Document:

Document

EXHIBIT 10.2

			
	

	Dated 30 April 2020

	

BRAKE BROS LIMITED
as Issuer
 and
BARCLAYS BANK PLC
as Arranger
and
BARCLAYS BANK PLC
as Dealer

DEALER AGREEMENT
relating to a 
£600,000,000 Commercial Paper Programme for the purpose of
the Joint HM Treasury and Bank of England Covid Corporate Financing Facility 

	 

	
	Ref: EXM/AA
	
	Linklaters LLP
	

Table of Contents
Contents          Page
						
	1 Definitions and Interpretation
	1

	2 Issue
	3

	3 Representations and Warranties
	5

	4 Covenants and Agreements
	9

	5 Termination and Appointment
	14

	6 Status of the Dealers and the Arranger
	15

	7 Notices
	15

	8 Partial Invalidity
	16

	9 Remedies and Waiver
	16

	10 Counterparts
	16

	11 Rights of Third Parties
	16

	12 Governing Law
	16

	13 Enforcement
	17

	Schedule 1 Condition Precedent Documents	18

	Schedule 2 Dealer Accession Letter	19

	Schedule 3 Notification Letter for an Increase in the Maximum Amount	21

			
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This Agreement is dated 30 April 2020 and made between:
(1)BRAKE BROS LIMITED (the “Issuer”);
(2) BARCLAYS BANK PLC as arranger (the “Arranger”); and
(3)BARCLAYS BANK PLC (the “Original Dealer”).
It is agreed as follows:
1.Definitions and Interpretation 
1.1Definitions 
In this Agreement:
“Additional Dealer” means any institution appointed as a Dealer in accordance with Clause 5.2 (Appointment of Dealers);
“Bank of England” means The Governor and Company of the Bank of England and, save as the context otherwise requires, a reference to the Bank of England includes a reference to the Bank of England acting on its own behalf and as agent or custodian for CCFFL;
“Business Day” means a day (other than a Saturday or Sunday) on which banks are open for general business in London;
"CCFF Counterparty Documentation" means the Documentation as defined from time to time in the CCFF Counterparty Terms, being as at the date of this Agreement, the Market Notice, the Operating Procedures, the Application Form, the Admission Letter and any other documentation and procedures issued by the Bank of England in connection with the CCFF, each as supplemented and amended from time to time and as defined in the CCFF Counterparty Terms;
"CCFF Counterparty Terms" means the “Terms and Conditions for Counterparties in the Covid Corporate Financing Facility”, published by the Bank of England on or around 23 March 2020, as amended or supplemented from time to time;
“CCFF Eligibility Criteria” means, at any time, the eligibility criteria for participation in the CCFF contained in the CCFF Rules at that time; 
“CCFF Rules” means, at any time, the terms and conditions and operating procedures of the CCFF at such time, including the terms and conditions applicable to the eligibility of the Issuer and the Notes to participate in the CCFF; 
“CCFFL” means Covid Corporate Financing Facility Limited or any successor entity under the CCFF;
“Clearing System” means Clearstream Banking S.A. (“Clearstream, Luxembourg”) and Euroclear Bank SA/NV (“Euroclear”);
“Covid Corporate Financing Facility” or “CCFF” means the Joint HM Treasury and Bank of England Covid Corporate Financing Facility;
“Dealer” means the Original Dealer (including Barclays Bank PLC in its capacity as Arranger) or an Additional Dealer but excluding any institution whose appointment as a dealer has been terminated under Clause 5.1 (Termination) provided that where any such institution has been appointed as Dealer in relation to a particular issue of Notes or period 
			
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of time, the expression “Dealer” or “Dealers” shall only mean or include such institution in relation to such Notes or that time period;
“Deed of Covenant” means the Deed of Covenant, dated on or about the date of this Agreement, executed by the Issuer in respect of Global Notes issued under the Issuing and Paying Agency Agreement;
“Definitive Note” means a Note, security printed or otherwise, issued by the Issuer substantially in the form set out in the Issuing and Paying Agency Agreement;
“Global Note” means a Note in global form, representing an issue of commercial paper, substantially in the form set out in the Issuing and Paying Agency Agreement;
“Group” means the Issuer and its Subsidiaries;
“Information Sheet” means the summary of the Programme prepared by the Issuer in connection with the transactions contemplated by this Agreement, subject as set out in Clause 3.20 (Times for making representations and warranties) as the same may be amended, supplemented or replaced from time to time;
“Issuing and Paying Agency Agreement” means the issuing and paying agency agreement, dated on or about the date of this Agreement, between the Issuer and the Issuing and Paying Agent, providing for the issuance of and payment on the Notes;
“Issuing and Paying Agent” means Deutsche Bank AG, London Branch acting as issuing and paying agent for the Notes and any successor or additional agent appointed in accordance with the Issuing and Paying Agency Agreement;
“Maximum Amount” means £600,000,000 or such other amount as may apply in accordance with Clause 2.7 (Increase in Maximum Amount);
“Note” means a Definitive Note or a Global Note issued under the Issuing and Paying Agency Agreement to a Dealer;
“Note Transaction” means the issue by the Issuer and the subscription by a Dealer of Note(s) in accordance with Clause 2 (Issue);
“Programme” means the CCFF commercial paper programme of the Issuer established by the Programme Agreements;
“Programme Agreement” means this Agreement, any agreement for a Note Transaction, the Deed of Covenant or the Issuing and Paying Agency Agreement;
“Relevant Party” means, in respect of each Dealer, each of its affiliates and each person who controls them (within the meaning of section 15 of the Securities Act or section 20 of the United States Securities Exchange Act of 1934, as amended), and each of their respective directors, officers, employees and agents;
“Sanctions” means any economic or financial sanctions or embargoes and/or restrictive measures administered or imposed by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. State Department, any other agency of the U.S. government, the United Nations, the European Union or the United Kingdom; 
“Securities Act” has the meaning given to it at Clause 3.19;
“Sterling” and “£” denote the lawful currency of the United Kingdom; and
“Subsidiary” means:
			
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(a)an entity of which a person has direct or indirect control or owns directly or indirectly more than 50 per cent. of the voting capital or similar right of ownership and “control” for this purpose means the power to direct the management and the policies of the entity whether through the ownership of voting capital, by contract or otherwise; or
(b)an entity whose financial statements are, in accordance with applicable law and generally accepted accounting principles, consolidated with those of another person.
1.2Interpretation 
In this Agreement, unless the contrary intention appears, a reference to:
1.2.1a provision of a law is a reference to that provision as amended, extended, applied or re-enacted and includes any subordinate legislation;
1.2.2a Clause or a Schedule is a reference to a clause of or a schedule to this Agreement;
1.2.3a person includes any individual, company, corporation, unincorporated association or body (including a partnership, trust, joint venture or consortium), government, state, agency, organisation or any other entity whether or not having separate legal personality, and references to any person shall include its successors in title, permitted assigns and permitted transferees;
1.2.4assets includes present and future properties, revenues and rights of every description;
1.2.5an authorisation includes any authorisation, consent, approval, resolution, licence, exemption, filing, notarisation or registration;
1.2.6a regulation includes any regulation, rule, official directive, request or guideline (whether or not having the force of law) of any governmental, inter-governmental or supranational body, agency, department or authority; and
1.2.7any Programme Agreement or other document is a reference to that Programme Agreement or other document as amended, novated, restated, superseded or supplemented.
1.3Headings 
The index to and the headings in this Agreement are for convenience only and are to be ignored in construing this Agreement.
2Issue
2.1Appointment of Dealers
The Issuer hereby appoints the Dealer with respect to the issue of Notes under this Agreement.
2.2The Uncommitted Programme
The Issuer shall not be under any obligation to issue any Notes, and a Dealer shall not be under any obligation to subscribe for or procure the subscription for any Notes, until such 
			
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time as an agreement for a Note Transaction has been reached between the Issuer and that Dealer. The obligations of each Dealer under this Agreement are several.
2.3Issue of Notes
2.3.1Subject to the terms of this Agreement, the Issuer may issue Notes to any of the Dealers from time to time at such prices and upon such terms as the Issuer and the relevant Dealer may agree provided such Notes are resold by the relevant Dealer to CCFFL in accordance with the CCFF Rules and provided that, for so long as the CCFF Rules or the CCFF Counterparty Documentation so require, the Issuer undertakes that there shall be no more than one issue of Notes per day.
2.3.2The tenor of each Note shall not be less than seven days nor greater than 364 days, with that tenor being calculated from (and including) the issue date to (but excluding) the maturity date of that Note.
2.3.3Global Notes and Definitive Notes (if any) shall be issued in denominations of £100,000 (or integral multiples thereof), provided that the minimum aggregate amount of any series of Notes shall be £1,000,000.
2.3.4The aggregate amount of Notes outstanding at any time will not exceed the Maximum Amount.
2.4Agreements for Note Transactions
If the Issuer and any Dealer shall agree on the terms of the subscription for any Note by that Dealer (including agreement with respect to the issue date, aggregate principal or nominal amount, denomination, price, redemption basis, maturity date and discount or interest basis), then:
2.4.1the Issuer shall, on the date on which such terms are agreed and on the issue date of that Note, confirm to the Dealer in writing the eligibility of that Note under, and in accordance with, the CCFF Rules and the CCFF Counterparty Documentation;
2.4.2the Issuer shall instruct the Issuing and Paying Agent to issue that Note and deliver it in accordance with the terms of the Issuing and Paying Agency Agreement;
2.4.3the relevant Dealer shall procure the resale of the Notes to CCFFL in accordance with the CCFF Rules and pay the subscription price of such Note on the issue date by transfer of same-day funds to the Sterling account in London as the Issuing and Paying Agent shall from time to time have specified for this purpose; and
2.4.4the relevant Dealer shall notify the Issuing and Paying Agent and the Issuer of the payment and delivery instructions applicable to such Note in accordance with prevailing market practice and in sufficient time to enable the Issuing and Paying Agent to deliver such Note(s) (or make the same available for collection) on the relevant issue date.
2.5Failure to issue 
If, for any reason (including, without limitation, the failure of the relevant trade), a Note is not to be issued in accordance with a Note Transaction, the Issuer and the relevant Dealer shall immediately notify the Issuing and Paying Agent of that fact.
2.6Global Notes and Definitive Notes
			
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2.6.1Each Note issued will be represented initially by one or more Global Notes.
2.6.2Global Notes will be exchangeable in the limited circumstances provided for in the terms and conditions of the Global Notes.
2.7Increase in Maximum Amount
The Issuer may from time to time increase the Maximum Amount by: 
2.7.1giving at least 10 days’ notice by letter in substantially the form of Schedule 3 to each Dealer and the Issuing and Paying Agent; and
2.7.2delivering to each Dealer with that letter the documents referred to in that letter, in each case in form and substance acceptable to each Dealer.
3.Representations and Warranties
The Issuer (in respect of itself) makes the representations and warranties in this Clause 3 to each Dealer.
3.1Status
The Issuer is a corporation duly incorporated and validly existing under the laws of its jurisdiction of incorporation and has the power to own its assets and carry on its business as it is being conducted.
3.2Powers and authority
The Issuer has the power to enter into, perform and deliver, and has taken all necessary action to authorise the entry into, performance and delivery of, the Notes and the Programme Agreements and the transactions contemplated by those Notes and Programme Agreements.
3.3Binding obligations
The obligations expressed to be assumed by the Issuer in each of the Programme Agreements and (when the Notes have been issued and delivered under the Issuing and Paying Agency Agreement and have been paid for) the Notes are, subject to any general principles of law limiting its obligations which are specifically referred to in any legal opinion delivered under Schedule 1, legal, valid, binding and enforceable obligations.
3.4Authorisations
All authorisations required by the Issuer:
i.to enable it lawfully to enter into, exercise its rights and comply with its obligations under, the Notes and Programme Agreements; and
ii.to make the Programme Agreements and Notes admissible in evidence in its jurisdiction of incorporation,
have been obtained or effected and are in full force and effect.
3.5Non-conflict
			
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The entry into, delivery and performance by the Issuer of its obligations under the Notes and the Programme Agreements and the transactions contemplated by the Programme Agreements will not conflict with, or constitute a default under:
3.5.1the constitutional documents of the Issuer; or 
3.5.2any law or regulation applicable to the Issuer; or
3.5.3any agreement or instrument by which the Issuer or any of its assets are bound.
3.6Ranking
The obligations of the Issuer under the Programme Agreements rank, and the Notes (when issued) will rank, at least pari passu with all present and future unsecured and unsubordinated obligations of the Issuer other than obligations mandatorily preferred by law applying to companies generally.
3.7Information Sheet
In the context of the Programme Agreements and the transactions contemplated by the Programme Agreements, the information contained in the Information Sheet is true and accurate in all material respects and not misleading in any material respect.
3.8Financial Statements
The most recently published financial statements of the Issuer (i) were prepared in accordance with the requirements of applicable law and with generally accepted accounting principles in the United Kingdom and are consistently applied throughout the periods involved; and (ii) give a true and fair view of the state of the Issuer’s affairs as at the date to which they were prepared and of the Issuer’s profit for the period then ended.
3.9Adverse change and litigation 
3.9.1There has been no adverse change in the business, financial or other condition or prospects of any member of the Group since the date of the most recently published audited financial statements of the Issuer; and
3.9.2There is no litigation, arbitration or administrative proceeding pending or, to the knowledge of the Issuer, threatened against or affecting any member of the Group which in any case could reasonably be expected to be material in the context of the Programme Agreements and the transactions contemplated by the Programme Agreements.
3.10No default
No member of the Group is in default in respect of any indebtedness for borrowed money or any obligation having a similar commercial effect.
3.11No withholding tax
The Issuer is not required by any law or regulation of, or any relevant taxing authority or any political subdivision or any authority thereof having the power to tax in, the United Kingdom or (if different) the jurisdiction in which the Issuer is resident for tax purposes to make any withholding or deduction from any payment due under the Notes or any Programme Agreement for or on account of any taxes or duties of whatever nature.
			
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3.12No stamp duty 
There are no stamp duties or similar registration and transfer taxes or other duties assessable or payable in the United Kingdom, Belgium, Luxembourg or (if different) the jurisdiction in which the Issuer is resident for tax purposes in connection with the creation, issue, offering or sale of the Notes (including, without limitation, any resale of the Notes by any Dealer to CCFFL) or the execution or delivery of the Programme Agreements or the performance by the Issuer of its obligations under the Notes or the Programme Agreements.
3.13Maximum Amount
The aggregate outstanding principal amount of the Notes on the date of issue of any Note does not exceed the Maximum Amount.
3.14Anti-Bribery
Neither the Issuer nor any of its Subsidiaries, nor, to the knowledge of the Issuer, any director, officer, agent, employee or other person associated with or acting on behalf of the Issuer or any of its Subsidiaries, has used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity; made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; violated or is in violation of any provision of any applicable anti-bribery or anti-corruption law, rule or regulation enacted in any jurisdiction; or made, offered or promised to make, or authorised the payment or giving of any bribe, rebate, payoff, influence payment, facilitation payment, kickback or other unlawful payment or gift of money or anything of value prohibited under any applicable law, rule or regulation.
3.15Sanctions 
Neither the Issuer nor any of its Subsidiaries nor, to the knowledge of the Issuer, any director, officer, agent, employee or affiliate of the Issuer or any of its Subsidiaries is currently the subject of any Sanctions or conducting business with any person, entity or country which is the subject of any Sanctions.
3.16Money Laundering Laws
The operations of the Issuer and its Subsidiaries are and have been conducted at all times in compliance with applicable financial record keeping and reporting requirements and money laundering statutes in the United Kingdom and in all jurisdictions in which the Issuer and its Subsidiaries conduct business, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any applicable governmental agency.
3.17United States Investment Company Act
The Issuer is not, and will not be as a result of any issue of Notes or the receipt or application of the proceeds thereof, an investment company as defined in the United States Investment Company Act of 1940.
3.18CCFF 
3.18.1The Issuer represents, warrants and agrees that it satisfies all of the CCFF Eligibility Criteria applicable to it in its capacity as the Issuer.
			
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3.18.2No event referred to in clause 3.2(l) or 3.2(m) (as the same may be amended, supplemented or replaced from time to time) of the CCFF Counterparty Terms has occurred and is continuing.
3.18.3The statements in clause 4.1(j), 4.1(k) and 4.1(l) (as the same may be amended, supplemented or replaced from time to time) of the CCFF Counterparty Terms are true and accurate, provided that in the case of 4.1(l) the references to “the Bank” shall be deemed to be references to the relevant Dealer.
3.18.4The statement made in Clause 4.1(a) of the CCFF Counterparty Terms is accurate in respect of any certifications or statements made or factual information provided to the Bank of England by the Issuer.
3.18.5The Issuer further represents, warrants and agrees that: (i) the Issuer has notified the Dealers of any applicable limits imposed by the Bank of England in relation to the Issuer and (ii) the issuance of any Notes under the CCFF will not breach any such limits (if applicable).
3.19US selling restrictions
Each of the Issuer represents, warrants and agrees:
3.19.1that neither it, nor any of its affiliates (as defined in Rule 405 under the U.S. Securities Act of 1933, as amended (the “Securities Act”)), nor any person (other than the Dealers, as to whom no representation or warranty is made) acting on its behalf or on behalf of any of its affiliates, has engaged or will engage in any directed selling efforts (as defined in Regulation S under the Securities Act (“Regulation S”)) in the United States with respect to any Notes; and
3.19.2that it is a foreign issuer and reasonably believes that there is no substantial U.S. market interest (as those terms are defined in Regulation S) in its debt securities; and
3.19.3that it will not offer or sell, nor solicit offers to buy, securities under circumstances that would require registration of the Notes under the Securities Act.
3.20Times for making representations and warranties
The representations and warranties set out in this Clause 3:
3.20.1are made on the date of this Agreement; and
3.20.2are deemed to be repeated on each date upon which the Maximum Amount is increased, each date a Note Transaction is agreed and each date upon which any Note is, or is to be issued, in each case, by reference to the facts and circumstances then existing.
When a representation or warranty under Clause 3.7 (Information Sheet) is repeated pursuant to Clause 3.20.2, the reference to the Information Sheet shall be deemed to be only the Information Sheet which has been published before the date on which a relevant Note Transaction is agreed (in the case of that Note Transaction and the corresponding issue of Notes) or the date on which the letter purporting to increase the Maximum Amount is delivered (in the case of that increase). 
3.21Notice of inaccuracy
			
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If, before a Note is issued and delivered to or for the account of the relevant Dealer, an event occurs which would render any of the representations and warranties in this Clause 3 immediately, or with the lapse of time, untrue or incorrect, the Issuer will inform the relevant Dealer as soon as practicable of the occurrence of such event. In either case, the relevant Dealer shall inform the Issuer without any undue delay whether it wishes to continue or discontinue the issuance and delivery of the respective Notes.
3.22Conditions Precedent
By a date no later than five Business Days before the date upon which the Issuer and any Dealer shall first agree terms for a Note Transaction (or such other period as may be agreed between the Issuer and that Dealer), the Issuer shall deliver to that Dealer each of the documents listed in Schedule 1, in form and substance satisfactory to that Dealer.
3.23Further conditions precedent
The obligations of any Dealer in respect of any agreement for a Note Transaction and each issue of Notes shall be conditional upon:
3.23.1the representations and warranties of the Issuer contained in this Clause 3 being true and correct:
i.on each date upon which an agreement for a Note Transaction is made; and
ii.on each date on which Notes are issued,
by reference to the facts and circumstances then subsisting;
3.23.2there being no breach as at the issue date of those Notes in the performance of the obligations of the Issuer under any of the Programme Agreements or any Note; 
3.23.3the Notes being, on their issue date, eligible for resale to CCFFL in accordance with the CCFF Rules and the CCFF Counterparty Documentation which are in force on such issue date; and
3.23.4any other conditions precedent that the relevant Dealer reasonably requires in connection with the CCFF.
4Covenants and Agreements
4.1Duration
The undertakings in this Clause 4 remain in force from the date of this Agreement for so long as any Programme Agreement is in force and any amount is or may be outstanding under any Programme Agreement or any Note.
4.2Information
Whenever the Issuer publishes or makes available to its shareholders (or any class of them) or to its creditors generally (or any class of them) or to the public (by filing with any regulatory authority, securities exchange or otherwise) any information which could reasonably be expected to be material in the context of the Programme Agreements and the Notes and the transactions contemplated by the Programme Agreements and the Notes, the Issuer shall:
			
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a.notify each Dealer as to the nature of such information;
b.make a reasonable number of copies of such information available to each Dealer upon request and permit distribution of that information to actual or potential purchasers of Notes; and
c.take such action as may be necessary to ensure that the representation and warranty contained in Clause 3.7 (Information Sheet) is true and accurate on the dates when it is made or deemed to be repeated.
4.3Eligibility
The Issuer undertakes to notify the Dealers during the period from (and including) the date of any Note Transaction relating to Notes to (and including) the date that is two Business Days following such Note Transaction, should it or any of the Notes cease to be eligible to participate in the CCFF.
4.4Authorisation information
Whenever the Issuer is required to obtain or effect any authorisation in order to comply with the representation and warranty contained in Clause 3.4 (Authorisations), the Issuer shall:
4.4.1notify each Dealer as to the nature of such authorisation; and
4.4.2upon request by a Dealer, make a reasonable number of copies of such authorisation available to that Dealer.
4.5Information Sheet
The Issuer undertakes that if it amends, supplements or replaces the Information Sheet, it will deliver a copy of the Information Sheet as so amended, supplemented or replaced to the Bank of England, the Arranger and the Dealers.
4.6Indemnification
4.6.1Without prejudice to the other rights or remedies of the Dealers, the Issuer undertakes to each Dealer that if that Dealer or any of its Relevant Parties incurs any liability, damages, cost, loss or expense (including, without limitation, legal fees, costs and expenses) (a “Loss”) arising out of or in connection with or based on:
i.the Issuer's failure to make due payment under the Notes or the Deed of Covenant; or
ii.any Notes not being issued for any reason (other than as a result of the failure of any Dealer to pay for such Notes) after an agreement for that Note Transaction has been made; or
iii.any breach or alleged breach of the representations, warranties, covenants or agreements made or deemed to be repeated by the Issuer in this Agreement or any other Programme Agreement; or
iv.any untrue statement or alleged untrue statement of any material fact contained in the Information Sheet unless, in the case of an alleged untrue 
			
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statement, the allegation is being made by the relevant Dealer or its Related Party; or
v.the exercise by the Bank of England or CCFFL of its rights under clause 9.2, 9.3 and/or 13.3 (as the same may be amended, supplemented or replaced from time to time) of the CCFF Counterparty Terms to the extent that the relevant Dealer provides evidence in writing that the exercise of such rights, and the incurrence by it of any Loss, relates solely to the Programme Agreements and/or any relevant Note Transaction,
the Issuer shall pay to that Dealer on demand an amount equal to such Loss on an after tax basis. No Dealer shall have any duty or obligation, whether as fiduciary or trustee for any Relevant Party or otherwise, to recover any such payment or to account to any other person for any amounts paid to it under this Clause 4.5. 
4.6.2In case any allegation as described in sub-paragraph 5.4.1 above is made or any action is brought against any Dealer or its Relevant Party in respect of which recovery may be sought from the Issuer under this Clause 4.6, the relevant Dealer shall promptly notify the Issuer in writing but failure to do so will not relieve the Issuer from any liability under this Agreement. If any such allegation is made, the parties agree to consult in good faith with respect to the nature of the allegation. Subject to sub-clause 4.6.3 below, the Issuer may participate at its own expense in the defence of any action.
4.6.3If it so elects within a reasonable time after receipt of the notice referred to in sub-clause 4.6.2 above, the Issuer may, subject as provided below, assume the defence of the action with legal advisers chosen by it and approved by the relevant Dealer (such approval not to be unreasonably withheld or delayed). Notwithstanding any such election a Dealer or its Relevant Party may employ separate legal advisers reasonably acceptable to the Issuer and the Issuer shall not be entitled to assume such defence and shall bear the reasonable fees and expenses of such separate legal advisers if:
ithe use of the legal advisers chosen by the Issuer to represent the Dealer or Relevant Party would present such legal advisers with a conflict of interest;
iithe actual or potential defendants in, or targets of, any such action include both the Dealer or its Relevant Party and the Issuer and the Dealer concludes that there may be legal defences available to it and/or other Relevant Parties which are different from or additional to those available to the Issuer; or
iiithe Issuer has not employed legal advisers reasonably satisfactory to the Dealer to represent the Dealer or its Relevant Party within a reasonable time after notice of the institution of such action.
4.6.4If the Issuer assumes the defence of the action, the Issuer shall not be liable for any fees and expenses of legal advisers of the Dealer or its Relevant Party incurred thereafter in connection with the action, except as stated in sub-clause 4.6.3 above.
4.6.5The Issuer shall not be liable in respect of any settlement of any action effected without its written consent, such consent not to be unreasonably withheld or 
			
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delayed. The Issuer shall not, without the prior written consent of the Dealer (such consent not to be unreasonably withheld or delayed), settle or compromise or consent to the entry of any judgment with respect to any pending or threatened claim or action in respect of which recovery may be sought (whether or not the Dealer or its Relevant Party is an actual or potential party to such claim or action) unless such settlement, compromise or consent includes an unconditional release of each Dealer and its Relevant Party from all liability arising out of such claim or action and does not include a statement as to or an admission of fault, culpability or failure to act by or on behalf of a Dealer or its Relevant Party.
4.7Costs and expenses
The Issuer will on demand:
4.7.1pay, or reimburse the Arranger for, all reasonable costs and expenses (including value added tax and any other taxes or duties and agreed fees and disbursements of counsel to the Arranger) incurred by the Arranger in connection with the preparation, negotiation, printing, execution and delivery of the Programme Agreements and the Notes and all documents contemplated by the Programme Agreements and the Notes;
4.7.2pay to each Dealer the full amount of any agreed fees, costs, charges and other expenses, together with any value added tax thereon and any other taxes or duties and agreed fees and disbursements of counsel to such Dealer, which that Dealer has incurred itself or is required to pay by the Bank of England or CCFFL in relation to the Programme, in accordance with the CCFF Rules and the CCFF Counterparty Documentation, in respect of any Note Transaction or in respect of the acceptance of the Dealer, the Issuer or the Programme for participation in or use of the CCFF;
4.7.3pay, or reimburse each Dealer for, all costs and expenses (including value added tax and any other taxes or duties and agreed fees and disbursements of counsel to such Dealer) incurred by that Dealer in connection with (i) the Issuer’s and the Dealer’s accession to and use of the CCFF, (ii) all agreed fees, costs, charges and other expenses reimbursed or paid by the relevant Dealer pursuant to clause 9.3 of the CCFF Counterparty Terms and (iii) the enforcement or protection of its rights under the Programme Agreements, the Notes and all documents contemplated by the Programme Agreements and the Notes; and
4.7.4pay any stamp duty or other similar taxes (including any penalties and interest in respect thereof) payable in connection with the entry into, delivery and performance of any Programme Agreement or any Notes, and will indemnify and hold harmless each Dealer on demand, on an after tax basis, from all liabilities arising from any failure to pay or delay in paying such duty or taxes.
4.8Changes to the Programme
4.8.1The Issuer will notify each Dealer of:
i.any change in an Issuing and Paying Agent, or any change in any of the offices of such Issuing and Paying Agent; and
ii.any amendment to or termination of the Issuing and Paying Agency Agreement or the Deed of Covenant,
			
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by no later than 10 Business Days before the making of that change, amendment or termination. 
4.8.2The Issuer will not permit to become effective any change, amendment or termination to the Issuing and Paying Agency Agreement or the Deed of Covenant which could reasonably be expected to adversely affect the interests of any Dealer or the holder of any Notes then outstanding.
4.9Continuing obligations
The Issuer will take such steps (in conjunction with the Dealers, where appropriate) to ensure that any laws and regulations or requirements of any governmental agency, authority or institution which may from time to time be applicable to any Notes shall be fully observed and complied with, including without limitation its obligations under Clause 3.19 (US selling restrictions).
4.10Sanctions
The Issuer will ensure that proceeds raised in connection with the issue of any Notes will not directly or indirectly be lent, contributed or otherwise made available to any person or entity (whether or not related to the Issuer for the purpose of financing the activities of any person or entity or for the benefit of any country currently the subject of any Sanctions. Neither the provisions of this Clause 4.9 nor Clause 3.15 (Sanctions) (when repeated after the date of this Agreement) shall apply to any person if and to the extent that it is or would be unenforceable by or in respect of that person by reason of breach of (i) any provision of Council Regulation (EC) No 2271/96 of 22 November 1996 (or any law or regulation implementing such Regulation in any member state of the European Union or the United Kingdom).
4.11CCFF Counterparty
4.11.1Where at any time any Dealer is required under the terms of any of the CCFF Counterparty Documentation to provide any representations, undertaking or satisfy any conditions precedent in relation to or in connection with the Issuer or its affiliates, the Issuer shall be deemed to give such representations and undertakings and confirm such conditions precedent are satisfied mutatis mutandis to the relevant Dealer at such time (the “CCFF Issuer Undertakings, Representations and Conditions Precedent”);
4.11.2The Issuer shall promptly inform the relevant Dealer if it is unable to give or satisfy any of the CCFF Issuer Undertakings, Representations and Conditions Precedent; 
4.11.3Without prejudice to any other indemnity given by the Issuer in this Agreement, where a Dealer is required at any time under the terms of the CCFF Counterparty Documentation to indemnify or undertake to pay any entity's (other than its own) fees, costs, charges and other expenses (including, without limitation, any third party custody or settlement or clearing system or depository charges for any assets, costs incurred in connection with checking that assets are eligible for the CCFF and valuing assets, internal costs and expenses (including staff salary costs), legal expenses, transfer taxes, value added tax, registration charges and other similar taxes and charges) (the “Counterparty CCFF Indemnities and Costs”) in connection with the Programme or a related transaction the Issuer shall provide mutatis mutandis such indemnity or undertaking to pay such Counterparty 
			
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CCFF Indemnities and Costs to the relevant Dealer, provided that if the Dealer has already recovered costs referred to in this Clause 4.11.3, then such Dealer shall not be entitled to recover in respect of the same claim pursuant to Clause 4.6.1(v) of this Agreement; and
4.11.4The Issuer agrees to promptly provide any Dealer with any information that it shall reasonably require in connection with the CCFF including in relation to the purchase limits applicable to the Issuer or its group in accordance with the Operating Procedures (as defined in the CCFF Counterparty Documentation).
5.Termination and Appointment
5.1Termination
5.1.1The Issuer may terminate the appointment of any Dealer on not less than 30 days’ written notice to the relevant Dealer. The Dealer may resign on not less than 30 days’ written notice to the Issuer. The Issuer shall promptly inform the other Dealers and the Issuing and Paying Agent of such termination or resignation.
5.1.2The rights and obligations of each party to this Agreement shall not terminate in respect of any rights or obligations accrued or incurred before the date on which such termination takes effect and the provisions of Clauses 4.6 (Indemnification) and 4.4 (Costs and expenses) shall survive termination of this Agreement and delivery against payment for any of the Notes.
5.2Appointment of Dealers
5.2.1The Issuer may appoint one or more Additional Dealers upon the terms of this Agreement by sending a dealer accession letter to the Additional Dealer substantially in the form of Schedule 2. The appointment will only become effective if the Additional Dealer confirms acceptance of its appointment to the Issuer by signing that dealer accession letter and delivering it to the Issuer. The Issuer may limit that appointment to a particular issue of Notes or for a particular period of time (which need not be a finite period of time.
5.2.2The Additional Dealer shall become a party to this Agreement on the later of:
i.the date of the signature of the dealer accession letter by the Additional Dealer in accordance with paragraph 5.2.1 above; and
ii.the date specified in the dealer accession letters as the date of appointment,
and the Additional Dealer shall then be vested with all the authority, rights, powers, duties and obligations as if originally named as a Dealer under this Agreement.
5.2.3If the appointment of that Additional Dealer is limited to a particular issue of Notes or period of time:
i.such authority, rights, powers, duties and obligations shall extend to the relevant Notes or period only; and
ii.following the relevant issue of Notes or the expiry of the time period, the relevant Additional Dealer shall have no further authority, rights, powers, duties or obligations except such as may have accrued or been incurred 
			
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prior to, or in connection with, the issue of such Notes or during that time period.
5.2.4The Issuer shall promptly notify the Issuing and Paying Agent and the other Dealers of any appointment. If the appointment of the Dealer is not limited to a particular issue of Notes or for a particular period of time, the Issuer shall also notify the other Dealers of that appointment. The Issuer agrees to supply to such Additional Dealer, upon appointment, a copy of the conditions precedent documents specified in Schedule 1, if requested by the Additional Dealer.
5.3Transfers to affiliates 
If, at any time, a Dealer transfers all or substantially all of its commercial paper business to any of its affiliates then, on the date that transfer becomes effective, the relevant affiliate shall become the successor to that Dealer under this Agreement without the execution or filing of any paper or any further act on the part of the parties to this Agreement. Upon that transfer becoming effective, all references in this Agreement to the relevant Dealer shall be deemed to be references to the relevant affiliate. The relevant Dealer shall, promptly following that effective date, give notice of the transfer to the Issuer with a copy to the Issuing and Paying Agent.
6.Status of the Dealers and the Arranger 
The Arranger shall have only those duties, obligations and responsibilities expressly specified in this Agreement. Each of the Dealers agrees that the Arranger has only acted in an administrative capacity to facilitate the establishment and/or maintenance of the Programme and has no responsibility to it for: 
6.1.1the adequacy, accuracy, completeness or reasonableness of any representation, warranty, undertaking, agreement, statement or information in this Agreement or any information provided by it in connection with the Programme; or 
6.1.2the nature and suitability to it of all legal, tax and accounting matters and all documentation in connection with the Programme or any Notes.
The Issuer the Arranger and the Dealers agree that solely by virtue of its appointment as Arranger or Dealer, as applicable, in respect of the Programme, neither the Arranger nor the Dealers nor any of their respective affiliates will be a manufacturer for the purpose of EU Delegated Directive 2017/593.
7.Notices
7.1Written Communication
Any communication to be made under this Agreement shall be made in writing and, unless otherwise agreed, be made by letter, email or by telephone (to be confirmed promptly by letter or email). Any such communication shall be effective (if sent by letter or email) upon receipt by the addressee or (if made by telephone) upon receipt by the recipient of prompt confirmation of that communication by letter or email, provided that any such communication which would otherwise take effect after 4.00 p.m. on any particular day shall not take effect until 10.00 a.m. on the immediately succeeding business day in the place of business of the addressee.
			
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7.2Contact details
The relevant contact details of each party to this Agreement shall be as set out in the signatory pages to this Agreement, or as otherwise notified by any party to each other party to this Agreement.
7.3Receipt
7.3.1A communication given under this Agreement but received on a non-Business Day or after business hours in the place of receipt will only be deemed to be given on the next Business Day in that place. 
7.3.2Subject as provided in Clause 7.1 above, a communication under this Agreement to a Dealer will only be effective on actual receipt by that Dealer.
7.4Language
1.Any notice given in connection with a Programme Agreement or Note must be in English.
i.Any other document provided in connection with a Programme Agreement or Note must be:
(i)in English; or
(ii)if not in English, (unless the Dealers otherwise agree) accompanied by a certified English translation. In this case, the English translation prevails unless the document is a constitutional, statutory or other official document.
8.Partial Invalidity
If, at any time, any provision of this Agreement is or becomes illegal, invalid or unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions nor the legality, validity or enforceability of such provision under the law of any other jurisdiction will in any way be affected or impaired.
9.Remedies and Waiver
No failure to exercise, nor any delay in exercising, on the part of any Dealer, any right or remedy under the Programme Agreements shall operate as a waiver, nor shall any single or partial exercise of any right or remedy prevent any further or other exercise or the exercise of any other right or remedy. The rights and remedies provided in this Agreement are cumulative and not exclusive of any rights or remedies provided by law.
10.Counterparts
This Agreement may be executed in any number of counterparts. This has the same effect as if the signatures on the counterparts were on a single copy of this Agreement.
11.Rights of Third Parties
A person who is not a party to this Agreement has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce or enjoy the benefit of any term of this Agreement, but 
			
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this does not affect any right or remedy of a third party which exists or is available apart from that Act.
12.Governing Law
This Agreement, any agreement for a Note Transaction and the Notes and any non-contractual obligations arising out of or in connection with any of them shall be governed by, and construed in accordance with, English law.
13.Enforcement
13.1Jurisdiction
13.1.1Subject to Clause 13.1.3 below, the English courts have exclusive jurisdiction to settle any dispute arising out of or in connection with this Agreement and any agreement for a Note Transaction (including a dispute regarding their existence, validity or termination and any dispute relating to any non-contractual obligations arising out of or in connection with this Agreement and any agreement for a Note Transaction) and each party submits to the exclusive jurisdiction of the English courts.
13.1.2Subject to Clause 13.1.3 below, the parties to this Agreement agree that the English courts are the most appropriate and convenient courts to settle any such dispute and accordingly no such party will argue to the contrary.
13.1.3To the extent allowed by law, a Dealer may take:
i.proceedings in any other court with jurisdiction; and
ii.concurrent proceedings in any number of jurisdictions.
 
This Agreement has been entered into on the date stated at the beginning of this Agreement.
			
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Schedule 1
Condition Precedent Documents
1.Certified copies of the Issuer’s constitutional documents.
2.Certified copies of all documents evidencing the internal authorisations required to be granted by the Issuer:
(a)approving the terms of, and the transactions contemplated by, the Notes and Programme Agreements and resolving that it execute the Notes and Programme Agreements;
(b)authorising a specified person or persons to execute the Notes and Programme Agreements on its behalf; and
(c)authorising a specified person, or persons on its behalf, to sign and/or despatch all documents and notices to be signed and/or despatched by it under or in connection with Notes and Programme Agreements.
3.Certified copies of any governmental or other consents required for the issue of Notes and for the Issuer to enter into, deliver and perform its obligations under the Notes and the Programme Agreements (as applicable).
4.Executed copies of:
(a)this Agreement;
(b)the Issuing and Paying Agency Agreement; and
(c)the Deed of Covenant.
5.A copy of: 
(a)the confirmation from the Issuing and Paying Agent that an executed copy of each of the Deed of Covenant has been delivered to the Issuing and Paying Agent; and
(b)the confirmation from the Issuing and Paying Agent that the form of Global Note has been prepared and has been delivered to the Issuing and Paying Agent.
6.A legal opinion from Linklaters LLP, English legal advisers to the Dealer.
7.The Information Sheet.
8.A list of the names and titles and specimen signatures of the persons authorised:
(a)to sign on behalf of the Issuer the Notes and the Programme Agreements, as well as all notices and other documents to be delivered in connection with the Programme Agreements and the Notes;
(b)to take any other action on behalf of the Issuer in relation to the Programme.
			
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Schedule 2
Dealer Accession Letter
[Letterhead of Issuer]
[Date]
To: [New Dealer name]
cc.: [list all permanent Dealers]
cc.: [Issuing and Paying Agent name] as Issuing and Paying Agent

Dear Sirs
Brake Bros Limited £600,000,000 Commercial Paper Programme for the purpose of the Joint HM Treasury and Bank of England Covid Corporate Financing Facility (the “Programme”)
We refer to a dealer agreement dated 30 April 2020 (the “Dealer Agreement”) between ourselves as Issuer, Barclays Bank PLC as Arranger, Barclays Bank PLC as Dealer relating to the Programme. Terms used in the Dealer Agreement shall have the same meaning in this letter.
In accordance with Clause 5.2 (Appointment of Dealers) and upon the terms of the Dealer Agreement, we hereby appoint you as an Additional Dealer [for the Programme [with immediate effect][with effect from [          ]]/[for the issue of [description of issue]/[for the period ● to ●]]. [Copies of each of the condition precedent documents set out in Schedule 1 to the Dealer Agreement have been sent to you, as requested].
Please confirm acceptance of your appointment upon such terms by signing and returning to us the enclosed copy of this letter, whereupon you will, in accordance with Clause 5.2 (Appointment of Dealers) of the Dealer Agreement, become a party to the Dealer Agreement vested with all the authority, rights, powers, duties and obligations set out in that Clause 5.2.
Yours faithfully

..........................................................
for and on behalf of
BRAKE BROS LIMITED

			
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We hereby confirm acceptance of our appointment as a Dealer upon the terms of the Dealer Agreement referred to above. For the purposes of Clause 7 (Notices) of the Dealer Agreement our contact details are as follows:
[NEW DEALER NAME]
Address: [  ]
Telephone: [  ]
Email:  [   ]
Contact: [  ]

Dated: ..........................................................

Signed: ..........................................................for [New Dealer name]

			
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Schedule 3
Notification Letter for an Increase in the Maximum Amount
[Letterhead of Issuer]
[Date]
To: The Dealer referred to below
cc.: Barclays Bank PLC as Arranger
cc.: Deutsche Bank AG, London Branch as Issuing and Paying Agent

Dear Sirs
Brake Bros Limited £600,000,000 Commercial Paper Programme for the purpose of the Joint HM Treasury and Bank of England Covid Corporate Financing Facility (the “Programme”)
We refer to a dealer agreement dated 30 April 2020 (the “Dealer Agreement”) between ourselves as Issuer, Barclays Bank PLC as Arranger and Barclays Bank PLC as Dealer relating to the Programme. Terms used in the Dealer Agreement shall have the same meaning in this letter.
In accordance with Clause 2.7 (Increase in Maximum Amount) of the Dealer Agreement, we hereby notify each of the addressees listed above that the Maximum Amount is to be increased from £[●] to £[●] with effect from [Date], subject to delivery to the Dealer[s], the Arranger and the Issuing and Paying Agent of the following documents:
(a)a certificate from a duly authorised officer of the Issuer confirming that no changes have been made to the constitutional documents of the Issuer since the date of the Dealer Agreement or, if there has been a change, a certified copy of the constitutional documents currently in force;
(b)certified copies of all documents evidencing the internal authorisations and approvals required to be granted by the Issuer for such an increase in the Maximum Amount;
(c)certified copies of [specify any applicable governmental or other consents required by the Issuer in relation to the increase];
(d)a list of names, titles and specimen signatures of the persons authorised to sign on behalf of the Issuer all notices and other documents to be delivered in connection with such an increase in the Maximum Amount; 
(e)an updated or supplemented Information Sheet reflecting the increase in the Maximum Amount of the Programme; and
(f)legal opinions from legal counsel in jurisdiction of the Issuer. 
Yours faithfully

..........................................................
for and on behalf of
			
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Brake Bros Limited

Signatories
The Issuer
BRAKE BROS LIMITED
By:  /s/ Sarah Whibley
Sarah Whibley

Address: Brake Bros Limited 
 Enterprise House, 
 Eureka Business Park, 
 Ashford, Kent, 
 TN25 4AG
Telephone: 01233 206621
Email:   john.legg@brake.co.uk / sarah.whibley@sysco.com
Contact:           John Legg / Sarah Whibley

			
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The Arranger
BARCLAYS BANK PLC
By:   /s/ <Authorized Signatory>
          [Authorized Signatory]

Address:
        5 The North Colonnade
        Canary Wharf
        London E14 4BB
        United Kingdom 
Telephone: +44 20 7773 5757 
Email:  ecpdesk@barclays.com 
Contact: ECP Trading Desk

The Dealer

BARCLAYS BANK PLC
By:   /s/ <Authorized Signatory>
          [Authorized Signatory]
Address:
        5 The North Colonnade
        Canary Wharf
        London E14 4BB
        United Kingdom 
Telephone: +44 20 7773 5757 
Email:  ecpdesk@barclays.com 
Contact: ECP Trading Desk

			
	SIGNATURE PAGE TO THE DEALER AGREEMENTEX-4.10

 Exhibit 4.10 

DESCRIPTION OF SECURITIES 

Capitalized terms used but not defined herein shall have the meaning ascribed to them in the Annual Report on
Form 10-K to which this Description of Securities is an exhibit. The following description is based on relevant portions of the Maryland General Corporation Law and our charter and bylaws, which we
collectively refer to as our “governing documents.” 
  

	 	A.	 Common Stock, $0.001 par value per share 

The authorized stock of Saratoga Investment Corp (the “Company,” “we,” “our” or “us”) consists of
100,000,000 shares of common stock, par value $0.001 per share, of which 11,217,545 were outstanding as of February 29, 2020. Our common stock trades under the symbol “SAR” on the New York Stock Exchange (the “NYSE”).
There are no outstanding options or warrants to purchase our common stock. No shares of common stock have been authorized for issuance under any equity compensation plans. Under Maryland law, our stockholders generally are not personally liable for
our debts or obligations. 
 Under our governing documents, our board of directors is authorized to create new classes or series of shares
of stock and to authorize the issuance of shares of stock without obtaining stockholder approval. Our charter provides that the board of directors, without any action by our stockholders, may amend the charter from time to time to increase or
decrease the aggregate number of shares of stock or the number of shares of stock of any class or series that we have authority to issue. 

Each share of our common stock has equal rights as to earnings, assets, dividends and voting and all of our outstanding shares of common stock
are duly authorized, validly issued, fully paid and nonassessable. Distributions may be paid to the holders of our common stock if, as and when authorized by our board of directors and declared by us out of funds legally available therefor. Shares
of our common stock have no preemptive, exchange, conversion or redemption rights. In the event of our liquidation, dissolution or winding up, each share of common stock would be entitled to share ratably in all of our assets that are legally
available for distribution after we pay all debts and other liabilities and subject to any preferential rights of holders of shares of our preferred stock, if any are outstanding at such time. Each share of our common stock entitles its holder to
cast one vote on all matters submitted to a vote of stockholders, including the election and removal of directors. 
 Provisions of Our Governing
Documents and the Maryland General Corporation Law 
 Our governing documents and the Maryland General Corporation Law contain provisions
that could make it more difficult for a potential acquiror to acquire us by means of a tender offer, proxy contest or otherwise. These provisions are expected to discourage certain coercive takeover practices and inadequate takeover bids and to
encourage persons seeking to acquire control of us to negotiate first with our board of directors. We believe that the benefits of these provisions outweigh the potential disadvantages of discouraging any such acquisition proposals because, among
other things, the negotiation of such proposals may improve their terms. 
 Classified Board of Directors 

Our board of directors is divided into three classes of directors serving staggered three-year terms. Directors of each class are elected to
serve for three-year terms and until their successors are duly elected and qualify, and each year one class of directors is elected by the stockholders. A classified board may render a change in control of us or removal of our incumbent management
more difficult. We believe, however, that the longer time required to elect a majority of a classified board of directors will help to ensure the continuity and stability of our management and policies. 

Number of Directors; Vacancies; Removal 

Our governing documents provide that the number of directors will be set only by our board of directors in accordance with our bylaws. Our
bylaws provide that a majority of our entire board of directors may at any time increase or decrease the number of directors. However, unless our bylaws are amended, the number of directors may never be less than three nor more than eleven. Our
charter provides that, except as may be provided by the board of directors in setting the terms of any class or series of shares of stock, so long as we have a class of securities registered under the Exchange Act and at least three independent
directors, any and all vacancies on the board of directors may be filled only by the affirmative vote of a majority of the remaining directors in office, even if the remaining directors do not constitute a quorum, and any director elected to fill a
vacancy will serve for the remainder of the full term of the directorship in which the vacancy occurred and until a successor is elected and qualifies, subject to any applicable requirements of the 1940 Act. If there are no directors then in office,
vacancies may be filled by stockholders at a special meeting called for such purpose. Our charter provides that a director may be removed only by the affirmative vote of at least two-thirds of the votes
entitled to be cast generally in the election of directors. 

  
 1 

 Election of Directors 

Our charter and bylaws provide that the affirmative vote of the holders of a majority of the outstanding shares of stock entitled to vote in
the election of directors will be required to elect each director. Pursuant to our charter and bylaws, our board of directors may amend the bylaws to alter the vote required to elect directors. 

Action by Stockholders 
 All of our
outstanding shares of common stock will generally be able to vote on any matter that is a proper subject for action by the stockholders of a Maryland corporation, including in respect of the election or removal of directors as well as other
extraordinary matters. Under the Maryland General Corporation Law, stockholder action can be taken only at an annual or special meeting of stockholders or by written or electronically-transmitted unanimous consent in lieu of a meeting.
These provisions, combined with the requirements of our governing documents regarding the calling of a stockholder-requested special meeting of stockholder discussed below, may have the effect of delaying consideration of a stockholder
proposal until the next annual meeting. 
 Advance Notice Provisions for Stockholder Nominations and Stockholder Proposals 

Our bylaws provide that, with respect to an annual meeting of our stockholders, nominations of individuals for election to the board of
directors and the proposal of business to be considered by stockholders may be made only (1) pursuant to our notice of the meeting, (2) by or at the direction of the board of directors, (3) by any stockholder who is a stockholder of
record both at the time of giving notice by the stockholder and at the time of the annual meeting, who is entitled to vote at the meeting and who has complied with the advance notice procedures of the bylaws. With respect to special meetings of
stockholders, only the business specified in our notice of the meeting may be brought before the meeting. Nominations of individuals for election to the board of directors at a special meeting may be made only (1) pursuant to our notice of the
meeting, (2) by or at the direction of the board of directors, (3) provided that the board of directors has determined that directors will be elected at the meeting, by a stockholder who is a stockholder of record both at the time of
giving notice by the stockholder and at the time of the special meeting and who is entitled to vote at the meeting and who has complied with the advance notice provisions of our bylaws or (4) by a stockholder who is entitled to vote at the
meeting in circumstances in which a special meeting of stockholders is called for the purpose of electing directors when no directors remain in office. 

The purpose of requiring stockholders to give us advance notice of nominations and other business is to afford our board of directors a
meaningful opportunity to consider the qualifications of the proposed nominees and the advisability of any other proposed business and, to the extent deemed necessary or desirable by our board of directors, to inform stockholders and make
recommendations about such qualifications or business, as well as to provide a more orderly procedure for conducting meetings of stockholders. Although our bylaws do not give our board of directors any power to disapprove stockholder nominations for
the election of directors or proposals recommending certain action, they may have the effect of precluding a contest for the election of directors or the consideration of stockholder proposals if proper procedures are not followed and of
discouraging or deterring a third party from conducting a solicitation of proxies to elect its own slate of directors or to approve its own proposal without regard to whether consideration of such nominees or proposals might be harmful or beneficial
to us and our stockholders. 
 Calling of Special Meetings of Stockholders 

Our bylaws provide that special meetings of our stockholders may be called by our board of directors and certain of our officers. Additionally,
our bylaws provide that, subject to the satisfaction of certain procedural and informational requirements by the stockholders requesting the meeting, a special meeting of our stockholders will be called by our secretary upon the written request of
stockholders entitled to cast not less than a majority of all the votes entitled to be cast at such meeting, except that, if no directors remain in office, a special meeting of our stockholders shall be called to elect directors by the secretary
upon the written request of holders entitled to cast at least 10% of the votes entitled to be cast generally in the election of directors. 

  
 2 

 Amendment of Governing Documents 

Under Maryland law, a Maryland corporation generally cannot dissolve or amend its charter unless the corporation’s board of directors
declares the dissolution or amendment to be advisable and the dissolution or amendment is approved by the affirmative vote of stockholders entitled to cast at least two-thirds of the votes entitled to be cast
on the matter. A Maryland corporation may provide in its charter for approval of these matters by a lesser percentage, but not less than a majority of all of the votes entitled to be cast on the matter. Our charter generally provides for approval of
amendments to our charter by the stockholders entitled to cast at least a majority of the votes entitled to be cast on the matter. However, our charter also provides that certain charter amendments and proposals for our liquidation, dissolution or
conversion, whether by merger or otherwise, from a closed-end company to an open-end company require the approval of the stockholders entitled to cast at least two-thirds percent of the votes entitled to be cast on such matter. If such amendment or proposal is approved by at least two-thirds of our continuing directors (in addition
to approval by our board of directors), such amendment or proposal may be approved by a majority of the votes entitled to be cast on such a matter. The “continuing directors” are, as defined in our charter, our current directors as well as
those directors whose nomination for election by the stockholders or whose election by the directors to fill vacancies is approved by a majority of the continuing directors then on the board of directors. 

Our governing documents provide that the board of directors has the exclusive power to adopt, alter or repeal any provision of our bylaws and
to make new bylaws. 
 Approval of Extraordinary Actions 

Under Maryland law, a Maryland corporation generally cannot amend its charter, merge, sell all or substantially all of its assets, engage in a
share exchange or engage in similar transactions outside the ordinary course of business, unless the corporation’s board of directors declares action or transaction to be advisable and the action or transaction is approved by the affirmative
vote of stockholders entitled to cast at least two-thirds of the votes entitled to be cast on the matter. A Maryland corporation may provide in its charter for approval of these matters by a lesser percentage,
but not less than a majority of all of the votes entitled to be cast on the matter. 
 Except for a merger that would result in our
conversion to an open-end company, which requires the approval described above, our charter provides that we may merge, sell all or substantially all of our assets, engage in a consolidation or share exchange
or engage in similar transactions, if such transaction is declared advisable by our board of directors and approved by a majority of all of the votes entitled to be cast on the matter. 

No Appraisal Rights 
 Except with respect
to appraisal rights arising in connection with the Maryland Control Share Acquisition Act discussed below, as permitted by the Maryland General Corporation Law, our governing documents provide that our stockholders will not be entitled to exercise
appraisal rights unless a majority of our board of directors determines that such rights will apply with respect to all or any classes or series of stock, to one or more transactions occurring after the date of such determination in connection with
which holders of such shares would otherwise be entitled to exercise appraisal rights. 
 Control Share Acquisitions 

The Control Share Acquisition Act provides that control shares of a Maryland corporation acquired in a control share acquisition have no voting
rights except to the extent approved by a vote of two-thirds of the votes entitled to be cast on the matter. Shares owned by the acquiror, by officers or by directors who are employees of the corporation are
excluded from shares entitled to vote on the matter. Control shares are voting shares of stock which, if aggregated with all other shares of stock owned by the acquiror or in respect of which the acquiror is able to exercise or direct the exercise
of voting power (except solely by virtue of a revocable proxy), would entitle the acquiror to exercise voting power in electing directors within one of the following ranges of voting power: 

 

	 	•	 	 one-tenth or more but less than one-third; 

  
 3 

	 	•	 	 one-third or more but less than a majority; or 

 

	 	•	 	 a majority or more of all voting power. 

The requisite stockholder approval must be obtained each time an acquiror crosses one of the thresholds of voting power set forth above.
Control shares do not include shares the acquiring person is then entitled to vote as a result of having previously obtained stockholder approval. A control share acquisition means the acquisition of control shares, subject to certain exceptions.

 A person who has made or proposes to make a control share acquisition may compel the board of directors of the corporation to call a
special meeting of stockholders to be held within 50 days of demand to consider the voting rights of the shares. The right to compel the calling of a special meeting is subject to the satisfaction of certain conditions, including an undertaking to
pay the expenses of the meeting. If no request for a meeting is made, the corporation may itself present the question at any stockholder meeting. 

If voting rights are not approved at the meeting or if the acquiring person does not deliver an acquiring person statement as required by the
statute, then the corporation may repurchase for fair value any or all of the control shares, except those for which voting rights have previously been approved. The right of the corporation to repurchase control shares is subject to certain
conditions and limitations, including, as provided in our bylaws, compliance with the 1940 Act, which will prohibit any such repurchase other than in limited circumstances. Fair value is determined, without regard to the absence of voting rights for
the control shares, as of the date of the last control share acquisition by the acquiror or of any meeting of stockholders at which the voting rights of the shares are considered and not approved. If voting rights for control shares are approved at
a stockholder meeting and the acquiror becomes entitled to vote a majority of the shares entitled to vote, all other stockholders may exercise appraisal rights. The fair value of the shares as determined for purposes of appraisal rights may not be
less than the highest price per share paid by the acquiror in the control share acquisition. 
 The Control Share Acquisition Act does not
apply (a) to shares acquired in a merger, consolidation or share exchange if the corporation is a party to the transaction or (b) to acquisitions approved or exempted by the charter or bylaws of the corporation. 

Our bylaws contain a provision exempting from the Control Share Acquisition Act any and all acquisitions by any person of our common stock.
Such provision could also be amended or eliminated at any time in the future. However, we will amend our bylaws to be subject to the Control Share Acquisition Act only if the board of directors determines that it would be in our best interests and
if the SEC does not object to our determination that our being subject to the Control Share Acquisition Act does not conflict with the 1940 Act. 

Business Combinations 
 Under Maryland
law, “business combinations” between a Maryland corporation and an interested stockholder or an affiliate of an interested stockholder are prohibited for five years after the most recent date on which the interested stockholder becomes an
interested stockholder. These business combinations include a merger, consolidation, share exchange or, in circumstances specified in the statute, an asset transfer or issuance or reclassification of equity securities. An interested stockholder is
defined as: 
  

	 	•	 	 any person who beneficially owns 10% or more of the voting power of the corporation’s stock; or

  

	 	•	 	 an affiliate or associate of the corporation who, at any time within the
two-year period prior to the date in question, was the beneficial owner of 10% or more of the voting power of the then outstanding voting stock of the corporation. 

A person is not an interested stockholder under this statute if the board of directors approved in advance the transaction by which he
otherwise would have become an interested stockholder. However, in approving a transaction, the board of directors may provide that its approval is subject to compliance, at or after the time of approval, with any terms and conditions determined by
the board. 

  
 4 

 After the five-year prohibition, any business combination between the corporation and an
interested stockholder generally must be recommended by the board of directors of the corporation and approved by the affirmative vote of at least: 
  

	 	•	 	 80% of the votes entitled to be cast by holders of outstanding shares of voting stock of the corporation; and

  

	 	•	 	 two-thirds of the votes entitled to be cast by holders of voting stock of
the corporation other than shares held by the interested stockholder with whom or with whose affiliate the business combination is to be effected or held by an affiliate or associate of the interested stockholder. 

These super-majority vote requirements do not apply if the corporation’s stockholders receive a minimum price, as defined under
Maryland law, for their shares in the form of cash or other consideration in the same form as previously paid by the interested stockholder for its shares. 

The statute permits various exemptions from its provisions, including business combinations that are exempted by the board of directors before
the time that the interested stockholder becomes an interested stockholder. Our board of directors has adopted a resolution exempting from the provisions of the Maryland Business Combination Act any business combination between us and any other
person. If our board of directors adopts resolutions causing us to be subject to the provisions of the Business Combination Act, these provisions may discourage others from trying to acquire control of us and increase the difficulty of consummating
any offer. 
 Conflict with 1940 Act 

Our bylaws provide that, if and to the extent that any provision of the Maryland General Corporation Law, including the Control Share
Acquisition Act or the Business Combination Act (if we amend our bylaws to be subject to such Acts), or any provision of our charter or bylaws conflicts with any provision of the 1940 Act, the applicable provision of the 1940 Act will control. 

 

	 	B.	 Debt Securities – 6.25% Notes Due 2025 

On August 28, 2018, the Company issued $40.0 million in aggregate principal amount of our 6.25% fixed-rate notes due 2025 (the
“2025 Notes”) for net proceeds of $38.7 million after deducting underwriting commissions of approximately $1.3 million. Offering costs incurred were approximately $0.3 million. The issuance included the full exercise of the
underwriters’ option to purchase an additional $5.0 million aggregate principal amount of 2025 Notes within 30 days. Interest on the 2025 Notes is paid quarterly in arrears on February 28, May 31, August 31 and
November 30, at a rate of 6.25% per year, beginning November 30, 2018. The 2025 Notes mature on August 31, 2025 and commencing August 31, 2021, may be redeemed in whole or in part at any time or from time to time at our option.
The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.6 million related to the 2025 Notes have been capitalized and are being amortized over
the term of the 2025 Notes. 
 On February 5, 2019, the Company completed a re-opening and up-sizing of its existing 2025 Notes by issuing an additional $20.0 million in aggregate principal amount for net proceeds of $19.2 million after deducting
underwriting commissions of approximately $0.6 million and discount of $0.2 million. Offering costs incurred were approximately $0.2 million. The issuance included the full exercise of the underwriters’ option to purchase an
additional $2.5 million aggregate principal amount of 2025 Notes within 30 days. Interest rate, interest payment dates and maturity remain unchanged from the existing 2025 Notes issued in August 2018. The net proceeds from this offering were
used for general corporate purposes in accordance with our investment objective and strategies. The financing costs and discount of $1.0 million related to the 2025 Notes have been capitalized and are being amortized over the term of the 2025
Notes. At February 29, 2020, the total 2025 Notes outstanding was $60.0 million. The 2025 Notes are listed on the NYSE under the trading symbol “SAF” with a par value of $25.00 per share. 

The 2025 Notes were issued under a base indenture (the “Base Indenture”), dated May 10, 2013, by and between the Company and
U.S. Bank National Association (“Trustee”), as supplemented by the third supplemental indenture dated August 28, 2018 (together with the Base Indenture, the “Indenture”). 

  
 5 

 General 

For purposes of this description, any reference to the payment of principal of, or premium or interest, if any, on the 2025 Notes will include
additional amounts if required by the terms of such 2025 Notes. 
 As required by federal law for all bonds and notes of companies that are
publicly offered, the debt securities are governed by a document called an “indenture.” An indenture is a contract between us and the financial institution acting as trustee on your behalf, and is subject to and governed by the Trust
Indenture Act of 1939, as amended. The trustee has two main roles. First, the trustee can enforce your rights against us if we default. There are some limitations on the extent to which the trustee acts on your behalf, described in the second
paragraph under “Events of Default—Remedies if an Event of Default Occurs.” Second, the trustee performs certain administrative duties for us with respect to our debt securities. 

The Indenture provides that any debt securities may be issued under the Indenture in one or more series. The Indenture does not limit the
amount of debt securities that may be issued thereunder from time to time. Debt securities issued under the Indenture, when a single trustee is acting for all debt securities issued under the Indenture, are called the “indenture
securities.” The Indenture also provides that there may be more than one trustee thereunder, each with respect to one or more different series of indenture securities. See “Resignation of Trustee” below. At a time when two or more
trustees are acting under the Indenture, each with respect to only certain series, the term “indenture securities” means the one or more series of debt securities with respect to which each respective trustee is acting. In the event that
there is more than one trustee under the Indenture, the powers and trust obligations of each trustee will extend only to the one or more series of indenture securities for which it is trustee. If two or more trustees are acting under the Indenture,
then the indenture securities for which each trustee is acting would be treated as if issued under separate indentures. 
 The Indenture
does not contain any provisions that give you protection in the event we issue a large amount of debt or we are acquired by another entity. 

We have the ability to issue indenture securities with terms different from those of indenture securities previously issued and, without the
consent of the holders thereof, to reopen a previous issue of a series of indenture securities and issue additional indenture securities of that series unless the reopening was restricted when that series was created. 

Optional Redemption 
 The 2025 Notes may
be redeemed in whole or in part at any time or from time to time at our option on or after August 31, 2021 upon not less than 30 days nor more than 60 days written notice by mail prior to the date fixed for redemption thereof, at a
redemption price of 100% of the outstanding principal amount of the 2025 Notes to be redeemed plus accrued and unpaid interest payments otherwise payable thereon for the then-current quarterly interest period accrued to the date fixed for
redemption. 
 You may be prevented from exchanging or transferring the 2025 Notes when they are subject to redemption. In case any 2025
Notes are to be redeemed in part only, the redemption notice will provide that, upon surrender of such 2025 Note, you will receive, without a charge, a new Note or Notes of authorized denominations representing the principal amount of your remaining
unredeemed 2025 Notes. Any exercise of our option to redeem the 2025 Notes will be done in compliance with the 1940 Act. 
 If we redeem
only some of the 2025 Notes, the Trustee will determine the method for selection of the particular 2025 Notes to be redeemed, in accordance with the Indenture and the 1940 Act and in accordance with the rules of any national securities exchange or
quotation system on which the 2025 Notes are listed. Unless we default in payment of the redemption price, on and after the date of redemption, interest will cease to accrue on the 2025 Notes called for redemption. 

  
 6 

 Ranking of Notes 

The 2025 Notes will be our direct unsecured obligations and will rank: 

 

	 	•	 	 pari passu with, which means equal to, all outstanding and future unsecured unsubordinated
indebtedness; 

  

	 	•	 	 senior to any of our future indebtedness that expressly provides it is subordinated to the 2025 Notes;

  

	 	•	 	 effectively subordinated to all of our existing and future secured indebtedness (including indebtedness that is
initially unsecured to which we subsequently grant security), to the extent of the value of the assets securing such indebtedness; and 

  

	 	•	 	 structurally subordinated to all existing and future indebtedness and other obligations of any of the
Company’s subsidiaries and financing vehicles since the 2025 Notes are obligations exclusively of Saratoga Investment Corp. and not of any of our subsidiaries. Structural subordination means that creditors of a parent entity are subordinate to
creditors of a subsidiary entity with respect to the subsidiary’s assets. 

 Denominations 

The 2025 Notes are issued in denominations of $25 and integral multiples of $25 in excess thereof. 

Sinking Fund 
 The 2025 Notes will not be
subject to any sinking fund (i.e., no amounts will be set aside by us to ensure repayment of the 2025 Notes at maturity). As a result, our ability to repay the 2025 Notes at maturity will depend on our financial condition on the date that we are
required to repay the 2025 Notes. 
 Book-Entry Holders 

The 2025 Notes were issued as registered securities in book-entry form only. We will issue registered debt securities
in book-entry form only, unless we specify otherwise in the applicable prospectus supplement. This means debt securities will be represented by one or more global securities registered in the name of a depositary that will hold them on
behalf of financial institutions that participate in the depositary’s book-entry system. These participating institutions, in turn, hold beneficial interests in the debt securities held by the depositary or its nominee. These
institutions may hold these interests on behalf of themselves or customers. 
 Under the Indenture, only the person in whose name a debt
security is registered is recognized as the holder of that debt security. Consequently, for debt securities issued in book-entry form, we will recognize only the depositary as the holder of the debt securities and we will make all payments
on the debt securities to the depositary. The depositary will then pass along the payments it receives to its participants, which in turn will pass the payments along to their customers who are the beneficial owners. The depositary and its
participants do so under agreements they have made with one another or with their customers; they are not obligated to do so under the terms of the debt securities. 

As a result, investors will not own debt securities directly. Instead, they will own beneficial interests in a global security, through a bank, broker or
other financial institution that participates in the depositary’s book-entry system or holds an interest through a participant. As long as the debt securities are represented by one or more global securities, investors will be
indirect holders, and not holders, of the debt securities. 
 Global Securities 

As noted above, the 2025 Notes will be issued in book-entry form and represented by a global security that we deposit with and register in the
name of The Depository Trust Company, New York, New York, known as DTC, or its nominee. A global security may not be transferred to or registered in the name of anyone other than the depositary or its nominee, unless special termination situations
arise. As a result of these arrangements, the depositary, or its nominee, will be the sole registered owner and holder of all the 2025 Notes represented by a global security, and investors will be permitted to own only beneficial interests in a
global security. 
 Termination of a Global Security 

If a global security is terminated for any reason, interests in it will be exchanged for certificates in
non-book-entry form (certificated securities). After that exchange, the choice of whether to hold the certificated 2025 Notes directly or in street name will be up to the investor. Investors must consult their
own banks or brokers to find out how to have their interests in a global security transferred on termination to their own names, so that they will be holders. 

  
 7 

 Payment and Paying Agents 

We will pay interest to the person listed in the Trustee’s records as the owner of the 2025 Notes at the close of business on a particular
day in advance of each due date for interest, even if that person no longer owns the 2025 Note on the interest due date. That day, usually about two weeks in advance of the interest due date, is called the “record date.” Because we will
pay all the interest for an interest period to the holders on the record date, holders buying and selling the 2025 Notes must work out between themselves the appropriate purchase price. The most common manner is to adjust the sales price of the 2025
Notes to prorate interest fairly between buyer and seller based on their respective ownership periods within the particular interest period. This prorated interest amount is called “accrued interest.” 

Payments on Global Securities 
 We will
make payments on the 2025 Notes so long as they are represented by a global security in accordance with the applicable policies of the depositary as in effect from time to time. Under those policies, we will make payments directly to the depositary,
or its nominee, and not to any indirect holders who own beneficial interests in the global security. An indirect holder’s right to those payments will be governed by the rules and practices of the depositary and its participants. 

Payment When Offices Are Closed 
 If any
payment is due on the 2025 Notes on a day that is not a business day, we will make the payment on the next day that is a business day. Payments made on the next business day in this situation will be treated under the Indenture as if they were made
on the original due date. Such payment will not result in a default under the 2025 Notes or the Indenture, and no interest will accrue on the payment amount from the original due date to the next day that is a business day. 

Events of Default 
 You will have rights
if an Event of Default occurs in respect of the 2025 Notes, as described later in this subsection. 
 The term “Event of Default”
in respect of the 2025 Notes means any of the following: 
  

	 	•	 	 we do not pay the principal (or premium, if any) of any 2025 Note when due; 

 

	 	•	 	 we do not pay interest on any 2025 Note when due, and such default is not cured within 30 days;

  

	 	•	 	 we remain in breach of a covenant in respect of the 2025 Notes for 60 days after we receive a written notice
of default stating we are in breach (the notice must be sent by either the Trustee or holders of at least 25% of the principal amount of the 2025 Notes); 

  

	 	•	 	 we file for bankruptcy or certain other events of bankruptcy, insolvency or reorganization occur and in the case
of certain orders or decrees entered against us under bankruptcy law, such order or decree remains undischarged or unstayed for a period of 60 days; or 

  

	 	•	 	 on the last business day of each of twenty-four consecutive calendar months, the 2025 Notes have the asset
coverage, as defined in the 1940 Act, of less than 100% after giving effect to any exemptive relief granted to us by the SEC. 

An Event of Default for the 2025 Notes does not necessarily constitute an Event of Default for any other series of debt securities issued
under the same or any other indenture. The Trustee may withhold notice to the holders of the 2025 Notes of any default, except in the payment of principal or interest, if it in good faith considers the withholding of notice to be in the best
interests of the holders. 
 Remedies if an Event of Default Occurs 

If an Event of Default has occurred and is continuing, the Trustee or the holders of not less than 25% in principal amount of the 2025 Notes
may declare the entire principal amount of all the 2025 Notes to be due and immediately payable. This is called a declaration of acceleration of maturity. In certain circumstances, a declaration of acceleration of maturity may be canceled by the
holders of a majority in principal amount of the 2025 Notes if (1) we have deposited with the Trustee all amounts due and owing with respect to the 2025 Notes (other than principal that has become due solely by reason of such acceleration) and
certain other amounts, and (2) any other Events of Default have been cured or waived. 

  
 8 

 Except in cases of default, where the Trustee has some special duties, the Trustee is not
required to take any action under the Indenture at the request of any holders unless the holders offer the Trustee reasonable protection from expenses and liability (called an “indemnity”). If reasonable indemnity is provided, the holders
of a majority in principal amount of the 2025 Notes may direct the time, method and place of conducting any lawsuit or other formal legal action seeking any remedy available to the Trustee. The Trustee may refuse to follow those directions in
certain circumstances. No delay or omission in exercising any right or remedy will be treated as a waiver of that right, remedy or Event of Default. 

Before you are allowed to bypass the Trustee and bring your own lawsuit or other formal legal action or take other steps to enforce your
rights or protect your interests relating to the 2025 Notes, the following must occur: 
  

	 	•	 	 you must give the Trustee written notice that an Event of Default has occurred and remains uncured;

  

	 	•	 	 the holders of at least 25% in principal amount of all the 2025 Notes must make a written request that the
Trustee take action because of the default and must offer reasonable indemnity and/or security to the Trustee against the cost and other liabilities of taking that action; 

 

	 	•	 	 the Trustee must not have taken action for 60 days after receipt of the above notice and offer of indemnity
and/or security; and 

  

	 	•	 	 the holders of a majority in principal amount of the 2025 Notes must not have given the Trustee a direction
inconsistent with the above notice during that 60-day period. 

 However, you are
entitled at any time to bring a lawsuit for the payment of money due on your 2025 Notes on or after the due date. 
 Book-entry and other
indirect holders should consult their banks or brokers for information on how to give notice or direction to or make a request of the Trustee and how to declare or cancel an acceleration of maturity. 

Each year, we will furnish to the Trustee a written statement of certain of our officers certifying that to their knowledge we are in
compliance with the Indenture and the 2025 Notes, or else specifying any default. 
 Waiver of Default 

The holders of a majority in principal amount of the 2025 Notes may waive any past defaults other than other than: 

 

	 	•	 	 the payment of principal or interest; or 

 

	 	•	 	 in respect of a covenant that cannot be modified or amended without the consent of each holder.

 Merger or Consolidation 

Under the terms of the Indenture, we are generally permitted to consolidate or merge with another entity. We are also permitted to sell all or
substantially all of our assets to another entity. However, we may not take any of these actions unless all the following conditions are met: 
  

	 	•	 	 where we merge out of existence or convey or transfer our assets substantially as an entirety, the resulting
entity must agree to be legally responsible for our obligations under the 2025 Notes; 

  

	 	•	 	 the merger or sale of assets must not cause a default on the 2025 Notes and we must not already be in default
(unless the merger or sale would cure the default). For purposes of this no-default test, a default would include an Event of Default that has occurred and has not been cured, as described under “Events
of Default” above. A default for this purpose would also include any event that would be an Event of Default if the requirements for giving us a notice of default or our default having to exist for a specific period of time were disregarded;
and 

  
 9 

	 	•	 	 we must deliver certain certificates and documents to the Trustee. 

Modification or Waiver 
 There are three
types of changes we can make to the Indenture and the 2025 Notes issued thereunder. 
 Changes Requiring Your Approval 

First, there are changes that we cannot make to your 2025 Notes without your specific approval. The following is a list of those types of
changes: 
  

	 	•	 	 change the stated maturity of the principal of or interest on the 2025 Notes; 

 

	 	•	 	 reduce any amounts due on the 2025 Notes; 

 

	 	•	 	 reduce the amount of principal payable upon acceleration of the maturity of a 2025 Note following a default;

  

	 	•	 	 change the place or currency of payment on a 2025 Note; 

 

	 	•	 	 impair your right to sue for payment; 

 

	 	•	 	 reduce the percentage of holders of 2025 Notes whose consent is needed to modify or amend the Indenture; and

  

	 	•	 	 reduce the percentage of holders of 2025 Notes whose consent is needed to waive compliance with certain
provisions of the Indenture or to waive certain defaults. 

 Changes Not Requiring Approval 

The second type of change does not require any vote by the holders of the 2025 Notes. This type is limited to clarifications and certain other
changes that would not adversely affect holders of the 2025 Notes in any material respect. 
 Changes Requiring Majority Approval 

Any other change to the Indenture and the 2025 Notes would require the following approval: 

 

	 	•	 	 if the change affects only the 2025 Notes, it must be approved by the holders of a majority in principal amount
of the 2025 Notes; and 

  

	 	•	 	 if the change affects more than one series of debt securities issued under the same indenture, it must be
approved by the holders of a majority in principal amount of all of the series affected by the change, with all affected series voting together as one class for this purpose. 

In each case, the required approval must be given by written consent. 

The holders of a majority in principal amount of all of the series of debt securities issued under an indenture, voting together as one class
for this purpose, may waive our compliance with some of our covenants in that indenture. However, we cannot obtain a waiver of a payment default or of any of the matters covered by the bullet points included above under “Changes Requiring Your
Approval.” 
 Further Details Concerning Voting 

When taking a vote, we will use the following rules to decide how much principal to attribute to the 2025 Notes: 

The 2025 Notes will not be considered outstanding, and therefore not eligible to vote, if we have deposited or set aside in trust money for
their payment or redemption. The 2025 Notes will also not be eligible to vote if they have been fully defeased as described later under “Defeasance—Full Defeasance.” 

We will generally be entitled to set any day as a record date for the purpose of determining the holders of the 2025 Notes that are entitled
to vote or take other action under the Indenture. However, the record date may not be more than 30 days before the date of the first solicitation of holders to vote on or take such action. If we set a record date for a vote or other action to
be taken by holders of the 2025 Notes, that vote or action may be taken only by persons who are holders of the 2025 Notes on the record date and must be taken within eleven months following the record date. 

  
 10 

 Book-entry and other indirect holders should consult their banks or brokers for
information on how approval may be granted or denied if we seek to change the Indenture or the 2025 Notes or request a waiver. 
 Defeasance 

The following defeasance provisions will be applicable to the 2025 Notes. “Defeasance” means that, by depositing with a Trustee an
amount of cash and/or government securities sufficient to pay all principal and interest, if any, on the 2025 Notes when due and satisfying any additional conditions noted below, we will be deemed to have been discharged from our obligations under
the 2025 Notes. In the event of a “covenant defeasance,” upon depositing such funds and satisfying similar conditions discussed below we would be released from the restrictive covenants under the Indenture relating to the 2025 Notes. 

Covenant Defeasance 
 Under current
U.S. federal tax law and the Indenture, we can make the deposit described below and be released from some of the restrictive covenants in the Indenture under which the 2025 Notes were issued. This is called “covenant defeasance.” In that
event, you would lose the protection of those restrictive covenants but would gain the protection of having money and government securities set aside in trust to repay your Notes. If we achieve covenant defeasance and your 2025 Notes were
subordinated, such subordination would not prevent the Trustee under the Indenture from applying the funds available to it from the deposit described in the first bullet to the payment of amounts due in respect of such debt securities for the
benefit of the subordinated debtholders. In order to achieve covenant defeasance, we must do the following: 
  

	 	•	 	 Since the 2025 Notes are denominated in U.S. dollars, we must deposit in trust for the benefit of all holders of
the 2025 Notes a combination of cash and U.S. government or U.S. government agency notes or bonds that will generate enough cash to make interest, principal and any other payments on the 2025 Notes on their various due dates; 

 

	 	•	 	 we must deliver to the Trustee a legal opinion of our counsel confirming that, under current U.S. federal income
tax law, we may make the above deposit without causing you to be taxed on the 2025 Notes any differently than if we did not make the deposit; 

  

	 	•	 	 we must deliver to the Trustee a legal opinion of our counsel stating that the above deposit does not require
registration by us under the 1940 Act, and a legal opinion and officers’ certificate stating that all conditions precedent to covenant defeasance have been complied with; 

 

	 	•	 	 defeasance must not result in a breach or violation of, or result in a default under, the Indenture or any of our
other material agreements or instruments; and 

  

	 	•	 	 no default or event of default with respect to the 2025 Notes shall have occurred and be continuing and no
defaults or events of default related to bankruptcy, insolvency or reorganization shall occur during the next 90 days. 

If we accomplish covenant defeasance, you can still look to us for repayment of the 2025 Notes if there were a shortfall in the trust deposit
or the Trustee is prevented from making payment. In fact, if one of the remaining Events of Default occurred (such as our bankruptcy) and the 2025 Notes became immediately due and payable, there might be a shortfall. Depending on the event causing
the default, you may not be able to obtain payment of the shortfall. 
 Full Defeasance 

If there is a change in U.S. federal tax law, as described below, we can legally release ourselves from all payment and other obligations on
the 2025 Notes (called “full defeasance”) if we put in place the following other arrangements for you to be repaid: 
  

	 	•	 	 Since the 2025 Notes are denominated in U.S. dollars, we must deposit in trust for the benefit of all holders of
the 2025 Notes a combination of money and U.S. government or U.S. government agency notes or bonds that will generate enough cash to make interest, principal and any other payments on the 2025 Notes on their various due dates; 

  
 11 

	 	•	 	 we must deliver to the Trustee a legal opinion confirming that there has been a change in current U.S. federal
tax law or an IRS ruling that allows us to make the above deposit without causing you to be taxed on the 2025 Notes any differently than if we did not make the deposit. Under current U.S. federal tax law the deposit and our legal release from the
2025 Notes would be treated as though we paid you your share of the cash and notes or bonds at the time the cash and notes or bonds were deposited in trust in exchange for your 2025 Notes and you would recognize gain or loss on the 2025 Notes at the
time of the deposit; 

  

	 	•	 	 we must deliver to the Trustee a legal opinion of our counsel stating that the above deposit does not require
registration by us under the 1940 Act, and a legal opinion and officers’ certificate stating that all conditions precedent to defeasance have been complied with; 

 

	 	•	 	 defeasance must not result in a breach or violation of, or constitute a default under, of the Indenture or any of
our other material agreements or instruments; and 

  

	 	•	 	 no default or event of default with respect to the 2025 Notes shall have occurred and be continuing and no
defaults or events of default related to bankruptcy, insolvency or reorganization shall occur during the next 90 days. 

If we ever did accomplish full defeasance, as described above, you would have to rely solely on the trust deposit for repayment of the 2025
Notes. You could not look to us for repayment in the unlikely event of any shortfall. Conversely, the trust deposit would most likely be protected from claims of our lenders and other creditors if we ever became bankrupt or insolvent. If your 2025
Notes were subordinated, such subordination would not prevent the Trustee under the Indenture from applying the funds available to it from the deposit referred to in the first bullet of the preceding paragraph to the payment of amounts due in
respect of such 2025 Notes for the benefit of the subordinated debtholders. 
 Form, Exchange and Transfer of Certificated Registered Securities 

If registered 2025 Notes cease to be issued in book-entry form, they will be issued: 

 

	 	•	 	 only in fully registered certificated form; 

 

	 	•	 	 without interest coupons; and 

 

	 	•	 	 unless we indicate otherwise, in denominations of $25 and amounts that are multiples of $25.

 Holders may exchange their certificated securities for 2025 Notes of smaller denominations or combined into fewer 2025
Notes of larger denominations, as long as the total principal amount is not changed and as long as the denomination is equal to or greater than $25. 

Holders may exchange or transfer their certificated securities at the office of the Trustee. We have appointed the Trustee to act as our agent
for registering 2025 Notes in the names of holders transferring 2025 Notes. We may appoint another entity to perform these functions or perform them ourselves. 

Holders will not be required to pay a service charge to transfer or exchange their certificated securities, but they may be required to pay
any tax or other governmental charge associated with the transfer or exchange. The transfer or exchange will be made only if our transfer agent is satisfied with the holder’s proof of legal ownership. 

We may appoint additional transfer agents or cancel the appointment of any particular transfer agent. We may also approve a change in the
office through which any transfer agent acts. 
 If any certificated securities of a particular series are redeemable and we redeem less
than all the debt securities of that series, we may block the transfer or exchange of those debt securities during the period beginning 15 days before the day we mail the notice of redemption and ending on the day of that mailing, in order to
freeze the list of holders to prepare the mailing. We may also refuse to register transfers or exchanges of any certificated securities selected for redemption, except that we will continue to permit transfers and exchanges of the unredeemed portion
of any debt security that will be partially redeemed. 

  
 12 

 If a registered debt security is issued in book-entry form, only the depositary will be
entitled to transfer and exchange the debt security as described in this subsection, since it will be the sole holder of the debt security. 

Resignation of Trustee 
 The Trustee may
resign or be removed with respect to the 2025 Notes provided that a successor trustee is appointed to act with respect to the 2025 Notes. In the event that two or more persons are acting as trustee with respect to different series of indenture
securities under the Indenture, each of the trustees will be a trustee of a trust separate and apart from the trust administered by any other trustee. 

Indenture Provisions—Subordination 

Upon any distribution of our assets upon our dissolution, winding up, liquidation or reorganization, the payment of the principal of (and
premium, if any) and interest, if any, on any indenture securities denominated as subordinated debt securities is to be subordinated to the extent provided in the Indenture in right of payment to the prior payment in full of all Senior Indebtedness
(as defined below), but our obligation to you to make payment of the principal of (and premium, if any) and interest, if any, on such subordinated debt securities will not otherwise be affected. In addition, no payment on account of principal (or
premium, if any), sinking fund or interest, if any, may be made on such subordinated debt securities at any time unless full payment of all amounts due in respect of the principal (and premium, if any), sinking fund and interest on Senior
Indebtedness has been made or duly provided for in money or money’s worth. 
 In the event that, notwithstanding the foregoing, any
payment by us is received by the Trustee in respect of subordinated debt securities or by the holders of any of such subordinated debt securities, upon our dissolution, winding up, liquidation or reorganization before all Senior Indebtedness is paid
in full, the payment or distribution received by the Trustee in respect of such subordinated debt securities or by the holders of any of such subordinated debt securities must be paid over to the holders of the Senior Indebtedness or on their behalf
for application to the payment of all the Senior Indebtedness remaining unpaid until all the Senior Indebtedness has been paid in full, after giving effect to any concurrent payment or distribution to the holders of the Senior Indebtedness. Subject
to the payment in full of all Senior Indebtedness upon this distribution by us, the holders of such subordinated debt securities will be subrogated to the rights of the holders of the Senior Indebtedness to the extent of payments made to the holders
of the Senior Indebtedness out of the distributive share of such subordinated debt securities. 
 By reason of this subordination, in the
event of a distribution of our assets upon our insolvency, certain of our senior creditors may recover more, ratably, than holders of any subordinated debt securities or the holders of any indenture securities that are not Senior Indebtedness. The
Indenture provides that these subordination provisions will not apply to money and securities held in trust under the defeasance provisions of the Indenture. 

Senior Indebtedness is defined in the Indenture as the principal of (and premium, if any) and unpaid interest on: 

 

	 	•	 	 our indebtedness (including indebtedness of others guaranteed by us), whenever created, incurred, assumed or
guaranteed, for money borrowed, that we have designated as “Senior Indebtedness” for purposes of the Indenture and in accordance with the terms of the Indenture (including any indenture securities designated as Senior Indebtedness), and

  

	 	•	 	 renewals, extensions, modifications and refinancings of any of this indebtedness. 

The Trustee under the Indenture 
 U.S.
Bank National Association serves as the Trustee under the Indenture. 

  
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