SECOND AMENDED AND RESTATED INVESTMENT MANAGEMENT AGREEMENT dated as of September 6, 2023 BY AND BETWEEN BlackRock TCP Capital Corp. a Delaware Corporation AND Tennenbaum Capital Partners, LLC a Delaware limited liability company
Exhibit 10.1
SECOND AMENDED AND RESTATED INVESTMENT MANAGEMENT AGREEMENT
dated as of September 6, 2023
BY AND BETWEEN
a Delaware Corporation
AND
▇▇▇▇▇▇▇▇▇▇ Capital Partners, LLC
a Delaware limited liability company
TABLE OF CONTENTS
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Page
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1.
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General Duties of the Investment Manager
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1
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2.
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[Reserved]
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3
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3.
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No Joint Venture
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3
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4.
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Limitations Relating to Investments
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4
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5.
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Brokerage
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4
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6.
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Compensation
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5
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7.
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Expenses
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7
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8.
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Services to Other Companies or Accounts
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8
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9.
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Duty of Care and Loyalty
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8
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10.
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Indemnification
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9
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11.
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Term of Agreement; Events Affecting the Investment Manager; Survival of Certain Terms
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10
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12.
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Power of Attorney; Further Assurances
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11
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13.
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Amendment of this Agreement
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11
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14.
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Notices
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12
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15.
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Binding Nature of Agreement; Successors and Assigns
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12
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16.
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Entire Agreement
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12
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17.
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Costs and Expenses
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12
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18.
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Books and Records
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12
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19.
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Titles Not to Affect Interpretation
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13
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20.
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Provisions Separable
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13
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21.
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Governing Law
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13
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22.
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Execution in Counterparts
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13
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SECOND AMENDED AND RESTATED INVESTMENT MANAGEMENT AGREEMENT
This Second Amended and Restated Investment Management Agreement (this “Agreement”), dated
as of September 6, 2023, is made by and between BlackRock TCP Capital Corp. (the “Company”), a Delaware corporation which has elected to be treated as a business development company under
the Investment Company Act of 1940 (the “1940 Act”), and ▇▇▇▇▇▇▇▇▇▇ Capital Partners, LLC (the “Investment Manager”), a Delaware
limited liability company registered as an investment adviser under the Investment Advisers Act of 1940 (the “Advisers Act”).
WHEREAS, on August 1, 2018, the Company and the Investment Manager entered into an Investment Management Agreement, pursuant to which the Investment
Manager agreed to furnish certain investment management services to the Company (the “Original Agreement”);
WHEREAS, on February 9, 2019, the Company and the Investment Manager entered into an Amended and Restated Investment Management Agreement, pursuant to
which the Investment Manager agreed to furnish certain investment management services to the Company and which amended and restated the Original Agreement in its entirety (the “Amended Agreement”);
WHEREAS, the Company and the Investment Manager have entered into an Agreement and Plan of Merger (the “Merger
Agreement”) with BlackRock Capital Investment Corporation (“BCIC”), BlackRock Capital Investment Advisors, LLC, and Project Spurs Merger Sub, LLC (“Merger Sub”), pursuant to which BCIC will merge with and into Merger Sub with Merger Sub surviving (the “Merger”);
WHEREAS, the Company and the Investment Manager desire to amend and restate the Amended Agreement in its entirety, to be effective as of the
Commencement Date (as defined below).
NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration, the parties hereby agree that the Amended Agreement is
hereby amended and restated in its entirety to read as follows (and that, as of the Commencement Date (as defined below), the Amended Agreement shall be deemed of no further force and effect whatsoever):
1. General Duties of the Investment Manager. Subject to the direction and control of the Company’s Board of Directors (the “Board”) and subject to and in accordance with the terms of the Company’s certificate of incorporation (the “Certificate of Incorporation”), the policies adopted or
approved by the Board, as the same shall be amended from time to time, the conditions of any exemptive order obtained by or for the benefit of the Company from the Securities and Exchange Commission (the “SEC”)
and this Agreement, the Investment Manager agrees to supervise and direct the investment and reinvestment of the assets and perform the duties set forth herein, and shall have such other powers with respect to the investment and leverage related
functions of the Company as shall be delegated from time to time to the Investment Manager by the Board. The Investment Manager is hereby granted, and shall have, full power to take all actions and execute and deliver all necessary and appropriate
documents and instruments on behalf of the Company in accordance with the foregoing. The Investment Manager shall endeavor to comply in all material respects with the 1940 Act and all rules and regulations thereunder, all other applicable federal
and state laws and regulations and the applicable provisions of any other agreements to which the Company is subject. Subject to the foregoing and the other provisions of this Agreement, and subject to the direction and control of the Board, the
Investment Manager is hereby appointed as the Company’s agent and attorney-in-fact with authority to negotiate, execute and deliver all documents and agreements on behalf of the Company and to do or take all related acts, with the power of
substitution, to acquire, dispose of or otherwise take action with respect to or affecting the Investments (as defined in Section 4(b) hereof), including, without limitation:
(a) identifying and originating debt securities or debt obligations, including bank loans or interests therein (“Debt Obligations”); stock, warrants or other equity securities (“Securities”); and any other investments of any type of asset the Company is not prohibited by agreement or applicable law from investing in (all such assets together with Securities and Debt
Obligations, “Investments”) to be purchased by the Company, selecting the dates for such purchases, and purchasing or directing the purchase of such Investments on behalf of the Company;
(b) identifying Investments owned by the Company to be sold by the Company, selecting the dates for such sales, and selling such Investments on behalf of the Company;
(c) negotiating and entering into, on behalf of the Company, documentation providing for the purchase and sale of Investments, including, without limitation, confidentiality agreements and commitment letters;
(d) structuring the terms of, and negotiating, entering into and/or consenting to, on behalf of the Company, documentation relating to Investments to be purchased, held, exchanged or sold by the Company, including any amendments, modifications
or supplements with respect to such documentation;
(e) exercising, on behalf of the Company, rights and remedies associated with Investments, including, without limitation, rights to petition to place an obligor or issuer in bankruptcy proceedings, to vote to accelerate the maturity of an
Investment, to waive any default, including a payment default, with respect to an Investment and to take any other action which the Investment Manager deems necessary or appropriate in its discretion in connection with any restructuring,
reorganization or other similar transaction involving an obligor or issuer with respect to an Investment, including, without limitation, initiating and pursuing litigation;
(f) responding to any offer in respect of Investments by tendering the affected Investments, declining the offer, or taking such other actions as the Investment Manager may determine;
(g) exercising all voting, consent and similar rights of the Company on its behalf in accordance with the Investment Manager’s proxy voting guidelines and advising the Company with respect to matters concerning the Investments;
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(h) advising and assisting the Company with respect to the valuation of the assets;
(i) retaining legal counsel and other professionals (such as financial advisers) to assist in the structuring, negotiation, documentation, administration and modification and restructuring of Investments; and
(j) the Investment Manager may invest all or a portion of the Company’s assets in one or more subsidiaries, including, without limitation, Special Value Continuation Partners, LLC (formerly Special Value Continuation Partners, LP) and its
successors and assigns (“Portfolio Entity”).
2. [Reserved]
3. No Joint Venture.
(a) Nothing in this Agreement shall be deemed to create a joint venture or partnership between the parties with respect to the arrangements set forth in this Agreement. For all purposes hereof, the Investment Manager shall be deemed to be an
independent contractor.
(b) The Investment Manager will not be bound to follow any document to which the Company is a party or to which it is subject (or any amendment thereto) until it has received written notice thereof and until it has received a copy of the
amendment; provided that if any such amendment materially and adversely affects the rights or duties of the Investment Manager, the Investment Manager shall not be
obligated to respect or comply with the terms of such amendment unless it consents thereto. Subject to the fiduciary duty of the Board, the Company agrees that it shall not permit any such agreement or amendment to become effective unless the
Investment Manager has been given prior written notice of such amendment and has consented thereto in writing.
(c) The Investment Manager may, with respect to the affairs of the Company, consult with such legal counsel, accountants and other advisors as may be selected by the Investment Manager. The Investment Manager shall be fully protected, to the
extent permitted by applicable law, in acting or failing to act hereunder if such action or inaction is taken or not taken in good faith by the Investment Manager in accordance with the advice or opinion of such counsel, accountants or other
advisors. The Investment Manager shall be fully protected in relying upon any writing signed in the appropriate manner with respect to any instruction, direction or approval of any of the Board and may also rely on opinions of the Investment
Manager’s counsel with respect to such instructions, directions and approvals. The Investment Manager shall also be fully protected when acting upon any instrument, certificate or other writing the Investment Manager believes in good faith to be
genuine and to be signed or presented by the proper person or persons. The Investment Manager shall be under no duty to make any investigation or inquiry as to any statement contained in any such writing and may accept the same as conclusive
evidence of the truth and accuracy of the statements therein contained if the Investment Manager in good faith believes the same to be genuine.
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4. Limitations Relating to Investments.
(a) Investments Requiring the Investment Committee’s Approval. The Investment Manager will maintain the existence of an Investment Committee (the “Investment Committee”). The Investment Manager shall have the right to appoint any number of voting and non-voting members to the Investment Committee. The Investment Manager may appoint or remove any persons to or from
the Investment Committee in its sole discretion. The Investment Committee will review and discuss the purchase and sale of all Investments other than short-term Investments in high quality debt, securities maturing in less than 367 days or
investment funds whose portfolios at all times have an effective duration of less than 367 days and other than hedging and risk management transactions, and approval by a majority vote of the voting members of the Investment Committee will be
required prior to the purchase or sale of any Investment required to be reviewed by the Investment Committee.
(b) Investments. The Investment Manager may cause the Company from time to time to purchase, sell and take any other actions with respect to Investments.
(c) Company is not a Bank. The Investment Manager may not purchase any Debt Obligation if the related credit agreement, note, indenture or other documentation by its terms requires any
such purchase to be made only by a bank, savings and loan, thrift, trust company or other similar deposit-taking institution.
(d) Origination Fees. The Company shall, except to the extent the Investment Manager determines such sharing could cause the Company to fail to satisfy any requirement for
qualification as a regulated investment company under Subchapter M of the Code, receive its pro rata share, measured by the amount invested or proposed to be invested by the investors in any Investment, of any origination, structuring, or similar
fees normally payable to lenders or structurers as compensation for services (“Origination or Similar Fees”) payable with respect to any Investment, whether or not any other investment
funds or accounts for which the Investment Manager or its affiliated persons acts as investment adviser share in such fees. Notwithstanding anything herein, in the Certificate of Incorporation or in any other document to the contrary, to the
extent that any Origination or Similar Fees with respect to the Company’s share of such Investment are paid to the Investment Manager or any of its affiliated persons as additional compensation, such amount shall be reimbursed to the Company
unless the exception to the preceding sentence is in effect, in which case such amount shall be paid to the other accounts participating in such Investment or returned to the party paying such Origination or Similar Fees.
(e) Co-Investments. The Company may not co-invest with any account managed by the Investment Manager or its affiliated persons in any Investment except in accordance with applicable
law, including any exemptive order applicable to the Company.
5. Brokerage. The Investment Manager shall effect all purchases and sales of securities in a manner consistent with the principles of best execution, taking into
account net price (including commissions) and execution capability and other services which the broker or other intermediary may provide. In this regard, the Investment Manager may effect transactions which cause the Company to pay a commission in
excess of a commission which another broker or other intermediary would have charged; provided, however,
that the Investment Manager shall have first determined that such commission is reasonable in relation to the value of the brokerage or research services performed by that broker or other intermediary or that the Company is the sole beneficiary of
the services paid for by such broker or other intermediary.
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6. Compensation.
(a) The Investment Manager, for its services to the Company, will be entitled to receive a management fee (the “Base Management Fee”) from the Company and an incentive fee (the “Incentive Fee”). The Base Management Fee will be calculated at an annual rate of 1.25% of the Company’s total assets (excluding cash and cash equivalents) and payable quarterly in arrears;
provided, however, that the Base Management Fee will be calculated at an annual rate of 1.00% of the Company’s total assets (excluding cash and cash equivalents) that exceed
an amount equal to 200% of the net asset value of the Company. For purposes of calculating the base management fee, “total assets” is determined without deduction for any borrowings or other liabilities. For the period from the Commencement
Date through the end of the first calendar quarter after the Commencement Date, the Base Management Fee will be calculated based on the initial value of the Company’s total assets and net asset value (in each case, excluding cash and cash
equivalents) as of the end of the most recently completed calendar quarter prior to the Commencement Date. Subsequently, the Base Management Fee will be calculated based on the value of the Company’s total assets and net asset value (in each
case, excluding cash and cash equivalents) at the end of the most recently completed calendar quarter. The Base Management Fees for any partial quarter will be appropriately pro rated.
(b) For purposes of this Agreement, the total assets of the Company shall be calculated pursuant to the procedures adopted by the Board for calculating the value of the Company’s assets.
(c) The Incentive Fee will consist of two components. Each component of the Incentive Fee will be calculated and, if due, paid quarterly in arrears.
(d) The ordinary income component of the Incentive Fee is calculated as follows:
The ordinary income component will be the amount, if positive, equal to 20% of the cumulative ordinary income before incentive compensation through
February 8, 2019, and 17.5% thereafter, less cumulative ordinary income incentive compensation previously paid. Notwithstanding the foregoing provision, the Company will pay an ordinary income Incentive Fee only to the extent the cumulative total
return of the Company after incentive compensation and including such payment would equal or exceed a 7% annual return on daily weighted average contributed common equity.
(e) The capital gains component of the Incentive Fee is calculated as follows:
The capital gains component will be the amount, if positive, equal to 20% of the cumulative realized capital gains (computed net of cumulative
realized losses and cumulative unrealized capital depreciation) through February 8, 2019, and 17.5% thereafter, less cumulative capital gains incentive compensation previously paid or distributed. The capital gains component will be paid in full
prior to payment of the ordinary income component. Notwithstanding the foregoing provision, the Company will pay a capital gains Incentive Fee only to the extent the cumulative total return of the Company after incentive compensation and including
such payment would equal or exceed a 7% annual return on daily weighted average contributed common equity.
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(f) For purposes of the foregoing computations and the total return limitation:
(i) “cumulative” means amounts for the period commencing January 1, 2013, and ending as of the applicable calculation date.
(ii) “contributed common equity” means the value of the Company’s net assets attributable to common shares as of December 31, 2012, plus the proceeds to the Company of all issuances of common shares less (A) offering costs of any securities or leverage facility of the Company or Portfolio Entity, (B) all distributions by the Company
representing a return of capital and (C) the total cost of all repurchases of common shares by the Company, in each case after December 31, 2012, and through the end of the preceding calendar quarter in question and as determined on an accrual
and consolidated basis.
(iii) “ordinary income before incentive compensation” means the Company’s interest income, dividend income and any other income (including any other fees, such as
commitment, origination, structuring, diligence, managerial assistance and consulting fees or other fees received from portfolio companies) during the period, minus the
Company’s operating expenses during the period (including the base management fee, expenses payable under the administration agreements, any interest expense and any dividends paid on any issued and outstanding preferred stock), plus increases and minus decreases in net assets not treated as components of income, operating
expense, gain, loss, appreciation or depreciation and not treated as changes in contributed common equity, and without reduction for any incentive compensation and any organization or offering costs, in each case determined on an accrual and
consolidated basis.
(iv) “total return” means the amount equal to the combination of ordinary income before incentive compensation, realized capital gains and losses and unrealized capital
appreciation and depreciation of the Company and any other items affecting net asset value per share of the Company for the period (other than incentive compensation), in each case determined on an accrual and consolidated basis.
(g) Notwithstanding anything to the contrary contained herein, the phrases “cumulative ordinary income incentive compensation previously paid” and “cumulative capital gains incentive compensation previously paid or distributed” in Sections 6(d)
and 6(e) of this Agreement are deemed to include the Incentive Fee distributions made by the Portfolio Entity to the general partner or investment manager of the Portfolio Entity prior to the Portfolio Entity’s conversion from a limited
partnership to a limited liability company.
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7. Expenses. The Company will be responsible for paying the compensation of the Investment Manager and any placement agent of any of its securities, due diligence and
negotiation expenses, fees and expenses of custodians, administrators (including the Investment Manager or an affiliate in its capacity as administrator), transfer and distribution agents, counsel and directors, insurance, filings and registrations,
proxy expenses, expenses of communications to investors, interest, taxes, portfolio transaction expenses, indemnification, litigation and other extraordinary expenses and all such other expenses as the Investment Manager is not responsible for (such
as for services the Investment Manager is required to supervise rather than provide) and as are approved by the directors as being reasonably related to the organization, offering, capitalization, operation, regulatory compliance or administration of
the Company and any portfolio investments. Expenses associated with the general overhead of the Investment Manager will not be covered by the Company.
In addition, the Company shall pay, and shall reimburse the Investment Manager and its affiliates for, any costs and expenses that, in the good faith
judgment of the Board, are incurred in the financing or operation of the Company as a business development company, including, without limitation, fees and expenses of offering the Company’s shares or debt instruments and enhancing or assuring the
credit quality thereof; fees and expenses relating Investments including the structuring, negotiation, acquisition, syndication, holding, restructuring, recapitalization and disposition thereof or relating to proposed Investments which are not
consummated; reasonable premiums for insurance protecting the Company, the Investment Manager, any of its affiliates and any of its employees and agents; legal, compliance, administrative, custodial and accounting expenses; auditing expenses;
appraisal expenses; expenses relating to organizing companies through or in which investments will be made; costs and expenses of preparing and maintaining the books and records of the Company and entities through which it invests; costs and expenses
that are classified as extraordinary expenses under generally accepted accounting principles; taxes or other governmental charges payable by the Company; costs and expenses incurred in connection with any actual or threatened litigation, and any
judgments or settlements paid in connection with litigation, involving the Company, a company in which the Company invests in or a Person entitled to indemnification from the Company; expenses (including legal fees and expenses) incurred in
connection with the bankruptcy or reorganization of any Investment; costs of reporting to the Company’s shareholders, creditors and regulatory authorities; costs of responding to regulatory inquiries; costs of shareholder meetings and the
solicitation of shareholder consents; costs incurred in valuing assets; costs of winding up and liquidating the Company; and interest, distributions and fees under the agreements governing any indebtedness incurred by the Company and its shares.
On behalf of the Company, the Investment Manager may advance payment of any such fees and expenses of the Company, and the Company shall reimburse the
Investment Manager therefor within 30 days following written request from the Investment Manager. Nothing in this Section 7 shall limit the ability of the Investment Manager to be reimbursed by any Person (including issuers or obligors of
securities, instruments or obligations owned by the Company) for out-of-pocket expenses incurred by the Investment Manager in connection with the performance of services hereunder. The Investment Manager shall maintain complete and accurate records
with respect to costs and expenses and shall furnish the Board with receipts or other written vouchers with respect thereto upon request of the Board.
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8. Services to Other Companies or Accounts.
(a) The Investment Manager and its affiliated persons, employees or associates are in no way prohibited from, and intend to, spend substantial business time in connection with other businesses or activities, including, but not limited to,
managing investments, advising or managing entities whose investment objectives are the same as or overlap with those of the Company, participating in actual or potential investments of the Company or any other person, providing consulting,
merger and acquisition, structuring or financial advisory services, including with respect to actual, contemplated or potential investments of the Company, or acting as a director, officer or creditors’ committee member of, adviser to, or
participant in, any corporation, partnership, trust or other business entity. The Investment Manager and its affiliated persons may, and expect to, receive fees or other compensation from third parties for any of these activities, which fees
will be for the benefit of their own account and not the Company.
(b) In addition, the Investment Manager and its affiliated persons may manage accounts other than the Company that invest in assets eligible for purchase by the Company.
(c) The Company may have the ability, under certain circumstances, to take certain actions that would have an adverse effect on accounts other than the Company. In these circumstances, the Investment Manager and its affiliated persons will act
in a manner believed to be equitable to the Company and such other accounts, including co-investment in accordance with applicable laws, including the conditions of any exemptive relief obtained by the Company and the Investment Manager.
9. Duty of Care and Loyalty. Except as otherwise required by law, none of the Investment Manager, or any its affiliated persons, directors, officers, employees,
shareholders, managers, members, assigns, representatives or agents (each, an “Indemnified Person” and, collectively, the “Indemnified
Persons”) shall be liable, responsible or accountable in damages or otherwise to the Company, any shareholder or any other person for any loss, liability, damage, settlement cost, or other expense (including reasonable attorneys’ fees)
incurred by reason of any act or omission or any alleged act or omission performed or omitted by such Indemnified Person (other than solely in such Indemnified Person’s capacity as a shareholder, if applicable) in connection with the establishment,
management or operations of the Company or the management of its assets (including those in connection with serving on boards of directors of, or creditors’ committees for, any Investment); provided that the foregoing exculpation shall not apply to any act or failure to act that arises out of the bad faith, willful misfeasance, gross negligence or reckless disregard of an Indemnified Person’s duty to the Company or
such shareholder, as the case may be (such conduct, “Disabling Conduct”). Subject to the foregoing, all such Indemnified Persons shall look solely to the assets of the Company for
satisfaction of claims of any nature arising in connection with the affairs of the Company. If any Indemnified Person is made a party to any suit or proceeding to enforce any such liability, subject to the foregoing exception, such Indemnified
Person shall not, on account thereof, be held to any personal liability.
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10. Indemnification.
(a) To the fullest extent permitted by applicable law, each of the Indemnified Persons shall be held harmless and indemnified by the Company (out of its assets and not out of the separate assets of any shareholder) against any liabilities and
expenses, including amounts paid in satisfaction of judgments, in compromise or as fines and penalties, and reasonable counsel fees reasonably incurred by such Indemnified Person in connection with the defense or disposition of any action, suit
or other proceeding, whether civil or criminal, before any court or administrative or investigative body in which such Indemnified Person may be or may have been involved as a party or otherwise (other than as authorized by the Directors, as the
plaintiff or complainant) or with which such Indemnified Person may be or may have been threatened, while acting in such Person’s capacity as an Indemnified Person, except with respect to any matter as to which such Indemnified Person shall not
have acted in good faith in the reasonable belief that such person’s action was in the best interest of the Company or, in the case of any criminal proceeding, as to which such Indemnified Person shall have had reasonable cause to believe that
the conduct was unlawful; provided, however, that an Indemnified Person shall only be indemnified hereunder if (i) such Indemnified Person’s activities do not constitute
Disabling Conduct and (ii) there has been a determination (a) by a final decision on the merits by a court or other body of competent jurisdiction before whom the issue of entitlement to indemnification was brought that such Indemnified Person is
entitled to indemnification or, (b) in the absence of such a decision, by (1) a majority vote of a quorum of those Directors who are neither “interested persons” of the Company (as defined in Section 2(a)(19) of the 1940 Act) nor parties to the
proceeding (the “Disinterested Non-Party Directors”) that the Indemnified Person is entitled to indemnification, or (2) if such quorum is not obtainable or even if obtainable, if a
majority so directs, independent legal counsel in a written opinion that concludes that the Indemnified Person should be entitled to indemnification. Notwithstanding the foregoing, with respect to any action, suit or other proceeding voluntarily
prosecuted by any Indemnified Person as plaintiff, indemnification shall be mandatory only if the prosecution of such action, suit or other proceeding by such Indemnified Person was authorized by a majority of the Directors. All determinations
to make advance payments in connection with the expense of defending any proceeding shall be authorized and made in accordance with the immediately succeeding paragraph (b) below.
(b) The Company shall make advance payments in connection with the expenses of defending any action with respect to which indemnification might be sought hereunder if the Company receives a written affirmation by the Indemnified Person of the
Indemnified Person’s good faith belief that the standards of conduct necessary for indemnification have been met and a written undertaking to reimburse the Company unless it is subsequently determined that he is entitled to such indemnification
and if a majority of the Directors determine that the applicable standards of conduct necessary for indemnification appear to have been met. In addition, at least one of the following conditions must be met: (i) the Indemnified Person shall
provide adequate security for his undertaking, (ii) the Company shall be insured against losses arising by reason of any lawful advances, or (iii) a majority of a quorum of the Disinterested Non-Party Directors, or if a majority vote of such
quorum so direct, independent legal counsel in a written opinion, shall conclude, based on a review of readily available facts (as opposed to a full trial-type inquiry), that there is substantial reason to believe that the Indemnified Person
ultimately will be found entitled to indemnification.
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(c) The rights accruing to any Indemnified Person under these provisions shall not exclude any other right to which he may be lawfully entitled.
(d) Each Indemnified Person shall, in the performance of its duties, be fully and completely justified and protected with regard to any act or any failure to act resulting from reliance in good faith upon the books of account or other records of
the Company, upon an opinion of counsel, or upon reports made to the Company by any of the Company’s officers or employees or by any advisor, administrator, manager, distributor, selected dealer, accountant, appraiser or other expert or
consultant selected with reasonable care by the Directors, officers or employees of the Company, regardless of whether such counsel or other person may also be a Director.
11. Term of Agreement; Events Affecting the Investment Manager; Survival of Certain Terms.
(a) This Agreement shall become effective as of, and is subject to, the Closing of the Merger, as defined in the Merger Agreement (the “Commencement Date”) and, unless sooner terminated
by the Company or Investment Manager as provided herein, shall continue in effect with respect to the Company for successive periods of 12 months, provided such continuance is specifically approved at least annually by both (i) the vote of a
majority of the Board or the vote of a majority of the outstanding voting securities of the Company at the time outstanding and entitled to vote, and (ii) by the vote of a majority of the Directors who are not parties to this Agreement or
interested persons of any party to this Agreement, cast in person at a meeting called for the purpose of voting on such approval. Notwithstanding the foregoing, this Agreement may be terminated by the Company at any time, without the payment of
any penalty, upon giving the Investment Manager 60 days’ notice (which notice may be waived by the Investment Manager); provided that such termination by the Company shall
be directed or approved by the vote of a majority of the Directors of the Company in office at the time or by the vote of the holders of a majority of the voting securities of the Company at the time outstanding and entitled to vote, or by the
Investment Manager on 60 days’ written notice (which notice may be waived by the Company). This Agreement will also immediately terminate in the event of its assignment. As used in this Agreement, the terms “majority of the outstanding voting
securities,” “interested person” and “assignment” shall have the same meanings as such terms are given in the 1940 Act.
(b) If the Merger Agreement is terminated in accordance with its terms, this Agreement shall terminate and not become effective and, for the avoidance of doubt, the Amended Agreement shall remain in full force in accordance with its terms.
(c) Notwithstanding anything herein to the contrary, Sections 6(c), 7, 9 and 10 of this Agreement shall survive any termination hereof.
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(d) From and after the effective date of termination of this Agreement, the Investment Manager and its affiliated persons shall not be entitled to compensation for further services hereunder, but shall be paid all compensation and reimbursement
of expenses accrued to the date of termination. Upon such termination, and upon receipt of payment of all compensation and reimbursement of expenses owed, the Investment Manager shall as soon as practicable (and in any event within 90 days after
such termination) deliver to the Company all property (to the extent, if any, that the Investment Manager has custody thereof) and documents of the Company or otherwise relating to the assets of the Company then in the custody of the Investment
Manager (although the Investment Manager may keep copies of such documents for its records). The Investment Manager agrees to use reasonable efforts to cooperate with any successor investment manager in the transfer of its responsibilities
hereunder, and will, among other things, provide upon receipt of a written request by such successor investment manager any information available to it regarding any assets of the Company. The Investment Manager agrees that, notwithstanding any
termination, it will reasonably cooperate in any proceeding arising in connection with this Agreement, any other agreement of which the company is subject or any Investment (excluding any such proceeding in which claims are asserted against the
Investment Manager or any affiliated person of the Investment Manager) upon receipt of appropriate indemnification and expense reimbursement.
12. Power of Attorney; Further Assurances.
In addition to the power of attorney granted to the Investment Manager in Section 1 of this Agreement, the Company hereby makes, constitutes and
appoints the Investment Manager, with full power of substitution, as its true and lawful agent and attorney-in-fact, with full power and authority in its name, place and stead, in accordance with the terms of this Agreement (a) to sign, execute,
certify, swear to, acknowledge, deliver, file, receive and record any and all documents which the Investment Manager reasonably deems necessary or appropriate in connection with its investment management duties under this Agreement and as required by
the 1940 Act and (b) to (i) subject to any policies adopted by the Board with respect thereto, exercise in its discretion any voting or consent rights associated with any securities, instruments or obligations included in the Company’s assets, (ii)
execute proxies, waivers, consents and other instruments with respect to such securities, instruments or obligations, (iii) endorse, transfer or deliver such securities, instruments and obligations and (iv) participate in or consent (or decline to
consent) to any modification, work-out, restructuring, bankruptcy proceeding, class action, plan of reorganization, merger, combination, consolidation, liquidation or similar plan or transaction with regard to such securities, instruments and
obligations. To the extent permitted by applicable law, this grant of power of attorney is irrevocable and coupled with an interest, and it shall survive and not be affected by the subsequent dissolution or bankruptcy of the Company; provided that this grant of power of attorney will expire, and the Investment Manager will cease to have any power to act as the Company’s attorney-in-fact, upon termination of this
Agreement in accordance with its terms. The Company shall execute and deliver to the Investment Manager all such other powers of attorney, proxies, dividend and other orders, and all such instruments, as the Investment Manager may reasonably request
for the purpose of enabling the Investment Manager to exercise the rights and powers which it is entitled to exercise pursuant to this Agreement. Each of the Investment Manager and the Company shall take such other actions, and furnish such
certificates, opinions and other documents, as may be reasonably requested by the other party hereto in order to effectuate the purposes of this Agreement and to facilitate compliance with applicable laws and regulations and the terms of this
Agreement.
13. Amendment of this Agreement. No provision of this Agreement may be amended, waived, discharged or terminated orally, but only by an instrument in writing signed by
the party against which enforcement of the amendment, waiver, discharge or termination is sought. Any amendment of this Agreement shall be subject to the 1940 Act. The Company shall promptly provide a copy of any such amendment or waiver to any
party entitled thereto.
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14. Notices. Unless expressly provided otherwise herein, any notice, request, direction, demand or other communication required or permitted under this Agreement shall
be in writing and shall be deemed to have been duly given, made and received if sent by hand or by overnight courier, when personally delivered, if sent by telecopier, when receipt is confirmed by telephone, or if sent by registered or certified
mail, postage prepaid, return receipt requested, when actually received if addressed as set forth below:
(a) If to the Company:
▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇
Santa Monica, CA 90405, Attention: CEO
(b) If to the Investment Manager:
▇▇▇▇▇▇▇▇▇▇ Capital Partners, LLC
▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇
Santa Monica, CA 90405
Attention: ▇▇▇▇▇▇▇▇ ▇▇▇, Managing Director
Either party to this Agreement may alter the address to which communications or copies are to be sent to it by giving notice of such change of address in conformity with
the provisions of this Section 14.
15. Binding Nature of Agreement; Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns as provided herein.
16. Entire Agreement. This Agreement contains the entire agreement and understanding between the parties hereto with respect to the subject matter hereof, and
supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The express terms hereof control and supersede
any course of performance or usage of the trade inconsistent with any of the terms hereof.
17. Costs and Expenses. The costs and expenses (including the fees and disbursements of counsel and accountants) incurred in connection with the negotiation,
preparation and execution of this Agreement, and all matters incident thereto, shall be borne by the Company.
18. Books and Records. In compliance with the requirements of Rule 31a-3 under the 1940 Act, the Investment Manager ▇▇▇▇▇▇ agrees that all records which it maintains
for the Company in its capacity as Investment Manager are the property of the Company and further agrees to surrender promptly to the Company any such records upon the Company’s request. The Investment Manager further agrees to preserve for the
periods prescribed by Rule 31a-2 under the 1940 Act the records maintained by it in its capacity as Investment Manager that are required to be maintained by Rule 31a-1 under the 1940 Act.
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19. Titles Not to Affect Interpretation. The titles of sections contained in this Agreement are for convenience only, and they neither form a part of this Agreement
nor are they to be used in the construction or interpretation hereof.
20. Provisions Separable. The provisions of this Agreement are independent of and separable from each other, and, to the extent permitted by applicable law, no
provision shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable in whole or in part.
21. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York and, to the extent inconsistent therewith,
the 1940 Act.
22. Execution in Counterparts. This Agreement may be executed in separate counterparts, each of which shall be an original and all of which taken together shall
constitute one and the same instrument.
[Remainder of page intentionally left blank.]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.
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By:
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/s/ ▇▇▇▇ ▇▇▇▇▇▇▇ |
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Name:
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▇▇▇▇ ▇▇▇▇▇▇▇
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Title:
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Chief Financial Officer
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▇▇▇▇▇▇▇▇▇▇ CAPITAL PARTNERS, LLC
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By:
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/s/ ▇▇▇▇▇▇▇▇ ▇▇▇ | ||
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Name:
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▇▇▇▇▇▇▇▇ ▇▇▇
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Title:
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Authorized Signatory
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[Signature Page to Second Amended and Restated Investment Management Agreement]