Document:

Exhibit 10.3

 

SECOND AMENDED AND RESTATED

NOTE FUNDING AGREEMENT

Between

 

HORIZON FUNDING I, LLC,

 

as Issuer,

 

and

 

NEW
YORK LIFE INSURANCE AND ANNUITY CORPORATION, NEW YORK LIFE

INSURANCE COMPANY, NEW YORK LIFE INSURANCE AND ANNUITY

CORPORATION INSTITUTIONALLY OWNED LIFE INSURANCE SEPARATE ACCOUNT

(BOLI 30C) AND NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

INSTITUTIONALLY OWNED LIFE INSURANCE SEPARATE ACCOUNT (BOLI 30E)

AND THE BANK OF NEW YORK MELLON, A BANKING CORPORATION ORGANIZED

UNDER THE LAWS OF NEW YORK, NOT IN ITS INDIVIDUAL CAPACITY BUT

SOLELY AS TRUSTEE UNDER THAT CERTAIN TRUST AGREEMENT DATED AS OF

JULY 1ST, 2015 BETWEEN NEW YORK LIFE INSURANCE COMPANY, AS GRANTOR,

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.), AS BENEFICIARY, JOHN

HANCOCK LIFE INSURANCE COMPANY OF NEW YORK, AS BENEFICIARY, AND

THE BANK OF NEW YORK MELLON, AS TRUSTEE

 

as the Initial Purchasers

 

dated as of February 25, 2022

 

     

     

    

 

TABLE OF CONTENTS

 

		 	Page

 

	ARTICLE I.     DEFINITIONS	1
	 	SECTION 1.1	 	Certain Defined Terms	1
	 	SECTION 1.2	 	Other Definitional Provisions	3
	 	 	 	 	 
	ARTICLE II.    PURCHASE OF NOTES; ADVANCES	3
	 	SECTION 2.1	 	Purchase of Notes; Initial Advance; Commitment	3
	 	SECTION 2.2	 	Procedures for Advances	4
	 	 	 	 	 
	ARTICLE III.   CONDITIONS TO ADVANCES	5
	 	SECTION 3.1	 	Conditions Precedent to Advances	5
	 	 	 	 	 
	ARTICLE IV.   CLOSING AND AMENDMENT	6
	 	SECTION 4.1	 	Amendment	6
	 	 	 	 	 
	ARTICLE V.    REPRESENTATIONS AND WARRANTIES  WITH RESPECT TO THE INITIAL PURCHASERS	6
	 	SECTION 5.1	 	Securities Laws; Transfer Restrictions	6
	 	 	 	 	 
	ARTICLE VI.   COVENANTS	7
	 	SECTION 6.1	 	Reports and Notices under the Transaction Documents	7
	 	SECTION 6.2	 	Amendments to Indenture and Sale and Servicing Agreement	7
	 	 	 	 	 
	ARTICLE VII. MISCELLANEOUS	7
	 	SECTION 7.1	 	Amendments	7
	 	SECTION 7.2	 	Notices	7
	 	SECTION 7.3	 	No Waiver; Remedies	8
	 	SECTION 7.4	 	Binding Effect; Assignability	8
	 	SECTION 7.5	 	Confidentiality	8
	 	SECTION 7.6	 	GOVERNING LAW; JURISDICTION	9
	 	SECTION 7.7	 	Wavier of Trial by Jury	9
	 	SECTION 7.8	 	Execution in Counterparts	9
	 	SECTION 7.9	 	No Recourse	9
	 	SECTION 7.10	 	No Petition	10
	 	SECTION 7.11	 	Survival	10
	 	SECTION 7.12	 	Waiver of Special Damages	10

 

    -i- 

     

    

 

TABLE OF CONTENTS

 

Page

 

EXHIBITS

 

		Exhibit A	Form of Advance Request

 

    -ii- 

     

    

 

 

This SECOND AMENDED AND RESTATED
NOTE FUNDING AGREEMENT (this “Agreement”), dated as of February 25, 2022, is by and among HORIZON FUNDING I, LLC, as
Issuer (the “Issuer”), NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION, NEW YORK LIFE INSURANCE COMPANY, NEW YORK LIFE
INSURANCE AND ANNUITY CORPORATION INSTITUTIONALLY OWNED LIFE INSURANCE SEPARATE ACCOUNT (BOLI 30C), NEW YORK LIFE INSURANCE AND ANNUITY
CORPORATION INSTITUTIONALLY OWNED LIFE INSURANCE SEPARATE ACCOUNT (BOLI 30E), and THE BANK OF NEW YORK MELLON, A BANKING CORPORATION ORGANIZED
UNDER THE LAWS OF NEW YORK, NOT IN ITS INDIVIDUAL CAPACITY BUT SOLELY AS TRUSTEE UNDER THAT CERTAIN TRUST AGREEMENT DATED AS OF JULY 1ST,
2015 BETWEEN NEW YORK LIFE INSURANCE COMPANY, AS GRANTOR, JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.), AS BENEFICIARY, JOHN HANCOCK LIFE
INSURANCE COMPANY OF NEW YORK, AS BENEFICIARY, AND THE BANK OF NEW YORK MELLON, AS TRUSTEE, as initial purchasers (the “Initial
Purchasers”).

 

RECITALS

 

WHEREAS, the Issuer issued the
Notes (the “Notes”) pursuant to an Indenture, dated as of June 1, 2018 (as amended, supplemented or otherwise modified
from time to time, the “Indenture”), between the Issuer and U.S. Bank National Association, as Trustee (the “Trustee”);

 

WHEREAS, the Initial Purchasers
previously acquired such Notes and have committed to fund Advances (as defined below) in an amount not to exceed the Commitment Amount
(as defined below);

 

WHEREAS, reference is made to
the Amended and Restated Note Funding Agreement, dated as June 5, 2020 (the “First Amended and Restated NFA”), by and
among the Issuer and the Initial Purchasers;

 

WHEREAS,
the parties hereto desire to amend and restate the First Amended and Restated NFA in its entirety, pursuant to and in accordance
with Section 7.1 of the First Amended and Restated NFA;

 

NOW, THEREFORE, based upon the
above Recitals, the mutual premises and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

 

ARTICLE
I.

 

DEFINITIONS

 

SECTION
1.1 Certain Defined Terms. Capitalized terms used herein without definition shall have the meanings set forth in the Indenture
and the Sale and Servicing Agreement. Additionally, the following terms shall have the following meanings:

 

“Advance”
means an advance made by the Initial Purchasers to the Issuer under and in accordance with the terms of this Agreement.

 

    

     

    

 

“Advance Account”
shall mean, unless another account is specified by the Issuer in the Advance Request, the Principal Reinvestment Account.

 

“Advance Date”
means the day on which the Initial Purchasers make an Advance in accordance with and subject to the terms and conditions of this Agreement.

 

“Advance Availability”
means, for any Advance Date, the lesser of (i) the Commitment Amount minus the Aggregate Outstanding Note Balance and (ii) the Borrowing
Base minus the Aggregate Outstanding Note Balance, in each case measured as of the Business Day before the Issuer’s delivery of
an Advance Request (giving pro forma effect to the Advance requested and any Loans to be acquired on the proposed Advance Date). Following
the occurrence of the Investment Period Termination Date, the Advance Availability shall be zero.

 

“Advance Request”
means a written notice in the form of Exhibit A, to be used by the Issuer to request the funding of an Advance from the Initial
Purchasers.

 

“Amendment Date”
has the meaning specified in Section 4.3.

 

“Commitment Amount”
means, collectively, the commitment of the Initial Purchasers to fund Advances during the Investment Period in an amount not to exceed
$200,000,000 in the aggregate outstanding at any given time.

 

“Indenture”
has the meaning specified in the recitals.

 

“Initial Advance”
has the meaning specified in Section 2.1(a).

 

“Initial Purchasers”
is defined in the Preamble.

 

“Percentage Interest”
means, for New York Life Insurance and Annuity Corporation, 27%, New York Life Insurance Company, 68%, New York Life Insurance and Annuity
Corporation Institutionally Owned Life Insurance Separate Account (BOLI 30C), 2%, New York Life Insurance and Annuity Corporation Institutionally
Owned Life Insurance Separate Account (BOLI 30E), 1%, and The Bank of New York Mellon, a banking corporation organized under the laws
of New York, not in its individual capacity but solely as Trustee under that certain Trust Agreement dated as of July 1st,
2015 between New York Life Insurance Company, as Grantor, John Hancock Life Insurance Company (U.S.A.), as Beneficiary, John Hancock Life
Insurance Company of New York, as Beneficiary, and The Bank of New York Mellon, as Trustee, 2%.

 

“Sale and Servicing
Agreement” means that certain sale and servicing agreement, as amended, by and among the Issuer, Horizon Secured Loan Fund I
LLC, as Originator and Seller, Horizon Technology Finance Corporation, as Servicer and U.S. Bank, National Association, as Trustee, Backup
Servicer, Custodian, Lockbox Bank and Securities Intermediary.

 

    2

     

    

 

SECTION
1.2 Other Definitional Provisions. (a) All terms defined in this Agreement shall have the meanings defined herein when used
in any certificate or other document made or delivered pursuant hereto unless otherwise defined therein.

 

(b)           As used herein and in any certificate or other document made or delivered pursuant hereto or thereto, accounting terms not defined
in Section 1.1 hereof, and accounting terms partially defined in Section 1.1 hereof to the extent not defined,
shall have the respective meanings given to them under GAAP. To the extent that the definitions of accounting terms herein are inconsistent
with the meanings of such terms under generally accepted accounting principles, the definitions contained herein shall control.

 

(c)           The words “hereof,” “herein” and “hereunder” and words of similar import when used in this
Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement; and Section, subsection, and
Exhibit references contained in this Agreement are references to Sections, subsections and the Exhibits in or to this Agreement unless
otherwise specified.

 

ARTICLE
II.

 

PURCHASE OF NOTES; ADVANCES

 

SECTION
2.1 Purchase of Notes; Initial Advance; Commitment. (a) On the terms and subject to the conditions set forth in the First
Amended and Restated NFA, New York Life Insurance and Annuity Corporation, New York Life Insurance Company, New York Life Insurance and
Annuity Corporation Institutionally Owned Life Insurance Separate Account (BOLI 30C), New York Life Insurance and Annuity Corporation
Institutionally Owned Life Insurance Separate Account (BOLI 30E) and The Bank of New York Mellon, a banking corporation organized under
the laws of New York, not in its individual capacity but solely as Trustee under that certain Trust Agreement dated as of July 1st,
2015 between New York Life Insurance Company, as Grantor, John Hancock Life Insurance Company (U.S.A.), as Beneficiary, John Hancock Life
Insurance Company of New York, as Beneficiary, and The Bank of New York Mellon, as Trustee acquired Notes with initial Outstanding Note
Balances of up to $27,000,000, up to $68,000,000, up to $2,000,000, up to $1,000,000 and up to $2,000,000, respectively (the “Initial
Advance”). Subject to the terms and conditions of this Agreement, each of New York Life Insurance and Annuity Corporation, New
York Life Insurance Company, New York Life Insurance and Annuity Corporation Institutionally Owned Life Insurance Separate Account (BOLI
30C), New York Life Insurance and Annuity Corporation Institutionally Owned Life Insurance Separate Account (BOLI 30E) and The Bank of
New York Mellon, a banking corporation organized under the laws of New York, not in its individual capacity but solely as Trustee under
that certain Trust Agreement dated as of July 1st, 2015 between New York Life Insurance Company, as Grantor, John Hancock Life
Insurance Company (U.S.A.), as Beneficiary, John Hancock Life Insurance Company of New York, as Beneficiary, and The Bank of New York
Mellon, as Trustee, severally, but not jointly, agree to enlarge upwards the maximum Advances to the Issuer from up to $27,000,000 to
up to $54,000,000, from up to $68,000,000 to up to $136,000,000, from up to $2,000,000 to up to $4,000,000, from up to $1,000,000 to up
to $2,000,000 and from up to $2,000,000 to up to $4,000,000, respectively as of the Amendment date.

 

    3

     

    

 

(b)           Subject
to the terms and conditions of this Agreement, during the Investment Period, each Initial Purchaser agrees to make Advances to the Issuer
in an amount not to exceed its Percentage Interest of the Advance Availability in effect for each Advance Date. The Initial Purchasers
shall have no obligation to make Advances hereunder to the extent any additional Advances would cause the Aggregate Outstanding Note
Balance to exceed the Commitment Amount. Amounts advanced pursuant to this Agreement may be repaid in accordance with Section 7.05(b)(i)(2)
of the Sale and Servicing Agreement and, subject to the terms and conditions of this Agreement, re-borrowed at any time during the Investment
Period.

 

SECTION
2.2 Procedures for Advances. (a) On the terms and conditions hereinafter set forth, the Issuer may, by delivery of an Advance
Request to the Initial Purchasers and the Trustee, from time to time, on any Business Day during the Investment Period, request that each
Initial Purchaser make Advances to it in an amount which, at any time, shall not exceed its Percentage Interest of the Advance Availability
in effect for the proposed Advance Date.

 

(b)           Each
Advance Request shall be delivered not later than 12:00 P.M. (New York time) on the date which is two (2) Business Days prior to
the requested Advance Date; provided, however, that the Issuer may revoke an Advance Request upon written notice to the
Initial Purchasers delivered not later than 12:00 P.M. (New York time) on the Business Day prior to the requested Advance Date.

 

(c)           Each Advance Request shall contain the following information:

 

(i)             the
proposed Advance Date;

 

(ii)            the amount of the requested Advance;

 

(iii)          
the Advance Availability for such Advance Date;

 

(iv)          the
amount of Principal Proceeds to be withdrawn from the Collection Account and deposited to the Principal Reinvestment Account on such
Advance Date;

 

(v)           the Advance Account to which the Advance should be funded; and

 

(vi)          a certification that, as of the related Advance Date, the conditions set forth in Section 3.1 hereof have been satisfied.

 

(d)           Each
Advance Request must be accompanied by (i) a Borrowing Base Certificate as of the Business Day before the Issuer’s delivery
of such Advance Request (giving pro forma effect to the Advance requested and any Loans to be acquired on the proposed Advance Date)
and (ii) an updated List of Loans (including any Loans to be acquired on such Advance Date).

 

(e)           On each Advance Date, upon the satisfaction of the applicable conditions set forth in this Section 2.2 and Article III
hereof, the Initial Purchasers shall transfer to the Advance Account, an amount equal to the requested Advance. Each wire transfer of
an Advance to the Issuer shall be initiated by the Initial Purchasers at the later of (i) 12:00 P.M. (New York time) on the applicable
Advance Date and (ii) satisfaction of the conditions set forth in Section 3.1 hereof.

 

    4

     

    

 

ARTICLE
III.

 

CONDITIONS TO ADVANCES

 

SECTION
3.1 Conditions Precedent to Advances. (a) The Initial Purchasers shall not be obligated to make an Advance on any Advance
Date unless the following conditions have been satisfied or waived by the Initial Purchasers:

 

(i)            The
representations and warranties of the Issuer in Section 3.25 of the Indenture and of the Servicer and the Originator, as applicable,
set forth in Sections 3.01, 3.02, 3.04 and 3.06 of the Sale and Servicing Agreement are true and correct on and as of such Advance
Date, before and after giving effect to such Advance;

 

(ii)           The
Investment Period Termination Date shall not have occurred and as of the date of the Advance Request, (A) the aggregate Outstanding
Loan Balance of Loans that became Defaulted Loans since the Amendment Date is less than $25,000,000 and (B) no Rapid Amortization
Event has occurred since the Amendment Date;

 

(iii)          No
Event of Default, Rapid Amortization Event or Servicer Default has occurred since the Amendment Date or will occur, after giving effect
to such Advance;

 

(iv)          After
giving effect to such Advance and to the application of proceeds therefrom, the Aggregate Outstanding Note Balance will not exceed the
Borrowing Base;

 

(v)           After
giving effect to such Advance and to the application of proceeds therefrom, the Aggregate Outstanding Note Balance shall not exceed the
Commitment Amount;

 

(vi)          The
Issuer shall have caused the Required Loan Documents for any Loans being acquired on such Advance Date to be delivered to the Custodian
in accordance with the Sale and Servicing Agreement;

 

(vii)         To the extent the Issuer is directing that Principal Proceeds be withdrawn from the Collection Account and deposited to the Principal
Reinvestment Account on such Advance Date, the Issuer reasonably believes that funds on deposit in the Collection Account will be sufficient
to pay Required Payments on the next Payment Date; and

 

(viii)        At
the time of any Advance, the Notes have a rating of no lower than “A (low) (sf)” from the Rating Agency.

 

(b)          To
the extent the Initial Purchasers shall fund an Advance on an Advance Date, it shall be deemed to have agreed that each of the foregoing
conditions have been satisfied or waived as to such Advance and Advance Date.

 

    5

     

    

 

ARTICLE
IV.

 

AMENDMENT

 

SECTION
4.1 Amendment. The amendment and restatement of the First Amended and Restated NFA shall occur on at 5:00 P.M. (New York
time), on February 25, 2022 (the “Amendment Date”).

 

ARTICLE
V.

 

REPRESENTATIONS AND WARRANTIES

WITH RESPECT TO THE INITIAL PURCHASERS

 

SECTION
5.1 Securities Laws; Transfer Restrictions. Each Initial Purchaser represents and warrants that:

 

(a)           
it has (i) reviewed the Indenture, the Sale and Servicing Agreement and all other documents which have been provided by the
Issuer to it with respect to the transactions contemplated thereby, (ii) participated in due diligence sessions with the Originator
and (iii) had an opportunity to discuss the Issuer’s, the Servicer’s and the Originator’s businesses, management
and financial affairs, and the terms and conditions of the proposed purchase with the Issuer, the Originator and the Servicer and their
respective representatives;

 

(b)          
it is an “accredited investor” within the meaning of Rule 501(a)(1), (2), (3) or (7) of Regulation D under
the Securities Act and has sufficient knowledge and experience in financial and business matters to be capable of evaluating the merits
and risks of investing in, and it is able and prepared to bear the economic risk of investing in, the Notes;

 

(c)          
it is a “qualified purchaser” within the meaning of Section 2(A)(51) of the Investment Company Act of 1940 pursuant
to an exemption under the Securities Act; and

 

(d)          
it understands and acknowledges and agrees that the Notes are subject to the transfer restrictions set forth in the Indenture.

 

    6

     

    

 

ARTICLE
VI.

 

COVENANTS

 

SECTION
6.1 Reports and Notices under the Transaction Documents. So long as the Initial Purchasers own 100% of the Notes:

 

(a)          
Monthly Report and Liquidation Report. The Issuer will cause each Monthly Report and Liquidation Report under the Sale and
Servicing Agreement to be delivered to the Initial Purchasers, contemporaneously with the delivery thereof to the Trustee.

 

(b)          
Notices. The Issuer will cause a copy of all notices required to be delivered by it or the Servicer under the Sale and Servicing
Agreement or the Indenture to be promptly delivered to the Initial Purchasers.

 

(c)           
Annual Report. Provided that the Initial Purchasers execute such specified user forms as required by the Independent Accountants,
if any, the Issuer will cause to be delivered to the Initial Purchasers the annual reports prepared by the Independent Accountants pursuant
to Article IX of the Sale and Servicing Agreement.

 

SECTION 6.2 Amendments to
Indenture and Sale and Servicing Agreement. Notwithstanding that Section 9.01 of the Indenture permits the Issuer and the Trustee
to enter into a supplemental indenture without the consent of the Noteholders and Section 13.01(a) of the Sale and Servicing Agreement
permits the parties thereto to enter into certain amendments without the consent of the Noteholders, so long as the Initial Purchasers
own 100% of the Notes, the Issuer agrees that it will not enter into any such supplemental indenture or amendment to the Indenture or
the Sale and Servicing Agreement without the prior written consent of the Initial Purchasers.

 

ARTICLE
VII.

 

MISCELLANEOUS

 

SECTION
7.1 Amendments. No amendment or waiver of any provision of this Agreement shall in any event be effective without the written
agreement of the Issuer and the Initial Purchasers.

 

SECTION
7.2 Notices. All notices and other communications hereunder, except as herein otherwise specifically provided, shall be
in writing and, if to the Initial Purchasers, shall be mailed, delivered or telegraphed and confirmed to the Initial Purchasers at the
following address:

 

New York Life Insurance and Annuity Corporation,
New York Life Insurance Company, New York Life Insurance and Annuity Corporation Institutionally Owned Life Insurance Separate Account
(BOLI 30C), New York Life Insurance and Annuity Corporation Institutionally Owned Life Insurance Separate Account (BOLI 30E) or The Bank
of New York Mellon, a banking corporation organized under the laws of New York, not in its individual capacity but solely as Trustee
under that certain Trust Agreement dated as of July 1st, 2015 between New York Life Insurance Company, as Grantor, John Hancock
Life Insurance Company (U.S.A.), as Beneficiary, John Hancock Life Insurance Company of New York, as Beneficiary, and The Bank of New
York Mellon, as Trustee

 

c/o NYL Investors LLC

51 Madison Avenue

2nd Floor, Room 208

New York, New York 10010

 

    7

     

    

 

		Attention:	Fixed Income Investors Group

Private Finance

2nd Floor

Facsimile: (212) 447-4122

 

with an electronic copies to:

 

FIIGLibrary@nylim.com

TraditionalPVtOps@nylim.com

 

if to the Issuer, shall be mailed, delivered or
telegraphed and confirmed to the Issuer at the following address:

 

Horizon Funding I, LLC

312 Farmington Avenue

Farmington, CT 06032

Telephone: 860-674-9977

Fax: 860-676-8655

Email: dtrolio@horizontechfinance.com

 

SECTION
7.3 No Waiver; Remedies. No failure on the part of any party hereto to exercise, and no delay in exercising, any right hereunder
shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise
thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by
law.

 

SECTION
7.4 Binding Effect; Assignability. (a) This Agreement shall be binding on the parties hereto and their respective successors
and assigns; provided, however, that the Issuer may not assign any of its rights or delegate any of its duties hereunder
without the prior written consent of the Initial Purchasers; provided, further that each Initial Purchaser acknowledges
and agrees that it is subject to the transfer restrictions related to the Notes that are set forth in the Indenture.

 

(b)          
This Agreement shall create and constitute the continuing obligation of the parties hereto in accordance with its terms, and shall
remain in full force and effect until such time as all amounts payable with respect to the Notes shall have been paid in full.

 

SECTION
7.5 Confidentiality. Unless otherwise consented to by each of the Initial Purchasers or the Issuer, as applicable, each
of the Initial Purchasers and the Issuer hereby agree that it will not disclose the contents of any Transaction Document, or any other
confidential or proprietary information furnished by the Initial Purchasers or the Issuer, to any Person other than its Affiliates (which
Affiliates shall have executed an agreement satisfactory in form and in substance to the Purchaser to be bound by this Section 7.5),
auditors and attorneys or as required by applicable law.

 

    8

     

    

 

SECTION
7.6 GOVERNING LAW; JURISDICTION. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL
OBLIGATIONS LAW). EACH OF THE PARTIES TO THIS AGREEMENT HEREBY AGREES TO THE NON-EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT
COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND ANY APPELLATE COURT HAVING JURISDICTION TO REVIEW THE JUDGMENTS THEREOF. EACH OF THE PARTIES
HEREBY WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS AND ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER IN ANY
OF THE AFOREMENTIONED COURTS AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT.

 

SECTION
7.7 Wavier of Trial by Jury. To the extent permitted by applicable law, each of the parties hereto irrevocably waives all
right of trial by jury in any action, proceeding or counterclaim arising out of or in connection with this Agreement or any matter arising
hereunder.

 

SECTION
7.8 Execution in Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto
in separate counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall
constitute one and the same agreement.

 

SECTION
7.9 No Recourse. Notwithstanding anything to the contrary contained herein, the obligations of the Initial Purchasers under
this Agreement are solely the corporate obligations of the Initial Purchasers.

 

No recourse under any obligation,
covenant or agreement of any Initial Purchaser contained in this Agreement shall be had against any incorporator, stockholder, officer,
director, member, manager, employee or agent of such Initial Purchaser (solely by virtue of such capacity) by the enforcement of any assessment
or by any legal or equitable proceeding, by virtue of any statute or otherwise; it being expressly agreed and understood that this Agreement
is solely a corporate obligation of the Initial Purchasers, and that no personal liability whatever shall attach to or be incurred by
any incorporator, stockholder, officer, director, member, manager, employee or agent of any Initial Purchaser (solely by virtue of such
capacity) or any of them under or by reason of any of the obligations, covenants or agreements of the Initial Purchasers contained in
this Agreement, or implied therefrom, and that any and all personal liability for breaches by any Initial Purchaser of any of such obligations,
covenants or agreements, either at common law or at equity, or by statute, rule or regulation, of every such incorporator, stockholder,
officer, director, member, manager, employee or agent is hereby expressly waived as a condition of and in consideration for the execution
of this Agreement; provided that the foregoing shall not relieve any such Person from any liability it might otherwise have as a result
of fraudulent actions taken or fraudulent omissions made by them.

 

    9

     

    

 

SECTION
7.10 No Petition. Each Initial Purchaser hereby covenants and agrees that it will not prior to the date which is one year
and one day or, if longer, the preference period then in effect after payment in full of the Notes rated by the Rating Agency, institute
against the Issuer, or join in any institution against the Issuer of, any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings, or other proceedings under any United States federal or state bankruptcy or similar law in connection with any obligations
relating to the Notes, this Agreement or any of the other Transaction Documents.

 

SECTION
7.11 Survival. All representations, warranties, covenants and guaranties contained in this Agreement and in any document,
certificate or statement delivered pursuant hereto or in connection herewith shall survive the sale, transfer or repayment of the Notes.

 

SECTION
7.12 Waiver of Special Damages. In no event shall the Purchaser be liable under or in connection with this Agreement or
any other Transaction Document to any Person for indirect, special, or consequential losses or damages of any kind, including lost profits,
even if advised of the possibility thereof and regardless of the form of action by which such losses or damages may be claimed.

 

[SIGNATURE PAGE FOLLOWS.]

 

    10

     

    

 

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

 

	 	HORIZON FUNDING I, LLC, as Issuer
	 	 
	 	By:	/s/Daniel S. Devorsetz
	 	Name: Daniel S. Devorsetz
	 	Title:  Manager
	 	 
	 	NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION, as Initial Purchaser
	 	 
	 	By:	NYL Investors LLC, its Investment Manager
	 	 
	 	By:	/s/Scott R. Seewald
	 	Name: Scott R. Seewald 
	 	Title:  Managing Director
	 	 
	 	NEW YORK LIFE INSURANCE COMPANY, as Initial Purchaser
	 	 
	 	By:	/s/Scott R. Seewald
	 	Name: Scott R. Seewald  
	 	Title:  Vice President
	 	 
	 	NEW YORK LIFE INSURANCE AND ANNUITY
    CORPORATION INSTITUTIONALLY OWNED LIFE INSURANCE SEPARATE ACCOUNT (BOLI 30C), as Initial Purchaser
	 	 
	 	By:	NYL Investors LLC, its Investment Manager
	 	 
	 	By:	/s/Scott R. Seewald
	 	Name: Scott R. Seewald 
	 	Title:  Managing Director 

 

[Horizon Funding I, LLC – Amended and Restated Note Funding Agreement]

 

    

     

    

 

	 	NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION INSTITUTIONALLY OWNED LIFE INSURANCE SEPARATE ACCOUNT (BOLI 30E), as Initial Purchaser
	 	 
	 	By: 	NYL Investors LLC, its Investment Manager
	 	 
	 	By:	/s/Scott R. Seewald
	 	Name: Scott R. Seewald  
	 	Title: Managing Director 
	 	 
	 	THE BANK OF NEW YORK MELLON, A BANKING CORPORATION ORGANIZED UNDER THE LAWS OF NEW YORK, NOT IN ITS INDIVIDUAL CAPACITY BUT SOLELY AS TRUSTEE UNDER THAT CERTAIN TRUST AGREEMENT DATED AS OF JULY 1ST, 2015 BETWEEN NEW YORK LIFE INSURANCE COMPANY, AS GRANTOR, JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.), AS BENEFICIARY, JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK, AS BENEFICIARY, AND THE BANK OF NEW YORK MELLON, AS TRUSTEE, as Initial Purchaser
	 	 
	 	By: 	New York Life Insurance Company, its attorney-in-fact
	 	 
	 	By:	/s/Scott R. Seewald
	 	Name: Scott R. Seewald  
	 	Title: Vice President 

 

[Horizon Funding I, LLC – Amended and Restated Note Funding Agreement]

 

    

     

    

 

Exhibit A

 

Form
of Advance Request

 

Date: [_________], 202 _

 

New York Life Insurance and Annuity Corporation,
New York Life Insurance Company, New York Life Insurance and Annuity Corporation Institutionally Owned Life Insurance Separate Account
(BOLI 30C) New York Life Insurance and Annuity Corporation Institutionally Owned Life Insurance Separate Account (BOLI 30E) or The Bank
of New York Mellon, a banking corporation organized under the laws of New York, not in its individual capacity but solely as Trustee under
that certain Trust Agreement dated as of July 1st, 2015 between New York Life Insurance Company, as Grantor, John Hancock Life
Insurance Company (U.S.A.), as Beneficiary, John Hancock Life Insurance Company of New York, as Beneficiary, and The Bank of New York
Mellon, as Trustee

 

c/o NYL Investors LLC

51 Madison Avenue

2nd Floor, Room 208

New York, New York 10010

Attention: Fixed Income Investors Group

Facsimile: (212) 447-4122

 

Reference is made to that certain Second Amended
and Restated Note Funding Agreement, dated as of February 25, 2022, by and among Horizon Funding I, LLC, as Issuer (the “Issuer”),
New York Life Insurance and Annuity Corporation, New York Life Insurance Company, New York Life Insurance and Annuity Corporation Institutionally
Owned Life Insurance Separate Account (BOLI 30C), New York Life Insurance and Annuity Corporation Institutionally Owned Life Insurance
Separate Account (BOLI 30E) or The Bank of New York Mellon, a banking corporation organized under the laws of New York, not in its individual
capacity but solely as Trustee under that certain Trust Agreement dated as of July 1st, 2015 between New York Life Insurance
Company, as Grantor, John Hancock Life Insurance Company (U.S.A.), as Beneficiary, John Hancock Life Insurance Company of New York, as
Beneficiary, and The Bank of New York Mellon, as Trustee, as Initial Purchasers (as the same may be amended, supplemented, restated or
otherwise modified from time to time, the “Second Amended and Restated Note Funding Agreement”. Capitalized terms used
herein and not otherwise defined herein shall have the meanings set forth in the Second Amended and Restated Note Funding Agreement. The
Issuer hereby gives you notice, pursuant to Section 2.1 of the Second Amended and Restated Note Funding Agreement, that it requests
an Advance under the Second Amended and Restated Note Funding Agreement.

 

The Issuer hereby certifies as follows:

 

		1.	The Issuer hereby requests that such Advance be made on _____________.

 

		2.	The Issuer hereby requests an Advance of $ _____________.

 

		3.	The Advance Availability for the requested Advance Date is $ _____________.

 

    A-1

     

    

 

		4.	[The Issuer hereby requests that the Advance be funded to the Principal Reinvestment Account set forth
in the Amended and Restated Note Funding Agreement.] [The Issuer hereby requests that the Advance be funded to the following account:
[__].]

 

		5.	The Issuer has directed the Servicer to withdraw Principal Proceeds in the amount of $_____ from the Collection
Account and to deposit such amount to the Principal Reinvestment Account on such Advance Date;

 

		6.	The Issuer hereby certifies that the conditions set forth in Section 3.1 of the Amended and Restated
Note Funding Agreement have been satisfied.

 

		7.	The Issuer hereby certifies that the Borrowing Base Certificate attached hereto as Schedule A
is a true, accurate and complete calculation of the Borrowing Base.

 

		8.	The Issuer hereby certifies that the attached List of Loans attached hereto as Schedule B
is a true, accurate and complete list of Loans that are owned by the Issuer and subject to the lien of the Indenture.

 

[The Remainder Of This Page Is Intentionally Left
Blank]

 

    A-2

     

    

 

IN WITNESS WHEREOF, each of
the undersigned has executed the Advance Request this day of _____ day of __________, 202_.

 

	 	Horizon Funding I, LLC, as Issuer
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    A-3

     

    

 

Schedule
A to Advance Request

[Attach Borrowing Base Calculation]

 

    A-4

     

    

 

Schedule
B to Advance Request

[Attach List of Loans]

 

    A-5Exhibit
10.5

 

 

 

SECOND
SUPPLEMENTAL INDENTURE

 

by and between

 

HORIZON FUNDING I, LLC,

as the Issuer,

 

and

 

U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION,

as the Trustee 

 

Dated as of February 25, 2022

 

 

 

HORIZON FUNDING I, LLC

Asset Backed Notes

 

     

     

    

 

THIS SECOND SUPPLEMENTAL
INDENTURE, dated as of February 25, 2022 (as amended, modified, restated, supplemented and/or waived from time to time, this “Supplemental
Indenture”), is by and between HORIZON FUNDING I, LLC, a Delaware limited liability company, as the issuer (together with its
successors and assigns, the “Issuer”), and U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, a national banking association,
as successor in interest to U.S. BANK NATIONAL ASSOCIATION (“U.S. Bank”) not in its individual capacity, but solely
in its capacity as the trustee (together with its successors and assigns, in such capacity, the “Trustee”).

 

Each party hereto agrees as
follows for the benefit of the other party and for the equal and ratable benefit of the Holders of the Notes.

 

WHEREAS,
the Issuer and the Trustee entered into an indenture (the “Base Indenture”) dated June 1, 2018 providing for
the Asset Backed Notes (the “Notes”);

 

WHEREAS,
the Issuer and the Trustee entered into a supplemental indenture June 5, 2020 (the “First Supplemental Indenture”
together with the Base Indenture, the “Indenture”);

 

WHEREAS, the Issuer
proposes to amend the Indenture (“Proposed Amendment”) as set forth in Section 2.01 hereto;

 

WHEREAS, pursuant to
Section 9.02(b) of the Indenture, the Issuer and Trustee may amend or supplement the Indenture pursuant to the Proposed Amendment provided
that the Holders of each Note have consented;

 

WHEREAS, the Holders
of each Note have consented to the Proposed Amendment;

 

WHEREAS, pursuant to
Section 9.02(a) of the Indenture, the Trustee is authorized to enter into this Supplemental Indenture pursuant to an Issuer Order;

 

WHEREAS, pursuant to
9.02(a) of the Indenture, the Rating Agency and the Servicer have been provided prior notice of this Supplemental Indenture;

 

WHEREAS, the Servicer
is not required to consent to this Supplemental Indenture pursuant to Section 9.06 of the Indenture;

 

WHEREAS, as required
by Section 6.2 of that certain Amended and Restated Note Funding Agreement, dated as of June 5, 2020, among the Issuer and the Initial
Purchasers (the “Note Funding Agreement”) the Initial Purchasers (as defined therein) have consented to this Amendment;

 

THIS INDENTURE WITNESSES
THAT, in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged by each of the parties hereto, the parties hereto covenant, agree and declare as follows:

 

     

     

    

 

ARTICLE I — INTERPRETATION

 

Section 1.01 Definitions.

 

Unless
otherwise set out in this Supplemental Indenture, all initially capitalized terms used herein without definition shall have the respective
meanings assigned in the Indenture.

 

Section 1.02 Applicable
Law.

 

(a)       THIS
SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO
ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS,
AND REMEDIES OF THE PARTIES UNDER THE INDENTURE AS AMENDED BY THIS SUPPLEMENTAL INDENTURE AND NOTES SHALL BE DETERMINED IN ACCORDANCE
WITH SUCH LAWS.

 

(b)       EACH
PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF
ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THE INDENTURE AS AMENDED BY THIS SUPPLEMENTAL INDENTURE.
Each party hereto (i) certifies that no representative, agent or attorney of any other party has represented,
expressly or otherwise, that such other party would not, in the event of litigation, seek to enforce the foregoing waiver and (ii) acknowledges
that it and the other parties hereto have been induced to enter into this Indenture by, among other things, the mutual waivers and certifications
in this Section 1.02(b).

 

Article II

 

AMENDMENT

 

Section 2.01Legal
Final Payment Date.

 

Pursuant to Section 9.02(b)
of the Indenture, Section 1.01 of the Indenture is hereby amended by deleting the definition of “Commitment” in its entirety
and replacing it with the following:

 

“Commitment Amount”
means the commitment of the Noteholders to fund Advances during the Investment Period in an amount not to exceed $200,000,000 outstanding
at any given time.

 

Pursuant to Section 9.02(b)
of the Indenture, Section 1.01 of the Indenture is hereby amended by deleting the definition of “Legal Final Payment Date”
in its entirety and replacing it with the following:

 

“Legal Final Payment
Date” means the Payment Date occurring in June 2028.

 

     

     

    

 

Pursuant to Section 9.02(b)
of the Indenture, Section 5.01 of the Indenture is hereby amended by deleting it in its entirety and replacing it with the following:

 

Any one of the following events
(whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or
pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body) shall
constitute an “Event of Default”:

 

(a)       failure
to pay all accrued interest on the Notes on any Payment Date and such failure continues unremedied for two Business Days;

 

(b)       failure
to pay all accrued interest and to reduce the Aggregate Outstanding Note Balance to zero by the Legal Final Payment Date;

 

(c)       failure by
the Issuer, the BDC or the Fund to make any other required payment on any Payment Date and such failure continues unremedied for two Business
Days;

 

(d)       a
default in the observance or performance of any material covenant or agreement of the Issuer made in this Indenture or any other Transaction
Document, and such default has a material adverse effect on the Noteholders, which default continues unremedied for a period of 30 days
after the first to occur of (A) actual knowledge thereof by a Responsible Officer of the Issuer, or (B) there shall have been given, by
registered or certified mail, to the Issuer by the Trustee, a written notice specifying such default and requiring it to be remedied and
stating that such notice is a notice of default hereunder;

 

(e)       any
representation, warranty, certification or written statement of the Issuer in this Indenture or any other Transaction Document or in any
certificate delivered under this Indenture shall prove to have been incorrect in any material respect when made, and such incorrect representation
or warranty has a material adverse effect on the Noteholders, and which default continues unremedied for a period of 30 days after the
first to occur of (A) actual knowledge thereof by a Responsible Officer of the Issuer, or (B) the delivery to the Issuer by the Trustee,
by registered or certified mail, a written notice specifying such incorrect representation or warranty and requiring it to be remedied
and stating that such notice is a notice of default hereunder;

 

(f)        there
occurs the filing of a decree or order for relief by a court having jurisdiction in the premises in respect of the Issuer or any substantial
part of the Indenture Collateral in an involuntary case under any applicable federal or state bankruptcy, insolvency or other similar
law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of
the Issuer or for any substantial part of the Indenture Collateral, or ordering the winding-up or liquidation of the Issuer’s affairs,
and such decree or order shall remain unstayed and in effect for a period of 30 consecutive days;

 

     

     

    

 

(g)       there
occurs the commencement by the Issuer of a voluntary case under any applicable federal or state bankruptcy, insolvency or other similar
law now or hereafter in effect, or the consent by the Issuer to the entry of an order for relief in an involuntary case under any such
law, or the consent by the Issuer to the appointment or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator
or similar official of the Issuer or for any substantial part of the Indenture Collateral, or the making by the Issuer of any general
assignment for the benefit of creditors, or the failure by the Issuer generally to pay its debts as such debts become due, or the taking
of any action by the Issuer in furtherance of any of the foregoing;

 

(h)       the
Trustee, on behalf of the Noteholders, shall fail to have a valid and perfected first priority security interest in the Indenture Collateral
except as otherwise expressly permitted to be released in accordance with the applicable Transaction Document, and such failure to have
a perfected first priority security interest shall have a material adverse effect on the Noteholders;

 

(i)        failure
of the Issuer to be treated as an entity that is disregarded as separate entity from its owner for U.S. federal income tax purposes and
such treatment shall have a material and adverse effect on the Noteholders; or

 

(j)        a
Servicer Default occurs and has not been cured or waived
by the Noteholders within 60 days of the occurrence.

 

The Issuer shall deliver to
the Trustee and the Rating Agency, within two Business Days after the occurrence of an Event of Default, written notice in the form of
an Officer’s Certificate of any event which with the giving of notice and the lapse of time would become an Event of Default under
clause (e) or clause (f) above, its status and what action the Issuer is taking or proposes to take with respect thereto.

 

Section 2.02Full
Force and Effect.

 

Each
of the parties hereto acknowledges and agrees that all other provisions of the Indenture remain in full force and effect.

 

Section 2.03Further
Acts.

 

Each
of the parties hereto agrees to do and execute all such further and other acts, deeds, things, devices, documents and assurances as may
be required in order to carry out the true intent and meaning of this Supplemental Indenture.

 

Article III

 

THE NOTES

 

Section 3.01Issuance
of New Notes.Following the execution of this Supplemental Indenture, and the surrender of the outstanding Notes by the Noteholders
pursuant to Section 4.02 of the Indenture, the Trustee shall authenticate and deliver new Notes substantially in the forms set forth as
Exhibit A to this Indenture with such appropriate insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture and may have such letters, numbers or other marks of identification and such legends or endorsements placed
thereon as may, consistently herewith, be determined by the appropriate Responsible Officers executing such Notes, as evidenced by their
execution of the Notes. Any portion of the text of any Note may be set forth on the reverse thereof, with an appropriate reference thereto
on the face of the Note.

 

     

     

    

 

The Notes shall be typewritten,
printed, lithographed or engraved or produced by any combination of these methods (with or without steel engraved borders), all as determined
by the Responsible Officers executing such Notes, as evidenced by their execution of such Notes.

 

Section 3.02Effect
of Transfer.For the avoidance of doubt, the exchange of existing Notes for the New Notes shall have no effect other than to
reflect the increase in the Commitment Amount

 

Article IV

MISCELLANEOUS

 

Section 4.01Counterpart
Execution.This Supplemental Indenture may be executed in any number of counterparts (including by facsimile), each of which
so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument.

 

Section 4.02Effect
of Headings.The Article and Section headings herein are for convenience only and shall not affect the construction
hereof.

 

[Rest of the Page Intentionally
Left Blank]

 

     

     

    

 

IN WITNESS WHEREOF,
the Issuer and the Trustee have caused their names to be signed hereto by their respective officers thereunto duly authorized, all as
of the day and year first above written.

 

	 	HORIZON FUNDING I, LLC
	 	 
	 	By: 	Daniel Devorsetz
	 	Name: Daniel Devorsetz
	 	Title: Manager

 

     

     

    

 

 

IN WITNESS WHEREOF,
the Issuer and the Trustee have caused their names to be signed hereto by their respective officers thereunto duly authorized, all as
of the day and year first above written.

 

	 	U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION,
	 	not in its individual capacity, except as expressly set forth herein, but solely as the Trustee
	 	 
	 	By:	/s/Eric Ott
	 	Name: 	Eric Ott
	 	Title: 	Vice President

 

[Horizon SPV LLC – Indenture]

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