Document:

sixthamendmenttocreditag

                                                             EXECUTION VERSION                       SIXTH AMENDMENT TO CREDIT AGREEMENT                                                     This Sixth Amendment to Credit Agreement (this “Agreement”), dated as of November 4, 2020  (the “Effective Date”), is entered into by and among NBL SPV I, LLC, a Delaware limited liability  company (“Borrower”); SMALL BUSINESS LENDING, LLC, a New York limited liability company, as  servicer (“Servicer”); U.S. BANK NATIONAL ASSOCIATION, as backup servicer (“Backup  Servicer”); the LENDERS party hereto (“Lenders”); and CAPITAL ONE, N.A., as administrative agent  for the Secured Parties (in such capacity, “Administrative Agent”).                                         RECITALS          A.    Borrower, Servicer, Backup Servicer, Lenders and Administrative Agent are parties to  that certain Revolving Credit and Security Agreement dated as of July 31, 2018 (as the same may be  amended, amended and restated, supplemented, or otherwise modified from time to time, the “Credit  Agreement”). Capitalized terms used in this Agreement have the meanings given to them in the Credit  Agreement, unless otherwise specified; and          B.    Borrower has requested that Administrative Agent and Lenders agree to make certain  amendments to the Credit Agreement on the terms and subject to the conditions set forth in this  Agreement, and Administrative Agent and Lenders have agreed to do so, subject to and upon the terms  and conditions set forth herein.           NOW, THEREFORE, in consideration of the foregoing and of other good and valuable  consideration, the receipt and sufficiency of which are hereby acknowledged, Administrative Agent,  Lenders, Borrower, Servicer, and Backup Servicer agree as follows:          1.    Amendment to Credit Agreement.  As of the Effective Date, the Credit Agreement  (including Schedule 8 thereto) is hereby amended to delete the stricken text (indicated textually in the  same manner as the following example:  stricken text) and to add the double-underlined text (indicated  textually in the same manner as the following example: double-underlined text) as set forth in the pages  of the Credit Agreement attached hereto as Exhibit A hereto (the Credit Agreement as amended hereby,  the “Amended Credit Agreement”).          2.     No Other Changes. Except as explicitly amended by this Agreement, all of the terms and  conditions of the Facility Documents shall remain in full force and effect and shall apply to any advance  thereunder.          3.    Conditions Precedent.  This Agreement shall be effective on the Effective Date as set  forth herein upon satisfaction of the conditions set forth below, including the receipt by Administrative  Agent of an executed original of this Agreement, together with execution and delivery and/or satisfaction  of each of the following, each in substance and form acceptable to Administrative Agent:                (a)    the Acknowledgment and Agreement of Guarantors, set forth at the end of this  Agreement, shall have been duly executed by each Guarantor;                (b)    a certificate of a Responsible Officer of the Borrower certifying (i) as to its  Constituent Documents, (ii) as to its resolutions or other action of its board of directors or members  approving this Agreement and the transactions contemplated thereby, (iii) that its representations and  warranties set forth in the Facility Documents (as defined in the Amended Credit Agreement) to which it    110936191  

 

is a party are true and correct in all material respects as of the Effective Date (except to the extent such  representations and warranties expressly relate to any earlier date, in which case such representations and  warranties shall be true and correct in all material respects as of such earlier date), (iv) no Default or  Event of Default has occurred and is continuing, and (v) as to the incumbency and specimen signature of  each of its Responsible Officers authorized to execute this Agreement;                (c)    a certificate of a Responsible Officer of each of the Guarantors, the Servicer and  the Originator, certifying (i) as to its Constituent Documents, (ii) as to its resolutions or other action of its  board of directors, partners or members approving this Agreement and the transactions contemplated  thereby, (iii) that its representations and warranties set forth in the Facility Documents (as defined in the  Amended Credit Agreement) to which it is a party are true and correct in all material respects as of the  Effective Date (except to the extent such representations and warranties expressly relate to any earlier  date, in which case such representations and warranties shall be true and correct in all material respects as  of such earlier date), (iv) no Default, Event of Default, Potential Servicer Termination Event, Servicer  Termination Event, or default under the Purchase and Contribution Agreement has occurred and is  continuing, and (v) as to the incumbency and specimen signature of each of its Responsible Officers  authorized to execute this Agreement;                (d)    a certificate of good standing or qualification, as the case may be, of the  Borrower dated within thirty (30) days of the date of this Agreement, to do business, certified by the  Secretary of State or other Governmental Authority of the Borrower’s jurisdiction of organization;                 (e)    a written opinion or opinions of Borrower’s independent counsel addressed to  Administrative Agent and the Lenders and opinions of such other counsel as Administrative Agent deems  reasonably necessary;                (f)    payment by Borrower of all outstanding fees and expenses of Administrative  Agent; and                (g)    such other items as Administrative Agent or any Lender may require.         4.     Representations and Warranties.  Each of Borrower and Servicer hereby represents and  warrants to Administrative Agent and Lender as follows:                (a)    Each of Borrower and Servicer has all requisite power and authority to execute  this Agreement and to perform all of its obligations hereunder, and this Agreement has been duly  executed and delivered by each of Borrower and Servicer and constitutes the legal, valid and binding  obligation of each of Borrower and Servicer, enforceable in accordance with its terms.                (b)    The execution, delivery and performance by each of Borrower and Servicer of  this Agreement have been duly authorized by all necessary limited liability company action and do not:  (i) require any authorization, consent or approval by any governmental department, commission, board,  bureau, agency or instrumentality, domestic or foreign; (ii) violate any provision of any law, rule or  regulation or of any order, writ, injunction or decree presently in effect, having applicability to Borrower  or Servicer, or the certificate of formation or operating or limited liability company agreement of  Borrower or Servicer; or (iii) result in a breach of or constitute a default under any indenture or loan or  credit agreement or any other agreement, lease or instrument to which Borrower or Servicer is a party or  by which it or its properties may be bound or affected.                                              -2-  110936191  

 

             (c)    All of the representations and warranties contained in Article IV of the Credit  Agreement are correct on and as of the date hereof as though made on and as of such date.                (d)    No Default or Event of Default exists.                (e)    Each of the above representations and warranties (other than the representations  and warranties in clauses (c) and (d) above) are hereby made as to the Guarantors with respect to the  Acknowledgment and Agreement of Guarantors, set forth at the end of this Agreement.          5.    No Waiver.  The execution of this Agreement and any documents related hereto and the  acceptance of all other agreements and instruments related hereto shall not be deemed to be a waiver of  any Default or Event of Default under the Credit Agreement or a waiver of any breach, default or event of  default under any Facility Document or other document held by Administrative Agent, whether or not  known to Administrative Agent or any Lender and whether or not existing on the date of this Agreement.          6.    Release.  Borrower, Servicer, and, by signing the Acknowledgement and Agreement of  Guarantors set forth below, each Guarantor, each hereby absolutely and unconditionally releases and  forever discharges the Administrative Agent, the Lenders and any and all participants, parent  corporations, subsidiary corporations, affiliated corporations, insurers, indemnitors, successors and  assigns thereof and any of their respective Affiliates, together with all of the present and former directors,  officers, agents and employees of any of the foregoing, from any and all claims, demands or causes of  action of any kind, nature or description, whether arising in law or equity or upon contract or tort or under  any state or federal law or otherwise, which the Borrower, Servicer, or any Guarantor, has had, now has  or has made claim to have against any such Person for or by reason of any act, omission, matter, cause or  thing whatsoever arising from the beginning of time to and including the date of this Agreement, whether  such claims, demands and causes of action are matured or unmatured or known or unknown or otherwise.         7.     Costs and Expenses. Borrower hereby reaffirms its obligations under Section 15.04 of the  Credit Agreement with respect to the payment or reimbursement of costs and expenses incurred by  Administrative Agent in connection with the Facility Documents, including without limitation the  reasonable fees and disbursements of legal counsel as set forth therein. Without limiting the generality of  the foregoing, Borrower specifically agrees to pay all reasonable fees and disbursements of counsel to  Administrative Agent for the services performed by such counsel in connection with the preparation of  this Agreement and the documents and instruments incidental hereto.  Borrower hereby agrees that  Administrative Agent may, at any time or from time to time in its sole discretion and without further  authorization by Borrower, make a loan to Borrower under the Credit Agreement, or apply the proceeds  of any loan, for the purpose of paying any such fees, disbursements, costs and expenses.          8.    Continuing Effect of Credit Agreement. Except as expressly amended and modified  hereby, the provisions of the Credit Agreement and the Liens granted thereunder, are and shall remain in  full force and effect, and are hereby ratified and confirmed by Borrower.  Borrower acknowledges and  agrees that the security interests and liens granted by Borrower to Administrative Agent under the Facility  Documents shall remain in place, unimpaired by the transactions contemplated by this Agreement, and  Administrative Agent’s priority with respect thereto shall not be affected hereby or thereby.          9.    Miscellaneous.  This Agreement and the Acknowledgment and Agreement of Guarantors  are Facility Documents.  This Agreement and the Acknowledgment and Agreement of Guarantors may be  executed in any number of counterparts, each of which when so executed and delivered shall be deemed  an original and all of which counterparts, taken together, shall constitute one and the same instrument.                                               -3-  110936191  

 

This Agreement and the Acknowledgment and Agreement of Guarantors shall be governed by, and  construed and enforced in accordance with, the laws of the State of New York, without regard to  principles of conflicts of law (other than Section 5-1401 of the New York General Obligations Law).         10.    References.  All references in the Credit Agreement to “this Agreement” shall be deemed  to refer to the Credit Agreement as amended hereby; and any and all references in the Facility Documents  to the Credit Agreement shall be deemed to refer to the Credit Agreement as amended hereby.                    [Remainder of page intentionally blank; signature page follows.]                                                                                                                                        -4-  110936191  

 

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly  executed as of the date first written above.                                                   NBL SPV I, LLC,                                           as Borrower                                                                                     By: /s/ Barry Sloane                                                         Name: Barry Sloane                                             Title:   Chief Executive Officer                                               SMALL BUSINESS LENDING, LLC,                                           as Servicer                                                                                                                                 By: /s/ Barry Sloane                                             Name: Barry Sloane                                             Title:   Chief Executive Officer                                  [Signature Page – Sixth Amendment to Credit Agreement] 

 

                                  U.S. BANK NATIONAL ASSOCIATION,                 as Backup Servicer                                                   By:    /s/ John L. Linssen                       Name:  John L Linssen                       Title:    Vice President                            [Signature Page – Sixth Amendment to Credit Agreement] 

 

                                  CAPITAL ONE, N.A.,                 as Administrative Agent                                                   By:    /s/ Brian Talty                       Name:  Brian Talty                         Title:    Senior Vice President                                                   CAPITAL ONE, N.A.,                 as Lender                                                   By:    /s/ Brian Talty                  Name: Brian Talty                       Title:   Senior Vice President                             [Signature Page – Sixth Amendment to Credit Agreement] 

 

                 ACKNOWLEDGMENT AND AGREEMENT OF GUARANTORS                                                                                                    The undersigned, each a Guarantor of the Obligations of NBL SPV I, LLC, a Delaware limited  liability company (“Borrower”) to CAPITAL ONE, N.A. as administrative agent for the benefit of the  Lenders (“Administrative Agent”) and to the Lenders, pursuant to a (i) Guaranty of Payment and  Performance by Newtek Business Services Corp., a Maryland corporation, dated as of July 31, 2018, (ii)  Guaranty of Payment and Performance by Newtek Business Services Holdco 6, Inc., a Florida  corporation, dated as of July 31, 2018, and (iii) Guaranty of Payment and Performance by Newtek  Business Lending, LLC, a Florida limited liability company, dated as of July 31, 2018 (as each may be  amended, amended and restated, supplemented, or otherwise modified from time-to-time, a “Guaranty”),  hereby: (i) acknowledges receipt of the foregoing Sixth Amendment to Credit Agreement (the  “Agreement”); (ii) consents and agrees to the terms (including without limitation the release set forth in  Section 7 of the Agreement) and execution and performance thereof; (iii) reaffirms all obligations to the  Administrative Agent and the Lenders pursuant to the terms of its respective Guaranty, all of which  remain in full force and effect; (iv) acknowledges that each representation and warranty set forth in  Sections 5(a) and 5(b) of the Agreement relating to such Guarantor is complete, true and correct as of the  date hereof; (v) reaffirms and acknowledges that all Liens granted by the Guarantors remain in full force  and effect and continue to secure all of the Obligations; and (vi) acknowledges that Administrative Agent  may amend, restate, extend, renew or otherwise modify the Credit Agreement and any indebtedness or  agreement of Borrower, or enter into any agreement or extend additional or other credit accommodations,  without notifying or obtaining the consent of the undersigned and without impairing the liability of the  undersigned under its Guaranty for all of the present and future indebtedness and other obligations to the  Administrative Agent.    Dated: As of November 4, 2020                                          NEWTEK BUSINESS SERVICES CORP.                                                                                                                              By:    /s/ Barry Sloane                                                 Name:  Barry Sloane                                                 Title:    Chief Executive Officer                                                                                                                              NEWTEK BUSINESS SERVICES HOLDCO 6, INC.                                                                                                                              By:    /s/ Barry Sloane                                                 Name:  Barry Sloane                                                 Title:  Chief Executive Officer                                                                                                                              NEWTEK BUSINESS LENDING, LLC                                                                                                                              By:    /s/ Barry Sloane                                                 Name:  Barry Sloane                                                 Title:  Chief Executive Officer      110936191  

 

                       Exhibit A to Sixth Amendment to Credit Agreement                                                                               Amended Credit Agreement                                                                                    [See attached.]    110936191  

 

                                  EXHIBIT A                             AMENDED AND RESTATED                  REVOLVING CREDIT AND SECURITY AGREEMENT                    REVOLVING CREDIT AND SECURITY AGREEMENT                                      among                                  NBL SPV I, LLC,                                   as Borrower,                          SMALL BUSINESS LENDING, LLC,                                   as Servicer,                         U.S. BANK NATIONAL ASSOCIATION,                                as Backup Servicer,                 THE LENDERS FROM TIME TO TIME PARTIES HERETO,                                       and                                CAPITAL ONE, N.A.,                      as Administrative Agent and as Lead Arranger,                               Dated as of July 31, 2018   34881204v6110062879

 

                            TABLE OF CONTENTS                                                                          Page  ARTICLE I      DEFINITIONS; RULES OF CONSTRUCTION; COMPUTATIONS             1       Section 1.01.  Definitions.                                           1       Section 1.02.  Rules of Construction                                 39       Section 1.03.  Computation of Time Periods                           40       Section 1.04.  Collateral Value Calculation Procedures               40       Section 1.05.  Agreement to be Construed as a Loan                   41 ARTICLE II     ADVANCES                                                    41       Section 2.01.  Revolving Credit Facility                             41       Section 2.02.  Making of the Advances                                41       Section 2.03.  Evidence of Indebtedness                              42       Section 2.04.  Payment of Principal and Interest                     43       Section 2.05.  Prepayment of Advances.                               44       Section 2.06.  Changes of Commitments.                               45       Section 2.07.  Maximum Lawful Rate                                   46       Section 2.08.  Several Obligations                                   46       Section 2.09.  Increased Costs                                       46       Section 2.10.  Increase in Facility Amount                           48       Section 2.11.  Illegality; Inability to Determine Rates              49       Section 2.12.  Rescission or Return of Payment                       49       Section 2.13.  Past Due and Post Default Interest                    49       Section 2.14.  Payments Generally                                    50       Section 2.15.  Interest Elections                                    50       Section 2.16.  Compensation; Breakage Payments                       51       Section 2.17.  Defaulting Lenders                                    51 ARTICLE III    CONDITIONS PRECEDENT                                        53       Section 3.01.  Conditions Precedent to Initial Advances              53       Section 3.02.  Conditions Precedent to Each Borrowing                56 ARTICLE IV     REPRESENTATIONS AND WARRANTIES                              57       Section 4.01.  Representations and Warranties of the Borrower        57       Section 4.02.  Representations and Warranties of the Servicer        63 ARTICLE V      COVENANTS                                                   65       Section 5.01.  Affirmative Covenants of the Borrower                 65       Section 5.02.  Negative Covenants of the Borrower                    73       Section 5.03.  Affirmative Covenants of the Servicer                 76       Section 5.04.  Negative Covenants of the Servicer                    78       Section 5.05.  Certain Undertakings Relating to Separateness         79 ARTICLE VI     EVENTS OF DEFAULT                                           80       Section 6.01.  Events of Default                                     81       Section 6.02.  Remedies upon an Event of Default                     84       Section 6.03.  Servicer Termination Events                           86       Section 6.04.  Remedies upon a Servicer Termination Event.           87   34881204v6110062879                 -  i-

 

                            TABLE OF CONTENTS                                   (continued)                                                                         Page  ARTICLE VII    PLEDGE OF COLLATERAL; RIGHTS OF THE ADMINISTRATIVE                AGENT                                                       87       Section 7.01.  Grant of Security                                     87       Section 7.02.  Release of Security Interest                          88       Section 7.03.  Rights and Remedies                                   89       Section 7.04.  Remedies Cumulative                                   89       Section 7.05.  Loan Documents                                        90       Section 7.06.  Borrower Remains Liable                               90       Section 7.07.  Protection of Collateral                              91 ARTICLE VIII   ACCOUNTS, ACCOUNTINGS AND RELEASES                          92       Section 8.01.  Collection of Money                                   92       Section 8.02.  Collection Account                                    92       Section 8.03.  Reserved.                                             92       Section 8.04.  Reserved.                                             92       Section 8.05.  Delivery of Report, Notices, Etc                      92       Section 8.06.  Accountings.                                          93       Section 8.07.  Release of Collateral                                 94       Section 8.08.  Reports by Independent Accountants                    95       Section 8.09.  Collection Account Details                            95       Section 8.10.  Power of Attorney                                     95 ARTICLE IX     APPLICATION OF MONIES                                       96       Section 9.01.  Disbursements of Monies from Collection Account       96 ARTICLE X      SALE OF LOANS; PURCHASE OF ADDITIONAL LOANS                 98       Section 10.01. Sales of Loans.                                       98       Section 10.02. Purchase of Additional Loans                          99       Section 10.03. Substitution and Transfer of Loans                    99       Section 10.04. Conditions Applicable to All Sale, Substitution and Purchase                      Transactions                                         101 ARTICLE XI     ADMINISTRATION AND SERVICING OF CONTRACTS                  101       Section 11.01. Designation of the Servicer.                         101       Section 11.02. Duties.                                              102       Section 11.03. Liability of a Successor Servicer; Indemnification of the Servicer                      Persons.                                             104       Section 11.04. Authorization of the Servicer.                       104       Section 11.05. Realization Upon Defaulted Loans.                    105       Section 11.06. Servicing Compensation; Payment of Certain Expenses by Borrower 108       Section 11.07. The Servicer Not to Resign; Assignment               108       Section 11.08. Appointment of Successor Servicer                    108 ARTICLE XII    THE ADMINISTRATIVE AGENT                                   111       Section 12.01. Authorization and Action.                            111       Section 12.02. Delegation of Duties                                 112       Section 12.03. Administrative Agent’s Reliance, Etc                 113   34881204v6110062879                 - ii-

 

                            TABLE OF CONTENTS                                   (continued)                                                                         Page        Section 12.04. Indemnification                                      116       Section 12.05. Successor Administrative Agent                       117       Section 12.06. Administrative Agent’s Capacity as a Lender          117       Section 12.07. Proceedings                                          117 ARTICLE XIII   THE CUSTODIAN                                              118       Section 13.01. Custodial Agreement.                                 118       Section 13.02. Duties of Custodian.                                 119       Section 13.03. Custodian Removal                                    120       Section 13.04. Access to Certain Documentation and Information Regarding the                      Collateral; Audits.                                  121 ARTICLE XIV    THE BACKUP SERVICER                                        121       Section 14.01. Designation of the Backup Servicer                   121       Section 14.02. Duties of the Backup Servicer.                       121       Section 14.03. Fees of Backup Servicer                              122       Section 14.04. Assumption of Servicing Duties                       123       Section 14.05. Indemnity                                            123       Section 14.06. Additional Provisions Applicable to Backup Servicer  123       Section 14.07. Resignation of the Backup Servicer                   124       Section 14.08. Limitation of Liability of the Backup Servicer       124 ARTICLE XV     MISCELLANEOUS                                              125       Section 15.01. No Waiver; Modifications in Writing                  125       Section 15.02. Notices, Etc                                         125       Section 15.03. Taxes                                                127       Section 15.04. Costs and Expenses; Indemnification                  130       Section 15.05. Execution in Counterparts                            133       Section 15.06. Assignability                                        133       Section 15.07. Governing Law                                        138       Section 15.08. Severability of Provisions                           138       Section 15.09. Confidentiality                                      138       Section 15.10. Merger                                               139       Section 15.11. Survival                                             139       Section 15.12. Submission to Jurisdiction; Waivers; Service of Process; Etc 139       Section 15.13. Waiver of Jury Trial                                 139       Section 15.14. [Reserved].                                          139       Section 15.15. Waiver of Setoff                                     140       Section 15.16. PATRIOT Act Notice                                   140       Section 15.17. Legal Holidays                                       140       Section 15.18. Non-Petition                                         140       Section 15.19. No Fiduciary Duty                                    140       Section 15.20. Sharing of Payments by Lenders                       141    34881204v6110062879                 -iii-

 

                                 SCHEDULES  Schedule 1  Initial Commitments and Percentages Schedule 2  Forms of Monthly Report Schedule 3  Initial Eligible Loans Schedule 4  Industry Groups Schedule 5  Notice Information Schedule 6  Collection Account Details Schedule 7  Scope of Agreed Upon Procedures Schedule 8  Credit and Collection Policy Schedule 9  Approved Hospitality Flags Schedule 10 Review Procedures                                    EXHIBITS  Exhibit A   Form of Notice of Borrowing (with attached form of Borrowing Base Calculation) Exhibit B   Form of Notice of Prepayment Exhibit C   Form of Assignment and Acceptance Exhibit D   Form of Facility Amount Increase Exhibit E   Form of Release of Interest in Loan Documents Exhibit F-1 Form of Assignment of Mortgage Exhibit F-2 Form of Assignment of Note Exhibit G   Form of Interest Election Request Exhibit H   Form of Closing Certificate Exhibit I   Form of U.S. Tax Compliance Certificate Exhibit J   Form of Compliance Certificate Exhibit K   Intentionally Omitted Exhibit L   Form of Custodial File Document Receipt Certificate Exhibit M   Form of Account Control Agreement                                        -  i- 34881204v6 110062879

 

                REVOLVING CREDIT AND SECURITY AGREEMENT        REVOLVING CREDIT AND SECURITY AGREEMENT dated as of July 31, 2018 among NBL SPV I, LLC, a Delaware limited liability company, as borrower (together with its permitted successors and  assigns,  the  “Borrower”);  SMALL  BUSINESS  LENDING,  LLC,  a  New  York  limited  liability company, as the servicer (together with its permitted successors and assigns, the “Servicer”); U.S. BANK NATIONAL  ASSOCIATION,  as  backup  servicer  (in  such  capacity,  together  with  its  successors  and assigns, the “Backup Servicer”); the Lenders from time to time party hereto; and CAPITAL ONE, N.A., as administrative agent for the Secured Parties (as hereinafter defined) (in such capacity, together with its successors and assigns, the “Administrative Agent”) and as Lead Arranger.                                    RECITALS:        The Borrower desires that the Lenders make advances on a revolving basis to the Borrower on the terms and subject to the conditions set forth in this Agreement; and        Each Lender is willing to make such advances to the Borrower on the terms and subject to the conditions set forth in this Agreement.        In consideration of the premises and of the mutual covenants herein contained, the parties hereto agree as follows:                                    ARTICLE I             DEFINITIONS; RULES OF CONSTRUCTION; COMPUTATIONS        Section 1.01. Definitions.        As used in this Agreement, the following terms shall have the meanings indicated:        “Account  Bank”  means  (i)  Capital  One,  N.A.  or  (ii)  another  Qualified  Institution  reasonably acceptable to the Administrative Agent.        “Account Control Agreement” means an agreement in substantially the form of Exhibit M.        “Adjusted Eurodollar Rate” means, for any day during which LIBOR Advances are outstanding, an interest rate per annum equal to a fraction, expressed as a percentage, (i) the numerator of which is equal to the  LIBOR  Rate  for such day and (ii) the denominator of which is equal to 100% minus the Eurodollar Reserve Percentage.        “Adjusted Net Investment Income” means, with reference to any period in respect of the Parent: (i) net investment income (or net investment loss), plus (ii) net realized gains recognized from the sale of guaranteed portions of SBA 7(a) loan investments, less (iii) realized losses on non-affiliate investments, plus or minus (iv) net loss on lease adjustment, plus (v) the net realized gains on controlled investments, plus  or  minus  (vi)  the  change  in  fair  value  of  contingent  consideration  liabilities,  plus  (vii)  loss  on extinguishment of debt.        “Administrative  Agent”  has  the  meaning  assigned  to  such  term  in  the  introduction  to  this Agreement.        “Administrative Agent Fee Letter” means that certain fee letter, dated as of the date hereof, by and between the Administrative Agent and the Borrower.   34881204v6110062879

 

      “Administrative  Expenses”  means  the  fees  and  expenses  (including  indemnities)  and  other amounts of the Borrower due or accrued with respect to any Payment Date and payable, on a pro rata basis, to:              (a)   the Independent Accountants, agents and counsel of the Borrower for fees and       expenses related to the Collateral and the Facility Documents; and              (b)   any  other  Person  (other  than  the  Lenders)  in  respect  of  any  other  fees  or       expenses  permitted  under  or  incurred  pursuant  to  the  Facility  Documents  and  other  amounts       payable by the Borrower under any Facility Document;        provided that, for the avoidance of doubt, amounts that are expressly payable to any Person under       the Priority of Payments in respect of an amount that is stated to be payable as an amount other       than  as  Administrative  Expenses  (including,  without  limitation,  interest  and  principal,  other       amounts owing in respect of the Advances and the Commitments and servicing fees) shall not       constitute Administrative Expenses.        “Administrative  Questionnaire”  means  an  Administrative  Questionnaire  in  a  form  supplied  by the Administrative Agent.        “Advance Rate” means 80%; provided, that, solely during the Exclusion Period, the “Advance Rate” applicable solely to the Mohawk Loan shall be: (a) if the relevant Obligors of the Mohawk Loan have  made  all  payments  of  accrued  and  owing  interest  when  due,  sixty  percent  (60.0%);  (b)  if  the relevant Obligors of the Mohawk Loan have failed to make any payment of accrued and owing interest when due, zero percent (0.0%); and (c) if at any time during the Exclusion Period the relevant Obligors of the Mohawk Loan  have made all payments of accrued and owing principal and interest for three (3) consecutive months, the Advance Rate applicable to the Mohawk Loan shall be eighty percent (80.0%) for  so  long  as  (i)  the  Mohawk  Loan  is  otherwise  deemed  an  Eligible  Loan  at  such  time  and  (ii)  the relevant Obligors continue to make all payments of accrued and owing principal and interest when due.        “Advances” has the meaning assigned to such term in Section 2.01.        “Affected  Person”  means  (i)  each  Lender  and  each  of  its  Affiliates  and  (ii)  any  assignee  or participant of any Lender.        “Affiliate” means, in respect of a referenced Person, another Person Controlling, Controlled by or under common Control with such referenced Person; provided that a Person shall not be deemed to be an  “Affiliate”  of  an  Obligor  solely  because  it  is  under  the  common  ownership  or  control  of the  same financial  sponsor  or  affiliate  thereof  as  such  Obligor  (except  if  any  such  Person  or  Obligor  provides collateral under, guarantees or otherwise supports the obligations of the other such Person or Obligor).        “Agent’s  Account”  means  Capital  One,  N.A.,  ABA  #065000090,  Account:  7057502962, Attention: Structured Products Loan Collections, Reference: NBL SPV I, LLC.        “Aggregate Principal Balance” means, when used with respect to all or a portion of the Eligible Loans, the sum of the outstanding Principal Balances of all or of such portion of such Eligible Loans.        “Agreement” means this Revolving Credit and Security Agreement.        “Alternative Interest  Rate  Election  Event”  has  the  meaning  assigned  to  such  term  in  Section 2.11(d).                                       -  2- 34881204v6 110062879

 

      “Alternative Rate” means an interest rate per annum equal to (i) if a Eurodollar Disruption Event has  occurred  and  is  continuing  or  an  Event  of  Default  has  occurred  and  is  continuing  (and  has  not otherwise been waived by the Lenders pursuant to the terms hereof), the Base Rate, or (ii) in all other cases, the Adjusted Eurodollar Rate.         “Applicable  Law”  means  any  Law of  any  Governmental Authority,  including  all  Federal  and state banking or securities laws, to which the Person in question is subject or by which it or any of its assets or properties are bound.        “Applicable  Margin”  means  with  respect  to  LIBOR  Advances,  2.75%  per  annum,  and  with respect to Base Rate Advances, 0.00% per annum.        “Appraised  Value”  means  the  “as  is”  value  of  the  Project  Property  (or,  with  respect  to Renovation  Loans  and  Construction  Loans,  the  “as  completed”  value),  in  each  case  as  determined  in accordance with the requirements and standards of the SBA 504 Loan Program.        “Approved  Hospitality  Property”  means  a  hotel  property  that  is  (i)  operated  under  one  of  the hotel brands set forth on Schedule 9 attached hereto; (ii) has hotel rooms only in interior corridors; and (iii) that is less than 25 years old as of any applicable date of determination.        “Asset Coverage Ratio” means, on any Determination Date, for Parent, the ratio which the value of  total  assets,  less  all  liabilities  and  indebtedness  not  represented  by  Senior  Securities,  bears  to  the aggregate  amount  of  Senior  Securities  representing  indebtedness  of  the  Parent  (all  as  determined pursuant to the Investment Company Act and any orders of the SEC issued to the Borrower thereunder).        “Asset Coverage Ratio Test” means a test that will be satisfied on any date of determination if the Asset Coverage Ratio is one hundred fifty percent (150%) or greater.        “Asset Schedule and Exception Report” means, with respect to any Loan File, a list attached to a Custodial File Document Receipt Certificate of all the related Collateral Loans and the documents being held by the Custodian in respect thereof, together with a list of codes identifying all Exceptions related thereto.  Each Asset Schedule and Exception Report shall set forth (a) the Collateral Loans subject to the Lien of the Administrative Agent for the benefit of the Secured Parties on any applicable Business Day, as well as the other Collateral Loans held by the Custodian pursuant to the Custodial Agreement, and (b) all Exceptions with respect thereto, with any updates thereto from the time last delivered.        “Assignment and Acceptance” means an Assignment and Acceptance in substantially the form of Exhibit  C,  entered  into  by  a  Lender,  an  assignee,  the  Administrative  Agent  and,  if  applicable,  the Borrower.        “Assignment of Mortgage” means, with respect to a Collateral Loan, the executed instrument of assignment of the related Mortgage in recordable form and all other documents securing such Loan in substantially the form of Exhibit F-1 and that is in a form sufficient under the laws of the jurisdiction in which the Project Property which is the subject of such Mortgage is located to permit the assignee to exercise  all  rights  granted  by  the seller under such Mortgage and such other documents and all rights available  under  applicable  law  to  the  obligee  under  such  Loan  and  which  may  also,  to  the  extent permitted by the laws of the state in which the Project Property is located, be a blanket instrument of assignment covering other Mortgages; provided, however, that the Custodian shall have no obligation to determine whether any such assignment is in recordable form.                                        -  3- 34881204v6 110062879

 

      “Assignment of Note” means each allonge or any other instrument of transfer assigning a Loan Note issued by an Obligor substantially in the form of Exhibit F-2.        “Availability” means the leastlesser of:              (a) (a) the  Facility  Amount  at  such  time minus  the  Net  Aggregate  Exposure       Amount at such time; and              (b) (b) (i)  the product of (x) the Borrowing Base times (y) the Advance Rate,       minus  (ii)  the  product  of  the  (x)  Net  Aggregate  Exposure  Amount  times  (y)  the       difference  between  (1)  100% minus  (2)  the  Advance  Rate, minus  (iii)  any  applicable       Reserves.        “Availability Test” means a test that will be satisfied at any time if (a) the aggregate outstanding principal balance of the Advances at such time is less than or equal to (b) the Availability at such time.        “Backup Servicer” means U.S. Bank National Association, and any successor thereto appointed under this Agreement.        “Backup Servicer Fee Letter” means the U.S. Bank National Association fee letter, dated as of July 13, 2018, setting forth the fees payable by the Borrower to the Backup Servicer in connection with the transactions contemplated by this Agreement.        “Backup Servicer Indemnified Amounts” has the meaning set forth in Section 14.05.        “Bail-In  Action” means  the  exercise  of  any  Write-Down  and  Conversion  Powers  by  the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.        “Bail-In Legislation” means, with respect to any EEA Member Country implementing Article 55 of  Directive  2014/59/EU  of  the  European  Parliament  and  of  the  Council  of  the  European  Union,  the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.        “Bankruptcy Code” means the United States Bankruptcy Code, as amended.        “Base Rate” means, on any date, a fluctuating interest rate per annum equal to the highest of (a) the  Prime Rate, (b) the Federal Funds Rate plus 0.50%, and (c) other than as a result of a Eurodollar Disruption Event, the LIBOR Rate plus 1.0%.  The Base Rate is a reference rate and does not necessarily represent the lowest or best rate actually charged to any customer of the Administrative Agent or any Lender.  Interest calculated pursuant to clauses (a) and (b) above will be determined based on a year of 365 days or 366 days, as applicable, and actual days elapsed.  Interest calculated pursuant to clause (c) above will be determined based on a year of 360 days and actual days elapsed.        “Base Rate Advance” means an Advance bearing Interest at the Base Rate.  For the avoidance of doubt, a Borrowing bearing Interest at the Base Rate pursuant to clause (c) of the definition thereof shall constitute a Base Rate Advance until such Borrowing is converted to a LIBOR Advance at the option of the Borrower pursuant to Section 2.15 hereof.        “Beneficial  Ownership  Certification”  means  a  certification  regarding  beneficial  ownership required by the Beneficial Ownership Regulation.                                       -  4- 34881204v6 110062879

 

      “Beneficial Ownership Regulation” has the meaning set forth in Section 8.        “BHC  Act  Affiliate”  of  a  party  means  an “affiliate”  (as  such  term  is  defined  under,  and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.        “Borrower” has the meaning assigned to such term in the introduction to this Agreement.        “Borrower Account” means that certain deposit account designated in writing from time to time by the Borrower to the Administrative Agent in a Notice of Borrowing as the deposit account into which the proceeds of each Borrowing are to be deposited.        “Borrowing” has the meaning assigned to such term in Section 2.01.        “Borrowing Base” means, at any time, (a) the Aggregate Principal Balance; minus (b) any Excess Concentration Amount; (c) any applicable Reserves; minus (cd) the aggregate net amount payable by the Borrower (determined as of any time based on the termination value thereof), if any, under any interest rate swap, exchange, cap, collar, floor, forward, future or option agreement, or any other similar interest rate hedging arrangement with respect to Fixed Rate Loans.  For the avoidance of doubt, the net amount owed  to  the  Borrower  under  any  interest  rate  hedges  shall  be  zero  for  purposes  of  determining  the Borrowing Base.        “Borrowing Base Calculation Statement” means a statement in substantially the form attached as Schedule I to the form of Notice of Borrowing attached hereto as Exhibit A, as such form of Borrowing Base Calculation Statement may be modified by the Administrative Agent from time to time to the extent such  form  does  not,  in  the  good  faith  opinion  of  the  Administrative  Agent,  accurately  reflect  the calculation of the Borrowing Base required hereunder.        “Borrowing Base Inclusion Criteria” means, with respect to any Collateral Loan, the SBA Loan Borrowing Base Inclusion Criteria.        “Borrowing  Base  Inclusion  Criteria  Exception  Loan”  means  a  Collateral  Loan  that  does  not satisfy one or more of the Borrowing Base Inclusion Criteria but is approved as an Eligible Loan by the Administrative Agent acting in its sole discretion.        “Borrowing Base Inclusion Date” means, with respect to any Collateral Loan that satisfies each of  the  Eligibility  Criteria,  the  date  such  Collateral  Loan  either  satisfied  each  of  the  Borrowing  Base Inclusion  Criteria  applicable  to  such  Collateral  Loan  or  became  a  Borrowing  Base  Inclusion  Criteria Exception Loan and was included in the calculation of the Borrowing Base.        “Borrowing Date” means the date of a Borrowing.        “Business Day” means any day other than a Saturday or Sunday, provided that (i) days on which banks  are  authorized  or  required  to  close  in  New  York,  New  York,  St.  Paul,  Minnesota,  or  Chicago, Illinois, and (ii) if the applicable Business Day relates to the advance or continuation of, or conversion into, or payment of an Advance bearing interest at the LIBOR Rate or the determination of the LIBOR Rate,  days  on  which  banks  are  dealing  in  U.S.  Dollar  deposits  in  the  interbank  eurodollar  market  in London, England are closed, shall not constitute Business Days.        “Cash” means Dollars immediately available on the day in question.                                        -  5- 34881204v6 110062879

 

      “CDC”  means  a  Certified  Development  Company  as  authorized  by  the  SBA  to  deliver  loan financing under the SBA 504 Loan Program.        “CERCLA”  means,  the  Comprehensive  Environmental  Response,  Compensation  and  Liability Act of 1980, as amended by the Superfund Amendment and Reauthorization Act of 1986 and all other amendments  thereto,  together  with  the  rules  and  regulations promulgated  thereunder as  in  effect  from time to time.        “Change  of  Control”   means,  at  any  time,  the  occurrence  of  one  of  the  following  events:  (a) Parent fails to own directly or indirectly 100.0% of the equity interests of Holdco 6 free and clear of all Liens  at  any  time;  (b)  Holdco  6  fails  to  own  directly  or  indirectly  100.0%  of  the  equity  interests  of Originator free and clear of all Liens at any time, (c) Originator fails to own directly or indirectly 100.0% of the equity interests of Borrower, free and clear of all Liens at any time (other than any Lien granted therein  under  the  Pledge  Agreement),  or  (d)  Parent  fails  to  own  directly  or  indirectly  100.0%  of  the equity interests of Servicer.        “Charged-Off  Loan”  means  any  Loan  (i)  that  the  Borrower  (or  the  Servicer)  has  reasonably determined in accordance with the Servicing Standard and the Credit and Collection Policies that such Collateral Loan shall be placed on “non-accrual” status or “not collectible, (ii) for which an Insolvency Event has occurred with respect to the related Obligor, or (iii) that is more than 180 days past due.        “Charged-Off Loan Ratio” means, with respect to any calendar quarter, the ratio, expressed as a percentage  the  Aggregate  Principal  Balance  of  all  Collateral  Loans  that  became  Charged-Off  Loans during  the  twelve  calendar  months  then  ended  divided  by  (ii)  the  average  of  the  Aggregate  Principal Balance  with  respect  to  all  Collateral  Loans  as  of  the  last  day  of  the  prior  Collection  Period  and  the previous eleven Collection Periods; provided that if twelve (12) consecutive calendar months have not yet elapsed since the Borrower was formed, the Charged-Off Loan Ratio shall initially be measured from the period of the date of formation of the Borrower to the most recently ended month or fiscal quarter (as the case may be), with applicable amounts in such period annualized for purposes of such calculations, and shall subsequently include each period of the last 12 consecutive reported calendar months or four consecutive reported fiscal quarters (as the case may be) of Borrower.        “Closing Date” means July 31, 2018.        “Code”  means  the  Internal  Revenue  Code  of  1986,  as  amended  from  time  to  time,  or  any successor statute.        “Collateral” has the meaning assigned to such term in Section 7.01(a).        “Collateral Loan” means a Loan owned by the Borrower and included as part of the Collateral.        “Collateral  Loan  File  Checklist”  means  an  electronic  or  hard  copy,  as  applicable,  checklist substantially in the form of Attachment B to the Custodial Delivery Certificate delivered by or on behalf of  the  Borrower  to  the  Custodian,  for  each  Loan,  of  all  Loan  Documents  to  be  included  within  the respective loan file.        “Collateral Loan Schedule” means the list of Collateral Loans delivered by the Borrower to the Custodian  in accordance  with  the terms of  the  Custodial  Agreement,  setting  forth,  as  applicable,  with respect  to  each  such  Collateral  Loan,  the  information  specified  on  Attachment  A  to  the  Custodial Delivery Certificate.                                        -  6- 34881204v6 110062879

 

      “Collateral Quality Tests” means, after such time as there are fifteen (15) or more Eligible Loans in the Borrowing Base, as of any date of determination, a set of tests that are satisfied so long as each of the following are satisfied:              (a)   the Modified Loan Ratio (excluding the Mohawk Loan until the first to occur of       (i)  the end of  the  Exclusion Period,  and  (ii)  such  time,  if  any, as the relevant Obligors fail to       make a payment of accrued and owing interest when due) does not exceed 5.0% as of the end of       any Collection Period;              (b)   the Defaulted Loan Ratio (excluding the Mohawk Loan until the first to occur of       (i)  the end of  the  Exclusion Period,  and  (ii)  such  time,  if  any, as the relevant Obligors fail to       make a payment of accrued and owing interest when due) does not exceed 5.0% as of the end of       any Collection Period; and              (c)   the  Charged-Off  Loan  Ratio  does  not  exceed  2.5%  as  of  the  end  of  any       Collection Period.        “Collection Account” means the trust account established pursuant to Section 8.02.        “Collection  Period”  means  each  calendar  month;  provided,  however  that  the  initial  Collection Period  shall  be  the  period  from  and  including  the  Closing  Date  to  and  including  the  last  day  of  the calendar  month  in  which  the  Closing  Date  occurs;  provided,  further  that  the  final  Collection  Period preceding  the  Final  Maturity Date  or the  final  Collection  Period  preceding  an  optional prepayment in whole of the Advances shall end on the Final Maturity Date or the date of such prepayment, respectively.        “Collections” means (i) all cash collections, distributions, payments and other amounts received, and  to  be  received  by  the  Borrower,  from  any  Person  in  respect  of  any Collateral Loan,  including all principal, interest, fees, distributions and redemption and withdrawal proceeds payable to the Borrower under  or  in  connection  with  any  such  Collateral  Loan,  all  servicing  fees  received  by  the  Borrower in respect of any guaranteed portion of a Collateral Loan sold to a third party, guaranty payments and all Proceeds from any sale or disposition of any such Collateral Loan or other recoveries from the Obligor or the Loan Collateral with respect to such Collateral Loan; and (ii) all amounts paid to the Borrower under any  interest  rate  swap,  exchange,  cap,  collar,  floor,  forward,  future  or  option  agreement, or  any other similar interest rate, currency or commodity hedging arrangement with respect to Fixed Rate Loans.        “Commitment” means, as to each Lender, the obligation of such Lender to make, on and subject to the terms and conditions hereof, Advances to the Borrower pursuant to Section 2.01 in an aggregate principal amount at any one time outstanding for such Lender up to but not exceeding the amount set forth opposite the name of such Lender on Schedule 1 or in the Assignment and Acceptance pursuant to which such Lender shall have assumed its Commitment, as applicable, as such amount may be reduced from  time  to  time  pursuant  to  Section  2.06  or  increased  or  reduced  from  time  to  time  pursuant  to assignments effected in accordance with Section 15.06(a).        “Commitment Termination Date” means the earlier of (a) the last day of the Reinvestment Period (or such later date as may be agreed by the Borrower and each of the Lenders and notified in writing to the Administrative Agent) or (b) the date of the termination of the Commitments and the acceleration of the Advances pursuant to Section 6.02.        “Concentration  Limitations”  means,  as  of  any  date  of  determination,  the  following  limitations applied  to  the  Concentration  Test  Amount,  and  when  calculated  as  a  percentage  of the  Concentration Test Amount in accordance with the procedures set forth in Section 1.04, provided that for purposes of                                       -  7- 34881204v6 110062879

 

calculating each of the following limitations Unseasoned Second Lien Loans owed by any single Obligor may be excluded from such calculations:              (a)   not  more  than  $7,500,000  consists  of  First  Lien  Loans  owed  by  any  single       Obligor;              (b)   not  more  than  $5,500,000  consists  of  Second  Lien  Loans  owed  by  any  single       Obligor;              (c)   not more than the greater of (i) $15,000,000, and (ii) 30.0% of the Concentration       Test Amount consists of Eligible Loans that are Special Purpose Loans;              (d)   not more than the greater of (i) $15,000,000,12,500,000, and (ii) 30.020.0% of       the  Concentration  Test  Amount  consists  of  Eligible  Loans that  are  secured  by  Approved       Hospitality Propertieswith Obligors in the “Accommodation” Industry Group;              (e)   not more than the greater of (i) $10,000,000,12,500,000, and (ii) 20.0% of the       Concentration Test Amount consists of Eligible Loans with Obligors in the three largest Industry       GroupGroups  (measured  as  the three Industry GroupGroups  with  the  largest       percentagepercentages  of  the  Concentration  Test Amount), excluding Collateral Loans that       are secured by Approved Hospitality Properties; other than the following Industry Groups:       (1) Food Services and Drinking Places, (2) Amusement, Gambling, and Recreation Industries and       (3) Accommodation);              (f)   not more than the greater of (i) $10,000,000, and (ii) 20.0% of the Concentration       Test  Amount  consists  of  Eligible  Loans  with  Obligors  in  any  Industry  Group  other  than  the       Industry  Groups  comprising  the  three  largest  Industry  Groups  as  determined,  and  subject  to,       clause (e) above;              (g)   not more than the greater of (i) $15,000,000,25,000,000, and (ii) 25.030.0% of       the  Concentration  Test  Amount  consists  of  Eligible  Loans  from  Obligors  located  in  the  state       representing the largest percentage of the Concentration Test Amount;              (h)   not more than the greater of (i) $10,000,000,12,500,000, and (ii) 20.0% of the       Concentration  Test  Amount  consists  of  Eligible  Loans  from  Obligors  located  in  the  state       representing the second largest percentage of the Concentration Test Amount;              (i)   not more than the greater of (i) $8,000,000, and (ii) 17.5% of the Concentration       Test Amount consists of Eligible Loans from Obligors located in the state representing the third       largest percentage of the Concentration Test Amount;              (j)   not more than the greater of (i) $6,000,000, and (ii) 10.0% of the Concentration       Test Amount consists of Eligible Loans from Obligors located in any single state other than as       set forth in clauses (f), (g), and (h) above;              (k)   not more than the greater of (i) $12,500,000, and (ii) 20.0% of the Concentration       Test Amount consists of Construction Loans; and              (l)   not more than the greater of (i) $15,000,000,20,000,000, and (ii) 25.030.0% of       the  Concentration  Test  Amount  consists  of  Construction  Loans  and  Renovation  Loans  in  the                                       -  8- 34881204v6 110062879

 

      aggregate; provided that for purposes of this clause (j), (x) if less than 20% of the proceeds of an       Eligible  Loan  are  used  for  the  conversion  or  renovation  of  existing  facilities,  then  only  such       portion of the loan proceeds used for the conversion or renovation of existing facilities shall be       included in calculations of this clause (j), and (y) if 20% or greater of the proceeds of an Eligible       Loan are used for the conversion or renovation of existing facilities, then the entire amount of       such Eligible Loan shall be included in calculations of this clause (j).        “Concentration Test Amount” means the Aggregate Principal Balance of all Eligible Loans other than Unseasoned Second Lien Loans.        “Constituent Documents” means in respect of any Person, the certificate or articles of formation or  organization,  the  limited  liability  company  agreement,  operating  agreement,  partnership  agreement, joint venture agreement, trust agreement or other applicable agreement of formation or organization (or equivalent or comparable constituent documents) and other organizational documents and by-laws and any  certificate  of  incorporation,  certificate  of  formation,  certificate  of  limited  partnership  and  other agreement,  similar  instrument  filed  or  made  in  connection  with  its  formation  or  organization,  in  each case, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.        “Construction  Loan”  means  a  Collateral  Loan,  the  proceeds  of  which  will  be  used  for  the construction of new facilities.        “Continued Errors” has the meaning specified in Section 11.08(f).        “Control” means the direct or indirect possession of the power to direct or cause the direction of the  management  or  policies  of  a  Person,  whether  through  ownership,  by  contract,  arrangement  or understanding, or otherwise.  “Controlled” and “Controlling” have the meaning correlative thereto.        “Covered Entity” means any of the following: (i) a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b); (ii) a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or (iii) a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).        “Covered Party” has the meaning set forth in Section 15.22.        “Credit  and  Collection  Policies”  means  the  credit  policies  of  Originator attached  hereto  as Schedule 8, as amended subject to the terms hereof, together with the Servicing Standard.1        “Custodial Agreement” means that certain Custodial Agreement dated as of the date hereof, by and among the Custodian, the Borrower, Newtek Business Lending, LLC, as seller, the Servicer, and the Administrative Agent, as the same may be amended, restated, supplemented or otherwise modified from time to time.        “Custodial Delivery Certificate” means a delivery certificate substantially in the form set forth in the Custodial Agreement, executed by the Borrower in connection with its delivery of a Loan File to the Custodian pursuant to the Custodial Agreement.        “Custodial  File  Document  Receipt  Certificate”  means  a  receipt  substantially  in  the  form  of Exhibit L delivered to the Borrower with a copy to the Administrative Agent by the Custodian covering  1 NTD: Newtek to send PDF of Credit and Collection Policies.                                         -  9- 34881204v6 110062879

 

all  of  the  Collateral  Loans  subject  to  the  Custodial  Agreement  from  time  to  time,  as  reflected  on  the Asset Schedule and Exception Report attached thereto in accordance with Section 13.02.        “Custodian” means U.S. Bank National Association, and any successor thereto appointed under the Custodial Agreement.        “Data File” has the meaning assigned to such term in Section 8.06(a).        “Debtor  Relief  Laws”  means  the  Bankruptcy  Code,  and  all  other  liquidation,  conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect.        “Default” means any event which, with the passage of time, the giving of notice, or both, would (if not cured or otherwise remedied during such time) constitute an Event of Default.        “Default Rate” means a rate per annum equal to:              (a)   with  respect to LIBOR Advances, the sum of (i) the LIBOR Rate plus (ii) the       Applicable Margin then applicable to such LIBOR Advance, plus (iii) 2.0%; and              (b)   with respect to Base Rate Advances or any other Obligation, the sum of (i) the       Base Rate plus (ii) the Applicable Margin then applicable to such Base Rate Advances plus (iii)       2.0%.        “Defaulted Loan” means any Loan as to which any of the following occurs:              (a)   a  default  as  to  all  or  any portion of one or more payments of principal and/or       interest has occurred with respect to such Loan and such payment default has continuedis past       due for 30 days or more;              (b)   a default other than a payment default described in clause (a) above (after giving       effect to any grace period applicable thereto) and for which the Borrower (or the Originator or       other  applicable  lender  pursuant  to  the  related  Loan  Documents,  as  applicable)  has  elected  to       exercise any of its rights and remedies under such related Loan Documents (including, without       limitation, acceleration or foreclosing on collateral, but excluding the exercise of any rights to       receive reports or conduct audits);              (c)   the  related  Obligor  or  Loan  Guarantor  of  such  Loan  is  the  subject  of  an       Insolvency Event;              (d)   any or all of the principal amount due under such Loan is reduced or forgiven;              (e)   the Servicer or the Borrower has reasonably determined in accordance with the       Servicing  Standard  and  the  Credit  and  Collection  Policies  that  such  Loan  shall  be  placed  on       “non-accrual” status or “not collectible”;              (f)   a Material Modification has occurred with respect to such Loan without the prior       written consent of the Administrative Agent; or                                        - 10- 34881204v6 110062879

 

            (g)   is subject to a mandatory repurchase as a Warranty Loan under the Purchase and       Contribution Agreement.        “Defaulted Loan Ratio” means, with respect to any Collection Period, the ratio, expressed as a percentage, of (i) the Aggregate Principal Balance of all Loans in the overall managed portfolio of Loans serviced  by  Servicer  which  became  or  would  become  (if  owned  by  the  Borrower)  a  Defaulted  Loan during  the  twelve  calendar  months  then  ended  divided  by  (ii)  the  average  of  the  Aggregate  Principal Balance of all such Loans in the overall managed portfolio of Loans serviced by Servicer as of the last day of the prior Collection Period and the previous eleven Collection Periods.        “Defaulting Lender” means, subject to Section 2.17(b), any Lender that (a) has failed to (i) fund all or any portion of its Advances within two (2) Business Days of the date such Advances were required to be funded hereunder unless such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of such Lender’s determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied, or (ii) pay to the Administrative Agent or any other Lender any other amount required to be paid by it hereunder within two (2) Business Days of the date when due, (b) has notified the Borrower or the Administrative Agent in writing that it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect (unless such writing or public statement relates to such Lender’s obligation to fund an Advance hereunder and states that such position is based on such Lender’s determination that a condition precedent to funding (which condition precedent, together with any applicable default, shall be specifically identified in such writing or  public  statement)  cannot  be  satisfied),  (c)  has  failed,  within  three  (3)  Business  Days  after  written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative Agent and the Borrower that it will comply with its prospective funding obligations hereunder (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Administrative Agent and the Borrower), or (d) has, or has a direct or indirect parent company that has, at any time after the Closing Date (i) become the subject of a proceeding under any Debtor Relief Law, or (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business  or  assets,  including  the  Federal  Deposit  Insurance  Corporation  or  any  other  state  or  federal regulatory authority acting in such a capacity, or (iii) become the subject of a Bail-In Action; provided that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity  interest  in  that  Lender  or  any  direct  or  indirect  parent  company  thereof  by  a  Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment  on  its  assets  or  permit  such  Lender  (or  such  Governmental  Authority)  to  reject,  repudiate, disavow  or  disaffirm  any  contracts  or  agreements made  with  such  Lender.   Any determination  by  the Administrative Agent that a Lender is a Defaulting Lender under clauses (a) through (d) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section 2.17(b)) upon delivery of written notice of such determination to the Borrower and each Lender.        “Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.        “Deliver” or “Delivered” or “Delivery” means the taking of the following steps:              (a)   in  the  case  of  each  Instrument,  causing  the  delivery  of  such  Instrument  to  the       Custodian; and                                       - 11- 34881204v6 110062879

 

            (b)   in  the  case  of  each  account  or  general  intangible,  causing  the  filing  of  a       Financing Statement in the office of the Secretary of State of the State of Delaware.        In addition, the Borrower (or a Successor Servicer) will obtain any and all consents required by the related Loan Documents relating to any Instruments, accounts or general intangibles for the transfer of  ownership  and/or  pledge  hereunder  (except  to  the  extent  that  the  requirement  for  such  consent  is rendered ineffective under Section 9-406 of the UCC).        “Determination Date” means the last day of each Collection Period.        “Division” means the division of the assets, liabilities or obligations of a Person (the “Dividing Person”) among two or more Persons (whether pursuant to a “plan of division” or similar arrangement), which may or may not include the Dividing Person and pursuant to which the Dividing Person may or may not survive.        “Document Custodian” means the Custodian when acting in the role of a custodian of the Loan Documents hereunder.        “Document  Custodian  Facilities”  means  the  office  of  the  Document  Custodian  specified  on Schedule 5.        “Dollars” and “$” mean lawful money of the United States of America.        “Due  Date”  means  each  date  on  which  any  payment  is  due  on  a  Loan  in  accordance  with  its terms.        “EBITDA”  means,  with  reference  to  any period,  net  income  (or  net  loss)  of  the  Borrower  for such period computed on a consolidated basis in accordance with GAAP plus all amounts deducted in arriving at such net income amount in respect of Interest Expense, Taxes, depreciation and amortization as determined and calculated by the Borrower (or a Successor Servicer) in a manner acceptable to the Administrative Agent in its sole discretion.        “EEA Financial Institution” means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of  an  institution  described  in  clauses  (a)  or  (b)  of  this  definition  and  is  subject  to  consolidated supervision with its parent.        “EEA  Member  Country”  means  any  of  the  member  states  of  the  European  Union,  Iceland, Liechtenstein, and Norway.        “EEA Resolution Authority” means any public administrative authority or any person entrusted with  public  administrative  authority  of  any  EEA  Member  Country  (including  any  delegee)  having responsibility for the resolution of any EEA Financial Institution.        “Eligibility Criteria” means, with respect to any Loan, the following eligibility criteria:              (a)   such Loan is either a First Lien Loan or an Eligible Second Lien Loan;                                        - 12- 34881204v6 110062879

 

            (b)   is  an  obligation  of  an  Obligor  that  (x)  is  not  a  Governmental  Authority  or  a       natural person and (y) is a business entity organized or incorporated in the United States (or any       state, territory or possession thereof);              (c)   unless such Loan is an Eligible Second Lien Loan, such Loan is not (and is not       expressly  permitted  by  its  terms  to  become)  subordinate  in  right  of  payment  to  any  other       contractual pre-petition obligation for borrowed money of the related Obligor in any bankruptcy,       reorganization, arrangement, insolvency, moratorium or liquidation proceedings;              (d)   is fully secured by the related Project Property and the related Project Property is       commercial real property that is at least 51% owner occupied;              (e)   no Insolvency Event with respect to the Obligor or any related Loan Guarantor       shall have occurred within the previous three (3) years;              (f)   is not a Defaulted Loan or Charged-Off Loan and is not in payment deferral;              (g)   provides  for  payment  of  interest  in  cash  no  less  frequently  than  quarterly  and       provides for the full principal balance to be payable in cash at or prior to its maturity;              (h)   is denominated and payable in Dollars and the related Loan Documents do not       permit either (x) such debt to be denominated in any other currency or (y) permit the place of       payment to be changed;              (i)   if the (i) related Project Property is a hotel property, such Project Property is an       Approved  Hospitality  Property  and  (ii)  if  the  Obligor  with  respect  to  the  Loan  is  in  the       “Accommodation” Industry Group, such Loan is secured by an Approved Hospitality Property;              (j)   such Loan was not selected for inclusion in the pool of assets that are sold to the       Borrower by the Originator in a manner materially adverse to the interests of the Secured Parties;              (k)   is not subject to material non-credit related risk (such as a Loan the payment of       which  is  expressly  contingent  upon  the  non-occurrence  of  a  catastrophe)  as  determined  in       accordance with the Credit and Collection Policy;              (l)   the  Loan  is  not  subject  to  any  pending  or  threatened  litigation,  right  of       rescission,  set-off,  counterclaim  or  defense,  including  the  defense  of  usury,  or  any  assertion       thereof by the related Obligor, nor will the operation of any of the terms of such Loan or any       Loan Document, or the exercise of any right thereunder, including, without limitation, remedies       after default, render either the Loan or any Loan Document unenforceable in whole or in part;       nor  is  the  Loan  subject  to  any  prepayment  in  an  aggregate  amount  less  than  the  remaining       Principal Balance of the Loan plus all accrued and unpaid interest;              (m)   such  Loan  (i)  was  originated,  underwritten,  closed,  and  documented  by  the       Originator  in  the  ordinary course  of  its business  in  accordance  with  the Credit and Collection       Policies, (ii) was documented pursuant to legal documentation in form and substance satisfactory       to the Administrative Agent in accordance with Applicable Laws and all rules, regulations and       guidelines  of  the  SBA  necessary  to  qualify  such  Loan  under  the  SBA  504  Loan  Program;       provided, that legal documentation that conforms in all material respects to forms provided by       the SBA, standard forms of mortgages or deeds of trust procured by Borrower for use in specific       jurisdictions, or other forms of documents previously approved by the Administrative Agent shall                                       - 13- 34881204v6 110062879

 

      be presumed to be satisfactory to the Administrative Agent, (iii) is administered in accordance       with  and  has  been  at  all  times  in  compliance  with  the  Credit  and  Collection  Policies  and       Applicable Laws, and all rules, regulations and guidelines of the SBA and the SBA 504 Loan       Program (notwithstanding that a CDC is responsible for ensuring eligibility under the SBA 504       Loan  Program  with  respect  to  Second  Lien  Loans)  including,  without  limitation,  all  terms  set       forth  in  the  related  Third  Party  Lender  Agreement  and  the  SBA  Authorization,  (iv)  was       purchased  from  the  Originator  and  conveyed  to  the  Borrower  pursuant  to  the  Purchase  and       Contribution Agreement, and (v) the SBA and applicable CDC were provided notice of the sale       of  such  SBA  Loan  in  accordance  with  the  terms  set  forth  in  the  related  Third  Party  Lender       Agreement;              (n)   is  guaranteed  by  one  or  more  natural  persons  pursuant  to  a  valid  and  binding       guarantee agreement and, if such Loan is a Second Lien Loan, the related SBA Guaranty is in       accordance with the SBA 504 Loan Program;              (o)   the Obligor of which is not an Affiliate of the Borrower, the Originator, or the       Servicer;              (p)   has an original and remaining term to maturity of not more than twenty-five (25)       years;              (q)   is  fully  assignable  by  the  Borrower  without  restriction  (or  subject  only  to       restrictions which have been complied with) and may be collaterally assigned by the Borrower to       the  Administrative  Agent  without  restriction  (or  subject  only  to  restrictions  which  have  been       complied with), and the rights to service, administer and enforce rights and remedies in respect       of  the  same  under  the  Loan  Documents inure to  the  benefit  of  the holder of  such  Loan  or  its       designee  (subject  to  customary  consent  rights  of  the  Obligor  and  any  applicable  agent,  which       have all been obtained with respect to the assignment to the Borrower);              (r)   such Loan does not contain a confidentiality provision that restricts the ability of       the  Administrative  Agent,  on  behalf  of  the  Secured  Parties,  to  exercise  its  rights  under  the       Facility Documents, including, without limitation, its rights to review the Loan or the Borrower’s       credit approval file in respect of such Loan; provided, however, that a provision which requires       the Administrative Agent or other prospective recipient of confidential information to maintain       the confidentiality of such information shall not be deemed to restrict the exercise of such rights;              (s)   there are no proceedings pending or, to the best of the Borrower’s knowledge,       threatened (i) asserting an Insolvency Event has occurred with respect to the Obligor or the Loan       Guarantor  or  (ii)  wherein  the  Obligor  of  such  Loan,  or  any  other  Person  or  Governmental       Authority,  has  alleged  that  such  Loan  or  the  Loan  Documents  with  respect  to  such  Loan  are       illegal or unenforceable;              (t)   to the Borrower’s knowledge after performance of commercially reasonable due       diligence, the underlying collateral related to such Loan has not been used by the related Obligor       in  any  manner  or  for  any  purpose  which  would  result  in  any  material  risk  of  liability  being       imposed upon the Borrower, the Administrative Agent or the Lender under any Applicable Law;              (u)   the origination of such Loan by the Originator and the ownership of such Loan       by the Borrower will not violate any Applicable Law, cause the Borrower or the pool of assets to       be required to be registered as an investment company under the Investment Company Act, or       cause  the  Administrative  Agent  or  any  Lender  to  fail  to  comply  with  any  request  or  directive                                       - 14- 34881204v6 110062879

 

      from  any  banking  authority  or  Governmental  Authority  having  jurisdiction  over  the       Administrative Agent or any Lender;              (v)   the Borrower has a valid and binding ownership interest in its entirety free and       clear of any Liens, claims or encumbrances of any nature whatsoever except for Permitted Liens,       in  such  Loan;  provided  that  such  Permitted  Liens  do  not  directly  secure  indebtedness  for       borrowed  money  other  than  Permitted  Liens  granted  under  this  Agreement  and/or  the  other       Facility Documents; and, if such Loan is an Eligible Second Lien Loan, the lien of the related       First Lien Loan;              (w)   such  Loan  is  in  full  force  and  effect  and,  together  with  the  related  Loan       Documents, constitutes the legal, valid and binding payment obligation of the related Obligor and       each guarantor thereof, enforceable by or on behalf of the holder thereof against such Obligor or       guarantor  in  accordance  with  its  terms,  subject  to  applicable  bankruptcy,  insolvency,       reorganization and similar laws and subject to general principles of equity;              (x)   the Obligor of such Loan is not in an Excluded Industry;              (y)   the Borrower, the Servicer, and any of their Affiliates and agents, with respect to       such  Loan,  have  at  all  times  complied,  in  all  material  respects,  with  all  requirements  of       Applicable Law and such Loan does not violate any Applicable Law in any material respect;              (z)   at  the  time  of acquisition thereof, the all-in yield with respect to such Loan is       equal to or greater than the applicable Interest Rate hereunder;              (aa)  as of the date such Loan was originated by the Originator and acquired by the       Borrower, with respect to which the Originator and the Borrower had all necessary licenses and       permits  to  originate  or  purchase  such  Loan  in  the  state  where  the  Obligor  is  located  and  the       related Project Property is located and enter into the related Loan Documents;              (bb)  the underlying collateral with respect to such Loan is in good repair and free of       any damage, waste or defective condition that would materially and adversely affect the value of       such  collateral  as  security  for  such  Loan and  the  Loan  Documents  with  respect  to  such  Loan       require that the related Obligor maintain the underlying collateral for such Loan in good repair       and the Obligor with respect to such Loan is required to maintain adequate insurance coverage       (including,  without  limitation,  flood  insurance  and  any  other  insurance  required  under  SBA       requirements,  as  applicable)  with  respect  to  its  assets  and  there  is  no  total  or  partial       condemnation  proceeding  or  eminent  domain  proceeding  pending  or  threatened  against  the       related collateral;              (cc)  such Loan is a Loan with respect to which the Borrower has a valid first priority       or, if such Loan is an Eligible Second Lien Loan, junior priority perfected security interest and       Lien in all underlying collateral for the applicable Loan free and clear of any Liens other than       Permitted  Liens;  provided  that  such  Permitted  Liens  do  not  directly  secure  indebtedness  for       borrowed  money;  provided,  that  at  the  discretion  of  Administrative  Agent,  the  perfection       requirements  of  this  clause  may  be  deemed  satisfied  if  escrow  arrangements  reasonably       acceptable  to  the  Administrative  Agent  are  in place  to  insure that all steps necessary for such       perfection  will  be  accomplished  promptly,  and  in  any  event  within  seven  (7)  Business  Days       following the disbursement by the Borrower of the proceeds of such Loan;                                        - 15- 34881204v6 110062879

 

            (dd)  such  Loan  conforms  to  all  requirements  of  the  SBA  applicable  to  the  SBA       Authorization and, with respect to an Eligible Second Lien Loan, the SBA Guaranty;              (ee)  such  Loan  is  a  Loan  with  respect  to  which  (A)  no  event  or  condition  has       occurred  that  would  release  the  SBA  from  its  obligations  to  Borrower  with  respect  to  the       applicable SBA Loan, (B) the SBA has not rejected the applicable SBA Loan or the applicable       Loan Documents in any respect, and (C) if such Loan is an Eligible Second Lien Loan, no event       has occurred pursuant to which the SBA has reduced the amount of its guarantee of any of the       foregoing (but in such event only to the extent of such reduction);              (ff)  such Loan is a Loan with respect to which the insurance coverage required by       the applicable Loan Documents is in full force and effect and Borrower has been named as loss       payee or additional insured, as applicable, with respect thereto;              (gg)  such Loan has not been turned over to the SBA or any other Person for servicing       or collection;              (hh)  such Loan is not a Participation Interest in a Loan;              (ii)  if  such  Loan  is  a  Renovation  Loan or  Construction  Loan and  requires  the       Borrower to make one or more future advances to the Obligor under the Loan Documents, such       Loan  (i)  specifies  a  maximum  amount  that  can  be  borrowed  on  one  or  more  fixed  borrowing       dates, and (ii) does not permit the re-borrowing of any amount previously repaid by the Obligor       thereunder;              (jj)  such Loan does not constitute Margin Stock and no part of the proceeds of such       loan  or  any  other  extension  of  credit  made  thereunder  will  be  used  to  purchase  or  carry  any       Margin Stock or to extend credit to others for the purpose of purchasing or carrying any Margin       Stock;              (kk)  such  Loan  is  in  the  form  of,  and  is  treated  as,  indebtedness  for  U.S.  federal       income tax purposes;              (ll)  such Loan does not subject the Borrower to any withholding tax, other tax, fee or       governmental  charge  unless  the  Obligor  is  required  to  make  “gross-up”  payments  constituting       100% of such withholding tax, other tax, fee or governmental charge on an after-tax basis (other       than with respect to customary “excluded taxes”);              (mm)  such Loan, at acquisition, is not the subject of an offer and has not been called       for redemption;              (nn)  such Loan is not an obligation (other than a Renovation Loan or a Construction       Loan) pursuant to which any future advances or payments to the Obligor may be required to be       made by the Borrower;              (oo)  with respect to the Project Property related to such Loan, (i) the related Phase I       environmental assessment and any other environmental audit have not revealed the existence of       any  Hazardous  Materials  on  such  Project  Property  or  any  other  violations  of  Environmental       Laws, or  (ii)  any environmental  risks associated  with  the  existence  of Hazardous Materials or       any  other  violation  of  Environmental  Law  are  being  mitigated  or  cured  in  accordance  with                                        - 16- 34881204v6 110062879

 

      Applicable  Laws  and,  if applicable, the  SBA  Rules  and  Regulations,  to the satisfaction of the       Administrative Agent in its sole discretion;              (pp)  such  Loan  is  evidenced  by  a  note  or  other  instrument  and  such  note  or  other       instrument  has  been  delivered  to  the  Custodian  in  accordance  with  the  provisions  of  the       Custodial  Agreement  (or  will  be  delivered  within  three  (3)  Business  Days,  as  set  forth  in  the       Custodial  Agreement)  and  the  Custodian  has  received  all  other  Loan  Documents  as  required       pursuant to the Custodial Agreement; and              (qq)  if such Loan is a Special Purpose Loan and the outstanding balance of such Loan       is  greater  than  or  equal  to  $5,000,000,  such  Loan  was  approved  by  Administrative  Agent  in       Administrative Agent’s sole discretion; and               (rr)  if such Loan (i) is a First Lien Loan, (ii) is an obligation of an Obligor located in       the State of Florida and (iii) a corresponding Second Lien Loan was extended in connection with       such  Loan,  not  more  than  ninety  (90)  days  have  elapsed  since  the  CDC  has  provided  takeout       financing  with  respect  to  such  corresponding  Second  Lien  Loan  (regardless  of  whether  such       Second Lien Loan was provided by the Borrower or another Person).         “Eligible Loan” means a Collateral Loan that (i) from and after the time of acquisition thereof by the Borrower (or its binding commitment to acquire the same), satisfies each of the Eligibility Criteria and  (ii)  on  the  date  such  Collateral  Loan  is  included  in  the  Borrowing  Base,  satisfies  each  of  the applicable Borrowing Base Inclusion Criteria or is a Borrowing Base Inclusion Criteria Exception Loan.        “Eligible Second Lien Loan” means a SBA Loan that satisfies the following criteria as of any date of determination:              (a)   is a Second Lien Loan;              (b)   was originated (i) within the previous 120 days if such Second Lien Loan is not a       Construction Loan or Renovation Loan and (ii) within 360 days if such Second Lien Loan is a       Construction Loan or Renovation Loan, so long as the relevant construction or renovation has       been completed within 270 days of such Second Lien Loan’s initial origination date;              (c)   is  in  compliance  with  the  SBA  Authorization  or  the  applicable  CDC  has       provided takeout financing with respect to the Second Lien Loan;              (d)   all  conditions  have  been  satisfied  for  the  refinancing of  such  SBA  Loan  other       than the receipt of funds from the takeout financing with respect to such SBA Loan; and              (e)   the  Loan  Documents  with  respect  to  such  SBA  Loan  include  a  fully  executed       SBA Authorization and no condition has occurred that would excuse the SBA from issuing its       guarantee of the debenture that will be used to refinance such Second Lien Loan or otherwise       affect the obligation of the SBA to guarantee such Second Lien Loan.        “Environmental Complaint” has the meaning assigned to such term in Section 5.01(m)(v).        “Environmental Laws” means, all applicable Federal, state, and local laws (including common laws), statutes, ordinances, rules, regulations and orders or restrictions of, or legally binding agreements with, any Governmental Authority relating to the protection of human health, safety, the environment, natural  resources  or  the  use,  possession,  handling,  generation,  transportation,  treatment,  storage,                                       - 17- 34881204v6 110062879

 

recycling,  discharge,  disposal,  emission, presence, or Release, or the threat of Release of (collectively “Management”),  exposure  to,  or  any  remedial,  removal  or  response  action  in  connection  with,  any Hazardous Material.        “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated and rulings issued thereunder.        “ERISA Event” means (a) any “reportable event,” as defined in Section 4043 of ERISA or the regulations issued thereunder with respect to a Plan (other than an event for which the thirty day notice requirement  is  waived);  (b)  the  failure  with  respect  to  any  Plan  to  satisfy  the  “minimum  funding standard” (as defined in Section 412 of the Code or Section 302 of ERISA); (c) the filing pursuant to Section  412(c)  of  the  Code  or  Section  302  of  ERISA  of  an  application  for  a  waiver  of  the  minimum funding standard with respect to any Plan; (d) a determination that any Plan is, or is expected to be, in “at risk” status (as defined in Section 430 of the Code or Section 303 of ERISA); (e) the incurrence by the Borrower or any member of its ERISA Group of any liability under Title IV of ERISA with respect to the termination of any Plan; (f) (i) the receipt by the Borrower or any member of its ERISA Group from the PBGC of a notice of determination that the PBGC intends to seek termination of any Plan or to have a trustee appointed for any Plan, or (ii) the filing by the Borrower or any member of its ERISA Group of a notice of intent to terminate any Plan; (g) the incurrence by the Borrower or any member of its ERISA Group of any liability (i) with respect to a Plan pursuant to Sections 4063 and 4064 of ERISA, (ii) with respect to a facility closing pursuant to Section 4062(e) of ERISA, or (iii) with respect to the withdrawal or partial withdrawal from any Multiemployer Plan; (h) the receipt by the Borrower or any member of its ERISA Group of any notice concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, in endangered status or critical status, within the meaning of Section 432 of the Code or Section 305 of ERISA or is or is expected to be insolvent or in reorganization, within the meaning of Title IV of ERISA; or (i) the failure of the Borrower or any member of its ERISA Group to make any required contribution to a Multiemployer Plan.        “ERISA Group” means each controlled group of corporations or trades or businesses (whether or not incorporated) under common control that is treated as a single employer under Section 414(b), (c), (m) or (o) of the Code with the Borrower.        “Eurocurrency Liabilities” is defined in Regulation D of the Board of Governors of the Federal Reserve System, as in effect from time to time.        “Eurodollar Disruption  Event”  means the  occurrence  of any of the following:  (a) any Lender shall have notified the Administrative Agent of a determination by such Lender or any of its assignees or participants that, as a result of the introduction of any change in applicable law since the Closing Date, it would be contrary to law or to the directive of any central bank or other governmental authority (whether or not having the force of law) to obtain Dollars in the London interbank market to fund any Advance, (b) any Lender shall have notified the Administrative Agent that by reason of circumstances affecting the interbank eurodollar market, adequate and reasonable means do not exist for such Lender or any of its assignees or participants to ascertain the Adjusted Eurodollar Rate, (c) any Lender shall have notified the Administrative Agent of a determination by such Lender or any of its assignees or participants that the rate at which deposits of Dollars are being offered to such Lender or any of its assignees or participants in  the  London  interbank  market  does  not  adequately  and  fairly  reflect  the  cost  to  such  Lender,  such assignee or such participant of making, funding or maintaining any Advance; provided that such Lender has generally made a similar determination with respect to its other borrowers under facilities bearing interest at an index based on the London interbank offered rate or (d) any Lender shall have notified the Administrative  Agent  of  the  inability  of  such  Lender  or  any  of  its  assignees  or  participants  to  obtain                                       - 18- 34881204v6 110062879

 

Dollars in the London interbank market using reasonable commercial efforts to make, fund or maintain any Advance.        “Eurodollar Reserve Percentage” means, for any period, the percentage, if any, applicable during such  period  (or,  if  more  than  one  such  percentage  shall  be  so  applicable,  the  daily  average  of  such percentages for those days in such period during which any such percentage shall be so applicable) under regulations issued from time to time by the Board of Governors of the Federal Reserve System (or any successor) for determining the maximum reserve requirement (including, without limitation, any basic, emergency,  supplemental,  marginal  or  other  reserve  requirements)  with  respect  to  liabilities  or  assets consisting of or including Eurocurrency Liabilities having a term of one month.        “Event of Default” means the occurrence of any of the events, acts or circumstances set forth in Section 6.01.        “Exception”  means,  with  respect  to  any  Collateral  Loan,  (i)  any  variance  from  the  applicable delivery requirements of the Custodial Agreement with respect to the related Loan File, including any variance from the documents purported to be delivered in any related Collateral Loan File Checklist or any variance with respect to the Review Procedures, or (ii) any Loan Document which has been released from the possession of the Custodian pursuant to the terms of the Custodial Agreement for a period in excess of twenty (20) calendar days.        “Excess Concentration Amount” means, at any time in respect of which any one or more of the Concentration  Limitations  are  exceeded,  the  portions  (calculated  by  the  Borrower  (or  a  Successor Servicer)  without  duplication)  of  each  Eligible  Loan  that  cause  such  Concentration  Limitations  to  be exceeded.        “Exchange  Act”  means  the  Securities  Exchange  Act  of  1934,  as  amended,  and  the  rules  and regulations  promulgated  thereunder,  all  as  from  time  to  time  in  effect,  or  any  successor  law,  rules  or regulations, and any reference to any statutory or regulatory provision shall be deemed to be a reference to any successor statutory or regulatory provision.        “Excluded Amount” means (a) any amount received in the Collection Account with respect to any Collateral Loan, which amount is attributable to the reimbursement of payment by the Borrower of any Tax, fee or other charge imposed by any Governmental Authority on such Collateral Loan or any related Collateral, (b) any reimbursement of insurance premiums paid by the Borrower, (c) any escrows relating to Taxes, insurance and other amounts in connection with Collateral Loans which are held in an escrow  account  for  the  benefit  of  the  Obligor  and  the  secured  party  pursuant  to  escrow  arrangements under the Loan Documents or (d) any amount deposited into the Collection Account in error.        “Excluded  Industry”  means  any  one  of  the  following  industries  or  any  industry  substantially related  thereto:  payday  lending,  pawn  shops,  adult  entertainment,  marijuana  related  businesses, automobile  title  loans,  tax  refund  anticipation  loans,  credit  repair  services,  drug  paraphernalia,  tax evasion, businesses engaged in predatory lending practices, and strip mining.        “Exclusion  Period”  means  the  period  beginning on  August  31,  2020 and  ending  on  June  30, 2021.        “Facility Amount” means (a) on or prior to the Commitment Termination Date, $75,000,000.00 (as  such  amount  may  be  reduced  from  time  to  time  pursuant  to  Section  2.06)  and  (b)  following  the Commitment Termination Date, the outstanding principal balance of all the Advances; provided that the                                        - 19- 34881204v6 110062879

 

Facility Amount may be increased by the Borrower from time to time in accordance with Section 2.10 hereof.        “Facility Amount Increase” means an increase in the Facility Amount pursuant to Section 2.10.        “Facility Amount Increase Request” is defined in Section 2.10.        “Facility  Documents”  means  this  Agreement,  the  Purchase  and  Contribution  Agreement,  the Account  Control  Agreement,  the  Backup  Servicer  Fee  Letter,  the  Custodial  Agreement,  the Administrative Agent Fee Letter, each Lender Fee Letter (if any), the Guaranty Agreements, the Pledge Agreement, and any other security agreements and other instruments entered into or delivered by or on behalf  of  the  Borrower  pursuant  to  Section  5.01(c)  to  create,  perfect  or  otherwise  evidence  the Administrative Agent’s security interest.        “FATCA” means Code Sections 1471 through 1474 (or any amended or successor version that is substantively  comparable  and  not  materially  more  onerous  to  comply  with),  any  current  or  future regulations or official interpretations thereof (including any Revenue Ruling, Revenue Procedure, Notice or similar guidance issued by the U.S. Internal Revenue Service thereunder as a precondition to relief or exemption  from  Taxes  under  such  provisions)  and  any  agreement  entered  into  pursuant  to  Section 1471(b)(1) of the Code.        “Federal Funds Rate” means, for any period, a fluctuating interest rate per annum equal for each day during such period to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published for such day (or, if such day is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day, the average of the quotations for such day on such transactions received by the Administrative Agent from three Federal funds brokers of recognized standing selected by it; provided that, if at any time a Lender is borrowing overnight funds from a Federal Reserve Bank that day, the Federal Funds Rate for such Lender for such day  shall  be  the  average  rate  per  annum at which such overnight borrowings are made on that day as promptly  reported  by  such  Lender  to  the  Borrower  and  the  Administrative  Agent  in  writing.   Each determination  of  the  Federal  Funds  Rate  by  a  Lender  pursuant  to  the  foregoing  proviso  shall  be conclusive and binding except in the case of manifest error.        “FICO Score” means, with respect to a Loan Guarantor, the statistical credit score of such Loan Guarantor based on methodology developed by Fair Isaac Corporation and used by the Borrower or its agents to determine credit risk when underwriting such Loan.  For purposes of clarification, the “FICO Score” of any Loan Guarantor shall mean the most recent FICO Score used to make a credit decision with respect to such Loan Guarantor, by the Borrower, the Servicer, or the Originator, as the case may be.          “Final  Maturity  Date”  means  the  earlier  of  (a) the  first  anniversary  of  the  Commitment Termination Date (or such later date as may be agreed by the Borrower and each of the Lenders and  notified  in  writing  to  the  Administrative  Agent)November  4,  2023,  or  (b)  the  date  of  the termination of the Commitments and the acceleration of the Advances pursuant to Section 6.02.        “Final Order” means an order, judgment, decree or ruling the operation or effect of which has not been  stayed,  reversed  or  amended  and  as to  which order, judgment, decree or ruling (or any revision, modification or amendment thereof) the time to appeal or to seek review or rehearing has expired and as to which no appeal or petition for review or rehearing was filed or, if filed, remains pending.                                       - 20- 34881204v6 110062879

 

      “Financial Asset” has the meaning specified in Section 8-102(a)(9) of the UCC.        “Financing Statements” has the meaning specified in Section 9-102(a)(39) of the UCC.        “First Amendment”  means  that certain Amendment to Credit Agreement dated as of April 30, 2019 by and among Borrower, Servicer, Lenders, the Administrative Agent, and the other parties thereto.         “First Lien Loan” means any Loan that:              (a)   is not (and is not expressly permitted by its terms to become) subordinate in right       of  payment  to  any  other  contractual pre-petition obligation for borrowed money of the related       Obligor in any bankruptcy, reorganization, arrangement, insolvency, moratorium or liquidation       proceedings; and              (b)   is  secured  by  a  valid  first  priority  perfected  mortgage,  deed  of  trust,  security       interest  or  Lien  in,  to  or  on  the  Project  Property  subject  to  customary  Liens  for  taxes  or       regulatory  charges  not  then  due  and  payable  and  other  permitted  Liens  under  the  Loan       Documents, provided that such permitted Liens do not directly secure indebtedness for borrowed       money.        “Fixed Rate Loan” means any Loan that bears a fixed rate of interest.        “Fourth Amendment” means that certain Amendment to Credit Agreement dated as of July 31, 2020, by and among Borrower, Servicer, Lenders, and the Administrative Agent.         “Fundamental Amendment” means any amendment, modification, waiver or supplement of or to this Agreement that would (a) increase or extend the term of the Commitments (other than an increase in the Commitment of a particular Lender or addition of a new Lender hereunder agreed to by the relevant Lender(s) pursuant to the terms of this Agreement) or change the Final Maturity Date, (b) extend the date fixed  for  the  payment of principal of or interest on any Advance or any fee hereunder, (c) reduce the amount  of  any  such  payment  of  principal  or  interest,  (d)  reduce  the  rate  at  which  interest  is  payable thereon  or  any  fee  is  payable  hereunder,  (e)  release  any  material  portion  of  the  Collateral,  except  in connection  with  dispositions  permitted  hereunder, (f)  alter  the terms  of  Section  6.01,  Section  9.01,  or Section 15.01(b) or any related definitions or provisions in a manner that would alter the effect of such Sections, (g) modify the definition of the terms “Majority Lenders” or “Required Lenders” or modify in any other manner the number or percentage of the Lenders required to make any determinations or waive any rights hereunder or to modify any provision hereof, (h) modify the definition of the terms “Advance Rate”, “Availability”, “Availability Test”, “Borrowing Base”, “Eligible Loan”, “Collateral Quality Test”, “Fundamental  Amendment”,  “Asset  Coverage  Ratio  Test”,  “Interest  Coverage  Ratio  Test”,  or  any defined term used therein, in each case in a manner which would have the effect of making more credit available to the Borrower, be adverse to the interests of the Lenders or less restrictive on the Borrower in any other material fashion, or (i) extend the Reinvestment Period.        “Funding  Effective  Date”  means  the  later  of  the  Closing  Date  and  the  date  on  which  the conditions precedent set forth in Section 3.01 are satisfied.        “GAAP”  means  generally  accepted  accounting  principles  in  effect  from  time  to  time  in  the United States.        “Governmental  Authority”  means  any  nation  or  government,  any  state  or  other  political subdivision thereof, any agency, authority, instrumentality, regulatory body, quasi-regulatory authority,                                       - 21- 34881204v6 110062879

 

administrative tribunal, central bank, public office, court, arbitration or mediation panel, or other entity exercising  executive,  legislative,  judicial,  taxing,  regulatory  or  administrative  powers  or  functions  of government, including the SEC, the stock exchanges, any Federal, state, territorial, county, municipal or other  government  or governmental agency, arbitrator, board, body, branch, bureau, commission, court, department, instrumentality, master, mediator, panel, referee, system or other political unit or subdivision or other entity of any of the foregoing, whether domestic or foreign.        “Governmental Authorizations” means all franchises, permits, licenses, approvals, consents and other authorizations of all Governmental Authorities.        “Governmental  Filings”  means  all  filings,  including  franchise  and  similar  tax  filings,  and  the payment of all fees, assessments, interests and penalties associated with such filings with all Authorities.        “Guarantor” means each of (i) Parent, (ii) Originator, (iii) Holdco 6, and (iv) any other person who becomes a guarantor hereunder, and “Guarantors” means collectively, every Guarantor.        “Guaranty  Agreement”  means  each  guaranty  of  payment  and  performance  of  a  Guarantor  in favor  of  the  Administrative  Agent  for  the  benefit  of  the  Secured  Parties, and  any  other  guaranty  of  a Guarantor in favor of the Administrative Agent for the benefit of the Secured Parties, in each case as the same may be amended, modified, or restated from time to time, each in form and substance satisfactory to the Administrative Agent.        “Hazardous Discharge” has the meaning assigned to such term in Section 5.01(m).        “Hazardous  Materials”  means,  any  dangerous,  toxic  or  hazardous  pollutants,  chemicals, contaminants,  wastes,  medical  wastes,  or  substances,  including,  without  limitation,  those  so  identified pursuant  to  the  Comprehensive  Environmental  Response,  Compensation  and  Liability  Act,  42  U.S.C. Section  9601  et  seq.,  or  otherwise  regulated  under  any  other  Environmental  Law  and  specifically including,  without  limitation,  asbestos  and  asbestos  containing  materials,  PCBs,  radon  gas,  petroleum and  petroleum  products,  urea  formaldehyde  and  any  substances  classified  as  being  “in  inventory,” “usable work in process” or similar classification which would, if classified as unusable, be included in the foregoing definition.        “Hedging  Agreements”  means  any  Interest  Hedging  Instrument  or  any  other  interest  rate protection agreement, foreign currency exchange agreement, commodity purchase or option agreement, or any other interest rate hedging device or swap agreement (as defined in 11 U.S.C. § 101 et seq.).        “Holdco 6” means Newtek Business Services Holdco 6, Inc., a Florida corporation.        “Indebtedness” means for any Person (without duplication) (a) all indebtedness created, assumed or incurred in any manner by such Person representing money borrowed (including by the issuance of debt securities), (b) all indebtedness for the deferred purchase price of property or services (other than trade  accounts  payable  arising  in  the  ordinary  course of  business,  (c) all  indebtedness  secured by  any Lien upon property of such Person, whether or not such Person has assumed or become liable for the payment of such indebtedness, (d) all capitalized lease obligations of such Person, (e) all obligations of such Person on or with respect to letters of credit, bankers’ acceptances and other extensions of credit whether  or  not  representing  obligations  for  borrowed  money,  (f)  all  obligations  of  such  Person  to purchase, redeem, retire, defease or otherwise make any payment in respect of any equity interest in such Person or any other Person or any warrant, right or option to acquire such equity interest, valued, in the case  of  a  redeemable  preferred  interest,  at  the  greater  of  its  voluntary  or  involuntary  liquidation                                        - 22- 34881204v6 110062879

 

preference plus accrued and unpaid dividends, and (g) all guarantees of such Person in respect of any of the foregoing.        “Indemnified Party” has the meaning assigned to such term in Section 15.04(b).        “Indemnified Taxes” has the meaning assigned to such term in Section 15.03(a).        “Independent Accountants” has the meaning assigned to such term in Section 8.08.        “Independent Manager” has the meaning assigned to such term in Section 5.05(w).        “Industry Group” means any industry group listed in Schedule 4 by its three-digit NAICS code.        “Ineligible  Loan”  means,  at  any  time,  a  Collateral  Loan,  or  any  portion  thereof,  that  fails  to satisfy  any  of  the  Eligibility  Criteria  after  the  date  of  acquisition  thereof  by  the  Borrower  (i.e., determined as of such date) or that is otherwise unacceptable to Administrative Agent in its reasonable credit judgment.        “Insolvency Event” means with respect to a specified Person, (a) the filing of a decree or order for relief by a court having jurisdiction in the premises in respect of such Person or any substantial part of  its  property  in  an  involuntary  case  under  (i)  the  Bankruptcy  Code  or  (ii)  any  other  applicable insolvency law now or hereafter in effect, (b) the appointing of a receiver, liquidator, assignee, custodian, trustee,  sequestrator  or  similar  official  for  such  Person  or  for  any  substantial  part  of  its  property,  or ordering  the  winding-up  or  liquidation  of  such  Person’s  affairs,  and  in  each  of  (a)  or  (b)  above  such decree or order shall remain unstayed and in effect for a period of thirty (30) consecutive days; (c) the commencement by such Person of a voluntary case under the Bankruptcy Code or any other applicable insolvency law now or hereafter in effect, or the consent by such Person to the entry of an order for relief in an involuntary case under any such law, (d) the consent by such Person to the appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official for such Person  or  for  any  substantial  part  of  its  property,  or  (e)  the  making  by  such  Person  of  any  general assignment for the benefit of creditors, or the failure by such Person generally to pay its debts as such debts become due, or the taking of action by such Person in furtherance of any of the foregoing.        “Instrument” has the meaning specified in Section 9-102(a)(47) of the UCC.        “Interest” means, for all Advances outstanding by a Lender on such day, the product of:                                              1                                      IR  P                                              D       where:        IR    =     the Interest Rate for Advances on such day;        P     =     the principal amount of all Advances on such day; and        D     =     if the applicable Interest Rate is the Base Rate as determined in accordance with                   clause (a) or (b) of the definition thereof, 365 or 366, as applicable, and in all                   other instances, 360.        “Interest  Collections”  means,  with  respect  to  any  Collection  Period  or  the  related Determination Date, without duplication, the sum of:                                       - 23- 34881204v6 110062879

 

            (a)   all  payments  of  interest  and  other  income  received  by  the  Borrower       during  such  Collection  Period  on  all  Collateral  Loans  (including  Ineligible  Loans),       including  the  accrued  interest  (but  excluding  any  applicable  premiums)  received  in       connection with a sale thereof during such Collection Period;              (b)   all  amendment  and  waiver  fees,  late  payment  fees  (including       compensation for delayed settlement or trades), and all protection fees and other fees and       commissions  received  by  the  Borrower  during  such  Collection  Period,  unless  the       Servicer  notifies  the  Administrative  Agent  before  such  Determination  Date  that  the       Servicer  in  its  sole  discretion  has  determined  that  such  payments  are  to  be  treated  as       Principal Collections; and              (c)   commitment fees, facility fees, anniversary fees, ticking fees and other       similar fees received by the Borrower during such Collection Period unless the Servicer       notifies the Administrative Agent before such Determination Date that the Servicer in its       sole  discretion  has  determined  that  such  payments  are  to  be  treated  as  Principal       Collections;        provided that solely after the Reinvestment Period, as to any Defaulted Collateral Loan (and only so  long  as  it  remains  a  Defaulted  Collateral  Loan),  any  amounts  received  in  respect  thereof  will constitute  Principal  Collections  (and  not  Interest  Collections)  until  the  aggregate  of  all  Collections  in respect thereof since it became a Defaulted Collateral Loan equals the outstanding principal balance of such Defaulted Collateral Loan at the time as of which it became a Defaulted Collateral Loan and all amounts received in excess thereof will constitute Interest Collections.        “Interest Coverage Ratio” means, on any Determination Date, the percentage equal to:              (a)   EBITDAInterest  Collections  of  the  Borrower  for  the  twelve  (12)  consecutive       calendar months of the Borrower then most recently completed as of such Determination Date;       divided by              (b)   Interest Expense  ofaccrued  by  the  Borrower  for  the  twelve  (12)  consecutive       calendar months of the Borrower then most recently completed as of such Determination Date;       provided that if twelve (12) consecutive calendar months have not yet elapsed since the       Borrower was formed, the Interest Coverage Ratio shall initially be measured from the       period of the date of formation of the Borrower to the most recently ended month or fiscal       quarter  (as  the  case  may  be),  with  applicable  amounts  in  such  period  annualized  for       purposes of such calculations, and shall subsequently include each period of the last 12       consecutive reported calendar months or four consecutive reported fiscal quarters (as the       case may be) of Borrower.        “Interest Coverage Ratio Test” means a test that will be satisfied on any date of determination if the Interest Coverage Ratio is greater than or equal to 120%, provided that the Interest Coverage Ratio Test shall not be tested until the sixth Determination Date after the Closing Date.        “Interest Expense” means, with reference to any period, the sum of all interest charges (including imputed  interest  charges  with  respect  to  capitalized  lease  obligations  and  all  amortization  of  debt discount and expense) of the Borrower for such period determined on a consolidated basis in accordance with GAAP.                                       - 24- 34881204v6 110062879

 

      “Interest Election Request” means a request by the Borrower to convert or continue a Borrowing in accordance with Section 2.15 in the form attached hereto as Exhibit G.        “Interest Rate” means a rate equal to (i) with respect to a LIBOR Advance, the Alternative Rate plus the Applicable Margin then applicable to such LIBOR Advance or (ii) with respect to a Base Rate Advance,  the  Base  Rate  plus  the  Applicable  Margin  then  applicable  to  such  Base  Rate  Advance; provided, however that with respect to Obligations that accrue interest at the Default Rate pursuant to Section 2.13 or upon the occurrence and during the continuation of an Event of Default, the applicable Interest Rate shall be the Default Rate.        “Interim Order” means an order, judgment, decree or ruling entered after notice and a hearing conducted in accordance with Bankruptcy Rule 4001(c) granting interim authorization, the operation or effect of which has not been stayed, reversed or amended.        “Investment Company Act” means the Investment Company Act of 1940, as amended, and the rules and regulations promulgated thereunder.        “Key Man Event” means the following events: (i) Barry Sloane shall resign, become unable to perform, or cease to serve in his current position as President of Parent and a replacement acceptable to the Lender in its reasonable discretion is not appointed, and (ii) Peter Downs shall resign, become unable to perform, or cease to be employed in his current position as Chief Lending Officer of Parent, and a replacement acceptable to the Lender in its reasonable discretion is not appointed.        “Law”  means  any  action,  code,  consent  decree,  constitution,  decree,  directive,  enactment, finding,  guideline,  law,  injunction,  interpretation,  judgment,  order,  ordinance,  policy  statement, proclamation, promulgation, regulation, requirement, rule, rule of law, rule of public policy, settlement agreement, statute, or writ, of any Governmental Authority, or any particular section, part or provision thereof.        “Lender  Fee  Letter”  means  any  Lender  Fee  Letter  entered  into  between  any  Lender  and  the Borrower.        “Lenders” means the Persons listed on Schedule 1 and any other Person that shall have become a party hereto in accordance with the terms hereof pursuant to an Assignment and Acceptance, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Acceptance.        “LIBOR Advance” means an Advance bearing Interest at the LIBOR Rate.        “LIBOR Rate” means, for any LIBOR Advance, an interest rate per annum (rounded upward, if necessary, to the next higher 1/100th of 1%), as determined by the Administrative Agent, equal to the greater of:              (a)   (i) the  ICE  Benchmark  Administration  Limited  (“ICE”)  London  interbank       offered  rate  for  deposits  for  a  one-month  period  in  Dollars  as  displayed  in  the  Bloomberg       Financial Markets System (or such other service as may be nominated by ICE (or any successor       thereto if ICE is no longer making a London interbank offered rate available) as the information       vendor for the purpose of displaying the London interbank offered rate for Dollar deposits) at       approximately 11:00 a.m. (London time) on such day; or              (b) (ii) if such rate is not published at such time and day for any reason, then the LIBOR             Rate shall be the rate per annum (rounded upwards, if necessary, to the nearest 1/100th                                       - 25- 34881204v6 110062879

 

            of one percent) based on the rates at which Dollar deposits for a one month period are             displayed  on  page  “LIBOR”  of the Reuters Screen as of 11:00 a.m. (London time) on             such day (it being understood that if at least two such rates appear on such page, the rate             will be the arithmetic mean of such displayed rates); provided further, that in the event             fewer than two such rates are displayed, or if no such rate is relevant, the LIBOR Rate             shall be the rate per annum equal to the average of the rates at which deposits in Dollars             are offered by the Administrative Agent at approximately 11:00 a.m. (London time) on             such day to prime banks in the London interbank market for a one month period.; and        Notwithstanding  the  foregoing,  if  the  LIBOR  Rate  as  determined  herein  would  be  a negative number, then the LIBOR Rate shall be deemed to be zero percent (0.00%) for purposes of this Agreement.(b) One half of one percent (0.50%).        “Lien”  means  any  mortgage,  pledge, hypothecation, assignment, encumbrance, lien or security interest  (statutory  or  other),  or  preference,  priority  or  other  security  agreement,  charge  or  preferential arrangement  of  any  kind  or  nature  whatsoever  (including  any  conditional  sale  or  other  title  retention agreement, any financing lease having substantially the same economic effect as any of the foregoing, and the filing authorized by the Borrower of any financing statement under the UCC or comparable law of any jurisdiction).        “Loan” means a SBA Loan.        “Loan Collateral” means, with respect to any Loan, any and all property or interests in property, whether personal property (including without limitation accounts, chattel paper, instruments, documents, deposit accounts, contract rights, general intangibles, inventory or equipment) or real property including the  related  Project  Property,  or  both,  whether  owned  by  the  related  Obligor  or any  other  Person,  that secures a Loan or such Obligor’s obligations under a Loan Note or Loan Document, and all supporting obligations in respect thereof.        “Loan Documents” means, with respect to any Loan, all documents comprising the Borrower’s Loan File and the Loan Notes.        “Loan  File”  means,  with  respect  to  any  Loan,  all  agreements  or  documents  evidencing, guaranteeing, securing, governing or giving rise to such Loan (including those identified on the Collateral Loan File Checklist) including but not limited to (i) the loan or credit agreement evidencing such Loan, (ii) the original Loan Note and an original Assignment of Note with respect thereto executed in blank, (iii) any principal security agreement securing such loan as well as the related mortgage or deed of trust and assignment of mortgage or deed of trust, (iv) any guarantee executed in connection with the Loan Note,  (v)  all  assumption,  modification,  consolidation  or  extension  agreements,  (vi)  an  assignment  of security agreement executed in blank and all other assignments and intervening assignments of security agreements, (vii) any and all financing statements, (viii) with respect to First Lien Loans, (A) an original Mortgage with respect to the related Project Property, (B) an original Assignment of Mortgage from the Originator  endorsed  in  blank  and  (C)  an  original  Assignment  of  Mortgage  from  the  Borrower  and endorsed in blank, (ix) any environmental indemnity agreements, (x) any omnibus assignment in blank, (xi)  all  documents  relating  to  the  related  Project  Property  including  a  survey,  appraisal  report,  title insurance  policy  (or  commitment  for  title  insurance),  environmental  inspection  report,  earthquake certification  with  respect  to  any  Construction  Loan  or  Renovation  Loan,  and  flood  insurance certification, (xiii) life insurance certifications, if any, (xiv) (A) a copy of the SBA Authorization fully executed by the Certified Development Corporation, (B) if such SBA Loan is an Eligible Second Lien Loan,  as  indicated  on  the  Custodial  Delivery Certificate, a certified copy of the SBA Guaranty, (C) a                                       - 26- 34881204v6 110062879

 

copy of the SBA Loan Note, and (D) a copy of the Third Party Lender Agreement, and (xv) all other documents evidencing, securing, guarantying, governing or giving rise to such Collateral Loan.        “Loan Guarantor” means the individual guarantors with respect to a Loan.        “Loan Note” means one or more promissory notes executed by an Obligor evidencing a Loan.        “Majority  Lenders”  means,  as  of  any  date  of  determination,  one  or  more  Lenders  having aggregate Percentages greater than 50%; provided, however that at any time there are two (2) or more Lenders, “Majority Lenders” must include at least two (2) Lenders (who are not Affiliates of each other). To the extent provided in the last paragraph of Section 14.01(c), the Percentage of any Defaulting Lender shall be disregarded in determining Majority Lenders at any time.        “Management” shall have the meaning set forth in the definition of “Environmental Laws”.        “Margin Stock” has the meaning assigned to such term in Regulation U.        “Material Adverse Effect” means a material adverse effect on (a) the business, assets, financial condition,  operations,  performance  or  properties  of  the  Borrower,  the  Servicer  or the  Originator,  both individually or taken as a whole, (b) the validity, enforceability or collectability of this Agreement or any other Facility Document or the validity, enforceability or collectability of the Collateral Loans generally or any material portion of the Collateral Loans, (c) the rights and remedies of the Administrative Agent, the Lenders and the Secured Parties with respect to matters arising under this Agreement or any other Facility  Document  taken  as  a  whole,  (d)  the  ability  of  each  of  the  Borrower,  the  Servicer, or  the Originator to perform its obligations under any Facility Document to which it is a party, or (e) the status, existence, perfection, priority or enforceability of the Administrative Agent’s Lien on the Collateral.        “Material Modification” means, with respect to any Loan, any amendment, waiver, consent or modification of a Loan Document with respect thereto executed or effected after the date on which such Loan is acquired by the Borrower, that:              (a)   reduces or waives one or more interest payments or permits any interest due with       respect to such Loan in cash to be deferred or capitalized and added to the principal amount of       such Loan (other than any deferral or capitalization already expressly permitted by the terms of       its underlying instruments as of the date such Loan was acquired by the Borrower);              (b)   except for permitted liens, contractually or structurally subordinates such Loan       by operation of a priority of payments, turnover provisions or the transfer of assets in order to       limit  recourse to  the  related Obligor  or releases any  material guarantor  or co-Obligor from its       obligations with respect thereto;              (c)   substitutes  or  releases  the underlying  assets  securing  such  Loan  (other  than  as       expressly  permitted  by  the  Loan  Documents  as  of  the  date  such  Loan  was  acquired  by  the       Borrower),  and  such  substitution  or  release  materially  and  adversely  affects  the value  of  such       Loan (as determined by the Administrative Agent in a commercially reasonable manner);              (d)   waives,  extends  or  postpones  any  date  fixed  for  any  scheduled  payment  or       mandatory prepayment of principal on such Loan; or              (e)   reduces (other than a repayment therefor pursuant to its terms) or forgives any       principal amount of such Loan.                                       - 27- 34881204v6 110062879

 

      “Measurement  Date”  means,  (i)  the  Closing  Date,  (ii)  each  Borrowing  Date  and  (iii)  each Monthly Report Determination Date.        “Modified Loan Ratio” means, with respect to any Collection Period, the ratio, expressed as a percentage, of (i) the Aggregate Principal Balance with respect to all Collateral Loans where either (A) a default as to all or any portion of one or more payments of principal and/or interest has occurred with respect to such Collateral Loan or (B) the payment of which has been modified to avoid a default under such Collateral Loan, in the case of each of clauses (A) and (B), at any time during the previous twelve (12)  month  period  divided  by  (ii)  the  average  of  the  Aggregate  Principal  Balance  with  respect  to  all Collateral  Loans  as  of  the  last  day  of  the  prior  Collection  Period  and  the  previous  eleven  Collection Periods.  For purposes of the foregoing definition (x) the numerator in the calculation performed pursuant to clause (i) shall include any loan that was subject to one of the events described in clause (A) or (B) during  such  twelve  (12)  month  period  that  was  sold  by  the  Borrower  during  such  twelve  (12)  month period; and (y) the denominator shall also be increased by the principal balance of any such loan.        “Mohawk Loan” means that certain First Lien Loan with respect to which the Obligor is MHG 164 Sacandaga Road, LLC and/or The Mohawk Companies NY, LLC.        “Money” has the meaning specified in Section 1-201(24) of the UCC.        “Monthly Report” has the meaning specified in Section 8.06(a).        “Monthly Report Determination Date” has the meaning specified in Section 8.06(a).        “Monthly Reporting Date” means the tenthfifteenth (1015th) day of each month; provided that, if any  such  day  is  not  a  Business  Day,  then  such  Monthly  Reporting  Date  shall  be  the  next  succeeding Business Day.        “Moody’s” means Moody’s Investors Service, Inc., together with its successors.        “Mortgage”  means,  the mortgage,  deed  of  trust  or other instrument creating a senior or junior lien on an estate in fee simple interest in real property.        “Multiemployer Plan” means an employee pension benefit plan within the meaning of Section 4001(a)(3) of ERISA that is sponsored by the Borrower or a member of its ERISA Group or to which the Borrower or a member of its ERISA Group is obligated to make contributions or has any liability.        “Net  Aggregate  Exposure  Amount”  means,  at  any  time,  the  aggregate  unfunded  amounts  in respect of all Renovation Loans and Construction Loans at such time.        “Non-Consenting  Lender”  means  any  Lender  that  does  not  approve  any  consent,  waiver  or amendment that (a) requires the approval of all affected Lenders in accordance with the terms of Section 14.01 and (b) has been approved by the Required Lenders.        “Non-Defaulting Lender” means, at any time, each Lender that is not a Defaulting Lender at such time.        “Notice of Borrowing” has the meaning assigned to such term in Section 2.02.        “Notice of Prepayment” has the meaning assigned to such term in Section 2.05.                                        - 28- 34881204v6 110062879

 

      “Obligations” means all indebtedness, whether absolute, fixed or contingent, at any time or from time to time owing by the Borrower to any Secured Party or any Affected Person under or in connection with this Agreement or any other Facility Document, including all amounts payable by the Borrower in respect of the Advances, with interest thereon, and all amounts payable hereunder.        “Obligor” means, in respect of any Loan, the Person primarily obligated to pay Collections in respect of such Loan, including with respect to a SBA Loan the related SBA Loan Obligor.        “OFAC” has the meaning assigned to such term in Section 4.01(f).        “Originator” means Newtek Business Lending, LLC, a Florida limited liability company.        “Other Taxes” has the meaning given in Section 15.03(b).        “Parent” means Newtek Business Services Corp., a Maryland corporation.        “Participant” means any Person to whom a participation is sold as permitted by Section 15.06(c).        “Participation Interest” means an undivided ownership interest in a Loan purchased or acquired by the Borrower.        “PATRIOT Act” has the meaning assigned to such term in Section 15.16.        “Payment Date” means the first (1st) day of each month; provided that, if any such day is not a Business Day, then such Payment Date shall be the next succeeding Business Day.        “PBGC”  means  the  Pension  Benefit  Guaranty  Corporation,  or  any  successor  agency  or  entity performing substantially the same functions.        “Percentage”  of  any  Lender  means,  (a)  with  respect  to  any  Lender  party  hereto  on  the  date hereof, the percentage set forth opposite such Lender’s name on Schedule 1, as such amount is reduced by any Assignment and Acceptance entered into by such Lender with an assignee or increased by any Assignment and Acceptance entered into by such Lender with an assignor, or (b) with respect to a Lender that  has  become  a  party  hereto  pursuant  to  an  Assignment  and  Acceptance,  the  percentage  set  forth therein  as  such  Lender’s  Percentage,  as  such  amount  is  reduced  by  an  Assignment  and  Acceptance entered  into  between  such  Lender  and  an  assignee  or  increased  by  any  Assignment  and  Acceptance entered into by such Lender with an assignor.        “Permitted  Assignee”  means  (i)  an  Affiliate  of  any  Lender,  (ii)  any  Person  who  is  a  Lender immediately prior to any assignment, and (iii) any Person managed by a Lender or any of its Affiliates.        “Permitted Liens” means:              (a)   Liens created in favor of the Administrative Agent hereunder or under the other       Facility Documents for the benefit of the Secured Parties;              (b)   Liens imposed by any Governmental Authority for taxes, assessments or charges       not yet delinquent or which are being contested in good faith and by appropriate proceedings if       adequate  reserves  with  respect  thereto  are  maintained  on  the  books  of  the  Borrower  in       accordance with GAAP; and                                        - 29- 34881204v6 110062879

 

            (c)   customary  rights  of  setoff,  revocation,  refund  or  chargeback  under  deposit       agreements  or  under  the  UCC  or  common  law  of  banks  or  other  financial  institutions  where       Borrower  maintains  deposits  (other  than  deposits  intended  as  cash  collateral)  or  securities       accounts solely to the extent incurred in connection with the maintenance of such accounts in the       ordinary course of business.        “Person”  means  an  individual  or  a  corporation  (including  a  business  trust),  partnership,  trust, incorporated or unincorporated association, joint stock company, limited liability company, government (or an agency or political subdivision thereof) or other entity of any kind.        “Plan”  means  an  employee  pension  benefit  plan  (other  than  a  Multiemployer  Plan)  which  is covered by Title IV of ERISA or subject to the minimum funding standards under Section 412 of the Code that is sponsored by the Borrower or a member of its ERISA Group or to which the Borrower or a member of its ERISA Group is obligated to make contributions or has any liability.        “Platform” means any electronic system, including Intralinks®, ClearPar® and any other internet or extranet-based site, whether such electronic system is owned, operated or hosted by the Administrative Agent, any of their respective Related Parties or any other Person, providing for access to data protected by passcodes or other security system.        “Pledge Agreement” means the Pledge Agreement dated as of the date hereof executed by the Originator in favor of Administrative Agent, and any pledge agreements entered into after the Closing Date by any Credit Party (as required by this Agreement or any other Facility Document), in each case as the same have been or may be amended, modified, or restated from time to time.        “Potential  Servicer  Termination  Event”  means  any  event which,  with  the  passage  of  time,  the giving  of  notice,  or  both,  would  (if  not  cured  or  otherwise  remedied  during  such  time)  constitute  a Servicer Termination Event.        “Predecessor Servicer Work Product” has the meaning specified in Section 11.08(f).        “Prime Rate” means the rate announced by Capital One, N.A. from time to time as its prime rate in the United States, such rate to change as and when such designated rate changes.  The Prime Rate is not intended to be the lowest rate of interest charged by Capital One, N.A. in connection with extensions of credit to debtors.  Capital One, N.A. may make commercial loans or other loans at rates of interest at, above, or below the Prime Rate.        “Principal  Balance”  means,  with  respect  to  any  Loan,  as  of  any  date  of  determination,  the outstanding principal amount of such Loan (excluding any capitalized interest).        “Principal Collections” means, with respect to any Collection Period or the related Determination Date, all amounts received by the Borrower during such Collection Period that do not constitute Interest Collections, including unapplied proceeds of the Advances and any Cash equity contributions.        “Priority of Payments” has the meaning specified in Section 9.01(a).        “Private  Authorizations”  means  all  franchises,  permits,  licenses,  approvals, consents and other authorizations of all Persons (other than Governmental Authorities).        “Proceeds”  has,  with  reference  to  any  asset  or  property,  the  meaning  assigned  to  it  under  the UCC and, in any event, shall include, but not be limited to, any and all amounts from time to time paid or                                       - 30- 34881204v6 110062879

 

payable  under  or  in  connection  with  such  asset  or  property  including  interest,  principal,  insurance proceeds,  fees,  settlement  payments,  refinancing  amounts,  rent,  like-kind  payments,  recoveries  and guaranty payments.        “Prohibited Transaction” means a transaction described in Section 406(a) of ERISA, that is not exempted by a statutory or administrative or individual exemption pursuant to Section 408 of ERISA.        “Project”  means  the  purchase  or  lease,  and/or  improvement  or  renovation  of  long-term  fixed assets by an Obligor for use in its business operations.        “Project Property” means one or more long-term fixed assets, such as land, buildings, machinery, and equipment, acquired or improved by an Obligor for use in its business operations with the proceeds of a Loan and in accordance with the requirements of the SBA 504 Loan Program.        “Purchase  and  Contribution  Agreement”  means  that  certain  Purchase  and  Contribution Agreement dated as of the Closing Date between the Originator, as seller, and the Borrower, as buyer.        “QFC”  has  the  meaning  assigned  to  the  term “qualified  financial  contract”  in,  and  shall  be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).        “QFC Credit Support” has the meaning set forth in Section 15.22.        “QIB” has the meaning specified in Section 15.06(e).        “Qualified Institution” means a depository institution or trust company organized under the laws of  the  United  States  of  America  or  any  one  of  the  States  thereof  or  the  District  of  Columbia  (or  any domestic branch of a foreign bank), (a) that has either (i) a long-term unsecured debt rating of “A” or better by S&P and “A2” or better by Moody’s or (ii) a short-term unsecured debt rating or certificate of deposit rating of “A-1” or better by S&P or “P-1” or better by Moody’s, (b) the parent corporation of which has either (i) a long-term unsecured debt rating of “A” or better by S&P and “A2” or better by Moody’s or (ii) a short-term unsecured debt rating or certificate of deposit rating of “A-1” or better by S&P and “P-1” or better by Moody’s, or (c)(i) is otherwise acceptable to the Administrative Agent and (ii) the deposits of which are insured by the Federal Deposit Insurance Corporation.        “QIB” has the meaning specified in Section 15.06(e).         “Qualified Purchaser” has the meaning specified in Section 15.06(e).        “Quarterly Certification” means a quarterly Compliance Certificate in the form attached hereto as  Exhibit  J,  certifying  the  calculation  of  the  Adjusted  Net  Investment  Income  of  the  Parent  and certifying compliance  with the  Asset  Coverage  Ratio  Test as  of  the  applicable  Quarterly Certification Determination Date.        “Quarterly Certification Date” means the forty-fifth (45th) day following the most recently ended fiscal  quarter;  provided,  that  if any  such  day  is  not  a  Business  Day,  then  such  Quarterly Certification Date shall be the next succeeding Business Day.        “Quarterly Determination Date” means the last day of the fiscal quarter most recently ended prior to the Quarterly Certification Date.           “Register” has the meaning specified in Section 15.06(d).                                       - 31- 34881204v6 110062879

 

      “Registered Holders” has the meaning set forth in Code of Federal Regulations, Chapter I, Part 120, Subpart F (cited as 13 C.F.R. Section 120.600(i)) or any successor regulation.        “Regulation T”, “Regulation U” and “Regulation X” mean Regulation T, U and X, respectively, of the Board of Governors of the Federal Reserve System, as in effect from time to time.        “Regulatory Change” has the meaning specified in Section 2.09(a).        “Reinvestment Period” means the period from and including the Closing Date to and including the earliest of (a) July 31, 2020November 4, 2022 (or such later date as may be agreed by the Borrower and  each  of  the  Lenders  and  notified  in  writing  to  the  Administrative  Agent),  (b)  the  date  of  the termination  of  the  Commitments  pursuant  to  Section  6.02  or  (c)  the  date  of  the  termination  of  the Commitments in whole pursuant to Section 2.06.        “Related Parties” means, with respect to any specified Person, such Person’s Affiliates and the respective  partners,  directors,  officers,  employees,  agents,  trustees,  administrators,  managers,  advisors and representatives of such Person and such Person’s Affiliates.        “Release”  means  any  release,  discharge  or  disposal  of,  spill,  leak,  pump,  pour, emit, emptied, injected, leached, dumped or allowed to escape.        “Renovation Loan” means a Collateral Loan where the proceeds will be used for the conversion or renovation of existing facilities.        “REO Property” means real estate owned by Borrower or the Originator, which real estate has been acquired and is owned by such Person as a result of foreclosure or acceptance by such Person of a deed  in  lieu  of  foreclosure,  or  similar  transaction,  whether  previously  constituting  Loan  Collateral  or otherwise,  together  with  all  of  such  Person’s  now  owned  or  hereafter  acquired  interests  in  the improvements thereon, the fixtures attached thereto and the easements appurtenant thereto.        “Requested Amount” has the meaning assigned to such term in Section 2.02.        “Required  Lenders”  means,  as  of  any  date  of  determination,  one  or  more  Lenders  having aggregate Percentages greater than or equal to 66 2/3%; provided, however that at any time there are two (2) or more Lenders, “Required Lenders” must include at least two (2) Lenders (who are not Affiliates of each  other).  To  the  extent  provided  in  the  last  paragraph  of  Section  14.01(c),  the  Percentage  of  any Defaulting Lender shall be disregarded in determining Required Lenders at any time.        “Reserves”  means  such  reserves against Collateral Loans, Availability, or the Borrowing Base that Administrative Agent may, in its reasonable credit judgment, establish from time to time.  Without limiting the generality of the foregoing, Reserves established to ensure the payment of accrued Interest Expense or Indebtedness shall be deemed to be a reasonable exercise of Administrative Agent’s credit judgment.        “Responsible  Officer”  means  (a)  in  the  case  of  a  corporation,  partnership  or  limited  liability company  that,  pursuant  to  its  Constituent  Documents,  has  officers,  any  chief  executive  officer,  chief financial  officer,  chief  administrative  officer,  president,  senior  vice  president,  vice president,  assistant vice president, treasurer, director, manager, secretary or assistant secretary, (b) in the case of a limited partnership, the Responsible Officer of the general partner, acting on behalf of such general partner in its capacity as general partner, (c) in the case of a limited liability company that does not have officers, any Responsible  Officer  of  the  sole  member,  managing  member  or  manager,  acting  on  behalf  of  the  sole                                       - 32- 34881204v6 110062879

 

member, managing member or manager in its capacity as sole member, managing member or manager, (d) in the case of a trust, the Responsible Officer of the trustee, acting on behalf of such trustee in its capacity  as  trustee,  and  (e)  in  the  case  of  the  Backup  Servicer,  the  Custodian  or  the  Administrative Agent, a vice president, assistant vice president, secretary, assistant secretary or officer of the Backup Servicer,  the  Custodian  or  the  Administrative  Agent  as  applicable,  in  each  case  responsible  for  the administration of this Agreement.        “Restricted Payments” means the declaration of any distribution or dividends or the payment of any other amount (including in respect of redemptions permitted by the Constituent Documents of the Borrower) to any shareholder, partner, member or other equity investor in the Borrower on account of any share, membership interest, partnership interest or other equity interest in respect of the Borrower, or the payment on account of, or the setting apart of assets for a sinking or other analogous fund for, or the purchase or other acquisition of any class of stock of or other equity interest in the Borrower or of any warrants, options or other rights to acquire the same (or to make any “phantom stock” or other similar payments in the nature of distributions or dividends in respect of equity to any Person), whether now or hereafter  outstanding,  either  directly  or  indirectly,  whether  in  cash,  property  (including  marketable securities),  or  any  payment  or  setting  apart  of  assets  for  the  redemption,  withdrawal,  retirement, acquisition, cancellation or termination of any share, membership interest, partnership interest or other equity interest in respect of the Borrower.        “Review  Procedures”  means  the  review  procedures  attached  to  the  Custodial  Agreement substantially in the form set forth in Schedule 10 attached hereto.        “S&P” means Standard & Poor’s Ratings Group.        “SBA”  means  the  United  States  Small  Business  Administration  or  any  other  federal  agency administering the SBA Act.        “SBA  504  Loan  Program”  means  the  Certified  Development  Company/504  Loan  Program authorized by Title V of the Small Business Investment Act of 1958 (15 U.S.C. § 695, et seq.) and all laws,  rules,  regulations  and  significant  guidance  with  respect  thereto  including  but  not  limited  to  the regulations set forth in Part 120 of Title 13 of the Code of Federal Regulations, in each case as the same may be issued or revised from time to time.        “SBA Act” means the Small Business Act of 1953, codified at 15 U.S.C. 631 et. seq., as the same may be amended from time to time.        “SBA  Authorization”  means,  with  respect  to  a  SBA  Loan,  the  Authorization  for  Debenture Guarantee (SBA 504 loan) from the SBA issued under the SBA 504 Loan Program providing the terms and conditions under which the SBA will guarantee a debenture the proceeds of which will be used to refinance a SBA Loan.        “SBA  Guaranty”  means,  with  respect  to  any  SBA  Loan,  the  guarantee  by  the  SBA  of  the debenture backing such SBA Loan under the SBA 504 Loan Program.        “SBA Loan” means a Loan or any other extension of credit made in compliance with the SBA 504 Loan Program to finance a Project.        “SBA  Loan  Borrowing  Base  Inclusion  Criteria”  means,  with  respect  to  any  SBA  Loan,  the following criteria:                                        - 33- 34881204v6 110062879

 

            (a)   the FICO Score for any Loan Guarantor owning more than 20% of the Obligor is       not less than 625;              (b)   the historical pro forma debt service coverage ratio (or in the event there are no       historical  financial  statements  for  such  Obligor,  the  projected  debt  service  coverage  ratio)  as       determined by the Borrower in the manner provided in the Loan Documents and acceptable to       the Administrative Agent in its sole discretion is greater than or equal to (i) if such SBA Loan is       not  a  Special  Purpose  Loan  and  the  related  Project  Property  is  not  an  Approved  Hospitality       Property, 1.10 to 1.00 or (ii) if such SBA Loan is a Special Purpose Loan or the related Project       Property is an Approved Hospitality Property, 1.20 to 1.00;              (c)   the ratio (expressed as a percentage) of (i) the Principal Balance of such SBA       Loan  that  is  a  First  Lien  Loan  to  (ii)  the  Appraised  Value  of  the  related  Project  Property  as       determined  by  the  Borrower  in  a  manner  acceptable  to  the  Administrative  Agent  in  its  sole       discretion is less than or equal to (A) if such SBA Loan is not a Special Purpose Loan and the       related Project Property is not an Approved Hospitality Property, 65% or (B) if such SBA Loan       is a Special Purpose Loan or the related Project Property is an Approved Hospitality Property,       60%;              (d)   with  respect  to  the  applicable  Project  Property,  the  ratio  (expressed  as  a       percentage) of (i) the aggregate Principal Balance of such SBA Loan together with any additional       First  Lien  Loan  or  Second  Lien  Loan  secured  by  such  Project  Property  to  (ii)  the  Appraised       Value of the related Project Property as determined by the Borrower in a manner acceptable to       the Administrative Agent in its sole discretion (x) is less than or equal to 90% or (y) is greater       than 90% if the amount by which such ratio exceeds 90% is funded by the Borrower solely using       funds  available  to  the  Borrower  (but  excluding,  for  the  avoidance  of  doubt,  Advances       hereunder); and              (e)   no Loan Guarantor owning 51% or more of the Obligor has been a debtor in the       five  (5)  years  prior  to  the  making  of  the  SBA  Loan,  and  none  of  such  Loan  Guarantor’s       properties have been subject to a foreclosure proceeding in the five (5) years prior to the making       of the SBA Loan.        “SBA Loan Obligor” means any Person, other than the SBA, who is or may become obligated to Borrower under an SBA Loan.        “SBA Rules and Regulations” means the SBA Act, as amended, any other legislation binding on SBA  relating  to  financial  transactions,  any  “Loan  Guaranty  Agreement,”  all  rules  and  regulations promulgated  from  time to time  under the  SBA Act,  and  SBA  Standard Operating Procedures and any Official Notices issued by the SBA, all as from time to time in effect.        “SBA Standard Operating Procedures and Official Notices” means Public Law 85-536; the Rules and  Regulations,  as  defined  in  13  CFR  Part  120,  “Business  Loans”  and  13  CFR  Part  121,  “Size Standards”; Standard Operating Procedure 504 Loan Servicing and Liquidation SOP 50-55, in each case as may be published and/or amended from time to time.        “SEC” means the Securities and Exchange Commission or any other governmental authority of the United States of America at the time administrating the Securities Act, the Investment Company Act or the Exchange Act.                                        - 34- 34881204v6 110062879

 

      “Second  Amendment”  means  that  certain  Amendment  to  Credit  Agreement  dated  as  of September 20, 2019 and effective as of April 30, 2019, by and among Borrower, Servicer, Lenders, the Administrative Agent, and the other parties thereto.        “Second Lien Loan” means any SBA Loan that:              (a)   is  administered  in  accordance  with  and  is  in  compliance  with  all  rules,       regulations and guidelines of the SBA and the SBA 504 Loan Program (notwithstanding that a       CDC  is  responsible  for  ensuring  eligibility  under  the  SBA  504  Loan  Program  with  respect  to       Second Lien Loans) including, without limitation, all terms set forth in the related Third Party       Lender Agreement and the SBA Authorization;              (b)   is secured by a valid second priority perfected mortgage, deed of trust, security       interest or Lien in, to or on the Project Property subject only to a First Lien Loan and customary       Liens for taxes or regulatory charges not then due and payable and other permitted Liens under       the Loan Documents, provided that such permitted Liens do not directly secure indebtedness for       borrowed money; and              (c)   is in an amount set forth in the related SBA Authorization.        “Secured Parties” means the Administrative Agent, the Backup Servicer, any Successor Servicer, the Lenders and their respective permitted successors and assigns.        “Securities  Act”  means  the  Securities  Act  of  1933,  as  amended,  and  the rules  and  regulations promulgated thereunder, all as from time to time in effect.        “Securitization Event” means a conduit sale, securitization, or securitization type transaction of SBA Loans, in each case in accordance with the SBA Rules and Regulations.        “Senior Securities” means senior securities (as such term is defined and determined pursuant to the  Investment  Company  Act  and  any  orders  of  the  SEC  issued  to  the  Parent  or  any  of  its  Affiliates thereunder).        “Servicer” has the meaning assigned to such term in the introduction of this Agreement.        “Servicer Expense Cap” means, as of any Payment Date, an amount equal to $25,000.        “Servicer Termination Event” means the occurrence of any of the events, acts or circumstances set forth in Section 6.03.        “Servicing Fees” means the monthly fee, accruing from the Closing Date, payable in arrears on each Payment Date, in an amount equal to 0.50% per annum (calculated on the basis of a 360-day year and  the  actual  number  of  days  elapsed)  of the  Monthly Asset  Amount; provided,  however, that  if  the Backup  Servicer  is  acting  as  successor  Servicer,  such  fee  shall  be  in  an  amount  equal  to  1.00%  per annum with a monthly minimum of $6,500.        “Servicing Standard” means, with respect to any Collateral Loans, to service and administer such Collateral  Loans  in  accordance  with  the  Loan  Documents,  SBA  Standard  Operating  Procedures  and Official Notices with respect to SBA Loans, and all customary and usual servicing practices (a) which are  consistent  with  the  higher  of:   (i)  the  customary  and  usual  servicing practices  that  a  prudent  loan investor or lender would use in servicing loans like the Collateral Loans for its own account, and (ii) the                                       - 35- 34881204v6 110062879

 

same  care,  skill,  prudence  and  diligence  with  which  the  Borrower  causes  loans  to  be  serviced  and administered  for  its  own  account  or  for  the  account  of  others;  (b)  to  the  extent  not  inconsistent  with clause (a), with a view to maximize the value of the Collateral Loans; and (c) without regard to:  (i) any relationship  that  the  Borrower  or  any  Affiliate  of  the  Borrower  may  have  with  any  Obligor  or  any Affiliate of any Obligor, (ii) the Borrower’s obligations to incur servicing and administrative expenses with  respect  to  a  Collateral  Loan,  (iii)  the  Borrower’s  right  to  receive  compensation  for  its  services hereunder  or  with  respect  to  any  particular  transaction,  (iv)  the  ownership  by  the  Borrower  or  any Affiliate thereof of any retained interest or one or more loans of the same class as any Collateral Loans, (v) the ownership, servicing or management for others by the Borrower of any other loans or property by the Borrower, or (vi) any relationship that the Borrower or any Affiliate of the Borrower may have with any holder of other loans of the Obligor with respect to such Collateral Loans; provided, however, if the Backup  Servicer  is  acting  as  Successor  Servicer,  “Servicing  Standard”  shall  mean  to  service  and administer  Collateral  Loans  in  accordance  with  the  standard  the  Successor  Servicer  uses  to  service similar assets for its own account or for the accounts of others, in each case in accordance with all rules, regulations and guidelines of the SBA and the SBA 504 Loan Program with respect to SBA Loans.        “Sixth Amendment” means that certain Sixth Amendment to Credit Agreement, dated as of the Sixth  Amendment  Closing  Date,  by  and  among  Borrower,  Servicer,  Lenders,  and  the  Administrative Agent.        “Sixth Amendment Closing Date” means November 4, 2020.        “Solvent” means, with respect to any Person, that as of the date of determination, both (i) (a) the sum  of  such  Person’s  debt  (including  contingent  liabilities)  does  not  exceed  the  present  fair  saleable value  of  such  Person’s  assets;  (b)  such  Person’s  capital  is  not  unreasonably  small  in  relation  to  its business  as contemplated  on the Closing Date and will not be unreasonably small with respect to any transaction contemplated to be undertaken after the Closing Date; and (c) such Person has not incurred debts beyond its ability to pay such debts as they become due; and (ii) such Person is “solvent” within the meaning given that term under the Bankruptcy Code, Section 271 of the Debtor and Creditor Law of the State of New York and applicable laws relating to fraudulent transfers under the Bankruptcy Code and New York State law.  For purposes of this definition, the amount of any contingent liability at any time shall be computed as the amount that, in light of all of the facts and circumstances existing at such time, represents  the  amount  that  can  reasonably  be  expected  to  become  an  actual  or  matured  liability (irrespective  of  whether  such  contingent  liabilities  meet  the  criteria  for  accrual  under  Statement  of Financial Accounting Standards No. 5).        “Special  Purpose  Entity”  means  a  limited  liability  company  or  other  business  entity  that  is created  with  the  purpose  of  being  “bankruptcy  remote”  and  whose  organizational  documents  contain restrictions on its activities and impose requirements intended to preserve such entity’s separateness that are substantially similar to the special purpose provisions of the Borrower Limited Liability Company Agreement.        “Special  Purpose  Loan”  means  a  Loan  where  (i)  the  Obligor  (or  “Operating Company”  if  the Obligor is an “Eligible Passive Company”) has operated for two years or less and/or (ii) the “Project” involves the acquisition, construction, conversion or expansion of a limited or single purpose building or structure, all within the meaning of 13 CFR §120.920.        “Sterling Bank Facility” means those loans and other extensions of credit made under that certain Amended  and  Restated  Loan  and  Security  Agreement  dated  as  of  December  7,  2015  among  CDS Business  Services,  Inc. d/b/a  Newtek  Business Credit  Solutions,  a Delaware corporation, as borrower, Sterling National Bank, as agent and lender, and BankUnited, N.A., as lender, for the financing of SBA                                       - 36- 34881204v6 110062879

 

Loans, and any documents relating thereto, including any guarantees by Parent, as such agreements may be amended, amended and restated, supplemented, or otherwise modified from time-to-time.        “Subject Laws” has the meaning assigned to such term in Section 4.01(f).        “Subordinated  Debt”  means  any  Indebtedness  which,  in  each  case,  is  subordinated  in  right  of payment to the prior payment of the Obligations pursuant to subordination provisions approved in writing by the Administrative Agent and is otherwise pursuant to documentation that is, which is in an amount that is, and which contains interest rates, payment terms (including, without limitation, no scheduled or required  principal  payments  prior  to  the  Commitment  Termination  Date),  maturities,  amortization schedules, covenants, defaults, remedies and other material terms that are in form and substance, in each case satisfactory to the Administrative Agent.        “Subsidiary” means, as to any Person, a corporation, partnership or other entity of which shares of  stock  or  other  ownership  interests  having  ordinary  voting  power  (other  than  stock  or  such  other ownership  interests  having  such  power  only  by  reason  of  the  happening  of  a  contingency)  to  elect  a majority of the board of directors or other managers of such corporation, partnership or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly, through one or more intermediaries, or both, by such Person.        “Substitute Loan” has the meaning assigned to such term in Section 10.03(a).        “Successor Servicer” has the meaning assigned to such term in Section 11.08(a).        “Supported QFC” has the meaning set forth in Section 15.22.        “Taxes” has the meaning assigned to such term in Section 15.03(a).        “Third Amendment” means  that certain  Amendment  to  Credit  Agreement dated as of July 31, 2020,  by  and  among  Borrower,  Servicer,  Lenders,  the  Administrative  Agent,  and  the  other  parties thereto.        “Third Party Lender Agreement” means SBA Form 2287 between the Originator or applicable lender and a CDC that memorializes the agreement among the lender, the CDC and the SBA and outlines the parties’ rights and responsibilities with regard to a particular SBA Loan.        “Type” means, with respect to a Borrowing, a Base Rate Advance, or a LIBOR Advance.        “UCC” means the Uniform Commercial Code, as from time to time in effect in the State of New York;  provided  that  if,  by  reason  of  any  mandatory  provisions  of  law,  the  perfection,  the  effect  of perfection  or  non-perfection  or  priority  of  the  security  interests  granted  to  the  Administrative  Agent pursuant to this Agreement are governed by the Uniform Commercial Code as in effect in a jurisdiction of  the  United  States  of  America  other  than  the  State  of  New  York,  then  “UCC”  means  the  Uniform Commercial  Code  as  in  effect  from  time  to  time  in  such  other  jurisdiction  for  purposes  of  such perfection, effect of perfection or non-perfection or priority.        “Unseasoned Second Lien Loan” means, as of any date of determination, a Second Lien Loan that was originated forty-five (45) days or less prior to such date.        “Unused Line Fees” means, with respect to each Lender, as of any date of calculation, an amount equal to the sum of the product of (i) the Unused Fee Rate (as defined below), times (ii) the difference                                       - 37- 34881204v6 110062879

 

between (1) such Lender’s Commitment on such day minus (2) the outstanding principal balance of the Advances of such Lender on such day, divided by (iii) 360.  As used herein, “Unused Fee Rate”, as of any date, means, if the average outstanding principal balance of all the Advances (i) is less than 50% of the Facility Amount, 0.75% per annum; (ii) is greater than or equal to 50% of the Facility Amount but less than 75% of the Facility Amount, 0.50% per annum; and (iii) is greater than or equal to 75% of the Facility  Amount,  0.35%  per  annum,  provided  that  notwithstanding  anything  in  this  definition,  if  a Securitization Event occurs, the Unused Fee Rate shall be 0.35% per annum for the period from the date of the Securitization Event until the date that is six (6) months after such Securitization Event.        “U.S. Special Resolution Regimes” has the meaning set forth in Section 12.30.        “Volcker Rule” means the common rule entitled “Proprietary Trading and Certain Interests and Relationships with Covered Funds” (commonly known as the “Volcker Rule”) published at 79 Fed. Reg. 5779 et seq.        “Warranty  Loan”  means  an  “Ineligible  Loan”  as  defined  in  the  Purchase  and  Contribution Agreement.        “Withdrawal  Liability”  means  liability  to  a  Multiemployer  Plan  as  a  result  of  a  complete  or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA.        “Write-Down  and  Conversion  Powers” means,  with  respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.        Section 1.02. Rules of Construction.  For all purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires (i) singular words shall connote the plural as well as the singular, and vice versa (except as indicated), as may be appropriate, (ii) the words “herein,” “hereof”  and  “hereunder”  and  other  words  of  similar  import  used  in  this  Agreement  refer  to  this Agreement as a whole and not to any particular article, schedule, section, paragraph, clause, exhibit or other subdivision, (iii) the headings, subheadings and table of contents set forth in this Agreement are solely for convenience of reference and shall not constitute a part of this Agreement nor shall they affect the  meaning,  construction  or  effect  of  any  provision  hereof,  (iv)  references  in  this  Agreement  to “include” or “including” shall mean include or including, as applicable, without limiting the generality of any description preceding such term, and for purposes hereof the rule of ejusdem generis shall not be applicable to limit a general statement, followed by or referable to an enumeration of specific matters, to matters similar to those specifically mentioned, (v) each of the parties to this Agreement and its counsel have reviewed and revised, or requested revisions to, this Agreement, and the rule of construction that any ambiguities are to be resolved against the drafting party shall be inapplicable in the construction and interpretation of this Agreement, (vi) any definition of or reference to any Facility Document, agreement, instrument  or  other  document  herein  shall  be  construed  as  referring  to  such  agreement,  instrument  or other  document  as  from  time  to  time  amended,  supplemented  or  otherwise  modified  (subject  to  any restrictions  on  such  amendments,  supplements  or  modifications  set  forth  herein),  (vii)  any  reference herein to any Person shall be construed to include such Person’s successors and assigns (subject to any restrictions  set  forth  herein  or  in  any  other  applicable  agreement),  (viii)  any  reference  to  any  law  or regulation herein shall refer to such law or regulation as amended, modified or supplemented from time to time, and (ix) unless otherwise provided herein, each reference to any time means New York, New York time.                                       - 38- 34881204v6 110062879

 

      Section 1.03. Computation of Time Periods.  Unless otherwise stated in this Agreement, in the computation of a period of time from a specified date to a later specified date, the word “from” means “from  and  including”  and  the  words  “to”  and  “until”  both  mean  “to  but  excluding”.   Periods  of days referred  to  in  this  Agreement  shall  be  counted  in  calendar  days  unless  Business  Days  are  expressly prescribed.        Section 1.04. Collateral  Value  Calculation  Procedures.   In  connection  with  all  calculations required  to  be  made  pursuant  to  this  Agreement  with  respect  to  any  payments  on  any  other  assets included  in  the  Collateral,  with  respect  to  the  sale  of  and  reinvestment  in  Collateral  Loans,  and  with respect  to  the  income  that  can  be  earned  on  any  amounts  that  may  be  received  for  deposit  in  the Collection Account, the provisions set forth in this Section 1.04 shall be applied.  The provisions of this Section 1.04 shall be applicable to any determination or calculation that is covered by this Section 1.04, whether or not reference is specifically made to Section 1.04, unless some other method of calculation or determination is expressly specified in the particular provision.              (a)   For  purposes of calculating Availability, the Availability Test, and the Interest       Coverage Ratio Test, except as otherwise specified in Availability, the Availability Test, and the       Interest Coverage Ratio Test, such calculations will not include scheduled interest and principal       payments  on  Defaulted  Loans  and  Ineligible  Loans  unless or  until  such  payments are  actually       made.              (b)   References  in  the  Priority  of  Payments  to  calculations  made  on  a  “pro  forma       basis” shall mean such calculations after giving effect to all payments, in accordance with the       Priority of Payments, that precede (in priority of payment) or include the clause in which such       calculation is made.              (c)   References in this Agreement to the Borrower’s “purchase” or “acquisition” of a       Loan  include  references  to  the  Borrower’s  acquisition  of  such  Loan  by  way  of  a  sale  and/or       contribution  from  the  Originator  and  the  Borrower’s  making  or  origination  of  such  Loan.       Portions  of  the  same  Loan  acquired  by  the  Borrower  on  different  dates  (whether  through       purchase, receipt by contribution or the making or origination thereof, but excluding subsequent       draws under Delayed Drawdown Loans) will, for purposes of determining the purchase price of       such  Loan,  be  treated  as  separate  purchases  on  separate  dates  (and  not  a  weighted  average       purchase price for any particular Loan).              (d)   For  the  purposes  of  calculating  compliance  with  each  of  the  Concentration       Limitations all calculations will be rounded to the nearest 0.01%.              (e)   Notwithstanding  any  other  provision  of  this  Agreement  to  the  contrary,  all       monetary calculations under this Agreement shall be in Dollars.  For purposes of this Agreement,       calculations with respect to all amounts received or required to be paid in a currency other than       Dollars shall be valued at zero.        Section 1.05. Agreement to be Construed as a Loan.  It is the intention of the parties hereto that  the  transactions  hereunder  be  construed  as  loans  made  by  the  Lenders  secured  by  the  Collateral. This Agreement shall not be construed as an issuance of a security by the Borrower or a purchase thereof by the Lenders.        Section 1.06. Divisions.  For all purposes under the Loan Documents, in connection with any Division  or  plan  of  division  under  Delaware  Law  (or  any  comparable  event  under  a  different jurisdiction’s Laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right,                                       - 39- 34881204v6 110062879

 

obligation  or liability  of a different Person, then it shall be deemed to have been transferred from the original  Person  to  the  subsequent  Person,  and  (b)  if  any  new  Person  comes  into  existence,  such  new Person  shall be  deemed  to  have been  organized  on  the  first  date  of  its  existence  by  the holders of its Capital Stock at such time.                                   ARTICLE II                                   ADVANCES        Section 2.01. Revolving Credit Facility.  On the terms and subject to the conditions hereinafter set  forth,  including  Article  III,  each  Lender  severally  agrees  to  make loans  to  the  Borrower  (each, an “Advance”) from time to time on any Business Day during the period from the Funding Effective Date until  the  Commitment  Termination  Date,  on  a  pro  rata  basis  in  each  case  in  an  aggregate  principal amount at any one time outstanding up to but not exceeding such Lender’s Commitment and, as to all Lenders, in an aggregate principal amount up to but not exceeding the Availability, in each case as then computed.  Each such borrowing of an Advance on any single day is referred to herein as a “Borrowing”. Within such limits and subject to the other terms and conditions of this Agreement, the Borrower may borrow (and re-borrow) Advances under this Section 2.01 and prepay Advances under Section 2.05.        Section 2.02. Making of the Advances.  If the Borrower desires to make a Borrowing under this Agreement, the Borrower shall give the Administrative Agent a written notice (each, a “Notice of Borrowing”) for such Borrowing (which notice shall be irrevocable and effective upon receipt) not later than (a) if Capital One, N.A. is the only Lender, 5:00 p.m. (New York time), and (b) if there are two (2) or more Lenders, 12:00 noon (New York time), in each case on the Business Day prior to the day of the requested Borrowing; provided, however that notwithstanding anything contained herein to the contrary, no more than five (5) such Advances may be made in a calendar week unless otherwise agreed to by the Administrative Agent.  For the avoidance of doubt, any Advance that is deemed to have been requested pursuant to Section 2.04(b), shall not constitute an Advance for purposes of such weekly Advance limit. A  Notice  of  Borrowing  received  after  12:00  noon  (New  York  time)  shall  be  deemed  received  on  the following Business Day.        Each Borrowing shall bear interest at the Alternative Rate until the Borrower elects to convert such Borrowing to a different Interest Rate as provided in Section 2.15.              (a)   Each Notice of Borrowing shall be substantially in the form of Exhibit A, dated       the date the request for the related Borrowing is being made, signed by a Responsible Officer of       the  Borrower,  shall  attach  a  Borrowing  Base  Calculation  Statement  as  of  the  Borrowing  Date       after giving effect to the requested Borrowing, and shall otherwise be appropriately completed.       The proposed Borrowing Date specified in each Notice of Borrowing shall be a Business Day       falling  on  or  prior  to  the  Commitment  Termination  Date,  and  the  amount  of  the  Borrowing       requested  in  such  Notice  of  Borrowing  (the  “Requested  Amount”)  shall  be  equal  to  at  least       $50,000.              (b)   Promptly  following  receipt  of  a  Notice  of  Borrowing  in  accordance  with  this       Section, the Administrative Agent shall advise each applicable Lender of the details thereof and       of the amounts of such Lender’s Advance to be made as part of the requested Borrowing.              (c)   Each Lender shall, not later than 1:00 p.m. (New York time) on each Borrowing       Date, make its Percentage of the applicable Requested Amount on each Borrowing Date by wire       transfer of immediately available funds to the Borrower Account.                                       - 40- 34881204v6 110062879

 

      Section 2.03. Evidence of Indebtedness.  (a) Maintenance of Records by Lender.  Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrower to it and resulting from the Advances made by such Lender to the Borrower, from time to  time,  including  the  amounts  of  principal  and  interest  thereon  and  paid  to  it,  from  time  to  time hereunder, provided that the failure of any Lender to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrower to repay the Advances in accordance with the terms of this Agreement.              (a)   Maintenance  of  Records  by  Administrative  Agent.   The  Administrative  Agent       shall maintain records in which it shall record (i) the amount of each Advance made hereunder,       (ii) the amount of any principal or interest due and payable or to become due and payable from       the  Borrower  to  each  Lender  hereunder,  and  (iii)  the  amount  of  any  sum  received  by  the       Administrative Agent hereunder for the account of the Lenders and each Lender’s share thereof.              (b)   Effect  of  Entries.   The  entries  made  in  the  records  maintained  pursuant  to       paragraph (a) or (b) of this Section shall be prima facie evidence, absent obvious error, of the       existence  and  amounts  of  the  obligations  recorded  therein;  provided  that  the  failure  of  any       Lender or the Administrative Agent to maintain such records or any error therein shall not in any       manner affect the obligation of the Borrower to repay the Advances in accordance with the terms       of this Agreement.        Section 2.04. Payment of Principal and Interest.  The Borrower shall pay principal and Interest on the Advances as follows:              (a)   100%  of  the  outstanding  principal  amount  of  each  Advance,  together  with  all       accrued  and  unpaid  Interest  thereon,  and  all  accrued  and  unpaid  fees  under  the  Facility       Documents shall be payable on the Final Maturity Date.              (b)   Interest  shall  accrue  on  the  unpaid  principal  amount  of  each  Advance  at  the       applicable Interest Rate from the date of such Advance until such principal amount is paid in full.       The  Administrative  Agent  shall  determine  the  unpaid  Interest  and  Unused  Line  Fees  payable       thereto prior to each Payment Date (using the applicable Interest Rate for each day) to be paid by       the Borrower with respect to each Advance on each Payment Date and shall advise the Borrower       thereof on the Business Day prior to such Payment Date. The Administrative Agent shall send a       consolidated invoice of all such Interest and Unused Line Fees to the Borrower on the Business       Day following determination of such amounts.              (c)   Accrued  Interest  on  each  Advance  shall  be  payable  in  arrears  (x)  on  each       Payment  Date and  (y)  in  connection  with  any prepayment in full of the Advances pursuant to       Section  2.05(a);  provided  that  (i)  with  respect  to  any  prepayment  in  full  of  the  Advances       outstanding, accrued Interest on such amount to but excluding the date of prepayment may be       payable on such date or as otherwise agreed to between the Lenders and the Borrower and (ii)       with  respect  to  any  partial  prepayment  of  the  Advances  outstanding,  accrued  Interest  on  such       amount to but excluding the date of prepayment shall be payable following such prepayment on       the date of such prepayment.              (d)   Subject in all cases to Section 2.04(f), the obligation of the Borrower to pay the       Obligations,  including  the  obligation  of  the  Borrower  to  pay  the  Lenders  the  outstanding       principal amount of the Advances and accrued interest thereon, shall be absolute, unconditional       and irrevocable, and shall be paid strictly in accordance with the terms hereof (including Section       2.14), under any and all circumstances and irrespective of any setoff, counterclaim or defense to                                       - 41- 34881204v6 110062879

 

      payment  which  the  Borrower  or  any  other  Person  may  have  or  have  had  against  any  Secured       Party or any other Person.              (e)   As  a  condition  to  the  payment  of  principal  of  and  Interest  on  any  Advance       without the imposition of withholding tax, the Borrower or the Administrative Agent may require       certification acceptable to it to enable the Borrower and the Administrative Agent to determine       their duties and liabilities with respect to any taxes or other charges that they may be required to       deduct or withhold from payments in respect of such Advance under any present or future law or       regulation of the United States and any other applicable jurisdiction, or any present or future law       or regulation of any political subdivision thereof or taxing authority therein or to comply with       any reporting or other requirements under any such law or regulation.              (f)   Notwithstanding  any  other  provision  of  this  Agreement,  the  obligations  of  the       Borrower under this Agreement are limited recourse obligations of the Borrower payable solely       from the Collateral and, following realization of the Collateral, and application of the proceeds       thereof in accordance with the Priority of Payments and, subject to Section 2.12, all obligations       of  and  any  claims  against  the  Borrower  hereunder  or  in  connection  herewith  after  such       realization shall be extinguished and shall not thereafter revive.  No recourse shall be had against       any  officer,  director,  employee,  shareholder,  Affiliate,  member,  manager,  agent,  partner,       principal  or  incorporator  of  the  Borrower  or  their  respective  successors  or  assigns  for  any       amounts  payable  under  this  Agreement.   It  is  understood that  the  foregoing provisions  of  this       clause (f) 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 this Agreement until such       Collateral has been realized.  It is further understood that the foregoing provisions of this clause       (f)  shall  not  limit  the  right  of  any  Person  to  name  the  Borrower  as  a  party  defendant  in  any       proceeding or in the exercise of any other remedy under this Agreement, 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 the Borrower.        Section 2.05. Prepayment of Advances.              (a)   Optional Prepayments.  In addition to the prepayment of the Advances on any       Payment Date pursuant to the Priority of Payments, the Borrower may, from time to time on any       Business Day but no more than once during any Business Day, voluntarily prepay Advances in       whole or in part together with all Interest accrued thereon, without penalty or premium; provided       that  the  Borrower  shall  have  delivered  to  the  Administrative  Agent  written  notice  of  such       prepayment (such notice, a “Notice of Prepayment”) in the form of Exhibit B not later than in the       case  of  a  prepayment  of  a  Base  Rate  Advance  or  a  LIBOR  Advance, 12:00  noon  (New  York       time) at least one (1) Business Day prior to the day of such prepayment (provided that same day       notice  may  be  given  to  the  extent necessary to  cure  any non-compliance  with the Availability       Test).  Each such Notice of Prepayment shall be irrevocable and effective upon receipt and shall       be dated the date such notice is being given, signed by a Responsible Officer of the Borrower and       otherwise appropriately completed.  Each prepayment of any Advance by the Borrower pursuant       to this Section 2.05(a) (other than a prepayment made in order to cure any non-compliance with       the Availability or the prepayment of the Advances on any Payment Date pursuant to the Priority       of Payments) shall in each case be in a principal amount of at least $500,000 or, if less, the entire       outstanding  principal  amount  of  the  Advances  of  the  Borrower  or,  in  the  case  of  Renovation       Loans, such lesser amount as is advanced to the applicable Obligor in respect thereof.  If a Notice       of  Prepayment  is  given  by  the  Borrower,  the  Borrower  shall  make  such  prepayment  and  the       payment amount specified in such notice shall be due and payable on the date specified therein.                                       - 42- 34881204v6 110062879

 

      The  Borrower  shall  make  the  payment  amount  specified  in  such  notice  by  wire  transfer  of       immediately  available  funds  by  2:00  p.m.  (New  York  time)  to  the  Agent’s  Account.   The       Administrative  Agent  promptly  will  make  such  payment  amount  specified  in  such  notice       available to each Lender in the amount of each Lender’s Percentage of the payment amount by       wire  transfer  to  such  Lender’s  account.   Any  funds  for  purposes  of  a  voluntary  prepayment       received by the Administrative Agent after 2:00 p.m. (New York time) shall be deemed received       on  the  next  Business  Day.   Prepayments  shall  be  accompanied  by  any  applicable  breakage       payments pursuant to Section 2.16.  For the avoidance of doubt, the prepayment of the Advances       on  any  Payment  Date  pursuant  to  the  Priority  of Payments  shall  not be  subject  to  any  notice,       minimum amount, or funding and payment location requirements hereunder.              (b)   Mandatory  Prepayments.   The  Borrower  shall  prepay  the  Advances  on  each       Business  Day  or  Payment  Date, as  applicable, to the  extent  there are  funds available for such       purpose from the amounts on deposit in the Collection Account in the manner and to the extent       provided  in  the  Priority  of  Payments.   The  Borrower  shall  provide  notice  of  the  aggregate       amounts  of  Advances  that  are  to  be  prepaid  on  the  related  Business  Day  or  Payment  Date  in       accordance with the Priority of Payments.  For the avoidance of doubt, the Borrower shall prepay       the Advances on each Business Day that the Availability Test is not satisfied.              (c)   Additional  Prepayment  Provisions.   Each  prepayment  pursuant  to  this  Section       2.05 shall be subject to Sections 2.04(c) and 2.16 and applied to the Advances in accordance with       the Lenders’ respective Percentages.              (d)   Interest  on  Prepaid  Advances.   If  requested  by  the  Administrative  Agent,  the       Borrower  shall  pay  all  accrued  and  unpaid  Interest  on  Advances  prepaid  on  the  date  of  such       prepayment.        Section 2.06. Changes of Commitments.              (a)   Automatic Reduction and Termination.  The Commitments of all Lenders shall       be automatically reduced to zero at 5:00 p.m. on the Commitment Termination Date.              (b)   Optional Reductions.  Prior to the Commitment Termination Date, the Borrower       shall have the right to terminate or reduce the unused amount of the Facility Amount at any time       or from time to time without any fee or penalty upon not less than two (2) Business Days’ prior       notice  to  the  Administrative  Agent  of  each  such  termination  or  reduction,  which  notice  shall       specify the effective date of such termination or reduction and the amount of any such reduction;       provided that (i) the amount of any such reduction of the Facility Amount shall be equal to at       least $5,000,000 or an integral multiple of $100,000 in excess thereof or, if less, the remaining       unused portion thereof, and (ii) no such reduction will reduce the Facility Amount below the sum       of  (x)  aggregate  principal  amount  of  Advances  outstanding  at  such  time  and  (y)  the  Net       Aggregate Exposure Amount.  Such notice of termination or reduction shall be irrevocable and       effective only upon receipt and shall be applied pro rata to reduce the respective Commitments of       each Lender.              (c)   Effect  of  Termination  or  Reduction.   The  Commitments  of  the  Lenders  once       terminated or reduced may not be reinstated.  Each reduction of the Facility Amount pursuant to       this Section 2.06 shall be applied ratably among the Lenders in accordance with their respective       Commitments.                                        - 43- 34881204v6 110062879

 

      Section 2.07. Maximum Lawful Rate.  It is the intention of the parties hereto that the interest on the Advances shall not exceed the maximum rate permissible under Applicable Law.  Accordingly, anything herein to the contrary notwithstanding, in the event any interest is charged to, collected from or received from or on behalf of the Borrower by the Lenders pursuant hereto or thereto in excess of such maximum lawful rate, then the excess of such payment over that maximum shall be applied first to the payment of amounts then due and owing by the Borrower to the Secured Parties under this Agreement (other  than  in  respect  of  principal  of  and  interest  on  the  Advances)  and  then  to  the  reduction  of  the outstanding principal amount of the Advances of the Borrower.        Section 2.08. Several Obligations.  The failure of any Lender to make any Advance to be made by  it  on  the  date  specified  therefor  shall  not  relieve  any  other  Lender  of  its  obligation  to  make  its Advance on such date, the Administrative Agent shall not be responsible for the failure of any Lender to make any Advance, and no Lender shall be responsible for the failure of any other Lender to make an Advance to be made by such other Lender.        Section 2.09. Increased Costs.              (a)   Except  with  respect  to  taxes,  which  shall  be  governed  exclusively  by  Section       15.03, if, due to either (i) the introduction of or any change in or in the interpretation, application       or implementation of any Applicable Law or GAAP or other applicable accounting policy after       the  date  hereof,  or  (ii)  the  compliance  with  any  guideline  or  change  in  the  interpretation,       application  or  implementation  of  any  guideline  or  request  from  any  central  bank  or  other       Governmental  Authority  (whether  or  not  having  the  force  of  law)  after  the  date  hereof  (a       “Regulatory Change”), there shall be any increase in the cost or expense to any Affected Person       of  agreeing  to  make  or  making,  funding  or  maintaining  Advances  to  the  Borrower  or  the       transactions contemplated by this Agreement or any reduction in the amount of any sum received       or receivable by an Affected Person under this Agreement or under any other Facility Document,       then the Borrower shall from time to time in accordance with the Priority of Payments, on the       Payment Date occurring at least thirty (30) days following such Affected Person’s demand, pay       in  accordance with the  Priority of  Payments  such  Affected  Person such additional amounts as       may be sufficient to compensate such Affected Person for such increased cost.  If any Affected       Person becomes entitled to any additional amounts pursuant to this Section 2.09(a), it shall notify       the Borrower (with a copy to the Administrative Agent) of the event by reason of which it has       become so entitled within a commercially reasonable time after any employee of such Affected       Person  having  direct  contact  with  the  Borrower under  this  Agreement  becomes  aware  of such       event.   A  certificate  setting  forth  in  reasonable  detail  the  amount  of  such  increased  cost  or       expense and the basis thereof, submitted to the Borrower by an Affected Person (with a copy to       the  Administrative  Agent),  shall  be  conclusive  and  binding  for  all  purposes,  absent  manifest       error.  Notwithstanding anything herein to the contrary, each of (i) the Dodd-Frank Wall Street       Reform  and  Consumer  Protection  Act and all rules and regulations promulgated thereunder or       issued in connection therewith, and (ii) all requests, rules, guidelines or directives promulgated       by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any       successor or similar authority) or the United States or foreign regulatory authorities, in each case       pursuant to  Basel  III  shall be deemed to have been introduced after the Closing Date, thereby       constituting a Regulatory Change hereunder with respect to the Affected Parties as of the Closing       Date, regardless of the date enacted, adopted or issued, and such additional amounts which are       sufficient to compensate such Affected Person for such increase in capital or liquidity or reduced       return in accordance with the Priority of Payments.              (b)   If  an  Affected  Person  determines  in  good  faith  that  compliance  with  any       Applicable Law, request from any central bank or other Governmental Authority charged with                                       - 44- 34881204v6 110062879

 

      the  interpretation  or  administration  thereof  (whether  or  not  having  the  force  of  law)  or  any       Regulatory Change, in each case, introduced or made after the date hereof (i) affects the amount       of  capital,  liquidity  or  high  quality  liquid  assets  required  to  be  maintained  by  such  Affected       Person  and  that  the  amount  of  such  capital  or  liquidity  is  increased  by  or  based  upon  the       existence of such Affected Person’s Commitment under this Agreement or upon such Affected       Person’s making, funding or maintaining Advances, (ii) reduces the rate of return of an Affected       Person  to  a  level  below  that  which  such  Affected  Person  could  have  achieved  but  for  such       compliance  (taking  into  consideration  such  Affected  Person’s  policies  with  respect  to  capital       adequacy and liquidity) or (iii) causes an internal capital or liquidity charge or other imputed cost       to be assessed upon such Affected Person, which in the sole discretion of such Affected Person is       allocable  to  the  Borrower  or  to  the  transactions  contemplated  by  this  Agreement,  then  the       Borrower  shall  from  time  to  time  on  the  Payment  Date  occurring  at  least  thirty  (30)  days       following such Affected Person’s demand, pay in accordance with the Priority of Payments such       additional  amounts  which  are  sufficient  to  compensate  such  Affected  Person  for  such  cost,       expense,  increase  in  capital  or  liquidity  or  reduced  return.   If  any  Affected  Person  becomes       entitled to claim any additional amounts pursuant to this Section 2.09(b), it shall notify, within a       commercially reasonable  time,  the  Borrower  (with a copy  to  the  Administrative  Agent) of the       event  by  reason  of  which  it  has  become  so  entitled.   A  certificate  setting  forth  in  reasonable       detail such amounts submitted to the Borrower by an Affected Person shall be conclusive and       binding for all purposes, absent manifest error.              (c)   Upon the occurrence of any event giving rise to the Borrower’s obligation to pay       additional amounts to a Lender pursuant to clauses (a) or (b) of this Section 2.09, such Lender       shall (at the request of the Borrower), use reasonable efforts (subject to the customary practices       of such Lender) to minimize any increased amounts payable by the Borrower which at first shall       include,  but  not  be  limited  to,  designating  a  different  lending  office  for  the  funding  or  the       booking of its Advances hereunder or to assign its rights and obligations hereunder to another of       its  offices,  branches  or  affiliates,  if,  in  the  judgment  of  such  Lender,  such  designation  or       assignment would reduce or obviate the obligations of the Borrower to make future payments of       such additional amounts; provided that such designation is made on such terms that such Lender       and its lending office suffer no unreimbursed cost or material legal or regulatory disadvantage (as       reasonably determined by such Lender), with the object of avoiding future consequence of the       event giving rise to the operation of any such provision. The Borrower hereby agrees to pay all       reasonable costs and expenses incurred by any Lender in connection with any such designation       or assignment.              (d)   Failure  or  delay  on  the  part  of  any  Affected  Person  to  demand  compensation       pursuant  to  this  Section  2.09  shall  not  constitute  a  waiver  of  such  Affected  Person’s  right  to       demand or receive such compensation.  Notwithstanding anything to the contrary in this Section       2.09,  the  Borrower  shall  not  be  required  to  compensate  an  Affected  Person  pursuant  to  this       Section 2.09 for any amounts incurred more than one hundred eighty (180) days prior to the date       that  such  Affected  Person  notifies  the  Borrower  of  such  Affected  Person’s  intention  to  claim       compensation therefor.        Section 2.10. Increase in Facility Amount.  The Borrower may, on any Business Day prior to the Commitment Termination Date, increase the Facility Amount by delivering a request substantially in the form attached hereto as Exhibit D (each, a “Facility Amount Increase Request”) or in such other form acceptable to the Administrative Agent at least sixty (60) days prior to the desired effective date of such increase (the “Facility Amount Increase”) identifying an additional Lender that is a Permitted Assignee (or  additional  Commitments  for  existing  Lender(s)  which  have  consented  to  such  increase),  and  the amount of its Commitment (or additional amount of its Commitment(s)); provided, however, that (i) any                                       - 45- 34881204v6 110062879

 

increase of the Facility Amount to an amount in excess of $150,000,000 in the aggregate (after giving effect  to  any  increase  hereunder)  will  require  the  approval  of  all  Lenders,  (ii)  any  increase  of  the aggregate amount of the Facility Amount shall be in an amount not less than $25,000,000, (iii) no Default or Event of Default shall have occurred and be continuing at the time of the request or  the effective date of the Facility Amount Increase, (iv) all representations and warranties contained in Article IV hereof (as the same may be amended from time to time) shall be true and correct in all material respects (except for representations and warranties already qualified by materiality or Material Adverse Effect, which shall be true and correct) at the time of such request and on the effective date of such Facility Amount Increase, and  (v)  unless  such  increase  is  increasing  the  Commitment  of,  and  with  the  consent  of,  an  existing Lender, the Administrative Agent shall have provided its written consent to such increase (which consent shall not be unreasonably withheld or delayed).  The effective date of the Facility Amount Increase shall be agreed upon by the Borrower and the Administrative Agent.  Upon the effectiveness thereof, the new Lender(s) (or, if applicable, existing Lender(s)) shall make Advances in an amount sufficient such that after giving effect to its advance each Lender shall have outstanding its Percentage of Advances.  It shall be  a  condition  to  such  effectiveness  that  (i)  if  any  Advances  are  bearing  interest  at  the  Adjusted Eurodollar Rate on the date of such effectiveness, such Advances shall be deemed to be prepaid on such date  and  the  Borrower  shall  pay  any  amounts  owing  to  the  Lenders  pursuant  to  Section  2.10  hereof, provided,  however,  that  if  a  Facility  Amount  Increase  is  made  among  the  existing  Lenders  and  the amount of the increase in each such Lender’s Commitment is on a pro rata basis in accordance with the existing  Commitments  of  such  Lenders  on  the  date  of  such  Facility Amount  Increase, such  Advances bearing interest at the Adjusted Eurodollar Rate shall not be deemed to be prepaid on such date and (ii) the Borrower shall not have terminated any portion of the Commitments pursuant to Section 2.06 hereof. The  Borrower  agrees  to  promptly  pay  any  reasonable  expenses  of  the  Administrative  Agent  and  the affected  Lender(s)  relating  to  any  Facility  Amount  Increase.   Notwithstanding  anything  herein  to  the contrary, no Lender shall have any obligation to increase its Commitment and no Lender’s Commitment shall be increased without its consent thereto, and each Lender may at its option, unconditionally and without  cause,  decline  to  increase  its  Commitment.   For  the  avoidance  of  doubt,  each  Advance  made under a Facility Amount Increase shall be subject to the same terms (including pricing) as an Advance under the existing Facility Amount.        Section 2.11. Illegality; Inability to Determine Rates; Alternative Interest Rate Election Event.              (a)   Notwithstanding  any  other  provision  in  this  Agreement,  in  the  event  of  a       Eurodollar Disruption Event, then the affected Lender shall promptly notify the Administrative       Agent  and  the  Borrower  thereof,  and  such  Lender’s obligation  to  make  or  maintain  Advances       hereunder  based  on  the  Adjusted  Eurodollar  Rate  shall  be  suspended  until  such  time  as  such       Lender may again make and maintain Advances based on the Adjusted Eurodollar Rate.              (b)   Upon  the  occurrence  of  any  event  giving  rise  to  a  Lender’s  suspending  its       obligation  to  make  or  maintain  Advances  based  on  the  Adjusted  Eurodollar  Rate  pursuant  to       Section 2.11(a), such Lender shall use commercially reasonable efforts (subject to the customary       practices of such Lender) to designate a different lending office if such designation would enable       such  Lender  to  again  make  and  maintain  Advances  based  on  the  Adjusted  Eurodollar  Rate;       provided  that  such  designation  is  made  on  such  terms  that such  Lender and  its  lending  office       suffer  no  unreimbursed  cost  or  material  legal  or  regulatory  disadvantage  (as  reasonably       determined by such Lender), with the object of avoiding future consequence of the event giving       rise to the operation of any such provision.              (c)   If,  prior  to  the  date  of  any  Advance,  either  (i)  the  Administrative  Agent       determinesshall  have  determined  in  good  faith  that  for  any  reason  adequate  and  reasonable       means do not exist for determiningascertaining the LIBOR Rate for the applicable Advances,                                       - 46- 34881204v6 110062879

 

      or  (ii)  the  Required  Lenders  determine  and  notify  the  Administrative  Agent that  the       Adjusted Eurodollar Rate with respect to such Advanceswith respect to a proposed Advance       or that the LIBOR Rate applicable with respect to a proposed Advance does not adequately and       fairly reflect the cost to such Lenders of funding such Advances (provided that each such       Lender  has  generally  made  a  similar  determination  with  respect  to  its  other  borrowers       under facilities bearing interest at an index based on the London interbank offered rate)the       Lenders of  funding  or  maintaining  such  Advance, the  Administrative  Agent  will promptly so       notifyforthwith give notice of such determination to the Borrower and each Lender.  Thereafter,       the  obligation  of  the  Lenders  to  make  or  maintain Advances  based  on  the  Adjusted       Eurodollar  RateLIBOR  Rate  Loans  hereunder  shall  be  suspended  until  the  Administrative       Agent (upon the instruction of the Required Lenders) revokes such notice in writing.  Upon       receipt of such notice, the Borrower may revoke any Request for Advance then submitted by it.       If the Borrower does not revoke such Request for Advance, the Lenders shall make, convert or       continue the Advances, as proposed by the Borrower, in the amount specified in the applicable       notice submitted by the Borrower, but such Advances shall be made, converted or continued at       the Interest Rate (determined without regard to any LIBOR Rate component of the Base Rate).              (d)   Notwithstanding  the  other  provisions  of  this  Agreement,  if  the  Administrative       Agent shall have determined (which determination shall be conclusive absent manifest error), or       the Borrower and Required Lenders shall notify the Administrative Agent in writing, that either       (i) the circumstances set forth in clause (c) have arisen and such circumstances are unlikely to be       temporary, (ii) syndicated or comparable loans are currently being executed and/or amended to       include or adopt a new benchmark rate or rates (including, without limitation, credit or similar       adjustments, in each case, to such rate or rates) or (iii) the circumstances set forth in clause (c)       have not arisen but the supervisor for the administrator of the LIBOR Rate (or any component       thereof)  or  a  Governmental  Authority  having  jurisdiction  over  the  Administrative  Agent  has       made  a  public  statement  identifying  a  specific  date  after  which  the  LIBOR  Rate  (or  any       component thereof) shall no longer be published for use in determining interest rates for loans (in       the case of either such clause (i), (ii) or (iii), an “Alternative Interest Rate Election Event”), then       reasonably  promptly  thereafter  the  Administrative  Agent  and  Borrower  may  endeavor  to       establish an alternate rate of interest to the LIBOR Rate that gives due consideration to the then       prevailing market convention for determining a rate of interest for leveraged comparable loans in       the United States at such time (which may include such credit adjustments or other adjustments,       in  each  case,  to  such  rate  as  are  present  in  the  market  for  leveraged  comparable  loans  in  the       United States at such time), and shall enter into an amendment to this Agreement to reflect such       alternate rate of interest and such other related changes to this Agreement as may be applicable       (including,  without  limitation  operational,  term,  conforming  and  other  changes  as  may  be       reasonably determined by the Administrative Agent).  Notwithstanding anything to the contrary       in  Section  15.01  or  any  other  provision  of  this  Agreement,  such  amendment  shall  become       effective without any further action or consent of any other party to this Agreement so long as       the Administrative Agent shall not have received, within five (5) Business Days after the date       notice of such alternate rate of interest is provided to the Lenders, a written notice from Required       Lenders  stating  that  they  object  to  such  amendment  (which  amendment  shall  not  be  effective       prior to the end of such five (5) Business Day notice period).  To the extent an alternate rate of       interest  is  adopted  as  contemplated  hereby,  the  approved  rate  shall  be  applied  in  a  manner       consistent with prevailing market convention; provided that, to the extent such prevailing market       convention is not administratively feasible for the Administrative Agent, such approved rate shall       be applied in a manner as otherwise reasonably determined by the Administrative Agent and the       Borrower.   From  such  time  as  an  Alternative  Interest  Rate  Election  Event  has  occurred  and       continuing until an alternate rate of interest has been determined in accordance with the terms                                       - 47- 34881204v6 110062879

 

      and conditions of this paragraph, if any Notice of Borrowing requests an Advance, such Advance       shall be made at the Interest Rate (determined without regard to any LIBOR Rate component of       the Base Rate); provided that, to the extent such Alternative Interest Rate Election Event is as a       result of clause (ii) above, then this sentence shall apply during such period only if the LIBOR       Rate  is  not  available  or  published  at  such  time  on  a  current  basis.   Notwithstanding  anything       contained herein to the contrary, if such alternate rate of interest as determined in this paragraph       is determined to be less than 0.50% per annum, such rate shall be deemed to be 0.50% percent       per annum for the purposes of this Agreement.        Section 2.12. Rescission  or  Return  of  Payment.   The  Borrower  agrees  that,  if  at  any  time (including after  the  occurrence of  the Final Maturity Date) all or any part of any payment theretofore made by it to any Secured Party or any designee of a Secured Party is or must be rescinded or returned for  any reason  whatsoever (including the insolvency, bankruptcy or reorganization of the Borrower or any of its Affiliates), the obligation of the Borrower to make such payment to such Secured Party shall, for the purposes of this Agreement, to the extent that such payment is or must be rescinded or returned, be  deemed  to  have  continued  in  existence  and  this  Agreement  shall  continue  to  be  effective  or  be reinstated, as the case may be, as to such obligations, all as though such payment had not been made.        Section 2.13. Past  Due  and  Post  Default  Interest.   The  Borrower  shall  pay  interest  on  all Obligations (other than amounts due under Section 15.04(a) and other Administrative Expenses) that are not paid when due for the period from the due date thereof until the date the same is paid in full at the Default Rate.  Notwithstanding anything to the contrary contained herein, following the occurrence and during the continuance of an Event of Default or after acceleration, the Administrative Agent may, or at the  direction  of  the  Required  Lenders  shall,  elect  upon  written  notice  to  the  Borrower  to  have  the Borrower pay interest on all Obligations hereunder other than amounts due under Section 15.04(a) and other Administrative Expenses that are not paid when due at a fluctuating rate per annum equal to the Default Rate.  Interest payable at the Default Rate shall be payable on each Payment Date in accordance with the Priority of Payments.        Section 2.14. Payments Generally.              (a)   All  amounts  owing  and  payable  to  any Secured  Party,  any  Affected  Person  or       any Indemnified Party, in respect of the Advances and other Obligations, including the principal       thereof,  interest,  fees,  indemnities,  expenses  or  other  amounts  payable  under  this  Agreement,       shall be paid by the Borrower to the Administrative Agent for account of the applicable recipient       in Dollars, in immediately available funds, in accordance with the Priority of Payments, and all       without  counterclaim,  setoff,  deduction,  defense,  abatement,  suspension  or  deferment.   The       Administrative Agent and each Lender shall provide a statement of account of the Borrower and       wire instructions to the Borrower and the Administrative Agent.  Payments must be received by       the Administrative Agent for account of the Lenders on or prior to 2:00 p.m. (New York time) on       a Business Day; provided that, payments received by the Administrative Agent after 2:00 p.m.       (New York  time)  on  a  Business Day  will be deemed to have been paid on the next following       Business Day.              (b)   Except as otherwise expressly provided herein, all computations of interest, fees       and other Obligations shall be made on the basis of a year of (i) with respect to any calculation of       interest  based  on  the  Base  Rate  as  determined  in  accordance  with  clause  (a)  or  (b)  of  the       definition thereof, 365 or 366 days, as applicable, or (ii) with respect to any other calculation of       interest, 360 days for the actual number of days elapsed in computing interest on any Advance,       the  date  of  the  making  of  the  Advance  shall  be  included  and  the  date  of  payment  shall  be       excluded; provided that, if an Advance is repaid on the same day on which it is made, one day’s                                       - 48- 34881204v6 110062879

 

      Interest  shall  be  paid  on  such  Advance.   All  computations  made  by  a  Lender  or  the       Administrative Agent under this Agreement shall be conclusive absent manifest error.        Section 2.15. Interest Elections.              (a)   Each Borrowing initially shall accrue Interest at the Alternative Rate as set forth       in  Section  2.02.   Thereafter, the Borrower may elect to convert such Borrowing to a different       Interest Rate as provided in this Section 2.15.  The Borrower may elect different options with       respect to different portions of the affected Borrowing, in which case each such portion shall be       allocated ratably among the Lenders holding the Advances comprising such Borrowing, and the       Advances comprising each such portion shall be considered a separate Borrowing.              (b)   To make an election pursuant to this Section 2.15, the Borrower shall notify the       Administrative  Agent of  such  election  by  telephone or in writing by the time that a Notice of       Borrowing would be required under Section 2.02 if the Borrower were requesting a Borrowing of       the Type resulting from such election to be made on the effective date of such election.  Each       such telephonic Interest Election Request shall be irrevocable and shall be confirmed promptly       by hand delivery or telecopy to the Administrative Agent of a written Interest Election Request       signed by the Borrower.              (c)   Each telephonic and written Interest Election Request shall specify the following       information:                    (i)   the  Borrowing  to  which  such  Interest  Election  Request  applies  and,  if             different options are being elected with respect to different portions thereof, the portions             thereof to be allocated to each resulting Borrowing (in which case the information to be             specified pursuant to clause (iii) below shall be specified for each resulting Borrowing);                    (ii)  the effective date of the election made pursuant to such Interest Election             Request, which shall be a Business Day; and                    (iii) whether  the  resulting  Borrowing  is  to  be  a  Base  Rate  Advance  or  a             LIBOR Advance.              (d)   Promptly  following  receipt of  an  Interest  Election  Request,  the  Administrative       Agent  shall  advise  each  Lender  of  the  details  thereof  and  of  such  Lender’s  portion  of  each       resulting Borrowing.        Section 2.16. Compensation;  Breakage  Payments.   The  Borrower agrees to compensate each Affected  Person  from  time  to  time,  on  each  Payment  Date,  following  such  Affected  Person’s  written request  (which  request  shall  set  forth  the  basis  for  requesting  such  amounts),  in  accordance  with  the Priority  of  Payments  for  all  reasonable  losses,  expenses  and  liabilities  (including  any interest  paid  by such Affected Person to lenders of funds borrowed to make or carry an Advance and any loss sustained by  such  Affected  Person  in  connection  with  the  re-employment  of  such  funds  but  excluding  loss  of anticipated profits), which such Affected Person may sustain: (i) if any payment or prepayment of any Advance is not made on any date specified in a Notice of Prepayment given by the Borrower or (ii) as a consequence of any other default by any Borrower to repay its Advances when required by the terms of this Agreement.  A certificate as to any amounts payable pursuant to this Section 2.16 submitted to the Borrower  by  any  Lender  (with  a  copy  to  the  Agents,  and  accompanied  by  a  reasonably  detailed calculation  of  such  amounts  and  a  description  of  the  basis  for  requesting  such  amounts)  shall  be conclusive in the absence of manifest error.                                       - 49- 34881204v6 110062879

 

      Section 2.17. Defaulting Lenders.              (a)   Defaulting  Lender  Adjustments.   Notwithstanding  anything  to  the  contrary       contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as       such Lender is no longer a Defaulting Lender, to the extent permitted by Applicable Law:                    (i)   Waivers and Amendments.  Such Defaulting Lender’s right to approve             or disapprove any amendment, waiver or consent with respect to this Agreement shall be             restricted as set forth in the definition of Required Lenders.                    (ii)  Defaulting Lender Waterfall.  Any payment of principal, interest, fees or             other amounts received by the Administrative Agent for the account of such Defaulting             Lender  (whether  voluntary  or  mandatory,  at  maturity,  pursuant  to  Article  VI  or             otherwise)  shall  be  applied  at  such  time  or  times  as  may  be  determined  by  the             Administrative  Agent  as  follows:  first,  to  the  payment  of any  amounts  owing  by  such             Defaulting Lender to the Administrative Agent hereunder; second, as the Borrower may             request (so long as no Default or Event of Default exists), to the funding of any Advance             in  respect  of  which  such  Defaulting  Lender  has  failed  to  fund  its  portion  thereof  as             required  by  this  Agreement,  as  determined  by  the  Administrative  Agent;  third,  if  so             determined  by  the  Administrative  Agent  and  the  Borrower,  to  be  held  in  a  deposit             account and released pro rata in order to satisfy such Defaulting Lender’s potential future             funding  obligations  with  respect  to  Advances  under  this  Agreement;  fourth,  to  the             payment of any amounts owing to the Lenders as a result of any judgment of a court of             competent jurisdiction obtained by any Lender against such Defaulting Lender as a result             of such Defaulting Lender’s breach of its obligations under this Agreement; fifth, so long             as no Default or Event of Default exists, to the payment of any amounts owing to the             Borrower as a result of any judgment of a court of competent jurisdiction obtained by             any  Borrower  against  such  Defaulting  Lender  as  a  result  of  such  Defaulting  Lender’s             breach of its obligations under this Agreement; and sixth, to such Defaulting Lender or             as  otherwise  directed  by  a  court  of  competent  jurisdiction;  provided  that  if  (x)  such             payment is a payment of the principal amount of any Advances in respect of which such             Defaulting  Lender  has  not  fully  funded  its  appropriate  share,  and  (y)  such  Advances             were  made  at  a  time  when  the  conditions  set  forth  in  Section  3.02  were  satisfied  or             waived, such payment shall be applied solely to pay the Advances of all Non-Defaulting             Lenders on  a pro rata basis prior to being applied to the payment of any Advances of             such Defaulting Lender until such time as all Advances are held by the Lenders pro rata             in accordance with their Percentages of the Commitments.  Any payments, prepayments             or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay             amounts owed by a Defaulting Lender or to post Cash Collateral pursuant to this Section             2.17(a)(ii) shall be deemed paid to and redirected by such Defaulting Lender, and each             Lender irrevocably consents hereto.                    (iii) Certain  Fees.  No  Defaulting  Lender  shall  be  entitled  to  receive  any             Unused Line Fee for any period during which that Lender is a Defaulting Lender (and             the Borrower shall not be required to pay any such fee that otherwise would have been             required to have been paid to that Defaulting Lender).              (b)   Defaulting Lender Cure.  If the Borrower and the Administrative Agent agree in       writing that a Lender is no longer a Defaulting Lender, the Administrative Agent will so notify       the parties hereto, whereupon as of the effective date specified in such notice and subject to any       conditions set forth therein, that Lender will, to the extent applicable, purchase at par that portion                                       - 50- 34881204v6 110062879

 

      of outstanding Advances of the other Lenders or take such other actions as the Administrative       Agent may determine to be necessary to cause the Advances to be held pro rata by the Lenders in       accordance with their respective Percentages of the Commitments, whereupon such Lender will       cease to be a Defaulting Lender; provided that no adjustments will be made retroactively with       respect to fees accrued or payments made by or on behalf of the Borrower while that Lender was       a Defaulting Lender; and provided, further, that except to the extent otherwise expressly agreed       by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a       waiver or release of any claim of any party hereunder arising from that Lender’s having been a       Defaulting Lender.                                   ARTICLE III                             CONDITIONS PRECEDENT        Section 3.01. Conditions  Precedent  to  Initial  Advances.   The  obligation  of  each  Lender  to make its initial Advance hereunder shall be subject to the conditions precedent that the Administrative Agent shall have received on or before the date of such initial Advance the following, each in form and substance reasonably satisfactory to the Administrative Agent:              (a)   each  of  the  Facility  Documents  duly  executed  and  delivered  by  the  parties       thereto, which shall each be in full force and effect;              (b)   true  and  complete  copies  of  the  Constituent  Documents  of  the Borrower  as in       effect on the Funding Effective Date;              (c)   true and complete copies certified by a Responsible Officer of the Borrower of       all  Governmental  Authorizations,  Private  Authorizations  and  Governmental  Filings,  if  any,       required  in  connection  with  the  transactions  contemplated  by  this  Agreement  (other  than  any       Governmental Filings required to be filed by the Parent, or appropriate for it to file, under the       Securities Exchange Act of 1934 and/or the Securities Act of 1933);              (d)   a  certificate  of  a  Responsible  Officer  of  the  Borrower  certifying  (i)  as  to  its       Constituent  Documents,  (ii)  as  to  its  resolutions  or  other  action  of  its  board  of  directors  or       members approving this Agreement and the other Facility Documents to which it is a party and       the transactions contemplated thereby, (iii) that its representations and warranties set forth in the       Facility Documents to which it is a party are true and correct in all material respects as of the       Closing Date  (except  to  the  extent such  representations  and  warranties  expressly relate to any       earlier  date, in  which  case  such  representations  and  warranties shall  be true  and correct in all       material respects as of such earlier date), (iv) no Default or Event of Default has occurred and is       continuing,  and  (v)  as  to  the  incumbency  and  specimen  signature  of  each  of  its  Responsible       Officers authorized to execute the Facility Documents to which it is a party;              (e)   a certificate of a Responsible Officer of each of the Guarantors, the Servicer and       the Originator, certifying (i) as to its Constituent Documents, (ii) as to its resolutions or other       action  of  its  board  of  directors,  partners  or  members  approving  this  Agreement  and  the  other       Facility Documents to which it is a party and the transactions contemplated thereby, (iii) that its       representations and warranties set forth in the Facility Documents to which it is a party are true       and  correct  in  all  material  respects  as  of  the  Closing  Date  (except  to  the  extent  such       representations  and  warranties  expressly  relate  to  any  earlier  date,  in  which  case  such       representations and warranties shall be true and correct in all material respects as of such earlier       date),  (iv)  no  Default,  Event  of  Default,  Potential  Servicer  Termination  Event,  Servicer                                       - 51- 34881204v6 110062879

 

      Termination Event, or default under the Purchase and Contribution Agreement has occurred and       is continuing with respect to, and (v) as to the incumbency and specimen signature of each of its       Responsible Officers authorized to execute the Facility Documents to which it is a party;              (f)   intentionally omitted;              (g)   UCC  financing  statements,  under  the  UCC  in  all  jurisdictions  that  the       Administrative  Agent  deems  necessary  or  desirable  in  order  to  perfect  the  interests  in  the       Collateral contemplated by this Agreement;              (h)   copies  of  proper  financing  statements,  if  any,  necessary  to  release  all  security       interests and other rights of any Person in the Collateral previously granted by the Borrower or       any transferor;              (i)   legal opinions (addressed to each of the Secured Parties) of (A) Platte Klarsfeld       & Levine, LLP, counsel to the Borrower, the Servicer, and the Guarantors (other than Parent),       O’Reilly & Mark, P.C., counsel to the Parent, covering such matters as the Administrative Agent       and  its  counsel  shall  reasonably  request,  and  (B)  Chapman  and  Cutler  LLP,  counsel  to  the       Backup  Servicer,  covering  such  matters  as  the  Administrative  Agent  and  its  counsel  shall       reasonably request;              (j)   evidence reasonably satisfactory to it that the Collection Account shall have been       established; and the Account Control Agreement shall have been executed and delivered by the       Borrower, the Administrative Agent and the Account Bank, and shall be in full force and effect;              (k)   evidence that (x) all fees due and owing to the Administrative Agent and Backup       Servicer,  on  or  prior  to  the  Funding  Effective  Date  have  been  received  or  will  be       contemporaneous  with  closing;  and  (y)  the  reasonable  and  documented  accrued  fees  and       expenses  of  Troutman  Sanders  LLP,  counsel  to  the  Administrative  Agent,  and  Chapman  and       Cutler LLP, counsel to Backup Servicer, in connection with the transactions contemplated hereby       (to  the  extent  invoiced  prior  to  the  Funding  Effective  Date  and  required  to  be  paid  by  the       Borrower  hereunder),  shall  have  been  paid  by  the  Borrower  or  will  be  contemporaneous  with       closing;              (l)   audited  consolidated  financial  statements  of  Parent  as  of  December  31,  2017,       and the unaudited interim consolidated financial statements of Parent as of March 31, 2018, for       the three (3) months then ended;              (m)   Delivery  of  such  Collateral  (including,  for  each  initial  Collateral  Loan,  the       related Loan Note and Assignment of Note, Mortgage and Assignment of Mortgage executed in       blank with respect to a First Lien Loan, executed assignment agreements, underwriting memo,       appraisal  report  with  respect  to  the  related  Project  Property,  and  word  or  pdf  copies  of  the       principal  credit  agreement)  in  accordance  with  the  provisions  of  Article  XIII  shall  have  been       effected,  and  Administrative  Agent  shall  have  received  a  Custodial  File  Document  Receipt       Certificate  that  does  not  show  any  Exceptions,  except  for  such  Exceptions  as  Administrative       Agent may approve in its sole discretion;              (n)   a certificate of a Responsible Officer of the Borrower, dated as of the Closing       Date,  to  the  effect  that,  in  the  case  of  each  item  of  Collateral  pledged  to  the  Administrative       Agent, on the Closing Date and immediately prior to the delivery thereof on the Closing Date:                                        - 52- 34881204v6 110062879

 

                  (i)   the Borrower is the owner of such Collateral free and clear of any Liens,             claims or encumbrances of any nature whatsoever except for (A) those which are being             released on the Closing Date and (B) Permitted Liens;                    (ii)  the Borrower has acquired its ownership in such Collateral in good faith             without notice of any adverse claim, except as described in clause (i) above;                    (iii) the  Borrower  has  not  assigned,  pledged  or  otherwise  encumbered  any             interest  in  such  Collateral  (or,  if  any  such  interest  has  been  assigned,  pledged  or             otherwise encumbered, it has been released) other than interests permitted by or granted             pursuant to this Agreement;                    (iv)  the Borrower has full right to grant a security interest in and assign and             pledge such Collateral to the Administrative Agent; and                    (v)   upon grant by the Borrower, the Administrative Agent has a first priority             perfected security interest in the Collateral, except as permitted by this Agreement;              (o)   all documentation and other information requested by any such Lender required       by  bank  regulatory  authorities  under  applicable  “know  your  customer”  and  anti-money       laundering rules and regulations, including the Patriot Act; and the Administrative Agent shall       have  received  a  fully  executed  Internal  Revenue  Service  Form  W-9  (or its  equivalent)  for  the       Borrower, each Guarantor, and the Servicer;              (p)   a  closing  certificate  from  the  Borrower  substantially  in  the  form  set  forth  on       Exhibit H hereto;              (q)   such other opinions, instruments, certificates and documents from the Borrower,       the  Servicer,  and  each  Guarantor  as  the  Administrative  Agent  or  any  Lender  shall  have       reasonably requested;              (r)   copies of the United States Internal Revenue Service forms required by Section       15.03(g) of this Agreement; and              (s)   a  statement of  any  pending  or threatened litigation or legal actions against the       Borrower,  the  Servicer,  or  any  Guarantor  (provided  that  in  the  case  of  Parent,  such  statement       may be that there is no material pending or threatened litigation or legal actions against Parent).        Section 3.02. Conditions  Precedent  to  Each  Borrowing.   The  obligation  of  each  Lender  to make each Advance to be made by it (including the initial Advance) on each Borrowing Date shall be subject to the fulfillment of the following conditions:              (a)   the Administrative Agent shall have received a Notice of Borrowing with respect       to such Advance (including the Borrowing Base Calculation Statement attached thereto, all duly       completed) delivered in accordance with Section 2.02;              (b)   immediately  after  the  making  of  such  Advance  on  the  applicable  Borrowing       Date, the Availability Test, the Interest Coverage Ratio Test, the Asset Coverage Ratio Test and       each  Collateral  Quality  Test  shall  be  satisfied  (as  demonstrated  on  the  Borrowing  Base       Calculation Statement attached to such Notice of Borrowing except for the Asset Coverage Ratio                                        - 53- 34881204v6 110062879

 

      Test, which Borrower shall certify as of the last such date that such Asset Coverage Ratio was       calculated);              (c)   each  of  the  representations  and  warranties  of  the  Borrower  and  the  Servicer       contained  in  this  Agreement  shall  be  true  and  correct  in  all  material  respects  (except  for       representations and warranties already qualified by materiality or Material Adverse Effect, which       shall be true and correct) as of such Borrowing Date (except to the extent such representations       and  warranties  expressly  relate  to  any  earlier  date,  in  which  case  such  representations  and       warranties shall be true and correct in all material respects as of such earlier date as if made on       such date);              (d)   no Default or Event of Default shall have occurred and be continuing at the time       of the making of such Advance or shall result upon the making of such Advance;              (e)   with respect to each Loan being acquired with the proceeds of such Advance, the       Custodian  and  the  Administrative  Agent  shall  have  received  a  completed  Custodial  Delivery       Certificate together with the Loan File, the contents of which shall be identified in the related       Collateral Loan File Checklist, three (3) Business Days prior to such Borrowing Date; and              (f)   the  Administrative  Agent  shall  have  received  from  the  Custodian  a  Custodial       File  Document  Receipt  Certificate  that  does  not  show  any  Exceptions,  except  for  such       Exceptions as Administrative Agent may approve in its sole discretion; and              (g)   with  respect to each Construction  Loan, Borrower shall have also delivered to       Administrative  Agent  (each  in  form and substance  satisfactory  to  Administrative  Agent):  (i)  a       three (3) page “summary draw document”, (ii) change orders that specify the expected source of       funds,  (iii)  draw  request  inspection  reports,  (iv)  if  applicable,  a  flood  and  earthquake       certification, (v) a certificate signed by an authorized officer of Borrower in compliance with the       SBA  Rules  and  Regulations;  and  (vi)  such  other  documents  as  Administrative  Agent  shall       request.                                   ARTICLE IV                       REPRESENTATIONS AND WARRANTIES        Section 4.01. Representations and Warranties of the Borrower.  The Borrower represents and warrants to each of the Secured Parties on and as of each Measurement Date (and, in respect of clause (i) below, each date such information is provided by or on behalf of it), as follows:              (a)   Due Organization.  The Borrower is a limited liability company duly organized       and validly existing under the laws of the State of Delaware, with full power and authority to       own and operate its assets and properties, conduct the business in which it is now engaged and to       execute  and  deliver  and  perform  its  obligations  under  this  Agreement  and  the  other  Facility       Documents to which it is a party.              (b)   Due Qualification and Good Standing.  The Borrower is in good standing in the       State of Delaware.  The Borrower is duly qualified to do business and, to the extent applicable, is       in  good  standing  in  each  other  jurisdiction  in  which  the  nature  of  its  business,  assets  and       properties, including the performance of its obligations under this Agreement, the other Facility       Documents  to  which  it  is  a  party  and  its  Constituent  Documents,  requires  such  qualification,                                       - 54- 34881204v6 110062879

 

      except where the failure to be so qualified or in good standing could not reasonably be expected       to have a Material Adverse Effect.              (c)   Due  Authorization;  Execution  and  Delivery;  Legal,  Valid  and  Binding;       Enforceability.   The  execution  and  delivery  by  the  Borrower  of,  and  the  performance  of  its       obligations  under  the  Facility  Documents  to  which  it  is  a  party  and  the  other  instruments,       certificates  and  agreements  contemplated  thereby  are  within  its  powers  and  have  been  duly       authorized  by  all  requisite  action  by  it  and  have  been  duly  executed  and  delivered  by  it  and       constitute its legal, valid and binding obligations enforceable against it in accordance with their       respective  terms,  except  as  enforceability  may  be  limited  by  (i)  applicable  bankruptcy,       insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally,       (ii) general principles of equity, regardless of whether considered in a proceeding in equity or at       law or (iii) implied covenants of good faith and fair dealing.              (d)   Non-Contravention.  None of the execution and delivery by the Borrower of this       Agreement or the other Facility Documents to which it is a party, the Borrowings or the pledge       of the Collateral hereunder, the consummation of the transactions herein or therein contemplated,       or compliance by it with the terms, conditions and provisions hereof or thereof, will (i) conflict       with, or result in a material breach or violation of, or constitute a default under its Constituent       Documents,  (ii)  conflict  with  or  contravene  (A)  any  Applicable  Law,  (B)  any  indenture,       agreement or other contractual restriction binding on or affecting it or any of its assets, including       any Loan Document, or (C) any order, writ, judgment, award, injunction or decree binding on or       affecting it or any of its assets or properties or (iii) result in a breach or violation of, or constitute       a  default  under,  or  permit  the  acceleration  of  any  obligation  or  liability  in,  or  but  for  any       requirement  of  the  giving  of  notice  or  the  passage  of  time  (or  both)  would  constitute  such  a       conflict  with,  breach  or  violation  of, or  default under, or  permit any such acceleration in, any       contractual obligation or any agreement or document to which it is a party or by which it or any       of its assets are bound (or to which any such obligation, agreement or document relates), except       in  the  case  of  clauses  (ii)  and  (iii)  above,  where  such  conflicts,  contravention,  breaches,       violations or defaults could not reasonably be expected to have a Material Adverse Effect.              (e)   Governmental  Authorizations;  Private  Authorizations;  Governmental  Filings.       The  Borrower  has  obtained,  maintained  and  kept  in  full  force  and  effect  all  Governmental       Authorizations  and  Private  Authorizations  which  are  necessary  for  it  to  properly  carry  out  its       business, except where the failure to do so could not reasonably be expected to have a Material       Adverse Effect, and has made all material Governmental Filings necessary for the execution and       delivery by it of the Facility Documents to which it is a party, the Borrowings by the Borrower       under this Agreement, the pledge of the Collateral by the Borrower under this Agreement and the       performance  by  the  Borrower  of  its  obligations  under  this  Agreement,  the  other  Facility       Documents,  and  no  material  Governmental  Authorization,  Private  Authorization  or       Governmental Filing which has not been obtained or made, is required to be obtained or made by       it in connection with the execution and delivery by it of any Facility Document to which it is a       party, the Borrowings by the Borrower under this Agreement, the pledge of the Collateral by the       Borrower under this Agreement or the performance of its obligations under this Agreement and       the other Facility Documents to which it is a party.              (f)   Compliance with Agreements, Laws, Etc.  The Borrower has duly observed and       complied in all material respects with all Applicable Laws relating to the conduct of its business       and its assets.  The Borrower has preserved and kept in full force and effect its rights, privileges,       qualifications and franchises, except where the failure to do so could not reasonably be expected       to  result  in  a  Material  Adverse  Effect.   Without  limiting  the  foregoing,  (x)  to  the  extent                                       - 55- 34881204v6 110062879

 

      applicable, the Borrower is in compliance in all material respects with the regulations and rules       promulgated  by  the  U.S.  Department  of  Treasury  and/or  administered  by  the  U.S.  Office  of       Foreign Asset Controls (“OFAC”), including U.S. Executive Order No. 13224, and other related       statutes, laws and regulations (collectively, the “Subject Laws”), (y) the Borrower has adopted       internal  controls  and  procedures  designed  to  ensure  its  continued  compliance  in  all  material       respects  with  the  applicable  provisions  of  the  Subject  Laws  and  to  the  extent  applicable, will       adopt  procedures  consistent in all  material respects  with  the PATRIOT Act and implementing       regulations,  and  (z)  to  the  knowledge  of  the  Borrower  (based  on  the  implementation  of  its       internal procedures and controls), no investor in the Borrower is a Person whose name appears       on  the  “List  of  Specially  Designated  Nationals”  and  “Blocked  Persons”  maintained  by  the       OFAC.              (g)   Location.  The Borrower’s chief place of business and its chief executive office       are located in the State of New York.  The Borrower’s registered office and the jurisdiction of       organization of the Borrower is the jurisdiction referred to in Section 4.01(a).              (h)   Investment  Company  Act.   Neither  the  Borrower  nor  the  pool  of  Collateral  is       required  to  register  as  an  “investment  company”  under  the  Investment  Company  Act  and  the       Borrower  is  not  a  “covered  fund”  for  purposes  of  the  Volcker  Rule  and  the  transactions       contemplated  hereby  do  not  create  an  “ownership  interest”  in  the  Borrower  in  favor  of  the       Administrative  Agent  or  the  Lenders  for  purposes  of  the  Volcker  Rule.   For  purposes  of  this       subclause  (h),  “covered  fund”  and  “ownership  interest”  have  the  meanings  set  forth  in  the       Volcker Rule.              (i)   Information and Reports.  Each Notice of Borrowing, each Monthly Report and       all  other  written  information,  reports,  certificates  and  statements  (other  than  projections  and       forward-looking statements) furnished by or on behalf of the Borrower to any Secured Party for       purposes  of  or  in  connection  with  this  Agreement,  the  other  Facility  Documents  or  the       transactions contemplated hereby or thereby are (when taken as a whole) true and correct in all       material  respects  and  does  not  omit  to  state  a  material  fact  necessary  to  make  the  statements       contained  therein  when  considered  in  their  entirety  not  misleading  as  of  the  date  such       information is stated or certified.  All projections and forward-looking statements furnished by or       on behalf of the Borrower were prepared in good faith based upon assumptions believed to be       reasonable at the time they were provided and that the actual results during the period or periods       covered  by  such  forward  looking  statements  may  differ  from  the  actual  results  and  such       differences may be material.              (j)   ERISA.   Neither  the  Borrower  nor  any  member  of  the  ERISA  Group  has,  or       during  the  past  five  years  had,  any  liability  or  obligation  with  respect  to  any  Plan  or       Multiemployer Plan.              (k)   Taxes.  The Borrower has filed all income tax returns and all other material tax       returns which are required to be filed by it, if any, and has paid all taxes shown to be due and       payable on such returns, if any, or pursuant to any assessment received by any such Person, other       than any such taxes, assessments or charges that are being contested in good faith by appropriate       proceedings and for which appropriate reserves in accordance with GAAP have been established       or are not yet delinquent.              (l)   Tax Status.  For U.S. federal income tax purposes the Borrower is (i) disregarded       as  an  entity  separate  from  its  owner  and  (ii)  has  not  made  an  election  under  U.S.  Treasury                                       - 56- 34881204v6 110062879

 

      Regulation  Section  301.7701-3  and  is  not  otherwise  treated  as  an  association  taxable  as  a       corporation.              (m)   Collections.   The  Borrower  (or  the  Servicer  on  behalf  of  the  Borrower)  has       instructed all Obligors or related administrative and paying agents under the Loan Documents to       remit all Collections directly to the Collection Account.              (n)   Plan  Assets.   The  assets  of  the  Borrower  are  not  treated  as  “plan  assets”  for       purposes  of  Section  3(42)  of  ERISA  and  the  Collateral  is  not  deemed  to  be  “plan  assets”  for       purposes of Section 3(42) of ERISA.  The Borrower has not taken, or omitted to take, any action       which would result in any of the Collateral being treated as “plan assets” for purposes of Section       3(42)  of  ERISA  or  the  occurrence  of  any  Prohibited  Transaction  in  connection  with  the       transactions contemplated hereunder.              (o)   Solvency.  After giving effect to each Advance hereunder, and the disbursement       of the proceeds of such Advance, the Borrower is and will be Solvent.              (p)   Broker Dealer.  The Borrower is not a broker or dealer, as defined in sections       3(a)(4) and 3(a)(5) of the Exchange Act, a member of a national securities exchange, or a Person       associated with a broker or dealer (as defined in section 3(a)(18) of the Exchange Act) except for       business entities controlling or under common control with the Borrower.              (q)   Anti-Bribery  Laws.   No  part  of  the  proceeds  of  any  Advance  will  be  used       directly or indirectly for any payments to any government official or employee, political party,       official  of  a  political  party,  candidate  for  political  office,  or  anyone  else  acting  in  an  official       capacity,  in  order  to  obtain,  retain  or  direct  business  or  obtain  any  improper  advantage,  in       violation of the United States Foreign Corrupt Practices Act of 1977 the U.K. Bribery Act 2010,       and  other  similar  anti-corruption  legislation  in  other  jurisdictions,  and  Borrower  and  each       Guarantor  has  instituted  and  maintained  policies  and  procedures  designed  to  promote  and       achieve compliance with such laws.              (r)   Beneficial Ownership Certification.  The information included in the Beneficial       Ownership Certification, if applicable, is true and correct in all respects.                (s)   EEA  Financial  Institution.  Neither  Borrower  nor  any  Guarantor  is  an  EEA       Financial Institution.                (t)   Representations Relating to the Collateral.  The Borrower hereby represents and       warrants that:                    (i)   it  owns  and  has  legal  and  beneficial  title  to  all  Collateral  Loans  and             other Collateral free and clear of any Lien, claim or encumbrance of any person, other             than Permitted Liens;                    (ii)  other  than  Permitted  Liens,  the  Borrower  has  not  pledged,  assigned,             sold,  granted  a  security  interest  in,  or  otherwise  conveyed  any  of  the  Collateral.   The             Borrower has not authorized the filing of and is not aware of any financing statements             against the Borrower or any mortgage (or assignment thereof) or other similar instrument             in each case that includes a description of collateral covering the Collateral other than             any financing statement or any mortgage (or assignment thereof) relating to the security             interest granted to the Administrative Agent hereunder or that has been terminated; and                                       - 57- 34881204v6 110062879

 

            the Borrower is not aware of any judgment, PBGC Liens or tax Lien filings against the             Borrower;                    (iii) the Collateral constitutes Money, Cash, accounts (as defined in Section             9-102(a)(2)  of  the  UCC),  Instruments,  general  intangibles  (as  defined  in  Section             9-102(a)(42) of the UCC), uncertificated securities (as defined in Section 8-102(a)(18) of             the  UCC),  Certificated  Securities  or  security  entitlements  to  financial  assets  resulting             from  the  crediting  of  financial  assets  to  a  “securities  account”  (as  defined  in  Section             8-501(a) of the UCC);                    (iv)  the  Collection  Account  constitutes  a  “deposit  account”  under  9-102  of             the UCC;                    (v)   this  Agreement  creates  a  valid,  continuing  and,  upon  Delivery  of             Collateral, filing of the financing statement referred to in clause (vii) and execution of             the  Account  Control  Agreement,  perfected  security  interest  (as  defined  in  Section             1-201(37)  of  the  UCC)  in  the  Collateral  in  favor  of  the  Administrative  Agent,  for  the             benefit and security of the Secured Parties, which security interest is prior to all other             Liens, claims and encumbrances (other than Permitted Liens), and is enforceable as such             against creditors of and purchasers from the Borrower;                    (vi)  with respect to the interest and rights of the Administrative Agent in the             Collateral  pledged  hereunder,  the  Borrower  has  received  all  consents  and  approvals             required by the terms of the Loan Documents, for all Loans originated by Borrower;                    (vii) with  respect  to  the  Collateral  that  constitutes  accounts  or  general             intangibles, the Borrower has caused or will have caused, on or prior to the Closing Date,             the  filing  of  all  appropriate  financing  statements  in  the  proper  filing  office  in  the             appropriate jurisdictions under applicable law in order to perfect the security interest in             the  Collateral  granted  to  the  Administrative  Agent,  for  the  benefit  and  security  of  the             Secured  Parties,  hereunder  (which  the  Borrower  hereby  agrees  may  be  an  “all  assets”             filing).  Such filing of a financing statement is sufficient to perfect such security interest             under Applicable Law;                    (viii) each Mortgage relating to any Collateral Loan is a valid and subsisting             first  priority,  perfected  Lien  of  record  on  the  related  Project  Property  recorded  in  the             appropriate  jurisdictions  subject  only  to,  the  exceptions  to  title  set  forth  in  the  title             insurance  policy  with  respect  to  that  Collateral  Loan,  which  exceptions  are  generally             acceptable  to  banking  institutions  in  connection  with  their  regular  mortgage  lending             activities, and such other exceptions to which similar properties are commonly subject             and which do not individually, or in the aggregate, materially and adversely affect the             benefits of  the  security  intended  to  be  provided  by such  Mortgage  or  the  value  of  the             related Project Property;                    (ix)  each  Assignment  of  Mortgage  is  in  recordable  form,  in  favor  of  the             Administrative Agent and in the possession of the Custodian and constitutes the legal,             valid and binding assignment of such Mortgage by the applicable assignor thereof to the             Borrower or its designee or is assigned in blank, and the applicable Mortgage and note             are freely assignable by the applicable assignor thereof (including without the consent of             the related Obligor);                                       - 58- 34881204v6 110062879

 

                  (x)   with respect to each Collateral Loan, either a property profile report in             form  and  substance  acceptable  to  the  Administrative  Agent  (that  verifies  the  Lien             position of the Borrower), or a lender’s title insurance policy, issued in standard form in             the state in which the related Project Property is situated, in an amount at least equal to             the Principal Balance of such Collateral Loan as of the date of acquisition thereof, plus,             in  respect  of  each  Collateral  Loan  that  is  a  Second  Lien  Loan,  the  amount  of  any             obligation(s)  secured  by  the  senior  Lien  or  Liens  thereon,  insuring  the  mortgagee’s             interest under the related Collateral Loan as the holder of a valid first or, in the case of a             Second Lien Loan, junior Lien of record on the related Project Property was effective on             the date of the origination of such Collateral Loan, is effective on the date of each Loan             and on each date the Borrowing Base is calculated (or deemed calculated) and remains in             full  force  and  effect.   Such  title  policy  is  freely  assignable  and  the  assignment  to  the             Borrower of the benefits of the mortgage title insurance, and the pledge of such benefits             to the Administrative Agent, do not require the consent of or notification to the insurer.             No claims have been made under such mortgage title insurance policies and neither the             Borrower  nor  any  prior  holder  of  the  related  mortgage  has  done,  by  act  or  omission,             anything that would impair the coverage of such mortgage title insurance policy;                    (xi)  with  respect  to  each  Collateral  Loan,  the  improvements  on  the  related             Project Property are covered by a valid and existing all-risk or fire and extended perils             insurance policy with a generally acceptable carrier that provides for fire and extended             coverage, and which provides for a recovery by the Servicer on behalf of the Borrower of             applicable insurance proceeds relating to each such Collateral Loan.  All such insurance             policies  are  the  valid  and  binding  obligation  of  the  insurer  and  contain  a  standard             mortgagee  clause  naming  the  Borrower, and  its  successors  and  assigns,  as  mortgagee.             All premiums due thereon have been paid.  Such insurance policy requires prior notice to             the insured of termination or cancellation, and no such notice has been received.  Each             Mortgage obligates the applicable Obligor thereunder to maintain all such insurance at             the Obligor’s cost and expense, and upon the Obligor’s failure to do so, authorizes the             applicable  mortgagee,  or  the  seller  of  the  related  Project  Property  and  its  assign,  to             obtain  and  maintain  such  insurance  at  the  Obligor’s  cost  and  expense  and  to  seek             reimbursement therefor from the Obligor;                    (xii) with respect to each Collateral Loan, if any related Project Property is in             an  area  identified  in  the  Federal  Register  by  the  Federal  Emergency  Management             Agency as having special flood hazards, a flood insurance policy in a form meeting the             requirements  of  the  current  guidelines  of  the  Federal  Insurance  Administration  with  a             generally  acceptable  carrier,  to  the  extent  required  by  law,  or  to  the  extent  not  so             required, to the extent such flood insurance is available at commercially reasonable rates,             is in effect with respect to each related Collateral Loan which provides for a recovery by             the  Servicer  on  behalf  of  the  Borrower  and  the  Administrative  Agent  of  insurance             proceeds relating to such Collateral Loan.  All flood insurance policies are the valid and             binding  obligation  of  the  insurer  and  contain  a  standard  mortgagee  clause  naming  the             originator,  its  successors  and  assigns,  as  mortgagee.  All  premiums thereon  have been             paid.  Such flood insurance policy requires prior notice to the insured of termination or             cancellation, and no such notice has been received.  The Mortgage obligates the Obligor             thereunder to maintain all such flood insurance at the Obligor’s cost and expense, and             upon the Obligor’s failure to do so, authorizes the applicable mortgagee, or the seller of             the related Project Property and its assigns, to obtain and maintain such flood insurance             at the Obligor’s cost and expense and to seek reimbursement therefor from the Obligor;                                       - 59- 34881204v6 110062879

 

                  (xiii) with respect to each Collateral Loan, there is no proceeding pending or             threatened  for  the  total or partial condemnation of any related Project Property, nor is             such a proceeding currently occurring, and each Project Property is undamaged by waste,             fire, earthquake, windstorm, flood, tornado or other casualty or earth movement;                    (xiv) with respect to each Mortgage constituting a deed of trust, a trustee, duly             qualified  under  applicable  law  to  serve  as  such,  has  been  properly  designated  and             currently so serves and is named in such Mortgage, and no fees or expenses are or will             become  payable  by  the  Borrower or  the  Administrative  Agent  to the trustee under the             deed  of  trust,  except  in  connection  with  a  trustee’s  sale  after  default  by  the  related             Obligor;                    (xv)  neither  the  Borrower  nor  any  Affiliate  of  the  Borrower  has  taken  any             action  with  respect  to  any  Collateral  Loan  or  the  related  Project  Property  that  could             subject the Borrower, or its successors, assigns and creditors in respect of such Collateral             Loan, including the Administrative Agent, to any liability under any Environmental Law,             and  neither  the  Borrower  nor  any  Affiliate  of  the  Borrower  has  received  any  actual             notice  of  a  material  violation  of  any  Environmental  Law  with  respect  to  the  related             Project  Property  that  was  not  disclosed  in  writing  to  the  Administrative  Agent.   The             Mortgage  or  other  Loan  Documents  with  respect  to  each  Collateral  Loan  requires  the             related Obligor to comply with all applicable Environmental Laws;                    (xvi) the Project Property that secures each Collateral Loan consists of a fee             simple estate in real property and is accurately and adequately described in the related             Mortgage.        Section 4.02. Representations  and  Warranties  of  the  Servicer.   The  Servicer  represents  and warrants to each of the Secured Parties on and as of each Measurement Date (and in respect of clause (h) below, each date such information is provided by or on behalf of it), as follows:              (a)   Due  Organization.   The  Servicer is  a  limited liability company duly organized       and validly existing under the laws of the State of New York, with full power and authority to       own and operate its assets and properties, conduct the business in which it is now engaged and to       execute  and  deliver  and  perform  its  obligations  under  this  Agreement  and  the  other  Facility       Documents to which it is a party.              (b)   Due Qualification and Good Standing.  The Servicer is in good standing in the       State of New York.  The Servicer is duly qualified to do business and, to the extent applicable, is       in  good  standing  in  each  other  jurisdiction  in  which  the  nature  of  its  business,  assets  and       properties, including the performance of its obligations under this Agreement, the other Facility       Documents to which it is a party and its Constituent Documents to which it is a party, requires       such  qualification,  except  where  the  failure  to  be  so  qualified  or  in  good  standing  could  not       reasonably be expected to have a Material Adverse Effect.              (c)   Due  Authorization;  Execution  and  Delivery;  Legal,  Valid  and  Binding;       Enforceability.   The  execution  and  delivery  by  the  Servicer  of,  and  the  performance  of  its       obligations  under  the  Facility  Documents  to  which  it  is  a  party  and  the  other  instruments,       certificates  and  agreements  contemplated  thereby  are  within  its  powers  and  have  been  duly       authorized  by  all  requisite  action  by  it  and  have  been  duly  executed  and  delivered  by  it  and       constitute its legal, valid and binding obligations enforceable against it in accordance with their       respective  terms,  except  as  enforceability  may  be  limited  by  (i)  applicable  bankruptcy,                                       - 60- 34881204v6 110062879

 

      insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally,       (ii) general principles of equity, regardless of whether considered in a proceeding in equity or at       law or (iii) implied covenants of good faith and fair dealing.              (d)   Non-Contravention.  None of the execution and delivery by the Servicer of this       Agreement  or  the  other  Facility  Documents  to  which  it  is  a  party,  the  consummation  of  the       transactions herein or therein contemplated, or compliance by it with the terms, conditions and       provisions  hereof  or  thereof,  will  (i)  conflict  with,  or  result  in  a  breach  or  violation  of,  or       constitute  a  default  under  its  Constituent  Documents,  (ii)  conflict  with  or  contravene  (A)  any       Applicable  Law,  (B)  any  indenture,  agreement  or  other  contractual  restriction  binding  on  or       affecting it or any of its assets, including any Loan Document, or (C) any order, writ, judgment,       award, injunction or decree binding on or affecting it or any of its assets or properties, or (iii)       result in a breach or violation of, or constitute a default under, or permit the acceleration of any       obligation or liability in, or but for any requirement of the giving of notice or the passage of time       (or both) would constitute such a conflict with, breach or violation of, or default under, or permit       any such acceleration of, any contractual obligation or any agreement or document to which it is       a party or by which it or any of its assets are bound (or to which any such obligation, agreement       or  document  relates),  except  in  the  case  of  clauses  (ii)  and  (iii)  above,  where  such  conflicts,       contravention,  breaches,  violations  or  defaults  could  not  reasonably  be  expected  to  have  a       Material Adverse Effect.              (e)   Governmental  Authorizations;  Private  Authorizations;  Governmental  Filings.       The  Servicer  has  obtained,  maintained  and  kept  in  full  force  and  effect  all  Governmental       Authorizations  and  Private  Authorizations  which  are  necessary  for  it  to  properly  carry  out  its       business, except where the failure to do so could not reasonably be expected to have a Material       Adverse Effect, and has made all material Governmental Filings necessary for the execution and       delivery  by  it  of  the  Facility  Documents  to  which  it  is  a  party,  and  the  performance  by  the       Servicer of its obligations under this Agreement, the other Facility Documents, and no material       Governmental Authorization, Private Authorization or Governmental Filing which has not been       obtained or made, is required to be obtained or made by it in connection with the execution and       delivery  by  it  of  any  Facility  Document  to  which  it  is  a  party  or  the  performance  of  its       obligations under this Agreement and the other Facility Documents to which it is a party.              (f)   Compliance with Agreements, Laws, Etc.  The Servicer has duly observed and       complied in all material respects with all Applicable Laws, including the Securities Act and the       Investment Company Act, relating to the conduct of its business and its assets.  The Servicer has       preserved  and  kept  in  full  force  and  effect  its  rights,  privileges,  qualifications  and  franchises,       except  where  the  failure  to  do  so  could  not  reasonably  be  expected  to  result  in  a  Material       Adverse Effect.  Without limiting the foregoing, (x) to the extent applicable, the Servicer is in       compliance  in  all  material  respects  with  Subject  Laws,  (y)  the  Servicer  has  adopted  internal       controls and procedures designed to ensure its continued compliance in all material respects with       the applicable provisions of the Subject Laws and to the extent applicable, will adopt procedures       consistent  in  all  material  respects with  the PATRIOT  Act  and  implementing  regulations, once       such  regulations  have  been  finalized,  and  (z)  to  the  knowledge  of  the  Servicer  (based  on  the       implementation of its internal procedures and controls), no investor in the Servicer is a Person       whose  name  appears  on  the  “List  of  Specially  Designated  Nationals”  and  “Blocked  Persons”       maintained by the OFAC.              (g)   Location of Records.  The Servicer’s chief place of business, its chief executive       office  and  the  office  in  which  the  Servicer  maintains  its  books  and  records  are located  in  the                                       - 61- 34881204v6 110062879

 

      State of New York.  The Servicer’s registered office and the jurisdiction of organization of the       Servicer is the jurisdiction referred to in Section 4.02(a).              (h)   Information and Reports.  Each Notice of Borrowing, each Monthly Report and       all  other  written  information,  reports,  certificates  and  statements  (other  than  projections  and       forward-looking statements) furnished by the Servicer to any Secured Party for purposes of or in       connection with this Agreement, the other Facility Documents or the transactions contemplated       hereby or thereby are (when taken as a whole) true and correct in all material respects and does       not  omit  to  state  a  material  fact  necessary  to  make  the  statements  contained  therein  when       considered in their entirety not misleading as of the date such information is stated or certified.       All projections and forward-looking statements furnished by the Servicer were prepared in good       faith based upon assumptions believed to be reasonable at the time they were provided and that       the actual results during the period or periods covered by such forward looking statements may       differ from the actual results and such differences may be material.              (i)   Taxes.  The Servicer has filed all income tax returns and all other material tax       returns which are required to be filed by it, if any, and has paid all taxes shown to be due and       payable on such returns, if any, or pursuant to any assessment received by any such Person, other       than any such taxes, assessments or charges that are being contested in good faith by appropriate       proceedings and for which appropriate reserves in accordance with GAAP have been established       or are not yet delinquent.                                   ARTICLE V                                   COVENANTS        Section 5.01. Affirmative  Covenants  of  the  Borrower.   The  Borrower  covenants  and  agrees that,  until  the  date  that  all  Obligations  have  been  paid  in  full,  other  than  contingent  indemnification obligations as to which no claim giving rise thereto has been asserted, and all Commitments hereunder have been terminated:              (a)   Compliance with Agreements, Laws, Etc.  It shall (i) duly observe, comply in all       material respects with all Applicable Laws relative to the conduct of its business or to its assets,       (ii) preserve and keep in full force and effect its legal existence, (iii) preserve and keep in full       force and effect its rights, privileges, qualifications and franchises, except where the failure to do       so  could  not reasonably  be  expected to result in a Material Adverse Effect, (iv) comply in all       material  respects  with  the  terms  and  conditions  of  each  Facility  Document,  its  Constituent       Documents and each Loan Document to which it is a party and (v) obtain, maintain and keep in       full  force  and  effect  all  material  Governmental  Authorizations,  Private  Authorizations  and       Governmental  Filings  which  are  necessary  to  carry  out  its  business  and  the  transactions       contemplated to be performed by it under the Facility Documents, its Constituent Documents and       the Loan Documents to which it is a party.              (b)   Enforcement.   (i)   It  shall  not  take  any  action,  and  will  use  commercially       reasonable efforts not to permit any action to be taken by others, that would release any Person       from any of such Person’s material covenants or obligations under any instrument included in the       Collateral, except in the case of (A) repayment of Collateral Loans, and (B) subject to the terms       of this Agreement, (i) amendments to Loan Documents that govern Defaulted Loans or Ineligible       Loans, (ii) amendments to Collateral Loans in accordance with the Credit and Collection Policies       and the Servicing Standard, (iii) actions taken in connection with the work-out or restructuring of                                       - 62- 34881204v6 110062879

 

      any  Collateral  Loan  in  accordance  with  the  provisions  hereof,  and  (C)  other  actions  by  the       Servicer to the extent not prohibited by this Agreement or as otherwise required hereby.              (c)   Except as provided for in this Agreement, it will not, without the prior written       consent of the Administrative Agent and the Required Lenders, contract with other Persons for       the  performance  of  actions  and  obligations  to  be  performed  by  the  Borrower  or  the  Servicer       hereunder.  Notwithstanding any such arrangement, the Borrower shall remain primarily liable       with  respect  thereto.   In  the  event  of  such  contract,  the  performance  of  such  actions  and       obligations by such Persons shall be deemed to be performance of such actions and obligations       by  the  Borrower,  and  the  Borrower  will  punctually  perform,  and  cause  the  Servicer  and  such       other Person to perform, all of its obligations and agreements contained in this Agreement or any       such other agreement.              (d)   Further  Assurances.   It  shall  promptly  upon  the  reasonable  request  of  the       Administrative  Agent  or  the  Required  Lenders  (through  the  Administrative  Agent),  at  the       Borrower’s expense, execute and deliver such further instruments and take such further action in       order to maintain and protect the Administrative Agent’s first-priority perfected security interest       in the Collateral pledged by the Borrower for the benefit of the Secured Parties free and clear of       any Liens (other than Permitted Liens).  At the reasonable request of the Administrative Agent or       the Required Lenders (through the Administrative Agent), the Borrower shall promptly take, at       the Borrower’s expense, such further action in order to establish and protect the rights, interests       and  remedies  created  or  intended  to  be  created  under  this  Agreement  in  favor  of  the  Secured       Parties  in  the  Collateral,  including  all  actions  which  are  necessary  to  (x)  enable  the  Secured       Parties  to  enforce  their  rights  and  remedies  under  this  Agreement  and  the  other  Facility       Documents,  and  (y)  effectuate  the  intent  and  purpose  of,  and  to  carry  out  the  terms  of,  the       Facility Documents.  Subject to Section 7.02, and without limiting its obligation to maintain and       protect the Administrative Agent’s first priority security interest in the Collateral, the Borrower       authorizes the Administrative Agent to file or record financing statements (including financing       statements describing the Collateral as “all assets” or the equivalent) and other filing or recording       documents or instruments with respect to the Collateral in such form and in such offices as are       necessary  to  perfect  the  security  interests  of  the  Administrative  Agent  under  this  Agreement       under each method of perfection required herein with respect to the Collateral, provided, that the       Administrative Agent does not hereby assume any obligation of the Borrower to maintain and       protect its security interest under this Section 5.01 or Section 7.07.  In addition, the Borrower       will take such reasonable action from time to time as shall be necessary to ensure that all assets       (including  the  Collection  Account,  but  excluding  all  Excluded  Amounts)  of  the  Borrower       constitute  “Collateral”  hereunder.   Subject  to  the  foregoing,  the  Borrower  will,  and,  upon  the       reasonable request of the Administrative Agent shall, at the Borrower’s expense, take such other       action (including executing and delivering or authorizing for filing any required UCC financing       statements)  as  shall  be  necessary  to  create  and  perfect  a  valid  and  enforceable  first-priority       security  interest  on  all  Collateral  acquired  by  the  Borrower  as  collateral  security  for  the       Obligations and will in connection therewith deliver such proof of corporate action, incumbency       of officers, opinions of counsel and other documents as is consistent with those delivered by the       Borrower pursuant to Section 3.01 on the Funding Effective Date or as the Administrative Agent       or the Required Lenders (through the Administrative Agent) shall have reasonably requested.              (e)   Financial Statements; Other Information.  It shall provide to the Administrative       Agent or cause to be provided to the Administrative Agent (with enough additional copies for       each Lender) with a copy to the Backup Servicer:                                        - 63- 34881204v6 110062879

 

                  (i)   (A) within  one  hundred  twenty  (120)  days  after  the  end  of  each  fiscal             year  of  (A1)  Originator,  its  audited  consolidated  balance  sheet  and  related  line  item             profit and loss statements as of the end of and for such year, setting forth in each case in             comparative form the figures for the previous fiscal year (with comparative statements             beginning in second year of operation), reported on by an  independent public accountant             of  recognized  national  standing  (without  a  “going  concern”  or  like  qualification  or             exception and without any qualification or exception as to the scope of such audit) to the             effect that such consolidated financial statements present fairly in all material respects             the  financial  condition  and  results  of  operations  of  Originator,  and  each  of  its             consolidated  subsidiaries  on  a  consolidated  basis  in  accordance  with  GAAP             consistently  applied,  and  (B2)  Borrower,  its  unaudited  management-prepared             consolidated balance sheet and related line item profit and loss statements as of the end             of and for such year, setting forth in each case in comparative form the figures for the             previous fiscal year (with comparative statements beginning in second year of operation),             in  accordance  with  GAAP  consistently  applied,  (B)  within  three  (3)  Business  Days             following filing thereof with the SEC, a copy of each Annual Report on Form 10-K, and             any amendment thereto, filed by Parent with the SEC, and (C) at any time Parent is not             required by applicable law to file any such Annual Report described in clause (B) with             the  SEC,  within  ninety  (90)  days  after  the  end  of  each  fiscal  year  of  Parent,  audited             financial statements for Parent and its Subsidiaries on a consolidated basis, consisting of             balance sheets, cash flow statements and statements (including statements on a business             segment basis) of income and retained earnings and, setting forth in comparative form in             each  case  the  figures  for  the  previous  fiscal  year,  which  financial  statements  shall  be             prepared  in  accordance  with  GAAP  consistently  applied  and  certified  without             qualification, by an independent certified public accounting firm of national standing and             acceptable to Administrative Agent;                    (ii)  (A) within forty-five (45) days after the end of each fiscal quarter of the             Originator,  financial  information  regarding  Originator,  consisting  of  (1)  its  unaudited             balance sheet as of the close of such fiscal quarter and the related statements of income             and  cash  flows for that portion of the fiscal year ending as of the close of such fiscal             quarter;  (2)  unaudited  statements  of  income  and  cash  flows  for  such  fiscal  quarter,             setting  forth in comparative  form  the figures  for  the corresponding  period in the prior             year and on a trailing twelve month basis, and (3) an income statement for Originator by             business  segment  as  currently  reported  by  Originator,  all  certified  by  a  Responsible             Officer as presenting fairly in all material respects the financial condition and results of             operations of the Originator in accordance with GAAP consistently applied, subject to             normal  year-end  audit  adjustments  and  the  absence  of  footnotes,  (B) within  forty-five             (45)  days  after  the  end  of  each  fiscal  quarter  of  each  fiscal  year  of  the  Borrower,  its             unaudited consolidated balance sheet and related line item profit and loss statements as             of the end of and for such fiscal quarter and the then elapsed portion of the fiscal year, in             each  case,  to  the  extent  produced,  setting  forth  in  each  case  in  comparative  form  the             figures for the corresponding period or periods of (or, in the case of the balance sheet, as             of the end of) the previous fiscal year (with comparative statements beginning in second             year  of  operation),  all  certified  by  a  Responsible  Officer  as  presenting  fairly  in  all             material respects the financial condition and results of operations of the Borrower and             each  of  its  consolidated  subsidiaries  on  a  consolidated  basis in  accordance  with             GAAP  consistently  applied,  subject  to  normal  year-end  audit  adjustments  and  the             absence of footnotes, (C) within three (3) Business Days following filing thereof with the              SEC, a copy of each Quarterly Report on Form 10-Q, and any amendment thereto, filed                                       - 64- 34881204v6 110062879

 

            by Parent with the SEC, and (D) at any time Parent is not required by applicable law to             file any such Quarterly Report described in clause (B) with the SEC, within forty five             (45) days after the end of each fiscal quarter of each fiscal year of the Parent, financial             information  regarding  Parent  and  its  consolidated  Subsidiaries,  certified  by  the  Chief             Financial Officer of Parent, consisting of consolidated (1) unaudited balance sheets as of             the close of such fiscal quarter and the related statements of income and cash flows for             that portion of the fiscal year ending as of the close of such fiscal quarter; (2) unaudited             statements of income and cash flows for such fiscal quarter, setting forth in comparative             form the figures for the corresponding period in the prior year and on a trailing twelve             month basis, and (3) an income statement for Parent on a consolidated basis by business             segment as currently reported by Parent, all prepared in accordance with GAAP (subject             to normal year-end adjustments);                    (iii) by no later than one hundred twenty (120) days after written request by             Administrative Agent, the Borrower shall deliver to the Administrative Agent an agreed             upon  procedures  audit  report  in  form  and  substance  satisfactory  to  the  Administrative             Agent in its sole discretion covering such matters as are set forth on Schedule 7 hereto;                    (iv)  as soon as possible, and in any event within two Business Days after a             Responsible  Officer  of  the  Borrower  obtains  actual  knowledge  of  the  occurrence  and             continuance of any Default or Event of Default, a certificate of a Responsible Officer of             the Borrower setting forth the details thereof and the action which the Borrower is taking             or proposes to take with respect thereto;                    (v)   on  each  Monthly  Reporting  Date,  together  with  each  Monthly  Report             delivered in accordance with Section 8.06, a Borrowing Base Calculation Statement as of             the Collection Period then ended;                    (vi)  promptly  after  the  occurrence  of  any  ERISA  Event,  notice  of  such             ERISA Event and copies of any communications with all Governmental Authorities or             any Multiemployer Plan with respect to such ERISA Event;                    (vii) promptly after the occurrence of any change in the Borrower’s taxpayer             identification number, notice of such change on an IRS Form W-9;                    (viii) as soon as possible and in any event at least two (2) Business Days prior             to  doing  so,  the  Borrower  shall  provide  notice  of  any  change  in  its  chief  place  of             business,  its  chief  executive  office  or  the  office  in  which  the  Borrower  maintains  its             books and records;                    (ix)  (A) as  soon  as  commercially  practicable  and  in  any  event  on  each             Monthly Reporting Date, a Compliance Certificate in the form attached hereto as Exhibit             J, calculating the Availability Test, the Interest Coverage Ratio Test, and each Collateral             Quality  Test,  and (B)  on  or  prior  to  each  Quarterly  Certification  Date,  a  Compliance             Certificate  in  the  form  attached  hereto  as  Exhibit  J,  certifying  the  Adjusted  Net             Investment  Income  of  the  Parent  and certifying  compliance  with  the  Asset  Coverage             Ratio Test as of the applicable Quarterly Determination Date;                    (x)   written notice of any amendment, consent, waiver or other modification             with  respect  to  a  Loan  Document  (other  than  with  respect  to  a  Defaulted  Loan  or  an             Ineligible Loan) shall be delivered to the Administrative Agent by no later than ten (10)                                       - 65- 34881204v6 110062879

 

            Business  Days  after  entering  into  any  such  agreement;  provided,  however  that  any             amendment,  consent,  waiver  or  other  modification  that  would  constitute  a  Material             Modification shall be subject to Section 5.02(t);                    (xi)  promptly  after  the  Borrower’s  knowledge  thereof,  (i)  notice  of  any             occurrence  which  causes  any  Collateral  Loan  to  become  a  Defaulted  Loan,  and  (ii)             notice of any proceedings pending or threatened (A) asserting an Insolvency Event has             occurred with respect to the Obligor of a Collateral Loan or (B) wherein the Obligor of a             Collateral  Loan,  or  any  other  Person  or  Governmental  Authority has alleged that such             Loan or the Loan Documents with respect to such Loan are illegal or unenforceable;                    (xii) with  the  financial  statements  delivered  pursuant  to  Section  5.01(d)(i)             above and within five (5) Business Days of the request of the Administrative Agent, a             statement of any pending or threatened material litigation, governmental, arbitration or             legal actions against the Borrower or Guarantor;                    (xiii) within  five  (5)  Business  Days  of  knowledge  thereof,  notice  of  any             material  pending  or  threatened  litigation,  governmental,  arbitration  or  legal  actions             against the Borrower or any Guarantor; and                    (xiv) from time to time such additional information regarding the Borrower’s,             Originator’s,  or  Parent’s  financial  position  or  business  and  the  Collateral  (including             reasonably  detailed  calculations  of  the  Availability  Test,  the  Interest  Coverage  Ratio             Test,  the  Asset  Coverage  Ratio  Test  and  each  Collateral  Quality  Test)  as  the             Administrative Agent or the Required Lenders (through the Administrative Agent) may             reasonably  request  if  reasonably  available  to  the  Borrower,  Originator,  or  Parent,  as             applicable.              (f)   Access  to  Records  and  Documents;  Audit  Rights.   It  shall  permit  the       Administrative  Agent  (or  any  Person  designated  by  the  Administrative  Agent  (including  any       consultants, accountants, lawyers and appraisers)) to, upon reasonable advance notice (which, so       long as no Event of Default shall have occurred and be continuing, shall not be less than five (5)       Business Days) and during normal business hours, (x) conduct evaluations and appraisals of the       Borrower’s computation of the Borrowing Base and the assets included in the Borrowing Base,       and  (y)  visit  and  inspect  and  make  copies  thereof  at  reasonable  intervals  of  (i)  of  its  books,       records  and  accounts  relating  to  its  business,  financial  condition,  operations,  assets  and  its       performance under the Facility Documents and the Loan Documents and to discuss the foregoing       with its and such Person’s officers, partners, employees and accountants, and (ii) all of its Loan       Documents,  in  each  case  all  as  often  as  the  Administrative  Agent  may  reasonably  request;       provided that so long as no Event of Default has occurred and is continuing, each Person entitled       to so visit, inspect, evaluate and appraise the Borrower’s records under this clause (f) may only       exercise  its  rights  under  this  clause  (f)  twice  during  any  fiscal  year  of  the  Borrower (it being       understood that the Borrower shall be responsible for all costs and expenses for one such visit,       inspection, evaluation or appraisal per year prior to the occurrence of an Event of Default).  The       Administrative  Agent  and  each  Lender  agrees  to  use  commercially  reasonable  efforts  to       coordinate with each other Lender in exercising their respective rights under this clause (f) with a       view to minimizing duplication of effort and expense by the Borrower.              (g)   Use  of  Proceeds.   It  shall  use  the  proceeds  of  each  Advance  made  hereunder       solely to (i) acquire Loans which shall be Collateral Loans hereunder, (ii) fund the commitments       of such previously-acquired Collateral Loans, (iii) replenish funds expended by the Borrower to                                       - 66- 34881204v6 110062879

 

      acquire Loans, (iv) pay costs and expenses directly connected with the transactions contemplated       herein, and (v) on any Payment Date, to pay any amount due and payable pursuant to Section       9.01(a)(ii)  on  such  Payment  Date  so  long  as  the  conditions  precedent  to  such  Borrowing  are       satisfied.  Without limiting the foregoing, it shall use the proceeds of each Advance in a manner       that does not, directly or indirectly, violate any provision of its Constituent Documents or any       Applicable Law, including Regulation T, Regulation U and Regulation X.              (h)   Bank  Accounts.   Borrower  and  Parent  shall  maintain  their  primary  depository       and disbursement accounts with Administrative Agent.              (i)   Opinions as to Collateral.                    (i)   On or before each five (5) year anniversary of the Closing Date until the             Final Maturity Date, the Borrower shall furnish to the Administrative Agent an opinion             of  counsel,  addressed  to  the  Borrower,  the  Lenders  and  the  Administrative  Agent,             relating to the continued perfection of the security interest granted by the Borrower to             the Administrative Agent hereunder.; and                     (ii)  At any time after the Sixth Amendment Closing Date, upon the request             of  any Lender  or  the  Administrative  Agent in  connection  with  an  assignment  made             pursuant to Section 15.06 hereof, the Borrower shall furnish to the Administrative Agent             such  legal  opinions  covering  such  matters  as  may  be  reasonably  requested  by  such             Lender  or  the  Administrative  Agent,  in  each  case,  addressed  to  the  Lenders  and  the             Administrative Agent.               (j)   No Other Business.  The Borrower shall not engage in any business or activity       other  than  borrowing  Advances  pursuant  to  this  Agreement,  originating,  funding,  acquiring,       owning,  holding,  administering,  selling,  enforcing,  lending,  exchanging,  redeeming,  pledging,       contracting  for  the  management  of  and  otherwise  dealing  with  Collateral  Loans  and  the other       Collateral  in  connection  therewith  and  entering  into  and  performing  its  obligations  under  the       Facility Documents, any applicable Loan Documents and any other agreements contemplated by       this Agreement, and shall not engage in any activity or take any other action that would cause the       Borrower  to  be  subject  to  U.S.  Federal  or  material  state  or  local  income  tax  on  a net  income       basis.              (k)   Tax Matters.  The Borrower shall (and each Lender hereby agrees to) treat the       Advances as debt for U.S. federal income tax purposes and will take no contrary position, except       to the extent required by law.  Assuming that such treatment is correct, the Borrower shall at all       times maintain its status as an entity disregarded as an entity separate from its owner for U.S.       federal income tax purposes.  The Borrower shall at all times ensure that its owners are and will       remain United States persons as defined by Section 7701(a)(30) of the Code. Notwithstanding       any  contrary  agreement  or  understanding,  the  Borrower,  the  Administrative  Agent  and  the       Lenders (and each of their respective employees, representatives or other agents) may disclose to       any  and  all  Persons, without  limitation  of  any  kind, the  tax  treatment  and  tax  structure  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 tax treatment and tax structure.  The       foregoing provision shall apply from the beginning of discussions between the parties.  For this       purpose, the tax treatment of a transaction is the purported or claimed U.S. tax treatment of the       transaction under applicable U.S. federal, state or local law, and the tax structure of a transaction       is any fact that may be relevant to understanding the purported or claimed U.S. tax treatment of       the transaction under applicable U.S. federal, state or local law.                                       - 67- 34881204v6 110062879

 

            (l)   Collections.   The  Borrower  (or  the  Servicer  on  behalf  of  the  Borrower)  shall       direct  all  Obligors  or  related  administrative  and  paying  agents  under  the  Loan  Documents  to       remit all Collections directly to the Collection Account.  Any payment by an Obligor in respect       of  any  indebtedness  owed  by  it  to  the  Borrower  shall,  except  as  otherwise  specified  by  such       Obligor  or  otherwise  required  by  contract  or  law  and  unless  otherwise  instructed  by  the       Administrative Agent, be applied as a collection of a payment by such Obligor (starting with the       oldest  such  outstanding  payment  due)  to  the  extent  of  any  amounts  then  due  and  payable       thereunder before being applied to any other receivable or other obligation of such Obligor.              (m)   Payments.   The  Borrower  shall  ensure  all  Collections  are  applied  solely  in       accordance with the provisions of this Agreement.  The Borrower shall pay all Obligations due       and owing to any party under any Facility Document when such Obligation is due and payable.              (n)   Certain  Environmental  Covenants.   With  respect  to  any  real  property  it  may       acquire pursuant to any foreclosure proceeding or otherwise, the Borrower shall:                    (i)   comply in all material respects with Environmental Laws, and obtain, be             in  material  compliance  with  and  maintain  all  Governmental  Authorizations  relating  to             the  Management  (as  defined  in  the  definition  of  “Environmental  Laws”)  or  release  of             hazardous  substances  required  by  Environmental  Laws  and  file  when  due  all             notifications required by Environmental Laws in connection with its ownership or use of             any real estate or the operation of its business;                    (ii)  transport  or  arrange  for  the  transport  of  all  Hazardous  Materials             generated by the Obligor’s business in compliance with Environmental Laws to storage,             treatment,  recycling  and  disposal  facilities  permitted  or  authorized  to  handle  such             Hazardous Materials by the Governmental Authorities with jurisdiction thereof;                    (iii) not  arrange  for  the  disposal  (as  defined  under  CERCLA)  of  any             Hazardous Material removed from the premises of third parties nor become the operator             (as defined under CERCLA) of any such third-party premises;                    (iv)  not Release or allow the Release of any Hazardous Materials other than             as allowed by Environmental Laws, at, upon, under, from or within the property owned             or occupied by the Borrower or any third-party location at which the Borrower conducts             its business and for which Borrower is responsible, including any Project Property (any             such event being hereinafter referred to as a “Hazardous Discharge”);                    (v)   notify  the  Administrative  Agent  within  five  (5)  Business  Days  of  any             Hazardous Discharge, any notice of violation, request for information or notification that             it is potentially responsible for investigation or cleanup of environmental conditions at             any property owned or occupied by the Borrower; any demand letter or complaint, order,             claim,  penalty  assessment,  citation  or  other  notice;  any  suit  or  other  proceeding,             administrative, civil  or criminal, at law or in equity, pending or threatened against the             Borrower  (collectively  referred  to as an “Environmental Complaint”) received from or             filed  by  the  Borrower  or  any  person  or  entity, including  any  Governmental  Authority,             with  respect  to  any  alleged  violation  of  any  Environmental  Law  or  with  respect  to             Management  of  Hazardous  Materials  or  any  other  environmental  matter  in  connection             with the Borrower’s ownership or use of any real estate or the conduct of its business,             which Hazardous Discharge or Environmental Complaint, if determined adversely to the             Borrower, would have a material adverse effect on any Project Property or the operations                                       - 68- 34881204v6 110062879

 

            or  condition,  financial  or  otherwise,  of  the  Borrower.   The  Borrower  shall  forward  a             copy  of  such  Environmental  Complaint  together  with  written  notice  to  the             Administrative Agent describing in reasonable detail the facts and circumstances giving             rise to the Hazardous Discharge or Environmental Complaint; and                    (vi)  promptly  investigate,  remediate  and  otherwise  fully  address  any  such             Hazardous  Discharge  to  the  extent  required  by  Environmental  Laws  and  to  the             satisfaction of applicable Governmental Authorities.              (o)   Third Party Lender Agreement.  Borrower shall comply in a timely manner with       all of its obligations and agreements under each Third Party Lender Agreement.              (p)   Negotiable Collateral.  The Borrower shall cause the original of each Loan Note       to  be  delivered  to  the  Custodian  as  provided  in  the  Custodial  Agreement.   Subject  to  the       Custodial Agreement, in the event that any other Collateral, including proceeds, is evidenced by       or consists of collateral readily negotiable, and if and to the extent that perfection or priority of       Administrative Agent’s security interest is dependent on or enhanced by possession, Borrower,       immediately  shall  endorse  and  deliver  physical  possession  of  such  negotiable  collateral  to  the       Custodian.              (q)   Records.  The Borrower shall maintain accurate and materially complete records       regarding all Collateral Loans; provided that in no event shall such records fail to comply with       the requirements of the SBA Rules and Regulations.              (r)   Due  Diligence.   The  Borrower  shall  cooperate  fully  with  the  Administrative       Agent  and  each  Lender  in  connection  with  the Administrative  Agent’s  and  each Lender’s due       diligence, from time to time, with respect to property proposed by Borrower as Collateral and the       Collateral  Loans.  Administrative  Agent  and  each  Lender  shall  be  entitled  to  procure  such       appraisals,  brokers’  price  opinions,  Lien  search  reports:  tax  filing  reports,  title  reports,       evaluations or other reports, certifications or information as it may require in connection with its       evaluation or re-evaluation of any Collateral.              (s)   Bailee.   Until  delivery  thereof  pursuant  to  the  Custodial  Agreement,  the       Borrower shall hold the Loan Notes and the Loan Documents (except for the Loan Notes which       shall be held by the Custodian as bailee for the Administrative Agent), as bailee and agent for the       Administrative Agent, and the SBA, as their interests may appear.              (t)   Delivery of Loan File.  Upon each origination by the Originator of a Loan to be       acquired  by  the  Borrower,  the  Borrower  shall  deliver  to  the  Custodian  (with  a  copy  to  the       Administrative Agent) the related Custodial Delivery Certificate together with the Loan File, the       contents of which shall be identified in the related Collateral Loan File Checklist, in each case in       accordance with the Custodial Agreement.              (u)   SBA  Compliance.   The  Borrower shall  promptly  deliver  to  the  Administrative       Agent the results of all SBA compliance audits and any material correspondence received or sent       by the Borrower with respect to the Collateral Loans unless the SBA has prohibited the delivery       of any such audits or correspondence.        Section 5.02. Negative Covenants of the Borrower.  The Borrower covenants and agrees that until  the  date  that  all  Obligations  have  been  paid  in  full,  other  than  contingent  indemnification                                        - 69- 34881204v6 110062879

 

obligations as to which no claim giving rise thereto has been asserted, and all Commitments hereunder have been terminated:              (a)   Restrictive  Agreements.   It  shall  not  enter  into  or  suffer  to  exist  or  become       effective  any  agreement  that  prohibits,  limits  or  imposes  any  condition  upon  its  ability  to  (i)       create,  incur,  assume  or  suffer  to  exist  any  Lien  (other  than  Permitted  Liens)  upon  any  of  its       property or revenues constituting Collateral, whether now owned or hereafter acquired, to secure       its  obligations  under  the  Facility  Documents  other  than  this  Agreement  and  the  other  Facility       Documents or (ii) perform its obligations under the Facility Documents.              (b)   Liquidation;  Merger;  Sale  of  Collateral.   It  shall  not  consummate  any  plan  of       liquidation,  dissolution,  partial  liquidation,  merger  or  consolidation  (or  suffer  any  liquidation,       dissolution or partial liquidation) nor sell, transfer, exchange or otherwise dispose of any of its       assets, or enter into an agreement or commitment to do so or enter into or engage in any business       with respect to any part of its assets, except (i) as expressly permitted by Section 10.01 of this       Agreement  (including  in  connection  with  the  repayment  in  full  of  the  Obligations),  (ii)  as       reasonably necessary in the determination of the Borrower for the Borrower not to be a “covered       fund” under the Volcker Rule, or (iii) with the prior written consent of the Required Lenders.       Further, it shall not, nor will it permit any of its Subsidiaries to, consummate a Division as the       Dividing Person, without the prior written consent of the Required Lenders.              (c)   Amendments  to  Constituent  Documents,  etc.   Without  the  consent  of  the       Administrative  Agent,  (i)  it  shall not  amend  or  modify its  Constituent  Documents  or  take any       action inconsistent with its Constituent Documents and (ii) it will not amend, modify or waive       any  term  or  provision  in  any  Facility  Document  (other  than  in  accordance  with  its  terms,       including  any  provision  thereof  requiring  the  consent  of  the  Administrative  Agent  or  all  or  a       specified percentage of the Lenders).              (d)   ERISA.  Neither it nor any member of the ERISA Group shall establish any Plan       or Multiemployer Plan.              (e)   Liens.  It shall not create, assume or suffer to exist any Lien on any of its assets       now  owned  or hereafter  acquired  by it  at  any  time or  on the equity interests in respect of the       Borrower, except for Permitted Liens.              (f)   Margin Requirements.  It shall not (i) extend credit to others for the purpose of       buying or carrying any Margin Stock in such a manner as to violate Regulation T or Regulation       U or (ii) use all or any part of the proceeds of any Advance, whether directly or indirectly, and       whether immediately, incidentally or ultimately, for any purpose that violates the provisions of       the Regulations of the Board of Governors, including, to the extent applicable, Regulation U and       Regulation X.              (g)   Restricted  Payments.   Except  as  permitted  pursuant  to  Section  5.01(g)  and,       Section 5.02(o), it shall not make, directly or indirectly, any Restricted Payment (whether in the       form of cash or other assets) or incur any obligation (contingent or otherwise) to do so.              (h)   Changes to Filing Information.  It shall not change its name, its chief place of       business,  its  chief  executive  office,  the  office  in  which  the  Borrower  maintains  its  principal       books and records or its jurisdiction of organization, unless it gives ten (10) days’ prior written       notice  to  the  Administrative  Agent  and  takes  all  actions  necessary  to  protect  and  perfect  the       Administrative  Agent’s  perfected  security  interest  in  the  Collateral  and  promptly  files                                       - 70- 34881204v6 110062879

 

      appropriate  amendments  to  all  previously  filed  financing  statements  that  are  necessary  to       continue to perfect the security interests of the Administrative Agent under this Agreement under       each method of perfection required herein with respect to the Collateral (and shall provide copy       of such amendments to the Administrative Agent).              (i)   Transactions with Affiliates.  Except as permitted or required under the Facility       Documents, it shall not sell, lease or otherwise transfer any property or assets to, or purchase,       lease  or  otherwise  acquire  any  property  or  assets  from,  or  otherwise  engage  in  any  other       transactions  with, any  of its Affiliates (including, without limitation, sales of Defaulted Loans       and  other  Collateral  Loans)  unless  such  transaction  is  upon  terms  no  less  favorable  to  the       Borrower than it would obtain in a comparable arm’s length transaction with a Person that is not       an Affiliate (it being agreed that any purchase or sale at par shall be deemed to comply with this       provision).              (j)   Investment Company Restriction.  It shall (i) not become required to register as       an  “investment  company”  under  the  Investment  Company  Act  and  (ii)  ensure  that  the       transactions contemplated hereby do not either (x) cause the Borrower to be a “covered fund” for       purposes of the Volcker Rule or (y) create an ownership interest in the Borrower in favor of the       Administrative  Agent  or  the  Lenders  for  purposes  of  the  Volcker  Rule.   For  purposes  of  this       subclause  (j),  “covered  fund”  and  “ownership  interest”  have  the  meanings  set  forth  in  the       Volcker Rule.              (k)   Subject  Laws.   It  shall  not  utilize  directly  or  indirectly  the  proceeds  of  any       Advance for the benefit of any Person controlling, controlled by, or under common control with       any  other  Person,  whose  name  appears  on  the  List  of  Specially  Designated  Nationals  and       Blocked Persons maintained by OFAC or otherwise in violation of any Subject Laws.              (l)   No Claims Against Advances.  Subject to Applicable Law, it shall not claim any       credit on, make any deduction from, or dispute the enforceability of payment of the principal or       interest payable (or any other amount) in respect of the Advances or assert any claim against any       present or future Lender, by reason of the payment of any Taxes levied or assessed upon any part       of the Collateral.              (m)   Indebtedness; Guarantees; Securities.  It shall not incur or assume or guarantee       any indebtedness, obligations (including contingent obligations) or other liabilities, or issue any       additional  securities,  whether  debt  or  equity,  in  each  case  other  than  (i)  pursuant  to  or  as       expressly  permitted  by  or  contemplated  by  this  Agreement  or  (ii)  pursuant  to  customary       indemnification and expense reimbursement and similar provisions under the Loan Documents or       otherwise in the ordinary course of business as is customary for Special Purpose Entities.  The       Borrower  shall  not  acquire  any  Loans  or  other  property  other  than  as  expressly  permitted       hereunder; it being understood and agreed that the Borrower shall be permitted to acquire Loans       from its Affiliates and from unaffiliated third parties.              (n)   Validity of this Agreement.  It shall not (i) take any action to permit or fail to       take any action that would cause the validity or effectiveness of this Agreement or any grant of       Collateral  hereunder  to  be  impaired,  or  permit  the  Lien  of  this  Agreement  to  be  amended,       hypothecated, subordinated, terminated or discharged, or permit any Person to be released from       any covenants or obligations with respect to this Agreement (except in accordance with its terms)       and (ii) take any action that would permit the Lien of this Agreement not to constitute a valid       first priority security interest in the Collateral (subject to Permitted Liens).                                       - 71- 34881204v6 110062879

 

            (o)   Priority of Payments.  It shall not pay any distributions other than in accordance       with  the  Priority  of  Payments  (it  being  understood  that  any  amounts  paid  to  the  Borrower       pursuant to the Priority of Payments may be distributed to Originator, who may in turn further       distribute such amounts at its discretion).              (p)   Subsidiaries.  It shall not have or permit the formation of any subsidiaries.              (q)   Name.  It shall not conduct business under any name other than its own.              (r)   Employees.  It shall not have any employees (other than officers and directors to       the extent they are employees).              (s)   Title  to  Project  Property.   The  Borrower  shall  not  take  title  to  any  Project       Property, in foreclosure or otherwise, except as contemplated by this Agreement.              (t)   Changes  to  Loan  Documents.   If  any  amendment,  consent,  waiver  or  other       modification with respect to a Loan Document (other than with respect to a Defaulted Loan or an       Ineligible Loan) would constitute a Material Modification, then the Borrower shall not cause or       vote in favor of any such Material Modification without providing the Administrative Agent with       a  copy  of  such  proposed  Material  Modification  and  obtaining  the  written  consent  of  the       Administrative Agent and the Required Lenders (such consent not to be unreasonably withheld       or delayed).              (u)   Non-Petition.  The Borrower shall not be party to any agreements under which it       has  any  material  obligations  or  liability  (direct  or  contingent)  without  using  commercially       reasonable efforts to include customary “non-petition” and “limited recourse” provisions therein       (and shall not amend or eliminate such provisions in any agreement to which it is party), except       for  customary  service  contracts  and  engagement  letters  entered  into  with  Permitted  Agents  in       connection with the Loans and the Loan Documents.              (v)   Hedging  Agreements.   The  Borrower  shall  not  enter  into  any  interest  rate       hedging agreements other than interest rate caps and shall at all times be a party to interest rate       hedging agreements pursuant to interest rate cap agreements on terms reasonably acceptable to       the Administrative Agent.        Section 5.03. Affirmative Covenants of the Servicer.  The Servicer covenants and agrees that until  the  date  that  all  Obligations  have  been  paid  in  full,  other  than  contingent  indemnification obligations as to which no claim giving rise thereto has been asserted, and all Commitments hereunder have been terminated:              (a)   Compliance with Agreements, Laws, Etc.  It shall (i) duly observe, comply in all       material respects with all Applicable Laws relative to the conduct of its business or to its assets,       (ii) preserve and keep in full force and effect its legal existence, (iii) preserve and keep in full       force and effect its rights, privileges, qualifications and franchises, except where the failure to do       so  could  not reasonably  be  expected to result in a Material Adverse Effect, (iv) comply in all       material  respects  with  the  terms  and  conditions  of  each  Facility  Document,  Constituent       Document and each Loan Document to which it is a party, and (v) obtain, maintain and keep in       full  force  and  effect  all  material  Governmental  Authorizations,  Private  Authorizations  and       Governmental  Filings  which  are  necessary  to  carry  out  its  business  and  the  transactions       contemplated to  be performed  by  it  under  the  Facility Documents, the Constituent Documents       and the Loan Documents to which it is a party.                                       - 72- 34881204v6 110062879

 

            (b)   Enforcement.                    (i)   It shall not take any action, and will use commercially reasonable efforts             not to permit any action to be taken by others, that would release any Person from any of             such Person’s covenants or obligations under any instrument included in the Collateral,             except in the case of (A) repayment of Collateral Loans, (B) subject to the terms of this             Agreement,  (1)  amendments  to  Loan  Documents  that  govern  Defaulted  Loans  or             Ineligible Loans, (2) amendments to Collateral Loans in accordance with the Credit and             Collection Policies and the Servicing Standard, and (3) actions taken in connection with             the work-out or restructuring of any Collateral Loan in accordance with the provisions             hereof,  and  (C)  other  actions  by  the  Servicer  to  the  extent  not  prohibited  by  this             Agreement or as otherwise required hereby.                    (ii)  It will not, without the prior written consent of the Administrative Agent             and the Required Lenders, contract with other Persons for the performance of actions and             obligations  to  be  performed  by  the  Servicer  hereunder.   Notwithstanding  any  such             arrangement, the Servicer shall remain primarily liable with respect thereto.  In the event             of such contract, the performance of such actions and obligations by such Persons shall             be deemed to be performance of such actions and obligations by the Servicer, and the             Servicer will punctually perform all of its obligations and agreements contained in this             Agreement or any such other agreement.              (c)   Further Assurances.   It shall  promptly  at  the  Borrower’s expense,  execute and       deliver  such  further  instruments  and  take  such  further  action  as  reasonably  requested  by       Administrative  Agent  in  writing  in  order  to  maintain  and  protect  the  Administrative  Agent’s       first-priority perfected security interest in the Collateral pledged by the Borrower for the benefit       of  the Secured  Parties  free  and  clear  of any  Liens (subject to  Permitted Liens).  The Servicer       shall  promptly  take,  at  the  reasonable  request  of  Administrative  Agent  and  at  the  Borrower’s       expense, such further action necessary to establish and protect the rights, interests and remedies       created  or  intended  to  be  created  under  this  Agreement  in  favor  of  the  Secured  Parties  in  the       Collateral, including all actions which are necessary to (x) enable the Secured Parties to enforce       their  rights  and  remedies  under  this  Agreement  and  the  other  Facility  Documents,  and  (y)       effectuate the intent and purpose of, and to carry out the terms of, the Facility Documents.  In       addition, the Servicer will take such reasonable action from time to time as shall be necessary to       ensure that all assets (including all Collection Accounts, but excluding all Excluded Amounts) of       the Borrower constitute “Collateral” hereunder.  Subject to the foregoing, the Servicer will at the       reasonable  request  of  Administrative  Agent  and  at  the  Borrower’s  expense,  take  such  other       action (including executing and delivering or authorizing for filing any required UCC financing       statements)  as  shall  be  necessary  to  create  and  perfect  a  valid  and  enforceable  first-priority       security  interest  on  all  Collateral  acquired  by  the  Borrower  as  collateral  security  for  the       Obligations.              (d)   Access to Records and Documents.  It shall permit the Administrative Agent (or       any Person designated by the Administrative Agent) to, upon reasonable advance notice (which,       so long as no Event of Default shall have occurred and be continuing, shall not be less than five       (5) Business Days) and during normal business hours, visit and inspect and make copies thereof       at  reasonable  intervals  (i)  its  books,  records  and  accounts  relating  to  its  business,  financial       condition,  operations,  assets  and  its  performance  under  the  Facility  Documents  and  the  Loan       Documents and to discuss the foregoing with its and such Person’s officers, partners, employees       and  accountants,  and  (ii)  all  of  its  Loan  Documents,  in  each  case  all  as  often  as  the       Administrative Agent may reasonably request; provided that so long as no Event of Default has                                       - 73- 34881204v6 110062879

 

      occurred, each Person entitled to so visit and inspect the Servicer’s records under this paragraph       (d)  may  only  exercise  its  rights  under  this  paragraph  (d)  twice  during  any  fiscal  year  of  the       Servicer (it being understood that the Borrower shall be responsible for all costs and expenses for       each such visit).              (e)   Audit Rights.  It will permit the Administrative Agent and any Lender (or any       representatives  thereof  (including  any  consultants,  accountants,  lawyers  and  appraisers))  to       conduct  evaluations  and  appraisals  of  the  Borrower’s  or  the  Servicer’s  computation  of  the       Borrowing Base and the assets included in the Borrowing Base no more than twice during any       fiscal  year  of  the  Servicer.   The  Borrower  shall  pay  the  reasonable  and  documented  fees  and       expenses of any representatives retained by the Administrative Agent or any Lender to conduct       any such evaluation or appraisal; provided that (i) the Borrower shall not be required to pay such       fees and expenses for each such evaluation or appraisal and (ii) such evaluation or appraisal shall       not be duplicative of the report required under Section 8.08.              (f)   SBA  Compliance.   The  Servicer  shall  promptly  deliver  to  the  Administrative       Agent the results of all SBA compliance audits and any material correspondence received or sent       by the Servicer with respect to the Collateral Loans unless the SBA has prohibited the delivery of       any such audits or correspondence.        Section 5.04. Negative  Covenants  of  the  Servicer.   The  Servicer  covenants  and  agrees  that until  the  date  that  all  Obligations  have  been  paid  in  full,  other  than  contingent  indemnification obligations as to which no claim giving rise thereto has been asserted, and all Commitments hereunder have been terminated:              (a)   Restrictive  Agreements.   It  shall  not  enter  into  or  suffer  to  exist  or  become       effective any agreement that prohibits or expressly limits or imposes any material condition upon       its ability to perform its obligations under the Facility Documents.              (b)   Validity of this Agreement.  It shall not (i) take any action to permit or fail to       take any action that would cause the validity or effectiveness of this Agreement against Servicer       to be impaired, or cause the lien of this Agreement to be amended, hypothecated, subordinated,       terminated or discharged, or permit any Person to be released from any covenants or obligations       with respect to this Agreement (except in accordance with its terms) and (ii) except as permitted       by this Agreement, take any action that would directly cause the lien of this Agreement not to       constitute a valid first priority security interest in the Collateral (subject to Permitted Liens).              (c)   Liquidation;  Merger;  Disposition  of  Assets.   The  Servicer  shall  not  enter  into       any merger, liquidation, or sale of substantially all of its assets without the prior written consent       of the Administrative Agent.              (d)   Changes  to  Loan  Documents.   If  any  amendment,  consent,  waiver  or  other       modification with respect to a Loan Document (other than with respect to a Defaulted Loan or an       Ineligible Loan) would constitute a Material Modification, then the Servicer shall not cause or       vote in favor of any such Material Modification to occur without providing the Administrative       Agent  and  the  Required  Lenders  with  a  copy  of  such  proposed  Material  Modification  and       obtaining  the  written  consent  of  the Administrative  Agent  and  the  Required  Lenders  (such       consent not to be unreasonably withheld or delayed).        Section 5.05. Certain  Undertakings  Relating  to  Separateness.   (a)  Without  limiting  any,  and subject to all, other covenants of the Borrower contained in this Agreement, the Borrower shall conduct                                       - 74- 34881204v6 110062879

 

its business and operations separate and apart from that of any other Person (including the Originator and any of its Affiliates) and in furtherance of the foregoing:              (a)   The  Borrower  shall  maintain  its  accounts,  financial  statements,  books,       accounting and other records, and other Borrower documents separate from those of any other       Person, provided that the Borrower may be consolidated with the Originator solely for tax and       accounting purposes.              (b)   The Borrower shall not commingle or pool any of its funds or assets with those       of any Affiliate or any other Person (other than as expressly contemplated herein with respect to       the Excluded Amounts), and it shall hold all of its assets in its own name, except as otherwise       permitted or required under the Facility Documents.              (c)   The  Borrower  shall  conduct  its  own  business  in  its  own  name  and,  for  all       purposes,  shall  not  operate,  or  purport  to  operate,  collectively  as  a  single  or  consolidated       business entity with respect to any Person.              (d)   The  Borrower  shall  pay  its  own  debts,  liabilities  and  expenses  (including       overhead expenses, if any) only out of its own assets as the same shall become due.              (e)   The Borrower has observed, and shall observe all (i) limited liability company       formalities  and  (ii)  other  organizational  formalities,  in  each  case  to  the  extent  necessary  or       advisable to preserve its separate existence, and shall preserve its existence, and it shall not, nor       shall  it  permit  any  Affiliate  or  any  other  Person  to,  amend,  modify  or  otherwise  change  its       limited liability company agreement in a manner that would adversely affect the existence of the       Borrower as a bankruptcy-remote special purpose entity.              (f)   The Borrower shall not (i) guarantee, become obligated for, or hold itself or its       credit  out  to  be  responsible  for  or  available  to  satisfy,  the  debts  or  obligations  of  any  other       Person, or (ii) control the decisions or actions respecting the daily business or affairs of any other       Person except as permitted by or pursuant to the Facility Documents.              (g)   The  Borrower  shall,  at  all  times,  hold  itself out  to the  public  as  a  legal  entity       separate  and  distinct  from  any  other  Person;  provided  that  the  assets  of  the  Borrower  may  be       consolidated into the Originator for accounting purposes and included in consolidated financial       statements of the Originator.              (h)   The Borrower shall not identify itself as a division of any other Person.              (i)   The Borrower shall maintain its assets in such a manner that it will not be costly       or difficult to segregate, ascertain or identify its individual assets from those of any Affiliate or       any other Person.              (j)   The  Borrower  shall  not  use  its  separate  existence  to  perpetrate  a  fraud  in       violation of Applicable Law.              (k)   The Borrower shall not, in connection with the Facility Documents, act with an       intent to hinder, delay or defraud any of its creditors in violation of Applicable Law.              (l)   The Borrower shall maintain an arm’s length relationship with its Affiliates and       the Servicer.                                       - 75- 34881204v6 110062879

 

            (m)   Except as permitted by or pursuant to the Facility Documents, the Borrower shall       not grant a security interest or otherwise pledge its assets for the benefit of any other Person.              (n)   Except  as  provided  in  the  Facility  Documents,  the  Borrower  shall  not  acquire       any securities or debt instruments of the Originator, its Affiliates or any other Person.              (o)   The  Borrower  shall  not  make  loans  or  advances  to  any  Person,  except  for  the       Collateral Loans and as permitted by or pursuant to the Facility Documents.              (p)   The  Borrower  shall  make  no  transfer  of  its  assets  except  as  permitted  by  or       pursuant to the Facility Documents.              (q)   The  Borrower  shall  file  its  own  tax  returns  separate  from  those  of  any  other       Person or entity, except to the extent that the Borrower is not required to file tax returns under       applicable  law  or  is  not  permitted  to  file  its  own  tax  returns  separate from those of any other       Person.              (r)   The Borrower shall not acquire obligations or securities of its members.              (s)   The Borrower shall use separate stationery, invoices and checks.              (t)   The Borrower shall correct any known misunderstanding regarding its separate       identity.              (u)   The  Borrower  shall  maintain  adequate  capital  in  light  of  its  contemplated       business operations.              (v)   The  Borrower  shall  at  all  times  be  organized  as  a  special  purpose  entity  with       organizational documents substantially similar in all material respects to those in effect on the       Closing Date.                                   ARTICLE VI                               EVENTS OF DEFAULT        Section 6.01. Events of Default.  “Event of Default”, wherever used herein, means any one of the following events (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body):              (a)   a default by the Borrower in the payment, when due and payable, of any Interest       on the Advances owing hereunder, Unused Line Fees, or fees due to the Administrative Agent       pursuant to  the  Administrative  Agent  Fee  Letter,  and  such default is not cured within two (2)       Business Days after the occurrence of such default; or              (b)   the failure to reduce the outstanding Advances to $0 on the Final Maturity Date;       or              (c)   the  Borrower  becomes  an  investment  company  required  to be registered under       the Investment Company Act, or Parent fails to be in material compliance with the Investment       Company Act; or                                       - 76- 34881204v6 110062879

 

            (d)   the  failure  of any  representation  or  warranty of  the  Borrower, the  Servicer,  or       any Guarantor made in this Agreement, in any other Facility Document, Notice of Borrowing,       Monthly  Report,  Borrowing  Base  Calculation  Statement  or  other  writing  delivered  pursuant       hereto or thereto or in connection herewith or therewith to be correct in each case in all material       respects when the same shall have been made and such failure shall remain uncured (to the extent       such failure may be cured); or              (e)   a default in any material respect in the performance, or breach in any material       respect, of any covenant, obligation or agreement of the Borrower contained in Sections 5.01(a)       (with respect to the Borrower’s existence), 5.01(j) or 5.02; or              (f)   except as otherwise provided in this Section 6.01, (i) a failure by the Borrower or       the  Servicer  to  deliver  (or  cause  to  be  delivered)  any  Monthly  Report,  or  Borrowing  Base       Calculation  Statement  pursuant  to  Section  5.01(e)(v),  quarterly  financial  report  pursuant  to       Section 5.01(de)(ii) or notice of a Default or Event of Default pursuant to Section 5.01(de)(iv)       when  due  and  such  default  is  not  cured  within  three  (3)  Business  Days;  (ii)  a  default  in  the       performance,  or  breach  in  a  covenant  by  the  Borrower  with  respect  to  the  management  and       distribution of funds received with respect to the Collateral Loans and such default is not cured       within two (2) Business Days; (iii) a failure by the Borrower to deliver (or cause to be delivered)       any  material  information  requested  by  the  Administrative  Agent  or  the  Required  Lenders       pursuant to Section 5.01(de)(xiv) within three (3) Business Days of such request; or (iv) a default       in  any  material  respect  in  the  performance,  or  breach  in  any  material  respect,  of  any  other       covenant  or  other  agreement  of  the  Borrower or  Servicer under  this  Agreement  or  the  other       Facility Documents (other than failure to comply with any Concentration Limitation); or              (g)   the Borrower incurs any Indebtedness other than the Obligations, or the Parent or       any  of  its  Affiliates  incur  any  other  Indebtedness  relating  to  SBA  Loans  other  than  the       Obligations and the Sterling Bank Facility;              (h)   the  rendering  of  one  or  more  final  judgments,  decrees  or  orders by  a  court  or       arbitrator  of  competent  jurisdiction  for  the payment of  money  in  excess  individually  or  in  the       aggregate  of  $100,000  against  the  Originator  or  Servicer,  or  $15,000  against  the  Borrower       (exclusive of any amounts fully covered by insurance), and the Borrower or the Originator shall       not  have  either  (x)  discharged  or  provided  for  the  discharge  of  any  such  judgment,  decree  or       order in accordance with its terms or (y) perfected a timely appeal of such judgment, decree or       order and caused the execution of same to be stayed during the pendency of the appeal, in each       case, within thirty (30) days from the date of entry thereof; or              (i)   an Insolvency Event relating to the Borrower, Servicer, or any Guarantor occurs;       or              (j)   any  change  to  the  Credit  and  Collection  Policies  that  has  a  material  adverse       effect  on  the  interests  and  rights  and  remedies  of  the  Administrative  Agent  or  the  Lenders       without the prior written consent of the Administrative Agent in its sole discretion; or              (k)   any Facility Document to which the Borrower, the Servicer or the Originator is a       party shall (except in accordance with its terms) terminate, cease to be effective or cease to be       the  legally  valid,  binding  and  enforceable  obligation  of  the  Borrower,  the  Servicer  or  the       Originator,  as  the  case may  be, (ii)  the  Borrower,  the  Servicer, the  Originator, or any of their       Affiliates shall, directly or indirectly, contest in any manner the effectiveness, validity, binding       nature or enforceability of any Facility Document or any Lien purported to be created thereunder,                                       - 77- 34881204v6 110062879

 

      or (iii) any Lien securing any obligation under any Facility Document shall, in whole or in part       (other than in respect of a de minimis amount of Collateral), cease to be a first priority perfected       security interest of the Administrative Agent except for Permitted Liens; or              (l)   the Internal Revenue Service shall file notice of a Lien pursuant to Section 6323       of the Code with regard to any assets of the Borrower, or (ii) the PBGC shall file notice of a Lien       pursuant to Section 4068 of ERISA with regard to any of the assets of the Borrower, unless in       each case either such Lien would not be reasonably expected to have a Material Adverse Effect       or  a  reserve has  been established  therefor  in  accordance  with  GAAP  and such action is being       diligently  contested  in  good  faith  by  appropriate  proceedings  (except  to  the  extent  that  the       amount secured by such Lien exceeds $100,000 in which case such Lien shall be deemed to have       a Material Adverse Effect); or              (m)   a  Change  of  Control  occurs  without  the  written  consent  of  the  Administrative       Agent; or              (n)   the  Borrower  ceases to  have  a  valid ownership  interest  in all of the Collateral       (subject  to  Permitted  Liens)  or  the  Administrative  Agent  shall  fail  to  have  a  first  priority       perfected  security  interest  in  any  part  of  the  Collateral  (other  than  in  respect  of  a de  minimis       amount of Collateral and subject to Permitted Liens), which failure was not directly caused by       the Administrative Agent, the Lenders or any of their agents; or              (o)   the Borrower shall assign or attempt to assign any of its rights, obligations, or       duties under the Facility Documents without the prior written consent of each Lender; or              (p)   the Interest Coverage Ratio Test shall not be satisfied as of any Determination       Date occurring on or after the sixth Determination Date after the Closing Date; or              (q)   the  Availability  Test  shall  not  be  satisfied,  or  the  Asset  Coverage  Ratio  Test       shall not be satisfied for greater than five (5) continuous business days (it being understood that       any time when the Asset Coverage Ratio Test is not satisfied, Borrower shall not be permitted to       request any Advances under this Agreement); or              (r)   the  suspension,  loss, revocation, or  failure  to renew  or file  for  renewal of any       legally  required  registration,  approval,  license,  permit,  or  franchise  now  held  or  hereafter       acquired by the Borrower or the Servicer or the issuance of any stay order, cease and desist order       or similar judicial or non-judicial sanction prohibiting the collection of the Collateral Loans, in       each case only to the extent that the same is reasonably likely to result in a Material Adverse       Effect; or              (s)   the Borrower, the Servicer, or any Guarantor (i) defaults in making any payment       required  to  be  made  under  any  agreement  for  borrowed  money,  and  such  default  is  not  cured       within the relevant cure period or (ii) fails to perform or observe any other condition or covenant,       or any other event shall occur or condition exist, under any agreement or instrument relating to       any such indebtedness, if the effect of such failure, event or condition is to cause, or to permit the       holder or holders of such Indebtedness or beneficiary or beneficiaries of such Indebtedness (or a       trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries) to cause such       indebtedness to be declared to be due and payable prior to its stated maturity (without regard to       any subordination terms with respect thereto); or                                        - 78- 34881204v6 110062879

 

            (t)   (i)  one  or  more  acts  (including  any  failure(s)  to  act)  by  the  Borrower,  the       Servicer,  or  the  Originator  occurs  that  constitutes  fraud  in  the  performance  of  services       comparable to those contemplated to be provided by the Borrower, the Servicer or the Originator       in  the  Facility  Documents  or  (ii)  the  Borrower,  the  Servicer  or  the  Originator  or  any  senior       officer of the Borrower, the Servicer or the Originator is indicted on charges of, or convicted of,       a felony criminal offense related to the business of the Borrower, the Servicer or the Originator;       or              (u)   a Key Man Event shall have occurred; or              (v)   any Collateral Quality Test shall not be satisfied; or              (w)   the Custodian is terminated by the Borrower without the written consent of the       Administrative  Agent  or  resigns  and  a  successor  Custodian  acceptable  to  the  Administrative       Agent is not appointed within the applicable notice period set forth in the Custodial Agreement;       or              (x)   the  Borrower  or  Servicer  shall  not  deliver  any  Loan  Note  to  the  Custodian       pursuant to the Custodial Agreement by the close of business on the tenth Business Day after the       funding date of any Collateral Loan; or              (y)   the Borrower, Originator or Servicer shall lose, or have any material limitation       imposed upon, its authority to process, close, service, collect enforce or liquidate any Loans; or              (z)   the  Parent  shall  have  Adjusted  Net  Investment  Income  of  less  than  $0  in  any       fiscal quarter; or              (aa)  a Servicer Termination Event shall occur.        Section 6.02. Remedies  upon  an  Event  of  Default.   (a)   Upon  a  Responsible  Officer  of  the Borrower obtaining knowledge of the occurrence of an Event of Default, the Borrower shall notify the Administrative Agent in accordance with Section 5.01(d)(iv).              (a)   Upon  the  occurrence  and  during  the  continuance  of  any  Event  of  Default,  in       addition to all rights and remedies specified in this Agreement and the other Facility Documents,       including  Article  VII,  and  the  rights  and  remedies  of  a  secured  party  under  Applicable  Law,       including the UCC (which rights shall be cumulative), the Administrative Agent shall,may, in its       discretion, and at the request of, or may with the consent of, the Required Lenders shall, by       notice to the Borrower, do any one or more of the following: (1) declare the Commitments to be       terminated  forthwith,  whereupon  the  Commitments  shall  forthwith  terminate,;  (2)  impose       Reserves; and (23) declare the principal of and the accrued interest on the Advances and all other       amounts  whatsoever  payable  by  the  Borrower  hereunder  to  be  forthwith  due  and  payable,       whereupon such amounts shall be immediately due and payable without presentment, demand,       protest  or  other  formalities  of  any  kind,  all  of  which  are  hereby  waived  by  the  Borrower;       provided  that,  upon  the  occurrence  of  any  Event  of  Default described  in clause  (f)  of  Section       6.01,  the  Commitments  shall  automatically  terminate  and  the  Advances  and  all  such  other       amounts shall automatically become due and payable, without any further action by any party.              (b)   The  Borrower  hereby  agrees  that it  will, at  the Borrower’s expense and at the       direction of the Administrative Agent, (i) assemble all or any part of the Collateral as directed by       the Administrative Agent and make the same available to the Administrative Agent at a place to                                       - 79- 34881204v6 110062879

 

      be designated by the Administrative Agent and (ii) without notice except as specified below, sell       the Collateral or any part thereof at a public or private sale in accordance with Applicable Law,       subject to the terms of the applicable Third Party Lender Agreement and the rights of the SBA       and CDC to receive notice of such sale and, if applicable, be given the option to purchase any       Loans subject  to  such  sale  thereunder.   The  Borrower agrees  that, to  the  extent notice of sale       shall be required by law, ten (10) days’ notice to the Borrower of any sale hereunder shall be       sufficient  notice,  and  the  Borrower  agrees  that  such  notice  shall  constitute  reasonable       notification.  All cash proceeds received by the Administrative Agent in respect of any sale of,       collection from, or other realization upon, all or any part of the Collateral (after payment of any       amounts incurred in connection with such sale) shall be deposited into the Collection Account       and to be applied pursuant to Section 9.01(a)(ii).              If the Administrative Agent elects to sell the Collateral in whole or in part, at a public or       private sale (subject to the terms of the applicable Third Party Lender Agreement and the rights       of  the SBA  and  CDC to  receive  notice  of  such sale and,  if  applicable, be given  the option  to       purchase  any  Loans  subject  to  such  sale  thereunder),  the  Borrower  or  any  of  its  Affiliates  or       assignees shall have the right of first refusal to repurchase the Collateral, in whole but not in part,       prior to such sale at a purchase price that is equal to the amount of the Obligations as of the date       of such proposed sale.  Such right of first refusal shall terminate not later than 1:00 p.m. (New       York  time)  on  the  fifth  Business  Day  following  the  Business  Day  on  which  the  Borrower       receives notice of the Administrative Agent’s election to sell such Collateral.              If none of the Borrower or any of its Affiliates or assignees elects to exercise its right of       first  refusal,  the  Administrative  Agent  may  sell  such  Collateral  or  portion  thereof.   For  the       avoidance of doubt, the Borrower or its Affiliates or assignees may participate in any public or       private sale of the Collateral directed by the Administrative Agent.              (c)   In  addition,  upon  the  occurrence  and  during  the  continuation  of  an  Event  of       Default, following written notice by the Administrative Agent (provided in its sole discretion or       at  the  direction  of  the  Required  Lenders)  of  the  exercise  of  control  rights  with  respect  to  the       Collateral, which notice shall be delivered to the Borrower (with a copy to the Backup Servicer):       (w)  the  Borrower’s  power  to  consent  to  modifications  to  and  direct  the  acquisition,  sales  and       other dispositions of Collateral Loans will be immediately suspended, (x) the Borrower will be       required to obtain the consent of the Administrative Agent before agreeing to any modification of       any Collateral Loan or before causing the Borrower to acquire, sell or otherwise dispose of any       Collateral Loan, and (y) the Borrower will sell or otherwise dispose of any Collateral Loan as       directed by the Administrative Agent in its sole discretion, subject to the terms of the applicable       Third Party Lender Agreement and the rights of the SBA and CDC to receive notice of such sale       and, if applicable, be given the option to purchase any Loans subject to such sale thereunder.              (d)   Upon  the  occurrence  and  during  the  continuation  of  an  Event  of  Default,       following  written  notice  by  the  Administrative  Agent (provided  in  its sole discretion or at the       direction  of  the  Required  Lenders),  the  Administrative  Agent  may  appoint  a  third  party  to       manage, administer, collect or service the Collateral in accordance with Applicable Law and the       Servicing Standard on terms and conditions to be agreed upon between the Administrative Agent       and  such  third  party.   In  the  event  the  Administrative  Agent  exercises  any  such  right,  the       Borrower  shall  cooperate  with  the  Administrative  Agent  in  effecting  such  termination  and       transition of servicing responsibilities of the Borrower under this Agreement to such other Person       (including the continuation of such servicing until such transition is completed).                                        - 80- 34881204v6 110062879

 

            (e)   Notwithstanding anything to the contrary contained herein, the exercise by the       Administrative Agent, any Lender or any of the Secured Parties of their rights hereunder or any       other Facility Document shall not release the Borrower from any of its duties or responsibilities       with respect to the Collateral.  The Secured Parties, the Administrative Agent and each Lender       shall not have any obligation or liability with respect to any Collateral, nor shall any of them be       obligated to perform any of the obligations of the Borrower hereunder.        Section 6.03. Servicer  Termination  Events.   “Servicer  Termination  Event”,  wherever  used herein, means any one of the following events (whatever the reason for such Servicer Termination Event and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment,  decree  or  order  of  any  court  or  any  order,  rule  or  regulation  of  any  administrative  or governmental body):              (a)   the occurrence of an Event of Default; or              (b)   except as otherwise provided in this Section 6.03, (i) a failure by the Servicer to       deliver (or cause to be delivered) any Monthly Report or Borrowing Base Calculation Statement       when  due  and  such  default  is  not  cured  within  three  (3)  Business  Days  (ii)  a  default  in  the       performance  or  breach  in  a  covenant  by  the  Servicer  with  respect  to  the  management  and       distribution  of  funds  received  with  respect  to  the  Collateral  Loans;  or  (iii)  a  default  in  any       material respect in the performance, or breach in any material respect, of any other covenant or       other  agreement  of  the  Servicer  under this  Agreement  or  the other Facility Documents, or the       failure of any representation or warranty of the Servicer made in this Agreement, in any other       Facility Document or in any certificate or other writing delivered pursuant hereto or thereto or in       connection  herewith  or  therewith  to  be  correct  in  each  case  in  all  material  respects  when  the       same shall have been made; or              (c)   an Insolvency Event relating to the Servicer occurs; or              (d)   (1)  any  Facility  Document  to  which  the  Servicer  is  a  party  shall  (except  in       accordance  with  its  terms)  terminate,  cease  to  be  effective  or  cease  to  be  the  legally  valid,       binding  and  enforceable  obligation  of  the  Servicer  or  (2)  the  Servicer  or  any  of  its  Affiliates       shall, directly or indirectly, contest in any manner the effectiveness, validity, binding nature or       enforceability of any Facility Document or any Lien purported to be created thereunder; or              (e)   (i)  one  or  more  acts  (including  any  failure(s)  to  act)  by  the  Servicer  or  the       Originator  occurs  that  constitutes  fraud  in  the  performance  of  services  comparable  to  those       contemplated to be provided by the Servicer or the Originator in the Facility Documents or (ii)       the Servicer or the Originator or any senior officer of the Servicer or the Originator is indicted on       charges of, or convicted of, a felony criminal offense related to the business of the Servicer or the       Originator; or              (f)   the  Servicer  shall  lose,  or  have  any  material  limitation  imposed  upon,  its       authority to process, close, service, collect enforce or liquidate any Loans.        Section 6.04. Remedies upon a Servicer Termination Event.        Upon a Responsible Officer of the Borrower or Servicer obtaining knowledge of the occurrence of a Servicer Termination Event, each of the Borrower and the Servicer shall notify each other and the Administrative Agent, specifying the specific Servicer Termination Event(s) that occurred as well as all other Servicer Termination Events that are then known to be continuing.                                       - 81- 34881204v6 110062879

 

      Upon  the  occurrence  and  during  the  continuance  of  a  Servicer  Termination  Event,  the Administrative  Agent,  by  written  notice  to  the  Servicer  (with  a  copy  to  the  Backup  Servicer  and  the Custodian)  (a  “Servicer  Termination  Notice”),  may  terminate  all  of  the  rights  and  obligations  of  the Servicer  as  Servicer  under  this  Agreement  in  accordance  with  Section  11.08  and  have  a  successor Servicer appointed pursuant to Section 11.08 hereto.                                    ARTICLE VII         PLEDGE OF COLLATERAL; RIGHTS OF THE ADMINISTRATIVE AGENT        Section 7.01. Grant  of  Security.   (a)  The  Borrower  hereby  grants,  pledges,  transfers  and collaterally  assigns  to  the  Administrative  Agent,  for  the  benefit  of  the  Secured  Parties,  as  collateral security for all Obligations, a continuing security interest in, and a Lien upon, all of the Borrower’s right, title  and  interest  in, to and under, the following property, in each case whether tangible or intangible, wheresoever located, and whether now owned by the Borrower or hereafter acquired and whether now existing or hereafter coming into existence (all of the property described in this Section 7.01(a) being collectively referred to herein as the “Collateral”):              (a)   all Loans and Loan Documents (listed, as of the Closing Date, in Schedule 3),       both  now  and  hereafter  owned,  including  all  collections  and  other  proceeds  thereon  or  with       respect thereto;              (b)   the  Borrower  Account  and  the  Collection  Account  and  all  money  and  all       investment  property  (including  all  securities,  all  security  entitlements  with  respect  to  the       Borrower Account and the Collection Account and all financial assets carried in the Borrower       Account and the Collection Account) from time to time on deposit in or credited to the Borrower       Account and the Collection Account;              (c)   all  interest,  dividends,  stock  dividends,  stock  splits,  distributions  and  other       money  or  property  of  any kind distributed in respect of the Collateral Loans of the Borrower,       which  the  Borrower is  entitled to  receive, including all Collections in respect of its Collateral       Loans;              (d)   each Facility Document and all rights, remedies, powers, privileges and claims       under or in respect thereto (whether arising pursuant to the terms thereof or otherwise available       to the Borrower at law or equity), including the right to enforce each such Facility Document and       to give or withhold any and all consents, requests, notices, directions, approvals, extensions or       waivers  under  or  with  respect  thereto,  to  the  same  extent  as  the  Borrower  could  but  for  the       assignment and security interest granted to the Administrative Agent under this Agreement;              (e)   all  Cash  or  Money  in  possession  of  the  Borrower  or  delivered  to  the       Administrative Agent (or any bailee of the foregoing);              (f)   all  accounts,  chattel  paper,  deposit  accounts,  documents,  equipment,  financial       assets, general intangibles, instruments, inventory, investment property, letter-of-credit rights and       other supporting obligations of the Borrower whether or not relating to the foregoing (in each       case as defined in the UCC);                                        - 82- 34881204v6 110062879

 

            (g)   all  other  property  of  the  Borrower  and  all  property  of  the  Borrower  which  is       delivered to the Administrative Agent (or the Custodian subject to the Lien of the Administrative       Agent) by or on behalf of the Borrower (whether or not constituting Eligible Loans);              (h)   all  security  interests,  Liens,  collateral,  property,  guaranties,  supporting       obligations, insurance and other agreements or arrangements of whatever character from time to       time supporting or securing payment of the assets, investments and properties described above;       and              (i)   all Proceeds of any and all of the foregoing.              provided, however, that the term “Collateral” shall exclude all Excluded Amounts.              (j)   All  terms  used  in  this  Section  7.01  that  are  defined  in  the  UCC  but  are  not       defined in Section 1.01 shall have the respective meanings assigned to such terms in the UCC.        Section 7.02. Release of Security Interest.  If and only if all Obligations have been paid in full and  all  Commitments  have  been  terminated,  the  Administrative  Agent,  for  itself  and  on  behalf  of  the Secured Parties, shall, at the expense of the Borrower, promptly execute, deliver and file or authorize for filing such instruments as the Borrower shall reasonably request in order to reassign, release or terminate the  Administrative  Agent’s  security  interest  in  the  Collateral.   The  Secured  Parties  acknowledge  and agree that upon the sale or disposition of any Collateral by the Borrower in compliance with the terms and  conditions  of  this  Agreement,  the  security  interest  of  the  Secured  Parties  in  such  Collateral  shall immediately terminate and the Administrative Agent, for itself and on behalf of the other Secured Parties, shall, at the expense of the Borrower, execute, deliver and file or authorize for filing such instrument as the Borrower shall reasonably request to reflect or evidence such termination.  Any and all actions under this Article VII in respect of the Collateral shall be without any recourse to, or representation or warranty by any Secured Party and shall be at the sole cost and expense of the Borrower and the Servicer.        Section 7.03. Rights and Remedies.  The Administrative Agent (for itself and on behalf of the other Secured Parties) shall have all of the rights and remedies of a secured party under the UCC and other  Applicable  Law.   Upon  the  occurrence  and  during  the  continuance  of  an  Event  of  Default,  the Administrative  Agent  or  its  designees  shall,  at  and  in  accordance  with  the  written  direction  of  the Administrative Agent (or the Required Lenders acting through the Administrative Agent), (i) instruct the Borrower to deliver or cause to be delivered any or all of the Collateral, the Loan Documents and any other documents relating to the Collateral to the Administrative Agent or its designees and otherwise give all instructions for the Borrower regarding the Collateral; (ii) sell or otherwise dispose of the Collateral in a commercially reasonable manner, all without judicial process or proceedings; (iii) take control of the Proceeds  of  any  such  Collateral;  (iv)  subject  to  the  provisions  of  the  applicable  Loan  Documents, exercise  any  consensual  or  voting  rights  in  respect  of  the  Collateral;  (v)  release,  make  extensions, discharges, exchanges or substitutions for, or surrender all or any part of the Collateral; (vi) enforce the Borrower’s  rights  and  remedies  with  respect  to  the  Collateral;  (vii)  institute  and  prosecute  legal  and equitable proceedings to enforce collection of, or realize upon, any of the Collateral; (viii) require that the Borrower immediately take all actions necessary to cause the liquidation of the Collateral in order to pay all amounts due and payable in respect of the Obligations, in accordance with the terms of the Loan Documents;  (ix)  redeem  or  withdraw  or  cause  the  Borrower  to  redeem  or  withdraw  any  asset  of  the Borrower  to  pay  amounts  due  and  payable  in  respect  of  the  Obligations;  (x)  make  copies  of  or,  if necessary, remove from the Borrower’s, the Servicer’s and their respective agents’ place of business all books, records and documents relating to the Collateral; (xi) endorse the name of the Borrower upon any items of payment relating to the Collateral or upon any proof of claim in bankruptcy against an account debtor; or (xii) instruct the Borrower to cause an Assignment of Mortgage in favor of the Administrative                                       - 83- 34881204v6 110062879

 

Agent to be recorded in the applicable recording office with respect to the related Project Property for each Collateral Loan and take any other action necessary to perfect the interests of the Administrative Agent in the Collateral.        The Borrower hereby agrees that, upon the occurrence and during the continuance of an Event of Default,  at  the  request  of  the  Administrative  Agent  or  the  Required  Lenders  (acting  through  the Administrative Agent), it shall execute all documents and agreements which are necessary or appropriate to have the Collateral be assigned to the Administrative Agent or its designee.  For purposes of taking the actions  described  in  clauses  (i)  through  (xii)  of  this  Section  7.03  the  Borrower  hereby  irrevocably appoints  the  Administrative  Agent  as  its  attorney-in-fact  (which  appointment  being  coupled  with  an interest and is irrevocable while any of the Obligations remain unpaid, with power of substitution), in the name of the Administrative Agent or in the name of the Borrower or otherwise, for the use and benefit of the  Administrative  Agent  (for  the  benefit  of  the  Secured  Parties),  but  at  the  cost  and  expense  of  the Borrower and, except as permitted by applicable law, without notice to the Borrower.        Section 7.04. Remedies  Cumulative.   Each  right,  power,  and  remedy  of  the  Administrative Agent and the other Secured Parties, or any of them, as provided for in this Agreement or in the other Facility Documents or now or hereafter existing at law or in equity or by statute or otherwise shall be cumulative and concurrent and shall be in addition to every other right, power, or remedy provided for in this Agreement or in the other Facility Documents or now or hereafter existing at law or in equity or by statute or otherwise, and the exercise or beginning of the exercise by the Administrative Agent or any other  Secured  Party  of  any  one  or  more  of  such  rights,  powers,  or  remedies  shall  not  preclude  the simultaneous or later exercise by such Persons of any or all such other rights, powers, or remedies.        Section 7.05. Loan Documents.              (a)   The Borrower hereby agrees that, to the extent not prohibited by the terms of the       Loan  Documents  or  the  SBA  Rules  and  Regulations  as  applicable,  after  the  occurrence  and       during  the  continuance  of  an  Event  of  Default,  it  shall  (i)  upon  the  written  request  of  the       Administrative  Agent,  promptly  forward  to  the  Administrative  Agent  all  material  information       and  notices which it receives under or in connection with the Loan Documents relating to the       Collateral,  and  (ii)  upon  the written  request  of  the Administrative Agent, act and refrain from       acting  in  respect  of  any  request,  act,  decision  or  vote  under  or  in  connection  with  the  Loan       Documents relating to the Collateral only in accordance with the direction of the Administrative       Agent.              (b)   The Borrower shall, in accordance with Section 5.01(s) and Article XIII and the       Custodial Agreement, promptly following its origination of any Collateral Loan, deliver to the       Custodian the Loan File including all originals of the principal underlying documentation with       respect to such Collateral Loan (e.g., loan or credit agreement, mortgage or deed of trust, primary       security agreement and guarantees, etc.).              (c)   From  time  to  time,  the  Borrower  shall  forward  to  the  Custodian  additional       documents  evidencing  any  assumption,  modification,  consolidation  or  extension  of  the  related       Collateral  Loan  in  accordance  with  the  terms  of  the  Custodial  Agreement.   Any  additional       documentation delivered to the Custodian pursuant to the previous sentence shall be preceded or       accompanied by a Collateral Loan File Checklist duly completed by the Borrower with a copy to       the Administrative Agent.              (d)   With  respect  to  any  Loan  File,  if  the  Borrower  cannot  deliver,  or  cause  to  be       delivered,  any  of  the  documents  and/or  instruments  required  to  be  delivered  to  the  Custodian                                       - 84- 34881204v6 110062879

 

      pursuant to  the  Custodial  Agreement and  as  set forth in this Section 7.05 at the time they are       required to be delivered, solely because of a delay caused by the public recording office where       such document or instrument has been delivered for recordation, the delivery requirements set       forth  in  this  Section  7.05  shall  be  deemed  to  have  been  satisfied  as  to  such  non-delivered       document  or  instrument  if  an  unrecorded  copy  of  such  non-delivered  document  or  instrument       (certified  by  the  Borrower,  a  title  company,  an  escrow  agent  or  an  attorney  to  be  a  true  and       complete copy of the original thereof submitted for recording) is delivered to the Custodian, and       a  photocopy  thereof,  with  evidence  of  recording  thereon,  is  delivered  to  the  Custodian  upon       receipt by the Borrower.        Section 7.06. Borrower Remains Liable.              (a)   Notwithstanding anything herein to the contrary, (i) the Borrower shall remain       liable under the contracts and agreements included in and relating to the Collateral (including the       Loan  Documents)  to  the  extent  set  forth  therein,  and  shall  perform  all  of  its  duties  and       obligations under such contracts and agreements to the same extent as if this Agreement had not       been executed, and (ii) the exercise by any Secured Party of any of its rights hereunder shall not       release the Borrower from any of its duties or obligations under any such contracts or agreements       included in the Collateral.              (b)   No  obligation  or  liability  of  the  Borrower  is  intended  to  be  assumed  by  the       Administrative Agent or any other Secured Party under or as a result of this Agreement or the       other Facility Documents, and the transactions contemplated hereby and thereby, including under       any  Loan  Document  or  any  other  agreement  or  document that relates to Collateral and, to the       maximum  extent  permitted  under  provisions  of  law,  the  Administrative  Agent  and  the  other       Secured Parties expressly disclaim any such assumption.        Section 7.07. Protection  of  Collateral.   The  Borrower  shall  from  time  to  time  execute  and deliver all such supplements and amendments hereto and file or authorize the filing of all such UCC-1 financing  statements,  continuation  statements,  instruments  of  further  assurance  and  other  instruments, and shall take such other action as may be necessary to secure the rights and remedies of the Secured Parties hereunder and to:              (a)   grant security more effectively on all or any portion of the Collateral;              (b)   maintain, preserve and perfect any grant of security made or to be made by this       Agreement including, without limitation, the first priority nature of the Lien or carry out more       effectively the purposes hereof;              (c)   perfect, publish notice of or protect the validity of any grant made or to be made       by  this  Agreement  (including,  without  limitation,  any  and  all  actions  necessary  as  a  result  of       changes in law or regulations);              (d)   enforce  any  of  the  Collateral  or  other  instruments  or  property  included  in  the       Collateral;              (e)   preserve  and  defend  title  to  the  Collateral  and  the  rights  therein  of  the       Administrative  Agent  and  the  Secured  Parties  in  the  Collateral  against  the  claims  of  all  third       parties; and                                        - 85- 34881204v6 110062879

 

            (f)   pay or cause to be paid any and all taxes levied or assessed upon all or any part       of the Collateral.        The  Borrower  hereby  designates  the  Administrative  Agent  as  its  agent  and  attorney  in  fact to prepare and file any UCC-1 financing statement, continuation statement and all other instruments, and take all other actions, required pursuant to this Section 7.07.  Such designation shall not impose upon the Administrative  Agent,  or  release  or  diminish,  the  Borrower’s  obligations  under  this  Section  7.07  or Section 5.01(c).  The Borrower further authorizes the Administrative Agent or its counsel to file UCC- 1 financing  statements that name the Borrower as debtor and the Administrative Agent as secured party and that describe “all assets in which the debtor now or hereafter has rights” as the Collateral in which the  Administrative  Agent  has  a  grant  of  security  hereunder  and  any  amendments  or  continuation statements that may be necessary or desirable.                                  ARTICLE VIII                     ACCOUNTS, ACCOUNTINGS AND RELEASES        Section 8.01. Collection  of  Money.   Except  as  otherwise  expressly  provided  herein,  the Administrative  Agent  may  demand  payment  or  delivery  of,  and  shall  receive  and  collect,  directly  and without intervention or assistance of any fiscal agent or other intermediary, all Money and other property payable to or receivable by the Administrative Agent pursuant to this Agreement, including all payments due  on  the  Collateral,  in  accordance  with  the  terms  and  conditions  of  such  Collateral.   The Administrative Agent shall segregate and hold all such Money and property received by it in trust for the Secured  Parties  and  shall  apply  it  as  provided  in  this  Agreement.   The  Collection  Account  shall  be established and maintained under the Account Control Agreement with the Administrative Agent.  The Collection Account may contain any number of subaccounts for the convenience of the Administrative Agent  or as required by the Borrower for convenience in administering the Collection Account or the Collateral.        Section 8.02. Collection Account.              (a)   In  accordance  with  this  Agreement,  the  Borrower  shall,  on  or  prior  to  the       Closing  Date,  establish  a  single,  segregated  trust  account  in  the  name  “NBL  SPV  I,  LLC       Collection Account, subject to the Lien of the Administrative Agent”, which shall be designated       as the “Collection Account”, which shall be maintained at the Account Bank in accordance with       the  Account  Control  Agreement  and  which  shall  be  subject  to  the  Lien  of  the  Administrative       Agent.   The  Borrower  shall  instruct  all  account  debtors  on  all  Loans  to  pay  directly  to  the       Collection  Account.   The  Borrower  shall  deposit  or  cause  to  be  deposited  in  immediately       available funds all Interest Collections and Principal Collections received by the Borrower into       the  Collection  Account  (unless  simultaneously  reinvested  in  additional  Collateral  Loans  in       accordance with Article X).  All Monies deposited from time to time in the Collection Account       pursuant to this Agreement shall be held by the Account Bank as part of the Collateral and shall       be applied to the purposes herein provided.              (b)   At any time when reinvestment is permitted pursuant to Article X, the Borrower       may withdraw funds on deposit in the Collection Account and reinvest such funds in additional       Loans, in each case in accordance with the requirements of Article X.        Section 8.03. Reserved.        Section 8.04. Reserved.                                       - 86- 34881204v6 110062879

 

      Section 8.05. Delivery of Report, Notices, Etc. Documents and notices required to be delivered by  the  Borrower  or  the  Servicer  pursuant  this  Agreement  may  be  delivered  electronically  and  if  so delivered,  shall  be  deemed  to  have  been  delivered  on the date on which the Borrower or the Servicer posts  such  documents  or  notices,  or  provides  a  link  thereto  on  the  Servicer’s  website  or  otherwise delivers such documents or notices via email in accordance with Section 15.02.        Section 8.06. Accountings.              (a)   The Servicer shall compile and provide (or cause to be compiled and provided)       to the Administrative Agent and the Backup Servicer a loan data file (the “Data File”) for the       Collection  Period  ending  on  the  Monthly  Report  Determination  Date  (containing  such       information  agreed  upon  by  the  Servicer  and  the  Administrative  Agent).   The  Servicer  shall,       based  on  such  Data  File  and  the  information  contained  in  its  collateral database,  compile  and       provide (or cause to be compiled and provided) to the Administrative Agent, the Backup Servicer       and each Lender a monthly report on a settlement basis (each, a “Monthly Report”) (containing       such information agreed upon by the Servicer and the Administrative Agent including, without       limitation, a listing of all Collateral, Collections (broken down by principal, interest and other       sources  and  including  detail  of  payments  of  principal  and  interest  made  by  each  Obligor),       charge-offs,  delinquencies  and  updated  remaining  balance  information)  on  each  Monthly       Reporting Date.  As used herein, the “Monthly Report Determination Date” with respect to any       Collection Period will be the last day of the previous Collection Period.  The Monthly Report       delivered for any Collection Period shall contain the information with respect to the Collateral       Loans  included  in  the  Collateral  set  forth  on  Schedule  2  hereto  including  a  Borrowing  Base       Calculation  Statement,  and  shall  be  determined  as  of  the  Monthly  Report  Determination  Date       applicable to such Monthly Report.              (b)   In  addition,  the  Servicer  shall  provide  together  with  each  Data  File  a  copy  of       each amendment, modification or waiver under any Loan Document for each Collateral Loan that       constitutes a Material Modification, together with each other amendment, modification or waiver       under any Loan Document for each Collateral Loan that, in the Servicer’s reasonable judgment,       are  material  in  relation  to  the  related  Obligor,  in  each  case  that  became  effective  during  the       Collection Period ending on the Monthly Report Determination Date for the immediately prior       Monthly Report (or, in respect of the first Monthly Report, from the Closing Date) together with       a  listing  of  each  Collateral  Loan  with  respect  to  which  one  of  the  foregoing  amendments,       modifications or waivers is being provided.              (c)   The Borrower shall maintain all necessary records and reports with respect to the       Collateral and provide such reports to the Administrative Agent and the Lenders in respect of the       management  and  administration  of  the  Collateral  (including  information  relating  to  its       performance under this Agreement) as may be required hereunder or as the Administrative Agent       and  the  Lenders  may  reasonably  request.   For  the  avoidance  of  doubt,  such  information  may       include additional information that is required for compliance with the requests, rules, guidelines       or  directives  promulgated  by  the  Bank  of  International  Settlements,  the  Basel  Committee  on       Banking  Supervision  (or  any  successor  or  similar  authority)  or  the  United  States  or  foreign       regulatory authorities, in each case pursuant to Basel II or Basel III.              (d)   Failure to Provide Accounting.  If the Backup Servicer shall not have received       any accounting provided for in this Section 8.06 on the first Business Day after the date on which       such accounting is due to the Backup Servicer, the Backup Servicer shall notify the Servicer who       shall use all reasonable efforts to obtain such accounting by the Monthly Reporting Date.                                       - 87- 34881204v6 110062879

 

            (e)   Backup  Servicer  Protections.   In  reviewing  the  Monthly  Report,  and  other       information  and  statements  required  hereunder,  the  Backup  Servicer  shall  have  the  rights,       protections, and immunities provided to it under Article XIV.        Section 8.07. Release of Collateral.              (a)   If  no  Event  of  Default  has  occurred  and  is  continuing,  the  Borrower  may,  by       delivery of a certificate of a Responsible Officer of the Servicer delivered to the Administrative       Agent at least one Business Day prior to the settlement date for any sale of any item of Collateral       certifying that the sale of such security is being made in accordance with Section 10.01 and such       sale complies with all applicable requirements of Section 10.01, direct the Administrative Agent       to release or cause to be released such item from the Lien of this Agreement and, upon receipt of       such certificate, the Administrative Agent shall deliver any such item (or certify to the Custodian       that it has released such item from the Lien of this Agreement in the form of Exhibit E to this       Agreement),  if  in  physical  form,  duly  endorsed  to  the  broker  or  purchaser  designated  in  such       certificate  against  receipt  of  the  sales  price  therefor  as  specified  by  the  Servicer  in  such       certificate; provided that the Administrative Agent may deliver any such item in physical form       for examination in accordance with street delivery custom.              (b)   Subject to the terms of this Agreement, the Administrative Agent shall, upon the       receipt of a certificate of the Borrower, by delivery of a certificate of a Responsible Officer of       the Borrower, deliver any Collateral as instructed in such certificate, and execute such documents       or instruments as are presented by the Borrower or the Servicer and are reasonably necessary to       release or cause to be released such security from the Lien of this Agreement, which is set for       any mandatory call or redemption or payment in full to the appropriate paying agent on or before       the  date  set  for  such  call,  redemption  or  payment,  in  each  case  against  receipt  of  the  call  or       redemption price or payment in full thereof.              (c)   As  provided  in  Section  8.02(a),  the  Administrative  Agent  shall  deposit  any       proceeds  received  by  it  from  the  disposition  of  Collateral  in  the  Collection  Account,  unless       simultaneously applied to the purchase of additional Loans as permitted under and in accordance       with the requirements of this Article VIII.              (d)   The  Administrative  Agent  shall,  upon  receipt  of  a  certificate  of  a  Responsible       Officer of the Borrower or the Servicer on its behalf, at such time as there are no Commitments       outstanding  and  all  Obligations  of  the  Borrower  hereunder  and  under  the  other  Facility       Documents  have  been  satisfied,  release  any  remaining  Collateral  from  the  Lien  of  this       Agreement.              (e)   Any security, Loan or amounts that are released pursuant to Section 8.07(a) or       (b) shall automatically be released from the Lien of this Agreement.        Section 8.08. Reports  by  Independent  Accountants.   Upon  the  written  request  of Administrative  Agent,  the  Borrower  or  the  Servicer  will  cause  a  firm  of  nationally  recognized independent  public  accountants  acceptable  to  the Administrative  Agent in  its  sole  discretion  (together with its successors, the “Independent Accountants”) to furnish to the Administrative Agent (with a copy to the Backup Servicer) in accordance with attestation standards established by the American Institute of Certified Public Accountants by no later than 120 days after the end of each fiscal year (commencing with the fiscal year ending December 31, 2018), a report, to the effect that such accountants have either verified,  compared,  or  recalculated  each  of  the  following  items  to  applicable system or records of the Borrower,  relating  to  such  fiscal  year  to  the  effect  that  (i)  such  firm  has  applied  certain  agreed-upon                                       - 88- 34881204v6 110062879

 

procedures set forth on Schedule 7 hereto, and (ii) based on such examination, such firm is of the opinion that each Monthly Report that was delivered in connection with a Monthly Reporting Date for such year was  prepared  in  compliance  with  this  Agreement,  except  for  such  exceptions  as  it  believes  to  be immaterial and such other exceptions as will be set forth in such firm’s report (including, with respect to any  such  exceptions,  an  explanation  of  how  each  such  exception  arose  and  reflecting  the input/explanation of the Servicer thereto).        Section 8.09. Collection Account Details.  The account number of the Collection Account is set forth on Schedule 6.        Section 8.10. Power  of  Attorney.  The  Borrower  hereby  irrevocably  appoints  the Administrative Agent its true and lawful attorney (with full power of substitution) in its name, place and stead and at its expense, in connection with the enforcement of the rights and remedies provided for (and subject  to  the  terms  and  conditions  set  forth  herein)  in  this  Agreement  during  the  continuance  of  a Default  or  an  Event  of  Default,  including  without  limitation  the  following  powers:  (a)  to  give  any necessary receipts or acquittance for amounts collected or received hereunder, (b) to make all necessary transfers of the Collateral in connection with any such sale or other disposition made pursuant hereto, (c) to  execute  and  deliver  for  value  all  necessary  or  appropriate  bills  of  sale,  assignments  and  other instruments  in  connection  with  any  such  sale  or  other  disposition,  the  Borrower  hereby  ratifying  and confirming all that such attorney (or any substitute) shall lawfully do hereunder and pursuant hereto, and (d)  to  sign  any  agreements,  orders  or  other  documents  in  connection  with  or  pursuant  to  any  Facility Document.   Nevertheless,  if  so  requested  by  the  Administrative  Agent,  the  Borrower  shall  ratify  and confirm any such sale or other disposition by executing and delivering to the Administrative Agent or such purchaser all proper bills of sale, assignments, releases and other instruments as may be designated in any such request.  For the avoidance of doubt, the power of attorney granted by the Borrower pursuant to this Section 8.10 supersedes any other power of attorney or similar rights granted by the Borrower to any  other  party  (including,  without  limitation,  the  Servicer)  under  this  Agreement,  any  other  Facility Document or any other agreement; provided that, the Servicer may continue to exercise its rights under this Agreement until the Servicer has received notice of the Administrative Agent’s exercise of its power of attorney hereunder.                                   ARTICLE IX                             APPLICATION OF MONIES        Section 9.01. Disbursements of Monies from Collection Account.              (a)   Notwithstanding any other provision in this Agreement, but subject to the other       subsections of this Section 9.01, on each Payment Date or Business Day, as applicable, amounts       on deposit in the Collection Account shall be applied in accordance with the following priorities       (the “Priority of Payments”) as set forth in the related Monthly Report:                    (i)   On  each  Payment  Date  prior  to  the  occurrence  and  continuance  of  an             Event of Default, Interest Collections on deposit in the Collection Account, to the extent             received on or before the related Determination Date (or, if such Determination Date is             not a Business Day, the next succeeding Business Day) will be applied in the following             order of priority:                    (A)   to  the  Custodian  and  Backup  Servicer,  to  pay  any  accrued and  unpaid             amounts due and owing on such date pursuant to the Custodial Agreement, the Backup             Servicer Fee Letter, this Agreement, and the other Facility Documents;                                       - 89- 34881204v6 110062879

 

                  (B)   to the Servicer, to pay accrued and unpaid Servicing Fees and all other             expenses (including indemnities) incurred by the Servicer in connection with the services             provided  under  this  Agreement  and  as  further  described  in  Sections  11.03, 11.06,  and             11.08;  provided that, unless the Backup Servicer shall become the Successor Servicer,             the amount applied under this clause (B) for such Payment Date in respect of expenses             and indemnities shall not exceed the Servicer Expense Cap for such Payment Date;                    (C)   to each Lender to pay accrued and unpaid Interest and Unused Line Fees             that  are  due  and  owing  to  each  such  Lender  on  such  date  and  to  the  payment  of             Administrative Expenses;                    (D)   to  each  Lender  to  pay  accrued  and  unpaid  fees,  costs  and  expenses             (including attorneys’ fees) and any amounts payable to each such Lender under Sections             2.09, 2.16 and 15.03;                    (E)   if  the  Availability  Test  is  not  satisfied  as of  the  related  Determination             Date, to each Lender to pay the principal of the Advances of each Lender (pro rata, based             on each Lender’s Percentage) until the Availability Test is satisfied (on a pro forma basis             as at such Determination Date);                    (F)   to the payment or application of amounts referred to in clauses (A) and             (D) above, to the extent not paid in full pursuant to applications under such clauses; and                    (G)   remainder to the Borrower.                    (ii)  On  each  Payment  Date  prior  to  the  occurrence  and  continuance  of  an             Event  of  Default,  Principal  Collections  on  deposit  in  the  Collection  Account  that  are             received  on  or  before  the  related  Determination  Date  and  that  are  not  designated  for             reinvestment by the Servicer will be applied, except for any such Principal Collections             that  will  be  used  to  settle  binding  commitments  (entered  into  prior  to  the  related             Determination Date) for the purchase of Loans, in the following order of priority:                    (A)   to  the  payment  of  unpaid  amounts  under  clauses  (A)  through  (F)  in             clause  (i)  above  (in  the  same  order  of  priority  specified  therein  and  subject  to  any             limitations set forth therein), to the extent not paid in full thereunder;                    (B)   during the Reinvestment Period and so long as the Availability Test is             not satisfied, to each Lender to pay the principal of the Advances of each Lender (pro             rata, based on each Lender’s Percentage) until the Availability Test is satisfied (on a pro             forma basis as at such Determination Date);                    (C)   after  the  Reinvestment  Period,  to  each  Lender  to  pay the  Advances  of             such Lender (pro rata, based on each Lender’s Percentage) until the Advances are paid in             full;                    (D)   to the payment of amounts referred to in clause (F) of clause (i) above             (in the same order of priority specified therein), to the extent not paid in full thereunder;                    (E)   during the Reinvestment Period, and so long as the Availability Test is             satisfied, at the discretion of the Borrower or the Servicer on its behalf, to be applied in                                        - 90- 34881204v6 110062879

 

            any  combination  of  the  following:  (1)  to  the  Collection  Account  for  the  purpose  of             acquiring additional Loans, and/or (2) to prepay the Advances; and                    (F)   the remainder to the Borrower.                    (iii) On each Business Day following the occurrence and continuance of an             Event of Default, Collections on deposit in the Collection Account shall be applied in the             following order of priority:                    (A)   to the payment of unpaid amounts under clause (A) in clause (i) above;                    (B)   to the payment of unpaid amounts under clause (B) in clause (i) above             or, if a Successor Servicer has been appointed, to any Successor Servicer, to pay accrued             and  unpaid  servicing  fees  and  all  other  expenses  (including  indemnities)  incurred  by             such Successor Servicer in connection with the services provided under this Agreement             and as further described in Sections 11.03, 11.06 and 11.08 and the Backup Servicer Fee             Letter;                    (C)   (i) to each Lender to pay accrued and unpaid Interest and Unused Line             Fees due to each such Lender until such amounts are paid in full and (ii) to the payment             of any other Administrative Expenses to the extent not paid in full;                    (D)   to each Lender, the Custodian, and the Backup Servicer to pay accrued             and unpaid fees, costs and expenses (including attorneys’ fees) and any amounts payable             to each such Lender under Sections 2.09, 2.16 and 15.03 until such amounts are paid in             full;                    (E)   to each Lender to pay the Advances of such Lender (pro rata, based on             each Lender’s Percentage) until the Advances are paid in full;                    (F)   to the payment or application of any other amounts due and payable to             the Lenders, the Custodian, or the Backup Servicer under the Facility Documents; and                    (G)   the remainder to the Borrower.              (b)   If  on  any  Payment  Date  the  amount  available  in  the  Collection  Account  is       insufficient to make the full amount of the disbursements required by the Priority of Payments,       the Borrower shall cause disbursements to be made in the order and according to the priority set       forth under Section 9.01(a) to the extent funds are available therefor.                                   ARTICLE X                 SALE OF LOANS; PURCHASE OF ADDITIONAL LOANS        Section 10.01. Sales of Loans.              (a)   Subject to the satisfaction of the conditions set forth herein, the Borrower may       sell any Collateral Loan, Defaulted Loan, or Ineligible Loan if such sale meets the requirements       set forth below (provided that prior to such discretionary sale, the Borrower shall demonstrate       that the requirements set forth below are met by submitting to the Lenders completed forms of       “Borrowing  Base  Certificate,”  “Compliance  Certificate,”  “Compliance  Calculation  Sheet”  and                                       - 91- 34881204v6 110062879

 

      “Excess Concentration Amount” as set forth in the forms of Monthly Report (Schedule 2 to this       Agreement) as of the date of such discretionary sale after giving effect thereto):                    (i)   no Default or Event of Default is continuing or would result upon giving             effect  thereto  (unless,  in  the  case  of  such  a  Default,  such  Default  will  be  cured  upon             giving effect to such sale and the application of the proceeds thereof);                    (ii)  upon  giving  effect  thereto  and  the application  of  the  proceeds  thereof,             the  Availability  Test,  the Interest Coverage Ratio Test, the Asset Coverage Ratio Test             and each Collateral Quality Test is satisfied;                    (iii) if such sale is to an Affiliate of the Borrower, such sale is made for a             purchase price at least equal to par value and on material terms no less favorable to the             Borrower and the Secured Parties than would be the case if such Person were not such an             Affiliate;                    (iv)  such sale is made for Cash;                    (v)   in the reasonable judgment of the Borrower, there is no adverse selection             of such Loans to be sold; and                    (vi)  if such sale is of a First Lien Loan, such sale is in accordance with the             provisions of the Third Party Lender Agreement and the SBA and the CDC have been             notified  of  such  sale  within  the  applicable  notice  period  set  forth  in  the  Third  Party             Lender Agreement and any purchase option period exercisable by the SBA has expired.              Notwithstanding anything above that would otherwise prohibit the sale of a Loan after       the occurrence or during the continuance of a Default or an Event of Default, if the Borrower       entered into an agreement to sell any such Loan prior to the occurrence and continuance of such       Default  or  an  Event  of  Default,  but  such  sale  did  not  settle  prior  to  the  occurrence  of  such       Default or an Event of Default, then the Borrower shall be permitted to consummate such sale       notwithstanding the occurrence and continuance of such Default or an Event of Default, provided       that such sale was not entered into in contemplation of the occurrence of such Default or Event       of Default.              (b)   Terms of Sales.  All sales of Collateral Loans and other property of the Borrower       under the provisions above in this Section 10.01 must be exclusively for Cash.              (c)   Sale of Second Lien Loans to CDCs.  The foregoing limitations shall not apply       to the sale of Second Lien Loans sold to any CDC in order to issue any debenture that will be       used to refinance such Second Lien Loan so long as such Second Lien Loans are sold for Cash       for a purchase price no less than the fair market value thereof.        Section 10.02. Purchase of Additional Loans. On any date during the Reinvestment Period, if no Event of Default has occurred and is continuing, the Servicer on behalf of the Borrower may, if each of the  conditions  specified  in  this  Section  10.02  and  Section  10.04  are  met,  invest  Collections,  accrued interest  received  with  respect  to  any  Collateral  Loan  to  the extent used to pay for accrued interest on additional Loans and other amounts on deposit in the Collection Account in additional Loans purchased pursuant to the Purchase and Contribution Agreement, provided, that no Loan may be purchased unless each  of  the  following  conditions  are  satisfied  as  of  the  date  the  Servicer  commits  on  behalf  of  the                                        - 92- 34881204v6 110062879

 

Borrower to make such purchase, in each case after giving effect to such purchase and all other sales or purchases previously or simultaneously committed to:              (a)   such Loan is an Eligible Loan; and              (b)   the  Availability  Test,  Interest  Coverage  Ratio  Test,  the  Asset  Coverage  Ratio       Test and each Collateral Quality Test is satisfied.        Section 10.03. Substitution and Transfer of Loans.              (a)   Substitutions.  The Borrower may (including in connection with any retransfer of       a Loan to the Originator under the Purchase and Contribution Agreement) replace any Collateral       Loan with another Loan (a “Substitute Loan”), subject to the satisfaction of the conditions set       forth below.              (b)   Conditions  to  Substitution.   No  substitution  of  a  Collateral  Loan  with  a       Substitute Loan shall occur unless each of the following conditions is satisfied as of the date of       such substitution (as certified to the Administrative Agent by the Borrower (or the Servicer on       behalf of the Borrower)):                    (i)   each  Substitute  Loan  satisfies  the  Eligibility  Criteria  on  the  date  of             substitution;                    (ii)  after giving effect to any such substitution, the Availability Test, Interest             Coverage Ratio Test, the Asset Coverage Ratio Test and each Collateral Quality Test is             satisfied;                    (iii) 100%  of  the  proceeds  from  the  sale  of  the  Loan(s)  to  be  replaced  in             connection  with  such  substitution  are  either  applied  by  the  Borrower  to  acquire  the             Substitute Loan(s) or deposited in the Collection Account;                    (iv)  no Default or Event of Default has occurred and is continuing (before or             after giving effect to such substitution);                    (v)   there  is  no  adverse  selection,  impacting  the  interest  of  the  Secured             Parties,  by  the  Borrower  or  Servicer  with  regard  to  such  Collateral  Loans  to  be             substituted or the Substitute Loans;                    (vi)  the Borrower and, if the Servicer is an Affiliate of the Borrower or the             Originator, the Servicer (on behalf of the Borrower) shall agree to pay the legal fees and             expenses  of  the  Administrative  Agent  in  connection  with  any  such  substitution             (including,  but  not  limited  to,  expenses  incurred  in  connection  with  the  release  of  the             Lien  of  the  Administrative  Agent  on  behalf  of  the  Secured  Parties in  connection  with             such sale, substitution or repurchase);                    (vii) the Borrower shall notify the Administrative Agent of any amount to be             deposited into the Collection Account in connection with any such substitution and shall             deliver  to  the  Custodian,  pursuant  to  the  terms  of  the  Custodial  Agreement,  the  Loan             Documents for any Substitute Loans;                                        - 93- 34881204v6 110062879

 

                  (viii) upon  confirmation  of  the  delivery  of  a  Substitute  Loan  for  each             applicable Collateral Loan being substituted for, each applicable Collateral Loan being             substituted  for  shall  be  removed  from  the  Collateral  and  the  applicable  Substitute             Loan(s) shall be included in the Collateral;                    (ix)  the  Borrower  shall  deliver  to  the  Administrative  Agent  on  the  date  of             such  substitution  a  certificate  of  a  Responsible  Officer  certifying  that  each  of  the             foregoing is true and correct as of such date; and                    (x)   the Concentration Limitations are satisfied.        Section 10.04. Conditions Applicable to All Sale, Substitution and Purchase Transactions.              (a)   Any  transaction  effected  under  this  Article  X  or  in  connection  with  the       acquisition of additional Loans shall be conducted on an arm’s length basis and, if effected with       a Person that is an Affiliate of the Originator, shall be on material terms no less favorable to the       Borrower  and  the  Secured  Parties  than  would  be  the  case  if  such  Person  were  not  such  an       Affiliate or as otherwise expressly permitted under the Facility Documents.              (b)   Upon each acquisition by the Borrower of a Loan, (i) all of the Borrower’s right,       title and interest to such Loan shall be subject to the Lien granted to the Administrative Agent       pursuant to this Agreement and (ii) such Loan and all Loan Documents shall be delivered to the       Administrative  Agent  (or  the  Custodian  on  its  behalf,  pursuant  to  the  terms  of  the  Custodial       Agreement, as applicable).              (c)   Upon the sale or substitution of a Collateral Loan pursuant to this Article X, the       Administrative  Agent,  for  the  benefit  of  the  Secured  Parties,  shall  automatically  and  without       further action be deemed to release and transfer to the Borrower, without recourse, representation       or  warranty,  all  the  right, title  and  interest  of  the  Administrative Agent,  for the  benefit  of  the       Secured  Parties  in,  to  and  under  such  Collateral  Loan  being  sold  or  being  substituted  for,  as       applicable.  The Administrative Agent, for the benefit of the Secured Parties, shall, at the sole       expense of the Borrower, execute such documents and instruments of transfer as may be prepared       by the Servicer, on behalf of the Borrower, and take other such actions as shall reasonably be       requested  by  the  Servicer  on  behalf  of the  Borrower to  effect the release and transfer of such       Collateral Loan being sold or substituted for pursuant to this Article X.              (d)   For the avoidance of doubt, the restrictions set forth in Sections 10.01 and 10.04       shall not apply to the sale of Warranty Loans.                                   ARTICLE XI                 ADMINISTRATION AND SERVICING OF CONTRACTS        Section 11.01. Designation of the Servicer.              (a)   Initial  Servicer.   The  servicing,  administering  and  collection  of  the  Collateral       shall be conducted in accordance with this Section 11.01 by the Servicer hereunder.  Servicer is       hereby appointed as, and hereby accepts such appointment and agrees to perform the duties and       responsibilities, of Servicer pursuant to the terms hereof.  The Servicer and the Borrower hereby       acknowledge that each of the Secured Parties is a third party beneficiary of the obligations taken       by the Servicer hereunder.                                       - 94- 34881204v6 110062879

 

            (b)   Subcontracts.   The  Servicer  may,  with  the  prior  written  consent  of  the       Administrative  Agent,  subcontract  with  any  other  Person  for  back  office,  servicing  and       administrative  functions  or  collecting  the  Collateral;  provided  that  (i) the  Servicer  shall select       any such Person with reasonable care and shall be solely responsible for the fees and expenses       payable to such Person, (ii) the Servicer shall not be relieved of, and shall remain liable for, the       performance of the duties and obligations of the Servicer pursuant to the terms hereof without       regard to any subcontracting arrangement and (iii) any such subcontract shall be subject to the       provisions hereof.        Section 11.02. Duties.              (a)   Duties.  The Servicer shall take or cause to be taken all such actions as may be       necessary or advisable to service, administer and collect on the Collateral from time to time, all       in accordance with Applicable Law and the Servicing Standard.  Without limiting the foregoing,       the duties of the Servicer shall include the following:                    (i)   supervising  the  Collateral,  including  communicating  with  Obligors,             executing  amendments,  providing  consents  and  waivers,  exercising  voting  rights,             enforcing  and  collecting  on  the  Collateral  and  otherwise  managing  the  Collateral  on             behalf of the Borrower;                    (ii)  preparing and submitting claims to Obligors on each Collateral Loan;                    (iii) maintaining all necessary servicing records with respect to the Collateral             as set forth in Section 8.06;                    (iv)  maintaining  and  implementing administrative and operating procedures             (including,  without  limitation,  an  ability  to  recreate  servicing  records  evidencing  the             Collateral  in  the  event  of  the  destruction  of  the  originals  thereof)  and  keeping  and             maintaining all documents, books, records and other information reasonably necessary or             advisable for the collection of the Collateral;                    (v)   promptly delivering to the Administrative Agent and each Lender, from             time to time, such information and servicing records (including information relating to its             performance  under  this  Agreement)  as  the  Administrative  Agent  or  each  Lender  may             from  time  to  time  reasonably  request  relating  to  Servicer’s  obligations  under  this             Agreement;                    (vi)  identifying  each  Collateral  Loan  clearly  and  unambiguously  in  its             servicing records to reflect that such Collateral Loan is owned by the Borrower and that             the Borrower is pledging a security interest therein to the Administrative Agent (for the             benefit of the Secured Parties) pursuant to this Agreement;                    (vii) notifying  the  Administrative  Agent  and  each  Lender  of  any  material             action, suit, proceeding, dispute, offset, deduction, defense or counterclaim (1) that is or             is threatened to be asserted by an Obligor with respect to any Collateral Loan (or portion             thereof)  of  which  it  has  actual  knowledge  or  has  received  notice;  or  (2)  that  could             reasonably be expected to have a Material Adverse Effect;                    (viii) maintaining the perfected security interest of the Administrative Agent,             for the benefit of the Secured Parties, in the Collateral;                                       - 95- 34881204v6 110062879

 

                  (ix)  with  respect  to  each  Collateral  Loan,  making  copies  of  the  Loan             Documents available for inspection by the Administrative Agent, upon reasonable notice,             at the offices of the Servicer during normal business hours;                    (x)   directing the acquisition, sale or substitution of Collateral in accordance             with Article X;                    (xi)  providing  assistance  to  the  Borrower  with  respect  to  the  purchase  and             sale of Loans;                    (xii) instructing the Obligors and the administrative agents on the Collateral             Loans to make payments directly into the Collection Account;                    (xiii) preparing the Monthly Reports in the manner and at the times required             hereunder  and  making  payments  in  accordance  with  the  Priority  of  Payments  and             cooperating  with  the Backup Servicer in its duties hereunder in the manner and at the             times required hereunder;                    (xiv) tracking the receipt and daily allocation to the Collection Account with             respect  to  Collections  and  the  outstanding  balance  therein,  and  any  withdrawals             therefrom  and,  on  each  Business  Day  as  of  the  close  of  business  on  the  preceding             Business Day;                    (xv)  assisting and reasonably cooperating with the Independent Accountants             appointed by the Borrower in the preparation by such accountants of the reports required             under Section 8.08; and                    (xvi) complying with such other duties and responsibilities as required of the             Servicer by this Agreement.              It is acknowledged and agreed that the Borrower possesses only such rights with respect       to the enforcement of rights and remedies with respect to the Collateral Loans and the underlying       assets securing such Collateral Loans under the Loan Documents as have been transferred to the       Borrower with respect to the related Collateral Loan, and therefore, for all purposes under this       Agreement, the Servicer shall perform its administrative and management duties hereunder only       to the extent that it has the right to do so.              (b)   Exercise  of  Remedies  Not  Release.   Notwithstanding  anything  to  the  contrary       contained herein, the exercise by the Administrative Agent, each Lender and the Secured Parties       of their rights hereunder or any other Facility Document shall not release the Borrower from any       of  its  duties  or  responsibilities  with  respect  to  the  Collateral.   The  Secured  Parties,  the       Administrative Agent and each Lender shall not have any obligation or liability with respect to       any  Collateral,  nor  shall  any  of  them  be  obligated  to  perform  any  of  the  obligations  of  the       Servicer hereunder.              (c)   Cooperation  with  Backup  Servicer.  The  Servicer  shall  perform  the  duties  and       take the actions required by it under Article XIV in the manner and at the times set forth therein       and shall cooperate with the Backup Servicer in its performance of its duties hereunder.        Section 11.03. Liability of a Successor Servicer; Indemnification of the Servicer Persons.                                        - 96- 34881204v6 110062879

 

            (a)   A  Successor  Servicer  and  any  of  its  Affiliates,  employees,  shareholders,       members, partners, assigns, representatives or agents (each such individual or entity, a “Servicer       Person”)  shall  not  be  liable  to  the  Borrower,  any  Lender,  the  Administrative  Agent,  the  Lead       Arranger, the Backup Servicer or any other Person for any liability, loss (including amounts paid       in  settlement),  damages,  judgments,  costs,  expenses  (including  reasonable  attorneys’  fees  and       expenses, accountant’s fees and expenses and the fees and expenses of other experts), demands,       charges  or  claims  (collectively,  the  “Damages”)  incurred  by  reason  of  any  act  or  omission  or       alleged act or omission performed or omitted by such Servicer Person, or for any decrease in the       value  of  the  Collateral  or  any  other  losses  suffered  by  any  party;  provided,  however,  that  a       Servicer  Person  shall  be  liable  for  any  Damages  that  arise  by  reason  of  any  act  or  omission       constituting  bad  faith,  willful  misconduct,  or  gross  negligence  by  any  Servicer  Person  in  the       performance of or reckless disregard of the Servicer’s duties hereunder or by any breach of the       representations and warranties of the Servicer expressly set forth in this Agreement.              (b)   The Servicer may rely in good faith upon, and will incur no Damages for relying       upon, (i) any authoritative source customarily used by firms performing services similar to those       services  provided  by  the  Servicer  under  this  Agreement,  and  (ii)  the  advice  of  nationally       recognized  counsel,  accountants  or  other  advisors  as  the  Servicer  determines  reasonably       appropriate in connection with the services provided by the Servicer under this Agreement.              (c)   In  no  event  shall  the  Servicer  be  liable  for  special,  indirect  or  consequential       losses or damages of any kind whatsoever (including but not limited to lost profits) even if the       Servicer has been advised of the likelihood of such damages and regardless of the form of such       action.              (d)   Each Servicer Person shall be held harmless and be indemnified by the Borrower       for any Damages suffered by virtue of any acts or omissions or alleged acts or omissions arising       out of the activities of such Servicer Person in the performance of the obligations of the Servicer       under this Agreement or as a result of this Agreement, or the Borrower’s ownership interest in       any portion of the Collateral Obligations, except to the extent any such Damage arises as a result       of any breach of the representations and warranties of the Servicer set forth in this Agreement.       All  amounts  payable  pursuant  to  this  Section  11.03  shall  be  payable  in  accordance  with  the       Priority of Payments.        Section 11.04. Authorization of the Servicer.        The Borrower hereby authorizes the Servicer to take any and all reasonable steps in its name and on  its  behalf  necessary  or desirable  in  the  determination  of  the  Servicer  and not inconsistent with the pledge of the Collateral Loans by the Borrower to the Administrative Agent, on behalf of the Secured Parties,  hereunder,  to  collect  all  amounts  due  under  any  and  all  Collateral  Loans,  including,  without limitation, endorsing its name on checks and other instruments representing Collections, executing and delivering any and all instruments of satisfaction or cancellation, or of partial or full release or discharge, and all other comparable instruments, with respect to the Collateral Loans and, after the delinquency of any  Collateral  Loan  and  to  the  extent  permitted  under  and  in  compliance  with  Applicable  Law,  to commence  proceedings  with  respect  to  enforcing  payment  thereof,  to  the  same  extent  as  the  Servicer could  have  done  if  it  owned  such  Collateral  Loan.  The  Borrower  shall  furnish  the  Servicer (and any successors thereto) with any powers of attorney and other documents necessary or appropriate to enable the  Servicer  to  carry  out  its  collateral  management  duties  hereunder,  and  shall  cooperate  with  the Servicer to the fullest extent in order to ensure the collectability of the Collateral.  In no event shall the Servicer  be  entitled  to  make  the  Secured  Parties,  the  Administrative  Agent,  the  Backup  Servicer,  any Successor  Servicer  or  any  Lender  a  party  to  any  litigation  without  such  party’s  express  prior  written                                       - 97- 34881204v6 110062879

 

consent,  or  to  make  the  Borrower  a  party  to  any  litigation  (other  than  any  foreclosure  or  similar collection  procedure)  without  the  Administrative  Agent’s  consent.   Following  the  occurrence  and continuance of an Event of Default (unless otherwise waived by the Lenders in accordance with Section 15.01), the Administrative Agent (acting in its sole discretion or at the direction of the Required Lenders) may  provide  notice  to  the  Servicer  (with  a  copy  to  the  Backup  Servicer  and  the  Custodian)  that  the Secured  Parties  are  exercising  their  control  rights  with  respect  to  the  Collateral  in  accordance  with Section 6.02.        Section 11.05. Realization Upon Defaulted Loans.              (a)   Generally.  The Servicer will use reasonable efforts consistent with the Servicing       Standard, this Agreement, the SBA 504 Loan Program (as applicable) and the Loan Documents       to exercise (on behalf of the Borrower and the Secured Parties) available remedies (which may       include  liquidating,  foreclosing  upon  or  repossessing,  as  applicable,  or  otherwise  comparably       converting  the  ownership  of  any  related  property)  with  respect  to  any  Defaulted  Loan.   The       Servicer will comply with the Servicing Standard, the SBA 504 Loan Program (as applicable),       the Loan Documents and Applicable Law in realizing upon such related property, and employ       practices  and  procedures,  including  reasonable  efforts  to  collect  all  outstanding  obligations  of       Obligors, consistent with the Servicing Standard and the Loan Documents.  Without limiting the       generality of the foregoing, the Servicer may cause the sale of any such related property to the       Servicer or its Affiliates for a purchase price equal to the then fair market value thereof, any such       sale  to  be  evidenced  by  a  certificate  of  a  Responsible  Officer  of  the Servicer  delivered  to  the       Administrative Agent setting forth the Collateral Loan, the related property, the sale price of the       related  property  and  certifying  that  such  sale  price  is  the  fair  market  value  of  such  related       property.   The  Servicer  will  remit  to  the  Collection  Account  the  recoveries  received  in       connection  with  the  sale  or  disposition  of  related  property  relating  to  any  Defaulted  Loan       hereunder.              (b)   Notices  to  the  CDC  and  SBA.   With  respect  to  any  Defaulted  Loan,  the       Borrower shall, or shall cause the Originator to, provide notice to the SBA and the applicable       CDC of (i) any material default under such Loan or the Lien created by such Loan within such       period as required by the SBA 504 Loan Program or as set forth in the related Third Party Lender       Agreement  and  (ii)  any  intent  to  commence  legal  proceedings  or  liquidate  the  related  Project       Property (not including sending a demand letter) to the extent required under the SBA 504 Loan       Program.              (c)   Foreclosure  on  Related  Project  Properties.   (i)   The  Servicer  shall  either       foreclose upon or otherwise comparably effect the ownership in the name of the Borrower for the       benefit of the Administrative Agent of Project Properties relating to Defaulted Loans as to which       no satisfactory arrangements can be made for collection of delinquent payments that are due after       the  applicable  due  date  or  are  Charged-Off  Loans;  provided,  however  that  the  Servicer  shall       ensure that a notice described in Section 11.05(b) above shall have been given to the SBA and       the applicable CDC no less than sixty (60) days or such other period as set forth in the related       Third  Party  Lender  Agreement  prior  to  the  commencement  of  any  foreclosure  action.   In       connection  with  such  foreclosure  or  other  conversion,  the  Servicer  shall  exercise  foreclosure       procedures with the same degree of care and skill in their exercise or use, as it would exercise or       use under the circumstances in the conduct of its own affairs.  The Borrower shall be responsible       for all costs and expenses, including liquidation expenses, in connection with such foreclosure or       other action.  Promptly upon acquisition of any REO Property, the Borrower shall execute (or       cause to be executed) such Mortgage and other documentation with respect to its interest in such       REO  Property,  and  to  the  extent,  if  any,  required  by  SBA  Rules  and  Regulations,  obtain  and                                       - 98- 34881204v6 110062879

 

      deliver or cause to be delivered to Administrative Agent and each Lender, an appraisal that is       compliant  with  the  requirements  of  FIRREA,  a  mortgagee  policy  of  title  insurance,       environmental report, engineering report or other documentation as Administrative Agent or such       Lender may reasonably request in connection therewith. The Servicer and the Borrower shall       provide the Administrative Agent, the SBA, and CDC with all notices and documents required in       connection with the foreclosure of a Project Property as set forth in any Loan Document or as       required by the SBA 504 Loan Program, as applicable.                    (i)   Notwithstanding anything herein to the contrary, the Servicer shall not,             on behalf of itself or the Administrative Agent, initiate foreclosure proceedings, obtain             title to a Project Property by deed in lieu of foreclosure or otherwise, have a receiver of             rents  appointed  with  respect  to  any  Project  Property,  or  take  any  other  action  with             respect to any Project Property, if, as a result of any such action, the Borrower or the             Administrative  Agent  would  be  considered  to  hold  title  to,  to  be  a             “mortgagee-in-possession” of, or to be an “owner” or “operator” of such Project Property             within the meaning of CERCLA or any other Environmental Law, unless (as evidenced             by an officer’s certificate to such effect delivered, on or prior to the date thereof, to the             Administrative Agent): (A) (i) the Servicer, within one month of such determination, has             received the results of a search by a commercial vendor, such as InfoMap Technologies,             Inc.,  of  certain  government  databases  of  known  hazardous  waste  sites,  registered             underground  storage  tanks  and  other  reported  environmental  conditions  at  or  in  the             vicinity of the related Project Property, and (ii) with respect to any Project Property that             is an office, retail, manufacturing, industrial or mixed-use property or any other Project             Property which, based on any documents in the related Loan Documents or the search of             the government database described in clause (i) above, reasonably appears to present a             material risk of environmental contamination on such Project Property, the Servicer has             previously received (and provided to the Administrative Agent) a Phase I environmental             site assessment (or an update thereof) in respect of such Project Property prepared within             the six months preceding such determination by an entity that regularly conducts Phase I             environmental site assessments, and (B) the Servicer, after reviewing the results of the             search  of  such  government  database  and/or  the  information  set  forth  in  such  Phase  I             environmental site assessment (or update thereof) or other information available to it, has             no  knowledge  that  such  Project  Property  contains  any  material  environmental  or             Hazardous  Material  risks;  provided,  however,  if,  within  a  reasonable  period  of  time             following  the  Administrative  Agent’s  receipt  of  such  Phase  I  environmental  site             assessment,  the  Administrative  Agent  provides  the  Servicer  with  written  notice             describing the reasonable basis for which it disagrees with the Servicer’s assessment that             no material environmental or hazardous waste risks exist with respect to such Property,             then (1) the Servicer shall not acquire or take any other such action which would cause             the Borrower or the Administrative Agent to become the “owner” or “operator” of such             Project Property, without the prior written consent of the Administrative Agent, and (2)             if  prior  to  the  Servicer’s  receipt  of  such  notice  from  the  Administrative  Agent,  the             Servicer  has  already  acquired  or  taken  such  other  action  with  respect  to  such  Project             Property,  such  that  the  Borrower  or  the  Administrative  Agent  is  deemed  to  be  the             “owner” or “operator” thereof, then such Project Property shall be deemed not to be an             Eligible Loan for all purposes of this Agreement or any other Facility Document, as of             the first date so acquired and the Originator shall be required to repurchase such Loan             pursuant to the Sale and Contribution Agreement.                    (ii)  If, after reviewing the results of the search of such government database             and/or the information set forth in such Phase I environmental site assessment (or update                                       - 99- 34881204v6 110062879

 

            thereof)  or  other  information  available  to  it  with  respect  to  such  Project  Property,  the             Servicer has knowledge that a Project Property with respect to which it is contemplating             (i) acquiring, on behalf of the Borrower, in foreclosure or by deed in lieu of foreclosure             or  (ii)  taking  any  other  action  which  would  cause  the  Borrower  or  the  Administrative             Agent to be considered to hold title to, to be a “mortgagee-in-possession” of, or to be an             “owner” or “operator” of such Project Property within the meaning of CERCLA or any             Environmental Law, contains any material environmental or Hazardous Material risks, it             shall  not,  unless  the  Administrative  Agent  shall  have  otherwise  consented  thereto,             acquire such Project Property.                    (iii) The Servicer shall determine when all proceeds that it expects to recover             from or on account of a Defaulted Loan that has been liquidated have been recovered in             accordance with the Credit and Collection Policy (a “Liquidated Collateral Loan”).  The             Servicer shall use its reasonable best efforts (consistent with the Servicing Standard) to             liquidate  each  Defaulted  Loan  (whether  through  Collections,  sale,  liquidation  or             otherwise) prior to such Defaulted Loan becoming a Liquidated Collateral Loan.        Section 11.06. Servicing Compensation; Payment of Certain Expenses by Borrower.              (a)   As  compensation  for  its  servicing  and  collateral  management  activities       hereunder  and  reimbursement  for  its  expenses,  the  Servicer  shall  be  entitled  to  receive  the       Servicing Fees to the extent of funds available therefor pursuant to the Priority of Payments, as       applicable.              (b)   The Servicer (if the Servicer is an Affiliate of the Borrower) will be required to       pay all expenses incurred by it in connection with its activities under this Agreement, including       fees and disbursements of its independent accountants, Taxes imposed on the Servicer, expenses       incurred by the Servicer in connection with the production of reports pursuant to this Agreement,       and all other fees and expenses not expressly stated under this Agreement for the account of the       Borrower.  The Servicer shall be required to pay such expenses for its own account and shall not       be entitled to any payment therefor other than the Servicing Fees.        Section 11.07. The Servicer Not to Resign; Assignment.  The Servicer shall not resign from the obligations  and  duties  hereby  imposed  on  it  except  upon  the  Servicer’s  determination  that  the performance  of  its  duties  hereunder  is  or  becomes  impermissible  under  Applicable  Law.   Any  such determination permitting the resignation of the Servicer shall be evidenced by an opinion of counsel to such effect delivered to the Administrative Agent and each Lender.  No such resignation shall become effective  until  a  Successor  Servicer  shall  have  assumed  the  responsibilities  and  obligations  of  the Servicer in accordance with Section 11.08.        Section 11.08. Appointment of Successor Servicer.              (a)   Upon the resignation of the Servicer pursuant to Section 11.07 or the occurrence       and  continuance  of  a  Servicer  Termination  Event,  the  Administrative  Agent  may  (with  the       consent of the Required Lenders and, if required under the SBA 504 Loan Program, the SBA) at       any  time  appoint  a  successor  servicer  to  the  Servicer  under  this  Agreement  (the  “Successor       Servicer”), which, for the avoidance of doubt may be the Backup Servicer, the Administrative       Agent  or  any  Lender,  and  such  Successor  Servicer  shall  accept  its  appointment  by  a  written       assumption in a form acceptable to the Administrative Agent.  No assignment of this Agreement       by the Servicer shall be made unless such assignment is consented to in writing by the Borrower       and  the  Administrative  Agent  (with  notice  to  the  Backup  Servicer)  and,  if  required  under  the                                      -100- 34881204v6 110062879

 

      SBA 504 Loan Program, the SBA, provided, however, that nothing herein shall be construed to       restrict  the  ability  of  the  Administrative  Agent  to  replace  the  Servicer  as  servicer  of  the       Collateral upon the occurrence of a Servicer Termination Event pursuant to this Section 11.08 or       any obligations of the Servicer in connection with such provisions.              (b)   Upon its appointment (the “Assumption Date”), the Successor Servicer shall be       the successor in all respects to the servicing functions of Servicer under this Agreement and shall       be  subject  to  all  the  responsibilities,  duties  and  liabilities  relating  thereto  (subject  to  any       limitations set forth in this Article XI), and all references in this Agreement to the Servicer shall       be deemed to refer to the Successor Servicer; provided that the Successor Servicer shall not (i) be       deemed to have assumed or to become liable for, or otherwise have any liability for, any duties,       responsibilities,  actions  performed,  breaches,  defaults,  claims,  obligations  or  liabilities  of  the       terminated Servicer or any other predecessor Servicer arising before the Assumption Date, (ii)       have any obligation to pay any taxes required to be paid by the terminated Servicer or any other       predecessor Servicer (provided that the Successor Servicer shall pay any income taxes for which       it is liable), (iii) have any liability for any failure to perform its duties as Servicer, or any loss or       damages arising from such failure, that results from the actions (or inaction) of the terminated       Servicer  or  any  other  predecessor  Servicer  on  or  before  the  Assumption  Date,  (iv)  have  any       obligation  to  perform  advancing  or  repurchase  obligations,  if  any,  of  the  Borrower,  the       terminated  Servicer,  or  any  other  predecessor  Servicer  unless  it  elects  to  do  so  in  its  sole       discretion, (v) have any obligation to pay any of the fees and expenses of any other party to the       transaction  contemplated  by  this  Agreement  or  any  Facility  Document,  (vi)  have  any  liability       with respect to any of the representations and warranties of the Servicer under this Agreement,       (vii) have any obligation to expend or risk its own funds or otherwise incur any financial liability       in the performance of its duties hereunder or in the exercise of any of its rights and powers, if, in       its  reasonable  judgment,  it  shall  believe  that  repayment  of  such  funds  or  adequate  indemnity       against such risk or liability is not assured to it and (viii) have any obligation to file or record any       financing  statements  or  other  documents  in  order  to  perfect  or  continue  any  security  interests       contemplated by this Agreement unless it has been directed by the Administrative Agent to make       such  filing  or  recordation.   The  indemnification  obligations  of  the  Successor  Servicer,  upon       becoming a Successor Servicer, are expressly limited to those arising on account of its failure to       act in good faith and with reasonable care under the circumstances.              (c)   The Servicer agrees to cooperate and use its commercially reasonable efforts in       effecting the transition of the responsibilities and rights of servicing of the Collateral, including,       without limitation, the transfer to the Successor Servicer for the administration by it of all cash       amounts that shall at the time be held by the Servicer for deposit, or have been deposited by the       Servicer, or thereafter received with respect to the Collateral and the delivery to the Successor       Servicer in an orderly and timely fashion of all files and records with respect to the Collateral       and  a  computer  data  file  in  readable  form  containing  all  information  necessary  to  enable  the       Successor Servicer to service the Collateral.  In addition, the Servicer agrees to cooperate and use       its commercially reasonable efforts in providing, at the expense of the Servicer, the Successor       Servicer with reasonable access (including at the premises of the Servicer) to the employees of       the  Servicer,  and  any  and  all  of  the  books,  records  (in  electronic  or  other  form)  or  other       information reasonably requested by it to enable the Successor Servicer to assume the servicing       functions hereunder and under this Agreement and to maintain a list of key servicing personnel       and contact information.              (d)   Notwithstanding  the  Successor  Servicer’s  assumption  of,  and  its  agreement  to       perform  and  observe,  all  duties,  responsibilities  and  obligations  of  the  Servicer  under  this       Agreement arising on and after the Assumption Date, the Successor Servicer shall not be deemed                                      -101- 34881204v6 110062879

 

      to  have  assumed  or  to  become  liable  for,  or  otherwise  have  any  liability  for,  any  duties,       responsibilities,  obligations  or  liabilities  of  the  initial  Servicer  or  any  other  predecessor       Successor  Servicer  arising  under  the  terms  of  this  Agreement,  arising  by  operation  of  law  or       otherwise  with  respect  to  the  period  ending  on  the  Assumption  Date,  including,  without       limitation,  any  liability  for,  any  duties,  responsibilities,  obligations  or  liabilities  of  the  initial       Servicer or any other predecessor Successor Servicer arising on or before the Assumption Date       under this Agreement, regardless of when the liability, duty, responsibility or obligation of the       initial Servicer or any other predecessor Servicer therefor arose, whether provided by the terms       of this Agreement arising by operation of law or otherwise, and in no case will the Successor       Servicer  have  any  liability  for  any  failure  to  perform  its  duties  as  Servicer,  or  any  loss  or       damages  arising  from  such  failure,  that  results  from  the  actions  (or  inaction)  of  the  initial       Servicer or any other predecessor Successor Servicer on or before the Assumption Date.              (e)   The Successor Servicer undertakes to perform only such duties and obligations       as are specifically set forth in this Agreement, it being expressly understood by all parties hereto       that there are no implied duties or obligations of the Successor Servicer hereunder.              (f)   Notwithstanding anything contained in this Agreement or any Facility Document       to the contrary, the Successor Servicer is authorized to accept and rely on all of the accounting,       records  (including  computer  records)  and  work  of  the  prior  Servicer  relating  to  the  Collateral       Loans  (collectively,  the  “Predecessor  Servicer  Work  Product”)  without  any  audit  or  other       examination  thereof,  except  to  the  extent  that  it  knows  such  records  or  work  product  to  be       incorrect, and such Successor Servicer shall have no duty, responsibility, obligation or liability       for the acts and omissions of the prior Servicer or any other predecessor Servicer.  If any error,       inaccuracy, omission or incorrect or non-standard practice or procedure (collectively, “Errors”)       exist in any Predecessor Servicer Work Product and such Errors make it materially more difficult       to  service  or  should  cause  or  materially  contribute  to  the  Successor  Servicer  making  or       continuing any Errors (collectively, “Continued Errors”), such Successor Servicer shall have no       duty,  responsibility,  obligation  or  liability  for  such  Continued  Errors;  provided  that  such       Successor Servicer agrees to use commercially reasonable efforts to prevent further Continued       Errors.  In the event that the Successor Servicer becomes aware of Errors or Continued Errors, it       shall, with the prior consent of the Administrative Agent, use its commercially reasonable efforts       to reconstruct and reconcile such data as is commercially reasonable to correct such Errors and       Continued  Errors  and  to  prevent  future  Continued  Errors.   The  Successor  Servicer  shall  be       entitled to recover its costs thereby expended in accordance with the Priority of Payments.              (g)   The  Servicer  will,  upon  the  request  of  the  Successor  Servicer,  provide  the       Successor Servicer with a power of attorney providing that the Successor Servicer is authorized       and empowered to execute and deliver, on behalf of the Servicer, as attorney-in-fact or otherwise,       any and all documents and other instruments, and to do so or accomplish all other acts or things       necessary or appropriate to effect the purposes of such notice of termination or to perform the       duties of the Servicer under this Agreement.              (h)   The  Successor  Servicer  shall  not  be  liable  for  an  action  or  omission  to  act       hereunder,  except  for  its  own  willful  misconduct,  gross  negligence  or  bad  faith.   Under  no       circumstances  will  the  Successor  Servicer  be  liable  for  indirect,  special,  consequential  or       incidental  damages,  such  as  loss  of  use,  revenue  or  profit.   In  no  event  shall  the  Successor       Servicer be liable to the Borrower for any bad debts or other defaults by Obligors.                                       -102- 34881204v6 110062879

 

            (i)   Except as set forth herein, the Successor Servicer shall have no duty to review       any information regarding the Servicer, including any financial statements or the information set       forth herein.              (j)   If the Successor Servicer is prevented from fulfilling its obligations hereunder as       a result of government actions, regulations, fires, strikes, accidents, acts of God or other causes       beyond  the  control  of  such  party,  the  Successor  Servicer  shall  use  commercially  reasonable       efforts  to  resume  performance  as  soon  as  reasonably  possible,  and  the  Successor  Servicer’s       obligations shall be suspended for a reasonable time during which such conditions exist.  Except       as set forth herein, the Backup Servicer shall have no duty to review any information regarding       the Servicer, including any financial statements or the information set forth herein.                                   ARTICLE XII                           THE ADMINISTRATIVE AGENT        Section 12.01. Authorization and Action.        Each Lender hereby irrevocably appoints and authorizes the Administrative Agent to take such action  as  agent  on  its  behalf  and  to  exercise  such  powers  under  this  Agreement  and,  to  the  extent applicable, the other Facility Documents as are delegated to the Administrative Agent by the terms hereof and thereof, together with such powers as are reasonably incidental thereto, subject to the terms hereof. The Administrative Agent shall not have any duties or responsibilities, except those expressly set forth herein or in the other Facility Documents, or any fiduciary relationship with any Secured Party, and no implied  covenants,  functions,  responsibilities,  duties  or  obligations  or  liabilities  on  the  part  of  the Administrative  Agent  shall  be  read  into  this  Agreement  or  any  other  Facility  Document  to  which  the Administrative  Agent  is  a  party  (if  any)  as  duties  on  its  part  to  be  performed  or  observed.   The Administrative Agent shall not have or be construed to have any other duties or responsibilities in respect of this Agreement and the transactions contemplated hereby, regardless of whether a Default or Event of Default has occurred and is continuing.  As to any matters not expressly provided for by this Agreement or the other Facility Documents, the Administrative Agent shall not be required to exercise any discretion or take any action, but shall be required to act or to refrain from acting (and shall be fully protected in so acting or  refraining from  acting)  upon  the  written instructions of the Required Lenders (or such other number  or  percentage  of  the  Lenders  as  shall  be  necessary  under  the  circumstances  as  provided  in Section 15.01); provided that the Administrative Agent shall not be required to take any action which exposes  the  Administrative  Agent,  in  its  judgment,  to  personal  liability,  cost  or  expense  or  which  is contrary  to  this  Agreement,  the  other  Facility  Documents  or  Applicable  Law,  or  would  be,  in  its judgment, contrary to its duties hereunder, under any other Facility Document or under Applicable Law, including for the avoidance of doubt any action that may be in violation of the automatic stay under any Applicable Law or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any Applicable Law.  Each Lender agrees that in any instance in which the Facility Documents provide that the Administrative Agent’s consent may not be unreasonably withheld, provide for the exercise of the Administrative Agent’s reasonable discretion, or provide to a similar effect, it shall not in its instructions (or, by refusing to provide instruction) to the Administrative Agent withhold its consent or exercise its discretion in an unreasonable manner.  Except as expressly set forth in the Facility Documents, the Administrative Agent shall not have any duty to disclose, and shall not be liable for the failure  to  disclose,  any  information  relating  to  the  Borrower  or  any  of  its  Subsidiaries  that  is communicated to or obtained by the bank serving as the Administrative Agent or any of its Affiliates in any capacity.                                       -103- 34881204v6 110062879

 

      If the Administrative Agent has been requested or directed by the Required Lenders to take any action pursuant to any provision of this Agreement or any other Facility Document, the Administrative Agent  shall  not  be  under  any  obligation  to  exercise  any  of  the  rights  or  powers  vested  in  it  by  this Agreement  or  such  Facility  Document  in  the  manner  so  requested  unless  it  shall  have  been  provided indemnity reasonably satisfactory to it against the costs, expenses and liabilities which may be incurred by it in compliance with or in performing such request or direction.  No provision of this Agreement or any Facility Document shall otherwise be construed to require the Administrative Agent to expend or risk its  own  funds  or  to  take  any  action  that  could  in  its  judgment  cause  it  to  incur  any  cost,  expense  or liability, unless it is provided indemnity acceptable to it against any such expenditure, risk, cost, expense or liability.  For the avoidance of doubt, the Administrative Agent shall not have any duty or obligation to take any affirmative action to exercise or enforce any power, right or remedy available to it under this Agreement  or  any  Facility  Document  or  Loan  Document  unless  and  until  directed  by  the  Required Lenders.        Neither  the  Administrative  Agent  nor  any  officer,  agent  or  representative  thereof  shall  be personally  liable for any  action  taken  by  any  such  person  in  accordance  with  any notice given by the Required Lenders (or the Administrative Agent on their behalf) pursuant to the terms of this Agreement or any other Facility Document even if, at the time such action is taken by any such person, the Required Lenders or  persons  purporting to  be the  Required Lenders are not entitled to give such notice, except where the Responsible Officer of the Administrative Agent has actual knowledge (without any duty of inquiry or investigation on its part) that such Required Lenders or persons purporting to be the Required Lenders are not entitled to give such notice.  If any dispute or disagreement shall arise as to the allocation of any sum of money received by the Administrative Agent hereunder or under any Facility Document, the Administrative Agent shall have the right to deliver such sum to a court of competent jurisdiction and therein commence an action for interpleader.        Section 12.02. Delegation of Duties.  The Administrative Agent may execute any of its duties under  this  Agreement  and  each  other  Facility  Document  by  or  through  one  or  more  sub-agents  or attorneys-in-fact  appointed  by  the  Administrative  Agent  and  shall  be  entitled  to  advice  of  counsel concerning all matters pertaining to such duties.  The Administrative Agent shall not be responsible for the negligence or misconduct of any agents or attorneys-in-fact selected by it with reasonable care.  The exculpatory provisions of Section 12.01 shall apply to any such sub-agent and to the Related Parties of the  Administrative  Agent  and  any  such  sub-agent,  and  shall  apply  to  their  respective  activities  in connection  with  the  syndication  of  the  credit  facilities  provided  for  herein  as  well  as  activities  of  the Administrative Agent.        Section 12.03. Administrative Agent’s Reliance, Etc.              (a)   Neither  the  Administrative  Agent  nor  any  of  its  respective  directors,  officers,       agents  or  employees  shall  be  liable  for  any  action  taken  or  omitted  to  be  taken by  it  or  them       under or in connection with this Agreement or any of the other Facility Documents, except for its       or  their  own  gross  negligence  or  willful  misconduct.   Without  limiting  the  generality  of  the       foregoing,  the  Administrative  Agent:   (i)  may  consult  with  legal  counsel  (including,  without       limitation, counsel for the Borrower or the Servicer or any of their Affiliates) and independent       public accountants and other experts selected by it and shall not be liable for any action taken or       omitted to be taken in good faith by it in accordance with the advice of such counsel, accountants       or experts; (ii) makes no warranty or representation to any Secured Party or any other Person and       shall  not  be  responsible  to  any  Secured  Party  or  any Person  for any  statements, warranties  or       representations  (whether  written  or oral) made in or in connection with this Agreement or the       other Facility Documents; (iii) shall not have any duty to monitor, ascertain or to inquire as to the       performance or observance of any of the terms, covenants or conditions of this Agreement, the                                      -104- 34881204v6 110062879

 

      other  Facility  Documents  or  any  Loan  Documents  on  the  part  of  the  Borrower  or  any  other       Person or to inspect the property (including the books and records) of the Borrower; (iv) shall not       be responsible to any Secured Party or any other Person for the due execution, legality, validity,       enforceability,  genuineness,  sufficiency  or  value  of  any  Collateral,  this  Agreement,  the  other       Facility  Documents,  any  Loan  Document  or  any  other  instrument  or  document  furnished       pursuant hereto or thereto or for the validity, perfection, priority or enforceability of the Liens on       the Collateral; and (v) shall incur no liability under or in respect of this Agreement or any other       Facility Document by relying on, acting upon (or by refraining from action in reliance on) any       written  or  oral  notice,  request,  consent,  certificate  (including  for  the  avoidance  of  doubt,  the       Borrowing Base Certificate), instruction or waiver, report, statement, opinion, direction or other       instrument (which may be delivered in person or by telephone, telecopier, email, cable or telex, if       acceptable to it) believed by it to be genuine and believed by it to be signed or sent by the proper       party or parties.  The Administrative Agent shall not have any liability to the Borrower or any       Lender or any other Person for the Borrower’s or any Lender’s, as the case may be, performance       of, or failure to perform, any of their respective obligations and duties under this Agreement or       any other Facility Document.              (b)   The Administrative Agent shall not be liable for the actions of omissions of any       other agent (including without limitation concerning the application of funds), or under any duty       to  monitor  or  investigate  compliance  on  the  part  of  any  other  agent  with  the  terms  or       requirements of this Agreement, any Facility Documents or any Loan Documents, or their duties       thereunder.   The  Administrative  Agent  shall  be  entitled  to  assume  the  due  authority  of  any       signatory  and  genuineness  of  any  signature  appearing  on  any  instrument  or  document  it  may       receive  (including,  without  limitation,  each  Notice  of  Borrowing  received  hereunder).   The       Administrative  Agent  shall  not  be  liable  for  any  action  taken  in  good  faith  and  reasonably       believed by it to be within the powers conferred upon it, or taken by it pursuant to any direction       or  instruction  by  which  it  is  governed,  or  omitted  to  be  taken  by  it  by  reason  of  the  lack  of       direction or instruction required hereby for such action (including without limitation for refusing       to exercise discretion or for withholding its consent in the absence of its receipt of, or resulting       from a failure, delay or refusal on the part of the Required Lenders to provide, written instruction       to exercise such discretion or grant such consent from the Required Lenders, as applicable).  The       Administrative Agent shall not be liable for any error of judgment made in good faith unless it       shall be proven by a court of competent jurisdiction that the Administrative Agent was grossly       negligent in ascertaining the relevant facts.  Nothing herein or in any Facility Documents or Loan       Documents shall obligate the Administrative Agent to advance, expend or risk its own funds, or       to  take  any  action  which  in  its  reasonable  judgment  may  cause  it  to  incur  any  expense  or       financial or other liability for which it is not adequately indemnified.  The Administrative Agent       shall not be liable for any indirect, special or consequential damages (including but not limited to       lost profits) whatsoever, even if it has been informed of the likelihood thereof and regardless of       the form of action.  The Administrative Agent shall not be charged with knowledge or notice of       any matter unless actually known to a Responsible Officer of the Administrative Agent, or unless       and  to  the  extent  written  notice  of  such  matter  is  received  by  the  Administrative  Agent  at  its       address in accordance with Section 15.02.  Any permissive grant of power to the Administrative       Agent hereunder shall not be construed to be a duty to act.  The Administrative Agent shall not       be bound to make any investigation into the facts or matters stated in any resolution, certificate,       statement,  instrument,  opinion,  report,  notice,  request,  consent,  entitlement  order,  approval  or       other paper or document.  The Administrative Agent shall not be liable for any error of judgment,       or for any act done or step taken or omitted by it, in good faith, or for any mistakes of fact or law,       or for anything that it may do or refrain from doing in connection herewith except in the case of       its willful misconduct, bad faith, reckless disregard or grossly negligent performance or omission       of its duties.                                      -105- 34881204v6 110062879

 

            (c)   The Administrative Agent shall not be responsible or liable for delays or failures       in performance resulting from acts beyond its control.  Such acts shall include but not be limited       to acts of God, strikes, lockouts, riots, acts of war, epidemics, governmental regulations imposed       after the fact, fire, communication line failures, computer viruses, power failures, earthquakes or       other disasters.              (d)   The  delivery  of  reports,  and  other  documents  and  information  to  the       Administrative  Agent  hereunder  or  under  any  other  Facility  Document  is  for  informational       purposes only and the Administrative Agent’s receipt of such documents and information shall       not  constitute  constructive  notice  of  any  information  contained  therein  or  determinable  from       information contained therein.  The Administrative Agent is hereby authorized and directed to       execute and deliver the other Facility Documents to which it is a party.  Whether or not expressly       stated  in  such  Facility  Documents,  in  performing  (or  refraining  from  acting)  thereunder,  the       Administrative Agent shall have all of the rights, benefits, protections and indemnities that are       afforded to it in this Agreement.              (e)   Each Lender acknowledges that except as expressly set forth in this Agreement,       the Administrative Agent has not made any representation or warranty to it, and that no act by       the  Administrative  Agent  hereafter  taken,  including  any  consent  and  acceptance  of  any       assignment  or  review  of  the  affairs  of  the  Borrower,  shall  be  deemed  to  constitute  any       representation or warranty by the Administrative Agent to any Secured Party as to any matter.       Each  Lender  represents  to  the  Administrative  Agent  that  it  has,  independently  and  without       reliance upon the Administrative Agent and based on such documents and information as it has       deemed  appropriate,  made  its  own  appraisal  of  and  investigation  into  the  business,  prospects,       operations,  property,  financial  and  other  condition  and  creditworthiness  of  the  Borrower,  and       made its own decision to enter into this Agreement and the other Facility Documents to which it       is a party.  Each Lender also represents that it will, independently and without reliance upon the       Administrative Agent or any other Secured Party and based on such documents and information       as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not       taking action under this Agreement and the Facility Documents, and to make such investigations       as it deems necessary to inform itself as to the business, prospects, operations, property, financial       and other condition and creditworthiness of the Borrower.  The Administrative Agent shall not       have any duty or responsibility to provide any Secured Party with any credit or other information       concerning  the  business,  prospects,  operations,  property,  financial  or  other  condition  or       creditworthiness  of  the  Borrower  which  may  come  into  the  possession  of  the  Administrative       Agent.              In  its  capacity,  the  Administrative  Agent  is  a  “representative”  of  the  Secured  Parties       within the meaning of the term “secured party” as defined in the UCC.  Each Lender agrees that       no Secured Party (other than the Administrative Agent) shall have the right individually to seek       to realize upon the security granted by any Collateral Document, it being understood and agreed       that such rights and remedies may be exercised solely by the Administrative Agent for the benefit       of the Secured Parties upon the terms of the Facility Documents.  In the event that any Collateral       is  hereafter  pledged  by  any  Person  as  collateral  security  for  the  Secured  Obligations,  the       Administrative Agent is hereby authorized, and hereby granted a power of attorney, to execute       and deliver on behalf of the Secured Parties any Facility Documents necessary or appropriate to       grant and perfect a Lien on such Collateral in favor of the Administrative Agent on behalf of the       Secured Parties.  The Lenders hereby authorize the Administrative Agent, at its option and in its       discretion,  to  release  any  Lien  granted  to  or  held  by  the  Administrative  Agent  upon  any       Collateral  as  permitted  by,  but  only  in  accordance  with,  the  terms  of  the  applicable  Facility       Document or if approved, authorized or ratified in writing by the Required Lenders, unless such                                      -106- 34881204v6 110062879

 

      release  is  required  to  be  approved  by  all  of  the  Lenders  hereunder.   Upon  request  by  the       Administrative Agent at any time, the Lenders will confirm in writing the Administrative Agent’s       authority  to  release  particular  types  or  items  of  Collateral  pursuant  hereto.   Upon  any  sale  or       transfer of assets constituting Collateral which is permitted pursuant to the terms of any Facility       Document,  or  consented  to  in  writing  by  the  Required  Lenders  or  all  of  the  Lenders,  as       applicable, and upon at least five (5) Business Days’ prior written request by the Borrower to the       Administrative Agent, the Administrative Agent shall (and is hereby irrevocably authorized by       the Lenders to) execute such documents as may be necessary to evidence the release of the Liens       granted  to  the  Administrative  Agent  for  the  benefit  of  the  Secured  Parties  herein  or  pursuant       hereto  upon  the  Collateral  that  was  sold  or  transferred;  provided,  however,  that  (i)  the       Administrative Agent shall not be required to execute any such document on terms which, in the       Administrative Agent’s opinion, would expose the Administrative Agent to liability or create any       obligation  or  entail  any  consequence  other  than  the  release  of such  Liens  without  recourse  or       warranty, and (ii) such release shall not in any manner discharge, affect or impair the Secured       Obligations or any Liens upon (or obligations of the Borrower or any Subsidiary in respect of) all       interests retained by the Borrower or any Subsidiary, including (without limitation) the proceeds       of the sale, all of which shall continue to constitute part of the Collateral.              (f)   Each  Lender  acknowledges  and  agrees  that  the  extensions  of  credit  made       hereunder are commercial loans and letters of credit and not investments in a business enterprise       or securities.  Each Lender further represents that it is engaged in making, acquiring or holding       commercial  loans  in  the  ordinary  course  of  its  business  and  has,  independently  and  without       reliance upon the Administrative Agent or any other Lender and based on such documents and       information as it has deemed appropriate, made its own credit analysis and decision to enter into       this  Agreement  as  a  Lender,  and  to  make,  acquire  or  hold Advances hereunder.  Each Lender       shall, independently and without reliance upon the Administrative Agent or any other Lender and       based on such documents and information (which may contain material, non-public information       within  the  meaning  of  the  United  States  securities  laws  concerning  the  Borrower  and  its       Affiliates) as it shall from time to time deem appropriate, continue to make its own decisions in       taking or not taking action under or based upon this Agreement, any related agreement or any       document furnished hereunder or thereunder and in deciding whether or to the extent to which it       will  continue  as  a  lender  or  assign  or  otherwise  transfer  its  rights,  interests  and  obligations       hereunder.              (g)   Each  Lender  acknowledges  and  agrees  that  the  Lenders  are  not  partners  or       co-venturers, and no Lender shall be liable for the acts or omissions of, or (except as otherwise       set forth herein in case of the Administrative Agent) authorized to act for, any other Lender.  The       Administrative  Agent  shall  have  the  exclusive  right  on  behalf  of  the  Lenders  to  enforce  the       payment of the principal of and interest on any Advance after the date such principal or interest       has become due and payable pursuant to the terms of this Agreement.        Section 12.04. Indemnification.   Each  of  the  Lenders  agrees  to  indemnify  and  hold  the Administrative Agent and the Backup Servicer (in such capacity and in its capacity as Successor Servicer if it is so appointed) harmless (to the extent not reimbursed by or on behalf of the Borrower pursuant to Section  15.04  or  otherwise)  from  and  against  any  and  all  liabilities,  obligations,  losses,  damages, penalties,  actions,  judgments,  suits,  costs,  expenses  (including,  without  limitation,  attorney’s  fees  and expenses) or disbursements of any kind or nature whatsoever which may be imposed on, incurred by, or asserted against the Administrative Agent in any way relating to or arising out of this Agreement or any other  Facility  Document  or any  Loan  Document  or  any action taken or omitted by the Administrative Agent  under  this  Agreement  or  any  other  Facility  Document  or  any  Loan  Document  including  in connection  with  any  action,  claim  or  suit  brought  to  enforce  the  Backup  Servicer’s  right  to                                      -107- 34881204v6 110062879

 

indemnification; provided that no Lender shall be liable to the Administrative Agent for any portion of such  liabilities,  obligations,  losses,  damages,  penalties,  actions,  judgments,  suits,  costs,  expenses  or disbursements  resulting  from  the  Administrative  Agent’s  gross  negligence  or  willful  misconduct; and provided,  further,  that  no  Lender  shall  be  liable  to  the  Administrative  Agent  for  any  portion  of  such liabilities,  obligations,  losses,  damages,  penalties,  actions,  judgments,  suits,  costs,  expenses  or disbursements (for purposes hereof, “Agent Liabilities”) unless such Agent Liabilities are imposed on, incurred by, or asserted against the Administrative Agent as a result of any action taken, or not taken, by the Administrative Agent at the direction of the Administrative Agent or such Lender or Lenders, as the case may be, in accordance with the terms and conditions set forth in this Agreement (it being understood and agreed that the Administrative Agent shall be under no obligation to exercise or to honor any of the rights or powers vested in it by this Agreement at the request or direction of any of the Lenders (or other Persons  authorized  or  permitted  under  the  terms  hereof  to  make  such  request  or  give  such  direction) pursuant  to  this  Agreement  or  any  of  the  other  Facility  Documents,  unless  such  Lenders  shall  have provided to the Administrative Agent security or indemnity reasonably satisfactory to it against the costs, expenses  (including  reasonable  and  documented  attorney’s  fees  and  expenses)  and  Agent  Liabilities which  might  reasonably  be  incurred  by  it  in  compliance  with  such  request  or  direction, whether  such indemnity is provided under this Section 12.04 or otherwise).  The rights of the Administrative Agent and obligations of the Lenders under or pursuant to this Section 12.04 shall survive the termination of this Agreement, and the earlier removal or resignation of the Administrative Agent hereunder.        Section 12.05. Successor Administrative Agent.  Subject to the terms of this Section 12.05, the Administrative  Agent  may,  upon  thirty  (30)  days’  notice  to  the  Lenders  and  the  Borrower,  resign  as Administrative  Agent.   If  the  Administrative  Agent  shall  resign  then  the  Required  Lenders,  in consultation with the Borrower, shall appoint a successor agent.  If for any reason a successor agent is not so appointed and does not accept such appointment within thirty (30) days of notice of resignation the Administrative Agent may appoint a successor agent.  Any resignation of the Administrative Agent shall be effective upon the appointment of a successor agent pursuant to this Section 12.05.  After the effectiveness of the retiring Administrative Agent’s resignation hereunder as Administrative Agent, the retiring Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Facility Documents and the provisions of this Article XII shall continue in effect for its benefit with respect  to  any  actions  taken  or  omitted  to  be  taken  by  it,  its  sub-agents  and  their  respective  Related Parties  while  it  was  the  Administrative  Agent  under  this  Agreement  and  under  the  other  Facility Documents.  Any Person (i) into which the Administrative Agent may be merged or consolidated, (ii) that may result from any merger or consolidation to which the Administrative Agent shall be a party, or (iii) that may succeed to the corporate trust properties and assets of the Administrative Agent substantially as a whole, shall be the successor to the Administrative Agent under this Agreement without further act of any of the parties to this Agreement.  The fees payable by the Borrower to a successor Administrative Agent  shall  be  the  same  as  those  payable  to  its  predecessor  unless  otherwise  agreed  between  the Borrower and such successor.        Section 12.06. Administrative  Agent’s  Capacity  as  a  Lender.   The  Person  serving  as  the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent, and such Person and its Affiliates may accept deposits from, lend money to and generally engage in any kind of business with the Borrower or any Subsidiary or other Affiliate thereof as if it were not the Administrative Agent hereunder.        Section 12.07. Proceedings.              (a)   In  case  of  the  pendency  of  any  bankruptcy,  insolvency,  receivership  or  other       similar proceeding or any other judicial proceeding relative to the Borrower, the Administrative                                      -108- 34881204v6 110062879

 

      Agent  (irrespective  of  whether the principal of any Advance shall then be due and payable as       herein expressed or by declaration or otherwise and irrespective of whether the Administrative       Agent shall have made any demand on the Borrower) shall be entitled and empowered (but not       obligated) by intervention in such proceeding or otherwise (a) to file and prove a claim for the       whole amount of the principal and interest owing and unpaid in respect of the Advances and all       other obligations that are owing and unpaid and to file such other documents as may be necessary       or advisable in order to have the claims of the Lenders and the Administrative Agent (including       any  claim  for  the  reasonable  compensation,  expenses,  disbursements  and  advances  of  the       Lenders  and  the  Administrative  Agent  and  their  respective  agents  and  counsel  and  all  other       amounts  due  the  Lenders  and  the  Administrative  Agent  hereunder)  allowed  in  such  judicial       proceeding; and (b) to collect and receive any monies or other property payable or deliverable on       any such claims and to distribute the same, and, in the case of each of clauses (a) and (b) of this       paragraph,  any  custodian,  receiver,  assignee,  trustee,  liquidator,  sequestrator  or  other  similar       official  in  any  such  judicial  proceeding  is  hereby  authorized  by  each  Lender  to  make  such       payments  to  the  Administrative  Agent  and,  in  the  event  that  the  Administrative  Agent  shall       consent  to  the  making  of  such  payments  directly  to  the  Lenders,  to  pay  to  the  Administrative       Agent any amount due for the reasonable compensation, expenses, disbursements and advances       of  the  Administrative  Agent  and  its  agents  and  counsel,  and  any  other  amounts  due  the       Administrative Agent hereunder.              (b)   The Administrative Agent, on behalf of itself and the Secured Parties, shall have       the  right  to  credit  bid  and  purchase  for  the  benefit  of  the  Administrative Agent  and  the other       Secured  Parties  all  or  any  portion  of  the  Collateral  at  any  sale  thereof  conducted  by  the       Administrative Agent under the provisions of the UCC, including pursuant to Sections 9-610 or       9-620 of the UCC, at any sale thereof conducted under the provisions of the Bankruptcy Code,       including Section 363 thereof, or a sale under a plan of reorganization, or at any other sale or       foreclosure conducted by the Administrative Agent (whether by judicial action or otherwise) in       accordance with Applicable Law.  Each Lender hereby agrees that, except as otherwise provided       in  any  Facility  Documents  or  with  the  written  consent  of  the  Administrative  Agent  and  the       Required  Lenders,  it  will  not  take  any  enforcement  action,  accelerate  obligations  under  any       Facility Documents, or exercise any right that it might otherwise have under applicable law to       credit bid at foreclosure sales, UCC sales or other similar dispositions of the Collateral.                                  ARTICLE XIII                                 THE CUSTODIAN        Section 13.01. Custodial Agreement.              (a)   Initial  Custodian.   The  role  of  Custodian  with  respect  to  the  Collateral  Loans       shall be conducted by the Person designated as Custodian under the Custodial Agreement or as       approved by the Administrative Agent from time to time in accordance with Section 13.03.  As       of the Closing Date, U.S. Bank National Association is the Custodian.              (b)   Custodial Agreement.  The Borrower shall maintain in full force and effect the       Custodial Agreement.  No material amendment, modification, or supplement may be made to the       Custodial  Agreement  without  the  prior  written  consent  of  the  Administrative  Agent.   The       Borrower shall provide the Administrative Agent with at least five (5) Business Days’ written       notice of any proposed amendment to the Custodial Agreement.  In no event shall the Borrower       consent to any amendment, modification, supplement or termination of the Custodial Agreement       without the prior written consent of the Administrative Agent.                                      -109- 34881204v6 110062879

 

      Section 13.02. Duties of Custodian.              (a)   Duties.  The Borrower shall ensure that the duties of the Custodian pursuant to       the Custodial Agreement shall be substantially as follows:                    (i)   The Custodian shall take and maintain the Loan Documents delivered by             the Borrower pursuant to Section 7.05 and the Custodial Agreement in accordance with             the terms and conditions of the Custodial Agreement.                    (ii)  With  respect  to  any  Collateral  Loan,  pursuant  to  the  terms  of  the             Custodial Agreement, within two (2) Business Days of its receipt of the Loan Documents             and  Collateral  Loan File Checklist (or such other period of time as the Custodian, the             Administrative Agent and the Borrower shall agree to), the Custodian shall deliver to the             Borrower, with a copy to the Administrative Agent, a Custodial File Document Receipt             Certificate  in  respect  of  all  Collateral  Loans  to  be  added  to  this  Agreement  and  the             Custodial Agreement; provided, however, that if additional documents are subsequently             delivered to the Custodian pursuant to Section 7.05(c) and the Custodial Agreement, the             Custodian  shall  deliver  to  the  Borrower,  with  a  copy  to  the  Administrative  Agent,  an             updated  Custodial  File  Document  Receipt  Certificate  together  with  the  updated  Asset             Schedule and Exception Report attached thereto.                    (iii) The  Custodial  Agreement  shall  provide  that  the  delivery  of  each             Custodial  File  Document  Receipt  Checklist  to  the  Borrower  shall  be  the  Custodian’s             representation  that, other  than  the  Exceptions  listed  as  part  of the  Asset  Schedule and             Exception Report attached thereto: (A) all documents identified in the related Custodial             Delivery Certificate in respect of each Collateral Loan have been delivered and are in the             possession of the Custodian as part of the Loan File for such Collateral Loan, and (B) all             such documents have been reviewed by the Custodian and (1) appear on their face to be             regular (handwritten additions, changes or corrections shall not constitute irregularities if             initialed by the Originator), (2) have been executed, (3) relate to such Collateral Loan             and (D) satisfy the Review Procedures set forth in the Custodial Agreement, which shall             be substantially in the form of Schedule 10 attached hereto unless otherwise consented to             by  the  Administrative  Agent  in  writing.   Each  Asset  Schedule  and  Exception  Report             delivered by the Custodian to the Borrower with a copy to the Administrative Agent shall             supersede and cancel the Asset Schedule and Exception Report previously delivered by             the Custodian to the Borrower under the Custodial Agreement and shall replace the then             existing  Asset  Schedule  and  Exception  Report  to  be  attached  to  the  Custodial  File             Document Receipt Certificate.  In no event shall the Custodian list any Collateral Loan             on an Asset Schedule and Exception Report if the Custodian has not yet reviewed the             related Loan File.                    (iv)  The Custodial Agreement shall provide that on each Monthly Reporting             Date,  the  Custodian  shall  deliver  to  the  Administrative  Agent  and  the  Borrower  a             Custodial  File  Document  Receipt  Certificate  together  with  the  Asset  Schedule  and             Exception  Report  attached  thereto  for  each  Collateral  Loan  subject  to  the  Custodial             Agreement and setting forth the Exceptions for all of the Collateral Loans for which the             Custodian holds a Loan File pursuant to the Custodial Agreement.                    (v)   All  Loan  Documents  shall  be  (i)  if  in  physical  form,  (A)  kept  in  fire             resistant  vaults,  rooms  or  cabinets  at  the  Document  Custodian  Facilities,  (B)  placed             together with an appropriate identifying label and maintained in such a manner so as to                                      -110- 34881204v6 110062879

 

            permit  retrieval  and  access,  (C)  clearly  segregated  from  any  other  documents  or             instruments maintained by the Custodian, and (ii) if delivered in electronic format, saved             onto  disks  and/or  onto  the  Custodian’s  secure  computer  system,  and  maintained  in  a             manner so as to permit retrieval and access.                    (vi)  In performing its duties, the Custodian shall use a similar degree of care             and attention as it employs with respect to similar collateral that it holds as Custodian for             others.                    (vii) In  no  event  shall  the  Custodian  be  liable  for  special,  indirect  or             consequential losses or damages of any kind whatsoever (including but not limited to lost             profits) even if the Custodian has been advised of the likelihood of such damages and             regardless of the form of such action.                    (viii) The  Custodian  may  assume  the  genuineness  of  any  such  Financing             Document  it  may  receive  and  the  genuineness  and  due  authority  of  any  signatures             appearing thereon, and shall be entitled to assume that each such Financing Document it             may receive is what it purports to be.        Section 13.03. Custodian Removal.  The Borrower shall not remove the Custodian without the prior  written  consent  or  the  written  direction  of  the  Administrative  Agent.   Upon  any  removal  of  the Custodian  in  accordance  with  the  prior  sentence,  the  Borrower  shall  consult  with  the  Administrative Agent  in  appointing  a qualified  successor  satisfactory to the  Administrative  Agent  to  act as custodian under the Custodial Agreement and cause such successor custodian to execute and deliver an agreement accepting such appointment in form and content reasonably satisfactory to the Administrative Agent and the Borrower, in each case within the applicable notice period set forth in the Custodial Agreement.        Section 13.04. Access  to  Certain  Documentation  and  Information  Regarding  the  Collateral; Audits.              (a)   The  Borrower  and  the  Custodian  shall  provide  to  the  Administrative  Agent       access to the Loan Documents and all other documentation regarding the Collateral including in       such cases where the Administrative Agent is required in connection with the enforcement of the       rights or interests of the Secured Parties, or by applicable statutes or regulations, to review such       documentation, such access being afforded without charge (but, with respect to the Custodian, at       the  expense  of  the  Borrower)  but  only  (i)  upon  two  Business  Days’  prior written  request,  (ii)       during normal business hours and (iii) subject to the Borrower’s and Custodian’s normal security       and  confidentiality  procedures;  provided  that  the  Administrative  Agent  may,  and  shall  upon       request  of  any  Lender,  permit  each  Lender  to  be  included  on  any  such  review,  and  shall  use       commercially  reasonable  efforts  to  schedule  any  review  on  a  day  when  Lenders  desiring  to       participate  in  such  review  may  be  included.   From  time  to  time  at  the  discretion  of  the       Administrative  Agent,  the  Administrative  Agent  may  review  the  Borrower’s  collection  and       administration of the Collateral in order to assess compliance by the Borrower with Article XI       and  may  conduct  an  audit  of  the  Collateral,  and  Loan  Documents  in  conjunction  with  such  a       review.  Such review shall be reasonable in scope and shall be completed within a reasonable       period of time.              (b)   Without limiting the foregoing provisions of Section 13.04(a), from time to time       on request of the Administrative Agent, the Custodian shall permit certified public accountants       or other independent auditors acceptable to the Administrative Agent to conduct a review of the                                      -111- 34881204v6 110062879

 

      Loan Documents and all other documentation regarding the Collateral.  Such reviews shall be at       the expense of the Borrower.                                  ARTICLE XIV                             THE BACKUP SERVICER        Section 14.01. Designation of the Backup Servicer.  The role of Backup Servicer with respect to the  Collateral  Loans  shall  be  conducted  by  the  Person  designated as  Backup  Servicer  hereunder  from time to time in accordance with this Section 14.01.  Until the Administrative Agent shall give to U.S. Bank  National  Association  a  Backup  Servicer  Termination  Notice,  U.S.  Bank National  Association  is hereby  appointed  as,  and  hereby  accepts  such  appointment  and  agrees  to  perform  the  duties  and obligations of, Backup Servicer pursuant to the terms hereof.        Section 14.02. Duties of the Backup Servicer.              (a)   Prior  to  each  Monthly  Reporting  Date,  the  Backup  Servicer  shall  review  the       Monthly  Report  to  ensure  that  it  is  complete  on  its face  and,  based  solely  on  the  information       provided on the related Data File, that the following items in such Monthly Report have been       accurately calculated, if applicable, and reported: (i) Aggregate Principal Balance, (ii) Borrowing       Base,  (iii)  Excess  Concentration  Amount,  (iv)  Availability  and  the  Availability  Test,  (v)       Charged-Off Loan Ratio, (vi) Defaulted Loan Ratio, (viii) Interest Coverage Ratio, (ix) Modified       Loan Ratio, (x) completion of Priority of Payments pursuant to Section 9.01(a), (xi) completion       of fields in the loan list per the form of the Monthly Report and (xii) other information as may be       mutually  agreed  upon  by  the  Backup  Servicer  and  the  Administrative  Agent.   Nothing  herein       shall  prevent  the  Servicer  from  delivering  the  Monthly  Report  to  the Administrative  Agent in       order to comply with the Servicer’s delivery obligations hereunder if the Backup Servicer has not       completed its review on a timely basis.              (b)   The Backup Servicer undertakes to perform only such duties and obligations as       are specifically set forth in this Agreement, it being expressly understood by all parties hereto       that  there  are  no  implied  duties  or  obligations  of  the  Backup  Servicer  hereunder.   Without       limiting the generality of the foregoing, the Backup Servicer, except as expressly set forth herein,       shall  have  no  obligation  to  supervise,  verify,  monitor  or  administer  the  performance  of  the       Servicer  or  the  Borrower  and  shall  have  no  liability  for  any  action  taken  or  omitted  by  the       Servicer (including any successor to the Servicer) or the Borrower.  The Backup Servicer may       act through its agents, attorneys and custodians in performing any of its duties and obligations       under this Agreement, it being understood by the parties hereto that the Backup Servicer will be       responsible for any willful misconduct or gross negligence on the part of such agents, attorneys       or custodians acting for and on behalf of the Backup Servicer.  Neither the Backup Servicer nor       any of its officers, directors, employees or agents shall be liable, directly or indirectly, for any       damages  or  expenses  arising  out  of  the  services  performed  under  this  Agreement  other  than       damages or expenses that result from the gross negligence or willful misconduct of it or them or       the failure to perform materially in accordance with this Agreement.              (c)   The Backup Servicer is entitled to rely conclusively, and shall be fully protected       in so relying, on the contents of each Data File, including, but not limited to, the completeness       and accuracy thereof, provided by the Servicer.  The Backup Servicer shall have no liability for       any errors in the content of such Data File, and, except as specifically provided herein, shall not       be required to verify, recompute, reconcile or recalculate any such information or data.  Without       limiting the generality of any terms of the foregoing, the Backup Servicer shall have no liability                                      -112- 34881204v6 110062879

 

      for  any  failure,  inability  or  unwillingness  on  the  part  of  the  Servicer  to  provide  accurate  and       complete information on a timely basis to the Backup Servicer, or otherwise on the part of any       such  party  to  comply  with  the  terms  of  this  Agreement  or  other  Facility  Document, and  shall       have  no  liability  for  any  inaccuracy  or error  in  the  performance  or observance  on  the  Backup       Servicer’s   part  of  any  of  its  duties  hereunder  that  is  caused  by  or  results  from  any  such       inaccurate, incomplete or untimely information received by it, or other failure on the part of any       such other party to comply with the terms hereof.        Section 14.03. Fees of Backup Servicer.              (a)   For  the  performance  of  its  backup  servicing  duties  hereunder,  the  Backup       Servicer shall be entitled to the fees and expenses set forth in the Backup Servicer Fee Letter.       The Backup Servicer shall invoice the Borrower on a monthly basis for such fees and expenses.       Payment  shall  be  made  by  the  Borrower  to  the  extent  funds  are  available  for  that  purpose  in       accordance with the Priority of Payments.              (b)   In the event the Borrower fails to make timely payment of fees and expenses for       services performed by the Backup Servicer under this Agreement, the Backup Servicer shall give       the  Administrative  Agent  and  the  Servicer  written  notice  of  such  nonpayment.   The       Administrative Agent may elect to pay the Backup Servicer all then past due servicing fees and       expenses owed to the Backup Servicer, and the Borrower agrees to reimburse the Administrative       Agent therefor in accordance with the Priority of Payments.        Section 14.04. Assumption of Servicing Duties.              (a)   Upon  written  notification  by  the  Administrative Agent  to  the Backup  Servicer       and  the  Servicer  exercising  its  right  under  and  in  accordance  with  Section  11.08  to  appoint  a       Successor  Servicer  and  the  approval  of  the  SBA  if  required  by  the  SBA  504  Loan  Program,       which  notice  shall  be  binding  upon  the  Backup  Servicer,  requesting  the  Backup  Servicer  to       become Successor Servicer under this Agreement, the Backup Servicer shall become Successor       Servicer  under  this  Agreement  in  accordance  with  Section  11.08.   Within  forty-five  (45)       Business Days following the aforesaid notice of Administrative Agent, the Backup Servicer will       commence the performance of such servicing duties as Successor Servicer in accordance with the       terms and conditions of this Agreement.              (b)   The Backup Servicer will have the right to assign its obligations hereunder with       the prior written consent of the Administrative Agent and the Required Lenders, which consent       shall  not  be  unreasonably  withheld.   In  addition,  the  Backup  Servicer  may  execute  any  of  its       duties under this Agreement (both as Backup Servicer and as Successor Servicer) by or through       agents; provided that the Backup Servicer shall remain primarily liable for the due performance       of its duties hereunder.        Section 14.05. Indemnity.  The Servicer agrees to indemnify the Backup Servicer and each of its Affiliates and the officers, directors, employees, members and agents thereof, forthwith on demand, from and  against  any  and  all  damages,  losses,  claims,  liabilities  and  related  costs  and  expenses,  including reasonable  and  documented  attorneys’  fees  and  disbursements  (all  of  the  foregoing  being  collectively referred to as “Backup Servicer Indemnified Amounts”) to the extent awarded against or incurred by, any such indemnified party as a result of a Servicer breach occurring prior to the effective date of the removal of  the  Servicer  hereunder,  excluding,  however,  Backup  Servicer  Indemnified  Amounts  to  the  extent resulting  from  (A)  gross  negligence,  willful  misconduct  or  bad  faith  on  the  part  of  such  Indemnified Party, (B) a claim brought by the Servicer against an indemnified party for breach of such indemnified                                      -113- 34881204v6 110062879

 

party’s obligations hereunder or under any other Facility Document as to which such breach shall have been found to exist by final order of a court of competent jurisdiction, or (C) any action or inaction of the Backup Servicer occurring following the effective date of the removal of the Servicer hereunder except to the extent any such action or inaction of the Backup Servicer arises out of or resulted from the action or inaction of the Servicer prior to the effective date of its removal.  The provisions of this Section 14.05 shall survive termination of this Agreement.        Section 14.06. Additional Provisions Applicable to Backup Servicer. Notwithstanding anything to the contrary in this Agreement, in the event that the Backup Servicer becomes the Successor Servicer pursuant to Section 11.08, the following provisions shall be deemed applicable to the Backup Servicer as Successor Servicer:              (a)   the  Backup  Servicer’s  duties  as  Successor  Servicer  pursuant  to  Section       11.02(a)(viii)  shall  be  limited  solely  to  maintaining  the  perfection  of  Liens  on  the  Collateral       Loans in favor of the Administrative Agent on behalf of the Secured Parties by preparing and       filing or recording continuation statements and other documents or instruments as directed by the       Administrative Agent;              (b)   the Backup Servicer shall not be required to deliver the agreed-upon procedures       report pursuant to Section 8.08 unless the costs and expenses of the Backup Servicer in obtaining       such report shall be paid by the Borrower in accordance with the Priority of Payments (which the       Borrower  hereby  agrees  to  pay)  or  by  one  or  more  Agents  or  Lenders  in  its  or  their  sole       discretion;              (c)   the  Backup  Servicer  as  Successor  Servicer  shall  be  entitled  to  receive  at  least       five  Business  Days’  written  notice  prior  to  any  inspection  of its  premises  pursuant  to  Section       5.01(e), and such visits will occur no more than twice per year so long as the Backup Servicer is       not in default as Successor Servicer;              (d)   in the event that the Backup Servicer merges into another Person or conveys or       transfers  its  assets  to  a  third  party  and  the  surviving  entity  assumes  the  duties  of  the  Backup       Servicer hereunder, this Agreement shall remain in force, and the terms hereof shall govern the       relationship between the Borrower and the successor to the Backup Servicer;              (e)   the  indemnification  obligations  of  the  Backup  Servicer  upon  becoming       Successor  Servicer  hereunder  are  expressly  limited  to  those  instances  of  willful  misconduct,       gross negligence or bad faith of the Backup Servicer as Successor Servicer; and              (f)   the Backup Servicer as Successor Servicer shall have no duties with respect to       Sections 11.02(a)(x) and (xi) hereof.        Section 14.07. Resignation of the Backup Servicer. Notwithstanding the provisions above, the Backup Servicer may resign, either as Backup Servicer or as Successor Servicer, upon ninety (90) days prior written notice to the Administrative Agent and the Borrower: provided, however, such resignation shall not become effective until there is a replacement Successor Servicer or Backup Servicer in place that is acceptable to the Administrative Agent, and, unless an Event of Default shall have occurred and be continuing,  the  Borrower,  in  each  case  in  their  sole  discretion.   Upon  the  resignation  of  the  Backup Servicer,  the  Administrative  Agent  shall  appoint  a successor Backup  Servicer (subject to the previous sentence) and if it does not do so within thirty days of the Backup Servicer’s resignation, the Backup Servicer may petition a court of competent jurisdiction for the appointment of a successor.                                       -114- 34881204v6 110062879

 

      Section 14.08. Limitation  of  Liability  of  the  Backup  Servicer.   Notwithstanding  anything contained herein to the contrary, this Agreement has been executed by U.S. Bank National Association, not in its individual capacity, but solely as the Backup Servicer, and in no event shall U.S. Bank National Association  have  any  liability  for  the  representations,  warranties,  covenants,  agreements  or  other obligations  of  the  other  parties  hereto  or  in  any  of  the  certificates,  notices  or  agreements  delivered pursuant  hereto,  as  to  all  of  which  recourse  shall  be  had  solely  to  the  assets  of  the  party  responsible therefor.                                   ARTICLE XV                                MISCELLANEOUS        Section 15.01. No Waiver; Modifications in Writing.              (a)   No failure or delay on the part of any Secured Party exercising any right, power       or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of       any such right, power or remedy preclude any other or further exercise thereof or the exercise of       any  other  right,  power  or  remedy.   Any  waiver  of  any  provision  of  this  Agreement,  and  any       consent to any departure by any party to this Agreement from the terms of any provision of this       Agreement, shall be effective only in the specific instance and for the specific purpose for which       given.  No notice to or demand on the Borrower in any case shall entitle the Borrower to any       other or further notice or demand in similar or other circumstances.              (b)   No amendment, modification, supplement or waiver of this Agreement shall be       effective unless signed by the Borrower, the Servicer, the Administrative Agent and the Majority       Lenders, provided that:                    (i)   any  Fundamental  Amendment  shall  require  the  written  consent  of  all             Lenders; and                    (ii)  no  such  amendment,  modification,  supplement  or  waiver  shall  amend,             modify or otherwise affect the rights or duties of the Administrative Agent, the Backup             Servicer,  the  Successor  Servicer  or  the  Custodian  hereunder  without  the  prior  written             consent of the Administrative Agent, the Backup Servicer, the Successor Servicer or the             Custodian, as the case may be.              (c)   Notwithstanding  anything  to  the  contrary  herein,  no  Defaulting  Lender  shall       have any right to approve or disapprove any amendment, waiver or consent hereunder (and any       amendment,  waiver  or  consent  which  by  its terms  requires the  consent  of  all  Lenders  or  each       affected Lender may be effected with the consent of the applicable Lenders other than Defaulting       Lenders),  except  that  (x)  the  Commitment  of  any  Defaulting  Lender  may  not  be  increased  or       extended  without  the  consent  of  such  Lender  and  (y)  any  waiver,  amendment  or  modification       requiring  the  consent  of  all  Lenders  or  each  affected  Lender  that  by  its  terms  affects  any       Defaulting Lender more adversely than other affected Lenders shall require the consent of such       Defaulting Lender.        Section 15.02. Notices, Etc.              (a)   Except  where  telephonic  instructions  are  authorized  herein  to  be  given  (and       subject  to  paragraph  (b)  below),  all  notices,  demands,  instructions  and  other  communications       required or permitted to be given to or made upon any party hereto shall be in writing and shall                                      -115- 34881204v6 110062879

 

      be  personally  delivered  or  sent  by  registered, certified  or express mail, postage prepaid, or by       facsimile transmission, or by prepaid courier service, or by electronic mail (if the recipient has       provided an email address in Schedule 5), and shall be deemed to be given for purposes of this       Agreement  on  the  day  that  such  writing  is  received  by  the  intended  recipient  thereof  in       accordance with the provisions of this Section 15.02.  Unless otherwise specified in a notice sent       or delivered in accordance with the foregoing provisions of this Section 15.02, notices, demands,       instructions and other communications in writing shall be given to or made upon the respective       parties  hereto  at  their  respective  addresses  (or  to  their  respective  facsimile  numbers  or  email       addresses)  indicated  in  Schedule  5,  and,  in  the  case  of  telephonic  instructions  or  notices,  by       calling the telephone number or numbers indicated for such party in Schedule 5.              (b)   Notices and other communications to the Lenders hereunder may be delivered or       furnished  by  electronic  communication  (including  e-mail  and  internet  or  intranet  websites)       pursuant to procedures approved by the Administrative Agent; provided that, the foregoing shall       not  apply  to  notices  to  any  Lender  pursuant  to  Article  II  if  such  Lender  has  notified  the       Administrative  Agent that it is incapable of receiving notices under such Article by electronic       communication.   The  Administrative  Agent  or  the  Borrower  may,  in  its  discretion,  agree  to       accept notices and other communications to it hereunder by electronic communications pursuant       to  procedures  approved  by  it;  provided  that,  approval  of  such  procedures  may  be  limited  to       particular notices or communications.  Unless the Administrative Agent otherwise prescribes, (i)       notices and other communications sent to an e-mail address shall be deemed received upon the       sender’s  receipt  of  an  acknowledgement  from  the  intended  recipient  (such  as  by  the  “return       receipt  requested”  function,  as  available,  return  e-mail  or  other  written  acknowledgement);       provided that, if such notice or other communication is not sent during the normal business hours       of the recipient, such notice or communication shall be deemed to have been sent at the opening       of business on the next business day for the recipient, and (ii) notices or communications posted       to  an  internet  or  intranet  website  shall  be  deemed  received  upon  the  deemed  receipt  by  the       intended recipient at its e-mail address as described in the foregoing clause (i) of notification that       such notice or communication is available and identifying the website address therefore.              (c)   The  Platform.   THE  PLATFORM  IS  PROVIDED  “AS  IS”  AND  “AS       AVAILABLE.”  THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE       ACCURACY OR COMPLETENESS OF ANY MATERIALS OR INFORMATION PROVIDED       BY  OR  ON  BEHALF OF  THE  BORROWER  OR THE ADEQUACY OF THE PLATFORM,       AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM ANY       MATERIALS OR INFORMATION PROVIDED BY OR ON BEHALF OF THE BORROWER.       NO  WARRANTY  OF  ANY  KIND,  EXPRESS,  IMPLIED  OR  STATUTORY,  INCLUDING       ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,       NON-INFRINGEMENT  OF  THIRD  PARTY  RIGHTS  OR  FREEDOM  FROM  VIRUSES  OR       OTHER  CODE  DEFECTS,  IS  MADE  BY  ANY  AGENT  PARTY  IN  CONNECTION  WITH       ANY  MATERIALS  OR  INFORMATION  PROVIDED  BY  OR  ON  BEHALF  OF  THE       BORROWER OR THE PLATFORM.  In no event shall the Administrative Agent or any of its       Related Parties (collectively, the “Agent Parties”) have any liability to the Borrower, any Lender       or any other Person for losses, claims, damages, liabilities or expenses of any kind (whether in       tort,  contract  or  otherwise)  arising  out  of  the  Borrower’s  or  the  Administrative  Agent’s       transmission of any materials or information provided by or on behalf of the Borrower through       the  internet,  except  to  the  extent  that  such  losses,  claims,  damages,  liabilities  or  expenses  are       determined by a court of competent jurisdiction by a final and nonappealable judgment to have       resulted  from  the  gross  negligence  or  willful  misconduct  of  such  Agent  Party;  provided,       however, that in no event shall any Agent Party have any liability to the Borrower, any Lender or                                      -116- 34881204v6 110062879

 

      any other Person for indirect, special, incidental, consequential or punitive damages (as opposed       to direct or actual damages).              (d)   Any  party  hereto  may  change  its  address  or  telecopy  number  for  notices  and       other  communications  hereunder  by  notice  to  the  other  parties  hereto.   All  notices  and  other       communications given to any party hereto in accordance with the provisions of this Agreement       shall be deemed to have been given on the date of receipt.        Section 15.03. Taxes.              (a)   Any and all payments by the Borrower under this Agreement shall be made, in       accordance with this Agreement, free and clear of and without deduction for any and all present       or future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities (including       penalties, interest and expenses) with respect thereto, excluding: (A) any net income (however       denominated)  taxes,  capital  taxes,  or  similar  taxes  in  lieu  thereof,  branch  profits  taxes  and       franchise taxes, in each case imposed (i) in the case of any Secured Party, by the jurisdiction (or       any political subdivision thereof) under the laws of which such Secured Party is organized or in       which its principal office is located, or in the case of any Lender, in which its applicable lending       office is located, or (ii) in the case of any Secured Party or any Lender, by any jurisdiction solely       by reason of such Secured Party or such Lender having any other present or former connection       with such jurisdiction (other than a connection arising solely from entering into, receiving any       payment under or enforcing its rights under this Agreement or any other Facility Document); (B)       any U.S. federal withholding taxes imposed under FATCA; and (C) any interest, penalties and       additions to tax attributable to any of the foregoing (all such non-excluded taxes, levies, imposts,       deductions, charges, withholdings and liabilities being hereinafter referred to as “Taxes”).  If the       Borrower shall be required by law (or by the interpretation or administration thereof) to deduct       any  Taxes  from  or  in  respect  of  any  sum  payable  by  it  hereunder  or  under  any  other  Facility       Document to any Secured Party, (i) the sum payable by the Borrower shall be increased as may       be  necessary  so  that  after  making  all  required  deductions  (including  deductions  applicable  to       additional sums payable under this Section 15.03) such Secured Party receives an amount equal       to  the  sum  it  would  have  received had no such deductions been made, (ii) the Borrower shall       make such deductions, and (iii) the Borrower shall timely pay the full amount deducted to the       relevant  Governmental  Authority  in  accordance  with  Applicable  Law.   The  obligation  of  the       Borrower to make any additional payments in respect of any deduction or withholding of Taxes       as  set  forth  in  this  Section  15.03  shall  be  subject  to  the  Secured  Party’s  compliance  with  the       conditions in Section 15.03(g).              (b)   In  addition, the Borrower agrees, to timely pay any present or future stamp or       documentary taxes or any other excise or property taxes, charges or similar levies which arise       from  any  payment  made  by  the  Borrower  hereunder  or  under  any  other Facility  Document  or       from the execution, delivery or registration of, or otherwise with respect to, this Agreement or       under any other Facility Document (hereinafter referred to as “Other Taxes”).              (c)   The  Borrower  agrees  to  indemnify  each  of  the  Secured  Parties  for  the  full       amount of Taxes or Other Taxes (including any Taxes or Other Taxes imposed or asserted by any       jurisdiction on amounts payable under this Section 15.03) paid by any Secured Party in respect of       the Borrower, whether or not such Taxes or Other Taxes were correctly or legally imposed or       asserted.   Payments  by  the  Borrower  pursuant  to  this  indemnification  shall  be  made promptly       following  the  date  the  Secured  Party  makes  written  demand  therefor,  which  demand  shall  be       accompanied by a certificate describing in reasonable detail the basis thereof.  Such certificate       shall  be  presumed  to  be  correct  absent  manifest  error.   The  Borrower’s  indemnification                                      -117- 34881204v6 110062879

 

      obligation pursuant to this Section 15.03(c) shall include any costs or expenses of the Secured       Party  in  defending  a  claim  or  bringing  any  claim  to  enforce  Borrower’s  indemnification       obligation.              (d)   The Borrower shall not be required to indemnify any Secured Party, or pay any       additional amounts to any Secured Party, in respect of United States federal withholding tax or       United  States  federal  backup  withholding  tax  to  the  extent  that  (i)  the  obligation  to  withhold       amounts  with  respect  to  United  States  federal  withholding  or  backup  withholding  tax  was       imposed pursuant to a law in effect on the date such Lender became a party to this Agreement (or       acquired its interest herein) or, with respect to payments to a new lending office designated by a       Lender (a “New Lending Office”), the date such Lender designated such New Lending Office       with  respect  to  an  Advance;  provided  that  this  clause  (i)  shall  not  apply  to  the  extent  the       indemnity  payment  or  additional  amounts  any  Secured  Party  would  be  entitled  to  receive       (without regard to this clause (i)) do not exceed the indemnity payment or additional amounts       that the transferor Lender or the Lender making the designation of such New Lending Office, if       any, would have been entitled to receive in the absence of such transfer or designation, or (ii) the       obligation  to  pay  such  additional  amounts  would  not  have  arisen  but  for  a  failure  by  such       Secured Party to comply with paragraphs (g) or (h) below.              (e)   Promptly after the date of any payment of Taxes or Other Taxes, the Borrower       will furnish to the Administrative Agent the original or a certified copy of a receipt issued by the       relevant Governmental Authority evidencing payment thereof (or other evidence of payment as       may be reasonably satisfactory to the Administrative Agent).              (f)   If  any  payment  is made by the Borrower to or for the account of any Secured       Party after deduction for or on account of any Taxes or Other Taxes, and an indemnity payment       or  additional  amounts  are  paid  by  the  Borrower  pursuant  to  this  Section  15.03,  then,  if  such       Secured  Party  in  its  sole  discretion  exercised  in  good  faith  determines  that  it  is  entitled  to  a       refund of such Taxes or Other Taxes, such Secured Party shall, to the extent that it can do so       without  prejudice  to  the  retention  of  the  amount  of  such  refund,  apply  for  such  refund  and       reimburse to the Borrower such amount of any refund received (net of reasonable out-of-pocket       expenses incurred, including taxes) as such Secured Party shall determine in its sole discretion to       be attributable to the relevant Taxes or Other Taxes; provided that in the event that such Secured       Party is required to repay such refund to the relevant taxing authority, the Borrower agrees to       return the refund to such Secured Party.  Notwithstanding anything to the contrary in this Section       15.03(f),  in  no  event  will  the  indemnified  party  be  required  to  pay  any  amount  to  an       indemnifying  party  pursuant  to  this  Section  15.03(f)  the  payment  of  which  would  place  the       indemnified party in a less favorable net after-tax position than the indemnified party would have       been  in  if  the  Tax  giving  rise  to  such  refund  had  not  been  deducted,  withheld  or  otherwise       imposed and the indemnification payments or additional amounts with respect to such Tax had       never been paid.              (g)   Each  Secured  Party  and  each  Participant  that  is  a  U.S.  person  as  that  term  is       defined in Section 7701(a)(30) of the Code (a “U.S. Person”) hereby agrees that it shall, no later       than the Funding Effective Date or, in the case of a Secured Party or a Participant which becomes       a  party  hereto  pursuant  to  Section  15.06,  the  date  upon  which  such  Secured  Party  becomes  a       party hereto or participant herein (and from time to time thereafter upon the reasonable request of       the Borrower and/or the Administrative Agent (as applicable)), deliver to the Borrower and the       Administrative Agent, if applicable, two accurate, complete and signed copies of U.S. Internal       Revenue Service Form W-9 or successor form, certifying that such Secured Party or Participant       is on the date of delivery thereof entitled to an exemption from United States backup withholding                                      -118- 34881204v6 110062879

 

      tax.  Each Secured Party or Participant that is not a U.S. Person (a “Non-U.S. Lender”) shall, no       later than the date on which such Secured Party becomes a party hereto or a participant herein       pursuant to Section 15.06 (and from time to time thereafter upon the reasonable request of the       Borrower  and/or  the  Administrative  Agent  (as  applicable)),  deliver  to  the  Borrower  and  the       Administrative Agent two properly completed and duly executed copies of either U.S. Internal       Revenue  Service  Form  W-8BEN,  W-8ECI  or  W-8IMY  or  any  subsequent  versions  thereof  or       successors thereto and such other properly completed and executed documentation prescribed by       Applicable Law, in each case claiming complete exemption from U.S. federal withholding tax       with respect to payments of interest hereunder.  In addition, in the case of a Non-U.S. Lender       claiming  exemption  from  U.S.  federal  withholding  tax  under  Section  871(h)  or  881(c)  of  the       Code, such Non-U.S. Lender provides the appropriate certification pursuant to Exhibit I that such       Non-U.S. Lender is not a bank for purposes of Section 881(c) of the Code, is not a 10-percent       shareholder (within the meaning of Section 871(h)(3)(B) of the Code) of the Borrower and is not       a controlled foreign corporation related to the Borrower (within the meaning of Section 864(d)(4)       of  the  Code),  and  such  Non-U.S.  Lender  agrees  that  it  shall  notify  the  Borrower  and  the       Administrative Agent in the event such certification is no longer accurate.  Such forms shall be       delivered by each Non-U.S. Lender on or before the date it becomes a party to this Agreement or       participant  herein  and  on  or  before  the  date,  if  any,  such  Non-U.S.  Lender  designates  a  New       Lending  Office.   In  addition,  each  Non-U.S.  Lender  shall  deliver  such  forms  as  promptly  as       practicable  after  receipt  of  a  written  request  therefor  from  the  Borrower  or  an  Agent.       Notwithstanding  any  other  provision  of  this  Section  15.03,  a  Non-U.S.  Lender  shall  not  be       required to deliver any form pursuant to this Section 15.03(g) that such Non-U.S. Lender is not       legally able to deliver.  Each Secured Party agrees that if any form or certification it previously       delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or       certification or promptly notify the Borrower in writing of its legal inability to do so.              (h)   If any Secured Party requires the Borrower to pay any additional amount to such       Secured Party or any taxing Governmental Authority for the account of such Secured Party or to       indemnify such Secured Party pursuant to this Section 15.03, then such Secured Party shall use       reasonable  efforts  to  designate  a  different  lending  office  for  funding  or  booking  its  Advances       hereunder or to assign its rights and obligations hereunder to another of its offices, branches or       affiliates, if such Lender determines, in its sole discretion, that such designation or assignment (i)       would eliminate or reduce amounts payable pursuant to this Section 15.03 in the future and (ii)       would  not  subject  such  Secured  Party  to  any  unreimbursed  cost  or  expense  and  would  not       otherwise  be  disadvantageous  to  such  Secured  Party.   The  Borrower  hereby  agrees  to  pay  all       reasonable costs and expenses incurred by any Lender in connection with any such designation       or assignment.              (i)   Nothing in this Section 15.03 shall be construed to require any Secured Party to       make  available  its  tax  returns  (or  any  other  information  relating  to  its  taxes  that  it  deems       confidential) to the Borrower or any other Person.              (j)   Compliance with FATCA.  Each Secured Party shall deliver to the Borrower and       the Administrative Agent, as applicable, at the time or times prescribed by law and at such time       or times reasonably requested by the Borrower or an Agent such documentation prescribed by       Applicable  Law  or  FATCA  (including  as  prescribed  by  Section  1571(b)(3)(C)(i)  of the Code)       and such additional documentation reasonably requested by the Borrower or an Agent as may be       necessary  for  the  Borrower  and  the  Administrative  Agent,  as  applicable,  to  comply  with  their       obligations  under  FATCA  and  to  determine  that  such  Secured  Party  has  complied  with  such       Secured Party’s obligations under FATCA or to determine the amount to deduct and withhold                                      -119- 34881204v6 110062879

 

      from  any  payment.  Solely  for  purposes  of  this  Section  15.03(j),  “FATCA”  shall  include  any       amendments made to FATCA after the date of this Agreement.        Section 15.04. Costs and Expenses; Indemnification.              (a)   The  Borrower  agrees  to  promptly  pay  all  reasonable  and  documented       out-of-pocket  costs  and  expenses  of  the  Administrative  Agent  and  the  Backup  Servicer  in       connection with the preparation, review, negotiation, reproduction, execution and delivery of this       Agreement and the other Facility Documents, including the reasonable fees and disbursements of       outside counsel for  the Administrative Agent and the Backup Servicer, costs of any independent       accountants performing agreed upon procedures audits, UCC filing fees and all other related fees       and expenses in connection therewith; and in connection with any modification or amendment of       this Agreement or any other Facility Document.  Further, the Borrower shall pay on demand (A)       all reasonable and documented out-of-pocket costs and expenses (including all reasonable fees,       expenses  and  disbursements  of  legal  counsel  and  any  auditors,  accountants,  consultants  or       appraisers or other professional advisors and agents engaged by the Administrative Agent and the       Lenders)  incurred  by  the  Administrative  Agent  in  the  preparation,  execution,  delivery,  filing,       recordation, administration, performance or enforcement of this Agreement or any other Facility       Document  or  any  consent,  amendment,  waiver  or  other  modification  relating  thereto,  (B)  all       reasonable and documented out-of-pocket costs and expenses of creating, perfecting, releasing or       enforcing  the  Administrative  Agent's  security  interests  in  the  Collateral,  including  filing  and       recording fees, expenses and taxes, stamp or documentary taxes, search fees, and title insurance       premiums, and (C) all reasonable costs and expenses incurred by the Administrative Agent and       the  Backup  Servicer  (including  in  its  capacity  as  Successor  Servicer)  in  connection  with  the       preservation,  collection,  foreclosure  or  enforcement  of  the  Collateral  subject  to  the  Facility       Documents or any interest, right, power or remedy of the Administrative Agent and the Lenders       or  in  connection  with  the  collection  or  enforcement  of  any  of  the  Obligations  or  the  proof,       protection,  administration  or  resolution  of  any  claim  based  upon  the  Obligations  in  any       insolvency  proceeding,  including  all  reasonable  fees  and  disbursements  of  attorneys,       accountants,  auditors,  consultants,  appraisers  and  other  professionals  engaged  by  the       Administrative Agent and the Lenders; provided that in each case, there shall be a single primary       counsel  to  the  Administrative  Agent  and  the  Lenders  and  a  single  local  counsel  to  the       Administrative Agent and the Lenders in each relevant jurisdiction (unless there is an actual or       perceived  conflict  of  interest  or  the  availability  of  different  claims  or  defenses  among  the       Administrative  Agent  and  the  Lenders,  in  which  case  each  such  similarly  conflicted  group  of       Persons may retain its own counsel).  The undertaking in this Section shall survive repayment of       the Obligations, any foreclosure under, or modification, release or discharge of, any or all of the       Loan  Documents,  termination  of  this  Agreement  and  the  resignation  or  replacement  of  the       Administrative  Agent.   Without  prejudice  to  its  rights  hereunder,  the  expenses  and  the       compensation for the services of the Administrative Agent are intended to constitute expenses of       administration under any applicable bankruptcy law.              (b)   The  Borrower  agrees  to  indemnify  and  hold  harmless  each  Secured  Party  and       each of their Affiliates and the respective officers, directors, employees, agents, managers of, and       any Person controlling any of, the foregoing (each, an “Indemnified Party”) from and against any       and  all  claims,  damages,  losses,  liabilities,  obligations,  expenses,  penalties,  actions,  suits,       judgments  and  disbursements  of any  kind  or  nature whatsoever, (including the reasonable and       documented fees and disbursements of counsel) that may be incurred by or asserted or awarded       against any Indemnified Party, in each case arising out of or in connection with or by reason of       the execution, delivery, enforcement, performance, administration of or otherwise arising out of       or  incurred  in  connection  with  this  Agreement,  any  other  Facility  Document,  any  Loan                                      -120- 34881204v6 110062879

 

      Document or any transaction contemplated hereby or thereby (and regardless of whether or not       any  such  transactions  are  consummated)  (collectively,  the  “Liabilities”),  including  any  such       Liability that is incurred or arises out of or in connection with, or by reason of any one or more       of  the  following:   (i)  preparation  for  a  defense  of  any  investigation,  litigation  or  proceeding       arising out of, related to or in connection with this Agreement, any other Facility Document, any       Loan Document or any of the transactions contemplated hereby or thereby; (ii) any breach of any       covenant  by  the  Borrower  or  the  Servicer  contained  in  any  Facility  Document;  (iii)  any       representation or warranty made or deemed made by the Borrower or the Servicer contained in       any Facility Document or in any certificate, statement or report delivered in connection therewith       is  false or  misleading;  (iv)  the  Management  of  any  Hazardous  Materials  or  any  failure  by  the       Borrower or the Servicer to comply with any Applicable Law (including Environmental Law) or       contractual  obligation  binding  upon  it;  (v)  any  failure  to  vest,  or  delay  in  vesting,  in  the       Administrative Agent (for the benefit of the Secured Parties) a perfected security interest in all of       the Collateral free and clear of all Liens other than Permitted Liens; (vi) any action or omission,       not  expressly  authorized  by  the  Facility  Documents,  by  the  Borrower  or  any  Affiliate  of  the       Borrower  which  has  the  effect  of  reducing  or  impairing  the  Collateral  or  the  rights  of  the       Administrative Agent or the Secured Parties with respect thereto; (vii) the failure to file, or any       delay  in  filing,  financing  statements,  continuation  statements  or  other  similar  instruments  or       documents under the UCC of any applicable jurisdiction or other Applicable Law with respect to       any Collateral, whether at the time of any Advance or at any subsequent time; (viii) any dispute,       claim, offset or defense (other than the discharge in bankruptcy of an Obligor) of an Obligor to       the payment with respect to any Collateral (including, without limitation, a defense based on any       Collateral  Loan  (or  the  Loan  Documents  evidencing  such  Collateral  Loan)  not  being  a  legal,       valid and binding obligation of such Obligor enforceable against it in accordance with its terms),       or any other claim resulting from any related property; (ix) the commingling of Collections on       the Collateral at any time with other funds; (x) any failure by the Borrower to give reasonably       equivalent value to the applicable seller, in consideration for the transfer by such seller to the       Borrower of any item of Collateral or any attempt by any Person to void or otherwise avoid any       such  transfer  under  any  statutory  provision  or  common  law  or  equitable  action,  including,       without limitation, any provision of the Bankruptcy Code; (xi) the failure of the Borrower, the       Servicer or any of their respective agents or representatives to remit to the Collection Account,       within  one  Business  Day  of  receipt,  Collections  on  the  Collateral  Loans  remitted  to  the       Borrower, the Servicer or any such agent or representative as provided in this Agreement; and       (xii) any Default or Event of Default; provided, that (x) the Borrower shall not be liable (A) for       any Liability or losses arising due to the deterioration in the credit quality or market value of the       Collateral  Loans  or  other  Collateral  hereunder to  the  extent  that  such  credit  quality  or market       value was not misrepresented in any material respect by the Borrower or any of its Affiliates or       (B) to the extent any such Liability is found in a final, non-appealable judgment by a court of       competent  jurisdiction  to  have  resulted  solely  from  such  Indemnified  Party’s  fraud,  bad  faith,       gross negligence or willful misconduct; provided, further, this Section 15.04(b) shall not apply       with  respect  to  taxes,  levies,  imposts,  deductions,  charges  and  withholdings,  and  all  liabilities       (including penalties, interest and expenses) with respect thereto, or additional sums described in       Sections  2.09,  2.16  or  15.03,  other  than  any  taxes,  levies,  imposts,  deductions,  charges  and       withholdings that represent Liabilities arising from a claim under any Section of this Agreement       other than Sections 2.09, 2.16 or 15.03.              (c)   Without limiting any other rights that any such Person may have hereunder or       under  Applicable  Law,  the  Servicer  hereby  agrees  to  indemnify  each  Indemnified  Party,  on       demand,  from  and  against  any and  all  Liabilities (calculated  without  duplication  of  Liabilities       paid by the Borrower pursuant to Section 15.04(b) above) awarded against or incurred by any       such  Indemnified  Party  by  reason  of  any  acts,  omissions  or  alleged  acts  or  omissions  of  the                                      -121- 34881204v6 110062879

 

      Servicer  in  violation  of  the  Facility  Documents,  including,  but  not  limited  to  (i)  any       representation  or  warranty  made  by  the  Servicer  under  or  in  connection  with  any  Facility       Documents  to  which  it  is  a  party,  any  Monthly  Report  or  any  other  information  or  report       delivered by or on behalf of the Servicer pursuant hereto, which shall have been false, incorrect       or misleading in any material respect when made or deemed made, (ii) the failure by the Servicer       to comply with any Applicable Law, (iii) the failure of the Servicer to comply with its duties or       obligations in accordance with this Agreement or (iv) any litigation, proceedings or investigation       against the Servicer, excluding, however, (a) Losses to the extent resulting from gross negligence       or willful misconduct on the part of such Indemnified Party, and (b) Losses constituting Federal,       state or local income or franchise taxes or any other Tax imposed on or measured by income (or       any  interest  or  penalties  with  respect  thereto  or  arising  from  a  failure  to  comply  therewith)       required to be paid by such Indemnified Party in connection herewith to any taxing authority.       The  provisions  of  this  indemnity  shall  run  directly  to  and  be  enforceable  by  an  injured  party       subject to the limitations hereof.        Section 15.05. Execution in Counterparts.  This Agreement may be executed in any number of counterparts and by different parties hereto on separate counterparts, each of which counterparts, when so  executed  and  delivered,  shall  be  deemed  to  be  an  original  and  all  of  which  counterparts,  taken together, shall constitute but one and the same Agreement.  Delivery of an executed signature page of this Agreement by facsimile or other electronic transmission shall be effective as delivery of a manually executed counterpart hereof.        Section 15.06. Assignability.              (a)   Each Lender may, with the written consent of the Administrative Agent and the       Borrower (in each case not to be unreasonably withheld or delayed), assign to an assignee all or a       portion  of  its  rights  and  obligations  under  this  Agreement  (including  all  or  a  portion  of  its       outstanding  Advances  or  interests  therein  owned  by  it,  together  with  ratable  portions  of  its       Commitment);  provided  that  the  Borrower  shall  be  deemed  to  have  consented  to  any  such       assignment unless it shall object thereto by written notice to the Administrative Agent within five       (5) Business Days after having received notice thereof; provided further that:                    (i)   the Borrower’s consent to any such assignment shall not be required if             the assignee is a Permitted Assignee with respect to such assignor;                    (ii)  the Borrower’s consent to any such assignment pursuant to this Section             15.06(a)  shall  not  be  required  if  an  Event  of  Default  shall  have  occurred  and  is             continuing (and not been waived by the Lenders in accordance with Section 15.01);                    (iii) no assignment shall be made to a natural person;                    (iv)  no assignment shall be made to (x) a Borrower or any of its Affiliates or             Subsidiaries or (y) any Defaulting Lender or any of its Subsidiaries, or any Person who,             upon  becoming  a  Lender  hereunder,  would  constitute  any  of  the  foregoing  Persons             described in this clause (y);                    (v)   except  in  the  case  of  an  assignment  to  a  Lender  or  an  Affiliate  of  a             Lender or a Permitted Assignee or an assignment of the entire remaining amount of the             assigning  Lender’s  Commitment  or  Advances  of  any  class,  the  amount  of  the             Commitment  or  Advances  of  the  assigning  Lender  subject  to  each  such  assignment             (determined  as  of  the  date  the  Assignment  and  Acceptance  with  respect  to  such                                      -122- 34881204v6 110062879

 

            assignment is delivered to the Administrative Agent) shall not be less than $5,000,000             unless each of the Borrower and the Administrative Agent otherwise consent, provided             that  no  such  consent  of  the  Borrower  shall  be  required  if  an  Event  of  Default  has             occurred and is continuing;                    (vi)  each  partial  assignment  shall  be  made  as  an  assignment  of  a             proportionate  part  of  all  the  assigning  Lender’s  rights  and  obligations  under  this             Agreement, provided that this clause shall not be construed to prohibit the assignment of             a proportionate part of all the assigning Lender’s rights and obligations in respect of one             class of Commitments or Advances;                    (vii) the  assignee,  if  it  shall  not  be  a  Lender,  shall  deliver  to  the             Administrative Agent an Administrative Questionnaire in which the assignee designates             one or more credit contacts to whom all syndicate-level information (which may contain             material non-public information about the Borrower and its affiliates and their Related             Parties or their respective securities) will be made available and who may receive such             information  in  accordance  with  the  assignee’s  compliance  procedures  and  Applicable             Laws, including Federal and state securities laws; and                    (viii) in  connection  with  any  assignment  of  rights  and  obligations  of  any             Defaulting Lender hereunder, no such assignment shall be effective unless and until, in             addition  to  the  other  conditions  thereto  set  forth  herein,  the  parties  to  the  assignment             shall make such additional payments to the Administrative Agent in an aggregate amount             sufficient,  upon  distribution  thereof  as  appropriate  (which  may  be  outright  payment,             purchases by the assignee of participations or subparticipations, or other compensating             actions,  including  funding,  with  the  consent  of  the  Borrower  and  the  Administrative             Agent, the applicable pro rata share of Advances previously requested but not funded by             the  Defaulting  Lender,  to  each  of  which  the  applicable  assignee  and  assignor  hereby             irrevocably consent), to (x) pay and satisfy in full all payment liabilities then owed by             such  Defaulting  Lender  to  the  Administrative  Agent  and  each  Lender  hereunder  (and             interest accrued thereon), and (y) acquire (and fund as appropriate) its full pro rata share             of all Advances in accordance with its Percentage.  Notwithstanding the foregoing, in the             event that any assignment of rights and obligations of any Defaulting Lender hereunder             shall become effective under applicable law without compliance with the provisions of             this  paragraph,  then  the  assignee  of  such  interest  shall  be  deemed  to  be  a  Defaulting             Lender for all purposes of this Agreement until such compliance occurs.              The  parties  to  each  such  assignment  shall  execute  and  deliver  to  the  Administrative       Agent an Assignment and Acceptance and the applicable tax forms required by Section 15.03(g)       and (j), together with a processing and recordation fee of $3,500, such fee to be paid by either the       assigning Lender or the assignee Lender or shared between such Lenders.  Notwithstanding any       other  provision  of  this  Section  15.06,  any  Lender  may  at  any  time  pledge  or  grant  a  security       interest in all or any portion of its rights (including rights to payment of principal and interest)       under  this  Agreement  to  secure  obligations  of  such  Lender,  including  any  pledge  or  security       interest granted to a Federal Reserve Bank, without notice to or consent of the Borrower or the       Administrative Agent; provided that no such pledge or grant of a security interest shall release       such Lender from any of its obligations hereunder or substitute any such pledgee or grantee for       such Lender as a party hereto.              (b)   The Borrower may not assign its rights or obligations hereunder or any interest       herein without the prior written consent of the Administrative Agent and the Lenders.                                      -123- 34881204v6 110062879

 

            (c)   (i) Any Lender may, without the consent of the Borrower, sell participations to       one or more banks or other entities (a “Participant”) in all or a portion of such Lender’s rights       and  obligations  under  this  Agreement;  provided  that  (A)  such  Lender’s  obligations  under  this       Agreement shall remain unchanged, (B) such Lender shall remain solely responsible to the other       parties  hereto  for  the  performance  of  such  obligations, (C) such  Borrower,  the  Administrative       Agent  and  the  other  Lenders  shall  continue  to  deal  solely  and  directly  with  such  Lender  in       connection with such Lender’s rights and obligations under this Agreement, (D) each Participant       shall have agreed to be bound by this Section 15.06(c) and Sections 14.09(b) and 14.15 and (E)       each  Participant  shall  have  a  short  term  rating  of  at  least  “A-2/P2”  by  S&P  and  Moody’s,       respectively.  Any agreement pursuant to which a Lender sells such a participation shall provide       that  such  Lender  shall  retain  the  sole  right  to  enforce  this  Agreement  and  to  approve  any       amendment,  modification  or  waiver  of  any  provision  of  this  Agreement;  provided  that  such       agreement may provide that such Lender will not, without the consent of the Participant, agree to       any Fundamental Amendment.  Each Lender that sells a participation agrees, at the Borrower’s       request and expense, to use reasonable efforts to cooperate with the Borrower to effectuate the       provisions of Section 15.06(f) with respect to any Participant. Sections 2.09, 2.16 and 15.03 shall       apply  to  each  Participant  as  if  it  were  a  Lender  and  had  acquired  its  interest  by  assignment       pursuant to  paragraph  (a)  of  this Section;  provided that  no  Participant  shall  be entitled to any       amount under Sections 2.09, 2.16 or 15.03 which is greater than the amount the related Lender       would have been entitled to under any such Sections or provisions if the applicable participation       had not occurred.              (d)   In the event that any Lender sells participations in any portion of its rights and       obligations  hereunder,  such  Lender  as  nonfiduciary  agent  for  the  Borrower  shall  maintain  a       register  on  which  it  enters  the  name  of  all  participants  in  the  Advances  held  by  it  and  the       principal amount (and stated interest thereon) of the portion of the Advance which is the subject       of  the  participation  (the “Participant  Register”);  provided  that  no  Lender  shall  have  any       obligation to disclose all or any portion of the Participant Register to any Person (including the       identity  of  any  participant  or  any  information  relating  to  a  participant’s  interest  in  any       Commitments, Advances or its other obligations under this Agreement) except to the extent that       such disclosure is necessary to establish that such Commitment, Advance or other obligation is in       registered  form  under  Section  5f.103-1(c)  of  the  United  States  Treasury  Regulations.   An       Advance may be participated in whole or in part only by registration of such participation on the       Participant Register.  Any participation of such Advance may be effected only by the registration       of such participation on the Participant Register.  The entries in the Participant Register shall be       conclusive  absent  manifest  error,  and  such  Lender  shall  treat  each  Person  whose  name  is       recorded in the Participant Register as the owner of such participation for all purposes of this       Agreement  notwithstanding  any  notice  to  the  contrary.   For  the  avoidance  of  doubt,  the       Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for       maintaining a Participant Register.              (e)   The Administrative Agent, on behalf of and acting solely for this purpose as the       nonfiduciary agent of the Borrower, shall maintain at its address specified in Section 15.02 or       such other address as the Administrative Agent shall designate in writing to the Lenders, a copy       of  this  Agreement,  the  Administrative  Questionnaire  and  each  signature  page  hereto  and  each       Assignment and Acceptance delivered to and accepted by it and a register (the “Register”) for the       recordation of the names and addresses of the Lenders and the aggregate outstanding principal       amount of the outstanding Advances maintained by each Lender under this Agreement (and any       stated  interest  thereon).   The  entries  in  the  Register  shall  be  conclusive  and  binding  for  all       purposes,  absent  manifest  error,  and  the  Borrower,  the  Administrative  Agent  and  the  Lenders       may  treat  each  Person  whose  name  is  recorded  in  the  Register  as  a  Lender  hereunder  for  all                                      -124- 34881204v6 110062879

 

      purposes of this Agreement.  The Register shall be available for inspection by the Borrower or       any  Lender  at  any  reasonable  time  and  from  time  to  time  upon  reasonable  prior  notice.   An       Advance may be assigned or sold in whole or in part only by registration of such assignment or       sale on the Register and in accordance with this Section 15.06.              (f)   Notwithstanding anything to the contrary set forth herein or in any other Facility       Document,  each  Lender  hereunder,  and  each  Participant,  must  at  all  times  be  a  “qualified       purchaser” as defined in the Investment Company Act (a “Qualified Purchaser”) and a “qualified       institutional buyer” as defined in Rule 144A under the Securities Act (a “QIB”).  Each Lender       represents to the Borrower, (i) on the date that it becomes a party to this Agreement (whether by       being a signatory hereto or by entering into an Assignment and Acceptance) and (ii) on each date       on  which  it  makes  an  Advance  hereunder,  that  it  is  a  Qualified  Purchaser  and  a  QIB.   Each       Lender further agrees that it shall not assign, or grant any participations in, any of its Advances       or its Commitment to any Person unless such Person is a Qualified Purchaser and a QIB.              (g)   Replacement  of  Lenders.   If  a  Lender  (i)  is  a  Defaulting  Lender,  (ii)  is  a       Non-Consenting Lender, or (iii) requests payment of amounts payable pursuant to Section 2.09       or 15.03 and, in each case, such Lender has declined or is unable to designate a different lending       office in accordance with Section 2.09(c) or Section 15.03(h), respectively, then, in addition to       any other rights and remedies that any Person may have, the Borrower may, at its sole expense       and effort, by notice to the applicable Lender within 180 days after such event (with a copy of       such notice concurrently delivered to the Administrative Agent), require such Lender to assign,       without recourse (in accordance with and subject to the restrictions contained in, and consents       required by, Section 15.06), all of its interests, rights (other than its existing rights to payments       pursuant to Section 2.09 or Section 15.03) and obligations under the Facility Documents to one       or  more  Eligible  Assignees  specified  by  the  Borrower  within  twenty  (20)  days  after  the       Borrower’s  notice,  provided,  however,  that  (A)  such  assignment  does  not  conflict  with       Applicable Law, (B) in the case of any such assignment resulting from a claim for compensation       under Section 2.09 or 15.03, such assignment will result in a reduction in such compensation or       payments thereafter, and (C) in the case of any assignment resulting from a Lender becoming a       Non-Consenting  Lender,  the  applicable  assignee  shall  have  consented  to  the  applicable       amendment, waiver or consent.  A Lender shall not be required to make any such assignment or       delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances       entitling  the  Borrower  to  require  such  assignment  and  delegation  cease  to  apply.   The       Administrative Agent is irrevocably appointed as attorney-in-fact to execute any such assignment       if any member of the affected Lender fails to execute same.  The affected Lender shall be entitled       to receive, in cash, concurrently with such assignment, all amounts owed to it under the Facility       Documents, including all principal, interest and fees through the date of assignment (including       any  amounts  under  Section  2.16  as  if  the  Advances  owing  to  it  were  prepaid  rather  than       assigned).              (h)   Certain Additional Payments.  In connection with any assignment of rights and       obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and       until, in  addition  to  the other conditions  thereto  set forth  herein, the parties to the assignment       shall  make  such  additional  payments  to  the  Administrative  Agent  in  an  aggregate  amount       sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases       by the assignee of participations or subparticipations, or other compensating actions, including       funding, with the consent of the Borrower and the Administrative Agent, the applicable pro rata       share  of  Advances  previously  requested  but  not  funded  by  the  Defaulting  Lender,  to  each  of       which the applicable assignee and assignor hereby irrevocably consent), to (x) pay and satisfy in       full all payment liabilities then owed by such Defaulting Lender to the Administrative Agent and                                      -125- 34881204v6 110062879

 

      each  other  Lender  hereunder  (and  interest  accrued  thereon),  and  (y)  acquire  (and  fund  as       appropriate)  its  full  pro  rata  share  of  all  Advances  in  accordance  with  its  Percentage.       Notwithstanding the foregoing, in the event that any assignment of rights and obligations of any       Defaulting Lender hereunder shall become effective under Applicable Law without compliance       with the provisions of this paragraph, then the assignee of such interest shall be deemed to be a       Defaulting  Lender  for  all  purposes  of  this  Agreement  until  such  compliance  occurs.   No       assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party       hereunder arising from that Lender’s having been a Defaulting Lender.        Section 15.07. Governing  Law.   THIS  AGREEMENT  AND  THE  RIGHTS  AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED  IN  ACCORDANCE  WITH  THE  LAW  OF  THE  STATE  OF  NEW  YORK,  EXCEPT THE  CONFLICT  OF  LAW  PRINCIPLES  THEREOF  WHICH  WOULD  HAVE  THE  EFFECT  OF APPLYING THE LAW OF ANY OTHER JURISDICTION.        Section 15.08. Severability of Provisions.  Any provision of this Agreement which is prohibited or  unenforceable  in  any  jurisdiction  shall,  as  to  such  jurisdiction,  be  ineffective  to  the  extent  of  such prohibition  or  unenforceability  without  invalidating  the  remaining  provisions  hereof  or  affecting  the validity or enforceability of such provision in any other jurisdiction.        Section 15.09. Confidentiality.  Each Secured Party agrees to keep confidential all non-public information provided to it by the Borrower or the Servicer with respect to the Borrower, its Affiliates, the Collateral  or  any  other  information  furnished  to  any Secured Party pursuant to this Agreement or any other Facility Document (collectively, the “Borrower Information”); provided that nothing herein shall prevent  any  Secured  Party  from  disclosing  any  Borrower  Information  (a)  in  connection  with  this Agreement and the other Facility Documents and not for any other purpose, (x) to any Secured Party or any Affiliate of a Secured Party, or (y) any of their respective Affiliates, employees, directors, agents, attorneys,  accountants  and  other  professional  advisors  (collectively,  the  “Secured  Party Representatives”),  it  being  understood  that  the  Persons  to  whom  such  disclosure  is  made  will  be informed of the confidential nature of such Borrower Information, (b) subject to an agreement to comply with the provisions of this Section (or other provisions at least as restrictive as this Section), (i) to use the Borrower Information only in connection with this Agreement and the other Facility Documents and not for any other purpose, (ii) to any actual or bona fide prospective Permitted Assignees and Participants in any of the Secured Parties’ interests under or in connection with this Agreement and (iii) as reasonably required by any direct or indirect contractual counterparties or professional advisors thereto, to any swap or derivative transaction relating to the Borrower and its obligations, (c) as required by Applicable Law to be disclosed to any Governmental Authority purporting to have jurisdiction over any Secured Party or any of its Affiliates or any Secured Party Representative, (d) in response to any order of any court or other  Governmental  Authority  or  as  may  otherwise  be  required  to  be  disclosed  pursuant  to  any Applicable  Law,  (e)  that  is  a  matter  of  general  public  knowledge  or  that  has  heretofore  been  made available to the public by any Person other than any Secured Party or any Secured Party Representative, (f) in connection with the exercise of any remedy hereunder or under any other Facility Document, (g) with the written consent of the Borrower, (h) that was in its possession or known by such Secured Party or  any  of  its  Affiliates  without  restriction  prior  to  receipt  from  the  Borrower,  (i)  that  was  rightfully disclosed  to  such  Secured  Party  by  a  third  party  not  known  by  such  Secured  Party  to  be  under  any obligation of confidentiality to the Borrower or (j) that was independently developed by such Secured Party or any of its Affiliates without any use of Borrower Information.  In addition, each Secured Party may disclose the existence of this Agreement and the Facility Amount available hereunder to market data collectors, similar service providers to the lending industry and service providers to the Secured Parties in  connection  with  the  administration  and  management  of  this  Agreement  and  the  other  Facility Documents.                                      -126- 34881204v6 110062879

 

      Section 15.10. Merger.   This  Agreement  and  the  other  Facility  Documents  executed  by  the Administrative  Agent  or  the  Lenders  taken  as  a  whole  incorporate  the  entire  agreement  between  the parties thereto concerning the subject matter thereof and such Facility Documents supersede any prior agreements among the parties relating to the subject matter thereof.        Section 15.11. Survival.   All  representations  and  warranties  made  hereunder,  in  the  other Facility Documents and in any certificate delivered pursuant hereto or thereto or in connection herewith or therewith shall survive the execution and delivery of this Agreement and the making of the Advances hereunder.  The agreements in Sections 2.09, 2.12, 2.16, 15.03, 15.04, 15.09, 15.16, and 15.18 and this Section 15.11 shall survive the termination of this Agreement in whole or in part and the payment in full of the principal of and interest on the Advances.        Section 15.12. Submission to Jurisdiction; Waivers; Service of Process; Etc.  Each party hereto hereby irrevocably and unconditionally:              (a)   submits for itself and its property in any legal action or proceeding relating to       this  Agreement  or  the  other  Facility  Documents  to  which  it  is  a  party,  or  for  recognition  and       enforcement of any judgment in respect thereof, to the exclusive general jurisdiction of the courts       of New York County in the State of New York, the courts of the United States of America for the       Southern District of New York, and the appellate courts of any of them;              (b)   consents  that  any  such  action  or  proceeding  may  be  brought  in  any  court       described in Section 15.12(a) and waives to the fullest extent permitted by Applicable Law any       objection that it may now or hereafter have to the venue of any such action or proceeding in any       such court or that such action or proceeding was brought in an inconvenient court and agrees not       to plead or claim the same;              (c)   agrees that service of process in any such action or proceeding may be effected       by  mailing  a  copy  thereof by  registered  or  certified  mail (or  any  substantially  similar form  of       mail),  postage  prepaid,  to  such party  at  its  address set  forth  in  Section  15.02  or  at  such  other       address as may be permitted thereunder;              (d)   agrees  that  nothing  herein  shall  affect  the  right  to  effect  service  of  process,       summons, notices and documents in any other manner permitted by applicable law; and              (e)   waives, to the maximum extent not prohibited by law, any right it may have to       claim or recover in any legal action or proceeding against any Secured Party arising out of or       relating  to  this  Agreement  or  any  other  Facility  Document  any  special,  exemplary,  indirect,       punitive or consequential damages (as opposed to direct or actual damages) (whether or not the       claim therefor is based on contract, tort or duty imposed by any applicable legal requirement).        Section 15.13. Waiver  of  Jury  Trial.   Each  of  the  parties  hereto  hereby  irrevocably  and unconditionally waives trial by jury in any legal action or proceeding relating to this Agreement or any other Facility Document or for any counterclaim therein or relating thereto.        Section 15.14. Third  Party  Beneficiary.  The  Custodian  is  an  express  third  party  beneficiary hereunder        Section 15.15. Waiver  of  Setoff.   Each  of  the  Borrower  and  the  Servicer  hereby  waives  any right of setoff it may have or to which it may be entitled under this Agreement from time to time against any Lender or its assets.                                      -127- 34881204v6 110062879

 

      Section 15.16. PATRIOT Act, Beneficial Ownership Regulation Notice.  Each Lender and each of the Administrative Agent and the Backup Servicer hereby notifies the Borrower that pursuant to the requirements  of  the  USA  PATRIOT  Act  (Title  III  of Pub.  L.  107-56  (signed  into  law  on  October 26, 2001)) (the “PATRIOT Act”), it is required to obtain, verify and record information that identifies the Borrower,  which  information includes the name and address of the Borrower, a Beneficial Ownership Certification, and other information that will allow the Lenders to identify the Borrower in accordance with the PATRIOT Act and the Beneficial Ownership Regulation.  The Borrower shall provide to the extent commercially reasonable, such information and take such actions as are reasonably requested by any  Lender  in  order  to  assist  such  Lender  in  maintaining  compliance  with  the  PATRIOT  Act  and the Beneficial Ownership Regulation.        Section 15.17. Legal Holidays.  In the event that the date of any prepayment, any Payment Date or the Final Maturity Date shall not be a Business Day, then notwithstanding any other provision of this Agreement or any Facility Document, payment need not be made on such date, but may be made on the next succeeding Business Day with the same force and effect as if made on the nominal date of any date of  prepayment,  any  Payment  Date  or  the  Final  Maturity  Date,  as  the  case  may  be,  and  interest  shall accrue on such payment for the period from and after any such nominal date to but excluding such next succeeding Business Day.        Section 15.18. Non-Petition.              (a)   The Servicer, each Lender, and the Backup Servicer each hereby agrees not to       institute against, or join, cooperate with or encourage any other Person in instituting against, the       Borrower any bankruptcy, reorganization, receivership, arrangement, insolvency, moratorium or       liquidation  proceedings  or other proceedings  under federal or state bankruptcy or similar laws       until at least one year and one day, or if longer the applicable preference period then in effect       plus one day, after the payment in full of the Advances and the termination of all Commitments.              (b)   The provisions of this Section 15.18 are a material inducement for the Secured       Parties  to  enter  into  this  Agreement  and  the  transactions  contemplated  hereby  and  are  an       essential term hereof.  The parties hereby agree that monetary damages are not adequate for a       breach of the provisions of this Section 15.18 and the Administrative Agent may seek and obtain       specific  performance  of  such  provisions  (including  injunctive  relief),  including,  without       limitation, in any bankruptcy, reorganization, arrangement, winding up, insolvency, moratorium,       winding up or liquidation proceedings, or other proceedings under United States federal or state       bankruptcy  laws  or  any  similar  laws.   The  provisions  of  this  Section  15.18  shall  survive  the       termination of this Agreement.        Section 15.19. No Fiduciary Duty.  The Administrative Agent, each Lender and their Affiliates (collectively,  solely  for  purposes  of  this  paragraph,  the  “Lenders”),  may  have  economic  interests  that conflict  with  those  of  the  Credit  Parties,  their  stockholders  and/or  their  affiliates.   The  Borrower,  the Servicer and the Originator (collectively, solely for purposes of this paragraph, the “Credit Parties”) each agree that nothing in the Facility Documents or otherwise will be deemed to create an advisory, fiduciary or agency relationship or fiduciary or other implied duty between any Lender, on the one hand, and such Credit Party, its stockholders or its affiliates, on the other.  The Credit Parties acknowledge and agree that  (i)  the  transactions  contemplated  by  the  Facility  Documents  (including  the  exercise  of  rights  and remedies hereunder and thereunder) are arm’s-length commercial transactions between the Lenders, on the one hand, and the Credit Parties, on the other, and (ii) in connection therewith and with the process leading thereto, (x) no Lender has assumed an advisory or fiduciary responsibility in favor of any Credit Party,  its  stockholders  or  its  affiliates  with  respect  to  the  transactions  contemplated  hereby  (or  the exercise of rights or remedies with respect thereto) or the process leading thereto (irrespective of whether                                      -128- 34881204v6 110062879

 

any  Lender  has  advised,  is  currently  advising  or  will  advise  any  Credit  Party,  its  stockholders  or  its Affiliates on other matters) or any other obligation to any Credit Party except the obligations expressly set forth in the Facility Documents and (y) each Lender is acting solely as principal and not as the agent or  fiduciary  of  any  Credit  Party,  its  management,  stockholders,  creditors  or  any  other  Person.   Each Credit  Party acknowledges and agrees that it has consulted its own legal and financial advisors to the extent  it  deemed  appropriate  and  that  it is  responsible  for  making its own independent judgment with respect  to  such  transactions and  the  process leading thereto.  Each Credit Party agrees that it will not claim that  any  Lender  has  rendered advisory  services  of any nature or respect, or owes a fiduciary or similar duty to such Credit Party, in connection with such transaction or the process leading thereto.        Section 15.20. Sharing of Payments by Lenders.  If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Advances or other obligations hereunder resulting in such Lender receiving payment of a proportion of the aggregate amount of its Advances and accrued interest thereon or other such obligations greater than its pro rata share thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the Advances and such other obligations of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Advances and other amounts owing them; provided that:              (a)   if  any  such participations are purchased and all or any portion of the payment       giving  rise  thereto  is  recovered,  such  participations  shall  be  rescinded  and  the  purchase  price       restored to the extent of such recovery, without interest; and              (b)   the provisions of this Section shall not be construed to apply to (x) any payment       made by the Borrower pursuant to and in accordance with the express terms of this Agreement       (including the application of funds arising from the existence of a Defaulting Lender), or (y) any       payment obtained by a Lender as consideration for the assignment of or sale of a participation in       any of its Advances to any assignee or participant.  The  Borrower  consents  to  the  foregoing  and  agrees,  to  the  extent  it  may  effectively  do  so  under applicable  law,  that  any  Lender  acquiring  a  participation  pursuant  to the  foregoing arrangements  may exercise against the Borrower rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation.        Section 15.21. Acknowledgment  and  Consent  to  Bail-In  of  EEA  Financial  Institution. Notwithstanding  anything  to  the  contrary  in  any  Facility  Document  or  in  any  other  agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of  any  Lender  that  is an  EEA Financial Institution arising under any Facility Document, to the extent such  liability  is  unsecured,  may  be  subject  to  the  Write-Down  and  Conversion  Powers  of  an  EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:               (a)   the  application  of  any  Write-Down  and  Conversion  Powers  by  an  EEA       Resolution Authority to any such liabilities arising hereunder which may be payable to it by any       Lender that is an EEA Financial Institution; and              (b)   the effects of any Bail-in Action on any such liability, including, if applicable; (i)        a reduction in full or in part or cancellation of any such liability; (ii) a conversion of all, or a       portion  of,  such  liability into shares or other instruments of ownership in such EEA Financial       Institution,  its parent  undertaking,  or a bridge institution that may be issued to it or otherwise                                      -129- 34881204v6 110062879

 

      conferred on it, and that such shares or other instruments of ownership will be accepted by it in       lieu of any rights with respect to any such liability under this Agreement or any other Facility       Document; or (iii) the variation of the terms of such liability in connection with the exercise of       the write-down and conversion powers of any EEA Resolution Authority.        Section 15.22. Acknowledgement Regarding Any Supported QFCs.               (a)   To the extent that the Facility Documents provide support, through a guaranty,       mortgage, or otherwise, for any Hedging Agreement or any other agreement or instrument that is       a  QFC  (such  support, “QFC Credit  Support”,  and  each  such  QFC,  a “Supported  QFC”),  the       parties  acknowledge  and  agree  as  follows  with  respect  to  the  resolution  power  of  the  Federal       Deposit  Insurance  Corporation  under  the  Federal  Deposit  Insurance  Act  and  Title  II  of  the       Dodd-Frank  Wall  Street  Reform  and  Consumer  Protection  Act  (together  with  the  regulations       promulgated  thereunder,  the “U.S. Special Resolution Regimes”) in respect of such Supported       QFC  and  QFC  Credit  Support  (with  the  provisions  below  applicable  notwithstanding  that  the       Facility Documents and any Supported QFC may in fact be stated to be governed by the laws of       the State of New York and/or of the United States or any other state of the United States).              (b)   In the event a Covered Entity that is party to a Supported QFC (each, a “Covered       Party”) becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of       such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation       in  or  under  such  Supported  QFC  and  such  QFC  Credit  Support,  and  any  rights  in  property       securing  such  Supported  QFC  or  such  QFC  Credit  Support)  from  such  Covered  Party  will  be       effective to the same extent as the transfer would be effective under the U.S. Special Resolution       Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation       and rights in property) were governed by the laws of the United States or a state of the United       States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject       to  a  proceeding  under  a  U.S.  Special  Resolution  Regime,  Default  Rights  under  the  Facility       Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that       may be exercised against such Covered Party are permitted to be exercised to no greater extent       than  such  Default  Rights  could  be  exercised  under  the  U.S.  Special  Resolution  Regime  if  the       Supported QFC and the Facility Documents were governed by the laws of the United States or a       state of the United States. Without limitation of the foregoing, it is understood and agreed that       rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the       rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.        Section 15.23. Lender  ERISA  Representation  and  Warranty.  Each  Lender  represents  and warrants as of the date hereof to Administrative Agent and its Affiliates, and not, for the avoidance of doubt, for the benefit of Borrower or any Guarantor, that (a) such Lender is not and will not be (i) an “employee  benefit  plan,”  as  defined  in  Section  3(3)  of  ERISA  or  (ii)  a “plan”  within  the  meaning  of Section 4975(e) of the Code; (b) the assets of such Lender do not and will not constitute “plan assets” within  the  meaning  of  the  United  States  Department  of  Labor  Regulations  set  forth  in  29  C.F.R. §2510.3-101,  as  modified  by  Section  3(42)  of  ERISA;  (c)  such  Lender  is  not  and  will  not  be  a “governmental plan” within the meaning of Section 3(32) of ERISA; and (d) transactions by or with such Lender  are  not  and  will  not  be  subject  to  federal,  state  or  local  statutes  applicable  to  such  Lender regulating investments of fiduciaries with respect to governmental plans.                 [Remainder of Page Intentionally Blank; Signature Pages to Follow]                                       -130- 34881204v6 110062879

 

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers thereunto duly authorized, as of the date first above written.                                         NBL SPV I, LLC, as Borrower                                          By:___________________________________                                            Name:                                            Title:                                          SMALL BUSINESS LENDING, LLC, as Servicer                                          By:___________________________________                                            Name:                                            Title:                                        S-  1 110062879

 

                                       CAPITAL ONE, N.A., as Administrative Agent                                          By: __________________________________                                            Name: Brian Talty                                            Title:   Senior Vice President                                         CAPITAL ONE, N.A., as Lender                                          By: __________________________________                                            Name: Brian Talty                                            Title:   Senior Vice President                                        S-  2 110062879

 

                                       U.S. BANK NATIONAL ASSOCIATION, as                                         Backup Servicer                                          By: __________________________________                                            Name:                                            Title:                                        S-  3 110062879Document

Exhibit 4.19 
Supplemental Indenture
This Supplemental Indenture (this “Supplemental Indenture”), dated as of October 9, 2020, among Banner NewCo LLC and SVCN 3 LLC, each a limited liability company formed and existing under the laws of the State of Delaware (together, the “Additional Subsidiary Guarantors”), each a subsidiary of Service Properties Trust, a real estate investment trust organized and existing under the laws of the State of Maryland (the “Company”), the Company and U.S. Bank National Association, a national banking organization organized and existing under the laws of the United States (the “Trustee”).
W I T N E S S E T H
WHEREAS, the Company (then known as Hospitality Properties Trust) and the Trustee are parties to an Indenture (the “Base Indenture”), dated as of February 3, 2016 (as supplemented by that certain Ninth Supplemental Indenture (the “Ninth Supplemental Indenture”), dated as of June 17, 2020, among the Company, the Initial Subsidiary Guarantors party thereto and the Trustee, providing for the issuance of the Company’s 7.50% Senior Notes due 2025 (the “Notes”), as supplemented by that certain Supplemental Indenture, dated as of July 15, 2020, among the Company, the Subsidiary Guarantors party thereto and the Trustee, and as from time to time hereafter further amended, supplemented or otherwise modified so far as it applies to the Notes, the “Indenture”);
WHEREAS, the Indenture provides that under certain circumstances the Additional Subsidiary Guarantors shall execute and deliver to the Trustee a supplemental indenture pursuant to which the Additional Subsidiary Guarantors will fully and unconditionally guarantee the Notes, jointly and severally with all of the other Subsidiary Guarantors, on the terms and conditions set forth herein;
WHEREAS, all acts and requirements necessary to make this Supplemental Indenture the legal, valid and binding obligation of the Company, each Additional Subsidiary Guarantor and the Trustee have been done; and
WHEREAS, pursuant to Section 901 of the Base Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture.
NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Company, the Additional Subsidiary Guarantors and the Trustee mutually covenant and agree as follows:
1.Capitalized Terms.  Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.
2.Agreement to Guarantee.  Each Additional Subsidiary Guarantor hereby agrees that its obligations to the Holders and the Trustee pursuant to the Subsidiary Guarantee shall be 

as expressly set forth in Article 6 of the Ninth Supplemental Indenture and in such other provisions of the Indenture as are applicable to the Subsidiary Guarantors (including, without limitation, Article 3 of the Ninth Supplemental Indenture), and reference is made to the Indenture for the precise terms of this Supplemental Indenture. The terms of Article 6 of the Ninth Supplemental Indenture and such other provisions of the Indenture (including, without limitation, Article 3 of the Ninth Supplemental Indenture) as are applicable to the Subsidiary Guarantors are incorporated herein by reference.
3.THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
4.Counterparts.  The parties may sign any number of copies of this Supplemental Indenture.  Each signed copy shall be an original, but all of them together represent the same agreement.
5.Effect of Headings.  The Section headings herein are for convenience only and shall not affect the construction hereof.
6.The Trustee.  The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by the Additional Subsidiary Guarantors and the Company.
[Remainder of page intentionally left blank.]

2

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

SERVICE PROPERTIES TRUST

By:/s/ Brian E. Donley                
    Name: Brian E. Donley
    Title: Chief Financial Officer and Treasurer

ADDITIONAL SUBSIDIARY GUARANTORS:

BANNER NEWCO LLC

By:/s/ Brian E. Donley                
    Name: Brian E. Donley
    Title: Chief Financial Officer and Treasurer

SVCN 3 LLC

By:/s/ Brian E. Donley                
    Name: Brian E. Donley
    Title: Chief Financial Officer and Treasurer

    
 [Signature Page: October 2020 Supplemental Indenture for 7.50% Senior Notes due 2025] 

TRUSTEE:

U.S. BANK, NATIONAL ASSOCIATION, as Trustee 

By:/s/ David W. Doucette                
Name: David W. Doucette
Title: Vice President 
    
    
 [Signature Page: October 2020 Supplemental Indenture for 7.50% Senior Notes due 2025]

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