Document:

Exhibit 10.61

 Exhibit 10.61 
  

 CUSTODY AGREEMENT 
 by and among 
 MCG COMMERCIAL LOAN TRUST 2006-2, 
 MCG FINANCE VIII, LLC and 
 MCG
CAPITAL CORPORATION 
 each, as an MCG Party, 
 MERRILL LYNCH CAPITAL CORP., 
 and 
 WELLS FARGO BANK, NATIONAL ASSOCIATION, 
 as the Custodian 
 Dated as of May 2, 2006 
  

 THIS CUSTODY AGREEMENT (such agreement as amended, modified, waived, supplemented or
restated from time to time, the “Agreement”) is made as of this 2nd day of May, 2006, by and among: 
 (1) MCG
COMMERCIAL LOAN TRUST 2006-2, a Delaware statutory trust (together with its successors and assigns, the “Issuer”); 
 (2) MCG FINANCE VIII, LLC, a Delaware limited liability company (together with its successors and assigns, the “LLC”); 
 (3) MCG CAPITAL CORPORATION, a Delaware corporation (together with its successors and assigns, “MCG”; each of MCG, the LLC and the Issuer is referred to herein as an “MCG
Party” and, collectively, as the “MCG Parties”); 
 (4) MERRILL LYNCH CAPITAL CORP., a Delaware corporation
(together with its successors and assigns, “Merrill Lynch”); and 
 (5) WELLS FARGO BANK, NATIONAL ASSOCIATION
(“Wells Fargo”), a national banking association, not in its individual capacity but solely as the Custodian (together with its successors and assigns in such capacity, the “Custodian”). 
 R E C I T A L S 
 WHEREAS, as a condition to Merrill Lynch’s entering into the Credit and Warehouse Agreement, dated as of May 2, 2006 (such agreement as
amended, modified, waived, supplemented or restated from time to time, the “Credit Agreement”), by and among the Issuer, MCG and Merrill Lynch, each MCG Party is required to execute and deliver this Agreement; 
 NOW, THEREFORE, based upon the foregoing Recitals, the mutual premises and agreements contained herein, and 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: 
 1. Certain
Defined Terms. 
 Whenever used in this Agreement, the following words shall have the meanings set forth below. Capitalized terms used
but not defined herein shall have the meanings given to such terms in the Credit Agreement. 
 “Applicable Law”: For any
Person or property of such Person, all then existing applicable laws, rules, regulations, statutes, treaties, codes, ordinances, permits, certificates, orders and licenses of and interpretations by any Governmental Authority, and applicable
judgments, decrees, injunctions, writs, or orders of any court, arbitrator or other administrative, judicial, or quasi-judicial tribunal or agency of competent jurisdiction. 
 “Collateral Documents”: With respect to any Loan, the duly executed originals of each related Underlying Note, indorsement(s) or
instrument(s) (other than in respect of any Noteless Loan), including, without limitation, copies of the credit agreement or (other than in respect of 
  

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 any Noteless Loan) long-form note, as applicable, where MCG originated the Loan or an assignment and assumption agreement
to MCG or a credit agreement, as applicable, where MCG has acquired the Loan from a third party, in each instance if any, memorializing or otherwise evidencing the indebtedness of an Obligor and any other document listed on the Collateral List.

 “Collateral List”: An electronic list of the Loans funded under or otherwise serving as collateral for the indebtedness
under the Credit Agreement, in a form reasonably acceptable to the Custodian, as such list is provided by the Issuer to Merrill Lynch and the Custodian (and containing such information as is specified in Schedule III) as such list may be
amended, supplemented or modified from time to time in accordance with this Agreement. Such list shall contain such information as is reasonably necessary to permit the Custodian to perform the review process set forth in Paragraph 2,
including, but not limited to, with respect to each document to be inventoried by the Custodian. 
 “Custodian Fee”: The
meaning specified in Paragraph 5B. 
 “Governmental Authority”: Any nation or government, any state or other
political subdivision thereof, any central bank (or similar monetary or regulatory authority) thereof, any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, any court or
arbitrator and any accounting board or authority (whether or not a part of the government) that is responsible for the establishment or interpretation of national or international accounting principles. 
 “Grant”: To grant, bargain, sell, warrant, alienate, remise, demise, release, convey, assign, transfer, mortgage, pledge, create and
grant a security interest in and right of setoff against, deposit, set-over and confirm. 
 “Lien”: Any mortgage, deed of
trust, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), preference, participation interest, priority or other security agreement or preferential arrangement of any kind or nature whatsoever, including
any conditional sale or other title retention agreement, any financing lease having substantially the same economic effect as any of the foregoing or the filing of any financing statement under the UCC or comparable law of any jurisdiction to
evidence any of the foregoing. 
 “Noteless Loan”: A Loan with respect to which (i) the related credit agreement does
not require the Obligor to execute and deliver an Underlying Note to evidence the indebtedness created under such Loan and (ii) no Underlying Notes are outstanding with respect to the portion of the Loan transferred to the Issuer. 

“Obligations”: Has the meaning given to such term in Paragraph 7L of this Agreement. 
 “Obligor”: With respect to any Loan, the Person or Persons obligated to make payments pursuant to such Loan, including any guarantor
thereof. 
 “Proceeds”: Has the meaning given to “Proceeds” in Section 9-102 of the UCC, together with all
principal, interest and other payments and distributions of cash or other property with respect to the Collateral (including, without limitation, payments at maturity or upon redemption and any interest with respect to the Collateral), and all
rights, privileges and other securities of every kind distributed with respect thereto or in exchange or substitution therefor, upon conversion or otherwise. 
  

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 “Remedy Event”: Any of the following: (a) the occurrence and continuance of a
Collateral Event, (b) the occurrence and continuance of a Collateral Manager Event, (c) any representation or warranty made or deemed made by or on behalf of an MCG Party in or pursuant to this Agreement or the Master Conveyance Agreement,
or in any certificate or other document furnished pursuant hereto or thereto, shall prove to have been incorrect in any material respect when made or deemed made, and such incorrectness is not cured within 10 Business Days after (i) the date on
which any executive officer of such MCG Party obtains actual knowledge thereof or (ii) the date that written notice thereof is given to such MCG Party by Merrill Lynch, and such failure shall have a Material Adverse Effect, (d) any MCG
Party shall fail to perform any of its obligations under, or shall breach any provision of, this Agreement or the Master Conveyance Agreement, and such failure is not cured within 10 Business Days after (i) the date on which any executive
officer of such MCG Party obtains actual knowledge thereof or (ii) the date that written notice thereof is given to such MCG Party by Merrill Lynch, and such failure shall have a Material Adverse Effect, or (e) an Insolvency Event occurs
with respect to any MCG Party. Notwithstanding anything to the contrary contained herein or in the Credit Agreement, the occurrence of a “Remedy Event” hereunder shall constitute a Collateral Manager Event under the Credit Agreement.

 “UCC”: The Uniform Commercial Code of the State of New York (as the same may be deemed to be in effect pursuant to
Applicable Law and federal regulation). 
 “Underlying Note”: The promissory note (if any) of an Obligor evidencing a Loan.

 All references to time in this Agreement shall mean the time in effect on that day in New York, New York. 
 2. Appointment of Custodian; Duties of Custodian. 
 A. Wells Fargo is hereby designated by each MCG Party and Merrill Lynch as, and hereby agrees to perform the duties and obligations of, the Custodian pursuant to the terms hereof. With respect to any Collateral or Collateral Documents that
are delivered to the Custodian or which come into the possession of the Custodian (“Custodial Property”), the Custodian shall hold and retain custody of all such Custodial Property for the benefit of and as bailee for Merrill Lynch,
and shall make disposition thereof only in accordance with this Agreement. The Custodian hereby accepts appointment as custodian and agent and agrees to perform the duties and obligations with respect thereto set forth herein. 
 B. On and after the date of this Agreement, the Custodian shall perform the following duties: 
 (i) Within two (2) Business Days after receipt of an updated Collateral List and any related Collateral Documents, the Custodian shall deliver to
Merrill Lynch a custodial receipt in the form of Exhibit A hereto, wherein the Custodian shall state (with any exceptions noted) (i) that with respect to each Loan listed on the Collateral List the Collateral Documents are in the
possession of the Custodian, and (ii) all such documents have been 
  

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 reviewed by the Custodian and (A) appear on their face to be regular, (B) appear to have been executed by the
principal Obligor(s), if applicable, and (C) purport to be related to such Loan identified on the Collateral List attached hereto. 
 (ii) All Custodial Property shall be kept in fire-resistant vaults or cabinets at the locations specified on Schedule I attached hereto, or at such other office(s) of the Custodian as shall be specified to Merrill Lynch and the
Issuer by the Custodian in a written notice delivered at least thirty (30) days prior to such change. All Custodial Property shall be segregated from any other documents or instruments maintained by the Custodian, identified with an appropriate
label (indicating Merrill Lynch’s interest therein) and maintained in such a manner so as to permit retrieval and access. 
 (iii) In
performing its duties, the Custodian shall use the same degree of care and attention as it employs with respect to similar Custodial Property that it holds as collateral custodian for other Persons. 
 C. The Custodian represents and agrees that: (a) it has established and is maintaining on the books and records of its office first identified in
Schedule II hereto under account number 20132900 in the name of the Custodian (such account, together with any replacements thereof or substitutions therefor, the “Account”), (b) the Account is a “deposit
account” (within the meaning of Section 9-102(a)(29) of the UCC) and (c) the Account and the Collateral (as defined in the Credit Agreement) and all property credited thereto shall constitute “Collateral” and “Custodial
Property” for the purposes of this Agreement. MCG shall pay or cause to be paid to the Account all Proceeds of any Loans promptly after receipt by MCG, the LLC or the Issuer but in any event within four Business Days. The Account may, for
operational and administrative purposes, be divided into subaccounts. Any amounts deposited in the Account will be invested and distributed pursuant to and in accordance with the terms of the Credit Agreement. 
 3. Representations and Warranties. 
 Each of
the MCG Parties, Merrill Lynch and the Custodian represents and warrants as to itself only, as of the date of this Agreement, that: 
 A. It
is duly organized and existing under the laws of the jurisdiction of its organization with full power and authority to execute and deliver this Agreement and to perform all of the duties and obligations to be performed by it hereunder; 

B. This Agreement is legally and validly entered into, does not violate any Applicable Law applicable to it, and is enforceable in accordance with its
terms, except as may be limited by bankruptcy, insolvency or similar laws, or by equitable principles relating to or limiting creditors’ rights generally. 
 C. The person executing this Agreement on its behalf has been duly and properly authorized to do so. 
  

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 4. Effecting the Custody. 
 A. Instructions to Custodian. Within five Business Days after the acquisition of an interest in any Loan by the Issuer, the Issuer shall deliver to the Custodian, and the Custodian shall take into custody for
the exclusive benefit of Merrill Lynch, in accordance with the terms of Paragraph 2 above, all Collateral Documents that the Issuer has received evidencing or memorializing its rights in such Loan. In connection therewith, the Issuer shall
deliver to the Custodian and Merrill Lynch the Collateral List in the form of Schedule III hereto (as the same shall be amended by the addition or deletion of Loans on each date on which the Issuer acquires an interest in any Loan).

 B. No Lien or Pledge by Custodian. The Custodian agrees that no Custodial Property shall be subject to any Lien or right of setoff
by the Custodian or any third party claiming through the Custodian (including (a) any and all contractual rights of set-off, lien or compensation, (b) any and all statutory or regulatory rights of pledge, lien, set-off or compensation,
(c) any and all statutory, regulatory, contractual or other rights to put on hold, block transfers from or fail to honor instructions of Merrill Lynch or (d) any and all statutory or other rights to prohibit or otherwise limit the pledge,
assignment, collateral assignment or granting of any type of security interest in the Custodial Property), and the Custodian shall not Grant any third party an interest in, any Custodial Property. The Custodian agrees that, if there is any conflict
between this Agreement and any other agreement between the Custodian and any MCG Party in connection with the transactions contemplated by the Credit Agreement regarding the Custodial Property (other than the Intercreditor and Concentration Account
Administration Agreement, dated as of November 10, 2004), the provisions of this Agreement shall control. The Custodian shall promptly notify Merrill Lynch if any person asserts or seeks to assert a Lien or other adverse claim against any
portion or all of the Custodial Property. 
 C. Periodic Statements. Upon the request of any MCG Party or Merrill Lynch, the Custodian
shall provide such Person a list of all Loans for which it holds Collateral Documents pursuant to this Agreement. Such list may be in the form of a copy of the Collateral List with manual deletions to specifically note Loans that are paid off or
removed since the date of this Agreement. 
 D. Copies of Collateral Documents. Upon request by Merrill Lynch, any MCG Party or the
Collateral Manager, the Custodian shall (at the expense of Issuer so long as the aggregate amount of all such expenses do not exceed $75,000 and otherwise at the expense of MCG) provide copies of any of the Collateral Documents in its possession
relating to one or more Loans. 
 5. Limitation on Liability; Additional Provisions Concerning Custodian. 
 A. Limitation on Liability. 
 (i) Except for its willful misconduct or gross negligence, the Custodian may conclusively rely on and shall be fully protected in acting upon any certificate, instrument, opinion, notice, letter, telegram or other document delivered to it
and that in good faith it reasonably believes to be genuine and that has been signed by the proper party or parties. 
  

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 Until the Custodian receives written notice from Merrill Lynch that a Remedy Event has occurred and is continuing, the
Custodian shall follow the written instructions of the Issuer (or the Collateral Manager acting on its behalf) with respect to the Custodial Property. After the Custodian receives written notice from Merrill Lynch (with a copy to MCG) that a Remedy
Event has occurred and is continuing, the Custodian shall exclusively follow the written instructions of Merrill Lynch with respect to the Custodial Property (provided that such written instructions provided by Merrill Lynch shall not
conflict with the provisions of the Credit Agreement). 
 (ii) The Custodian may consult with counsel satisfactory to it and the advice or
opinion of such counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by the Custodian hereunder in good faith and in accordance with the advice or opinion of such counsel. 
 (iii) The Custodian shall not be liable for any error of judgment, or for any act done or step taken or omitted by it, in good faith, or for any
mistakes of fact or law, or for anything that it may do or refrain from doing in connection herewith except (a) in the case of its willful misconduct or grossly negligent performance or omission of its duties, (b) in the case of its
negligent performance of its duties in taking and retaining custody of the Collateral Documents or (c) the failure of the Custodian to take any action requested to be taken at the express direction of Merrill Lynch in accordance with an express
provision of this Agreement. 
 (iv) The Custodian makes no warranty or representation and shall have no responsibility (except as expressly
set forth in this Agreement) as to the content, enforceability, completeness, validity, sufficiency, value, genuineness, ownership or transferability of the Custodial Property, and will not be required to and will not make any representations as to
the validity or value (except as expressly set forth in this Agreement) of any of the Custodial Property. The Custodian shall not be obligated to take any legal action hereunder that might in its judgment involve any expense or liability unless it
has been furnished with an indemnity reasonably satisfactory to it. 
 (v) The Custodian shall have no duties or responsibilities except
such duties and responsibilities as are specifically set forth in this Agreement, and no covenants or obligations shall be implied in this Agreement against the Custodian. For purposes of clarification, the Custodian shall be under no obligation to
monitor the perfection of any security interest or the filing of any financing or continuation statement or the performance of the obligations of any other party. 
 (vi) The Custodian shall not be required to expend or risk its own funds in the performance of its duties hereunder (except for funds expended in the administration in the ordinary course of its duties hereunder).

 (vii) It is expressly agreed and acknowledged that the Custodian is not guaranteeing performance of or assuming any liability for the
obligations of the other parties hereto or any Obligor. 
  

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 B. Custodian Fee. As compensation for its custodian activities hereunder, the Custodian shall be
entitled to a custodian fee (the “Custodian Fee”) from the Issuer as set forth in a separate fee letter executed by the Issuer. The Custodian’s entitlement to receive the Custodian Fee shall cease on the earlier to occur of:
(i) its removal or resignation as the Custodian pursuant to Paragraph 6 (provided that the Custodian is entitled to receive any Custodian Fees accrued prior to the date on which it ceases to act as the Custodian hereunder) or
(ii) the termination of this Agreement. 
 C. Release of Collateral Documents. The Custodian is hereby authorized (unless and
until such authorization is revoked in writing by Merrill Lynch at a time when a Remedy Event has occurred and is continuing), upon receipt from the Collateral Manager of a written request for release of Collateral Documents in the form of
Exhibit B hereto (with a copy of such request of release to Merrill Lynch), to release to the Collateral Manager or its designee the related Collateral Documents set forth in such request and receipt to the Collateral Manager. The
Collateral Manager shall not deliver a request for the release of Collateral Documents unless such release would not impair the first priority perfected security interest of the Custodian. All Collateral Documents released to the Collateral Manager
pursuant to this Paragraph 5C (other than in connection with the sale or other disposition of a Loan pursuant to and in accordance with the terms of the Credit Agreement after such sale or other disposition is effected) shall be held by the
Collateral Manager in trust for the benefit of Merrill Lynch in accordance with the terms of this Agreement. The Collateral Manager shall return to the Custodian the Collateral Documents (i) promptly upon the request of Merrill Lynch, or
(ii) except as Merrill Lynch shall otherwise agree in writing, if the retention by the Collateral Manager of such Collateral Documents would not impair the first priority perfected security interest of the Custodian in the Collateral when the
Collateral Manager’s need therefor in connection with such purpose no longer exists. 
 D. Return of Collateral Documents. The
Collateral Manager may require that the Custodian return to the Issuer each Collateral Document (a) delivered to the Custodian in error or (b) that is required to be redelivered to the Issuer in connection with the sale or other
disposition of a Loan pursuant to and in accordance with the terms of the Credit Agreement or the termination of this Agreement, in each case by submitting to the Custodian and Merrill Lynch a written request in the form of Exhibit B
hereto (signed by the Collateral Manager) specifying the Loans to be so returned and reciting that the conditions to such release have been met. The Custodian shall upon its receipt of each such request for return executed by Collateral Manager
promptly, but in any event within two (2) Business Days after such receipt, return the Collateral Documents so requested to the Issuer. The Collateral Manager shall promptly notify Merrill Lynch of any return of Collateral Documents pursuant to
this Paragraph 5D. 
 6. Term and Termination. 
 A. The Custodian may be removed, with or without cause, by Merrill Lynch or the Issuer by notice given in writing to the Custodian (the “Custodian Termination Notice”) along with a copy thereof
provided respectively to the Issuer or Merrill Lynch; provided that (x) the Issuer may give a Custodian Termination Notice only for cause and only when no Remedy Event has occurred and is continuing and (y) notwithstanding its
receipt of a Custodian Termination Notice, the Custodian shall continue to act in such capacity until a successor 
  

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 Custodian (i) has been appointed by Merrill Lynch (with the consent of the Issuer, except that no such consent shall
be required if a Remedy Event has occurred and is continuing), (ii) has agreed to act as the Custodian hereunder, and (iii) has received all Collateral Documents held by the Custodian being removed. Upon the satisfaction of the conditions
specified in clauses (i) through (iii) above, the Custodian subject to removal agrees that it will terminate its activities as the Custodian hereunder. 
 B. The Custodian shall not resign from the obligations and duties hereby imposed on it except upon the Custodian’s determination that (i) the performance of its duties hereunder is or becomes impermissible
under Applicable Law and (ii) there is no reasonable action that the Custodian could take to make the performance of its duties hereunder permissible under such Applicable Law. Any such determination permitting the resignation of the Custodian
shall be evidenced as to clause (i) above by an opinion of counsel to such effect delivered to Merrill Lynch and the Issuer in a form reasonably acceptable to Merrill Lynch and the Issuer. No such resignation shall become effective until a
successor Custodian (i) has been appointed by Merrill Lynch (with the consent of the Issuer, except that no such consent shall be required if a Remedy Event has occurred and is continuing), (ii) has agreed to act as the Custodian
hereunder, and (iii) has received all Collateral Documents held by the resigning Custodian. Upon the satisfaction of the conditions specified in clauses (i) through (iii) above, the resigning Custodian agrees that it will terminate
its activities as the Custodian hereunder. 
 7. Miscellaneous. 
 A. Access to Books and Records. The Custodian shall provide to Merrill Lynch, each MCG Party and the Collateral Manager (and/or the accountants, counsel and other agents and representatives thereof) access to
the Collateral Documents and all other documentation regarding the Loans, such access being afforded without charge but only (i) upon three (3) Business Days prior written request, (ii) during normal business hours and
(iii) subject to the Custodian’s normal security and confidentiality procedures. 
 B. Merger or Consolidation of Custodian.
Any Person (i) into which the Custodian may be merged or consolidated, (ii) that may result from any merger or consolidation to which the Custodian shall be a party, or (iii) that may succeed to the properties and assets of the
Custodian substantially as a whole, which Person in any of the foregoing cases shall be the successor to the Custodian under this Agreement without further act of any of the parties to this Agreement. 
 C. Invalidity of any Provision. If any term, provision, covenant or condition of this Agreement, or the application thereof to either party or any
circumstance, is held to be unenforceable, invalid or illegal (in whole or in part) for any reason (in any relevant jurisdiction), the remaining terms, provisions, covenants and conditions of this Agreement, modified by the deletion of the
unenforceable, invalid or illegal portion (in any relevant jurisdiction), will continue in full force and effect, and such unenforceability, invalidity or illegality will not otherwise affect the enforceability, validity or legality of the remaining
terms, provisions, covenants and conditions of this Agreement so long as this Agreement as so modified continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the deletion of such
portion of this Agreement will not substantially impair the 
  

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 respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that would
otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited or unenforceable provision with a valid provision, the economic effect of which comes as close as possible to that of the
prohibited or unenforceable provision. 
 D. Amendments and Waivers. No amendment, modification or waiver in respect of this Agreement
will be effective unless in writing (including a writing evidenced by a facsimile transmission) and executed by each of the parties. 
 E.
Binding Agreement. This Agreement shall extend to and shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. No Person other than the parties hereto shall have any rights
under this Agreement. Neither this Agreement nor any right or obligation in or under this Agreement may be transferred (whether by way of security or otherwise) by (a) any MCG Party without the prior written consent of Merrill Lynch,
(b) the Custodian without the prior written consent of the Issuer and Merrill Lynch (but without limiting Paragraph 7B) and (c) Merrill Lynch without the prior written consent of the Issuer. Any purported transfer that is not in
compliance with this provision will be void. 
 F. Applicable Law; Jurisdiction; No Immunity. This Agreement shall be construed in
accordance with, and this Agreement and all matters arising out of or relating in any way whatsoever to this Agreement (whether in contract, tort or otherwise) shall be governed by, the law of the State of New York (without reference to any choice
of law doctrine that would have the effect of causing this Agreement to be construed in accordance with or governed by the law of any other jurisdiction). With respect to any suit, action or proceedings relating to this Agreement
(“Proceedings”), each party irrevocably: (i) submits to the non-exclusive jurisdiction of the courts of the State of New York and the United States District Court located in the Borough of Manhattan in New York City; and
(ii) waives any objection which it may have at any time to the laying of venue of any Proceedings brought in any such court, waives any claim that such Proceedings have been brought in an inconvenient forum and further waives the right to
object, with respect to such Proceedings, that such court does not have any jurisdiction over such party. Nothing in this Agreement precludes any party from bringing Proceedings in any other jurisdiction, nor will the bringing of Proceedings in any
one or more jurisdictions preclude the bringing of Proceedings in any other jurisdiction. 
 G. Waiver of Jury Trial Right. EACH PARTY
HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT THAT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
 H. Headings and References. The headings and captions in this Agreement are for reference only and shall not affect the construction or
interpretation of any of its provisions. 
  

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 I. Counterparts. This Agreement (and each amendment, modification and waiver in respect of it) may
be executed and delivered in counterparts (including by facsimile transmission or other written form of communication), each of which will be deemed an original as against each party whose signature appears thereon, and all of which shall together
constitute one and the same enforceable, effective and valid agreement. 
 J. Notices. All notices and other communications provided
for hereunder shall, unless otherwise stated herein, be in writing (including telex communication and communication by facsimile copy) and mailed, delivered by a nationally-recognized overnight parcel express service, telexed, transmitted or hand
delivered, as to each party hereto, at its address specified in Schedule II or to such other person or persons as the receiving party may from time to time designate in writing. All such notices and communications shall be effective,
upon receipt, or in the case of (a) notice by mail, five days after being deposited in the United States mail, first class postage prepaid, (b) notice by overnight parcel express service, when delivered, but in any event, no later than the
Business Day after the day on which it is delivered to such service, (c) notice by telex, when telexed against receipt of answer back, or (d) notice by facsimile copy, when verbal or electronic communication of receipt is obtained.

 K. No Waiver, Rights and Remedies. No failure on the part of Merrill Lynch or the Custodian or any assignee of Merrill Lynch or the
Custodian 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 rights and remedies herein provided are cumulative and not exclusive of any rights and remedies provided by law. 
 L. Termination. Upon the payment in full of all amounts owing to Merrill Lynch under the Credit Agreement, this Agreement and the Master Conveyance Agreement (the “Obligations”), all rights of Merrill Lynch to the
Collateral shall revert to the Issuer. Upon any such termination, Merrill Lynch will (to the extent in its possession), at the Issuer’s sole expense, deliver to the Issuer and instruct the Custodian to deliver to the Issuer, without any
representations, warranties or recourse of any kind whatsoever, all certificates and instruments representing or evidencing all of the Collateral held by Merrill Lynch or the Custodian hereunder, and execute and deliver to the Issuer (or such other
person as the Issuer shall request) such documents as the Issuer shall reasonably request to evidence such termination. 
 M. No
Petition. Each of the parties hereto, by entering into this Agreement, hereby covenants and agrees that it will not at any time institute against the Issuer or the LLC, or voluntarily join in any institution against the Issuer or the LLC of, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States federal or state bankruptcy or similar law of any jurisdiction within or outside the United States in connection with any
obligations owing to it. 
 N. Limited Recourse Obligations of the Issuer. Other than as expressly set forth in the Credit Agreement,
the Obligations are limited recourse obligations payable solely from the Collateral and following realization of such Collateral and the application of all Proceeds thereof to the payment of the Obligations, any claims of Merrill Lynch hereunder
shall be extinguished. No recourse shall be had against any officer, director, employee, equityholder, 
  

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 agent or incorporator of any MCG Party or its successors or assigns for any amounts payable under the Obligations. It is
understood that the foregoing provisions shall not (a) prevent recourse to the Collateral for the sums due or to become due under any instrument or agreement which is part of the Collateral or (b) constitute a waiver, release or discharge
of any Obligations until such Collateral has been realized and all Proceeds thereof applied to the Obligations, whereupon any outstanding indebtedness or obligation shall be extinguished. It is further understood that the foregoing provisions shall
not limit the right of any person to name the Issuer as a party or defendant in any action or suit or in the exercise of any other remedy pursuant to the Obligations, so long as no judgment in the nature of a deficiency judgment or seeking personal
liability shall be asked for or (if obtained) enforced against any such person or entity. This paragraph will survive termination of this Agreement. 
 O. Confidentiality Restrictions of Custodian. The Custodian shall and shall cause its representatives, its legal counsel and its auditors to hold in confidence all information provided to it pursuant to this
Agreement, except to the extent disclosure may be required by law (and all reasonable applications for confidential treatment are unavailing) and except to the extent that the Custodian may reasonably determine that such disclosure is consistent
with its obligations hereunder and under Applicable Law. 
 P. Escrow Agent and Escrow Agreement. The parties hereby agree that the
Custodian shall be deemed to be, and is hereby appointed as, the “Escrow Agent” under and for all purposes of the Credit Agreement; this Agreement shall be deemed to be the “Escrow Agreement” referred to in the Credit Agreement,
account number 20132900 in the name of the Custodian shall be deemed to be the “Escrow Account” for all purposes of the Credit Agreement. The Custodian agrees to perform the duties of the Escrow Agent set forth in the Credit Agreement;
provided that notwithstanding anything in the Credit Agreement to the contrary, the funds held in the Account shall not be held in an interest-bearing account other than, for avoidance of doubt, any investments in Permitted Investments. The
other parties hereto agree not to amend any provision of the Credit Agreement with respect to the Escrow Agent, Escrow Agreement or Escrow Account without the prior written consent of the Custodian; any such amendment entered into without the
consent of the Custodian shall not be binding on the Custodian (as Escrow Agent or Custodian). 
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BLANK] 
  

 11 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective corporate officers, thereunto duly authorized, as of the date first-above written. 
  

							
	MCG CAPITAL CORPORATION	 	MCG FINANCE VII, LLC
				
	 By:
	 	 /s/ Samuel G. Rubenstein
	 	 By:
	 	 /s/ Samuel G. Rubenstein

	 Name:
	 	 Samuel G. Rubenstein
	 	 Name:
	 	 Samuel G. Rubenstein

	 Title:
	 	 Executive Vice President
	 	 Title:
	 	 Executive Vice President

		
	 WELLS FARGO BANK, NATIONAL
 ASSOCIATION, not in its individual capacity but
 solely as the Custodian
	 	MERRILL LYNCH CAPITAL CORP.
				
	 By:
	 	 /s/ Benjamin J. Krueger
	 	 By:
	 	 /s/ Stephan Kuppenheimer

	 Name:
	 	 Benjamin J. Krueger
	 	 Name:
	 	 Stephan Kuppenheimer

	 Title:
	 	 Assistant Vice President
	 	 Title:
	 	 Vice President

			
	 MCG COMMERCIAL LOAN TRUST 2006-2
 (a Delaware statutory trust)
	 		 	
				
	 By:
	 	 Wilmington Trust Company, not in its
 individual capacity but solely as the Owner Trustee
	 		 	
				
	 By:
	 	 /s/ James P. Lawler
	 		 	
	 Name:
	 	 James P. Lawler
	 		 	
	 Title:
	 	 Vice PresidentChange in Control Agreement

 Exhibit 10.17 
 BANCSHARES OF FLORIDA, INC. 
 CHANGE IN CONTROL AGREEMENT 
 THIS CHANGE IN CONTROL AGREEMENT (“Agreement”) is entered into by and between Bancshares of Florida, Inc. (“Employer”)
and Sharon I. Hill (“Employee”). 
 WHEREAS, in recognition of Employee’s prior and continuing contribution to
Employer and its subsidiaries, Employer wishes to protect Employee’s position therewith in the manner provided in the Agreement in the event of a Change in Control of the Employer. 
 NOW, THEREFORE, in consideration of Employee’s management position, contribution and responsibilities, Employer hereby agrees to
provide Employee with certain severance benefits as specifically provided herein. 
 SECTION 1 – DEFINITIONS 
 (a) “Change in Control” means an event that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A
promulgated under the Securities Exchange Act of 1934, as amended (“Exchange Act”) or any successor disclosure item; provided that, without limitation, such a Change in Control (as set forth in 12 U.S.C. Section 1841 (a)(2) of the
Bank Holding Company Act of 1956, as amended) shall be deemed to have occurred if any person (as such term is used in Sections 13(d) and 14(d) of the Exchange Act), other than any person who on the date hereof is a director or officer of Employer:
(i) directly or indirectly, or acting in concert through one or more other persons, owns, controls, or has power to vote 25% or more of any class of the then outstanding voting securities of Employer; or (ii) controls in any manner the
election of the directors of Employer. For purposes of this Agreement, a “Change in Control” shall be deemed not to have occurred in connection with a reorganization, consolidation, or merger of Employer whereby the stockholders of
Employer, immediately before the consummation of the transaction, will own over 50% of the total combined voting power of all classes of stock entitled to vote of the surviving entity immediately after the transaction. 
 (b) Termination for “just cause” means termination because of Employee’s personal dishonesty, incompetence, insubordination, misconduct or
conduct which negatively reflects upon the Employer, breach of fiduciary duty, intentional failure to perform stated duties, willful violation of any law, rule, or regulation (other than minor traffic violations or similar offenses), or final
cease-and desist order. In determining “incompetence,” the acts or omissions shall be measured against standards generally prevailing in the banking industry. No act, or failure to act on Employee’s part, shall be considered
“willful” unless done, or omitted to be done, by Employee not in good faith and without reasonable belief that Employee’s action or omission was in the best interest of Employer; provided that any act or omission to act on
Employee’s behalf in reliance upon advice or written opinion of Employer’s counsel shall not be deemed to be willful. 
 (c)
“Protected Period” means the term of this Agreement and six months following termination hereof if Employee is employed by Employer at the time Employee first learns of a potential Change in Control, which is in fact later consummated.

 SECTION 2 – TERM OF AGREEMENT 
 This Agreement shall remain in effect for two years commencing on November 1, 2005, and terminating on October 31, 2007, unless extended or
terminated in accordance with the terms and conditions set forth in Section 8 herein. 
 SECTION 3 – PAYMENTS TO EMPLOYEE UPON
CHANGE IN CONTROL 
 If Employer terminates Employee’s employment without “just cause,” Employee shall be entitled to
receive the termination benefits described in Section 4 herein, if a Change in Control also occurs or has occurred within the Protected Period. Employee shall also be entitled to receive such termination benefits described in Section 4
herein, if within 90 days of a Change in Control Employee elects to terminate her employment; provided, however, if the surviving entity following a Change in Control offers Employee a position at the same salary as she was receiving from Employer
at the time of the Change in Control, Employee shall not be entitled to receive the termination benefits described in Section 4 herein. 
 SECTION 4 – TERMINATION BENEFITS 
 (a) Upon a termination described in Section 3, Employer or its successor(s)
shall pay Employee, or in the event of Employee’s subsequent death, Employee’s estate, as severance pay, a sum equal to one-and-one-half years of Employee’s “highest annual base salary.” For purposes of this Agreement,
Employee’s “highest annual base salary” shall mean the Employee’s highest base salary, plus Employee’s average annual bonus during the three years immediately preceding Employee’s termination. Such payment shall be made
in one lump sum payment within ten business days of such a termination of employment. 
 (b) Upon a termination described in Section 3,
Employer or its successor(s) shall continue to provide life, health, and disability coverage (“Coverage”) comparable to the coverage maintained by Employer for Employee prior to Employee’s severance. Such Coverage shall cease upon the
earlier of Employee obtaining new employment and receiving Coverage through another employer, which provides comparable coverage, or six months from the date of Employee’s termination. 
 SECTION 5 – SUSPENSION OF OBLIGATIONS 
 (a) If Employee is suspended from
office and/or temporarily prohibited from participating in the conduct of Employer’s affairs pursuant to an action brought by the Florida Office of Financial Regulation, Office of the Comptroller of the Currency, Office of Thrift Supervision,
or the Federal Deposit Insurance Corporation (any and all referred to herein as “Regulatory Agency”), Employer’s obligations under this Agreement shall be suspended as of the date of such action. The obligations of this Agreement
shall be suspended as of the date of such action. The obligations of this Agreement shall be reinstated if the chargers of the Regulatory Agency are subsequently dismissed, or if the Employee is otherwise determined to be not guilty of such charges.

 (b) If Employee is removed from office and/or permanently prohibited from participating in the conduct or
affairs of Employer by a final order resulting from an action brought by a Regulatory Agency, all obligations of Employer under this Agreement shall terminate as of the effective date of such order. 
 SECTION 6 – NOTICE OF TERMINATION 
 Any purported termination by Employer or by Employee shall be communicated by a Notice of Termination to the other party hereto. For purposes of this Agreement, a “Notice of Termination” shall mean a written notice which shall
indicate the specific termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Employee’s employment under the provision so indicated.

 SECTION 7 – AGREEMENT NOT TO COMPETE 
 (a) In consideration of the benefits and protections provided under this Agreement, Employee agrees that during the term of this Agreement, and for a period of six months following the termination of Employee’s
employment for any reason other than a termination that would entitle Employee to receive the severance benefits described in Section 4, Employee shall not become employed, directly or indirectly, whether as an employee, independent contractor,
consultant, or otherwise, with any federally-insured financial institution, financial holding company, bank holding company, or other financial services provider located in Collier or Lee Counties, Florida that offers similar products or services as
those offered by the Employer, or with any person or entity whose intent it is to organize another such company or entity located in Collier or Lee Counties, Florida. 
 (b) Employee hereby agrees that the duration of the anti-competitive covenant set forth herein is reasonable, and that its geographic scope is not unduly restrictive. 
 (c) The parties acknowledge and agree that money damages cannot fully compensate Employer in the event of Employee’s violation of the provisions of
this Section 7. Thus, in the event of a breach of any of the provisions of this Section 7, Employee agrees that Employer, upon application to a court of competent jurisdiction, shall be entitled to an injunction restraining Employee from
any further breach of the terms and provisions of this Section 7. Employee’s sole remedy, in the event of the wrongful entry of such injunction, shall be the dissolution of such injunction and any costs as provided for in Section 10
herein. Employee hereby waives any and all claims for damages by reason of the wrongful issuance of any such injunction. 
 SECTION 8
– MODIFICATION AND WAIVER 
 (a) This Agreement may not be modified or amended except as agreed to in writing by the parties hereto.

 (b) No term or condition of this Agreement shall be deemed to have been waived, nor shall there be any estoppels against the enforcement
of any provision of this Agreement, except by written instrument of the party charged with such waiver or estoppel. No such written waiver shall be deemed a continuing waiver unless specifically stated therein, and each such waiver shall operate
only as to the specific term or condition waived and shall not constitute a waiver of such term or condition in the future, or as to any act other than that specifically waived. 

 SECTION 9 – ARBITRATION 
 The parties agree that, except for the specific remedies for injunctive relief as contained in Section 7, any controversy or claim arising out of or
relating to this Agreement or any breach hereof, including, without limitation, any claim that this Agreement or any portion hereof is invalid, illegal, or otherwise voidable, shall be submitted to binding arbitration before and in accordance with
the rules of the American Arbitration Association and judgment upon the determination and/or award of such arbitrator(s) may be entered in any court having jurisdiction thereof. Provided, however, that this Section shall not be construed to permit
the award of punitive damages to either party. The venue of any arbitration shall be in Collier County, Florida. 
 SECTION 10 –
ATTORNEYS’ FEES 
 In the event of any proceeding occurring out of or involving this Agreement, the prevailing party shall be
entitled to the recovery of reasonable attorneys’ fees, expenses, and costs, including fees and costs to enforce an award. 
 SECTION
11 – SEVERABILITY 
 The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect. 
 SECTION 12 –
HEADINGS FOR REFERENCE ONLY 
 The headings of the Sections herein are included solely for convenience of reference and shall not control
the meaning or the interpretation of any of the provisions of this Agreement. 
 SECTION 13 – APPLICABLE LAW AND VENUE 

This Agreement shall be governed in all respects and be interpreted by and under the laws of the State of Florida. Any litigation regarding this
Agreement shall be brought in the appropriate court in Collier County, Florida. 
 SECTION 14 – SUCCESSORS 
 Employer shall require any successor to the business and/or assets of Employer in connection with a Change in Control to assume and agree to perform its
obligations under this Agreement in writing. 
 SECTION 15 – NO CONTRACT OF EMPLOYMENT 
 This Agreement shall not, under any circumstances, be deemed to constitute an employment contract between Employer and Employee or to be in consideration
of or an inducement for the continued employment of Employee. Nothing contained in this Agreement shall be deemed to give Employee the right to be retained in the service of Employer, or to interfere with the right of Employer to discharge Employee
at any time. 

 SECTION 16 – LIMITATION OF RIGHTS 
 Neither this Agreement, nor any amendment hereof, nor the payment of any benefits hereunder shall be construed as giving Employee or any other person any
legal or equitable right against Employer except as expressly provided herein. 
 IN WITNESS WHEREOF, Employer has duly executed this
Agreement this 21st day of March, 2006. 
  
  

					
	EMPLOYEE	 	BANCSHARES OF FLORIDA, INC.
			
	 /s/ Sharon I. Hill
	 	By:	 	 /s/ Martin P. Mahan

	Sharon I. Hill	 		 	Martin P. Mahan
		 		 	Executive Vice President and
		 		 	Chief Operating Officer

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