Document:

bcpl-ex1010_282.htm

 

Exhibit 10.10

 

2011 version

Global Master Repurchase Agreement

Dated as of December 12, 2019

Between:

 

	
UBS AG
	
(“Party A”)

and

 

	
BC PARTNERS LENDING CORPORATION
	
(“Party B”)

 

	
1.
	
Applicability

	
(a)
	
From time to time the parties hereto may enter into transactions in which one party, acting through a Designated Office, (“Seller”) agrees to sell to the other, acting through a Designated Office, (“Buyer”) securities or other financial instruments (“Securities”) (subject to paragraph 1(c), other than equities and Net Paying Securities) against the payment of the purchase price by Buyer to Seller, with a simultaneous agreement by Buyer to sell to Seller Securities equivalent to such Securities at a date certain or on demand against the payment of the repurchase price by Seller to Buyer.

	
(b)
	
Each such transaction (which may be a repurchase transaction (“Repurchase Transaction”) or a buy and sell back transaction (“Buy/Sell Back Transaction”)) shall be referred to herein as a “Transaction” and shall be governed by this Agreement, including any supplemental terms or conditions contained in Annex I and any annex specified in Annex I, unless otherwise agreed in writing.

	
(c)
	
If this Agreement may be applied to -

	
 
	
(i)
	
Buy/Sell Back Transactions, this shall be specified in Annex I hereto, and the provisions of the Buy/Sell Back Annex shall apply to such Buy/Sell Back Transactions;

	
 
	
(ii)
	
Net Paying Securities, this shall be specified in Annex I hereto and the provisions of Annex I, paragraph 1(b) shall apply to Transactions involving Net Paying Securities.

	
2.
	
Definitions

	
(a)
	
“Act of Insolvency” shall occur with respect to any party hereto upon -

	
 
	
(i)
	
its making a general assignment for the benefit of, or entering into a reorganisation, arrangement, or composition with, creditors; or

1

 

	
 
	
(ii)
	
a secured party taking possession of, or carrying out other enforcement measures in relation to, all or substantially all assets of such party, provided the relevant process is not dismissed, discharged, stayed or restrained within 15 days; or

	
 
	
(iii)
	
its becoming insolvent or becoming unable to pay its debts as they become due or failing or admitting in writing its inability generally to pay its debts as they become due; or

	
 
	
(iv)
	
its seeking, consenting to, or acquiescing in the appointment of any trustee, administrator, receiver or liquidator or analogous officer of it or any material part of its property; or

	
 
	
(v)
	
the presentation or filing of a petition in respect of it (other than by the other party to this Agreement in respect of any obligation under this Agreement) in any court or before any agency or the commencement of any proceeding by any Competent Authority alleging or for the bankruptcy, winding-up or insolvency of such party (or any analogous proceeding) or seeking any reorganisation, arrangement, composition, re-adjustment, administration, liquidation, dissolution or similar relief under any present or future statute, law or regulation, such petition not having been stayed or dismissed within 15 days of its filing (except in the case of a petition presented by a Competent Authority or for winding-up or any analogous proceeding, in respect of which no such 15 day period shall apply); or

	
 
	
(vi)
	
the appointment of a receiver, administrator, liquidator, conservator, custodian or trustee or analogous officer of such party or over all or any material part of such party’s property; or

	
 
	
(vii)
	
the convening of any meeting of its creditors for the purpose of considering a voluntary arrangement as referred to in section 3 of the Insolvency Act 1986 (or any analogous proceeding);

	
(b)
	
“Agency Transaction”, the meaning specified in paragraph 1 of the Agency Annex to this Agreement as published by ICMA;

	
(c)
	
“Applicable Rate”, in relation to any sum in any currency:

	
 
	
(i)
	
for the purposes of paragraph 10, the rate selected in a commercially reasonable manner by the non-Defaulting Party;

	
 
	
(ii)
	
for any other purpose, the rate agreed by the parties acting in a commercially reasonable manner;

	
(d)
	
“Appropriate Market”, the meaning specified in paragraph 10;

	
(e)
	
“Base Currency”, the currency indicated in Annex I;

2

 

	
(f)
	
“Business Day” means -

	
 
	
(i)
	
in relation to the settlement of a Transaction or delivery of Securities under this Agreement through a settlement system, a day on which that settlement system is open for business;

	
 
	
(ii)
	
in relation to the settlement of a Transaction or delivery of Securities under this Agreement otherwise than through a settlement system, a day on which banks are open for business in the place where the relevant Securities are to be delivered and, if different, the place in which the relevant payment is to be made; and

	
 
	
(iii)
	
in relation to the payment of any amount under this Agreement not falling within (i) or (ii) above, a day other than a Saturday or a Sunday on which banks are open for business in the principal financial centre of the country of which the currency in which the payment is denominated is the official currency and, if different, in the place where any account designated by the parties for the making or receipt of the payment is situated (or, in the case of a payment in euro, a day on which TARGET2 operates).

	
(g)
	
“Cash Equivalent Amount” has the meaning given in paragraph 4(h);

	
(h)
	
“Cash Margin”, a cash sum paid or to be paid to Buyer or Seller in accordance with paragraph 4;

	
(i)
	
“Competent Authority”, a regulator, supervisor or any similar official with primary insolvency, rehabilitative or regulatory jurisdiction over a party in the jurisdiction of its incorporation or establishment or the jurisdiction of its head office;

	
(j)
	
“Confirmation”, the meaning specified in paragraph 3(b);

	
(k)
	
“Contractual Currency”, the meaning specified in paragraph 7(a);

	
(l)
	
“Defaulting Party”, the meaning specified in paragraph 10;

	
(m)
	
“Default Market Value”, the meaning specified in paragraph 10;

	
(n)
	
“Default Notice”, a written notice served by the non-Defaulting Party on the Defaulting Party under paragraph 10(b) designating a day as an Early Termination Date;

	
(o)
	
“Deliverable Securities”, the meaning specified in paragraph 10;

	
(p)
	
“Designated Office”, a branch or office which is specified as such in Annex I or such other branch or office as may be agreed in writing by the parties;

	
(q)
	
“Distribution(s)”, the meaning specified in sub-paragraph (y) below;

	
(r)
	
“Early Termination Date”, the date designated as such in a Default Notice or as otherwise determined in accordance with paragraph 10(b);

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(s)
	
“Electronic Messaging System”, an electronic system for communication capable of reproducing communication in hard copy form, including email;

	
(t)
	
“Equivalent Margin Securities”, Securities equivalent to Securities previously transferred as Margin Securities;

	
(u)
	
“Equivalent Securities”, with respect to a Transaction, Securities equivalent to Purchased Securities under that Transaction. If and to the extent that such Purchased Securities have been redeemed, the expression shall mean a sum of money equivalent to the proceeds of the redemption (other than Distributions);

	
(v)
	
Securities are “equivalent to” other Securities for the purposes of this Agreement if they are: (i) of the same issuer; (ii) part of the same issue; and (iii) of an identical type, nominal value, description and (except where otherwise stated) amount as those other Securities, provided that -

	
 
	
(A)
	
Securities will be equivalent to other Securities notwithstanding that those Securities have been redenominated into euro or that the nominal value of those Securities has changed in connection with such redenomination; and

	
 
	
(B)
	
where Securities have been converted, subdivided or consolidated or have become the subject of a takeover or the holders of Securities have become entitled to receive or acquire other Securities or other property or the Securities have become subject to any similar event other than a Distribution, the expression “equivalent to” shall mean Securities equivalent to (as defined in the provisions of this definition preceding the proviso) the original Securities together with or replaced by a sum of money or Securities or other property equivalent to (as so defined) that receivable by holders of such original Securities resulting from such event;

	
(w)
	
“Event of Default”, the meaning specified in paragraph 10;

	
(x)
	
“Forward Transaction”, the meaning specified in paragraph 2(c)(i) of Annex I;

	
(y)
	
“Income”, with respect to any Security at any time, all interest, dividends or other distributions thereon, including distributions which are a payment or repayment of principal in respect of the relevant securities (“Distribution(s)”);

	
(z)
	
“Income Payment Date”, with respect to any Securities, the date on which Income is paid in respect of such Securities or, in the case of registered Securities, the date by reference to which particular registered holders are identified as being entitled to payment of Income;

	
(aa)
	
“Margin Percentage”, with respect to any Margin Securities or Equivalent Margin Securities, the percentage, if any, agreed by the parties acting in a commercially reasonable manner;

	
(bb)
	
“Margin Ratio”, with respect to a Transaction, the Market Value of the Purchased Securities at the time when the Transaction was entered into divided by the Purchase Price (and so that, where a Transaction relates to Securities of different descriptions and the Purchase Price is apportioned by the parties among Purchased Securities of each such description, a separate Margin Ratio shall apply in respect of Securities of each such description), or such other proportion as the parties may agree with respect to that Transaction;

4

 

	
(cc)
	
“Margin Securities”, in relation to a Margin Transfer, Securities of the type and value (having applied Margin Percentage, if any) reasonably acceptable to the party calling for such Margin Transfer;

	
(dd)
	
“Margin Transfer”, any, or any combination of, the payment or repayment of Cash Margin and the transfer of Margin Securities or Equivalent Margin Securities;

	
(ee)
	
“Market Value”, with respect to any Securities as of any time on any date, the price for such Securities (after having applied the Margin Percentage, if any, in the case of Margin Securities) at such time on such date obtained from a generally recognised source agreed by the parties or as otherwise agreed by the parties (and where different prices are obtained for different delivery dates, the price so obtainable for the earliest available such delivery date) having regard to market practice for valuing Securities of the type in question plus the aggregate amount of Income which, as at such date, has accrued but not yet been paid in respect of the Securities to the extent not included in such price as of such date, and for these purposes any sum in a currency other than the Contractual Currency for the Transaction in question shall be converted into such Contractual Currency at the Spot Rate prevailing at the time of the determination;

	
(ff)
	
“Net Exposure”, the meaning specified in paragraph 4(c);

	
(gg)
	
the “Net Margin” provided to a party at any time, the excess (if any) at that time of (i) the sum of the amount of Cash Margin paid to that party (including accrued interest on such Cash Margin which has not been paid to the other party) and the Market Value of Margin Securities transferred to that party under paragraph 4(a) (excluding any Cash Margin which has been repaid to the other party and any Margin Securities in respect of which Equivalent Margin Securities have been transferred or a Cash Equivalent Amount has been paid to the other party) over (ii) the sum of the amount of Cash Margin paid to the other party (including accrued interest on such Cash Margin which has not been paid by the other party) and the Market Value of Margin Securities transferred to the other party under paragraph 4(a) (excluding any Cash Margin which has been repaid by the other party and any Margin Securities in respect of which Equivalent Margin Securities have been transferred or a Cash Equivalent Amount has been paid by the other party) and for this purpose any amounts not denominated in the Base Currency shall be converted into the Base Currency at the Spot Rate prevailing at the time of the determination;

	
(hh)
	
“Net Paying Securities”, Securities which are of a kind such that, were they to be the subject of a Transaction to which paragraph 5 applies, any payment made by Buyer under paragraph 5 would be one in respect of which either Buyer would or might be required to make a withholding or deduction for or on account of taxes or duties or Seller might be required to make or account for a payment for or on account of taxes or duties (in each case other than tax on overall net income) by reference to such payment;

	
(ii)
	
“Net Value”, the meaning specified in paragraph 10;

	
(jj)
	
“New Purchased Securities”, the meaning specified in paragraph 8(a);

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(kk)
	
“Price Differential”, with respect to any Transaction as of any date, the aggregate amount obtained by daily application of the Pricing Rate for such Transaction to the Purchase Price for such Transaction (on a 360 day, 365 day or other day basis in accordance with the applicable market convention, unless otherwise agreed between the parties for the Transaction) for the actual number of days during the period commencing on (and including) the Purchase Date for such Transaction and ending on (but excluding) the date of calculation or, if earlier, the Repurchase Date;

	
(ll)
	
“Pricing Rate”, with respect to any Transaction, the per annum percentage rate for calculation of the Price Differential agreed to by Buyer and Seller in relation to that Transaction;

	
(mm)
	
“Purchase Date”, with respect to any Transaction, the date on which Purchased Securities are to be sold by Seller to Buyer in relation to that Transaction;

	
(nn)
	
“Purchase Price”, on the Purchase Date, the price at which Purchased Securities are sold or are to be sold by Seller to Buyer,

	
(oo)
	
“Purchased Securities”, with respect to any Transaction, the Securities sold or to be sold by Seller to Buyer under that Transaction, and any New Purchased Securities transferred by Seller to Buyer under paragraph 8 in respect of that Transaction;

	
(pp)
	
“Receivable Securities”, the meaning specified in paragraph 10;

	
(qq)
	
“Repurchase Date”, with respect to any Transaction, the date on which Buyer is to sell Equivalent Securities to Seller in relation to that Transaction;

	
(rr)
	
“Repurchase Price”, with respect to any Transaction and as of any date, the sum of the Purchase Price and the Price Differential as of such date;

	
(ss)
	
“Spot Rate”, where an amount in one currency is to be converted into a second currency on any date, unless the parties otherwise agree

	
 
	
(i)
	
for the purposes of paragraph 10, the spot rate of exchange obtained by reference to a pricing source or quoted by a bank, in each case specified by the non-Defaulting Party, in the London inter-bank market for the purchase of the second currency with the first currency at such dates and times determined by the non-Defaulting Party; and

	
 
	
(ii)
	
for any other purpose, the latest available spot rate of exchange obtained by reference to a pricing source or quoted by a bank, in each case agreed by the parties (or in the absence of such agreement, specified by Buyer), in the London inter-bank market for the purchase of the second currency with the first currency on the day on which the calculation is to be made or, if that day is not a day on which banks are open for business in London, the spot rate of exchange quoted at close of business in London on the immediately preceding day in London on which such a quotation was available;

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(tt)
	
“TARGET2”, the Second Generation Trans-European Automated Real-time Gross Settlement Express Transfer System, or any other system that replaces it;

	
(uu)
	
“Term”, with respect to any Transaction, the interval of time commencing with the Purchase Date and ending with the Repurchase Date;

	
(vv)
	
“Termination”, with respect to any Transaction, refers to the requirement with respect to such Transaction for Buyer to sell Equivalent Securities against payment by Seller of the Repurchase Price in accordance with paragraph 3(f), and reference to a Transaction having a “fixed term” or being “terminable upon demand” shall be construed accordingly;

	
(ww)
	
“Transaction Costs”, the meaning specified in paragraph 10;

	
(xx)
	
“Transaction Exposure”, with respect to any Transaction at any time during the period from the Purchase Date to the Repurchase Date (or, if later, the date on which Equivalent Securities are delivered to Seller or the Transaction is terminated under paragraph 10(h) or 10(i)) the amount “E” determined in accordance with (A) or (B) below as specified in Annex I (or as agreed by the parties with respect to particular transactions):

	
 
	
(A)
	
the result of formula E = (R x MR) – MV, where:

 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
R
	
  
	
=
	
  
	
the Repurchase Price at such time

	
 
	
 
	
 
	
 

	
 
	
 
	
MR
	
  
	
=
	
  
	
the applicable Margin Ratio

	
 
	
 
	
 
	
 

	
 
	
 
	
MV    
	
  
	
=    
	
  
	
the Market Value of Equivalent Securities at such time and so that where the Transaction relates to Securities of more than one description or to which different Margin Ratios apply, E shall be determined by multiplying the Repurchase Price attributable to Equivalent Securities of each such description by the applicable Margin Ratio and aggregating the results and for this purpose the Repurchase Price shall be attributed to Equivalent Securities of each such description in the same proportions as those in which the Purchase Price was apportioned among the Purchased Securities.

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
If E is greater than zero, Buyer has a Transaction Exposure equal to E and if E is less than zero, Seller has a Transaction Exposure equal to the absolute value of E; provided that E shall not be greater than the amount of the Repurchase Price on the date of the determination; or

7

 

	
 
	
(B)
	
the result of the formula E = R – V, where:

 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
R
	
  
	
=    
	
 
	
the Repurchase Price at such time

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
V
	
  
	
=    
	
  
	
the Adjusted Value of Equivalent Securities at such time or, where a Transaction relates to Securities of more than one description or to which different haircuts apply, the sum of the Adjusted Values of the Securities of each such description.

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
For this purpose the “Adjusted Value” of any Securities is their value determined on the basis of the formula, (MV(1 – H)), where:

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
MV
	
 
	
=   
	
 
	
the Market Value of Equivalent Securities at such time

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
H
	
 
	
=
	
 
	
the “haircut” for the relevant Securities, if any, as agreed by the parties from time to time, being a discount from the Market Value of the Securities.

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
If E is greater than zero, Buyer has a Transaction Exposure equal to E and if E is less than zero, Seller has a Transaction Exposure equal to the absolute value of E; and

	
(yy)
	
except in paragraphs 14(b)(i) and 18, references in this Agreement to “written” communications and communications “in writing” include communications made through any Electronic Messaging System agreed between the parties.

	
3.
	
Initiation; Confirmation; Termination

	
(a)
	
A Transaction may be entered into orally or in writing at the initiation of either Buyer or Seller.

	
(b)
	
Upon agreeing to enter into a Transaction hereunder Buyer or Seller (or both), as shall have been agreed, shall promptly deliver to the other party written confirmation of such Transaction (a “Confirmation”).

The Confirmation shall describe the Purchased Securities (including CUSIP or ISIN or other identifying number or numbers, if any), identify Buyer and Seller and set forth -

	
 
	
(i)
	
the Purchase Date;

	
 
	
(ii)
	
the Purchase Price;

	
 
	
(iii)
	
the Repurchase Date, unless the Transaction is to be terminable on demand (in which case the Confirmation shall state that it is terminable on demand);

	
 
	
(iv)
	
the Pricing Rate applicable to the Transaction;

8

 

	
 
	
(v)
	
in respect of each party the details of the bank account(s) to which payments to be made hereunder are to be credited;

	
 
	
(vi)
	
where the Buy/Sell Back Annex applies, whether the Transaction is a Repurchase Transaction or a Buy/Sell Back Transaction;

	
 
	
(vii)
	
where the Agency Annex applies, whether the Transaction is an Agency Transaction and, if so, the identity of the party which is acting as agent and the name, code or identifier of the Principal; and

	
 
	
(viii)
	
any additional terms or conditions of the Transaction;

and may be in the form of Annex Il or may be in any other form to which the parties agree.

The Confirmation relating to a Transaction shall, together with this Agreement, constitute prima facie evidence of the terms agreed between Buyer and Seller for that Transaction, unless objection is made with respect to the Confirmation promptly after receipt thereof. In the event of any conflict between the terms of such Confirmation and this Agreement, the Confirmation shall prevail in respect of that Transaction and those terms only.

	
(c)
	
On the Purchase Date for a Transaction, Seller shall transfer the Purchased Securities to Buyer or its agent against the payment of the Purchase Price by Buyer in accordance with paragraph 6(c).

	
(d)
	
Termination of a Transaction will be effected, in the case of on demand Transactions, on the date specified for Termination in such demand, and, in the case of fixed term Transactions, on the date fixed for Termination.

	
(e)
	
In the case of on demand Transactions, demand for Termination shall be made by Buyer or Seller, by telephone or otherwise, and shall provide for Termination to occur after not less than the minimum period as is customarily required for the settlement or delivery of money or Equivalent Securities of the relevant kind.

	
(f)
	
On the Repurchase Date, Buyer shall transfer to Seller or its agent Equivalent Securities against the payment of the Repurchase Price by Seller (less any amount then payable and unpaid by Buyer to Seller pursuant to paragraph 5).

	
4.
	
Margin Maintenance

	
(a)
	
If at any time either party has a Net Exposure in respect of the other party it may by notice to the other party require the other party to make a Margin Transfer to it of an aggregate amount or value at least equal to that Net Exposure.

	
(b)
	
A notice under sub-paragraph (a) above may be given orally or in writing.

9

 

	
(c)
	
For the purposes of this Agreement a party has a Net Exposure in respect of the other party if the aggregate of all the first party’s Transaction Exposures plus any amount payable to the first party under paragraph 5 but unpaid less the amount of any Net Margin provided to the first party exceeds the aggregate of all the other party’s Transaction Exposures plus any amount payable to the other party under paragraph 5 but unpaid less the amount of any Net Margin provided to the other party; and the amount of the Net Exposure is the amount of the excess. For this purpose any amounts not denominated in the Base Currency shall be converted into the Base Currency at the Spot Rate prevailing at the relevant time.

	
(d)
	
To the extent that a party calling for a Margin Transfer has previously paid Cash Margin which has not been repaid or delivered Margin Securities in respect of which Equivalent Margin Securities have not been delivered to it or a Cash Equivalent Amount has not been paid, that party shall be entitled to require that such Margin Transfer be satisfied first by the repayment of such Cash Margin or the delivery of Equivalent Margin Securities but, subject to this, the composition of a Margin Transfer shall be at the option of the party making such Margin Transfer.

	
(e)
	
Any Cash Margin transferred shall be in the Base Currency or such other currency as the parties may agree.

	
(f)
	
A payment of Cash Margin shall give rise to a debt owing from the party receiving such payment to the party making such payment. Such debt shall bear interest at such rate, payable at such times, as may be specified in Annex I in respect of the relevant currency or otherwise agreed between the parties, and shall be repayable subject to the terms of this Agreement.

	
(g)
	
Where Seller or Buyer becomes obliged under sub-paragraph (a) above to make a Margin Transfer, it shall transfer Cash Margin or Margin Securities or Equivalent Margin Securities within the minimum period specified in Annex I or, if no period is there specified, such minimum period as is customarily required for the settlement or delivery of money, Margin Securities or Equivalent Margin Securities of the relevant kind.

	
(h)
	
Where a party (the “Transferor”) becomes obliged to transfer Equivalent Margin Securities and, having made all reasonable efforts to do so, is, for any reason relating to the Securities or the clearing system through which the Securities are to be transferred, unable to transfer Equivalent Margin Securities then

	
 
	
(i)
	
the Transferor shall immediately pay to the other party Cash Margin at least equal to the Market Value of such Equivalent Margin Securities (and, unless the parties otherwise agree, such Cash Margin shall not bear interest in accordance with paragraph 4(f)); and

	
 
	
(ii)
	
if the failure is continuing for two Business Days or more the other party may by notice to the Transferor require the Transferor to pay an amount (the “Cash Equivalent Amount”) equal to the Default Market Value of the Equivalent Margin Securities determined by the other party in accordance with paragraph 10(f) which shall apply on the basis that references to the non-Defaulting Party were to the other party and references to the Early Termination Date were to the date on which notice under this paragraph is effective.

10

 

	
(i)
	
The parties may agree that, with respect to any Transaction, the provisions of sub-paragraphs (a) to (h) above shall not apply but instead that margin may be provided separately in respect of that Transaction in which case -

	
 
	
(i)
	
that Transaction shall not be taken into account when calculating whether either party has a Net Exposure;

	
 
	
(ii)
	
margin shall be provided in respect of that Transaction in such manner as the parties may agree; and

	
 
	
(iii)
	
margin provided in respect of that Transaction shall not be taken into account for the purposes of sub-paragraphs (a) to (h) above.

	
(j)
	
The parties may agree that any Net Exposure which may arise shall be eliminated not by Margin Transfers under the preceding provisions of this paragraph but by the repricing of Transactions under sub-paragraph (k) below, the adjustment of Transactions under sub-paragraph (I) below or a combination of both these methods.

	
(k)
	
Where the parties agree that a Transaction is to be repriced under this sub-paragraph, such repricing shall be effected as follows -

	
 
	
(i)
	
the Repurchase Date under the relevant Transaction (the “Original Transaction”) shall be deemed to occur on the date on which the repricing is to be effected (the “Repricing Date”);

	
 
	
(ii)
	
the parties shall be deemed to have entered into a new Transaction (the “Repriced Transaction”) on the terms set out in (iii) to (vi) below;

	
 
	
(iii)
	
the Purchased Securities under the Repriced Transaction shall be Securities equivalent to the Purchased Securities under the Original Transaction;

	
 
	
(iv)
	
the Purchase Date under the Repriced Transaction shall be the Repricing Date;

	
 
	
(v)
	
the Purchase Price under the Repriced Transaction shall be such amount as shall, when multiplied by the Margin Ratio applicable to the Original Transaction, be equal to the Market Value of such Securities on the Repricing Date;

	
 
	
(vi)
	
the Repurchase Date, the Pricing Rate, the Margin Ratio and, subject as aforesaid, the other terms of the Repriced Transaction shall be identical to those of the Original Transaction;

	
 
	
(vii)
	
the obligations of the parties with respect to the delivery of the Purchased Securities and the payment of the Purchase Price under the Repriced Transaction shall be set off against their obligations with respect to the delivery of Equivalent Securities and payment of the Repurchase Price under the Original Transaction and accordingly only a net cash sum shall be paid by one party to the other. Such net cash sum shall be paid within the minimum period specified in sub-paragraph (g) above.

11

 

	
(l)
	
The adjustment of a Transaction (the “Original Transaction”) under this sub-paragraph shall be effected by the parties agreeing that on the date on which the adjustment is to be made (the “Adjustment Date”) the Original Transaction shall be terminated and they shall enter into a new Transaction (the “Replacement Transaction”) in accordance with the following provisions -

	
 
	
(i)
	
the Original Transaction shall be terminated on the Adjustment Date on such terms as the parties shall agree on or before the Adjustment Date;

	
 
	
(ii)
	
the Purchased Securities under the Replacement Transaction shall be such Securities as the parties shall agree on or before the Adjustment Date (being Securities the aggregate Market Value of which at the Adjustment Date is substantially equal to the Repurchase Price under the Original Transaction at the Adjustment Date multiplied by the Margin Ratio applicable to the Original Transaction);

	
 
	
(iii)
	
the Purchase Date under the Replacement Transaction shall be the Adjustment Date;

	
 
	
(iv)
	
the other terms of the Replacement Transaction shall be such as the parties shall agree on or before the Adjustment Date; and

	
 
	
(v)
	
the obligations of the parties with respect to payment and delivery of Securities on the Adjustment Date under the Original Transaction and the Replacement Transaction shall be settled in accordance with paragraph 6 within the minimum period specified in sub-paragraph (g) above.

	
5.
	
Income Payments

Unless otherwise agreed -

	
(a)
	
where: (i) the Term of a particular Transaction extends over an Income Payment Date in respect of any Securities subject to that Transaction; or (ii) an Income Payment Date in respect of any such Securities occurs after the Repurchase Date but before Equivalent Securities have been delivered to Seller or, if earlier, the occurrence of an Early Termination Date or the termination of the Transaction under paragraph 10(i) then Buyer shall on the date such Income is paid by the issuer transfer to or credit to the account of Seller an amount equal to (and in the same currency as) the amount paid by the issuer;

	
(b)
	
where Margin Securities are transferred from one party (“the first party”) to the other party (“the second party”) and an Income Payment Date in respect of such Securities occurs before Equivalent Margin Securities are transferred or a Cash Equivalent Amount is paid by the second party to the first party, the second party shall on the date such Income is paid by the issuer transfer to or credit to the account of the first party an amount equal to (and in the same currency as) the amount paid by the issuer;

12

 

and for the avoidance of doubt references in this paragraph to the amount of any Income paid by the issuer of any Securities shall be to an amount paid without any withholding or deduction for or on account of taxes or duties notwithstanding that a payment of such Income made in certain circumstances may be subject to such a withholding or deduction.

	
6.
	
Payment and Transfer

	
(a)
	
Unless otherwise agreed, all money paid hereunder shall be in immediately available freely convertible funds of the relevant currency. All Securities to be transferred hereunder (i) shall be in suitable form for transfer and shall be accompanied by duly executed instruments of transfer or assignment in blank (where required for transfer) and such other documentation as the transferee may reasonably request, or (ii) shall be transferred through any agreed book entry or other securities clearance system or (iii) shall be transferred by any other method mutually acceptable to Seller and Buyer.

	
(b)
	
Unless otherwise agreed, all money payable by one party to the other in respect of any Transaction shall be paid free and clear of, and without withholding or deduction for, any taxes or duties of whatsoever nature imposed, levied, collected, withheld or assessed by any authority having power to tax, unless the withholding or deduction of such taxes or duties is required by law. In that event, unless otherwise agreed, the paying party shall pay such additional amounts as will result in the net amounts receivable by the other party (after taking account of such withholding or deduction) being equal to such amounts as would have been received by it had no such taxes or duties been required to be withheld or deducted.

	
(c)
	
Unless otherwise agreed in writing between the parties, under each Transaction transfer of Purchased Securities by Seller and payment of Purchase Price by Buyer against the transfer of such Purchased Securities shall be made simultaneously and transfer of Equivalent Securities by Buyer and payment of Repurchase Price payable by Seller against the transfer of such Equivalent Securities shall be made simultaneously.

	
(d)
	
Subject to and without prejudice to the provisions of sub-paragraph 6(c), either party may from time to time in accordance with market practice and in recognition of the practical difficulties in arranging simultaneous delivery of Securities and money waive in relation to any Transaction its rights under this Agreement to receive simultaneous transfer and/or payment provided that transfer and/or payment shall, notwithstanding such waiver, be made on the same day and provided also that no such waiver in respect of one Transaction shall affect or bind it in respect of any other Transaction.

	
(e)
	
The parties shall execute and deliver all necessary documents and take all necessary steps to procure that all right, title and interest in any Purchased Securities, any Equivalent Securities, any Margin Securities and any Equivalent Margin Securities shall pass to the party to which transfer is being made upon transfer of the same in accordance with this Agreement, free from all liens (other than a lien granted to the operator of the clearance system through which the Securities are transferred), claims, charges and encumbrances.

13

 

	
(f)
	
Notwithstanding the use of expressions such as “Repurchase Date”, “Repurchase Price”, “margin”, “Net Margin”, “Margin Ratio” and “substitution”, which are used to reflect terminology used in the market for transactions of the kind provided for in this Agreement, all right, title and interest in and to Securities and money transferred or paid under this Agreement shall pass to the transferee upon transfer or payment, the obligation of the party receiving Purchased Securities or Margin Securities being an obligation to transfer Equivalent Securities or Equivalent Margin Securities.

	
(g)
	
Time shall be of the essence in this Agreement.

	
(h)
	
Subject to paragraph 10, all amounts in the same currency payable by each party to the other under any Transaction or otherwise under this Agreement on the same date shall be combined in a single calculation of a net sum payable by one party to the other and the obligation to pay that sum shall be the only obligation of either party in respect of those amounts.

	
(i)
	
Subject to paragraph 10, all Securities of the same issue, denomination, currency and series, transferable by each party to the other under any Transaction or hereunder on the same date shall be combined in a single calculation of a net quantity of Securities transferable by one party to the other and the obligation to transfer the net quantity of Securities shall be the only obligation of either party in respect of the Securities so transferable and receivable.

	
(j)
	
If the parties have specified in Annex I that this paragraph 6(j) shall apply, each obligation of a party under this Agreement (the “first party”) (other than an obligation arising under paragraph 10) is subject to the condition precedent that none of the events specified in paragraph 10(a) (Events of Default) shall have occurred and be continuing with respect to the other party.

	
7.
	
Contractual Currency

	
(a)
	
All the payments made in respect of the Purchase Price or the Repurchase Price of any Transaction shall be made in the currency of the Purchase Price (the “Contractual Currency”) save as provided in paragraph 10(d)(ii). Notwithstanding the foregoing, the payee of any money may, at its option, accept tender thereof in any other currency, provided, however, that, to the extent permitted by applicable law, the obligation of the payer to pay such money will be discharged only to the extent of the amount of the Contractual Currency that such payee may, consistent with normal banking procedures, purchase with such other currency (after deduction of any premium and costs of exchange) for delivery within the customary delivery period for spot transactions in respect of the relevant currency.

	
(b)
	
If for any reason the amount in the Contractual Currency received by a party, including amounts received after conversion of any recovery under any judgment or order expressed in a currency other than the Contractual Currency, falls short of the amount in the Contractual Currency due and payable, the party required to make the payment will, as a separate and independent obligation, to the extent permitted by applicable law, immediately transfer such additional amount in the Contractual Currency as may be necessary to compensate for the shortfall.

14

 

	
(c)
	
If for any reason the amount in the Contractual Currency received by a party exceeds the amount of the Contractual Currency due and payable, the party receiving the transfer will refund promptly the amount of such excess.

	
8.
	
Substitution

	
(a)
	
A Transaction may at any time between the Purchase Date and Repurchase Date, if Seller so requests and Buyer so agrees, be varied by the transfer by Buyer to Seller of Securities equivalent to the Purchased Securities, or to such of the Purchased Securities as shall be agreed, in exchange for the transfer by Seller to Buyer of other Securities of such amount and description as shall be agreed (“New Purchased Securities”) (being Securities having a Market Value at the date of the variation at least equal to the Market Value of the Equivalent Securities transferred to Seller).

	
(b)
	
Any variation under sub-paragraph (a) above shall be effected, subject to paragraph 6(d), by the simultaneous transfer of the Equivalent Securities and New Purchased Securities concerned.

	
(c)
	
A Transaction which is varied under sub-paragraph (a) above shall thereafter continue in effect as though the Purchased Securities under that Transaction consisted of or included the New Purchased Securities instead of the Securities in respect of which Equivalent Securities have been transferred to Seller.

	
(d)
	
Where either party has transferred Margin Securities to the other party it may at any time before Equivalent Margin Securities are transferred to it under paragraph 4 request the other party to transfer Equivalent Margin Securities to it in exchange for the transfer to the other party of new Margin Securities having a Market Value at the time at which the exchange is agreed at least equal to that of such Equivalent Margin Securities. If the other party agrees to the request, the exchange shall be effected, subject to paragraph 6(d), by the simultaneous transfer of the Equivalent Margin Securities and new Margin Securities concerned.

Where either or both of such transfers is or are effected through a settlement system in circumstances which under the rules and procedures of that settlement system give rise to a payment by or for the account of one party to or for the account of the other party, the parties shall cause such payment or payments to be made outside that settlement system, for value the same day as the payments made through that settlement system, as shall ensure that the exchange of Equivalent Margin Securities and new Margin Securities effected under this sub-paragraph does not give rise to any net payment of cash by either party to the other.

	
9.
	
Representations

Each party represents and warrants to the other that -

	
(a)
	
it is duly authorised to execute and deliver this Agreement, to enter into the Transactions contemplated hereunder and to perform its obligations hereunder and thereunder and has taken all necessary action to authorise such execution, delivery and performance;

	
(b)
	
it will engage in this Agreement and the Transactions contemplated hereunder (other than Agency Transactions) as principal;

15

 

	
(c)
	
the person signing this Agreement on its behalf is, and any person representing it in entering into a Transaction will be, duly authorised to do so on its behalf;

	
(d)
	
it has obtained all authorisations of any governmental or regulatory body required in connection with this Agreement and the Transactions contemplated hereunder and such authorisations are in full force and effect;

	
(e)
	
the execution, delivery and performance of this Agreement and the Transactions contemplated hereunder will not violate any law, ordinance, charter, by-law or rule applicable to it or any agreement by which it is bound or by which any of its assets are affected;

	
(f)
	
it has satisfied itself and will continue to satisfy itself as to the tax implications of the Transactions contemplated hereunder;

	
(g)
	
in connection with this Agreement and each Transaction -

	
 
	
(i)
	
unless there is a written agreement with the other party to the contrary, it is not relying on any advice (whether written or oral) of the other party, other than the representations expressly set out in this Agreement;

	
 
	
(ii)
	
it has made and will make its own decisions regarding the entering into of any Transaction based upon its own judgment and upon advice from such professional advisers as it has deemed it necessary to consult;

	
 
	
(iii)
	
it understands the terms, conditions and risks of each Transaction and is willing to assume (financially and otherwise) those risks; and

	
(h)
	
at the time of transfer to the other party of any Securities it will have the full and unqualified right to make such transfer and that upon such transfer of Securities the other party will receive all right, title and interest in and to those Securities free of any lien (other than a lien granted to the operator of the clearance system through which the Securities are transferred), claim, charge or encumbrance.

On the date on which any Transaction is entered into pursuant hereto, and on each day on which Securities, Equivalent Securities, Margin Securities or Equivalent Margin Securities are to be transferred under any Transaction, Buyer and Seller shall each be deemed to repeat all the foregoing representations. For the avoidance of doubt and notwithstanding any arrangements which Seller or Buyer may have with any third party, each party will be liable as a principal for its obligations under this Agreement and each Transaction.

16

 

	
10.
	
Events of Default

	
(a)
	
If any of the following events (each an “Event of Default”) occurs in relation to either party (the “Defaulting Party”, the other party being the “non-Defaulting Party”) whether acting as Seller or Buyer -

	
 
	
(i)
	
Buyer fails to pay the Purchase Price upon the applicable Purchase Date or Seller fails to pay the Repurchase Price upon the applicable Repurchase Date; or

	
 
	
(ii)
	
if the parties have specified in Annex I that this sub-paragraph shall apply, Seller fails to deliver Purchased Securities on the Purchase Date or Buyer fails to deliver Equivalent Securities on the Repurchase Date, in either case within the standard settlement time for delivery of the Securities concerned; or

	
 
	
(iii)
	
Seller or Buyer fails to pay when due any sum payable under sub-paragraph (h) or (i) below; or

	
 
	
(iv)
	
Seller or Buyer fails to:

	
 
	
(A)
	
make a Margin Transfer within the minimum period in accordance with paragraph 4(g) or, in the case of an obligation to deliver Equivalent Margin Securities, either to deliver the relevant Equivalent Margin Securities or to pay Cash Margin in accordance with paragraph 4(h)(i) or to pay the Cash Equivalent Amount in accordance with paragraph 4(h)(ii);

	
 
	
(B)
	
where paragraph 4(i) applies, to provide margin in accordance with that paragraph; or

	
 
	
(C)
	
to pay any amount or to transfer any Securities in accordance with paragraphs 4(k) or (l); or

	
 
	
(v)
	
Seller or Buyer fails to comply with paragraph 5; or

	
 
	
(vi)
	
an Act of Insolvency occurs with respect to Seller or Buyer; or

	
 
	
(vii)
	
any representations made by Seller or Buyer are incorrect or untrue in any material respect when made or repeated or deemed to have been made or repeated; or

	
 
	
(viii)
	
Seller or Buyer admits to the other that it is unable to, or intends not to, perform any of its obligations hereunder or in respect of any Transaction; or

	
 
	
(ix)
	
Seller or Buyer being declared in default or being suspended or expelled from membership of or participation in, any securities exchange or suspended or prohibited from dealing in securities by any Competent Authority, in each case on the grounds that it has failed to meet any requirements relating to financial resources or credit rating; or

17

 

	
 
	
(x)
	
Seller or Buyer fails to perform any other of its obligations hereunder and does not remedy such failure within 30 days after notice is given by the non-Defaulting Party requiring it to do so, then sub-paragraphs (b) to (g) below shall apply.

	
(b)
	
If at any time an Event of Default has occurred and is continuing the non-Defaulting Party may, by not more than 20 days’ notice to the Defaulting Party specifying the relevant Event of Default, designate a day not earlier than the day such notice is effective as an Early Termination Date in respect of all outstanding Transactions. If, however, “Automatic Early Termination” is specified in Annex I with respect to the Defaulting Party, then an Early Termination Date in respect of all outstanding Transactions will occur at the time immediately preceding the occurrence with respect to the Defaulting Party of an Act of Insolvency which is the presentation of a petition for winding-up or any analogous proceeding or the appointment of a liquidator or analogous officer of the Defaulting Party.

	
(c)
	
If an Early Termination Date occurs, the Repurchase Date for each Transaction hereunder shall be deemed to occur on the Early Termination Date and, subject to the following provisions, all Cash Margin (including interest accrued) shall be repayable and Equivalent Margin Securities shall be deliverable and Cash Equivalent Amounts shall be payable, in each case on the Early Termination Date (and so that, where this sub-paragraph applies, performance of the respective obligations of the parties with respect to the delivery of Securities, the payment of the Repurchase Prices for any Equivalent Securities, the repayment of any Cash Margin and the payment of Cash Equivalent Amounts shall be effected only in accordance with the provisions of sub-paragraph (d) below).

	
(d)
	
(i)
	
The Default Market Values of the Equivalent Securities and any Equivalent Margin Securities to be transferred, the amount of any Cash Margin (including the amount of interest accrued) to be transferred and the Repurchase Prices and Cash Equivalent Amounts to be paid by each party shall be established by the non-Defaulting Party for all Transactions as at the Early Termination Date;

	
 
	
(ii)
	
on the basis of the sums so established, an account shall be taken (as at the Early Termination Date) of what is due from each party to the other under this Agreement (on the basis that each party’s claim against the other in respect of the transfer to it of Equivalent Securities or Equivalent Margin Securities under this Agreement equals the Default Market Value therefor and including amounts payable under paragraphs 10(g) and 12) and the sums due from one party shall be set off against the sums due from the other and only the balance of the account shall be payable (by the party having the claim valued at the lower amount pursuant to the foregoing). For the purposes of this calculation, all sums not denominated in the Base Currency shall be converted into the Base Currency at the Spot Rate; and

	
 
	
(iii)
	
as soon as reasonably practicable after effecting the calculation above, the non-Defaulting Party shall provide to the Defaulting Party a statement showing in reasonable detail such calculations and specifying the balance payable by one party to the other and such balance shall be due and payable on the Business Day following the date of such statement provided that, to the extent permitted by applicable law, interest shall accrue on such amount on a 360 day, 365 day or other day basis in accordance with the applicable market convention (or as otherwise agreed by the parties), for the actual number of days during the period from and including the Early Termination Date to, but excluding, the date of payment.

18

 

	
(e)
	
For the purposes of this Agreement, the “Default Market Value” of any Equivalent Securities or Equivalent Margin Securities shall be determined by the non-Defaulting Party on or as soon as reasonably practicable after the Early Termination Date in accordance with sub-paragraph (f) below, and for this purpose -

	
 
	
(i)
	
the “Appropriate Market” means, in relation to Securities of any description, the market which is the most appropriate market for Securities of that description, as determined by the non-Defaulting Party;

	
 
	
(ii)
	
“Deliverable Securities” means Equivalent Securities or Equivalent Margin Securities to be delivered by the Defaulting Party;

	
 
	
(iii)
	
“Net Value” means at any time, in relation to any Deliverable Securities or Receivable Securities, the amount which, in the reasonable opinion of the non-Defaulting Party, represents their fair market value, having regard to such pricing sources (including trading prices) and methods (which may include, without limitation, available prices for Securities with similar maturities, terms and credit characteristics as the relevant Equivalent Securities or Equivalent Margin Securities) as the non-Defaulting Party considers appropriate, less, in the case of Receivable Securities, or plus, in the case of Deliverable Securities, all Transaction Costs which would be incurred or reasonably anticipated in connection with the purchase or sale of such Securities;

	
 
	
(iv)
	
“Receivable Securities” means Equivalent Securities or Equivalent Margin Securities to be delivered to the Defaulting Party; and

	
 
	
(v)
	
“Transaction Costs” in relation to any transaction contemplated in paragraph 10(e) or (f) means the reasonable costs, commissions, fees and expenses (including any mark-up or mark-down or premium paid for guaranteed delivery) incurred or reasonably anticipated in connection with the purchase of Deliverable Securities or sale of Receivable Securities, calculated on the assumption that the aggregate thereof is the least that could reasonably be expected to be paid in order to carry out the transaction.

	
(f)
	
If -

	
 
	
(i)
	
on or about the Early Termination Date the non-Defaulting Party has sold, in the case of Receivable Securities, or purchased, in the case of Deliverable Securities, Securities which form part of the same issue and are of an identical type and description as those Equivalent Securities or Equivalent Margin Securities (regardless as to whether or not such sales or purchases have settled), the non-

19

 

	
 
		
Defaulting Party may elect to treat as the Default Market Value -

	
 
	
(A)
	
in the case of Receivable Securities, the net proceeds of such sale after deducting all reasonable costs, commissions, fees and expenses incurred in connection therewith (provided that, where the Securities sold are not identical in amount to the Equivalent Securities or Equivalent Margin Securities, the non-Defaulting Party may, acting in good faith, either (x) elect to treat such net proceeds of sale divided by the amount of Securities sold and multiplied by the amount of the Equivalent Securities or Equivalent Margin Securities as the Default Market Value or (y) elect to treat such net proceeds of sale of the Equivalent Securities or Equivalent Margin Securities actually sold as the Default Market Value of that proportion of the Equivalent Securities or Equivalent Margin Securities, and, in the case of (y), the Default Market Value of the balance of the Equivalent Securities or Equivalent Margin Securities shall be determined separately in accordance with the provisions of this paragraph 10(f)); or

	
 
	
(B)
	
in the case of Deliverable Securities, the aggregate cost of such purchase, including all reasonable costs, commissions, fees and expenses incurred in connection therewith (provided that, where the Securities purchased are not identical in amount to the Equivalent Securities or Equivalent Margin Securities, the non-Defaulting Party may, acting in good faith, either (x) elect to treat such aggregate cost divided by the amount of Securities sold and multiplied by the amount of the Equivalent Securities or Equivalent Margin Securities as the Default Market Value or (y) elect to treat the aggregate cost of purchasing the Equivalent Securities or Equivalent Margin Securities actually purchased as the Default Market Value of that proportion of the Equivalent Securities or Equivalent Margin Securities, and, in the case of (y), the Default Market Value of the balance of the Equivalent Securities or Equivalent Margin Securities shall be determined separately in accordance with the provisions of this paragraph 10(f));

	
 
	
(ii)
	
on or about the Early Termination Date the non-Defaulting Party has received, in the case of Deliverable Securities, offer quotations or, in the case of Receivable Securities, bid quotations in respect of Securities of the relevant description from two or more market makers or regular dealers in the Appropriate Market in a commercially reasonable size, using pricing methodology which is customary for the relevant type of security (as determined by the non-Defaulting Party) the non-Defaulting Party may elect to treat as the Default Market Value of such Securities -

	
 
	
(A)
	
the price quoted (or where a price is quoted by two or more market makers, the arithmetic mean of such prices) by each of them for, in the case of Deliverable Securities, the sale by the relevant market maker or dealer of such Securities or, in the case of Receivable Securities, the purchase by the relevant market maker or dealer of such Securities provided that such price 

20

 

	
 
		
or prices quoted may be adjusted in a commercially reasonable manner by the non-Defaulting Party (x) to reflect accrued but unpaid coupons not reflected in the price or prices quoted in respect of such securities and (y) in respect of any Pool Factor Affected Security, to reflect the realisable value of such Security, taking into consideration the Pool Factor Distortion (and for this purpose, “Pool Factor Affected Security” means a security other than an equity security in respect of which the decimal value of the outstanding principal divided by the original principal balance of such Security is less than one (as indicated by any pool factor applicable to such security), such circumstance a “Pool Factor Distortion”);

	
 
	
(B)
	
after deducting, in the case of Receivable Securities, or adding, in the case of Deliverable Securities the Transaction Costs which would be incurred or reasonably anticipated in connection with such a transaction; or

	
 
	
(iii)
	
if, acting in good faith the non-Defaulting Party either -

	
 
	
(A)
	
has endeavoured but been unable to sell or purchase Securities in accordance with sub-paragraph (i) above or to obtain quotations in accordance with sub-paragraph (ii) above (or both); or

	
 
	
(B)
	
has determined that it would not be commercially reasonable to sell or purchase Securities at the prices bid or offered or to obtain such quotations, or that it would not be commercially reasonable to use any quotations which it has obtained under sub-paragraph (ii) above, the non-Defaulting Party may determine the Net Value of the relevant Equivalent Securities or Equivalent Margin Securities (which shall be specified) and may treat such Net Value as the Default Market Value of the relevant Equivalent Securities or Equivalent Margin Securities.

	
(g)
	
The Defaulting Party shall be liable to the non-Defaulting Party for the amount of all reasonable and legal and other professional expenses incurred by the non-Defaulting Party in connection with or as a consequence of an Event of Default, together with interest thereon at the Applicable Rate or, in the case of an expense attributable to a particular Transaction, the Pricing Rate for the relevant Transaction if that Pricing Rate is greater than the Applicable Rate.

	
(h)
	
If Seller fails to deliver Purchased Securities to Buyer on the applicable Purchase Date Buyer may -

	
 
	
(i)
	
if it has paid the Purchase Price to Seller, require Seller immediately to repay the sum so paid;

	
 
	
(ii)
	
if Buyer has a Transaction Exposure to Seller in respect of the relevant Transaction, require Seller from time to time to pay Cash Margin at least equal to such Transaction Exposure;

21

 

	
 
	
(iii)
	
at any time while such failure continues, terminate the Transaction by giving written notice to Seller. On such termination the obligations of Seller and Buyer with respect to delivery of Purchased Securities and Equivalent Securities shall terminate and Seller shall pay to Buyer an amount equal to the excess of the Repurchase Price at the date of Termination over the Purchase Price.

	
(i)
	
If Buyer fails to deliver some or all Equivalent Securities to Seller on the applicable Repurchase Date Seller may -

	
 
	
(i)
	
if it has paid the Repurchase Price to Buyer, require Buyer immediately to repay the sum so paid;

	
 
	
(ii)
	
if Seller has a Transaction Exposure to Buyer in respect of the relevant Transaction, require Buyer from time to time to pay Cash Margin at least equal to such Transaction Exposure;

	
 
	
(iii)
	
at any time while such failure continues, by written notice to Buyer declare that that Transaction or part of that Transaction corresponding to the Equivalent Securities that have not been delivered (but only that Transaction or part of Transaction) shall be terminated immediately in accordance with sub-paragraph (c) above (disregarding for this purpose references in that sub-paragraph to transfer of Cash Margin, delivery of Equivalent Margin Securities and payment of Cash Equivalent Amount and as if references to the Repurchase Date were to the date on which notice was given under this sub-paragraph).

	
(j)
	
The provisions of this Agreement constitute a complete statement of the remedies available to each party in respect of any Event of Default.

	
(k)
	
Subject to paragraph 10(1), neither party may claim any sum by way of consequential loss or damage in the event of a failure by the other party to perform any of its obligations under this Agreement.

	
(l)
	
(i)
	
Subject to sub-paragraph (ii) below, if as a result of a Transaction terminating before its agreed Repurchase Date or a Forward Transaction terminating before its Purchase Date under paragraphs 10(b), 10(h)(iii) or 10(i)(iii), the non-Defaulting Party, in the case of paragraph 10(b), Buyer, in the case of paragraph 10(h)(iii), or Seller, in the case of paragraph 10(i)(iii), (in each case the “first party”) incurs any loss or expense in entering into replacement transactions or in otherwise hedging its exposure arising in connection with a Transaction so terminating, the other party shall be required to pay to the first party the amount determined by the first party in good faith and without double counting to be equal to the loss or expense incurred in connection with such replacement transactions or hedging (including all fees, costs and other expenses) less the amount of any profit or gain made by that party in connection with such replacement transactions or hedging; provided that if that calculation results in a negative number, an amount equal to that number shall be payable by the first party to the other party.

22

 

	
 
	
(ii)
	
If the first party reasonably decides, instead of entering into such replacement transactions, to replace or unwind any hedging transactions which the first party entered into in connection with the Transaction so terminating, or to enter into any replacement hedging transactions, the other party shall be required to pay to the first party the amount determined by the first party in good faith to be equal to the loss or expense incurred in connection with entering into such replacement or unwinding (including all fees, costs and other expenses) less the amount of any profit or gain made by that party in connection with such replacement or unwinding; provided that if that calculation results in a negative number, an amount equal to that number shall be payable by the first party to the other party.

	
(m)
	
Each party shall immediately notify the other if an Event of Default, or an event which, upon the service of a notice or the lapse of time, or both, would be an Event of Default, occurs in relation to it.

	
(n)
	
Any amount payable to one party (the Payee) by the other party (the Payer) under paragraph 10(d) may, at the option of the non-Defaulting Party, be reduced by its set off against any amount payable (whether at such time or in the future or upon the occurrence of a contingency) by the Payee to the Payer (irrespective of the currency, place of payment or booking office of the obligation) under any other agreement between the Payee and the Payer or instrument or undertaking issued or executed by one party to, or in favour of, the other party. If an obligation is unascertained, the non-Defaulting Party may in good faith estimate that obligation and set off in respect of the estimate, subject to accounting to the other party when the obligation is ascertained. Nothing in this paragraph shall be effective to create a charge or other security interest. This paragraph shall be without prejudice and in addition to any right of set off, combination of accounts, lien or other right to which any party is at any time otherwise entitled (whether by operation of law, contract or otherwise).

	
11.
	
Tax Event

	
(a)
	
This paragraph shall apply if either party notifies the other that -

	
 
	
(i)
	
any action taken by a taxing authority or brought in a court of competent jurisdiction (regardless of whether such action is taken or brought with respect to a party to this Agreement); or

	
 
	
(ii)
	
a change in the fiscal or regulatory regime (including, but not limited to, a change in law or in the general interpretation of law but excluding any change in any rate of tax), has or will, in the notifying party’s reasonable opinion, have a material adverse effect on that party in the context of a Transaction.

	
(b)
	
If so requested by the other party, the notifying party will furnish the other with an opinion of a suitably qualified adviser that an event referred to in sub-paragraph (a)(i) or (ii) above has occurred and affects the notifying party.

	
(c)
	
Where this paragraph applies, the party giving the notice referred to in sub-paragraph (a) may, subject to sub-paragraph (d) below, terminate the Transaction with effect from a date specified in the notice, not being earlier (unless so agreed by the other party) than 30 days after the date of the notice, by nominating that date as the Repurchase Date.

23

 

	
(d)
	
If the party receiving the notice referred to in sub-paragraph (a) so elects, it may override that notice by giving a counter-notice to the other party. If a counter-notice is given, the party which gives the counter-notice will be deemed to have agreed to indemnify the other party against the adverse effect referred to in sub-paragraph (a) so far as relates to the relevant Transaction and the original Repurchase Date will continue to apply.

	
(e)
	
Where a Transaction is terminated as described in this paragraph, the party which has given the notice to terminate shall indemnify the other party against any reasonable legal and other professional expenses incurred by the other party by reason of the termination, but the other party may not claim any sum by way of consequential loss or damage in respect of a termination in accordance with this paragraph.

	
(f)
	
This paragraph is without prejudice to paragraph 6(b) (obligation to pay additional amounts if withholding or deduction required); but an obligation to pay such additional amounts may, where appropriate, be a circumstance which causes this paragraph to apply.

	
12.
	
Interest

To the extent permitted by applicable law, if any sum of money payable hereunder or under any Transaction is not paid when due, interest shall accrue on the unpaid sum as a separate debt at the greater of the Pricing Rate for the Transaction to which such sum relates (where such sum is referable to a Transaction) and Applicable Rate on a 360 day basis or 365 day basis in accordance with the applicable market convention (or as otherwise agreed by the parties), for the actual number of days during the period from and including the date on which payment was due to, but excluding, the date of payment.

	
13.
	
Single Agreement

Each party acknowledges that, and has entered into this Agreement and will enter into each Transaction hereunder in consideration of and in reliance upon the fact that all Transactions hereunder constitute a single business and contractual relationship and are made in consideration of each other. Accordingly, each party agrees (i) to perform all of its obligations in respect of each Transaction hereunder, and that a default in the performance of any such obligations shall constitute a default by it in respect of all Transactions hereunder, and (ii) that payments, deliveries and other transfers made by either of them in respect of any Transaction shall be deemed to have been made in consideration of payments, deliveries and other transfers in respect of any other Transactions hereunder.

	
14.
	
Notices and Other Communications

	
(a)
	
Any notice or other communication to be given under this Agreement -

	
 
	
(i)
	
shall be in the English language, and except where expressly otherwise provided in this Agreement, shall be in writing;

	
 
	
(ii)
	
may be given in any manner described in sub-paragraphs (b) and (c) below;

24

 

	
 
	
(iii)
	
shall be sent to the party to whom it is to be given at the address or number, or in accordance with the electronic messaging details, set out in Annex I.

	
(b)
	
Subject to sub-paragraph (c) below, any such notice or other communication shall be effective -

	
 
	
(i)
	
if in writing and delivered in person or by courier, on the date when it is delivered;

	
 
	
(ii)
	
if sent by facsimile transmission, on the date when the transmission is received by a responsible employee of the recipient in legible form (it being agreed that the burden of proving receipt will be on the sender and will not be met by a transmission report generated by the sender’s facsimile machine);

	
 
	
(iii)
	
if sent by certified or registered mail (airmail, if overseas) or the equivalent (return receipt requested), on the date that mail is delivered or its delivery is attempted; or

	
 
	
(iv)
	
if sent by Electronic Messaging System, on the date that electronic message is received; except that any notice or communication which is received, or delivery of which is attempted, after close of business on the date of receipt or attempted delivery or on a day which is not a day on which commercial banks are open for business in the place where that notice or other communication is to be given shall be treated as given at the opening of business on the next following day which is such a day.

	
(c)
	
If -

	
 
	
(i)
	
there occurs in relation to either party an Event of Default; and

	
 
	
(ii)
	
the non-Defaulting Party, having made all practicable efforts to do so, including having attempted to use at least two of the methods specified in sub-paragraph (b)(ii), (iii) or (iv) above, has been unable to serve a Default Notice by one of the methods specified in those sub-paragraphs (or such of those methods as are normally used by the non-Defaulting Party when communicating with the Defaulting Party),

the non-Defaulting Party may sign a written notice (a “Special Default Notice”) which -

	
 
	
(A)
	
specifies the relevant event referred to in paragraph 10(a) which has occurred in relation to the Defaulting Party;

	
 
	
(B)
	
specifies the Early Termination Date designated in the Default Notice;

	
 
	
(C)
	
states that the non-Defaulting Party, having made all practicable efforts to do so, including having attempted to use at least two of the methods specified in sub-paragraph (b)(ii), (iii) or (iv) above, has been unable to serve a Default Notice by one of the methods specified in those sub-paragraphs (or such of those methods as are normally used by the non-Defaulting Party when communicating with the Defaulting Party); and

25

 

	
 
	
(D)
	
specifies the date on which, and the time at which, the Special Default Notice is signed by the non-Defaulting Party.

On the signature of a Special Default Notice the Early Termination Date shall occur as designated in the Default Notice. A Special Default Notice shall be given to the Defaulting Party as soon as practicable after it is signed.

	
(d)
	
Either party may by notice to the other change the address or facsimile number or Electronic Messaging System details at which notices or other communications are to be given to it.

	
15.
	
Entire Agreement; Severability

This Agreement shall supersede any existing agreements between the parties containing general terms and conditions for Transactions. Each provision and agreement herein shall be treated as separate from any other provision or agreement herein and shall be enforceable notwithstanding the unenforceability of any such other provision or agreement.

	
16.
	
Non-assignability; Termination

	
(a)
	
Subject to sub-paragraph (b) below, neither party may assign, charge or otherwise deal with (including without limitation any dealing with any interest in or the creation of any interest in) its rights or obligations under this Agreement or under any Transaction without the prior written consent of the other party. Subject to the foregoing, this Agreement and any Transactions shall be binding upon and shall inure to the benefit of the parties and their respective successors and assigns.

	
(b)
	
Sub-paragraph (a) above shall not preclude a party from assigning, charging or otherwise dealing with all or any part of its interest in any sum payable to it under paragraph 10(c) or (g) above.

	
(c)
	
Either party may terminate this Agreement by giving written notice to the other, except that this Agreement shall, notwithstanding such notice, remain applicable to any Transactions then outstanding.

	
(d)
	
All remedies hereunder shall survive Termination in respect of the relevant Transaction and termination of this Agreement.

	
(e)
	
The participation of any additional member State of the European Union in economic and monetary union after 1 January 1999 shall not have the effect of altering any term of the Agreement or any Transaction, nor give a party the right unilaterally to alter or terminate the Agreement or any Transaction.

26

 

	
17.
	
Governing Law

This Agreement and any non-contractual obligations arising out of or in connection with this Agreement shall be governed by, and interpreted in accordance with, the laws of England.

The English courts shall have exclusive jurisdiction in relation to all disputes (including claims for set-off and counterclaims) arising out of or in connection with this Agreement including, without limitation disputes arising out of or in connection with: (i) the creation, validity, effect, interpretation, performance or non-performance of, or the legal relationships established by, this Agreement and (ii) any non-contractual obligations arising out of or in connection with this Agreement. For such purposes, Buyer and Seller hereby irrevocably submit to the jurisdiction of the English courts and waive any objection to the exercise of such jurisdiction.

Party A hereby appoints the person identified in Annex I as its agent to receive on its behalf service of process in such courts. If such agent ceases to be its agent, Party A shall promptly appoint, and notify Party B of the identity of, a new agent in England. If Party A fails to appoint such an agent, Party A agrees that Party B shall be entitled to appoint one on behalf of Party A at the expense of Party A.

Party B hereby appoints the person identified in Annex I as its agent to receive on its behalf service of process in such courts. If such agent ceases to be its agent, Party B shall promptly appoint, and notify Party A of the identity of, a new agent in England. If Party B fails to appoint such an agent, Party B agrees that Party A shall be entitled to appoint one on behalf of Party B at the expense of Party B.

Each party shall deliver to the other, within 30 days of the date of this Agreement in the case of the appointment of a person identified in Annex I or of the date of the appointment of the relevant agent in any other case, evidence of the acceptance by the agent appointed by it pursuant to this paragraph of such appointment.

	
18.
	
No Waivers, etc.

No express or implied waiver of any Event of Default by either party shall constitute a waiver of any other Event of Default and no exercise of any remedy hereunder by any party shall constitute a waiver of its right to exercise any other remedy hereunder. No modification or waiver of any provision of this Agreement and no consent by any party to a departure herefrom shall be effective unless and until such modification, waiver or consent shall be in writing and duly executed by both of the parties hereto. Without limitation on any of the foregoing, the failure to give a notice pursuant to paragraph 4(a) hereof will not constitute a waiver of any right to do so at a later date.

27

 

	
19.
	
Waiver of Immunity

Each party hereto hereby waives, to the fullest extent permitted by applicable law, all immunity (whether on the basis of sovereignty or otherwise) from jurisdiction, attachment (both before and after judgment) and execution to which it might otherwise be entitled in any action or proceeding in the Courts of England or of any other country or jurisdiction, relating in any way to this Agreement or any Transaction, and agrees that it will not raise, claim or cause to be pleaded any such immunity at or in respect of any such action or proceeding.

	
20.
	
Recording

The parties agree that each may electronically record all telephone conversations between them.

	
21.
	
Third Party Rights

No person shall have any right to enforce any provision of this Agreement under the Contracts (Rights of Third Parties) Act 1999.

 

	
PARTY A
	
 
	
PARTY B

	
 
	
 
	
 

	
UBS AG, London branch
	
 
	
BC PARTNERS LENDING CORPORATION

	
 
	
 
	
 

	
By:
	
/s/ Sergio Breton
	
 
	
By:
	
/s/ Edward Goldthorpe

	
Name:
	
Sergio Breton
	
 
	
Name:
	
Edward Goldthorpe

	
Title:
	
Director
	
 
	
Title:
	
Partner, BC Partners Credit

	
Date:
	
 
	
 
	
Date:
	
December 11, 2019

	
 
	
 
	
 

 

	
By:
	
/s/ Jennifer Gabrielson
	
 
	
 

	
Name:
	
Jennifer Gabrielson
	
 
	
 

	
Title:
	
Director
	
 
	
 

	
Date:
	
 
	
 
	
 

 

 

 

28

 

GMRA 2011

 

ANNEX I

Supplemental Terms or Conditions

The following terms and conditions supplement and are a part of the Global Master Repurchase Agreement dated the date hereof (the “Agreement”) between UBS AG, London Branch (“Party A”), a banking corporation organized under the laws of Switzerland, and BC PARTNERS LENDING CORPORATION (“Party B”), a corporation organized under the laws of the State of Maryland.  In the event of a conflict between provisions of this Annex I and the Agreement, the provisions of this Annex I shall govern.  Capitalized terms used but not defined shall have the meanings ascribed to them in the Agreement.

Paragraph references are to paragraphs in the Agreement.

	
1.
	
The following elections shall apply:

	
(a)
	
paragraph 1(c)(i).  Buy/Sell Back Transactions may be effected under this Agreement, and accordingly the Buy/Sell Back Annex shall apply.

	
(b)
	
paragraph 1(c)(ii).  Transactions in Net Paying Securities may be effected under this Agreement, and accordingly the provisions of sub-paragraphs (i) to (ii) below shall apply.

	
 
	
(i)
	
The phrase "other than equities and Net Paying Securities" shall be replaced by the phrase "other than equities".

	
 
	
(ii)
	
In the Buy/Sell Back Annex the following words shall be added to the end of the definition of the expression "IR": "and for the avoidance of doubt the reference to the amount of Income for these purposes shall be to an amount paid without withholding or deduction for or on account of taxes or duties notwithstanding that a payment of such Income made in certain circumstances may be subject to such a withholding or deduction".

	
(c)
	
paragraph 1(d). Agency Transactions may not be effected under this Agreement, and accordingly the Agency Annex shall not apply.  

	
(d)
	
The following Annex(es) shall apply / not apply, as specified:

	
 
	
(i)
	
Transactions in gilt-edged securities may be effected under this Agreement and accordingly the Gilt Annex shall apply.  

	
 
	
(ii)
	
Equity Transactions may not be effected under this Agreement and accordingly the Equity Annex shall not apply.

	
 
	
(ii)
	
Transactions in Italian Domestic Purchased Securities may be effected under this Agreement and accordingly the Italian Annex shall apply.

	
 
	
(iv)
	
Transactions in Japanese Securities may be effected under this Agreement and accordingly the Japanese Annex shall apply.  

	
(e)
	
paragraph 2(e).  The Base Currency shall be: United States Dollars ("USD").

29

 

	
(f)
	
paragraph 2(ee).  The pricing source for calculation of Market Value shall be: failing agreement, any generally accepted pricing source for the relevant Securities, which in the case of UK gilt-edged securities, shall include Tradeweb FTSE Gilt Closing Prices.

	
(g)
	
paragraph 2(p).  Designated Office:      Party A:       London

                                                               Party B:        New York

	
(h)
	
paragraph 2(xx):  Transaction Exposure method B.  

	
(i)
	
paragraph 3(b).  Both Seller and Buyer to deliver Confirmation. 

	
(j)
	
paragraph 4(e).  Unless otherwise agreed between the parties, Cash Margin may only be delivered in the following currencies: 

Base Currency

Sterling

EUR

	
(k)
	
paragraph 4(f). Unless otherwise agreed between the parties at the time a margin call is made, the Interest Rate on Cash Margin shall be: 

Fed Funds Effective for Base Currency 

SONIA for Sterling

EONIA for EUR

Interest to be payable monthly. 

	
(l)
	
paragraph 4(g).  Delivery period for Margin Transfers shall be:

(1)in respect of Cash Margin, any Margin Securities or Equivalent Margin Securities denominated in USD same day if the call is made before 10 am (New York time) and if requested after such time on such Business Day, on the next Business Day; and

(2)in respect of Cash Margin, any Margin Securities or Equivalent Margin Securities denominated in any other currency, next Business Day if the call is made before 10 am (New York time), and if requested after such time on such Business Date, on the second next Business Day.

	
(m)
	
paragraph 6(j).  Paragraph 6(j) shall apply provided that it shall only apply to the events specified in sub-paragraphs 10(a)(i) and 10(a)(iii) to (xiii) (inclusive); provided, however, and without limiting the rights of a non-Defaulting Party under paragraph 10, a party’s right to suspend payments due to the condition precedent set forth in paragraph 6(j) with respect to an Event of Default shall only apply for a period not longer than 60 days after the non-Defaulting Party has received a Termination Request  (as defined below) from the Defaulting Party and provided further that the Defaulting Party shall promptly provide the non-Defaulting Party with such material information as it may reasonably request during such period.

30

 

For the purposes herein, a Termination Request shall mean a notice requesting that the non-Defaulting Party suspend its payment or delivery obligations for no longer than 60 days. A Termination Request may only be made and shall only be applicable at a time when the non-Defaulting Party is otherwise entitled to send a Default Notice under paragraph 10 of this Agreement, and nothing herein shall limit the non-Defaulting Party's right to send such Default Notice. Such Termination Request may only be delivered to the non-Defaulting Party after the non-Defaulting Party does not make a payment or delivery when due under this Agreement by reason of the condition precedent set forth in paragraph 6(j) not being satisfied. The Termination Request shall not be effective unless delivered in the manner set forth in paragraph 14 of the Agreement as if it was a notice under paragraph 10.

	
(n)
	
paragraph 9(g) is amended by deleting the word “and” at the end of sub-clause (iii), and including the following as an additional paragraph:

“References in this clause to a “party" shall, in the case of UBS AG and where the context so allows, include reference to any Affiliate of UBS AG, and”

	
(o)
	
paragraph 10(a)(ii).  paragraph 10(a)(ii) shall not apply. 

	
(p)
	
paragraph 10(b).  Automatic Early Termination shall apply with respect to Party A with respect to the occurrence of the following events only: the Opening of Bankruptcy (“Konkurseröffnung”) under Swiss law; the opening of Composition Proceedings (“Nachlassverfahren”) under Swiss law and shall not apply with respect to Party B.

	
(q)
	
paragraph 14.  For the purposes of paragraph 14 of this Agreement -

	
 
	
(i)
	
Address for notices and other communications for Party A when acting through its London Branch:

 

	
 
	
Address:
	
5 Broadgate, London EC2M 2QS

	
 
	
Attention:
	
Documentation Unit / Legal Department

	
 
	
Telephone:
	
+44 20 7567 8000

	
 
	
Facsimile:
	
+44 20 7567 4406 / +44 20 7568 9257

	
 
	
(ii)
	
Address for notices and other communications for Party B:

For operational notices:

Address: 650 Madison Avenue, 23rd Floor, New York, NY 10022

Attention: Joseph Barillaro

Telephone: 212 796 1806

Email: Notices@bcpartners.com 

For legal notices: 

Simpson Thacher & Bartlett LLP

Address: 900 G Street, N.W., Washington, D.C. 20001

Attention: Christopher Healey

and to

Simpson Thacher & Bartlett LLP

Address: City Point, One Ropemaker Street, London EC2Y 9HU, England

Attention: Jason Glover 

31

 

	
(r)
	
paragraph 17.  For the purposes of paragraph 17 of this Agreement: 

	
 
	
(i)
	
Party A appoints: not applicable; and

	
 
	
(ii)
	
Party B appoints: BC Partners LLP, 40 Portman Square, London W1H 6DA UK, F: +44 20 7009 4899, P: +44 20 7009 4800, Attention: Compliance Officer as its agent for service of process. 

	
2.
	
The following supplemental terms and conditions shall apply. To the extent that these supplemental terms and conditions conflict with the provisions contained in the Agreement, the provisions contained in this paragraph 2 of Annex I shall prevail. 

	
(a)
	
With effect from the date of this Agreement:

	
 
	
(i)
	
any existing repurchase agreements between the parties will be terminated. 

	
 
	
(ii)
	
Unless otherwise agreed:

	
 
	
(A)
	
This Agreement will govern all outstanding Transactions between the parties;

	
 
	
(B)
	
The confirmation for each such Transaction will supplement and form part of this Agreement; and

	
 
	
(C)
	
All such confirmations, together with this Agreement, will constitute a single agreement. 

	
(b)
	
Negative rate Transactions.  In the case of Transactions in which the Pricing Rate will be negative, the parties agree that if Seller fails to deliver the Purchased Securities on the Purchase Date then –

	
 
	
(i)
	
Buyer may by notice to Seller terminate the Transaction (and may continue to do so for every day that Seller fails to deliver the Purchased Securities); and

	
 
	
(ii)
	
for every day that Seller fails to deliver the Purchased Securities the Pricing Rate shall be zero.

	
(c)
	
Forward Transactions.  The parties agree that Forward Transactions (as defined in sub‐paragraph (i)(A) below) may be effected under this Agreement and accordingly the provisions of sub‐paragraphs (i) to (iv) below shall apply.

	
 
	
(i)
	
The following definitions shall apply –

	
 
	
(A)
	
"Forward Transaction", a Transaction in respect of which the Purchase Date is at least three Business Days after the date on which the Transaction was entered into and has not yet occurred;

32

 

	
 
	
(B)
	
"Forward Repricing Date", with respect to any Forward Transaction the date which is such number of Business Days before the Purchase Date as is equal to the minimum period for the delivery of margin applicable under paragraph 4(g).

	
 
	
(ii)
	
The Confirmation relating to any Forward Transaction may describe the Purchased Securities by reference to a type or class of Securities, which, without limitation, may be identified by issuer or class of issuers and a maturity or range of maturities.  Where this paragraph applies, the parties shall agree the actual Purchased Securities not less than two Business Days before the Purchase Date and Buyer or Seller (or both), as shall have been agreed, shall promptly deliver to the other party a Confirmation which shall describe such Purchased Securities.

	
 
	
(iii)
	
At any time between the Forward Repricing Date and the Purchase Date for any Forward Transaction the parties may agree either –

	
 
	
(A)
	
to adjust the Purchase Price under that Forward Transaction; or

	
 
	
(B)
	
to adjust the number of Purchased Securities to be sold by Seller to Buyer under that Forward Transaction.

	
 
	
(iv)
	
Where the parties agree to an adjustment under paragraph (iii) above, Buyer or Seller (or both), as shall have been agreed, shall promptly deliver to the other party a Confirmation of the Forward Transaction, as adjusted under paragraph (iii) above.  

	
(d)
	
Where the parties agree that this paragraph shall apply, paragraphs 2 and 4 of the Agreement are amended as follows.

	
 
	
(i)
	
Paragraph 2(xx) is deleted and replaced by the following‐ 

"(xx)" Transaction Exposure" means -

	
 
	
(i)
	
with respect to any Forward Transaction at any time between the Forward Repricing Date and the Purchase Date, the difference between (A) the Market Value of the Purchased Securities at the relevant time and (B) the Purchase Price;

	
 
	
(ii)
	
with respect to any Transaction at any time during the period (if any) from the Purchase Date to the date on which the Purchased Securities are delivered to Buyer or, if earlier, the date on which the Transaction is terminated under paragraph 10(h), the difference between (A) the Market Value of the Purchased Securities at the relevant time and (B) the Repurchase Price at the relevant time;

	
 
	
(iii)
	
with respect to any Transaction at any time during the period from the Purchase Date (or, if later, the date on which the Purchased Securities are delivered to Buyer or the Transaction is terminated under paragraph 10(h)) to the Repurchase Date (or, if later, the date on which Equivalent Securities are delivered to Seller or the Transaction is terminated under paragraph 10(g)), the difference between (A) the Repurchase Price at the 

33

 

	
 
		
relevant time multiplied by the applicable Margin Ratio (or, where the Transaction relates to Securities of more than one description to which different Margin Ratios apply, the amount produced by multiplying the Repurchase Price attributable to Equivalent Securities of each such description by the applicable Margin Ratio and aggregating the resulting amounts, the Repurchase Price being for this purpose attributed to Equivalent Securities of each such description in the same proportions as those in which the Purchase Price was apportioned among the Purchased Securities) and (B) the Market Value of Equivalent Securities at the relevant time.

In each case, if (A) is greater than (B), Buyer has a Transaction Exposure for that Transaction equal to the excess, and if (B) is greater than (A), Seller has a Transaction Exposure to Buyer equal to the excess."

	
 
	
(ii)
	
In paragraph 4(c) ‐

	
 
	
(aa)
	
the words "any amount payable to the first party under paragraph 5 but unpaid" are deleted and replaced by "any amount which will become payable to the first party under paragraph 5 during the period after the time at which the calculation is made which is equal to the minimum period for the delivery of margin applicable under paragraph 4(g) or which is payable to the first party under paragraph 5 but unpaid"; and

	
 
	
(bb)
	
the words "any amount payable to the other party under paragraph 5 but unpaid" are deleted and replaced by "any amount which will become payable to the other party under paragraph 5 during the period after the time at which the calculation is made which is equal to the minimum period for the delivery of margin applicable under paragraph 4(g) or which is payable to the other party under paragraph 5 but unpaid".

	
(e)
	
Upon execution of this Agreement, each party shall deliver to the other evidence of signing authority and specimen signatures.

Additionally, with respect to the parties:  

(i)Party B agrees to provide Party A with the following on the date of execution of the Agreement:  (A) a copy of its memorandum and articles of association or equivalent constitutive documents; (B) a copy of the board resolution authorizing its entry into this Agreement and the Transactions hereunder (or limited liability company agreement, as applicable); (C) a copy of its certificate of incorporation (or limited liability company certificate, as applicable); (D) a copy of the investment advisory agreement between Party B and the Investment Adviser; (E) evidence of the authority and true signatures of each official or representative signing this Agreement or, as the case may be, a Confirmation, on its behalf; and (F) such other similar documentation as Party A may reasonably request.

34

 

(ii)Party B agrees to provide Party A with the following at the time stated below: (A) quarterly unaudited financial statements within 60 days of each quarter-end; and (B) the annual audited financial statements of Party B within 90 days of the end of Party B’s financial year, provided, however, that Party B shall be deemed to have satisfied such delivery requirement by making such report available to the general public by publication thereof on its website or on the U.S. Securities and Exchange Commission EDGAR information retrieval system.

(iii)Party B agrees to provide Party A with the following tax document on or before the date of execution of the Agreement:  A duly completed and executed U.S. Internal Revenue Service Form W‐9.

(iv)Party A agrees to provide Party B with the following tax document on or before the date of execution of the Agreement: a) with respect to each Transaction that is entered into under this Agreement whereby Party A is acting as nominee on behalf of UBS Securities LLC, a person that is a “US person” as that term is defined under Section 7701(a)(30) of the Code, a duly completed and executed U.S. Internal Revenue Service Form W- 8IMY (or successor thereto) for UBS AG, together with any required withholding statements or schedules and a duly executed and completed U.S. Internal Revenue Service Form W-9 for UBS Securities LLC; and b) with respect to each other Transaction one duly executed and completed U.S. Internal Revenue Service Form W-8BEN-E (or any successor of such form).

	
(f)
	
Margin Transfer may not be required by either party unless its Net Exposure in respect of the other party is more than USD 100,000.

	
(g)
	
[Reserved].

	
(h)
	
Paragraph 2.  The following additional definitions shall be included in Paragraph 2:

“Affiliate” means in relation to any person, any entity controlled, directly or indirectly by the person, any entity that controls, directly or indirectly, the person or any entity directly or indirectly under common control with the person.  For this purpose, “control” of any entity or person means ownership of a majority of the voting power of the entity or person.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, or any successor statute.

“Specified Entity” means (i) in relation to Party A, none and (ii) in relation to Party B, Great Lakes BCPL Funding Ltd.

“Specified Indebtedness” shall mean any obligation (whether present or future, contingent or otherwise as principal or surety or otherwise) in respect of any (a) borrowed money, (b) any transaction that would be a Specified Transaction but for the fact that it is between one party to this Agreement (or any applicable Specified Entity of such party) and any party other than the other party to this Agreement (or any applicable Specified Entity of such other party), or (c) commencing on and including the date hereof and ending on June 17, 2020, any obligation for payment in respect of loan commitments.

35

 

“Specified Transaction” means, (a) any transaction (including an agreement with respect to any such transaction) now existing or hereafter entered into between one party to this Agreement (or any applicable Specified Entity of such party) and the other party to this Agreement (or any applicable Specified Entity of such other party) which is not a Transaction under this Agreement but (i) which is a rate swap transaction, swap option, basis swap, forward rate transaction, commodity swap, commodity option, equity or equity index swap, equity or equity index option, bond option, interest rate option, foreign exchange transaction, cap transaction, floor transaction, collar transaction, currency swap transaction, cross-currency rate swap transaction, currency option, credit protection transaction, credit swap, credit default swap, credit default option, total return swap, credit spread transaction, repurchase transaction, reverse repurchase transaction, buy/sell-back transaction, securities lending transaction, weather index transaction, letters of credit reimbursement obligation, indebtedness for borrowed money (whether or not evidenced by a note or similar instrument), any transactions or obligations under any prime brokerage agreement or centrally cleared derivative agreements or forward purchase or sale of a security, commodity or other financial instrument or interest (including any option with respect to any of these transactions) or (ii) which is a type of transaction that is similar to any transaction referred to in clause (i) above that is currently, or in the future becomes, recurrently entered into in the financial markets (including terms and conditions incorporated by reference in such agreement) and which is a forward, swap, future, option or other derivative on one or more rates, currencies, commodities, equity securities or other equity instruments, debt securities or other debt instruments, economic indices or measures of economic risk or value, or other benchmarks against which payments or deliveries are to be made, (b) any combination of these transactions and (c) any other transaction identified as a Specified Transaction in this Agreement or the relevant confirmation; provided that Specified Transaction shall not include any transaction which is an indebtedness for borrowed money (whether or not evidenced by a note or similar instrument) of Great Lakes BCPL Funding Ltd. 

“Threshold Amount” shall mean (i) in relation to Party A: an amount equal to 3% of the shareholder equity of Party A (howsoever described) as shown in its most recent annual audited financial statements; and (ii) in relation to Party B: the lesser of USD 10,000,000 (or the equivalent in any other currency or currencies) or an amount equal to 3% of the Net Asset Value.

“Net Asset Value” shall mean (1) USD 21,000,000 (or the equivalent in any other currency or currencies) initially and (2) on and after the filing of Party B’s Form 10-K for the fiscal year ending December 31, 2019 with the U.S. Securities and Exchange Commission EDGAR information retrieval system, the aggregate net asset value of Party B, as shown in its most recent quarterly or annual financial statements.

	
(i)
	
Additional Events of Default

The word "or" shall be added at the end of paragraph 10(a)(x) and the following paragraphs shall be inserted in paragraph 10(a) immediately after paragraph 10(a)(x):

36

 

	
 
	
“(xi)
	
the occurrence of a default, event of default or other similar condition or event (howsoever described) under any Specified Transaction between Party A or any Specified Entity of Party A and Party B or any Specified Entity of Party B and, after giving effect to any applicable notice requirement or grace period, results in a liquidation of, an acceleration of obligations under, or an early termination of, that Specified Transaction; or

	
 
	
(xii)
	
(1)      a default, event of default or other similar condition or event (howsoever described) in respect of (x) Party A or any Specified Entity of Party A or (y) Party B or any Specified Entity of Party B under one or more agreements or instruments relating to Specified Indebtedness of such entity in an aggregate amount of not less than the applicable Threshold Amount, which has resulted in such Specified Indebtedness becoming due and payable under such agreements or instruments before it would otherwise have been due and payable; or

(2)any failure by such entity to make one or more payments on their due dates under such agreements or instruments (after giving effect to any applicable grace period), in an aggregate amount not less than the applicable Threshold Amount; provided, however, that notwithstanding the foregoing, an Event of Default shall not occur under this paragraph 10(a)(xii) above if, as demonstrated to the reasonable satisfaction of the non-Defaulting Party, (a) the event or condition referred to in sub-paragraph 10(a)(xii)(1) or the failure to pay referred to in sub-paragraph 10(a)(xii)(2) is a failure to pay caused by an error or omission of an administrative or operational nature; and (b) funds were available to such party to enable it to make the relevant payment when due; and (c) such relevant payment is made within three Business Days following receipt of written notice from an interested party of such failure to pay.” 

(xiii)if Party B shall fail to deliver the quarterly unaudited financial statements or annual audited financial statements on or before the required delivery date specified in Annex I, paragraph 2(e)(ii), and such failure is not remedied within two Business Days following notice from Party A.

	
(j)
	
[Reserved].

	
(k)
	
Governing Law - The existing provisions of paragraph 17 shall be deemed to constitute sub-paragraph 17(a) and a new sub-paragraph 17(b) shall be inserted as follows:

Any Affiliate of Party A, performing obligations under or in connection with this Agreement, shall be entitled to the benefits of and shall be subject to the terms of this paragraph 17.”

	
(l)
	
Third Party Rights - Paragraph 21 is hereby amended by inserting the words “Subject to paragraph 9(g) and paragraph 17(b)” at the beginning.

	
(m)
	
Counterparts. 

This Agreement (and each amendment, modification and waiver in respect of it) may be executed and delivered in counterparts (including by facsimile transmission, by portable document file ("PDF") or other electronic file contained in an email and by electronic messaging system), each of which will be deemed an original. 

37

 

	
(n)
	
paragraph 4(c)(iv) and 4(e)(v) of the Italian Annex for Domestic Purchased Securities shall be replaced with the following:

“the Pricing Rate shall be the market rate, on the day, as quoted on Telematico or as agreed between the parties on the day of the Replacement Transaction.”

	
(o)
	
New Paragraphs 22 and 23 shall be added as follows:

	
 
	
“22.
	
INTENT.

	
 
	
(a)
	
The parties recognize that each Transaction is a “repurchase agreement” as that term is defined in Section 101 of Title 11 of the United States Code as amended (the “Bankruptcy Code”) (except insofar as the type of Securities subject to such Transaction or the term of such Transaction would render such definition inapplicable), and a “securities contract” as that term is defined in Section 741 of the Bankruptcy Code.

	
 
	
(b)
	
It is understood that either party’s right to liquidate Securities delivered to it in connection with Transactions hereunder or to exercise any other remedies pursuant to Paragraph 10 hereof, is a contractual right to liquidate such Transaction as described in Section 555 and 559 of the Bankruptcy Code.

	
 
	
(c)
	
The parties agree and acknowledge that if a party hereto is an “insured depository institution”, as such terms is defined in the Federal Deposit Insurance Act, as amended (“FDIA”), then each Transaction hereunder is a “qualified financial contract”, as such term is defined in the FDIA and any rules, orders or policy statements thereunder (except insofar as the type of assets subject to such Transaction would render such definition inapplicable).

	
 
	
(d)
	
It is understood that this Agreement constitutes a “netting contract” as defined in and subject to Title IV of the Federal Deposit Insurance Corporation Improvement Act of 1991 (“FDICIA”) and each payment entitlement and payment obligation under any Transaction hereunder shall constitute a “covered contractual payment entitlement” or “covered contractual payment obligation”, respectively, as defined in and subject to FDICIA (except insofar as one or both of the parties is not a “financial institution” as such term is defined in FDICIA).

	
 
	
23.
	
ACKNOWLEDGEMENTS.

The parties acknowledge that they have been advised that:

	
 
	
(a)
	
in the case of Transactions in which one of the parties is a broker or dealer registered with the Securities and Exchange Commission (“SEC”) under Section 15 of the Securities Exchange Act of 1934 (“1934 Act”), the Securities Investor Protection Corporation has taken the position that the provisions of the Securities Investor Protection Act of 1970 (“SIPA”) do not protect the other party with respect to Transactions hereunder;

	
 
	
(b)
	
in the case of Transactions in which one of the parties is a government securities broker or government securities dealer registered with the SEC under Section 15C of the 1934 Act, SIPA will not provide protection to the other party with respect to any Transaction hereunder; and

38

 

	
 
	
(c)
	
in the case of Transactions in which one of the parties is a financial institution, funds held by the financial institution pursuant to a Transaction hereunder are not a deposit and therefore are not insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund, as applicable.”  

	
(p)
	
Agency.

(i)As a broker-dealer registered with the U.S. Securities and Exchange Commission (“SEC”), UBS Securities LLC (“UBSS”) as agent for each of Party A and Party B, will be responsible for effecting Transactions, transmitting confirmations and maintaining books and records of Transactions as required by Rule 15a-6 under the Securities Exchange Act of 1934, as amended.

(ii)UBSS is acting in connection with Transactions hereunder solely in its capacity as agent for Party A and Party B pursuant to instructions from Party A and Party B.  UBSS shall have no responsibility or personal liability to Party A and Party B to pay or perform any obligation hereunder, except for gross negligence or wilful misconduct by UBSS.  Each of Party A and Party B agrees to proceed solely against the other to collect or recover any amounts owing to it to enforce any of its right in connection with, or as a result of Transactions hereunder.

(iii)Any and all notices, demands or communications of any kind relating to Transactions hereunder between Party A and Party B shall be transmitted exclusively through UBSS.

(iv)The parties acknowledge that the Agreement shall not govern any repurchase transaction between (i) UBSS, acting in its individual capacity, and Party B or (ii) Party B and any entity other than Party A, regardless of whether UBSS is acting as agent for such other entity.

	
(q)
	
ISDA Resolution Stay Jurisdictional Modular Protocol - Swiss Jurisdictional Module.  The terms of the Swiss Jurisdictional Module and the ISDA Resolution Stay Jurisdictional Modular Protocol (each published by the International Swaps and Derivatives Association, Inc. and together, the "Swiss Stay Provisions") shall apply to this Agreement.  For purposes thereof, this Agreement shall be deemed a Covered Agreement and the terms of the Swiss Stay Provisions shall apply to this Agreement as if Party A is a Regulated Entity Counterparty and Party B is a Module Adhering Party with the Implementation Date deemed to be the date of this Agreement.  In the event of any inconsistencies between this Agreement and the Swiss Stay Provisions, the Swiss Stay Provisions will prevail.  

	
(r)
	
Foreign Account Tax Compliance Act Provisions (FATCA)

Paragraph 2(a) is amended by the insertion of the following new definitions and   amendments to existing definitions:

"Code", the United States of America Internal Revenue Code 1986, as amended; and

39

 

"FACTA", Sections 1471 through 1474 of the Code, as of the date hereof (or any amended or successor version that is substantively comparable), current of future regulations or official interpretations thereof, any agreement entered to pursuant to section 1471(b) of the Code, any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, or treaty or convention entered into in connection with the implementation of such Sections of the Code.

The definition of "Equivalent Securities" is amended as follows:

"Equivalent Securities", with respect to a Transaction, Securities equivalent to Purchased Securities under that Transaction. If and to the extent that such Purchased Securities have been redeemed, the expression shall mean a sum of money equivalent to the proceeds of the redemption (other than distributions), without taking into account any deduction or withholding imposed or collected in connection with FATCA that would not have been imposed but for Buyer's non-compliance with FATCA."

Paragraph 5 is deleted in its entirety and replaced as follows:

"Unless otherwise agreed

	
 
	
(a)
	
where: (i) the Term of a particular Transaction extends over an Income Payment Date in respect of any Securities subject to that Transaction; or (ii) an Income Payment Date in respect of any such Securities occurs after the Repurchase Date but before Equivalent Securities have been delivered to Seller, or, if earlier, the occurrence of an Early Termination Date or the termination of the Transaction under paragraph 10(i) then Buyer shall on the date such Income is paid by the issuer transfer to or credit to the account of Seller an amount equal to (and in the same currency as) the amount paid by the issuer;

	
 
	
(b)
	
where Margin Securities are transferred from one party (the "First Party") to the other party (the "Second Party") and an Income Payment Date in respect of such Securities occurs before Equivalent Margin Securities are transferred by the Second Party to the First Party, the Second Party shall on the date such Income is paid by the issuer transfer to or credit to the account of the First Party an amount equal to (and in the same currency as) the amount paid by the issuer,

and for the avoidance of doubt referenced in this paragraph to the amount of Income paid by the issuer of any Securities shall be to an amount paid without any withholding or deduction for or on account of taxes or duties notwithstanding that a payment of such Income made in certain circumstances may be subject to withholding or deduction, except, where a withholding or deduction for or on account of taxes or duties has been imposed under FATCA, to the extent an equivalent or greater amount of withholding or deduction for or on account of taxes or duties would have been imposed under FATCA in respect of Income paid by the issuer on such Securities (or Margin Securities, as applicable) had the Seller (or the First Party, as applicable) retained the Securities (or the Margin Securities, as applicable)."

40

 

Paragraph 6(b) is deleted in its entirety and replaced as follows:

(i)Unless otherwise agreed, all money payable by one party to the other in respect of any Transaction shall be paid free and clear of, and without withholding or deduction for, any taxes or duties of whatsoever nature imposed, levied, collected, withheld or assessed by any authority having power to tax unless the withholding or deduction of such taxes or duties is required by law. In that event, unless otherwise agreed, the paying party shall pay such additional amounts as will result in the net amounts receivable by the other party (after taking account of such withholding or deduction including such withholdings or deductions applicable to such additional sums payable under this paragraph) being equal to such amounts as would have been received by it had no such taxes or duties been required to be withheld or deducted. For the avoidance of doubt, the reference to "law" in this paragraph includes FATCA. However, no additional amounts shall be payable by the paying party to the other party under this sub-paragraph (b)(i) to the extent that such tax is imposed or collected under FATCA.

(ii)If the paying party is required to make a withholding or deduction under FATCA but does not so withhold or deduct, and a liability resulting from such tax is assessed directly against the paying party, then, except to the extent the other party has satisfied or then satisfies the liability resulting from such tax, the other party will promptly pay to the paying party the amount of such liability (including any related liability for interest, but including any related liability for penalties only to the extent provided in sub-paragraph b(iii)).  No payment under this sub-paragraph (b)(ii) is required to be made to the extent that the relevant liability arises from any gross negligence or willful misconduct of the paying party as finally determined by a court of competent jurisdiction.

(iii)The amount of related liability for penalties shall only be payable to the paying party under sub-paragraph (b)(ii) where such penalties become due because the other party has failed to provide appropriate tax forms as required herein. 

The following new paragraph 6(k) is inserted as follows:

	
 
	
(k)
	
If at any time the First Party is required to remit an amount of tax to the IRS with respect to a payment under a Transaction in connection with FATCA, then without duplication of any amount the First Party has deducted on account of such tax from any amount previously paid to the Second Party pursuant to the Transaction, the Second Party shall be required to pay to the First Party an amount equal to that amount of tax on the payment date on which a payment giving rise to remittance required under FATCA occurs. Upon the reasonable request of the Second Party with respect to any payment date, the First Party will supply to the Second Party computations setting forth in reasonable detail the amount payable on such payable date pursuant to the preceding sentence.

41

 

The following new paragraph 6(l) is inserted as follows:

	
 
	
(l)
	
For the avoidance of doubt, the imposition of any withholding or deduction pursuant to or on account of FATCA on any amounts paid or received under a Transaction shall not be treated as an Event of Default under paragraph 10 or as a material adverse effect that could cause a Tax Event under paragraph 11, even if such imposition results in either party receiving amounts that differ materially from the amount that the party would have otherwise received if no such withholding or deduction were imposed.

The following new sub-paragraph 10(f)(iv) is inserted as follows:

	
 
	
(iv)
	
The Default Market Value determined pursuant to sub-paragraphs (i), (ii) or (iii) above shall not take into account any deduction or withholding imposed or collected (or that would be imposed or collected) in connection with FATCA that would not be imposed but for the non-Defaulting Party's non-compliance with FACTA.

	
(s)
	
The following additional paragraph 9(A), subsections (i) and (ii) shall be inserted:

9(A). Additional Representations and Notice.

(i)      Party B Representations.  Party B represents and warrants on and as of the date hereof and on and as of each date this Agreement or any Transaction remains outstanding:

(A)       No ERISA Funds.  The assets of Party B do not include “plan assets” within the meaning of Section 3(42) of ERISA, and Party B is not otherwise subject to Title I of ERISA or Section 4975 of the Code.

(B)       No Governmental Plan Funds.  The assets of Party B do not include the assets of any “governmental plan” within the meaning of Section 3(32) of ERISA, and Party B is not otherwise subject to any law, rule, regulation, or restriction governing the investment of the assets of such plans.

(ii)      Notice of Increase of Constituent Plan Investment. Party B agrees to notify Party A promptly if any time it learns or discovers facts at variance with the foregoing representations and warranties.

	
(t)
	
Further Representations of Party B.  In addition to its representations under Paragraph 9, Party B represents to Party A (which representations will be deemed to be repeated by Party B on each date on which a Transaction is entered into) with respect to any Transaction where the Investment Adviser enters into a Transaction on behalf of Party B that:

	
 
	
(i)
	
It has appointed BC PARTNERS ADVISORS L.P. (the “Investment Adviser”) to act as its agent under this Agreement and in respect of each Transaction entered into on its behalf by the Investment Adviser (each a “Agency Transaction”) Party B has delegated to the Investment Adviser all powers necessary for the Investment Adviser to act on behalf of Party B under this Agreement and each Agency Transaction in every and all respects.  

42

 

	
 
	
(ii)
	
That any person, including the Investment Adviser or the person representing the Investment Adviser, signing the Agreement on behalf of Party B is, and any person, including the Adviser or the person representing the Investment Adviser, representing it in entering into any such Transaction, is duly authorised to do so on its behalf.

	
(u)
	
Further Agreements of Party B.   Party B agrees with Party A that, so long as either party has or may have any obligations under this Agreement with respect to any Transaction where the Investment Adviser enters into a Transaction on behalf of Party B:

	
 
	
(i)
	
Any amounts payable by Party A under this Agreement shall be deemed satisfied when paid to an account as instructed by the Investment Adviser.

	
 
	
(ii)
	
Party A may continue to act in all respects under this Agreement with the Investment Adviser and on the  Investment Adviser’s instructions until such time as Party A has been notified by Party B in writing that with effect from the date so specified in the notice, which date must be at least five Local Business Days following receipt of such notice by Party A, that there has been a change in, limitation of, remission of all or any of the powers of the Investment Adviser to act on behalf of Party B.

	
 
	
(iii)
	
Party B shall be bound as principal of any such Agency Transaction entered into or purported to be entered into by the Investment Adviser as agent for Party B notwithstanding any lack of power or authority of the Investment Adviser or the person representing the Investment Adviser in entering into any such Agency Transaction.

	
(v)
	
Termination of Investment Adviser Relationship. If Investment Adviser is acting on behalf of Party B in respect of any Transaction, Party B agrees to notify Party A immediately in the event that the business relationship with the Investment Adviser with Party B is terminated.  Except as otherwise stated herein, each party shall be entitled to rely upon any oral or written notices and instructions reasonably believed to be originated from the other party hereto or its duly authorized agent (including, in the case of Party B, the Investment Adviser) and shall not incur any liability to the other party in acting in accordance with such notices and instructions. 

[signature page follows]

43

 

 

	
PARTY A
	
 
	
PARTY B

	
 
	
 
	
 

	
UBS AG, London branch
	
 
	
BC PARTNERS LENDING CORPORATION

	
 
	
 
	
 

	
By:
	
/s/ Sergio Breton
	
 
	
By:
	
/s/ Edward Goldthorpe

	
Name:
	
Sergio Breton
	
 
	
Name:
	
Edward Goldthorpe

	
Title:
	
Director
	
 
	
Title:
	
Partner- BC Partners Credit

	
Date:
	
 
	
 
	
Date:
	
December 11, 2019

	
 
	
 
	
 

 

	
By:
	
/s/ Jennifer Gabrielson
	
 
	
 

	
Name:
	
Jennifer Gabrielson
	
 
	
 

	
Title:
	
Director
	
 
	
 

	
Date:
	
 
	
 
	
 

 

44

 

2011 GMRA - ANNEX II

Form of Confirmation

To: ____________________________

From: __________________________

Date: ___________________________

Subject:           [Repurchase][Buy/Sell]*Transaction

                        (Reference Number:                     )

Dear Sirs,

The purpose of this [letter]/[facsimile//[telex], a "Confirmation" for the purposes of the Agreement,  is to set forth the terms and conditions of the above repurchase transaction entered into between us on the Contract Date referred to below.

This Confirmation supplements and forms part of, and is subject to, the Global Master Repurchase Agreement as entered into between us as of [  ] as the same may be amended from time to time (the "Agreement").  All provisions contained in the Agreement govern this Confirmation except as expressly modified below.  Words and phrases defined in the Agreement and used in this Confirmation shall have the same meaning herein as in the Agreement.

	
1.
	
Contract Date:

	
2.
	
Purchased Securities [state type[s] and nominal value[s]]:

	
3.
	
CUSIP, ISIN or other identifying number[s]:

	
4.
	
Buyer:

	
5.
	
Seller:

	
6.
	
Purchase Date:

	
7.
	
Purchase Price:

	
8.
	
Contractual Currency:

	
[9.
	
Repurchase Date]:*

	
[10.
	
Terminable on demand]:*

	
11.
	
Pricing Rate:

	
[12.
	
Sell Back Price:]

	
13.
	
Buyer's Bank Account[s] Details:

	
14.
	
Seller's Bank Account[s] Details:

	
[15.
	
The Transaction is an Agency Transaction.  [Name of Agent] is acting as agent for [name or identifier of Principal]]:*

	
[16.
	
Additional Terms]]:*

Yours faithfully,

 

 

 

	
	 

	
* Delete as appropriate
	

 

 

45

EXECUTION VERSION

Confirmation in respect of Repurchase Transaction

December 16, 2019

	
To:
	
BC Partners Lending Corporation

Address: 650 Madison Avenue

23rd Floor

New York, NY 10022

Attention: Joseph Barillaro

Telephone: 212 796 1806

Email: Notices@bcpartners.com

	
From:
	
UBS AG, London Branch

Dear Sirs,

The purpose of this confirmation (this "Confirmation") is to set forth the terms and conditions of the above-referenced repurchase transaction between BC Partners Lending Corporation ("Seller") and UBS AG, London Branch ("Buyer", and "Party" shall mean either Seller or Buyer), on the Trade Date specified below (the "Transaction").  This Confirmation evidences the Transaction (replacing the form of Confirmation required by Annex II to the Agreement which shall not apply to the Transaction) and forms a binding agreement between Seller and Buyer as to the terms of the Transaction.

This Confirmation supplements, forms part of, and is subject to the SIFMA/ICMA Global Master Repurchase Agreement (2011 version), dated as of December 12, 2019, between Seller and Buyer, together with the Annex(es) thereto (as supplemented, amended or otherwise modified from time to time, the "Agreement").  

All provisions contained or incorporated by reference in the Agreement shall govern this Confirmation except as expressly modified below. In the event of any inconsistency between the provisions of the Agreement and this Confirmation, this Confirmation will prevail. In this Confirmation, defined words and expressions shall have the same meaning as in the Agreement unless otherwise defined in this Confirmation, in which case terms used in this Confirmation shall take precedence over terms used in the Agreement.

 

	
1          General Terms
	
 

	
Seller:
	
BC Partners Lending Corporation

	
Buyer:
	
UBS AG, London Branch

	
Calculation Agent:
	
UBS AG, London Branch, unless an Event of Default has occurred and is continuing with respect to UBS AG, London Branch, in which case Seller shall be entitled to select an independent third party, which must be a leading non-affiliated dealer in the relevant market, to act as Calculation Agent (a “Substitute Calculation Agent”). 

The Calculation Agent shall perform all determinations and calculations hereunder in good faith and in a commercially reasonable manner. For the purpose of making any determination or calculation hereunder, the Calculation Agent may rely on any information or notice delivered by a third party to the extent such information or notice from a third party is contemplated by, or required to derive any of the determinations or calculations under, the Agreement.

 

 

 

	
Trade Date:
	
December 16, 2019.

	
Purchase Date:
	
(a)         December 18, 2019 (the "Initial Purchase Date"); and

(b)         each date on which a Ramp-Up Period DWAC Increase occurs (each such date, a "Ramp-Up Purchase Date"); provided that, for the avoidance of doubt, a Ramp-Up Purchase Date must occur during the Ramp-Up Period.

	
Repurchase Date:
	
December 19, 2022, subject to adjustment in accordance with the Business Day Convention, as such date may be accelerated as provided herein and in the Agreement.

	
Ramp-Up Period:
	
The period commencing on and including the Initial Purchase Date and ending on and including the earliest of (a) the date on which the aggregate Purchase Price is equal to the initial Maximum Aggregate Purchase Price, (b) the first date on which a Voluntary Prepayment occurs, and (c) the scheduled Repurchase Date.  

	
Facility Period:
	
The period commencing on and including the Initial Purchase Date and ending on and including the Facility Period End Date.

	
Purchased Securities:
	
(a)         On the Initial Purchase Date, Seller shall transfer to Buyer Purchased Securities comprising Class A Notes having a stated face amount of USD 76,923,077 and an initial funded outstanding principal amount of USD 30,769,231 in exchange for the payment by Buyer of the Initial Purchase Price.

(b)         On each Ramp-Up Purchase Date, (i) the funded outstanding principal amount of the Purchased Securities held by Buyer shall be increased by the amount of the applicable Ramp-Up Period DWAC Increase in exchange for the payment by Buyer of the applicable Agreed RUPD Purchase Price on such date and (ii) Buyer shall be deemed to have purchased a funded principal amount of the Purchased Securities already held by it as a result of the transfer on the Initial Purchase Date in the amount of such Ramp-Up Period DWAC Increase in exchange for the payment by Buyer of the applicable Agreed RUPD Purchase Price on such Ramp-Up Purchase Date. 

	
Purchase Price:
	
For the purposes of the Agreement (including Paragraph 3(c) of the Agreement), "Purchase Price" means, on any date of determination:

(a)         with respect to the Purchased Securities transferred to Buyer on the Initial Purchase Date, USD 20,000,000 (the "Initial Purchase Price"); and

(b)         with respect to each Ramp-Up Purchase Date, the amount requested by Seller no less than five Business Days in advance of such Ramp-Up Purchase Date (with respect to such Ramp-Up Purchase Date, the "Agreed RUPD Purchase Price"),

provided that: 

(i)         the aggregate Purchase Price may from time to time be reduced pursuant to the operation of the "Purchase Price Reduction" provisions herein;

(ii)         the Agreed RUPD Purchase Price requested by Seller for any Ramp-Up Purchase Date:

 

 

	

	
2
	
 

 

 

 

	
 
	
(A)         must not result in a Borrowing Base Deficiency immediately after giving effect to the payment by Buyer of such Agreed RUPD Purchase Price (as determined and confirmed in writing by Buyer, acting in a commercially 

reasonable manner, prior to such Ramp-Up Purchase Date);

(B)         must not result in the aggregate Purchase Price funded by Buyer hereunder (after giving effect to the payment by Buyer of such Agreed RUPD Purchase Price and determined, for the avoidance of doubt, without regard to any reductions thereto pursuant to the operation of the "Purchase Price Reduction" provisions herein) exceeding the initial Maximum Aggregate Purchase Price; 

(C)         [reserved]

(D)         must not be less than USD 3,250,000, increments of USD 325,000 in excess thereof (or such lesser amounts as may be agreed by Buyer and Seller), provided that, in the case of the final Ramp-Up Period DWAC Increase, the Agreed RUPD Purchase Price requested by Seller may be equal to such other amount as is necessary for the aggregate “Purchase Price” under (and as defined in) this Confirmation to be equal to the initial Maximum Aggregate Purchase Price on the last day of the Ramp-Up Period (or if such day is not a Business Day, the last Business Day immediately preceding such day); 

(iii)         (A) in the case of any final Ramp-Up Period DWAC Increase that results in the aggregate Purchase Price being equal to the initial Maximum Aggregate Purchase Price, immediately after giving effect to the payment by Buyer of such Agreed RUPD Purchase Price, (1) the Senior Asset Coverage Ratio must be greater than or equal to 167% and (2) the asset coverage ratio of Seller must be greater than or equal to 150% as determined under the Investment Company Act of 1940, as amended, for purposes of “business development companies” (as defined in Section 2(a)(48) of such Act) or (B) in the case of any other Ramp-Up Period DWAC Increase (immediately after giving effect to the payment by Buyer of such Agreed RUPD Purchase Price), the Ramp-Up Asset Coverage Ratio must be greater than or equal to 200%; and

(iv)         the effectiveness of such request shall be subject to the condition precedent that (x) (1) no Event of Default with respect to Seller as the Defaulting Party, (2) Mandatory Prepayment Event, (3) Borrowing Base Deficiency (determined without giving effect to the payment by Buyer of such Agreed RUPD Purchase Price), or (4) Accelerated Termination Event has occurred and is continuing, and (y) the sum of the Aggregate Principal Balance of all of the Portfolio Assets that are Eligible Participation Interests as of the relevant Ramp-Up Purchase Date shall not exceed 15% of the Aggregate Portfolio Par Value as of the relevant Ramp-Up Purchase Date.

	
Maximum Aggregate Purchase Price:
	
USD 50,000,000; provided that the Maximum Aggregate Purchase Price shall be reduced by the amount of any Voluntary Partial Prepayment.

 

	

	
3
	
 

 

 

 

 

	
Repurchase Price:
	
With respect to each Purchased Security, the Purchase Price for such Purchased Security as of the relevant Repurchase Date, as such amount may from time to time be reduced by a Voluntary Partial Prepayment pursuant to the operation of the "Purchase Price Reduction" provisions herein; in which case, for the avoidance of doubt, Purchase Price will be reduced by the Prepayment Amount in respect of such Voluntary Partial Prepayment.

For the avoidance of doubt, there shall be no Price Differential incorporated into the Repurchase Price and all references to Price Differential and Pricing Rate are hereby deleted from the Agreement. In lieu of Price Differential, Seller shall be obligated to pay the Transaction Fee Amounts to Buyer as set forth herein. For the avoidance of doubt, paragraphs 2(kk), 2(ll) and 2(rr) of the Agreement shall not apply to the Transaction.

	
Termination of Transaction:
	
Subject to paragraphs 10 and 11 of the Agreement and the Parties' rights with respect to a Regulatory Event and as otherwise set forth in this Confirmation, unless the Parties otherwise agree, the Transaction shall not be terminable on demand by either Party.

	
Purchase Price Reduction:
	
(a)         At any time after the Facility Period End Date, Seller may elect to prepay all or a portion of the Repurchase Price of the Purchased Securities upon at least three Business Days' prior written notice to Buyer, any prepayment under this clause (a), a "Voluntary Prepayment", any prepayment of all of the then-outstanding Repurchase Price under this clause (a), a "Voluntary Full Prepayment" and any prepayment of a portion of the then-outstanding Repurchase Price under this clause (a), a "Voluntary Partial Prepayment"); provided that: 

(i)          a Voluntary Partial Prepayment may only be elected if a portion of the Purchased Securities have been redeemed by the Issuer for cash in the form of USD on or prior to the related Prepayment Date (as defined below) and the portion of the Purchased Securities to be repurchased shall be those which have been redeemed and in an amount not in excess of the Current Redeemed Amount; and

(ii)          no prepayment election may be made by Seller unless, immediately after giving effect to the relevant Voluntary Prepayment, (A) no Borrowing Base Deficiency will occur or be continuing and (B) all of the Borrowing Base Portfolio Criteria will be satisfied. 

(b)         If a Mandatory Prepayment Event has occurred and is continuing with respect to the Purchased Securities, Buyer may upon at least three Business Days' prior written notice to Seller require Seller to prepay the entire Repurchase Price of the Purchased Securities (a "Mandatory Prepayment").

Each written notice delivered by Seller under clause (a) above or by Buyer under clause (b) above shall designate the date on which such prepayment is to be effective (each a "Prepayment Date"). For purposes of any Prepayment Date relating to a Voluntary Partial Prepayment, the "Prepayment Amount" shall be an amount equal to the product of (x) the Advance Percentage applicable to Cash (as specified in the Indenture) and (y) the Current Redeemed Amount and in the case of a Voluntary Full Prepayment, the "Prepayment Amount" shall be an amount equal to the Repurchase Price.

 

 

	

	
4
	
 

 

 

 

	
 
	
Subject to the “Failure to Deliver Equivalent Securities” provisions below and the timing specified therein, on each Prepayment Date:

(A)         Buyer shall transfer to Seller or its agent Equivalent Securities, which, in the case of a Voluntary Partial Prepayment or a Voluntary Full Prepayment occurring after redemption of the Notes, shall be in the form of USD cash in an amount equal to the Current Redeemed Amount;

(B)         Seller shall pay the related Prepayment Amount to Buyer;

(C)         Seller shall pay the related Breakage Amount (if any) to Buyer; and

(D)         with respect to a Voluntary Partial Prepayment, for each Purchased Security that is the subject of such prepayment, the Repurchase Price for such Purchased Security immediately after giving effect to such prepayment shall be equal to (x) the Repurchase Price thereof immediately prior to such prepayment minus (y) the related Prepayment Amount for such Purchased Security.

For purposes of the foregoing, amounts payable by Buyer and Seller under (A), (B) and (C) above shall be netted.

	
Current Redeemed Amount:
	
With respect to any Prepayment Date relating to a Voluntary Partial Prepayment or a Voluntary Full Prepayment occurring after redemption in full of the Notes, an amount in USD determined by the Calculation Agent equal to the aggregate amount actually received by the holder of the Purchased Securities from the Issuer as a principal redemption payment in respect of the Purchased Securities on or prior to such Prepayment Date that has not previously been delivered by Buyer to Seller as Equivalent Securities.

	
Mandatory Prepayment

Event:
	
It shall constitute a Mandatory Prepayment Event with respect to Seller if, after giving effect to all applicable notice requirements and grace periods, an Indenture Event of Default occurs and the maturity of the Purchased Securities is accelerated pursuant to Section 5.2 of the Indenture.

	
Accelerated Termination

Event:
	
Either Party may at any time following the occurrence of a Regulatory Event (an "Accelerated Termination Event") terminate the Transaction under this Confirmation (or, if the relevant Regulatory Event affects only a portion of the Transaction, only such portion of the Transaction may be terminated) by notifying the other Party of an early Repurchase Date for the Transaction, which Repurchase Date shall not be earlier (unless so agreed by Buyer and Seller) than 10 calendar days after the date of such notice (or such lesser period as may be necessary for Buyer or Seller, as applicable, to comply with its obligations under applicable laws and regulations arising as a result of such Regulatory Event). 

Upon knowledge of any Regulatory Event that may occur, Buyer and Seller shall negotiate in good faith to enter into one or more financing transactions with substantially the same terms as the Transaction under this Confirmation. 

 

 

	

	
5
	
 

 

 

 

	
Regulatory Event:
	
With respect to a Party, an event which shall occur if, at any time, (a) such Party determines, in its good faith commercially reasonable discretion, based on advice of counsel (which may be internal counsel), that as a result of a change in law after the date hereof, including without limitation, a change in the relevant court’s or regulator’s interpretation of any law, rule or regulation, its entry into or performance of its obligations or exercise of its rights under the transactions contemplated by this Confirmation and the Agreement (including, without limitation, its obligation to purchase the Purchased Securities ) violates any law, rule or regulation applicable to it or (b) any applicable Governmental Authority informs such Party that its involvement in such transactions violates, or will within 30 calendar days (or, if Buyer is terminating similar transactions with similarly situated counterparties based on such future violation, such longer period as will result in Buyer terminating the Transaction no earlier than any such similar transaction) result in a violation of, any law, rule or regulation applicable to it, in each case after taking commercially reasonable steps to avoid such event based on prevailing circumstances applicable to it.

	
Paragraph 6(h):
	
Paragraph 6(h) shall be amended by deleting the words "Subject to paragraph 10," at the beginning thereof such that, for the avoidance of doubt, such paragraph applies with respect to all payment obligations arising out of the occurrence of a Voluntary Partial Prepayment, Voluntary Full Prepayment or an early Repurchase Date (including, as a result of an Accelerated Termination Event, and including, without limitation, payment obligations in respect of Income that have accrued on or prior to the relevant date), provided that the foregoing shall be without prejudice to the exercise of any set-off pursuant to paragraphs 10(d)(ii) or 10(n) of the Agreement.

	
Failure to Deliver

Equivalent Securities:
	
In respect of the Transaction, this provision (Failure to Deliver Equivalent Securities) shall apply in lieu of paragraph 10(i) of the Agreement in relation solely to Buyer's obligations to deliver Equivalent Securities on any Prepayment Date relating to a Voluntary Full Prepayment that is not the result of a redemption in full of the Class A Notes, and any reference in the Agreement to paragraph 10(i) of the Agreement in respect of Buyer's obligations with respect to the Class A Notes on such a Prepayment Date shall be deemed to be a reference to this provision (Failure to Deliver Equivalent Securities).

It is acknowledged by each of the Parties hereto that the Class A Notes are unique assets, and that accordingly no asset other than the Purchased Securities will qualify as Equivalent Securities.

Notwithstanding anything to the contrary in paragraph 10 of the Agreement or otherwise in the Agreement or this Confirmation and without duplication of the Cure Period provisions below, if Buyer (the "Transferor") fails to deliver to Seller (the "Transferee") any Purchased Security (an "Unavailable Asset") by the time (the "Due Date") required under the Transaction or within such other period as may be agreed in writing by the Transferor and the Transferee (such failure, a "Transfer Failure"):

(a)         the Transferor, acting in good faith and a commercially reasonable manner, shall try for a period of 30 calendar days (or such lesser period as may remain until the scheduled Repurchase Date) from the day following the Due Date in respect of the Unavailable Asset (the last day of such period, the "Transfer Cut-Off Date"; provided that the latest possible Transfer Cut-Off Date shall be the scheduled Repurchase Date) to obtain such Unavailable Asset;

 

 

	

	
6
	
 

 

 

 

	
 
	
(b)         if the Transferor obtains any Unavailable Asset on or prior to the Transfer Cut-Off Date, the Transferor shall promptly give notice to the Transferee of its ability to deliver such Unavailable Asset and shall (subject to the Transferee paying the Prepayment Amount to the Transferor (which may be for a second time if the Prepayment Amount has previously been returned to the Transferee by the Transferor pursuant to clause (d) below)) transfer such Unavailable Asset to the Transferee on the third Business Day following the day on which the Transferor delivers such notice in settlement of the relevant Transfer Failure; 

(c)         if any Unavailable Asset is redeemed in full or in part by the relevant issuer prior to the Transfer Cut-Off Date, then either Party may give notice to the other Party of such redemption after becoming aware of the same, and the Transferor shall transfer a sum of money equivalent to the proceeds of such redemption to the Transferee no later than two Business Days following the day on which the Transferor delivers or receives such notice, in exchange for the payment by the Transferee of all or a ratable portion of any unpaid Prepayment Amount (as applicable); 

(d)         (x) if the Transferee has paid the Prepayment Amount or any Breakage Amount relating to the relevant Voluntary Prepayment to the Transferor, it may require the Transferor to immediately repay the sum so paid with interest which shall accrue at a rate per annum equal to the overnight Federal Funds (Effective) Rate (for the period commencing on and including the third Business Day on which such amount is outstanding to but excluding such day when such amount is no longer outstanding) (as reported in Federal Reserve Publication H.15-519) plus 1% per annum, and (y) no Voluntary Prepayment shall be deemed to have occurred (including for the purposes of clause (b) of the definition of "Ramp-Up Period") until such time (if any) (i) the Unavailable Asset is delivered by Buyer to Seller pursuant to clause (b) above or (ii) if the Unavailable Asset is redeemed in full prior to the Transfer Cut-Off Date, such amount pursuant to clause (c) above is paid to Seller by Buyer (such time in clause (i) or (ii), if any, the "Delayed Prepayment Date"), whereupon the relevant Voluntary Prepayment and Breakage Amount shall become payable in exchange therefor, provided that any Breakage Amount that becomes payable by Seller shall be calculated based on such Delayed Prepayment Date as the Prepayment Date; and

(e)         the Parties' obligations under the Agreement other than as set forth in this provision (Failure to Deliver Equivalent Securities) shall continue until the scheduled Repurchase Date; provided, that if any such Transfer Failure continues to subsist after the Due Date and the Transfer Cut-Off Date for the Transaction, the Transaction Fee Amounts in respect of such Unavailable Asset shall continue to accrue only from and including the applicable Due Date up to and including the Transfer Cut-Off Date (and, for the avoidance of doubt, no Transaction Fee Amount shall accrue from and excluding the Transfer Cut-Off Date until the scheduled Repurchase Date).

	
Determination of Default 

Valuation Time:
	
The "Default Valuation Time" means, in relation to an Event of Default, the close of business in the applicable market on the 40th dealing day after the day on which the non-Defaulting Party delivers notice designating an Early Termination Date pursuant to paragraph 10(b) of the Agreement or, where that Event of Default is the occurrence of an Act of Insolvency in respect of which Automatic Early Termination is specified in Annex I, the close of business on the 40th dealing day after the day on which the non-Defaulting Party first became aware of the occurrence of such Event of Default.

 

 

	

	
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Paragraph 10(f)(i) of the Agreement shall be amended by adding the words "(but in no event later than the Default Valuation Time)" immediately following the words "on or about the early Termination Date".

Paragraph 10(f)(ii) of the Agreement shall be amended by adding the words "(but in no event later than the Default Valuation Time)" immediately following the words "on or about the early Termination Date".

For the avoidance of doubt, the amount payable pursuant to paragraph 10(d) of the Agreement cannot be calculated until the Default Market Values of all of the Equivalent Securities and any Equivalent Margin Securities under each Transaction can be calculated. As such, the payment under paragraph 10(d)(ii) will be delayed until the latest date on which the Default Market Value has been determined with respect to any such Equivalent Securities and any Equivalent Margin Securities.

The Parties acknowledge that (a) the Purchased Securities under the Transaction are expected to be illiquid and unique and that there may be no other commercially reasonable determinant of value with respect to such Purchased Securities other than the price at which willing buyers agree to purchase such Purchased Securities or the relevant Portfolio Assets, (b) if Buyer were forced to liquidate such Purchased Securities or the relevant Portfolio Assets on the date an Event of Default occurs (or shortly thereafter), such liquidation would likely result in a commercially unreasonable price, and (c) giving Buyer an extended period of time to liquidate such Purchased Securities or the relevant Portfolio Assets is more likely to produce a commercially reasonable result.  For avoidance of doubt, Buyer may, at any time, use any commercially reasonable determinant of value (whether the price at which willing buyers agree to purchase such Purchased Securities or the relevant Portfolio Assets or otherwise).

	
Income Payments:
	
Notwithstanding anything to the contrary in paragraph 5 (Income Payments) of the Agreement, "Income" means, any interest or dividend payment or any other payment or distribution (other than any principal payment or repayment, which, for the avoidance of doubt, includes any redemption payment) paid with respect to any Purchased Securities and not otherwise received by Seller and references to the amount of any Income paid shall be to an amount paid net of any withholding or deduction for or on account of taxes or duties (other than taxes or duties imposed as a result of a subsequent sale, transfer, pledge, or hypothecation of the Purchased Securities (including by way of a repurchase transaction) by Buyer).

Buyer shall transfer to Seller an amount equal to (and in the same currency as) the amount of all Income paid or distributed on or in respect of the Purchased Securities within one Business Day after the date on which such Income is paid or distributed to holders of the Purchased Securities, and paragraph 5(a) of the Agreement shall be amended accordingly. For avoidance of doubt, (i) Buyer shall not (except in connection with a termination of the Transaction resulting from an Event of Default) net or set-off against or otherwise apply the Income payment or payments to reduce the amount, if any, to be transferred to Buyer by Seller upon termination of the Transaction and (ii) all payment obligations of Buyer in respect of Income that have accrued but remain outstanding on any Repurchase Date shall be paid on such Repurchase Date and shall be subject to the provisions of paragraph 5(a) (as amended hereby).

Paragraph 2(u) of the Agreement shall be amended by deleting the words "(other than Distributions)".

Paragraph 2(v) of the Agreement shall be amended by deleting the words "other than a Distribution".

 

	

	
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Clawback:
	
If (a) any distribution (whether as an Income payment or otherwise) on a Purchased Security, an Equivalent Security or, if the Equivalent Security is cash, such cash, is received by Buyer and subsequently paid by Buyer to Seller hereunder, and (b) Buyer is subsequently required to transfer all or a portion of such payment to the issuer of such Security (or trustee, paying agent or similar party) (the amount transferred, the "Clawback Amount"), then promptly after receiving notice of such Clawback Amount from Buyer, Seller shall transfer an amount equal to the Clawback Amount to Buyer. Buyer agrees to pay over to Seller within one Business Day after receipt any amounts subsequently recovered (but only to the extent such amounts are actually received by Buyer and Buyer is not otherwise obligated to pay such amounts to Seller pursuant to any other provision hereunder such that payment would result in duplicative payments by Buyer or any other party), and to make reasonable efforts to claim and collect such recoveries.  No interest shall be payable by Buyer or Seller in relation to Clawback Amounts or amounts recovered in respect thereof for the period prior to such amounts becoming payable under this provision. This provision shall survive the termination of the Transaction.

	
Cure Period:
	
Notwithstanding paragraph 10(a) of the Agreement as amended by any Annex, the failure of a Party ("X") to make any payment or delivery referred to in such paragraph (other than (a) a payment or delivery referred to in paragraph 10(a)(iv) of the Agreement or (b) an additional Event of Default described in clause (g) or clause (i) in the “Events of Default” section below, but including the other additional Events of Defaults in the “Events of Default” section below) in respect of the Transaction will not give rise to the right of the other Party to deliver a Default Notice to X (and accordingly will not result in an "Event of Default" under the Agreement), unless such failure is not remedied on or before the first Business Day after notice of such failure is given to X (whereupon the right of the other Party to deliver a Default Notice to X shall become exercisable).

	
Events of Default:
	
Paragraph 10(m) of the Agreement shall be amended by deleting the word "immediately" and replacing it with "promptly upon becoming aware thereof".

In addition to the Events of Default set forth in the Agreement, if any of the following events occurs, it shall constitute an Event of Default with respect to the relevant Party specified below which shall be the Defaulting Party:

(a)         with respect to Seller, if Seller fails to pay any Transaction Fee Amount due on a Transaction Fee Payment Date, and Buyer, as non-Defaulting Party, serves a Default Notice on Seller as Defaulting Party; 

(b)         with respect to Seller, if Seller breaches any of the covenants set forth in the section "Certain Covenants of Seller" below (other than the BC Partners Financials Requirement) and, in the case of the covenant specified in clause (ix) of such section, such breach is not remedied within two Business Days of notice thereof and  Buyer, as non-Defaulting Party, serves a Default Notice on Seller as Defaulting Party;

(c)         with respect to Seller, if Seller breaches the BC Partners Financials Requirement and such failure is not cured within three Business Days following notice from Buyer to Seller of such failure, and Buyer, as non-Defaulting Party,

serves a Default Notice on Seller as Defaulting Party; 

 

 

	

	
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(d)         with respect to Seller, if Seller fails to pay the applicable Breakage Amount (if any) on any Prepayment Date or early Repurchase Date, and Buyer, as non-Defaulting Party, serves a Default Notice on Seller as Defaulting Party;

(e)         with respect to Seller, Seller fails to pay any Clawback Amount in accordance with the "Clawback" provisions herein and Buyer, as non-Defaulting Party, serves a Default Notice on Seller as Defaulting Party; 

(f)         with respect to Seller, if (i) Seller's Investment Manager (the “Original Investment Manager”) ceases to be responsible for the asset management, loan servicing, special servicing or underwriting services of Seller and its subsidiaries, (ii) a replacement investment manager acceptable to Buyer has not been appointed by Seller within 10 Business Days after the date of such cessation (provided that Buyer shall not unreasonably withhold its consent to any request by Seller for approval of any such replacement if the key personnel of such proposed replacement investment manager who will be responsible for the asset management, loan servicing, special servicing or underwriting services of Seller and its subsidiaries are substantially the same individuals as the key personnel of the Original Investment Manager) and (iii) Buyer, as non-Defaulting Party, serves a Default Notice on Seller as Defaulting Party;

(g)         with respect to Seller, notwithstanding anything to the contrary in the Agreement, if Seller fails to (x) deliver Purchased Securities on the Initial Purchase Date (including without limitation, as a result of a failure by the Issuer to issue the related Purchased Securities on or prior to the Initial Purchase Date) or (y) cause a Ramp-Up Period DWAC Increase on any Ramp-Up Purchase Date and Buyer, as non-Defaulting Party, serves a Default Notice on Seller as Defaulting Party;

(h)         with respect to Seller, the occurrence of any of the events set forth in Section 10(b)(i), 10(b)(ii), 10(b)(iii), 10(b)(ix) or 10(b)(xi) of the Collateral Management Agreement (other than any "cause" event thereunder that also constitutes a Mandatory Prepayment Event or an Accelerated Termination Event), and Buyer, as non-Defaulting Party, serves a Default Notice on Seller as Defaulting Party; 

(i)         with respect to Seller, (A) the occurrence of any breach by Seller, as Sole Shareholder, of any of its obligations under the Issuer Sale and Contribution Agreement to make any equity contribution or other amount owing to the Issuer in each case pursuant to the Issuer Sale and Contribution Agreement in accordance with the timing and manner set out in the Issuer Sale and Contribution Agreement, (B) such breach is not remedied within two Business Days after the date by such obligation is required to be performed under the Issuer Sale and Contribution Agreement, and (C) Buyer, as non-Defaulting Party, serves a Default Notice on Seller as Defaulting Party; 

(j)         [reserved]; and

(k)         with respect to Seller, (i) Seller enters into a binding commitment to make a Voluntary Contribution under the Issuer Sale and Contribution Agreement in the form of any Portfolio Asset pursuant to clause (b) of the “Timing and Manner of Transfer of Margin” provisions below (and. for the avoidance of doubt, such Voluntary Contribution is to be made solely to satisfy Seller's obligation under "Margin Maintenance" provisions as a result of a Borrowing Base Deficiency) ,  (ii) the settlement date for such Voluntary Contribution does not occur on or prior to the 20th calendar day following the date of such binding commitment, and (iii) Seller, in its capacity as Sole Shareholder under the Issuer Sale and Contribution Agreement, fails to make a Voluntary Contribution of Cash to the Issuer within one Business Day of the expiration of such 20 calendar day period with an Advance Value greater than or equal to the Advance Value of such Portfolio Asset, and Buyer, as non-Defaulting Party, serves a Default Notice on Seller as Defaulting Party,

 

 

	

	
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provided, in each case, that each Default Notice delivered under this “Events of Default” section shall constitute a “Default Notice” designating an Early Termination Date under the Agreement.

	
Breakage Amounts:
	
If (a) the Repurchase Date for the Transaction occurs prior to the scheduled Repurchase Date by reason of the occurrence of an Event of Default (where Seller is the Defaulting Party), a Mandatory Prepayment, a Voluntary Full Prepayment (subject to the "Failure to Deliver Equivalent Securities" provision hereof) or an event described in paragraph 11(a) of the Agreement in respect of which Seller is the notifying party or (b) a Prepayment Date occurs in connection with a Voluntary Partial Prepayment, then, without limitation of any other payments or deliveries that become due as a result of such event but without duplication, on such Repurchase Date, Seller shall pay to Buyer an amount equal to the Breakage Amount for the Transaction or the applicable portion thereof.  For the avoidance of doubt, no Breakage Amount shall be payable by Seller in respect of any Repurchase Date occurring as a result of a Regulatory Event.

For purposes of the foregoing:

"Applicable Portion" means (a) in the case of the first Voluntary Partial Prepayment, the sum of (i) the portion of the Transaction that is the subject of such Voluntary Partial Prepayment plus (ii) if the aggregate Purchase Price immediately prior to giving effect to such first Voluntary Partial Prepayment is less than the initial Maximum Aggregate Purchase Price, the portion of a hypothetical Transaction (the "Hypothetical Maximum Transaction") determined based on the assumption in clause (iii) of the definition of “Breakage Amount” that is represented by the deficiency (if any) between the Hypothetical Maximum Transaction and the Transaction (prior to giving effect to such first Voluntary Partial Prepayment) and (b) in the case of any subsequent Voluntary Partial Prepayment, the portion of the Transaction that is the subject of such Voluntary Partial Prepayment 

"Breakage Amount" means, with respect to the Transaction evidenced hereby (or, in the case of a Voluntary Partial Prepayment the Applicable Portion thereof that is the subject of such Voluntary Partial Prepayment), the present value (using a discount factor implied by the mid-point between the forward bid and offered side LIBOR curves for fixed-for-floating LIBOR swaps of the relevant tenors) of the Spread portion of the Transaction Fee Amounts that would have been payable to Buyer under such Transaction (or the Applicable Portion thereof) from (and including) the early Repurchase Date or applicable Prepayment Date (as applicable) to (but excluding) the scheduled Repurchase Date, as determined by the Calculation Agent assuming, solely for purposes of determining such amount, that (i) the Spread is equal to (x) if the early Repurchase Date or applicable Prepayment Date (as applicable) occurs on or before December 20, 2021, the Spread specified in this Confirmation or (y) if the early Repurchase Date or applicable Prepayment Date (as applicable)  occurs after December 20, 2021, the Step-Down Breakage Rate, (ii) the Repurchase Price payable upon such termination were to remain outstanding until the originally scheduled Repurchase Date, and (iii) Seller has transferred to Buyer Securities with an aggregate Purchase Price equal to the then-current Maximum Aggregate Purchase Price (determined, in the case of any Voluntary Prepayment, prior to giving effect to such Voluntary Partial Prepayment). 

"Step-Down Breakage Rate" means 0.75%.

 

	

	
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2          Purchased Securities, Margining and Substitutions

	
Marking to Market:
	
The Parties agree that, with respect to the Transaction, the provisions of paragraphs 4(a) to (l) (inclusive)) of the Agreement shall not apply and instead margin shall be provided separately in respect of the Transaction in accordance with the terms of this Confirmation.  For the avoidance of doubt, the provisions of paragraph 8(d) of the Agreement shall not apply to the Transaction.

	
Margin Maintenance:
	
If at any time a Borrowing Base Deficiency exists, Buyer may, by notice to Seller, require Seller to, and Seller shall following such notice in its capacity as Sole Shareholder under the Issuer Sale and Contribution Agreement, make or enter into a binding commitment to make Voluntary Contributions to the Issuer in accordance with and subject to the "Timing and Manner of Transfer of Margin" provisions of this Confirmation such that such Borrowing Base Deficiency is or will be eliminated in accordance with such provisions.

Seller acknowledges that failure to timely make such Voluntary Contributions may have ramifications under the Indenture, Collateral Management Agreement and Issuer Sale and Contribution Agreement pursuant to the terms thereof.

	
Timing and Manner of Transfer of Margin:
	
If the Calculation Agent notifies Seller of a Borrowing Base Deficiency, and Buyer provides notice to Seller pursuant to the "Margin Maintenance" section hereof, Seller shall, within five Business Days of the date of such notice and in its capacity as Sole Shareholder:

(a)         make a Voluntary Contribution to the Issuer under the Issuer Sale and Contribution Agreement in the form of Cash; and/or

(b)         enter into a binding commitment to make a Voluntary Contribution under the Issuer Sale and Contribution Agreement in the form of one or more Portfolio Assets that  (i) satisfy the Asset Eligibility Criteria and Borrowing Base Asset Criteria and (ii)  are not Zero Value Portfolio Assets, for settlement no more than 20 calendar days after the date on which such binding commitment is entered into,

with an aggregate Advance Value sufficient to eliminate such Borrowing Base Deficiency.

	
Net Margin: 
	
The definition of Net Margin in paragraph 2(gg) of the Agreement shall be deleted in its entirety and will no longer be relevant for purposes of the Agreement.

	
Market Value:
	
The definition of Market Value in paragraph 2(ee) of the Agreement shall be deleted in its entirety and will no longer be relevant for purposes of the Agreement.

	
Transaction Exposure:
	
The definition of Transaction Exposure in paragraph 2(xx) of the Agreement shall be deleted in its entirety and will no longer be relevant for purposes of the Agreement.

	
Current Price and related Dispute Rights:
	
For purposes of the margin maintenance provisions herein, the Current Price of any Portfolio Asset on any date of determination (including as of the related Inclusion Date of such Portfolio Asset) shall be determined by the Calculation Agent in accordance with the definition thereof in the Indenture.

 

 

	

	
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Provided that no Event of Default has occurred and is continuing with respect to Seller, if Seller in good faith has a commercially reasonable basis for disagreement with the Calculation Agent's determination of the Current Price of any Portfolio Asset, then Seller may dispute such determination by giving notice of such dispute (a "Dispute Notice") to Buyer and the Calculation Agent no later than (a) if Seller receives notice of the Calculation Agent's determination of a Current Price in dispute at or prior to noon (New York time) on any Business Day, by the close of business on such Business Day and (b) if Seller receives notice of the Calculation Agent's determination of a Current Price in dispute after noon (New York time) on any Business Day, by noon (New York time) on the following Business Day.  Any such Dispute Notice shall specify, in reasonable detail, the bid-side market price Seller believes should be attributed to any such Portfolio Asset, along with reasonable evidence supporting such value.

Promptly following delivery of a Dispute Notice in relation to any Portfolio Asset, the Calculation Agent and Seller shall negotiate in good faith to try to agree to the disputed Current Price.  If by 10:00 a.m. (New York time) on the Business Day following the day on which the Dispute Notice is delivered, the Calculation Agent and Seller are unable to agree, then:

(i)          Seller shall request that the Initial Valuation Company or one of the Fallback Valuation Companies (in either case, the "Alternate Valuation Company") provide an Eligible Valuation to the Calculation Agent;

(ii)         if (A) no such Eligible Valuation is received by the Calculation Agent from the Alternate Valuation Company by 2:00 p.m. (New York time) on the fifth Business Day following such request (a "Valuation Non-Delivery") or (B) Buyer in good faith has a commercially reasonable basis to disagree with the Alternate Valuation Company's Eligible Valuation (a "Valuation Disagreement") and the Calculation Agent notifies Seller of such disagreement on the day such Eligible Valuation is received by the Calculation Agent (the earlier of such fifth Business Day and the day of such notification, the "Notification Day"), then no later than 10:00 a.m. (New York time) on the Business Day next following the Notification Day, the Calculation Agent shall deliver a request (a "Back-Up Request") to any of the Initial Valuation Company or Fallback Valuation Companies (in any case, which was not the Alternate Valuation Company) (in any case, a "Back-Up Valuation Company") to provide an Eligible Valuation for such disputed Portfolio Asset; and

(iii)        the Current Price in relation to such disputed Portfolio Asset shall be:

(A)         if the Alternate Valuation Company provides an Eligible Valuation and the Calculation Agent does not provide a Back-Up Request, the Resolved Current Price in relation to the Eligible Valuation provided by the Alternate Valuation Company;

(B)         if the Calculation Agent provides a Back-Up Request and the Back-Up Valuation Company provides an Eligible Valuation for such disputed Portfolio Asset by no later than 2:00 p.m. (New York time) on the fifth Business Day following such request, the Resolved Current Price in relation to the Eligible Valuation provided by the Back-Up Valuation Company; 

 

 

	

	
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(C)         if the Calculation Agent provides a Back-Up Request as a result of a Valuation Non-Delivery and the Back-Up Valuation Company fails to provide an Eligible Valuation for such disputed Portfolio Asset by no later than 2:00 p.m. (New York time) on the fifth Business Day following such request, the Current Price originally determined by the Calculation Agent; and

(D)         if the Calculation Agent provides a Back-Up Request as a result of a Valuation Disagreement and the Back-Up Valuation Company fails to provide an Eligible Valuation for such disputed Portfolio Asset by no later than 2:00 p.m. (New York time) on the fifth Business Day following such request, the Eligible Valuation provided by the Alternate Valuation Company.

If Seller has delivered a Dispute Notice, during the pendency of such dispute, the Parties shall be required to deliver or return (as applicable) margin based on the Calculation Agent's determination in accordance with this Confirmation; provided that, following resolution of the dispute, the Parties shall be required to deliver or return (as applicable) margin based on the Current Price so determined.  For the avoidance of doubt, with respect to the dispute of the Current Price of any Portfolio Asset, upon the determination of such Current Price in accordance with the foregoing, the Calculation Agent shall recalculate the Borrowing Base using such Current Price for such Portfolio Asset and determine whether or not a Borrowing Base Deficiency exists.

"Eligible Valuation" shall mean, with respect to any disputed Portfolio Asset, a valuation (which may be quoted in a range of values) for the outstanding principal amount of such Portfolio Asset (expressed as a percentage of par) that would be received from the sale of such Portfolio Asset on the date such valuation is provided, exclusive of accrued interest and capitalized interest; and 

"Resolved Current Price" shall be, with respect to any Eligible Valuation that is:

(I)          quoted as a range of values where the difference between the lowest and highest values in such range (each expressed as a percentage of par) is an amount greater than 5% of par, as determined by the Calculation Agent, the lowest value in such range;

(II)         quoted as a range of values where the difference between the lowest and highest values in such range (each expressed as a percentage of par) is an amount less than or equal to 5% of par, as determined by the Calculation Agent, the mid-point between the lowest and highest value in such range, as determined by the Calculation Agent; and 

(III)        not quoted as a range of values, such Eligible Valuation.

	
Interest on Cash Margin:
	
Not applicable. 

	
Substitutions:
	
No substitutions of Purchased Securities shall be permitted. 

 

	

	
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3          Fees

	
Transaction Fees:
	
On each Transaction Fee Payment Date, for each Purchased Security, Seller shall pay to Buyer an amount equal to the applicable Transaction Fee Amount for the Purchased Securities for the related Transaction Fee Period.  

	
Transaction Fee Payment Dates:
	
The 10th calendar day of January, April, July and October of each calendar year, provided that the first Transaction Fee Payment Date shall be April 10, 2020, and the final Transaction Fee Payment Date with respect to any Purchased Security shall be the Repurchase Date for such Purchased Security, and, in each case, subject to adjustment in accordance with the Business Day Convention. 

	
Transaction Fee Periods:
	
With respect to any Transaction Fee Payment Date (the "Relevant Transaction Fee Payment Date"), the period commencing on (and including) the immediately preceding Transaction Fee Payment Date (or on the Initial Purchase Date, in the case of the Transaction Fee Period relating to the first Transaction Fee Payment Date) and ending on (but excluding) the Relevant Transaction Fee Payment Date (without giving effect to any Business Day adjustment thereto), except that the final Transaction Fee Period shall end on (and exclude) the Repurchase Date for the Purchased Securities.

	
Transaction Fee Amounts:
	
With respect to a Purchased Security, Seller shall pay to Buyer a Transaction Fee Amount on each Transaction Fee Payment Date in an amount equal to the sum of the products, for each day that occurs during the related Transaction Fee Period, of (i) the Applicable Repurchase Price of such Purchased Security multiplied by (ii) the Applicable Transaction Fee Rate on such day multiplied by (iii) 1/360.  For the avoidance of doubt, for the purposes of clause (i), the reference to “Purchase Price” as used in the definition of “Repurchase Price” is to the amount actually paid by Buyer to Seller as the Purchase Price of the relevant Purchased Security pursuant to Paragraph 3(c) of the Agreement.

	
Applicable Repurchase 
Price:
	
(a) As of any date of determination prior to the Facility Period End Date, the then- current Repurchase Price; and

(b) as of any date of determination on and after the Facility Period End Date, the then-current Maximum Aggregate Purchase Price.

	
Applicable Transaction Fee Rate:
	
For each Transaction Fee Period, a rate per annum equal to the sum of (a) LIBOR determined on the Reset Date for such Transaction Fee Period plus (b) the applicable Spread.

Where:

"LIBOR", for any Reset Date, means the London Interbank Offered Rate for the Relevant Period in respect of USD as quoted on the Bloomberg Screen BTMM Page (or such other page as may replace the Bloomberg Screen BTMM Page) under the heading "LIBOR-FIX-BBAM<GO>" (or any replacement heading) as of 11:00 a.m., London time, on the day (the "Determination Date") that is two London banking days preceding such date.  

 

 

	

	
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If (i) such rate does not appear on the Bloomberg Screen BTMM Page (or any replacement page) under such heading (or any replacement heading), as of such time on a Determination Date, (ii) a public statement or publication of information has been made by or on behalf of the administrator of LIBOR or a governmental authority or regulatory supervisor having jurisdiction or regulatory authority over Buyer, identifying a date after which LIBOR shall no longer be used or shall no longer be representative for determining interest rates for loans, or (iii) Buyer provides notice to Seller of a replacement rate that is appropriate for transactions that are similar to those contemplated under this Confirmation with similarly situated counterparties, LIBOR shall be deemed to be such rate as determined by the Calculation Agent, giving due consideration to the rate and any relevant spread adjustment that is similar to that used in other similar transactions (including, for these purposes, traditional borrowing base credit facilities) with other similarly situated counterparties and any selection or recommendation of a replacement rate or the mechanism for determining such rate by the relevant governmental or regulatory body or the relevant committee endorsed, appointed or convened by such body. 

For any Transaction Fee Period that shorter than or longer than the Relevant Period, LIBOR shall be determined through the use of straight line interpolation by reference to two rates based on LIBOR, one of which shall be determined as if the Relevant Period were the period of time for which rates are available next shorter than the length of the Transaction Fee Period and the other of which shall be determined as if the Relevant Period were the period of time for which rates are available next longer than the length of the Transaction Fee Period.

 "Relevant Period" means three months.

"Reset Date" with respect to any Transaction Fee Period, means the first day of such Transaction Fee Period.

"Spread" means 2.65%. 

	
4          Miscellaneous

	
Voting Rights:
	
Where any voting or consent rights fail to be exercised in relation to any Purchased Securities, Buyer shall be entitled to exercise such voting or consent rights in its sole discretion and shall not have any obligation to arrange for voting or consent rights to be exercised in accordance with the instructions of Seller.

	
Business Day:
	
Notwithstanding paragraph 2(f) of the Agreement, "Business Day" means any day on which commercial banks are open for general business (including dealings in foreign exchange and foreign currency deposits) in New York, Houston and London and that is a TARGET Settlement Day, other than a Saturday, Sunday or other day which the New York Stock Exchange or banks are authorized or obligated by law or executive order to close in New York, New York.

	
Business Day Convention:
	
The convention for adjusting any relevant date if it would otherwise fall on a day that is not a Business Day so that such date will be the first following day that is a Business Day.

 

	

	
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Unpaid Amounts:
	
For the avoidance of doubt, on the final Repurchase Date (whether occurring prior to, on, or after, the scheduled Repurchase Date, and whether occurring as a result of an Event of Default, a Prepayment Date, or otherwise), if there are amounts that became payable by one Party to the other Party on or prior to such Repurchase Date and which remain unpaid as at such Repurchase Date, such amounts shall remain an outstanding obligation of such Party and shall be netted with and set off against the amounts otherwise payable by the Parties on such Repurchase Date.

	
Interest on Amounts Payable:
	
Any amount due from one Party to the other following the occurrence of an Event of Default shall be paid together with (to the extent permitted under applicable law) interest thereon (both before and after judgment) in USD, from (and including) the date on which such amount was originally due to (but excluding) the date such amount is paid, at a rate per annum equal to the overnight Federal Funds (Effective) Rate for each day such amount remains outstanding (as reported in Federal Reserve Publication H.15-519) plus 1% per annum.  Such interest will accrue daily without compounding based on the actual number of days elapsed. The provisions of this paragraph shall supersede any conflicting provisions in paragraph 12 of the Agreement.

	
Tax Matters:
	
(a)         For (and only for) U.S. Federal income tax purposes, each Party agrees: (i) to treat the purchase hereunder of Purchased Securities as if Buyer had made a loan to Seller secured by such Purchased Securities, (ii) to treat Seller as beneficial owner of such Purchased Securities, and (iii) not to take any inconsistent position on any related tax return, unless otherwise required by applicable law.

(b)         Notwithstanding anything else in the Agreement, if the defaulting Party exercises its right to assign rights to payment under Paragraph 16(b) of the Agreement following an Event of Default, if any withholding or other taxes are imposed on payments to any assignee, the payor's obligation to gross-up any such payment in respect of such tax to such assignee shall be limited to the amount of any gross-up it would have been obligated to pay immediately before any such assignment occurred.

(c)         Each Party shall provide the other Party with a properly executed IRS Form W-8 or W-9, as applicable. If either Party exercises its right to assign rights to payment under Paragraph 16(b) of the Agreement, prior to being entitled to receive any gross-up payments in respect of any taxes withheld, any assignee will be required to submit to the payor an executed, complete IRS Form W-8 or W-9 (as applicable) establishing any available exemption or reduction from any US withholding taxes that may be imposed on the payment assigned.

(d)         Seller represents and warrants that it would be entitled to receive all payments on the Purchased Security and the Portfolio Assets free of U.S. federal or foreign withholding tax if it held the Purchased Security or the Portfolio Securities directly.

	
Certain Covenants of Seller:
	
Seller undertakes and agrees as follows:

(i)         at all times prior to the Repurchase Date, Seller shall not permit any securities to be issued under the Indenture to any person or entity other than Seller and shall not direct or permit the Issuer to issue any securities other than in conjunction with a Purchase Date or otherwise as required under the Indenture or other Transaction Documents;

 

 

	

	
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(ii)         at all times prior to the Repurchase Date, Seller shall not sell, transfer or otherwise dispose of any securities issued under the Indenture (or any interest therein) other than pursuant to the Transaction;

(iii)        at all times from and including the last day of the Ramp-Up Period, Seller shall maintain a Senior Asset Coverage Ratio of at least 167%;

(iv)        at all times from and including the last day of the Ramp-Up Period, Seller shall maintain an asset coverage ratio of at least 150% as determined under the Investment Company Act of 1940, as amended, for purposes of “business development companies” (as defined in Section 2(a)(48) of such Act);

(v)         at all times prior to the Repurchase Date, Seller shall ensure that the aggregate face value of the Unencumbered Cash shall be greater than 5% of the Purchase Price; 

(vi)        Seller shall provide, or cause to be provided, to Buyer quarterly unaudited financial statements within 60 days of each quarter-end and annual audited financial statements within 90 days of the year-end, prepared in accordance with generally accepted accounting principles (as in effect in the United States) (such statements to include Seller's Net Asset Value) (such covenant in clause (vi), the "BC Partners Financials Requirement"), provided that (A) each quarter-end statement and each year-end statement shall include a calculation of Seller’s Net Asset Value for purposes of the determinations under clause (vii) below, and (B) the BC Partners Financials Requirement shall be deemed to be satisfied if Seller makes such report available to the general public by publication thereof on its website or on the U.S. Securities and Exchange Commission EDGAR information retrieval system; 

(vii)       from and including the last day of the Ramp-Up Period, Seller shall maintain a Net Asset Value that is greater than or equal to (A) at all times, USD25,000,000 and (B) as of the last day of each fiscal quarter, 50% of the Net Asset Value as of the last day of the same fiscal quarter in the immediately preceding fiscal year (provided that, for the purposes of this clause (vii), "Net Asset Value" shall be determined based on the aggregate net asset value amount included in the most recently delivered BC Partners Financial Requirements and adjusted for any redemptions and/or withdrawals from such aggregate net asset value amount);

(viii)      at all times prior to the last day of the Ramp-Up Period, Seller shall maintain a Ramp-Up Asset Coverage Ratio that is greater than or equal to 200%; and

(ix)        Seller shall deliver, on or prior to the 5th Business Day after the last day of each calendar month a certificate executed by the chief financial officer of Seller (or a certificated delivered by email in the name of the chief financial officer of Seller) (a) certifying as to whether or not Seller has knowledge that an Event of Default with respect to Seller as Defaulting Party, a Mandatory Prepayment Event or a Regulatory Event with respect to Seller has occurred and identifying in reasonable detail the nature thereof, and (b) setting forth reasonably detailed calculations demonstrating compliance with the financial covenants set out in clauses (iii), (iv), (v), (vii) and (viii) in this "Certain Covenants of Seller" section.

	
Representations and acknowledgements:
	
Unless agreed to the contrary expressly and in writing in this Confirmation and notwithstanding any communication that each Party (and/or its Affiliates) may have had with the other Party or any of its Affiliates, in respect of the Transaction subject to this Confirmation, each Party will be deemed to represent to the other Party on the Trade Date and each Purchase Date of the Transaction and on each date on which the Transaction is terminated (in whole or in part) that:

 

 

	

	
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(i)         it is entering into or terminating (in whole or in part) the Transaction for its own account;

(ii)        none of the other Party or any of its Affiliates or agents are acting as a fiduciary or financial adviser for it;

(iii)       it is a sophisticated investor that has made its own independent decisions to enter into the Transaction, as to whether the Transaction is appropriate or proper for it and as to any related investment, hedging and/or trading based upon its own judgment and upon advice from such legal, regulatory, tax, financial, accounting and other advisers as it has deemed necessary, and not upon any view expressed by the other Party or any of its Affiliates or agents;

(iv)       it is not relying on any communication (written or oral) of the other Party or any Affiliate or agent thereof except those expressly set forth in the Agreement, except that nothing in the Agreement will limit or exclude any liability of a party for fraud;

(v)        it is capable of assessing the merits of and understanding (on its own behalf or through independent professional advice), and understands and accepts, the terms, conditions and risks of the Transaction, and is also capable of assuming, and assumes, the risks of the Transaction;

(vi)       having made all necessary enquiries with relevant authorities, its entry into or termination (in whole or in part) of the Transaction will not contravene any applicable law, decree, regulation, regulatory guidance, regulatory request, regulatory briefing or order of any government or governmental body (including any court or tribunal); and

(vii)      to the extent required to do so, it has notified relevant authorities, in a manner acceptable to such authorities, of its entry into the Transaction.

Unless agreed to the contrary expressly and in writing in this Confirmation and notwithstanding any communication that each Party (and/or its Affiliates) may have had with the other Party, in respect of the Transaction subject to this Confirmation, each Party will be deemed to acknowledge on the date on which it enters into the Transaction that:

(a)         none of the other Party or its Affiliates provides investment, tax, accounting, legal or other advice in respect of the Transaction;

(b)         it has been given the opportunity to obtain information from the other Party concerning the terms and conditions of the Transaction necessary in order for it to evaluate the merits and risks of the Transaction; provided that, notwithstanding the foregoing, (i) it and its advisors are not relying on any communication (written or oral and including, without limitation, opinions of third party advisors) of the other Party or its Affiliates as (A) legal, regulatory, tax, business, investments, financial, accounting or other advice, (B) a recommendation to enter into the Transaction or (C) an assurance or guarantee as to the expected results of the Transaction; it being understood that information and explanations related to the terms and conditions of the Transaction are made incidental to the other Party's business and shall not be considered (x) legal, regulatory, tax, business, investments, financial, accounting or other advice, (y) a recommendation to enter into the Transaction or (z) an assurance or guarantee as to the expected results of the Transaction and (ii) any such communication should not be the basis on which such Party has entered into the Transaction, and should be independently confirmed by such Party and its advisors prior to entering into the Transaction; 

 

 

	

	
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(c)         none of the Parties or any Affiliate thereof has any obligation to, and it will not, select securities or transfers of currency, with regard to the needs or interests of any person other than itself, and each Party and its Affiliates may accept deposits from, make loans or otherwise extend credit to, and generally engage in any kind of commercial or investment banking business with the issuer of any Purchased Security or its affiliates or any other person or entity having obligations relating to the Purchased Securities and may act with respect to such business in the same manner as if the Transaction did not exist, regardless of whether any such action may have an adverse effect on either Party's position under the Transaction;

(d)         each Party and its Affiliates may, whether by virtue of the types of relationships described above or otherwise, at the date hereof or at times hereafter be in possession of information in relation to the Issuer which is or may be material in the context of the Transaction and which is or may not be known to the general public or to one or both of the Parties, and the Transaction does not create any obligation on the part of any of the Parties and their respective Affiliates to disclose to either Party any such relationship or information (whether or not confidential);

(e)         neither Party makes any representations or warranties to the other in connection with, and shall have no responsibility with respect to, the accuracy of any statements, warranties or representations made in or in connection with the Purchased Securities, any information contained in any document filed by the issuer of the Purchased Securities (the "Issuer") with any exchange or with any governmental entity regulating the purchase and sale of securities, the solvency or financial condition of the Issuer, or the legality, validity, binding effect or enforceability of the obligations of the Issuer in respect of the Purchased Securities.  Each Party acknowledges that it has, independently and without reliance on the other and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into the Transaction and will continue to be responsible for making its own independent appraisal of the business, affairs and financial condition of the Issuer; and

(f)         the Transaction does not create either a direct or indirect obligation of the Issuer owing to Seller or a direct or indirect participation in any obligation of the Issuer owing to Buyer.  Seller acknowledges that Seller shall not have any voting rights with respect to the Purchased Securities or any other rights under or with respect to the Purchased Securities, other than as expressly set forth herein.

Each Party acknowledges and agrees that (i) the Transaction to which this Confirmation relates is (x) a "securities contract", as defined in Section 741 of the federal Bankruptcy Code, Title 11 of the United States Code, as amended (the "Bankruptcy Code") and (y) a "repurchase agreement" as that term is defined in Section 101 of Title 11 of the Bankruptcy Code (except insofar as the type of Securities subject to the Transaction or the term of the Transaction would render such definition inapplicable) and (ii) the exercise by either Party of any right under the Agreement to cause the liquidation, termination or acceleration of the Transaction, because of a condition of the kind specified in Section 365(e)(1) of the Bankruptcy Code shall not be stayed, avoided, or otherwise limited by operation of any provision of the Bankruptcy Code or by order of a court or administrative agency in any proceeding under the Bankruptcy Code.

 

 

	

	
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Additional Seller Representations:
	
The following additional paragraph 9(A), subsections (i), (ii) and (iii) shall be inserted into the Agreement:

"9(A). Additional Representations and Notice.

(i) Seller Representations. Seller represents and warrants on and as of the date hereof and on and as of each date the Agreement or any Transaction remains outstanding:

(A)   No Prohibited Transactions.  Seller represents and warrants that Seller is not an “employee benefit plan” subject to Title I of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) or a “plan” within the meaning of Section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”), and its underlying assets do not include “plan assets” within the meaning of 29 C.F.R. Section 2510.3-101, as modified by Section 3(42) of ERISA. Any subsequent permitted assignee of Seller will be deemed to have represented and warranted, that (i) no portion of the assets used by such assignee to either (x) acquire and hold the Purchased Securities or (y) enter into or assume the obligations under the Transaction evidenced hereby constitutes the assets of any employee benefit plan subject to Title I of ERISA, a "plan" within the meaning of Section 4975(e)(1) of the Code or any entity whose underlying assets include “plan assets” within the meaning of 29 C.F.R. Section 2510.3-101, as modified by Section 3(42) of ERISA. 

(B)   Notice Requirement. Seller agrees to notify Buyer promptly if any time it learns or discovers facts at variance with the foregoing representations and warranties.

(ii) Seller represents and warrants as of the Initial Purchase Date that its acquisition of the Purchased Securities complied with the terms of the Indenture.

(iii) Seller represents and warrants that either (i) the Purchased Securities are not required to be retained by the Collateral Manager (or a "majority owned affiliate" of the Collateral Manager) pursuant to Section 15G of the Securities Exchange Act of 1934 and the rules promulgated thereunder (the "Risk Retention Rules") or (ii) the Purchased Securities are required to be retained by the Collateral Manager (or a "majority owned affiliate" of the Collateral Manager) pursuant to the Risk Retention Rules and the entry by the Collateral Manager (or a "majority owned affiliate" of the Collateral Manager)  into the transactions contemplated by the Collateral Management Agreement will not violate or conflict with the Risk Retention Rules.

	
Transfer; Assignment; Amendment;
	
Unless otherwise provided under this Confirmation or under the Agreement, neither Buyer nor Seller will have the right to transfer, assign, amend, modify or supplement the Agreement or this Confirmation or any interest or obligation or right or benefit received in or under the Agreement or this Confirmation without the prior written consent of each Party.

	
Designation; Delegation
	
Notwithstanding any other provision herein to the contrary, Seller may request in writing to Buyer at least 5 Business Days prior to any proposed delegation or designation to consent to Seller designating, at Seller’s own expense, any of its Affiliates to (a) perform Seller’s obligations in respect of this Confirmation or (b) receive any payment or delivery under this Confirmation, provided that (i) Seller may delegate its payment obligations under the Agreement to the Issuer such that any such payment by Seller to Buyer shall be made by the Issuer on Seller’s behalf, without any prior request to, or any prior consent from, Buyer and (ii) no such delegation (including, without limitation, pursuant to the foregoing sub-clause (i)) shall affect Seller's primary liability as principal for the payment or performance of the relevant obligation.

 

 

	

	
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Buyer may not unreasonably withhold, delay or condition its consent to Seller’s request, provided that if  (i) such designation or delegation, as the case may be, is or will not be in accordance with applicable laws, rules or regulations, (ii) Buyer is or will be required to contract, subcontract or otherwise engage with any such designee or delegee or pay any fees, costs or expenses in relation to any such designee or delegee, or (iii) the proposed designee or delegee fails to meet the “know-your-customer” or anti-money laundering requirements of Buyer that are required by Buyer’s then-applicable internal policies in order for Buyer to onboard such proposed designee or delegee, then any withholding, delay or conditioning of Buyer’s consent shall not be deemed to be unreasonable. 

Seller shall remain liable to Buyer under the Transaction for the performance of any obligation of Seller designated to be performed by a designee or delegated by Seller, provided that if such designee or delegee of Seller has performed in full the obligations of Seller under this Confirmation, Seller’s obligations to Buyer under this Confirmation shall be discharged to the extent of such performance. 

	
Act of Insolvency:
	
Paragraph 2(a) shall be deleted in its entirety and be replaced by:

“Act of Insolvency” shall occur with respect to any Person when such Person shall (1) be dissolved (other than pursuant to a consolidation, amalgamation or merger); (2) make a general assignment, arrangement or composition with or for the benefit of its creditors; (3) institute or have instituted against it a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors' rights, or a petition shall be presented for its winding-up or liquidation, and, in the case of any such proceeding or petition instituted or presented against it, such proceeding or petition (A) results in a judgment of insolvency or bankruptcy or the entry of an order for relief or the making of an order for its winding-up or liquidation or (B) is not dismissed, discharged, stayed or restrained in each case within 60 days of the institution or presentation thereof; (4) have a resolution passed for its winding-up, official management or liquidation (other than pursuant to a consolidation, amalgamation or merger); (5) seek or become subject to the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official for it or for all or substantially all its assets, in each case in connection with its bankruptcy insolvency, winding-up or liquidation; (6) have a secured party take possession of all or substantially all its assets or have a distress, execution, attachment, sequestration or other legal process levied, enforced or sued on or against all or substantially all its assets and such secured party shall maintain possession, or any such process shall not be dismissed, discharged, stayed or restrained, in each case within 60 days thereafter; (7) cause or become subject to any event which, under the applicable laws of any jurisdiction, has an analogous effect to any of the events specified in clauses (1) to (6) (inclusive); or (8) take any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the foregoing acts.

	
Disapplication and Modification of Provisions of the Annex I: 
	
The following provisions of Annex I to the Agreement shall not apply to the Transaction evidenced by this Confirmation:

Parts 1(a), 1(b), 1(d)(i), 1(d)(iii), 1(d)(iv), 1(n), 2(b), and 2(c) of Annex I.

	
Counterparts Clause:
	
This Confirmation may be signed or executed in any number of counterparts, and by each Party on separate counterparts. Each counterpart is an original but shall not be effective until each Party has executed and delivered at least one counterpart. All counterparts together shall constitute one and the same instrument. This has the same effect as if the signatures on the counterparts were on a single original of this Confirmation. Delivery of an executed counterpart signature page of this Confirmation by email (portable document format ("pdf")) or facsimile copy shall be as effective as delivery of a manually executed counterpart of this Confirmation.

 

 

	

	
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No effect, Inconsistency:
	
The terms set forth in this Confirmation for this trade shall apply only to the Transaction.

	
Buyer's Bank Account Details: 
	
Account Name: UBS AG, Stamford Branch

SWIFT BIC Code: UBSWUS33

For the benefit of:

UBS AG, London Branch

SWIFT BIC Code: UBSWGB2L

Account No.: /101-WA41275-000

 

	
Seller's Bank Account Details:
	
As specified separately to Buyer from Seller. 

	
Notices:
	
If to Seller:

As specified in the Annex to the Agreement

If to Buyer:

As specified in the Annex to the Agreement.  

	
5          Additional Defined Terms

	
Capitalized terms used but not defined herein shall have the respective meanings given to such terms in the Indenture; provided that all references therein to the Valuation Agent shall be deemed to be references to the Calculation Agent hereunder. In addition, the following terms shall have the respective meanings specified below:

"Class A Notes" means the Class A Notes issued under the Indenture.

"Indenture" means the Indenture dated as of December 16, 2019, between Great Lakes BCPL Funding Ltd. and U.S. Bank National Association, as trustee, as amended, supplemented or otherwise modified from time to time.

"Indenture Event of Default" means an "Event of Default" (as defined in the Indenture) occurs with respect to the Issuer under the Indenture.

“Net Asset Value” means, with respect to Seller and any date of determination, the aggregate net asset value of Seller (calculated in accordance with United States generally accepted accounting principles).

“Other Senior Secured Liabilities” means Indebtedness of Seller (other than Indebtedness evidenced hereby) that: (i) is not (and by its terms is not permitted to become) subordinate in right of payment to any other debt for borrowed money incurred by Seller and (ii) is secured by a valid first priority perfected security interest or lien on specified collateral (such collateral, together with any other pledged assets, having a value equal to or greater than the outstanding principal amount of such Indebtedness) securing Seller’s obligations under such Indebtedness, which security interest or lien is subject to customary liens.

“Overnight Receipt Rights” means, in reference to a particular investment, deposit or other instrument, an enforceable right of fund against the bank, prime broker, custodian or other holder thereof, as applicable, to demand and receive transfer of such investment, deposit or instrument (or proceeds thereof) on the same day of, or the next day after, fund’s request for such transfer.

 

 

	

	
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“Ramp-Up Asset Coverage Ratio” means, with respect to Seller and any date of determination, the ratio (expressed as a percentage) of (a) the total assets of Seller (calculated in accordance with United States generally accepted accounting principles) to (b) all Indebtedness of Seller. 

“Senior Asset Coverage Ratio” means, with respect to Seller and any date of determination, the ratio (expressed as a percentage) of (a) the total assets of Seller (calculated in accordance with United States generally accepted accounting principles) to (b) the aggregate of (i) the then-current Purchase Price plus (ii) the Other Senior Secured Liabilities. 

“Unencumbered Cash” means, without double counting, the aggregate amount of:

(a) Seller’s (i) overnight repo investments, overnight bank deposits, money market investments or other similar instruments (including obligations issued by the US Department of Treasury and mortgage-backed securities issued by either the Government National Mortgage Association or by a Government sponsored enterprise) (collectively, "Cash Equivalents") and (ii) Seller’s cash on deposit that, in each case, (A) are not encumbered, (B) are available for use for general corporate purposes and not held in any reserve account or legally or contractually restricted for any particular purposes, and (C) have Overnight Receipt Rights; and 

(b) cash or Cash Equivalents that (i) are credited to the Accounts and are expressly permitted or required to be distributed to Seller pursuant to, and in accordance with, the Indenture but which have not actually been withdrawn or (ii) have been withdrawn from the Accounts for distribution to Seller pursuant to, and in accordance with, the Indenture but are pending settlement and do not yet satisfy the requirements of clause (a) above; 

provided that (x) the fact that assets might become unavailable upon the occurrence of an insolvency of the financial institution that has custody of such assets shall not prevent such assets from being included in the “Unencumbered Cash” calculation so long as such assets have not, in fact, become unavailable and (y) in the case of clause (a), any cash posted as collateral to any third party shall not constitute “Unencumbered Cash” for purposes of this definition.

“Zero Value Portfolio Asset” means a “Zero Value Portfolio Asset”, as defined in the Indenture.

 

[signatures follow on the next page]

 

 

 

	

	
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By executing this Confirmation and returning it to us, Seller confirms that the foregoing correctly sets out the terms of the agreement of the Parties.

Yours faithfully,

UBS AG, LONDON BRANCH,

In its individual capacity and as Calculation Agent

 

By: _________________________________
Name:
Title:

By: _________________________________
Name:
Title:

 

 

	

	
UBS – Signature Page to Confirmation
	
 

 

 

 

Confirmed as of the date first above written:

BC PARTNERS LENDING CORPORATION

 

By:________________________
Name:

Title:

  

 

 

			
	

	
BC Partners – Signature Page to Confirmationbcpl-ex1011_139.htm

Exhibit 10.11

 

EXECUTION VERSION

 

COLLATERAL MANAGEMENT AGREEMENT

This Collateral Management Agreement (this Agreement) is made as of December 16, 2019, by and between GREAT LAKES BCPL FUNDING LTD.., an exempted company incorporated with limited liability under the laws of the Cayman Islands (the Issuer), and BC PARTNERS LENDING CORPORATION, a corporation incorporated under the law of the State of Maryland (together with its successors and assigns in such capacity, the "Collateral Manager").

RECITALS:

The Issuer intends to issue certain Class A Notes (the "Class A Notes") pursuant to an Indenture, dated as of the date hereof (as amended, supplemented or otherwise modified from time to time, the "Indenture"), between the Issuer and U.S. Bank, National Association, a limited purpose national banking association with trust powers organized under the laws of the United States, as trustee (together with its permitted successor and assigns in the trusts thereunder, the "Trustee").

Pursuant to the Indenture, the Issuer has pledged the Collateral to the Trustee as security for the Class A Notes and the other Secured Obligations.

The Issuer wishes to enter into this Agreement, pursuant to which the Collateral Manager agrees to perform, on behalf of the Issuer, certain duties with respect to the Collateral securing the Class A Notes and the other Secured Obligations in the manner and on the terms set forth herein and to provide such additional services as are consistent with the terms of this Agreement, the Collateral Administration Agreement and the Indenture, and the Collateral Manager has the capacity to provide the services required hereby and is prepared to perform such services upon the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, and other good and valuable consideration the receipt of which is hereby acknowledged, the parties hereto agree as follows:

	
1.
	
Definitions

Capitalized terms used but not defined herein (including in the recitals) shall have the respective meanings given to such terms in the Indenture.  In the event of any conflict or inconsistency between any term defined herein and any term defined in the Indenture, the defined term as set forth herein shall govern.

"Accepted Servicing Practices":  The meaning specified in Section 7.

"Advance Restructuring Notice":  The meaning specified in Section 2(m).

"Collateral Manager Advances":  All Collateral Manager Expenses paid by the Collateral Manager from its own funds in connection with its obligations under this Agreement.

 

		
	
 
	
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"Collateral Manager Breach":  The meaning specified in Section 8(a).

"Collateral Manager Expenses":  Any and all reasonable out‐of‐pocket costs and expenses paid or incurred by the Collateral Manager in the course of performing its obligations under this Agreement and the other Transaction Documents, including (a) the reasonable out-of-pocket expenses and costs of legal advisors, accountants, rating agencies, consultants, brokers and other professionals retained by the Issuer or by the Collateral Manager on behalf of the Issuer in connection with the services provided by the Collateral Manager pursuant to this Agreement and the other Transaction Documents; (b) fees, expenses, and other costs incurred by the Collateral Manager in connection with the acquisition or disposition, or proposed acquisition or disposition of any Portfolio Asset, or the default or restructuring thereof, including news and quotation subscription expenses, brokerage commissions, research expenses, accounting, programming and data entry services, any review, waiver or amendment with respect to Underlying Instruments, insurance premiums, rating agency fees, computer software and services costs and travel costs (airfare, meals, lodging and other transportation), provided, that, to the extent such expenses are incurred for the benefit of the Issuer and other entities Affiliated with or advised by the Collateral Manager, the Issuer shall be responsible for only a pro rata portion of such expenses of the Collateral Manager, based on a good faith allocation by the Collateral Manager of such expenses among all such entities and the Issuer; (c) amounts payable by the Collateral Manager to the Collateral Administrator under the Collateral Administration Agreement (other than indemnities payable as a result of bad faith, willful misconduct, gross negligence or fraud of the Collateral Manager); (d) expenses incurred for general business operations of the Issuer, including charges or expenses incurred by the Collateral Manager in performing non-advisory services on behalf of the Issuer (in each case, in connection with the transactions contemplated hereby); (e) all taxes, regulatory and governmental charges (in each case, not based on the income of the Collateral Manager), insurance premiums or expenses in each case incurred or paid on behalf of the Issuer or in connection with the performance of its obligations hereunder or under any of the other Transaction Documents.

"Confidential Information":  The meaning specified in Section 16(b).

"Counterparty":  BC Partners Lending Corporation, in its capacity as the counterparty under the Global Master Repurchase Agreement.

"Firm Bid":  The meaning specified in Section 2(o)(ii).

"Force Majeure Event": means such an operation of the forces of nature beyond the Collateral Manager’s control as reasonable foresight and ability could not foresee or reasonably provide against including but not limited to, acts of god, flood, war (whether declared or undeclared), terrorism, fire, strikes or work stoppages for any reason, embargo, government action, including any laws, ordinances, regulations or the like which restrict or prohibit the providing of the services contemplated by this Agreement, inability to obtain material, equipment, or communications or computer facilities, or the failure of equipment or interruption of communications or computer facilities, and other causes beyond the Collateral Manager’s control whether or not of the same class or kind as specifically named above.

 

		
	
 
	
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"Full Payment Date":  The day next following the payment in full or redemption in whole of the Notes in accordance with the terms of the Indenture.

"Indemnified BC Partners Person":  The meaning specified in Section 8(a).

"Indemnified Issuer Person":  The meaning specified in Section 9(b).  

"Indemnified Person":  (a) A Indemnified BC Partners Person or (b) an Indemnified Issuer Person, as applicable.

"Insolvency Laws":  (a) the United States Bankruptcy Reform Act of 1978 (11 U.S.C. § 101, et seq.), as amended from time to time, and (b) all other applicable liquidation, conservatorship, examinership, bankruptcy, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of any applicable jurisdiction from time to time in effect affecting the rights of creditors generally.

"Investment Company Act":  The meaning specified in Section 10(d).

"Liabilities":  The meaning specified in Section 8(a).

"Managed Assets":  The meaning specified in Section 2(e).

"Manager Asset Sale Cut-Off Time":  3:00 p.m. (New York time) on the date that is one calendar month following the day on which the UBS Termination Event occurs.

"Manager Related Parties":  The meaning specified in Section 6(a).

"Material Action": 

(i) any waiver of, or reduction in the amount of, principal or interest payable or any fee payable any portion of the Collateral, or any extension of any payment deadline with respect to any portion of the Collateral;

(ii) any termination or release of any Lien or security interest securing all or part of the Collateral or the release of a Portfolio Asset Obligor with respect to any Portfolio Asset from its respective obligations under or in connection with such Portfolio Asset, or any foreclosure with respect to any portion of the Collateral, or any acceptance of any assumption agreement with respect to the obligations of any obligor under or guarantor with respect to such Portfolio Asset (other than, in each case, in accordance with the express terms of the related Underlying Instruments);

(iii) the subordination of any Portfolio Asset to any other obligation of any related Portfolio Asset Obligor, or the subordination of any of the liens securing any portion of the Collateral;

(iv) any change to any financial covenant or to any financial definition used in calculating compliance with any financial covenant under any Underlying Instrument with respect to a Portfolio Asset;

 

		
	
 
	
Page 3

 

 

(v) any reduction in the financial reporting obligations of a Portfolio Asset Obligor or in its obligation to provide notices of defaults under any Underlying Instrument;

(vi) any exchange or other restructuring that will reduce the financial obligations of any Portfolio Asset Obligor with respect to any Portfolio Asset;

(vii) any exchange or other restructuring that expressly amends or waives any of the default provisions (as in effect immediately prior to giving effect to such amendment or waiver) set forth in any Underlying Instrument such that, immediately after giving effect to such amendment or waiver, a default by any Portfolio Asset Obligor under such Portfolio Asset that had previously occurred and was continuing ceases to be continuing or is otherwise waived;

(viii) any substitution of collateral securing the obligations of any Portfolio Asset Obligor with respect to any Portfolio Asset whereby the replacement collateral involved in such substitution has an aggregate market value that is less than the aggregate market value of the collateral being replaced through such substitution (other than in accordance with the express terms of the related Underlying Instruments);

(ix) any subordinate Lien arising on any collateral securing the obligations of any Portfolio Asset Obligor with respect to any Portfolio Asset (other than a subordinate Lien already existing on the trade date when such Portfolio Asset is acquired by the Issuer) or any waiver of any term relating to any subordinate Lien on any collateral securing such obligations, in each case, other than in accordance with the express terms of the related Underlying Instruments; 

(x) any restructuring, foreclosure, deed in lieu, or comparable transfer of title to any collateral securing the obligations of any Portfolio Asset Obligor with respect to any Portfolio Asset or any taking back of control, or acquiescence in the transfer of control, from any Portfolio Asset Obligor with respect to any such collateral;

(xi) any changes to the pro rata allocation or sharing of distributions required by any Underlying Instrument; or

(xii) any changes to any of the provisions of any Underlying Instrument specifying the number or percentage of lenders whose consent or approval is required to effect, or whose objection is required to block, any of the actions specified in any of the foregoing clauses (i) through (xi).

"Other Investment Vehicles":  The meaning specified in Section 6(b).

"Portfolio Asset Sale Cut-Off Time":  3:00 p.m. (New York time) on the date that is three calendar months following the day on which the UBS Termination Event occurs.

"Post-Restructuring Notice":  The meaning specified in Section 2(m).

"Proceedings":  The meaning specified in Section 21(b).

 

		
	
 
	
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"Responsible Officer":  Any officer, or director or employee of the Issuer or the Collateral Manager, as the case may be, involved in or responsible for the administration, supervision or management of this Agreement.

"Risk Retention Rules":  The requirements of Section 941 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

"UBS":  UBS AG, London Branch, in its capacity as a party under the Global Master Repurchase Agreement.

"UBS Termination Event":  The meaning specified in Section 2(o).

	
2.
	
General Duties of the Collateral Manager

Subject to and in accordance with the terms of the Indenture and this Agreement, the Collateral Manager shall provide those services pertaining to the Portfolio Assets and the other Collateral that, applying Accepted Servicing Practices, are required to be performed by the Collateral Manager, which services include the following:

(a)The Collateral Manager agrees to supervise and direct the acquisition of, disposition of, investment in and reinvestment of the proceeds of the Collateral, and shall perform on behalf of the Issuer the duties that have been expressly delegated to the Collateral Manager in this Agreement, the Collateral Administration Agreement, the Indenture (and the Collateral Manager shall have no obligation to perform any other duties under the Indenture or otherwise) and any other Transaction Document to which the Collateral Manager is party and, to the extent necessary or appropriate to perform such duties, the Collateral Manager shall have the power to execute and deliver all necessary and appropriate documents and instruments on behalf of the Issuer with respect thereto.  In addition, in performing its obligations under this Agreement, the Collateral Manager shall, except as otherwise provided in and subject to the terms of this Agreement, have full power and authority to (i) take any and all actions in connection with its collateral management obligations hereunder that it deems necessary or appropriate (in each case, subject to Accepted Servicing Practices), and (ii) execute and deliver or cause to be executed and delivered all necessary and appropriate documents and instruments on behalf of the Issuer with respect thereto.  In furtherance of the foregoing, the Issuer hereby makes, constitutes and appoints the Collateral Manager, with full power of substitution, as its true and lawful agent and attorney-in-fact, with full power and authority in its name, place and stead, to sign, execute, certify, swear to, acknowledge, deliver, file, receive and record any and all documents which the Collateral Manager reasonably deems appropriate or necessary in connection with its duties under this Agreement or any other Transaction Document.  The foregoing power of attorney is hereby declared irrevocable and a power coupled by an interest, and it shall survive and not be affected by the subsequent dissolution, bankruptcy or termination of the Issuer; provided, however, that the foregoing power of attorney will expire, and the Collateral Manager will cease to have any power to act as the Issuer's attorney-in-fact, upon termination of this Agreement (upon the effectiveness of any resignation of the Collateral Manager or otherwise) in accordance with the terms hereof.  The Issuer shall execute and deliver to the Collateral Manager, or cause to be executed and delivered to the Collateral Manager, all such other powers of attorney, proxies, dividends and other orders, and all such instruments as 

 

		
	
 
	
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the Collateral Manager may reasonably request for the purpose of enabling the Collateral Manager to exercise the rights and powers which it is entitled to exercise pursuant to this Agreement or any other Transaction Document. The Issuer hereby agrees to cooperate with the Collateral Manager by either executing and delivering to the Collateral Manager from time to time (x) other powers of attorney evidencing the Collateral Manager's authority and power under this Agreement, or (y) such other documents or instruments deemed necessary or appropriate by the Collateral Manager to enable the Collateral Manager to carry out its collateral management obligations under this Agreement.

(b)The Collateral Manager shall (i) select all Portfolio Assets and Eligible Investments which shall be acquired or sold by the Issuer and pledged to the Trustee pursuant to the Indenture, and (ii) facilitate the acquisition, disposition and settlement of Portfolio Assets by the Issuer in accordance with the Indenture, including the delivery of Collateral in accordance with the Indenture.  In so doing, the Collateral Manager shall take into consideration, among other things, the payment obligations of the Issuer under the Indenture on each Payment Date (including, without limitation, the payment obligations in respect of the interest and principal on the Notes), and the Priority of Payments and the expected distributions on the Portfolio Assets. 

(c)The Collateral Manager shall monitor the Collateral, on behalf of the Issuer, on an ongoing basis and shall, subject to the immediately succeeding sentence, use commercially reasonable efforts to provide (or cause to be provided) to the Issuer all reports, schedules and other data which the Issuer is required to prepare, deliver or furnish under the Indenture or the Collateral Administration Agreement (in each case, except to the extent that the Collateral Administrator is required pursuant to the Collateral Administration Agreement to provide to the Issuer any such reports, schedules and other data, in which event the Collateral Manager shall have no obligation with respect thereto), in the form and containing all information required thereby and on or before the date required under the Indenture and to deliver them to the parties entitled thereto under the Indenture. The Collateral Manager shall, on behalf of the Issuer, use commercially reasonable efforts to determine whether a Portfolio Asset has become a Defaulted Obligation.

(d)The Collateral Manager shall use commercially reasonable efforts to furnish Issuer Orders, Issuer Requests and officer's certificates as may be required under the Indenture, including providing any certifications.

(e)The Collateral Manager may, in its sole discretion, subject to and in accordance with the provisions of the Indenture and this Agreement including, but not limited to, Section 2(n), take on behalf of the Issuer or, if applicable, direct the Trustee in writing to take the following actions with respect to any Portfolio Asset, Defaulted Obligation, and any other assets and property included in the Collateral (collectively, the "Managed Assets"), as applicable:

(i)retain such Managed Asset;

(ii)sell or otherwise dispose of such Managed Asset in the open market or otherwise (including to itself or to an Affiliate of the Collateral Manager in accordance with Section 6(f));

 

		
	
 
	
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(iii)acquire, as security for the Class A Notes in substitution for or in addition to any one or more Managed Assets included in the Collateral, one or more additional assets;

(iv)if applicable, tender such Managed Asset pursuant to an Offer;

(v)if applicable, consent or refuse to consent to any proposed amendment, modification, restructuring, exchange, extension or waiver pursuant to an Offer and give or refuse to give any notice or direction;

(vi)retain or dispose of any obligations, securities or other property (other than Cash) received by the Issuer;

(vii)call or waive any default with respect to any Defaulted Obligation and instruct the Trustee to enforce the Issuer’s rights under the related Underlying Instrument and any applicable law, rule or regulation in any manner permitted under the Indenture;

(viii)vote to accelerate the maturity (or rescind the acceleration of) of any Defaulted Obligation;

(ix)amend, waive, consent, modify, extend or vote with respect to any Managed Asset;

(x)exercise any other rights or remedies with respect to any Managed Asset and, as provided in the related Underlying Instrument, including, without limitation, the negotiation of any workout or restructuring and the acceptance of any security or other consideration issued in a plan of reorganization, bankruptcy or other proceeding involving any thereof, participation in a committee or group formed by creditors of an oblige or an issuer under a Managed Asset, or take any other action consistent with the terms of the Indenture which, in accordance with Accepted Servicing Practices, the Collateral Manager determines in its reasonable judgment is in the best interests of the Holders; and

(xi)exercise any other rights or remedies with respect to such Managed Asset.

(f)Except as expressly otherwise permitted in Section 6, the Collateral Manager shall cause any purchase or sale of any Managed Asset to be effected for Cash and otherwise on, subject to Section 6(f), arm's length terms.

(g)In connection with taking or omitting any action under the Indenture or this Agreement, the Collateral Manager may, in accordance with Accepted Servicing Practices, consult with counsel and may rely in good faith on the advice of such counsel or any opinion of counsel selected in good faith with reasonable care.

(h)From and after the occurrence and continuance of an Event of Default, the Collateral Manager shall continue to perform and be bound by the provisions of this Agreement.  The Trustee shall be entitled to rely and be protected in relying upon all actions and omissions of the Collateral Manager thereafter as fully as if no Event of Default had occurred.

 

		
	
 
	
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(i)Notwithstanding anything to the contrary contained herein, the standard of care applicable to the Collateral Manager's performance of its services under this Agreement shall be the servicing standards applicable pursuant to Accepted Servicing Practices.

(j)The Collateral Manager may enter into subservicing agreements for the servicing and administration of all or a part of the Portfolio Assets and the other Collateral; provided that entering into such a subservicing agreement shall not constitute an assignment of rights or delegation of performance obligations of the Collateral Manager, which obligations shall remain the primary obligations of the Collateral Manager.

(k)In performing its duties hereunder, the Collateral Manager shall not take any action which is prohibited pursuant to the terms of the Indenture or any of the other Transaction Documents. The Collateral Manager shall use good faith efforts to ensure that no action is taken by it, and shall not intentionally or with reckless disregard take any action, which could cause the Issuer to violate the terms of the Indenture or any other Transaction Documents, including any representation, warranty or undertaking of the Issuer, and any certificates to be delivered by the Issuer pursuant to the Indenture or any of the other Transaction Documents.

(l)Notwithstanding any other term of this Agreement, in no event shall the Collateral Manager have any obligation to cause the Issuer to comply with any monetary obligation set forth in any Transaction Document (including, without limitation, the payment of principal, interest, fees, expenses, indemnity obligations or other amounts).

(m)Notwithstanding any other term of this Agreement, (i) the Collateral Manager shall deliver written notice (such notice, an "Advance Restructuring Notice") to the Valuation Agent in the event that the Collateral Manager receives a written or other formal request to take, agree to or consent to any amendment or action with respect to any Portfolio Asset (regardless of whether the Collateral Manager considers any such proposed amendment or action to be a Material Action) within five Business Days following receipt of such request (or, if earlier, at least four Business Days prior to the proposed amendment or action date), which Advance Restructuring Notice shall specify whether, in the determination of the Collateral Manager (which determination shall be for indicative purposes only and not binding or conclusive in any way on the Valuation Agent if any dispute between the parties should arise as to whether a Material Action has been proposed or effected), the proposed action constitutes a Material Action; and (ii) the Collateral Manager shall provide evidence (the notice providing such evidence, a "Post-Restructuring Notice") of any amendment or action (regardless of whether the Collateral Manager considers such amendment or action to be a Material Action) within two Business Days after the date on which the fully executed documentation evidencing such amendment or action is received by Collateral Manager; provided that, if in the reasonable opinion of the Collateral Manager it would not be practicable to deliver the Post-Restructuring Notice within two Business Days after the date on which the fully executed documentation evidencing such amendment or action is received by Collateral Manager due to an administrative or operational reason, such Post-Restructuring Notice may be delivered within five Business Days after the date on which such documentation evidencing such amendment or action is received by Collateral Manager.  The Valuation Agent shall be an express third party beneficiary for the purposes of this Section 2(m).

 

		
	
 
	
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(n)(i)  Notwithstanding any other terms of this Agreement, so long as either (x) an "Event of Default" with respect to which the Counterparty is the "Defaulting Party" or a "Mandatory Prepayment Event" (howsoever described) shall have occurred and is continuing under the Global Master Repurchase Agreement (as each such term is defined therein) or (y) an Event of Default shall have occurred and is continuing under the Indenture, the Collateral Manager shall exercise any right of the Issuer described in an Advance Restructuring Notice to take, agree, vote on or consent to any amendment or action with respect to any Portfolio Asset only in accordance with the written direction of the Valuation Agent.

(ii)The Valuation Agent shall be an express third party beneficiary of the provisions set forth in this Section 2(n) to the extent that it is entitled to receive notifications or exercise consent, voting or similar rights under this Section 2(n).

(o)If an "Early Termination Date" has occurred with respect to the Global Master Repurchase Agreement as a result of an "Event of Default" with respect to which UBS was a "Defaulting Party" (as such term is defined in the Global Master Repurchase Agreement) (such event, a "UBS Termination Event"), the Collateral Manager will use its commercially reasonable efforts to sell or otherwise dispose of all Portfolio Assets in accordance with Articles 5 and 12 of the Indenture, provided that each such sale shall be conducted in compliance with the following requirements:

(i)commencing on the day on which the UBS Termination Event occurs and until the Manager Asset Sale Cut-Off Time, the Collateral Manager (or any Affiliate thereof) may purchase any or all of the Portfolio Assets, so long as each such purchase is, subject to Section 6(f), made on an arm's length basis;

(ii)the Collateral Manager shall, commencing on the Manager Asset Sale Cut-Off Time, seek to obtain firm, actionable bids (each such bid, a "Firm Bid") for the entire Principal Balance of each Portfolio Asset (other than any Portfolio Asset (x) that was purchased by the Collateral Manager (or any Affiliate thereof), or (y) with respect to which the Collateral Manager (or any Affiliate thereof) has made a firm bid to purchase pursuant to (i) above) from at least three leading dealers in the relevant market, one of which may be the Collateral Manager or its designee, at or prior to the Portfolio Asset Sale Cut-Off Time; provided that if there is more than one Portfolio Asset at any time, the Collateral Manager may in its sole discretion obtain Firm Bids with respect to each separate Portfolio Asset or any one or more groups of Portfolio Assets; provided further that with respect to any single Portfolio Asset, the Collateral Manager may in its sole discretion obtain Firm Bids with respect to any portion of the Principal Balance of such Portfolio Asset so long as it seeks to obtain at least three Firm Bids with respect to each portion of such Portfolio Asset;

(iii)if the Collateral Manager obtains one Firm Bid or a combination of Firm Bids for the entire Principal Balance of any Portfolio Asset (or portion thereof or group of Portfolio Assets) prior to the Portfolio Asset Sale Cut-Off Time in accordance with the foregoing clause (i), the Collateral Manager shall cause the sale of such Portfolio Asset (or portion thereof or group of Portfolio Assets) to the Person or Persons providing the highest such Firm Bid or the combination of Firm Bids having the highest weighted average;

 

		
	
 
	
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(iv)any Holder that owns 10% or more of the Aggregate Outstanding Amount of Notes shall be entitled to participate in such bidding process with respect to one or more of the Portfolio Assets by submitting Firm Bid(s) therefor (and in such case, such Holder shall be deemed a "leading dealer" for purposes of clause  (ii) above);

(v)the Collateral Manager shall notify the Trustee on (or as soon as reasonably practicable following) the date on which the UBS Termination Event occurs that it is selling or otherwise disposing of all of the Portfolio Assets in accordance with Section 12.1 of the Indenture and this Section 2(o), and direct the Trustee to deliver a notice to all Holders (prepared and provided by the Collateral Manager) on (or as soon as reasonably practicable following) the date on which the UBS Termination Event occurs that (A) notifies the Holders of such sale, (B) notifies the Holders that any Holder that owns 10% or more of the Aggregate Outstanding Amount of Notes shall be entitled to participate in such bidding process with respect to one or more of the Portfolio Assets by submitting Firm Bid(s) therefor, and (C) provides instructions so that any Holder that owns 10% or more of the Aggregate Outstanding Amount of Notes may notify the Collateral Manager that it will participate in the bidding process with respect to one or more of the Portfolio Assets; and

(vi)the Collateral Manager shall use commercially reasonable efforts to sell or otherwise dispose of all Portfolio Assets and Eligible Investments no later than the Portfolio Asset Sale Cut-Off Time.

(p)Immediately upon becoming aware that any Portfolio Asset, at any time after the acquisition thereof by the Issuer, has become a Defaulted Obligation, the Collateral Manager shall deliver a notice of such event to (i) the Issuer and (ii) the Valuation Agent (which shall constitute a third party beneficiary of this Agreement for purposes of such obligation).

	
3.
	
No Joint Venture

Nothing in this Agreement shall be deemed to create a joint venture or partnership between the parties with respect to the arrangements set forth in this Agreement, or impose any liability arising out of such joint venture or partnership on such parties.  For all purposes of performing its obligations hereunder, the Collateral Manager shall be deemed to be an independent contractor and, unless otherwise provided herein or specifically authorized by the Issuer, from time to time, shall have no authority to act for or represent the Issuer.

	
4.
	
Brokerage

(a)The Collateral Manager shall use all commercially reasonable efforts to obtain the best execution for all orders placed with respect to the Managed Assets, considering all reasonable circumstances (it being understood that the Collateral Manager has no obligation to obtain the lowest commission or best prices available).  Consistent with the objective of obtaining best execution, the Collateral Manager may, in the allocation of business, take into consideration all factors that the Collateral Manager reasonably determines to be relevant, including, without limitation, timing, price, dealer spread or commission, size and difficulty of the transaction, general relevant trends and research and other brokerage services furnished to the 

 

		
	
 
	
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Collateral Manager or its Affiliates by brokers and dealers.  Such services may be used by the Collateral Manager or its Affiliates in connection with its other advisory activities or investment operations.  To the extent consistent with the Collateral Manager's objective to obtain the best execution for all orders placed with respect to the Managed Assets and any other provision of this Agreement, the Collateral Manager may aggregate sales and purchase orders of securities placed with respect to the Managed Assets with similar orders being made simultaneously for other accounts managed by the Collateral Manager or with similar orders being made simultaneously for accounts of its Affiliates.  When any aggregate sales or purchase orders occur, the Collateral Manager (and any of its Affiliates involved in such transactions) shall allocate the executions among the accounts in an equitable manner. 

(b)To the extent permitted by applicable law, the Collateral Manager may aggregate sales and purchase orders of loans placed with respect to the Managed Assets with similar orders being made simultaneously for other accounts managed by the Collateral Manager or with similar orders being made simultaneously for accounts of its Affiliates if, in the Collateral Manager’s reasonable judgment, such aggregation shall result in an overall economic benefit to the Issuer, taking into consideration the selling or purchase price, brokerage commissions and other expenses.  When any aggregate sales or purchase orders occur, the objective of the Collateral Manager shall be to allocate the items of property so purchased or sold, as well as expenses incurred in the transaction among the accounts in an equitable manner.

	
5.
	
Collateral Manager's Expenses

(a)The Collateral Manager shall have no obligation to advance its own funds for the payment of any Collateral Manager Expenses if the Collateral Manager determines that any such Collateral Manager Advances are or will be, or that any outstanding Collateral Manager Advances are, non-recoverable.  In any case, the Collateral Manager may, at its option, make Collateral Manager Advances from its own funds with respect to the payment of Collateral Manager Expenses, in which event the Collateral Manager shall be reimbursed for such advances on each Payment Date without interest.  The making of a Collateral Manager Advance by the Collateral Manager under any particular set of circumstances will not obligate the Collateral Manager to make any additional or other Collateral Manager Advance under equivalent, similar or any other circumstances.

(b)Notwithstanding anything to the contrary in this Agreement or any other Transaction Document, the Collateral Manager agrees for the benefit of the Trustee (for and on behalf of itself and the Noteholders) that any obligations of the Issuer to pay or reimburse any amounts to the Collateral Manager under this Section 5, 8 (Limitation of Liability) or 9 (Indemnification) of this Agreement shall be made subject to and in accordance with Section 11 of the Indenture. 

	
6.
	
Services to Other Companies or Accounts; Conflicts of Interest

(a)The Issuer acknowledges that various potential and actual conflicts of interest may arise from the overall investment activity of the Collateral Manager, its Affiliates and their respective clients and employees.  The Issuer acknowledges, understands and agrees that the Collateral Manager and its Affiliates, and their respective shareholders, members, managers, 

 

		
	
 
	
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trustees, incorporators, partners, directors, officers, employees, representatives, agents and associates (collectively, the “Manager Related Parties”) are in no way prohibited from, and intend to, spend substantial business time in connection with other businesses or activities, including, but not limited to, managing investments, advising or managing entities other than the Issuer, whose investment objectives are the same as or overlap with those of the Issuer, participating in actual or potential investments of the Issuer, providing consulting, merger and acquisition, structuring or financial advisory services, including with respect to actual, contemplated or potential investments of the Issuer, or acting as a director, officer or creditors' committee member of, adviser to, or participant in, any corporation, partnership, trust or other business entity.  The Manager Related Parties may, and expect to, receive fees or other compensation from third parties for any of these activities, which fees will be for the benefit of their own account and not the account of the Issuer; provided that such activities could not reasonably be expected to have a material adverse effect on (A) the Holders of any Class A Notes, (B) the Issuer’s ability to perform its obligations under any Transaction Document to which it is party, (C) any Portfolio Asset or (D) the rights or remedies of UBS under the Transaction Documents.  These fees can relate to actual, contemplated or potential investments of the Issuer and may be payable by entities in which the Issuer, directly or indirectly, has invested or contemplates investing.

(b)In addition, the Issuer acknowledges, understands and agrees that the Collateral Manager or any other Manager Related Party may manage Affiliates of the Issuer (including, but not limited to, other funds, investment vehicles, accounts or advisory clients of the Collateral Manager or any of its Affiliates, collectively the "Other Investment Vehicles").  The investment policies, fee arrangements and circumstances of the Issuer may differ from such Other Investment Vehicles.  For example, the Collateral Manager may decide on behalf of the Issuer to retain an asset at the same time that one or more Other Investment Vehicles sells it.  Similarly, the Other Investment Vehicles which are in a liquidation phase may take priority as to sales of investments in which the Issuer is also an investor.  These procedures could in certain circumstances affect adversely the price paid or received by the Issuer or the size of the position purchased or sold by the Issuer.

(c)The Issuer acknowledges, understands and agrees that the Collateral Manager and any Other Investment Vehicle may have economic interests in, relationships with, or render services or engage in transactions with obligors in whose obligations the Issuer may invest.  As a result, officers and employees of the Collateral Manager and Other Investment Vehicles may possess (and will have no obligation to share) information relating to obligors that is not known to the individuals responsible for monitoring the Collateral or performing obligations under this Agreement.  In particular, the Collateral Manager, its Affiliates and/or Other Investment Vehicles may invest in and/or hold obligations of an obligor that may be pari passu, senior or junior in ranking to another obligation of such obligor that is included in the Collateral, and/or officers, directors and/or employees of the Collateral Manager, its Affiliates and/or Other Investment Vehicles may serve on boards of directors (or in a similar role) of or otherwise have ongoing relationships with such obligor.  The purchase, holding and sale of such obligations by the Issuer may enhance the profitability of the investments in such obligors held by the Collateral Manager, its Affiliates and/or Other Investment Vehicles.  Each of such ownership and other relationships may affect the ability of the Collateral Manager to advise the Issuer with respect to such obligations.

 

		
	
 
	
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(d)Although the Issuer intends to operate so that the Portfolio Assets are not "plan assets" under ERISA, some of the Other Investment Vehicles may hold or will hold "plan assets" subject to ERISA.  For those plan assets, certain partners, Affiliates and/or associates of the Collateral Manager are classified as "fiduciaries" under ERISA.  ERISA imposes certain general and specific responsibilities and restrictions on fiduciaries with respect to plan assets.  As a result, the Collateral Manager may adopt certain procedures to address other conflicts in order to satisfy ERISA requirements, if applicable.  The foregoing procedures could in certain circumstances affect adversely the Issuer by prohibiting the Issuer from purchasing a position from such Other Investment Vehicle or may limit the rights that the Issuer may exercise with respect to an investment.

(e)Members, Affiliates and associates of the Collateral Manager may have the ability, under certain circumstances, to take certain actions that would be inconsistent with the objectives of the Issuer.  In such circumstances, the Collateral Manager and its partners and associates will act in good faith and in a manner believed by them to be equitable; provided that, the Collateral Manager and its partners, Affiliates and associates may adopt certain procedures to address certain conflicts of interest.  The foregoing procedures could in certain circumstances affect adversely the price paid or received by the Issuer or the size of the position purchased or sold by the Issuer (including prohibiting the Issuer from purchasing a position) or may limit the rights that the Issuer may exercise with respect to an investment.

(f)The Collateral Manager shall not direct the Trustee to purchase any Portfolio Asset for inclusion in the Collateral directly from the Collateral Manager or any of its Affiliates as principal or any account or portfolio for which Collateral Manager or any of its Affiliates serve as investment advisor, or direct the Trustee to sell directly any Portfolio Asset to the Collateral Manager or any of its Affiliates as principal or any account or portfolio for which the Collateral Manager or any of its Affiliates serve as investment advisor, unless the Collateral Manager shall have certified to the Issuer and the Trustee (a copy of which shall be provided by the Trustee to the Valuation Agent which shall be an express third party beneficiary for the purposes of this Section 6(f)) with respect to such transaction that (i) such transaction will be consummated on terms prevailing in the market, (ii) the terms of such transaction are substantially as advantageous to the Issuer as the terms the Issuer could reasonably obtain in a comparable arm's length transaction with a non‐Affiliate and (iii) such transaction complies with all applicable laws.  In accordance with the foregoing, the Collateral Manager may, in one or more transactions, effect client cross-transactions where the Collateral Manager causes a transaction to be effected between the Issuer and another collateralized debt obligation vehicle, collateralized loan obligation vehicle, fund or another investment vehicle or account managed or advised by it or one or more of its Affiliates, but neither it nor the Affiliate will receive any commission or similar fee in connection with such cross-transaction.  

(g)[Reserved.] 

(h)The Collateral Manager shall not direct the Trustee to purchase any Portfolio Asset for inclusion in the Collateral if the obligor on such Portfolio Asset is the Collateral Manager or any of its Affiliates or any other fund or account managed by the Collateral Manager or its Affiliates, unless the acquisition of such Collateral is expressly permitted under the Indenture.

 

		
	
 
	
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(i)The Collateral Manager shall not cause the Issuer to purchase, and shall not direct the Trustee to purchase, any Portfolio Asset from the Sole Shareholder for inclusion in the Collateral unless such purchase complies with the requirements of the Side Letter Security Agreement.

	
7.
	
Standard of Care

The Collateral Manager shall comply with the terms and conditions of the Indenture specifically made applicable to the Collateral Manager as specified under this Agreement and the Indenture affecting the duties and functions that have been delegated to it and, subject to Section 8 of this Agreement, perform its obligations under this Agreement and the Indenture with reasonable care, using a degree of skill and attention no less than that which the Collateral Manager exercises with respect to comparable assets that it manages for itself and others having similar investment objectives and restrictions.  The servicing standards described in this Section 7 are herein referred to as "Accepted Servicing Practices".  To the extent consistent with the foregoing, the Collateral Manager shall follow its customary standards, policies and procedures in performing its duties under this Agreement and the Indenture, including those duties of the Issuer under the Indenture which the Collateral Manager has agreed hereunder to perform on the Issuer’s behalf.

	
8.
	
Limitation of Liability

(a)Without prejudice to the obligations of the Counterparty under any Transaction Document and the Global Master Repurchase Agreement, none of the Collateral Manager (solely in its capacity as Collateral Manager hereunder), its Affiliates (excluding the Issuer), any officer, director, manager, partner, member, employee, stockholder or agent of any of such Persons or any other Person that serves or provides advisory services and resources at the request of the Collateral Manager on behalf of the Issuer as an officer, director, manager, partner, member, employee or agent of any other entity (each, an "Indemnified BC Partners Person") shall be liable to the Trustee, any Holder, UBS, or the Issuer, any Affiliate of the foregoing or any other Person, for any losses, claims, charges, damages, judgments, assessments, costs, proceedings or other liabilities (collectively, “Liabilities”) incurred by any such Person arising out of, relating to, or in connection with the performance by the Collateral Manager of its duties under this Agreement and the Indenture or the transactions contemplated hereby or thereby, except by reason of acts or omissions constituting bad faith, willful misconduct, gross negligence or fraud by the Collateral Manager in the performance, or reckless disregard of the obligations of the Collateral Manager hereunder or under the terms of the other Transaction Documents applicable to it (a "Collateral Manager Breach").  Notwithstanding any provision herein or in the Indenture to the contrary, in no event shall either party hereto be liable for any consequential, indirect, special or punitive damages (including lost profits) of any kind whatsoever regardless of whether such losses or damages are foreseeable and regardless of the form of action.  Each Indemnified BC Partners Person may rely in good faith on any document of any kind that, prima facie, is properly executed and submitted by any appropriate Person respecting any matters arising under this Agreement.  The Collateral Manager shall be entitled to conclusively rely upon, and shall not incur any liability for relying upon, any notice, request, resolution, certificate, consent, affidavit, letter, facsimile, e-mail, statement, instrument, document or other writing or communication delivered to the Collateral Manager believed by it to be genuine and to have 

 

		
	
 
	
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been made, signed or sent by an authorized Person.  The Collateral Manager may consult with legal counsel, independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

(b)No claim may be made by any party hereto against any other party hereto or any officer, agent, stockholder, partner, manager, member, director or employee of any such party for any special, indirect, consequential or punitive damages (including lost profits) in respect of any claim for breach of contract or any other theory of liability arising out of or relating to this Agreement or the transactions contemplated hereby or any act, omission or event occurring in connection therewith, and to the fullest extent permitted by applicable law, each party hereto hereby waives, releases and agrees not to sue upon any claim for any such damages, whether or not accrued and whether or not known or suspected to exist in such party's favor.

(c)Subject to clause (b) of this Section 8, it is hereby agreed and declared that references to the Collateral Manager in this Section 8 shall be deemed to include the other Indemnified BC Partners Persons.

	
9.
	
Indemnification

(a)To the fullest extent permitted by law, the Issuer shall indemnify, defend and hold harmless each Indemnified BC Partners Person, against all Liabilities as determined by final adjudication of a court of competent jurisdiction after the exhaustion of all appeals and whether or not matured or unmatured or whether or not asserted or brought due to contractual or other restrictions (including reasonable legal or other expenses actually and reasonably incurred in investigating or defending against any such loss, claim, damage or liability), joint or several, (i) to which an Indemnified BC Partners Person may become subject by reason of any acts or omissions or any alleged acts or omissions arising out of such Indemnified BC Partners Person's or any other Indemnified BC Partners Person's activities in connection with the conduct of the business or affairs of the Issuer and/or a Portfolio Asset (including in connection with or relating to this Agreement), (ii) caused by or arising out of or relating to or in connection with this Agreement, any of the other Transaction Documents or any of the transactions contemplated thereby (including, without limitation, the issuance of the Class A Notes), or (iii) the enforcement, investigation, preparation, pursuit or defense of any claim, action, proceeding or investigation with respect to pending or threatened litigation in connection with the transactions contemplated by this Agreement, the Indenture or any other Transaction Document; provided, that such Person shall not be indemnified for any Liabilities that are incurred as a result of a Collateral Manager Breach.  Notwithstanding the exception set forth in the preceding sentence, if the Collateral Manager sustains any loss, liability or expense by reason of such exception and which results from any overcharges to a Portfolio Asset Obligor under a Portfolio Asset, then the Issuer shall, to the extent that such overcharges were collected by the Collateral Manager and remitted to the Issuer, promptly remit such overcharge to such Portfolio Asset Obligor after the applicable Issuer's receipt of written notice from the Collateral Manager regarding such overcharge.  In no event shall the Issuer be liable to any other party (including any Indemnified BC Partners Party) for any special, indirect, consequential or punitive (including lost profits) damages or losses.

 

		
	
 
	
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Any indemnification rights provided for in this Section 9(a) shall be retained by any resigned or replaced Collateral Manager and by all former Indemnified Persons.

(b)To the fullest extent permitted by law, the Collateral Manager shall indemnify, defend and hold harmless the Issuer, and each of its respective directors, managers, officers, stockholders, members, partners, agents and employees (each an "Indemnified Issuer Person"), against all Losses to which an Indemnified Issuer Person may become subject by reason of any acts or omissions or any alleged acts or omissions arising out of such Indemnified Issuer Person's or any other Indemnified Issuer Person's activities in connection with any Transaction Document or any transactions contemplated thereby, if such Losses result from any Collateral Manager Breach, unless such Loss results from (i) the gross negligence, willful misconduct or fraud of such Person, or (ii) a breach by the Indemnified Issuer Person of any of its representation, warranty, certification or obligations hereunder or under any other Transaction Documents to which it is party.  In no event shall the Collateral Manager be liable to any other party (including any Indemnified Issuer Party) for any special, indirect, consequential or punitive (including lost profits) damages. UBS shall constitute an express third party beneficiary for the purposes of this Section 9(b).

(c)Expenses incurred by an Indemnified Person in defense or settlement of any claim that shall be subject to a right of indemnification hereunder may be advanced by the Issuer prior to the final disposition thereof upon receipt of a written undertaking by or on behalf of the Indemnified Person to repay such amount to the extent that it shall be determined ultimately that such Indemnified Person is not entitled to be indemnified hereunder.  The right of any Indemnified Person to the indemnification provided herein shall be cumulative of, and in addition to, any and all rights to which such Indemnified Person may otherwise be entitled by contract or as a matter of law or equity and shall extend to such Indemnified Person's successors, assigns and legal representatives.  The indemnification rights hereunder are not subject to subrogation to any other party including any insurer.

(d)The indemnification rights provided for in this Section 9 shall survive the termination of this Agreement.  Notwithstanding anything else herein, nothing contained in this Section 9 or elsewhere in this Agreement shall be construed as relieving any person for any liability (including liability under applicable U.S. federal securities laws which, under certain circumstances, impose liability even on persons that act in good faith), to the extent that such liability may not be waived under, or such indemnification would be in violation of, applicable law.

	
10.
	
Term of Agreement; Survival of Certain Terms

(a)This Agreement shall become effective on the date hereof.  This Agreement shall continue in force and effect until the earliest to occur of:

(i)the payment in full or redemption in whole of the Notes and the satisfaction and discharge of the Indenture in accordance with its terms; 

(ii)the liquidation of the Portfolio Assets and the final distribution of proceeds of such liquidation to the Holders as provided in the Indenture; and

 

		
	
 
	
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(iii)termination of this Agreement in accordance with subsection (c),   subsection (d) or subsection (e) of this Section 10.

(b)Upon the occurrence of any "cause" event, this Agreement may be terminated (and the Collateral Manager may be removed for cause) by the Issuer (or the Trustee on its behalf) by written notice to the Collateral Manager setting forth the cause of such removal. Each of the following events shall constitute a "cause" event with respect to the Collateral Manager for the purposes of this Agreement:

(i)the Collateral Manager willfully violates or breaches any provision of this Agreement, any terms of the Indenture applicable to it, or any other Transaction Document to which it is a party (including, without limitation, any breach of a representation, warranty or certification of the Collateral Manager hereunder or thereunder);

(ii)(A) the Collateral Manager breaches any provision of this Agreement, any terms of the Indenture applicable to it, or any other Transaction Document to which it is a party (other than as covered in Section 10(b)(i)) which violation or breach has a material adverse effect on (1) the Holders of any Class A Notes, (2) the Issuer’s ability to perform its obligations under any Transaction Document to which it is party, (3) any Portfolio Asset or (4) the rights or remedies of UBS under the Transaction Documents, or (B) if capable of being cured, such  breach is not cured within 30 days after the date on which written notice of such breach has been given to the Collateral Manager by the Issuer or the Trustee, provided that no cure period shall apply with respect to a breach of Section 17 (Obligations of Collateral Manager), regardless of whether such failure is capable of cure;

(iii)(A) a breach of any representation, warranty or certification made by the Collateral Manager in this Agreement or the Indenture or in any certificate delivered pursuant to this Agreement or the Indenture, and (B) such breach has a material adverse effect on (1) the Holders of any Class A Notes, (2) the Issuer’s ability to perform its obligations under any Transaction Document to which it is party, (3) any Portfolio Asset or (4) the rights or remedies of UBS under the Transaction Documents;

(iv)the filing of a decree or order for relief by a court having jurisdiction over the Collateral Manager or any substantial part of its property in an involuntary case under any applicable Insolvency Law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official for the Collateral Manager or for any substantial part of its property, or ordering the winding up or liquidation of the Collateral Manager's affairs, and such decree or order shall remain unstayed and in effect for a period of thirty (30) consecutive days;

(v)the commencement by the Collateral Manager of a voluntary case under any applicable Insolvency Law now or hereafter in effect, or the consent by the Collateral Manager to the entry of an order for relief in an involuntary case under any such law;

 

		
	
 
	
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(vi)the consent by the Collateral Manager to the appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official for the Collateral Manager or for any substantial part of its property, or the making by the Collateral Manager of any general assignment for the benefit of creditors;

(vii)the failure by the Collateral Manager generally to pay its debts as such debts become due, or the taking of action by the Collateral Manager in furtherance of the actions described in the immediately preceding clauses (iv), (v) or (vi);

(viii)the occurrence and continuance of any Event of Default under the Indenture directly caused by the failure of Collateral Manager to perform its obligations under this Agreement or the Indenture;

(ix)(A) the occurrence of any act by the Collateral Manager constituting fraud or criminal negligence in respect of investment activity, or (B) any officer or employee of the Collateral Manager who has direct responsibility for the management of the Portfolio Assets is indicted for any act constituting fraud or criminal negligence in respect of investment activity and such Person fails to be removed from such Person’s role managing the Portfolio Assets within 7 Business Days; 

(x)(A) an "Event of Default" has occurred and is continuing under the Global Master Repurchase Agreement with respect to which the Counterparty is the "Defaulting Party" has occurred and is continuing, and (B) an "Early Termination Date" or early "Repurchase Date" has been designated or has occurred, in each case, under and as defined in the Global Master Repurchase Agreement;

(xi)the Collateral Manager has intentionally taken any action which would violate any law, rule or regulation actually known by one or more authorized officers of the Collateral Manager to be applicable to the Issuer of any governmental body or agency having jurisdiction over the Issuer, including, without limitation, actions which would violate any law of the jurisdiction of formation of the Issuer or United States federal, state or other applicable securities law, the violation of which has a material adverse effect on (A) the Issuer's ability to perform its obligations under the Transaction Documents, or (B) any of the Portfolio Assets; and

(xii)the Collateral Manager delivers written notice of the termination of this Agreement pursuant to subsection (c) or subsection (d) of this Section 10.

If any of the events specified in this subclause (b) of this Section 10 shall occur, the Collateral Manager shall give prompt written notice thereof to the Issuer and the Trustee (who shall forward to the Holders) upon a Responsible Officer of the Collateral Manager becoming aware of the occurrence of such event. 

(c)This Agreement may also be terminated by the Collateral Manager, (i) upon 30 days’ prior written notice, or (ii) immediately upon written notice setting forth the cause of such termination to the Issuer (with a copy to the Trustee), if a material change in applicable law or regulations renders the performance by the Collateral Manager of its duties under this Agreement or the Indenture to be a violation of such law or regulation.

 

		
	
 
	
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(d)This Agreement shall be automatically terminated in the event the Collateral Manager takes any action that would require a registration of the Issuer or the pool of Portfolio Assets (or any portion thereof) under the provisions of the Investment Company Act of 1940 (as amended) (the "Investment Company Act"), upon which termination the Collateral Manager shall provide a written notice of such automatic termination to the Issuer (with a copy to the Trustee) within a reasonably prompt time after an Officer of the Collateral Manager has determined, based upon advice of legal counsel, that such registration requirement has arisen or otherwise receives actual notice of such registration requirement or automatic termination.

(e)No termination or resignation of the Collateral Manager shall be effective until (i) a successor Collateral Manager has been selected by the Issuer and approved by UBS and (ii) such successor Collateral Manager assumes the obligations of the terminated or resigning Collateral Manager pursuant to and in accordance with a replacement collateral management agreement that is either substantially in the form of this Agreement or otherwise in a form approved by UBS and the Issuer. UBS shall constitute an express third party beneficiary for the purposes of this Section 10.

(f)Sections 5, 8, 9, 11, 16, 19, 20, 21 and 24 shall survive any termination of this Agreement.  Any such termination shall also be without prejudice to any rights of the Collateral Manager relating to the reimbursement of its Collateral Manager Expenses and Collateral Manager Advances through and including the date of such termination.

(g)Upon any such termination, any Collateral Manager Expenses and Collateral Manager Advances that remain unpaid or unreimbursed shall be remitted by the Issuer to the Collateral Manager on the next Payment Date after the Issuer's receipt of an itemized invoice therefor (provided such invoice is received no less than five (5) Business Days prior to such Payment Date).  Other than as set forth in the foregoing sentence, with effect from and including the effective date of the termination of the Collateral Manager's duties and obligations under this Agreement, the Collateral Manager shall not be entitled to compensation for further services hereunder.

	
11.
	
Benefit of the Agreement

The Collateral Manager agrees that its obligations hereunder in accordance with the terms of this Agreement and the provisions of the Indenture applicable to it shall be enforceable by the Issuer and by the Trustee on behalf of the Noteholders, as provided in the Indenture.  The Collateral Manager agrees and consents to the provisions contained in Section 15.1 of the Indenture.

	
12.
	
Action Upon Termination

(a)Upon any termination of this Agreement, the Collateral Manager shall as soon as reasonably practicable:

(i)deliver to the Issuer, or to the successor collateral manager if so directed by the Issuer, all property and documents of the Trustee or the Issuer or otherwise relating to the Portfolio Assets then in the custody of the Collateral Manager; and

 

		
	
 
	
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(ii)deliver to the Trustee an accounting with respect to the books and records delivered to the Trustee or the successor collateral manager (if any).

(b)Notwithstanding such termination, (x) the Collateral Manager shall remain liable to the extent set forth herein (but subject to Section 8 hereof) for its acts or omissions hereunder arising prior to termination, and for any expenses, losses, damages, liabilities, demands, charges and claims (including reasonable attorneys' fees) in respect of or arising out of a breach of the representations and warranties made by the Collateral Manager in Section 13 hereof or from any failure of the Collateral Manager to comply with the provisions of this Section 12, and (y) and the Issuer shall remain liable to the extent set forth herein for the reimbursement of the Collateral Manager's Collateral Manager Expenses and Collateral Manager Advances through and including the date of such their respective acts or omissions hereunder arising (or for breach of representations and warranties made hereunder) prior to termination to the extent set forth herein.

(c)The Collateral Manager agrees that, notwithstanding any termination, it shall reasonably cooperate in any Proceeding arising in connection with this Agreement, the Indenture, or any of the Portfolio Assets (excluding any such Proceeding in which claims are asserted against the Collateral Manager or any Affiliate of the Collateral Manager) upon receipt of appropriate indemnification and expense reimbursement satisfactory to the Collateral Manager.

(d)The provisions of this Section 12 shall survive the termination of this Agreement.

	
13.
	
Representations and Warranties

(a)The Collateral Manager hereby represents and warrants to the Issuer as follows as of the Signing Date:

(i)The Collateral Manager is a corporation formed under the laws of the State of Maryland and has full power and authority to own its assets and to transact the business in which it is currently engaged and is duly qualified and in good standing under the laws of each jurisdiction where its ownership or lease of property or the conduct of its business requires, or the performance of this Agreement would require such qualification, except for those jurisdictions in which the failure to be so qualified, authorized or licensed would not have a material adverse effect on the business, operations, assets or financial condition of the Collateral Manager or on (A) the Holders of the Class A Notes, (B) the ability of the Collateral Manager to perform its obligations under, or on the validity or enforceability of, this Agreement and the provisions of the Indenture applicable to the Collateral Manager, (C) the Issuer's ability to perform its obligations under the Transaction Documents or this Agreement or (D) the rights or remedies of the UBS under the Transaction Documents.

(ii)The Collateral Manager has the necessary power and authority to execute, deliver and perform this Agreement and all obligations required hereunder, under the provisions of the Indenture applicable to the Collateral Manager and under the other Transaction Documents to which it is a party, and has taken all necessary action to authorize this Agreement on the terms and conditions hereof and the execution, delivery and performance of this Agreement and all obligations required hereunder, under the provisions of the Indenture applicable to the Collateral Manager and under the other Transaction Documents to which it is a party.

 

		
	
 
	
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(iii)No consent of any other Person, including, without limitation, any partners or creditors of the Collateral Manager, and no license, permit, approval or authorization of, exemption by, notice or report to, or registration, filing or declaration with, any governmental authority is required by the Collateral Manager in connection with this Agreement, or the execution, delivery, performance, validity or enforceability of this Agreement or the obligations required hereunder, under the provisions of the Indenture applicable to the Collateral Manager or the other Transaction Documents to which it is a party.

(iv)This Agreement has been, and each instrument and document required hereunder or under the terms of the Indenture shall be, executed and delivered by a duly authorized officer of the Collateral Manager, and this Agreement constitutes, and each instrument and document required hereunder or under the terms of the Indenture when executed and delivered by the Collateral Manager hereunder or under the terms of the Indenture shall constitute, the valid and legally binding obligations of the Collateral Manager enforceable against the Collateral Manager in accordance with their terms, subject to (A) the effect of bankruptcy, insolvency or similar laws affecting generally the enforcement of creditors' rights and (B) general equitable principles.

(v)The execution, delivery and performance of this Agreement and the performance by the Collateral Manager of the provisions of the Indenture applicable to the Collateral Manager, the other Transaction Documents to which the Collateral Manager is a party and the documents and instruments required hereunder or thereunder or under the terms of the Indenture will not violate any provision of any existing law or regulation (except, in respect of the Risk Retention Rules, other than as represented by the Collateral Manager in Section 13(a)(viii)) binding the Collateral Manager, or any order, judgment, award or decree of any court, arbitrator or governmental authority binding on the Collateral Manager, or the Constituent Documents of, or any securities issued by, the Collateral Manager or constitute, with or without giving notice or lapse of time or both, a default under or result in a breach of any of the terms or provisions of any mortgage, indenture, lease, contract or other agreement, instrument or undertaking to which the Collateral Manager is a party or by which the Collateral Manager or any of its assets may be bound, the violation of which would have a material adverse effect on (A) the Holders of the Class A Notes, (B) the Issuer’s ability to perform under any Transaction Document, (C) any of the Portfolio Assets, (D) the business operations, assets or financial condition of the Collateral Manager or its ability to perform its obligations under or the validity or enforceability of this Agreement, the provisions of the Indenture applicable to it or (E) the rights or remedies of UBS under the Transaction Documents, and will not result in or require the creation or imposition of any lien on any of its property, assets or revenues pursuant to the provisions of any such mortgage, indenture, lease, contract or other agreement, instrument or undertaking the existence of which would have a material adverse effect on the business, operations, assets or financial condition of the Collateral Manager or its ability to perform its obligations under this Agreement or the rights or remedies of UBS under the Transaction Documents.

 

		
	
 
	
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(vi)There is no charge, investigation, action, suit or proceeding before or by any court pending or, to the best knowledge of the Collateral Manager, threatened that, if determined adversely to the Collateral Manager, would have a material adverse effect on (A) the Holders of the Class A Notes, (B) the performance by the Collateral Manager of its duties under, or on the validity or enforceability of, this Agreement, the provisions of the Indenture applicable to the Collateral Manager hereunder and the other Transaction Documents to which it is a party, (C) any of the Portfolio Assets, (D) the Issuer's ability to perform its obligations under the Transaction Documents or this Agreement or (E) the rights or remedies of UBS under the Transaction Documents.

(vii)The Collateral Manager is not in violation of its Constitutive Documents or in breach or violation of or in default under any contract or agreement to which it is a party or by which it or any of its property may be bound, or any applicable statute or any rule, regulation or order of any court (except, in respect of the Risk Retention Rules, other than as represented by the Collateral Manager in Section 13(a)(viii)) government agency or body having jurisdiction over the Collateral Manager or its properties, the breach or violation of which or default under which would have a material adverse effect (A) the Holders of the Class A Notes, (B) the performance by the Collateral Manager of its duties under, or on the validity or enforceability of, this Agreement, the provisions of the Indenture applicable to the Collateral Manager hereunder and the other Transaction Documents to which it is a party, (C) any of the Portfolio Assets, (D) the Issuer's ability to perform its obligations under the Transaction Documents or this Agreement or (E) the rights or remedies of UBS under the Transaction Documents.

(viii)The Collateral Manager reasonably believes, based upon due inquiry, that the transactions contemplated by this Agreement do not and/or would not reasonably be expected to violate or conflict with the Risk Retention Rules.

(ix)[reserved]

(b)The Issuer hereby represents and warrants to the Collateral Manager as follows as of the Signing Date:

(i)The Issuer has been duly incorporated and validly exists as an exempted company under the laws of the Cayman Islands and has the power to conduct its business and affairs in accordance with this Agreement and applicable law.

(ii)The Issuer has the power and authority to execute, deliver and perform its duties and obligations under this Agreement and the Indenture.  The Issuer has taken all necessary corporate action to authorize the execution, delivery and performance of this Agreement and all of the documents required to be executed by the Issuer pursuant hereto and as of the date hereof the Issuer will have taken all necessary corporate action to authorize the execution, delivery and performance of the Indenture and the other Transaction Document to which it is party and all of the documents required to be executed by the Issuer thereunder.  This Agreement has been duly authorized, executed and delivered by the Issuer and, as of the date hereof, the Indenture will be duly authorized, executed and delivered by the Issuer.  Each of this Agreement and, on the 

 

		
	
 
	
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date hereof, the Indenture, when executed and delivered by the other parties thereto, constitutes the legal, valid and binding obligation of the Issuer enforceable against the Issuer in accordance with its terms except that the enforceability thereof may be subject to (i) bankruptcy, insolvency, reorganization, moratorium, receivership, conservatorship or other similar laws now or hereafter in effect relating to creditors’ rights and (ii) general principles of equity (regardless of whether such enforcement is considered in a proceeding in equity or at law).

(iii)Neither the execution, delivery and performance of this Agreement and the Indenture, nor the consummation of the transactions contemplated by this Agreement and the Indenture (A) is prohibited by, or requires the Issuer to obtain any material consent, authorization, approval or registration under, any law, statute, rule, regulation, judgment, order, writ, injunction or decree that is binding upon the Issuer or any of its properties or assets, except where the failure to obtain such consent, authorization or approval or make such registration would not reasonably be expected to have a material adverse effect on the Issuer or on the Portfolio Assets and Eligible Investments, or (B) will violate any provision of, result in any breach, default or acceleration of any obligations under or result in the creation or imposition of any lien pursuant to (other than the lien created by the Indenture), or require any consent under, any agreement to which the Issuer is a party or by which it or any of its property is bound, except to the extent that such violation, default or breach would not reasonably be expected to have a material adverse effect on the Issuer or on the Portfolio Assets and Eligible Investments.

(iv)There are no proceedings pending, or to the best knowledge of the Issuer, threatened, against the Issuer before any federal, provincial or other governmental agency, authority, administrator or regulatory body, arbitrator, court or other tribunal, foreign or domestic, that would reasonably be expected to result in a material adverse effect on the Portfolio Assets and Eligible Investments or any action taken or to be taken by the Issuer under this Agreement.

	
14.
	
Amendment

(a)This Agreement may not be modified or amended without the prior written consent of the parties hereto and UBS, and in writing executed by the parties hereto. Failure on the part of either party or UBS to insist upon strict compliance by the other with any of the terms, covenants or conditions hereof shall not be deemed a waiver of such term, covenant or condition. 

(b)UBS shall constitute an express third party beneficiary for the purposes of this Section 14.

	
15.
	
Assignment

(a)This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors.

 

		
	
 
	
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(b)Any assignment of the Collateral Manager's obligations under this Agreement (other than to an Affiliate of the Collateral Manager including, without limitation, the Collateral Manager and any direct or indirect subsidiary of the Collateral Manager) shall require the consent of the Issuer and UBS, and, until the Full Payment Date, the Trustee (at the direction of the Majority Holders) and the Majority Holders.  UBS shall constitute an express third beneficiary for the purposes of this Section 15(b).

(c)Subject to clause (d) below, any assignment of the Issuer's rights, remedies, and obligations under this Agreement shall require the consent of the Collateral Manager and the Trustee (acting at the direction of the Majority Holders), except in the case of assignment by the Issuer to the Trustee as contemplated by the Granting Clause of the Indenture.

(d)Any assignment consented to pursuant to this Section 15 shall bind the assignee hereunder in the same manner as the assignor is bound.  Upon the execution and delivery of such a counterpart by the assignee, the assignor shall be released from further obligations pursuant to this Agreement, except with respect to its obligations arising under Sections 5, 8, 9, 11, 16, 19,  20, 21 and 24 hereof.

(e)The Collateral Manager hereby acknowledges that, pursuant to Article 15 of the Indenture, the Issuer is assigning all of its right, title and interest in, to and under this Agreement to the Trustee as representative of the Holders and the Collateral Manager agrees that all of the representations, covenants and agreements made by the Collateral Manager in this Agreement are also for the benefit of the Trustee.

	
16.
	
Records; Confidentiality

(a)The Collateral Manager shall maintain appropriate books of account and records relating to services performed hereunder, and such books of account and records shall be accessible for inspection by a representative of the Issuer, the Trustee, the Noteholders and the Independent accountants appointed by the Issuer pursuant to the Indenture at a mutually agreed time during normal business hours and upon not less than five (5) Business Days' prior notice, provided that the Collateral Manager shall not be obligated to provide access to any non-public information if the Collateral Manager in good faith determines that the disclosure of such information would violate any applicable law, regulation or contractual arrangement.  At no time will the Collateral Manager make a public announcement concerning the issuance of the Notes, the Collateral Manager's role hereunder or any other aspect of the transactions contemplated by this Agreement and the Indenture without the prior written consent of the Issuer's U.S. counsel (it being understood that general statements regarding the fact that the Collateral Manager is managing assets of the Issuer (either alone or in conjunction with assets of other issuers) that do not refer in any way to the Notes or the offering thereof shall not require such prior consent or notice).

(b)The Collateral Manager shall keep confidential any and all information that is either (i) of a type that the Collateral Manager reasonably believes would ordinarily be considered proprietary or confidential, or constitutes information pursuant to which the Collateral Manager (or the Collateral Manager on behalf of the Issuer) is bound by an obligation of confidentiality, or (ii) designated as confidential (collectively, "Confidential Information") 

 

		
	
 
	
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obtained in connection with the services rendered hereunder and shall not disclose any such Confidential Information to non-affiliated third parties (which shall in no event be deemed to include Noteholders) except (1) with the prior written consent of the Issuer (which consent shall not be unreasonably withheld), (2) as required by law (including for purposes of avoiding or reducing any withholding taxes imposed by any jurisdiction), regulation, court order or the rules or regulations of any regulatory or self-regulating organization, body or official having jurisdiction over the Issuer or the Collateral Manager, (3) to its and the Issuer's attorneys, accountants and other professional advisers, (4) to the Manager Related Parties, (5) to any bona fide buyer or potential buyer and any such Person's attorneys and professional advisers in connection with an issuance or sale or potential issuance or sale to such Person of any equity interests of, debt of, or assets owned by the Collateral Manager; provided that each such Person to whom such Confidential Information is so disclosed shall have agreed to maintain the confidentiality thereof pursuant to an agreement containing provisions substantially the same as those of this Section 16, (6) in connection with the enforcement of the Collateral Manager's rights hereunder or in any dispute or proceeding related hereto or to any of the other Transaction Documents, (7) to the Administrator, the Trustee, the Collateral Administrator or any other service provider to the Issuer, (8) to Holders and beneficial owners and potential purchasers of, or placement agent with respect to, any of the Notes or any beneficial interest therein, (9) as required to enable the Collateral Manager to perform its obligations hereunder, (10) such information as shall have been publicly available or disclosed other than in violation of this Agreement or the Indenture, (11) such information that was or is obtained by the Collateral Manager on a non-confidential basis, (12) such information that was or is obtained by the Collateral Manager from a non-affiliated third party; provided, that such non-affiliated third party is not known by the Collateral Manager to be bound by this Agreement or another confidentiality agreement with the Issuer, (13) such information as any rating agency shall reasonably request in connection with the supplying of credit estimates on any Portfolio Asset, (14) such information as may be necessary or desirable in order for the Collateral Manager to prepare, publish and distribute to any Person any information relating to the investment performance of a particular item of the Collateral (rather than the performance of the pool of Collateral as a whole and the financial conditions of the Issuer), (15) such information as may be required to be provided to any Person under the Indenture, this Agreement or any related document, (16) in connection with the establishing trading or investment accounts pursuant to Section 2(a)(i) or otherwise in connection with the acquisition, disposition or tender of, or Offer with respect to, a Portfolio Asset by the Issuer.  In no event, however, shall the Collateral Manager be required to disclose to any Person any information in violation of (A) any fiduciary duty of the Collateral Manager, (B) any requirement of law, or (C) any contractual obligation or confidentiality undertaking applicable to the Collateral Manager or any fund or account managed by the Collateral Manager.

(c)Notwithstanding anything in this Agreement or the Indenture to the contrary, (x) the Collateral Manager and any other Manager Related Party may disclose to any and all Persons, that the Collateral Manager is serving as Collateral Manager of the Issuer and (y) each party hereto (and each of their respective employees, representatives or other agents)may disclose to any and all Persons, without limitation of any kind, the U.S. tax treatment and U.S. tax structure (in each case, under applicable federal, state or local law) of the transactions contemplated by this Agreement and all materials of any kind (including opinions or other tax analyses) that are provided to them relating to such U.S. tax treatment and U.S. tax structure; 

 

		
	
 
	
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provided that with respect to this clause (y) no party hereto shall disclose any other information that is not relevant to understanding the tax treatment or tax structure of this Agreement or the transactions contemplated by this Agreement the disclosure of which is otherwise limited pursuant to this Agreement, or any other information to the extent that such disclosure would result in a violation of any federal or state securities law.

	
17.
	
Obligations of Collateral Manager

Unless otherwise specifically required by any provision of the Indenture or this Agreement or by applicable law, the Collateral Manager shall not take any action, or omit to take any action, that it knows would (a) materially and adversely affect the Issuer for purposes of Cayman Islands law, United States federal or state law or any other law known to the Collateral Manager to be applicable to the Issuer, (b) with respect to the Issuer, not be permitted under the Issuer's Constitutive Documents, (c) violate any law, rule or regulation of any governmental body or agency (other than, in each case, in respect of the Risk Retention Rules) having jurisdiction over the Issuer including, without limitation, any Cayman Islands or United States federal, state or other applicable securities law the violation of which would have a material adverse effect on the business, operations, assets or financial condition of the Issuer, or on the ability of the Collateral Manager to perform its obligations hereunder or any other Transaction Documents, (d) require registration of the Issuer or the pool of Portfolio Assets (or any portion thereof) as an "investment company" under the Investment Company Act or (e) cause the Issuer to violate the terms of the Transaction Documents including, without limitation, any representations of the Issuer given pursuant thereto on or after the date thereof provided that any law or regulation relating to the Collateral Manager's performance under this Agreement that could reasonably be expected to have a material adverse effect on (w) the Holders of the Class A Notes, (x) the Issuer or the Issuer's ability to perform its obligations under the Transaction Documents or this Agreement, (y) any of the Portfolio Assets or (z) the rights or remedies of UBS under the Transaction Documents to be "material" for the purposes of this Section 17.  The Collateral Manager covenants that it shall comply in all material respects with all laws and regulations applicable to it in connection with the performance of its duties under this Agreement and the Indenture. The Collateral Manager covenants that it shall notify the Issuer and the Valuation Agent in writing no later than 5 Business Days after the date on which Collateral Manager either (a) has actual knowledge, or (b) has reasonable belief, that it has become non-compliant with the Risk Retention Rules.

	
18.
	
Entire Agreement; Severability; Headings; Counterparts

(a)This Agreement contains the entire agreement between the parties relating to the subject matter hereof.

(b)If any term, provision, covenant or condition of this Agreement, or the application thereof to any party hereto 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 

 

		
	
 
	
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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 respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties.

(c)Descriptive headings are for convenience only and shall not control or affect the meaning or construction of any provision of this Agreement.

(d)This Agreement (and each amendment, modification and waiver in respect of this Agreement) may be executed and delivered in counterparts (including by e-mail (PDF) or facsimile transmission), each of which will be deemed an original, and all of which together constitute one and the same instrument.  Delivery of an executed counterpart signature page of this Agreement by e-mail (PDF) or facsimile transmission shall be effective as delivery of a manually executed counterpart of this Agreement.

	
19.
	
Non-Petition; Limited Recourse

(a)Notwithstanding any other provision of this Agreement, the Collateral Manager agrees not to cause the filing of a petition in bankruptcy or to institute any reorganization, arrangement, insolvency, moratorium or liquidation proceedings against the Issuer for the nonpayment of the fees or other amounts payable by the Issuer to the Collateral Manager under this Agreement until the payment in full of all Notes issued under the Indenture (and any other debt obligations of the Issuer that have been rated upon issuance by any rating agency at the request of the Issuer) and the expiration of a period equal to one year and a day or, if longer, the applicable preference period then in effect and one day, following such payment in full.  Nothing in this Section 19(a) shall preclude, or be deemed to stop, the Collateral Manager from taking any action prior to the expiration of the aforementioned period in (A) any case or proceeding voluntarily filed or commenced by the Issuer or (B) any involuntary insolvency proceeding filed or commenced by a Person other than the Collateral Manager.  This Section 19(a) shall survive the termination of this Agreement.

(b)The Collateral Manager agrees that the payment of all amounts to which it is entitled pursuant to this Agreement shall be subject to the provisions of Sections 2.7(g), 10.3 and 11.1 of the Indenture, and the Collateral Manager agrees to be bound by the provisions of Sections 2.7(g), 10.3 and 11.1 of the Indenture as if it were a party thereto.  Notwithstanding any other provision of this Agreement, all of the payment obligations of the Issuer under this Agreement are limited recourse obligations of the Issuer pursuant to Sections 2.7(g), 10.3 and 11.1 of the Indenture.  The Collateral Manager further agrees that, except as so contemplated by Section 2.7(g), 10.3 and 11.1 of the Indenture, it will not have any recourse against any Officer, director, employee, partner, member, shareholder or incorporator of the Issuer or its Affiliates, successors or assigns for the payment of any amounts payable under this Agreement.  It is understood that this Section 19(b) shall not (i) prevent recourse to the Collateral for the sums due or to become due under any security, instrument or agreement which is part of the Collateral; or (ii) constitute a waiver, release or discharge of any indebtedness or obligation evidenced by the Notes or secured by the Indenture until such Collateral has been realized and the proceeds thereof applied in accordance with the provisions of the Indenture, whereupon all obligations of and all claims against the Issuer hereunder or arising in connection therewith shall be 

 

		
	
 
	
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extinguished and shall not thereafter revive.  It is further understood that this Section 19(b) shall not limit the right of any Person to name the Issuer as a party defendant in any Proceeding or in the exercise of any other remedy under the Notes or the Indenture, 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.  The Collateral Manager consents to the assignment of this Agreement as provided in the Grant of the Indenture.  This Section 19(b) shall survive the termination of this Agreement.

	
20.
	
Notices

Any request, demand, authorization, direction, instruction, order, notice, consent, waiver or other documents provided or permitted by this Agreement to be made upon, given, delivered, e-mailed or furnished to, or filed with:

(a)the Issuer shall be sufficient for every purpose hereunder (unless otherwise herein expressly provided) if in writing and mailed, first class postage prepaid, hand delivered, sent by overnight courier service or by facsimile or other means of electronic transmission in legible form, to the Issuer addressed to it at c/o MapleFS Limited, P.O. Box 1093, Boundary Hall, Cricket Square, Grand Cayman KY1-1102, Cayman Islands, Email: cayman@maples.com, Attention: The Directors, with a copy to, BC Partners Lending Corporation, 650 Madison Avenue, 23rd Floor New York, NY 10022, Email: Notices@bcpartners.com, or at any other address previously furnished in writing to the other parties hereto by the Issuer, as the case may be, with a copy to the Collateral Manager at its address below;

(b)the Collateral Manager shall be sufficient for every purpose hereunder if in writing and mailed, first class postage prepaid, hand delivered, sent by overnight courier service or by facsimile or other means of electronic transmission in legible form, to the Collateral Manager c/o BC Partners Lending Corporation, 650 Madison Avenue, 23rd Floor New York, NY 10022, Email: Notices@bcpartners.com, with a copy to c/o MapleFS Limited, P.O. Box 1093, Boundary Hall, Cricket Square, Grand Cayman KY1-1102, Cayman Islands, Email: cayman@maples.com, Attention: The Directors, or at any other address previously furnished in writing to the parties hereto; and

(c)the Valuation Agent shall be sufficient for every purpose hereunder if in writing and mailed, first class postage prepaid, hand delivered, sent by overnight courier service or by facsimile or other means of electronic transmission in legible form, to the Valuation Agent addressed to it at such address set out in Section 14 of the Indenture, or at any other address previously furnished in writing to the parties hereto.

To the extent that any demand, notice or communication hereunder is given to the Collateral Manager by a Responsible Officer of the Issuer, such Responsible Officer shall be deemed to have the requisite power and authority to bind the Issuer with respect to such communication, and the Collateral Manager may conclusively rely upon and shall be protected in acting or refraining from acting upon any such communication.  To the extent that any demand, notice or communication hereunder is given to the Issuer by a Responsible Officer of the Collateral Manager, such Responsible Officer shall be deemed to have the requisite power and authority to bind the Collateral Manager with respect to such communication, and the Issuer may conclusively rely upon and shall be protected in acting or refraining from acting upon any such communication.

 

		
	
 
	
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21.
	
Governing Law; Jurisdiction; Waiver of Jury Trial

(a)This Agreement shall be construed in accordance with, and this Agreement and any 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.

(b)With respect to any suit, action or proceedings relating to this Agreement or any matter between the parties arising under or in connection with this Agreement ("Proceedings"), each party irrevocably:  (i) submits to the non-exclusive jurisdiction of the Supreme Court of the State of New York sitting in the Borough of Manhattan and the United States District Court for the Southern District of New York, and any appellate court from any thereof; 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 of the parties 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.  Each party irrevocably consents to the service of process in any Proceeding by the mailing or delivery of copies of such process as set forth in Section 20 hereof.

(c)EACH OF THE ISSUER AND THE COLLATERAL MANAGER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY PROCEEDINGS.  Each party hereby (i) certifies that no representative, agent or attorney of the other has represented, expressly or otherwise, that the other would not, in the event of a Proceeding, seek to enforce the foregoing waiver and (ii) acknowledges that it has been induced to enter into this Agreement by, among other things, the mutual waivers and certifications in this paragraph.

	
22.
	
Third Party Beneficiaries

Nothing in this Agreement, expressed or implied, shall give to any Person, other than the parties hereto and their successors hereunder, any benefit or any legal or equitable right, remedy or claim under this Agreement except, with respect to the Trustee and the Holders, as otherwise expressly provided in this Agreement; provided that the Valuation Agent shall be an express third party beneficiary of Sections 2(m), 2(n), 2(p), 6(f) and 17.

	
23.
	
Written Disclosure Statement

The Issuer shall provide, if reasonably available to it, and the Issuer shall use its reasonable efforts to cause each of the Holders (and holders of beneficial interests in the Notes) and the Trustee to provide, to the Collateral Manager all information reasonably requested by the Collateral Manager in connection with regulatory matters, including without limitation any information that is necessary or advisable in order for the Collateral Manager (or its parent or Affiliates) to complete forms required by the Securities and Exchange Commission, or to comply with any regulations of the Commodity Futures Trading Commission or any requirement of the Commodity Exchange Act or Dodd-Frank Wall Street Reform and Consumer Protection Act, in each case, as amended from time to time, and any other laws or regulations applicable to the Collateral Manager from time to time.  

 

		
	
 
	
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24.
	
Conflict with the Indenture

In the event that this Agreement requires any action to be taken with respect to any matter and the Indenture requires that a different action be taken with respect to such matter, and such actions are mutually exclusive, the provisions of the Indenture (as in effect on the date hereof or as amended or supplemented, with the consent of the Collateral Manager if such consent is required by Section 14) in respect thereof shall control.

 

[Signature Pages Follow.]

 

 

		
	
 
	
Page 30

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Collateral Management Agreement to be executed effective as of the day and year first written above.

 

	
GREAT LAKES BCPL FUNDING LTD.,

	
as Issuer

	
 
	
 
	
 

	
By:
	
 
	
/s/ Pamela Sen-Gupta

	
Name:
	
 
	
Pamela Sen-Gupta

	
Title:
	
 
	
Director

 

 

 

Collateral Management Agreement

 

 

	
BC PARTNERS LENDING CORPORATION,

	
as Collateral Manager

	
 
	
 
	
 

	
By:
	
 
	
/s/ Edward Gilpin

	
Name:
	
 
	
Edward Gilpin

	
Title:
	
 
	
Chief Financial Officer

 

Collateral Management Agreement

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