicated primarily to the Company’s business, in cooperation with
the Company’s Chief Executive Officer. The Investment Team shall be comprised of senior personnel
of the Adviser, supported by and with access to the investment professionals, analytical
capabilities and support personnel of the Company and TPG Capital, L.P.

7. Limitations on the Employment of the Adviser

     The services of the Adviser to the Company are not exclusive, and the Adviser may engage in
any other business or render similar or different services to others including, without limitation,
the direct or indirect sponsorship or management of other investment-based accounts or commingled
pools of capital, however structured, having investment objectives similar to those of the Company,
so long as its services to the Company hereunder are not impaired thereby, and nothing in this
Agreement shall limit or restrict the right of any manager, partner,
officer or employee of the Adviser to engage in any other business or to devote his or her
time and attention in part to any other business, whether of a similar or dissimilar nature, or to
receive any fees or compensation in connection therewith (including fees for serving as a director
of, or

12

 

providing consulting services to, one or more of the Company’s portfolio companies, subject
to applicable law). So long as this Agreement or any extension, renewal or amendment remains in
effect, the Adviser shall be the only investment adviser for the Company, subject to the Adviser’s
right to enter into sub-advisory agreements at set forth herein. The Adviser assumes no
responsibility under this Agreement other than to render the services called for hereunder. It is
understood that directors, officers, employees and stockholders of the Company are or may become
interested in the Adviser and its affiliates, as directors, officers, employees, partners,
stockholders, members, managers or otherwise, and that the Adviser and directors, officers,
employees, partners, stockholders, members and managers of the Adviser and its affiliates are or
may become similarly interested in the Company as stockholders or otherwise.

8. Responsibility of Dual Directors, Officers and/or Employees

     If any person who is a manager, partner, officer or employee of the Adviser or the
Administrator is or becomes a director, officer and/or employee of the Company and acts as such in
any business of the Company, then such manager, partner, officer and/or employee of the Adviser or
the Administrator shall be deemed to be acting in such capacity solely for the Company, and not as
a manager, partner, officer or employee of the Adviser or the Administrator or under the control or
direction of the Adviser or the Administrator, even if paid by the Adviser or the Administrator.

9. Conflicts of Interest

     The Adviser agrees that it shall submit to the Board a description of any potential or actual
conflict of interest that the Adviser determines to be material in any transaction or relationship
between the Company and any entity controlled by it, on the one hand, and the Adviser or any of its
affiliates or their respective employees, partners, members, officers or directors, on the other
hand; provided, however, that any transaction that is (i) conducted on an arm’s length
basis and generates Transaction Fees one hundred percent (100%) of which are paid or remitted to
the Company in accordance with Section 3(d) or (ii) made pursuant to an exemptive order obtained by
the Company or the Adviser under the Investment Company Act shall not, in either case, constitute a
conflict of interest for the purposes of this Section 9. Any transaction or relationship required
to be submitted to the Board pursuant to the previous sentence shall promptly be reviewed and
approved or disapproved by the Board, and the Adviser shall supply the Board with all information
and data reasonably requested by the Board to enable it to reach an informed decision with respect
thereto.

10. Limitation of Liability of the Adviser; Indemnification

     The Adviser (and its members, managers, officers, employees, agents, controlling persons and
any other person or entity affiliated with it) shall not be liable to the Company for
any action taken or omitted to be taken by the Adviser in connection with the performance of
any of its duties or obligations under this Agreement or otherwise as an investment adviser of the
Company (except to the extent specified in Section 36(b) of the Investment Company Act

13

 

concerning
loss resulting from a breach of fiduciary duty (as the same is finally determined by judicial
proceedings) with respect to the receipt of compensation for services). As permitted by Article
VIII of the Certificate of Incorporation, the Company shall, to the fullest extent permitted by
law, provide indemnification and the right to the advancement of expenses, to each person who was
or is made a party or is threatened to be made a party to or is involved (including, without
limitation, as a witness) in any actual or threatened action, suit or proceeding, whether civil,
criminal, administrative or investigative, by reason of the fact that he/she is or was a member,
manager, officer, employee, agent, controlling person or any other person or entity affiliated with
the Adviser, including without limitation the Administrator, or is or was a member of the Adviser’s
Investment Review Committee (each such person hereinafter an “Indemnitee”), on the same
general terms set forth in Article VIII of the Certificate of Incorporation, the terms of which are
incorporated herein mutatis mutandi as applied to the Indemnitees.

11. Effectiveness, Duration and Termination of Agreement

     (a) This Agreement shall become effective as of the first date above written. This Agreement
may be terminated at any time, without the payment of any penalty, upon not more than 60 days’
written notice, by the vote of a majority of the outstanding voting securities of the Company or by
the vote of the Company’s directors or by the Adviser. The provisions of Section 10 of this
Agreement shall remain in full force and effect, and the Adviser shall remain entitled to the
benefits thereof, notwithstanding any termination of this Agreement. Further, notwithstanding the
termination or expiration of this Agreement as aforesaid, the Adviser shall be entitled to any
amounts owed under Section 3 through the date of termination or expiration, and Section 10 shall
continue in force and effect and apply to the Adviser and its representatives as and to the extent
applicable.

     (b) This Agreement shall continue in effect for two years from the date hereof, or to the
extent consistent with the requirements of the Investment Company Act, from the date of the
Company’s election to be regulated as a BDC under the Investment Company Act, and thereafter shall
continue automatically for successive annual periods, provided that such continuance is
specifically approved at least annually by (A) the vote of the Board, or by the vote of a majority
of the outstanding voting securities of the Company and (B) the vote of a majority of the Company’s
directors who are not parties to this Agreement or “interested persons” (as such term is defined in
Section 2(a)(19) of the Investment Company Act) of any such party, in accordance with the
requirements of the Investment Company Act.

     (c) This Agreement will automatically terminate in the event of its “assignment” (as such term
is defined for purposes of Section 15(a)(4) of the Investment Company Act).

12. Notices

     Any notice under this Agreement shall be given in writing, addressed and delivered or mailed,
postage prepaid, to the other party at its principal office.

14

 

13. Amendments

     This Agreement may be amended by mutual consent, but the consent of the Company must be
obtained in conformity with the requirements of the Investment Company Act.

14. Entire Agreement; Governing Law

     This Agreement contains the entire agreement of the parties and supersedes all prior
agreements, understandings and arrangements with respect to the subject matter hereof. This
Agreement shall be construed in accordance with the laws of the State of Delaware and in accordance
with the applicable provisions of the Investment Company Act. In such case, to the extent the
applicable laws of the State of Delaware, or any of the provisions herein, conflict with the
provisions of the Investment Company Act, the latter shall control.

[Remainder of page intentionally left blank.]

15

 

* * *

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed on the
date above written.

	 	 	 	 	 
	 	TPG SPECIALTY LENDING, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	TSL ADVISERS, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:exv10w3

Exhibit 10.3

FORM OF INDEMNIFICATION AGREEMENT

          This Indemnification Agreement, dated as of ___, 20__, is made by and between TPG Specialty
Lending, Inc., a Delaware corporation (the “Corporation”) and [name] (the “Indemnitee”).

RECITALS

          A. The Corporation recognizes that competent and experienced persons are increasingly
reluctant to serve or to continue to serve as directors or officers of corporations unless they are
protected by comprehensive liability insurance or indemnification, or both, due to increased
exposure to litigation costs and risks resulting from their service to such corporations, and due
to the fact that the exposure frequently bears no reasonable relationship to the compensation of
such directors and officers;

          B. The statutes and judicial decisions regarding the duties of directors and officers are
often difficult to apply, ambiguous, or conflicting, and therefore fail to provide such directors
and officers with adequate, reliable knowledge of legal risks to which they are exposed or
information regarding the proper course of action to take;

          C. The Corporation and Indemnitee recognize that plaintiffs often seek damages in such large
amounts and the costs of litigation may be so enormous (whether or not the case is meritorious),
that the defense and/or settlement of such litigation is often beyond the personal resources of
directors and officers;

          D. The Corporation believes that it is unfair for its directors and officers to assume the
risk of huge judgments and other expenses which may occur in cases in which the director or officer
received no personal profit and in cases where the director or officer was not culpable;

          E. The Corporation’s By-laws and Certificate of Incorporation require the Corporation to
indemnify its directors and officers to the fullest extent permitted by the Delaware General
Corporation Law (the “DGCL”), under which the Corporation is organized. The Certificate of
Incorporation expressly provides that the indemnification provisions set forth therein are not
exclusive, and contemplate that contracts may be entered into between the Corporation and its
directors and officers with respect to indemnification;

          F. Section 145 of the DGCL (“Section 145”) empowers the Corporation to indemnify its officers,
directors, employees and agents by agreement and to indemnify persons who serve, at the request of
the Corporation, as the directors, officers, employees or agents of other corporations or
enterprises, and expressly provides that the indemnification provided by Section 145 is not
exclusive;

          G. Section 102(b)(7) of the DGCL allows a corporation to include in its certificate of
incorporation a provision limiting or eliminating the personal liability of a director for monetary
damages in respect of claims by shareholders and corporations for breach of certain fiduciary
duties, and the Corporation has so provided in its Certificate of Incorporation that each Director
shall be exculpated from such liability to the maximum extent permitted by law;

 

 

          H. The Board of Directors has determined that contractual indemnification as set forth herein
is not only reasonable and prudent but, together with the liability insurance coverage entered into
by the Corporation, also promotes the best interests of the Corporation and its stockholders;

          I. The Corporation desires and has requested Indemnitee to serve or continue to serve as a
director or officer of the Corporation free from undue concern for unwarranted claims for damages
arising out of or related to such services to the Corporation; and

          J. Indemnitee is willing to serve, continue to serve or to provide additional service for or
on behalf of the Corporation on the condition that he is furnished the indemnity provided for
herein.

          K. [Indemnitee has certain rights to indemnification and/or insurance provided by TPG Capital,
L.P. (“TPG”) and its affiliates (other than the Corporation), which Indemnitee and TPG intend to be
secondary to the primary obligation of the Corporation to indemnify Indemnitee as provided herein,
with the Corporation’s acknowledgement and agreement to the foregoing being a material condition to
Indemnitee’s willingness to serve as a director or officer of the Corporation.]

AGREEMENT

          NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below, and
other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged,
the parties hereto, intending to be legally bound, hereby agree as follows:

     Section 1. Generally.

     To the fullest extent permitted by the laws of the State of Delaware:

          (a) The Corporation shall indemnify Indemnitee if Indemnitee was or is a party or is
threatened to be made a party to any threatened, pending or completed action, suit or proceeding,
whether civil, criminal, administrative or investigative, by reason of the fact that Indemnitee is
or was or has agreed to serve at the request of the Corporation as a director, officer, employee or
agent of the Corporation, or while serving as a director or officer of the Corporation, is or was
serving or has agreed to serve at the request of the Corporation as a director, officer, employee
or agent (which, for purposes hereof, shall include a trustee, partner or manager or similar
capacity) of another corporation, partnership, joint venture, trust, employee benefit plan or other
enterprise, or by reason of any action alleged to have been taken or omitted in such capacity. For
the avoidance of doubt, the foregoing indemnification obligation includes, without limitation,
claims for monetary damages against Indemnitee in respect of an alleged breach of fiduciary duties,
to the fullest extent permitted under Section 102(b)(7) of the DGCL as in existence on the date
hereof.

 

			

2

 

          (b) The indemnification provided by this Section 1 shall be from and against expenses
(including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with such action,
suit or proceeding and any appeal therefrom, but shall only be provided if Indemnitee acted in good
faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests
of the Corporation, and, with respect to any criminal action, suit or proceeding, had no reasonable
cause to believe Indemnitee’s conduct was unlawful.

          (c) Notwithstanding the foregoing provisions of this Section 1, in the case of any threatened,
pending or completed action or suit by or in the right of the Corporation to procure a judgment in
its favor by reason of the fact that Indemnitee is or was a director, officer, employee or agent of
the Corporation, or while serving as a director or officer of the Corporation, is or was serving or
has agreed to serve at the request of the Corporation as a director, officer, employee or agent of
another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise,
no indemnification shall be made in respect of any claim, issue or matter as to which Indemnitee
shall have been adjudged to be liable to the Corporation unless, and only to the extent that, the
Delaware Court of Chancery or the court in which such action or suit was brought shall determine
upon application that, despite the adjudication of liability but in view of all the circumstances
of the case, Indemnitee is fairly and reasonably entitled to indemnity for such expenses which the
Delaware Court of Chancery or such other court shall deem proper.

          (d) The termination of any action, suit or proceeding by judgment, order, settlement,
conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a
presumption that Indemnitee did not act in good faith and in a manner which Indemnitee reasonably
believed to be in or not opposed to the best interests of the Corporation, and, with respect to any
criminal action or proceeding, had reasonable cause to believe that Indemnitee’s conduct was
unlawful.

          Section 2. Successful Defense; Partial Indemnification. To the extent that Indemnitee
has been successful on the merits or otherwise in defense of any action, suit or proceeding
referred to in Section 1 hereof or in defense of any claim, issue or matter therein, Indemnitee
shall be indemnified against expenses (including attorneys’ fees) actually and reasonably incurred
in connection therewith. For purposes of this Agreement and without limiting the foregoing, if any
action, suit or proceeding is disposed of, on the merits or otherwise (including a disposition
without prejudice), without (i) the disposition being adverse to Indemnitee, (ii) an adjudication
that Indemnitee was liable to the Corporation, (iii) a plea of guilty or nolo contendere by
Indemnitee, (iv) an adjudication that Indemnitee did not act in good faith and in a manner
Indemnitee reasonably believed to be in or not opposed to the best interests of the Corporation,
and (v) with respect to any criminal proceeding, an adjudication that Indemnitee had reasonable
cause to believe Indemnitee’s conduct was unlawful, Indemnitee shall be considered for the
purposes hereof to have been wholly successful with respect thereto.

          If Indemnitee is entitled under any provision of this Agreement to indemnification by the
Corporation for some or a portion of the expenses (including attorneys’ fees), judgments, fines or
amounts paid in settlement actually and reasonably incurred by Indemnitee or on Indemnitee’s
behalf in connection with any action, suit, proceeding or investigation, or in defense of any
claim, issue or matter therein, and any appeal therefrom but

3

 

not, however, for the total amount
thereof, the Corporation shall nevertheless indemnify Indemnitee for the portion of such expenses
(including attorneys’ fees), judgments, fines or amounts paid in settlement to which Indemnitee is
entitled.

     Section 3. Determination That Indemnification Is Proper. Any indemnification
hereunder shall (unless otherwise ordered by a court) be made by the Corporation unless a
determination is made that indemnification of such person is not proper in the circumstances
because he or she has not met the applicable standard of conduct set forth in Section 1(b) hereof.
Any such determination shall be made (i) by a majority vote of the directors who are not parties
to the action, suit or proceeding in question (“Non-conflicted Directors”), even if less than a
quorum, (ii) by a majority vote of a committee of Non-conflicted Directors designated by majority
vote of Non-conflicted Directors, even if less than a quorum, (iii) by a majority vote of a quorum
of the outstanding shares of stock of all classes entitled to vote on the matter, voting as a
single class, which quorum shall consist of stockholders who are not at that time parties to the
action, suit or proceeding in question, (iv) by independent legal counsel, or (v) by a court of
competent jurisdiction.

     Section 4. Advance Payment of Expenses; Notification and Defense of Claim.

          (a) Expenses (including attorneys’ fees) incurred by Indemnitee in defending a threatened or
pending civil, criminal, administrative or investigative action, suit or proceeding, or in
connection with an enforcement action pursuant to Section 5(b), shall be paid by the Corporation in
advance of the final disposition of such action, suit or proceeding within thirty (30) days after
receipt by the Corporation of (i) a statement or statements from Indemnitee requesting such advance
or advances from time to time, and (ii) an undertaking by or on behalf of Indemnitee to repay such
amount or amounts, only if, and to the extent that, it shall ultimately be determined that
Indemnitee is not entitled to be indemnified by the Corporation as authorized by this Agreement or
otherwise. Such undertaking shall be accepted without reference to the financial ability of
Indemnitee to make such repayment. Advances shall be unsecured and interest-free. Notwithstanding
anything in this Section 4 to the contrary, the Corporation shall not advance any such expenses
incurred by an Indemnitee in an action, suit or proceeding brought against such Indemnitee by
holders of a majority of the shares the Corporation’s common stock then outstanding. The majority
of the Non-conflicted Directors may, in the manner set forth above, and upon approval of such
Indemnitee, authorize the Corporation’s counsel to represent such person, in any such action, suit
or proceeding, whether or not the Corporation is a party to such action, suit or proceeding.

          (b) Promptly after receipt by Indemnitee of notice of the commencement of any action, suit or
proceeding, Indemnitee shall, if a claim thereof is to be made against the Corporation hereunder,
notify the Corporation of the commencement thereof. The failure to promptly notify the Corporation
of the commencement of the action, suit or proceeding, or Indemnitee’s request for indemnification,
will not relieve the Corporation from any liability that it may have to Indemnitee hereunder,
except to the extent the Corporation is materially prejudiced in its defense of such action, suit
or proceeding as a result of such failure.

          (c) In the event the Corporation shall be obligated to pay the expenses of Indemnitee with
respect to an action, suit or proceeding, as provided in this Agreement, the Corporation, if
appropriate, shall be entitled to assume the defense of such action, suit or

4

 

proceeding, with counsel reasonably acceptable to Indemnitee, upon the delivery to Indemnitee of written notice of
its election to do so. After delivery of such notice, approval of such counsel by Indemnitee and
the retention of such counsel by the Corporation, the Corporation will not be
liable to Indemnitee under this Agreement for any fees of counsel subsequently incurred by
Indemnitee with respect to the same action, suit or proceeding, provided that Indemnitee shall have
the right to employ Indemnitee’s own counsel in such action, suit or proceeding at Indemnitee’s
expense. If (i) the employment of counsel by Indemnitee has been previously authorized in writing
by the Corporation, (ii) counsel to the Corporation or Indemnitee shall have reasonably concluded
that there may be a conflict of interest or position, or reasonably believes that a conflict is
likely to arise, on any significant issue between the Corporation and Indemnitee in the conduct of
any such defense or (iii) the Corporation shall not, in fact, have employed counsel to assume the
defense of such action, suit or proceeding, then the fees and expenses of Indemnitee’s counsel
shall be at the expense of the Corporation, except as otherwise expressly provided by this
Agreement. The Corporation shall not be entitled, without the consent of Indemnitee, to assume the
defense of any claim brought by or in the right of the Corporation or as to which counsel for the
Corporation or Indemnitee shall have reasonably made the conclusion provided for in clause (ii)
above.

          (d) Notwithstanding any other provision of this Agreement to the contrary, to the extent that
Indemnitee is, by reason of Indemnitee’s corporate status with respect to the Corporation or any
corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which
Indemnitee is or was serving or has agreed to serve at the request of the Corporation, a witness or
otherwise participates in any action, suit or proceeding (on behalf of the Corporation or such
other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise) at
a time when Indemnitee is not a party in the action, suit or proceeding, the Corporation shall
indemnify Indemnitee against all expenses (including attorneys’ fees) actually and reasonably
incurred by Indemnitee or on Indemnitee’s behalf in connection therewith.

     Section 5. Procedure for Indemnification

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

          (b) The Corporation’s determination whether to grant Indemnitee’s indemnification request
shall be made promptly, and in any event within 60 days following receipt of a request for
indemnification pursuant to Section 5(a). The right to indemnification as granted by Section 1 of
this Agreement shall be enforceable by Indemnitee in any court of competent jurisdiction if the
Corporation denies such request, in whole or in part, or fails to respond within such 60-day
period. It shall be a defense to any such action (other than an action brought to enforce a claim
for the advance of costs, charges and expenses under Section 4 hereof where the required
undertaking, if any, has been received by the Corporation) that Indemnitee has not met the standard
of conduct set forth in Section 1 hereof, but the burden of proving such defense by clear and
convincing evidence shall be on the Corporation. Neither the failure of the Corporation (including
its Board of Directors or one of its committees, its independent legal

5

 

counsel, and its stockholders) to have made a determination prior to the commencement of such action that
indemnification of Indemnitee is proper in the circumstances because Indemnitee has met the
applicable standard of conduct set forth in Section 1 hereof, nor the fact that there has
been an actual determination by the Corporation (including its Board of Directors or one of its
committees, its independent legal counsel, and its stockholders) that Indemnitee has not met such
applicable standard of conduct, shall be a defense to the action or create a presumption that
Indemnitee has or has not met the applicable standard of conduct. The Indemnitee’s expenses
(including attorneys’ fees) incurred in connection with successfully establishing Indemnitee’s
right to indemnification, in whole or in part, in any such proceeding or otherwise shall also be
indemnified by the Corporation.

          (c) The Indemnitee shall be presumed to be entitled to indemnification under this Agreement
upon submission of a request for indemnification pursuant to this Section 5, and the Corporation
shall have the burden of proof in overcoming that presumption in reaching a determination contrary
to that presumption. Such presumption shall be used as a basis for a determination of entitlement
to indemnification unless the Corporation overcomes such presumption by clear and convincing
evidence.

     Section 6. Insurance and Subrogation.

          (a) The Corporation may purchase and maintain insurance on behalf of Indemnitee who is or was
or has agreed to serve at the request of the Corporation as a director or officer of the
Corporation, or is or was serving at the request of the Corporation as a director, officer,
employee or agent of another corporation, partnership, joint venture, trust, employee benefit plan
or other enterprise against any liability asserted against, and incurred by, Indemnitee or on
Indemnitee’s behalf in any such capacity, or arising out of Indemnitee’s status as such, whether or
not the Corporation would have the power to indemnify Indemnitee against such liability under the
provisions of this Agreement. If the Corporation has such insurance in effect at the time the
Corporation receives from Indemnitee any notice of the commencement of a proceeding, the
Corporation shall give prompt notice of the commencement of such proceeding to the insurers in
accordance with the procedures set forth in the policy. The Corporation shall thereafter take all
necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all
amounts payable as a result of such proceeding in accordance with the terms of such policy.

          (b) In the event of any payment by the Corporation under this Agreement, the Corporation shall
be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee with
respect to any insurance policy, who shall execute all papers required and take all action
necessary to secure such rights, including execution of such documents as are necessary to enable
the Corporation to bring suit to enforce such rights in accordance with the terms of such insurance
policy. The Corporation shall pay or reimburse all expenses actually and reasonably incurred by
Indemnitee in connection with such subrogation.

          (c) The Corporation shall not be liable under this Agreement to make any payment of amounts
otherwise indemnifiable hereunder (including, but not limited to, judgments, fines, ERISA excise
taxes or penalties, and amounts paid in settlement) if and to the extent that Indemnitee has
otherwise actually received such payment under this Agreement or any insurance policy, contract,
agreement or otherwise.

6

 

     Section 7. Certain Definitions. For purposes of this Agreement, the following
definitions shall apply:

          (a) The term “action, suit or proceeding” shall be broadly construed and shall include,
without limitation, the investigation, preparation, prosecution, defense, settlement, arbitration
and appeal of, and the giving of testimony in, any threatened, pending or completed claim, action,
suit or proceeding, whether civil, criminal, administrative or investigative.

          (b) The term “by reason of the fact that Indemnitee is or was a director, officer, employee or
agent of the Corporation, or while serving as a director or officer of the Corporation, is or was
serving or has agreed to serve at the request of the Corporation as a director, officer, employee
or agent of another corporation, partnership, joint venture, trust, employee benefit plan or other
enterprise” shall be broadly construed and shall include, without limitation, any actual or alleged
act or omission to act.

          (c) The term “expenses” shall be broadly and reasonably construed and shall include, without
limitation, all direct and indirect costs of any type or nature whatsoever (including, without
limitation, all attorneys’ fees and related disbursements, appeal bonds, other out-of-pocket costs
and reasonable compensation for time spent by Indemnitee for which Indemnitee is not otherwise
compensated by the Corporation or any third party, provided that the rate of compensation and
estimated time involved is approved by the Board, which approval shall not be unreasonably
withheld), actually and reasonably incurred by Indemnitee in connection with either the
investigation, defense or appeal of a proceeding or establishing or enforcing a right to
indemnification under this Agreement, Section 145 of the General Corporation Law of the State of
Delaware or otherwise.

          (d) The term “judgments, fines and amounts paid in settlement” shall be broadly construed and
shall include, without limitation, all direct and indirect payments of any type or nature
whatsoever (including, without limitation, all penalties and amounts required to be forfeited or
reimbursed to the Corporation), as well as any penalties or excise taxes assessed on a person with
respect to an employee benefit plan).

          (e) The term “Corporation” shall include, without limitation and in addition to the resulting
corporation, any constituent corporation (including any constituent of a constituent) absorbed in a
consolidation or merger which, if its separate existence had continued, would have had power and
authority to indemnify its directors, officers, and employees or agents, so that any person who is
or was a director, officer, employee or agent of such constituent corporation, or is or was serving
at the request of such constituent corporation as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust, employee benefit plan or other enterprise, shall
stand in the same position under the provisions of this Agreement with respect to the resulting or
surviving corporation as he or she would have with respect to such constituent corporation if its
separate existence had continued.

          (f) The term “other enterprises” shall include, without limitation, employee benefit plans.

7

 

          (g) The term “serving at the request of the Corporation” shall include, without limitation,
any service as a director, officer, employee or agent of the Corporation which imposes
duties on, or involves services by, such director, officer, employee or agent with respect to an
employee benefit plan, its participants or beneficiaries.

          (h) A person who acted in good faith and in a manner such person reasonably believed to be in
the interest of the participants and beneficiaries of an employee benefit plan shall be deemed to
have acted in a manner “not opposed to the best interests of the Corporation” as referred to in
this Agreement.

     Section 8. Limitation on Indemnification. Notwithstanding any other provision herein
to the contrary, the Corporation shall not be obligated pursuant to this Agreement:

          (a) Claims Initiated by Indemnitee. To indemnify or advance expenses to Indemnitee
with respect to an action, suit or proceeding (or part thereof) initiated by Indemnitee, except
with respect to an action, suit or proceeding brought to establish or enforce a right to
indemnification (which shall be governed by the provisions of Section 8(b) of this Agreement),
unless such action, suit or proceeding (or part thereof) was authorized or consented to by the
Board of Directors of the Corporation.

          (b) Action for Indemnification. To indemnify Indemnitee for any expenses incurred by
Indemnitee with respect to any action, suit or proceeding instituted by Indemnitee to enforce or
interpret this Agreement, unless Indemnitee is successful in establishing Indemnitee’s right to
indemnification in such action, suit or proceeding, in whole or in part (and only to that extent),
or unless and to the extent that the court in such action, suit or proceeding shall determine that,
despite Indemnitee’s failure to establish their right to indemnification, Indemnitee is entitled to
indemnity for such expenses; provided, however, that nothing in this Section 8(b) is intended to
limit the Corporation’s obligation with respect to the advancement of expenses to Indemnitee in
connection with any such action, suit or proceeding instituted by Indemnitee to enforce or
interpret this Agreement, as provided in Section 4 hereof.

          (c) Section 16 Violations. To indemnify Indemnitee on account of any proceeding with
respect to which final judgment is rendered against Indemnitee for payment or an accounting of
profits arising from the purchase or sale by Indemnitee of securities in violation of Section 16(b)
of the Securities Exchange Act of 1934, as amended, or any similar successor statute.

          (d) Non-compete and Non-disclosure. To indemnify Indemnitee in connection with
proceedings or claims involving the enforcement of non-compete and/or non-disclosure agreements or
the non-compete and/or non-disclosure provisions of employment, consulting or similar agreements
the Indemnitee may be a party to with the Corporation, or any affiliate or subsidiary of the
Corporation or any other applicable foreign or domestic corporation, partnership, joint venture,
trust or other enterprise, if any.

     Section 9. Certain Settlement Provisions. The Corporation shall have no obligation
to indemnify Indemnitee under this Agreement for amounts paid in settlement of any action, suit or
proceeding without the Corporation’s prior written consent, which shall not be unreasonably
withheld. The Corporation shall not settle any action, suit or proceeding in any manner that

8

 

would impose any fine or other obligation on Indemnitee, including an admission of culpability
on behalf of Indemnitee, without Indemnitee’s prior written consent, which shall not be
unreasonably withheld.

     Section 10. Savings Clause. If any provision or provisions of this Agreement shall be
invalidated on any ground by any court of competent jurisdiction, then the Corporation shall
nevertheless indemnify Indemnitee as to costs, charges and expenses (including attorneys’ fees),
judgments, fines and amounts paid in settlement with respect to any action, suit or proceeding,
whether civil, criminal, administrative or investigative, including an action by or in the right of
the Corporation, to the full extent permitted by any applicable portion of this Agreement that
shall not have been invalidated and to the full extent permitted by applicable law.

     Section 11. Contribution. In order to provide for just and equitable contribution in
circumstances in which the indemnification provided for herein is held by a court of competent
jurisdiction to be unavailable to Indemnitee in whole or in part, it is agreed that, in such event,
the Corporation shall, to the fullest extent permitted by law, contribute to the payment of
Indemnitee’s costs, charges and expenses (including attorneys’ fees), judgments, fines and amounts
paid in settlement with respect to any action, suit or proceeding, whether civil, criminal,
administrative or investigative, in an amount that is just and equitable in the circumstances,
taking into account, among other things, contributions by other directors and officers of the
Corporation or others pursuant to indemnification agreements or otherwise; provided, that, without
limiting the generality of the foregoing, such contribution shall not be required where such
holding by the court is due to (i) the failure of Indemnitee to meet the standard of conduct set
forth in Section 1 hereof, or (ii) any limitation on indemnification set forth in Section 6(c), 8
or 9 hereof.

     Section 12. Form and Delivery of Communications. Any notice, request or other
communication required or permitted to be given to the parties under this Agreement shall be in
writing and either delivered in person or sent by telecopy, telex, telegram, overnight mail or
courier service, or certified or registered mail, return receipt requested, postage prepaid, to
the parties at the following addresses (or at such other addresses for a party as shall be
specified by like notice):

          If to the Corporation:

Ronald Cami, Esq.

TPG Capital, L.P.

301 Commerce Street

Suite 3300

Fort Worth, TX 76102

          If to Indemnitee:

[name]

[address]

     Section 13. Subsequent Legislation. If the General Corporation Law of Delaware is
amended after adoption of this Agreement to expand further the indemnification permitted to

9

 

directors or officers, then the Corporation shall indemnify Indemnitee to the fullest extent
permitted by the General Corporation Law of Delaware, as so amended.

     Section 14. Nonexclusivity.

          [(a)] The provisions for indemnification and advancement of expenses set forth in this
Agreement shall not be deemed exclusive of any other rights which Indemnitee may have under any
provision of law, the Corporation’s Certificate of Incorporation or By-laws, in any court in which
a proceeding is brought, the vote of the Corporation’s stockholders or Non-conflicted Directors,
other agreements or otherwise, and Indemnitee’s rights hereunder shall continue after Indemnitee
has ceased acting as an agent of the Corporation and shall inure to the benefit of the heirs,
executors and administrators of Indemnitee. To the extent there is an inconsistency between any
provision of this Agreement and the Corporation’s Certificate of Incorporation or By-laws, it is
the intent of the Corporation and the Indemnitee that the Indemnitee enjoy the protection of the
provision that offers the greater benefits, regardless of whether that provision is in this
Agreement or the Corporation’s Certificate of Incorporation or By-laws. Furthermore, no amendment
or alteration of the Corporation’s Certificate of Incorporation or By-laws or any other agreement
shall adversely affect the rights provided to Indemnitee under this Agreement.

          [(b) The Corporation hereby acknowledges that Indemnitee has certain rights to
indemnification, advancement of expenses and/or insurance provided by TPG and certain of its
affiliates (other than the Corporation) (collectively, the “TPG Indemnitors”). Notwithstanding
anything in this Agreement to the contrary, the Corporation hereby agrees (i) that it is the
indemnitor of first resort (i.e., its obligations to Indemnitee are primary and any obligation of
the TPG Indemnitors to advance expenses or to provide indemnification for the same expenses or
liabilities incurred by Indemnitee are secondary), (ii) that it shall be required to advance the
full amount of expenses incurred by Indemnitee and shall be liable for the full amount of all
expenses, judgments, fines and amounts paid in settlement to the extent legally permitted and as
required by the terms of this Agreement and the Corporation’s By-laws or Articles of Incorporation
(or any other agreement between the Corporation and Indemnitee), without regard to any rights
Indemnitee may have against the TPG Indemnitors, and (iii) that it irrevocably waives, relinquishes
and releases the TPG Indemnitors from any and all claims against the TPG Indemnitors for
contribution, subrogation or any other recovery of any kind in respect thereof. The Corporation
further agrees that no advancement or payment by the TPG Indemnitors on behalf of Indemnitee with
respect to any claim for which Indemnitee has sought indemnification from the Corporation shall
affect the foregoing and the TPG Indemnitors shall have a right of contribution and/or be
subrogated to the extent of such advancement or payment to all of the rights of recovery of
Indemnitee against the Corporation. The Corporation and Indemnitee agree that the TPG Indemnitors
are express third-party beneficiaries of the terms of this Section 14(b).]

     Section 15. Enforcement. The Corporation shall be precluded from asserting in any
judicial proceeding that the procedures and presumptions of this Agreement are not valid, binding
and enforceable. The Corporation agrees that its execution of this Agreement shall constitute a stipulation by which it shall be irrevocably bound in any court of competent

 

			

10

 

jurisdiction in which a proceeding by Indemnitee for enforcement of his rights hereunder shall have
been commenced, continued or appealed, that its obligations set forth in this Agreement are unique
and special, and that failure of the Corporation to comply with the provisions of this Agreement
will cause irreparable and irremediable injury to Indemnitee, for which a remedy at law will be
inadequate. As a result, in addition to any other right or remedy Indemnitee may have at law or in
equity with respect to breach of this Agreement, Indemnitee shall be entitled to injunctive or
mandatory relief directing specific performance by the Corporation of its obligations under this
Agreement.

     Section 16. Interpretation of Agreement. It is understood that the parties hereto
intend this Agreement to be interpreted and enforced so as to provide indemnification to Indemnitee
to the fullest extent now or hereafter permitted by law.

     Section 17. Entire Agreement. This Agreement and the documents expressly referred to
herein constitute the entire agreement between the parties hereto with respect to the matters
covered hereby, and any other prior or contemporaneous oral or written understandings or agreements
with respect to the matters covered hereby are expressly superceded by this Agreement.

     Section 18. Modification and Waiver. No supplement, modification or amendment of this
Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of
any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other
provision hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

     Section 19. Successor and Assigns. All of the terms and provisions of this Agreement
shall be binding upon, shall inure to the benefit of and shall be enforceable by the parties hereto
and their respective successors, assigns, heirs, executors, administrators and legal
representatives. The Corporation shall require and cause any direct or indirect successor (whether
by purchase, merger, consolidation or otherwise) to all or substantially all of the business or
assets of the Corporation, by written agreement in form and substance reasonably satisfactory to
Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the
same extent that the Corporation would be required to perform if no such succession had taken
place.

     Section 20. Service of Process and Venue. For purposes of any claims or proceedings
to enforce this agreement, the Corporation consents to the jurisdiction and venue of any federal
or state court of competent jurisdiction in the states of Delaware and Missouri, and waives and
agrees not to raise any defense that any such court is an inconvenient forum or any similar claim.

     Section 21. Supercedes Prior Agreement. This Agreement supercedes any prior
indemnification agreement between Indemnitee and the Corporation or its predecessors.

     Section 22. Governing Law. This Agreement shall be governed exclusively by and
construed according to the laws of the State of Delaware, as applied to contracts between Delaware
residents entered into and to be performed entirely within Delaware. If a court of competent
jurisdiction shall make a final determination that the provisions of the law of any state

11

 

other than Delaware govern indemnification by the Corporation of its officers and directors, then
the indemnification provided under this Agreement shall in all instances be enforceable to the
fullest extent permitted under such law, notwithstanding any provision of this Agreement to the
contrary.

     Section 23. Effect of Investment Company Act. The Corporation shall not be liable
under this Agreement to make any payment of the amounts otherwise indemnifiable or payable or
reimbursable as expenses hereunder for so long as the Corporation is subject to the Investment
Company Act of 1940, as amended (the “Act”), if indemnification or payment or reimbursement
of expenses would not be permissible under the Act or the rules thereunder.

     Section 24. Employment Rights. Nothing in this Agreement is intended to create in
Indemnitee any right to employment or continued employment.

     Section 25. Counterparts. This Agreement may be executed in two or more counterparts,
each of which shall be deemed to be an original and all of which together shall be deemed to be one
and the same instrument, notwithstanding that both parties are not signatories to the original or
same counterpart.

     Section 26. Headings. The section and subsection headings contained in this Agreement
are for reference purposes only and shall not affect in any way the meaning or interpretation of
this Agreement.

     IN WITNESS WHEREOF, this Agreement has been duly executed and delivered to be effective as of
the date first above written.

	 	 	 	 	 
	 	TPG SPECIALTY LENDING, INC.

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	INDEMNITEE:

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	 	 
	 

12

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