As filed with the Securities and Exchange Commission on October 10, 2024
Securities Act Registration No. 333-279051
Investment Company Registration No. 811-22369
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-2
REGISTRATION
STATEMENT
UNDER
THE SECURITIES ACT OF 1933 ☒
Pre-Effective Amendment No. ☐
Post-Effective Amendment No. 1 ☒
and/or
REGISTRATION
STATEMENT
UNDER
THE INVESTMENT COMPANY ACT OF 1940 ☒
Amendment No. 10 ☒
Western Asset
Mortgage Opportunity Fund Inc.
(Exact Name of Registrant as Specified in Charter)
620 Eighth Avenue, 47th Floor
New York, New York 10018
(Address of Principal Executive Offices)
(888) 777-0102
(Registrant’s Telephone Number, Including Area Code)
Jane Trust
Franklin
Templeton
620 Eighth Avenue, 47th Floor
New York, New York 10018
(Name and Address of Agent for Service)
Copies to:
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| David W. Blass, Esq.
Ryan P. Brizek, Esq.
Simpson Thacher & Bartlett LLP
900 G Street NW
Washington, DC 20001 |
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Marc A. De Oliveira, Esq.
Franklin Templeton 100
First Stamford Place Stamford, CT 06902 |
Approximate Date of Proposed Public Offering: From time to time after the effective date of this Registration Statement.
If the only securities being registered on this Form are being offered pursuant to dividend or interest reinvestment plans, check the
following box ☐.
If any of the securities being registered on this form will be offered on a delayed or continuous basis in
reliance on Rule 415 under the Securities Act of 1933, other than securities offered in connection with a dividend reinvestment plan, check the following box. ☒
If this Form is a registration statement pursuant to General Instruction A.2 or a post-effective amendment thereto, check the following
box ☒.
If this Form is a registration statement pursuant to General Instruction B or a post-effective amendment thereto that
will become effective upon filing with the Commission pursuant to Rule 462(e) under the Securities Act, check the following box ☐.
If this Form is a post-effective amendment to a registration statement filed pursuant to General Instruction B to register additional
securities or additional classes of securities pursuant to Rule 413(b) under the Securities Act, check the following box ☐.
It is proposed that this filing will become effective (check appropriate box)
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☐ |
when declared effective pursuant to Section 8(c) |
If appropriate, check the following box:
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This post-effective amendment designates a new effective date for a previously filed registration statement.
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☐ |
This form is filed to register additional securities for an offering pursuant to Rule 462(b) under the
Securities Act and the Securities Act registration statement number of the earlier effective registration statement for the same offering is . |
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This Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, and the
Securities Act registration statement number of the earlier effective registration statement for the same offering is . |
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☐ |
This Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, and the
Securities Act registration statement number of the earlier effective registration statement for the same offering is . |
Check each box that appropriately characterizes the Registrant:
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Registered Closed-End Fund
(closed-end company that is registered under the Investment Company Act of 1940 (“Investment Company Act”)). |
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☐ |
Business Development Company (closed-end company that intends or has
elected to be regulated as a business development company under the Investment Company Act). |
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☐ |
Interval Fund (Registered Closed-End Fund or a Business Development
Company that makes periodic repurchase offers under Rule 23c-3 under the Investment Company Act). |
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A.2 Qualified (qualified to register securities pursuant to General Instruction A.2 of this Form).
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☐ |
Well-Known Seasoned Issuer (as defined by Rule 405 under the Securities Act). |
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Emerging Growth Company (as defined by Rule 12b-2 under the Securities
Exchange Act of 1934 (“Exchange Act”). |
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If an Emerging Growth Company, indicate by check mark if the registrant has elected not to use the extended
transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of Securities Act. |
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☐ |
New Registrant (registered or regulated under the Investment Company Act for less than 12 calendar months
preceding this filing). |
The
Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that the Registration Statement shall thereafter
become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until the Registration Statement shall become effective on such dates as the Securities and Exchange Commission, acting pursuant to said
Section 8(a), may determine.
EXPLANATORY NOTE
This Post-Effective Amendment No. 1 to the Registration Statement on Form N-2 (File Nos. 333-279051 and 811-22369) of Western Asset Mortgage Opportunity Fund
Inc. (the “Registration Statement”) is being filed pursuant to Rule 462(d) under the Securities Act of 1933, as amended (the “Securities Act”), solely for the purpose of filing exhibits to the Registration Statement. Accordingly,
this Post-Effective Amendment No. 1 consists only of a facing page, this explanatory note and Part C of the Registration Statement on Form N-2 setting forth the exhibits to the Registration Statement. This Post-Effective Amendment No. 1 does not
modify any other part of the Registration Statement. Pursuant to Rule 462(d) under the Securities Act, this Post-Effective Amendment No. 1 shall become effective immediately upon filing with the Securities and Exchange Commission. The contents of
the Registration Statement are hereby incorporated by reference.
PART C
OTHER INFORMATION
Item 25.
Financial Statements and Exhibits
| (1) |
Financial Statements for the fiscal year ended December 31, 2023 |
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Part A |
Financial Highlights |
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Part B |
Incorporated into Part B by reference to Registrant’s most recent Certified Shareholder Report on Form N-CSR, filed March 4, 2024 (File No. 811-22369): |
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Schedule of Investments at December 31, 2023 |
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Statement of Assets and Liabilities as of December 31, 2023 |
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Statement of Operations for the Year Ended December 31, 2023 |
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Statement of Changes in Net Assets for the Year Ended December 31, 2023 |
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Notes to Financial Statements for the Year Ended December 31, 2023 |
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Report of Independent Registered Public Accounting Firm for the Year Ended December 31, 2023
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| (2) |
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Exhibits |
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| (a)(1) |
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Articles of Incorporation, dated December 11,
2009(1) |
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| (a)(2) |
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Articles of Amendment, dated December 20, 2019(6) |
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| (b) |
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By-Laws(4) |
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| (c) |
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Not Applicable |
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| (d) |
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Articles V and VIII of Registrant’s Articles of Incorporation are incorporated herein by reference. |
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| (e) |
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Dividend Reinvestment Plan(2) |
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| (f) |
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Not Applicable |
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| (g)(1) |
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Investment Management Agreement between the Registrant and Franklin Templeton Fund Adviser, LLC (f/k/a Legg Mason Partners Fund
Advisor, LLC)(7) |
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| (g)(2) |
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Subadvisory Agreement between Franklin Templeton Fund Adviser, LLC (f/k/a Legg Mason Partners Fund Advisor, LLC) and Western Asset
Management Company(7) |
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| (g)(3) |
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Subadvisory Agreement between Western Asset Management Company and Western Asset Management Company Limited(7) |
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| (h)(1) |
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Second Amended and Restated Sales Agreement(11) |
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| (i) |
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Not Applicable |
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| (j)(1) |
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Custodian Services Agreement with The Bank of New York Mellon, dated January 1, 2018(6) |
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| (j)(2) |
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Amendment No. 1 to the Custodian Services Agreement, dated January
2, 2019, with The Bank of New York Mellon, dated January 1, 2018(6) |
| (1) |
Filed on December 14, 2009 with the Registrant’s Registration Statement on Form N-2 (File Nos. 333-163711 and 811-22369) and incorporated by reference herein |
| (2) |
Filed on January 28, 2010 with Pre-Effective Amendment No. 1
to the Registrant’s Registration Statement on Form N-2 (File Nos. 333-163711 and 811-22369) and incorporated by reference
herein |
| (3) |
Filed on March 4, 2019 with Registrant’s Form N-CSR (File No. 811-22369) and incorporated by reference herein. |
| (4) |
Filed on August 18, 2020 with the Registrant’s Form 8-K (File
No. 811-22369) and incorporated by reference herein. |
| (5) |
Filed on January 29, 2020 with the Registrant’s Registration Statement on Form N-2 (File No. 811-22369) and incorporated by reference herein. |
| (6) |
Filed on March 31, 2020 with the Registrant’s Registration Statement on Form N-2 (File No. 811-22369) and incorporated by reference herein. |
| (8) |
Filed on May 12, 2021 with the Registrant’s Registration Statement on Form N-2 (File No. 811-22369) and incorporated by reference herein. |
| (9) |
Filed on May 1, 2024 with the Registrant’s Registration Statement on Form N-2 (File No. 811-22369) and
incorporated by reference herein. |
| (10) |
Filed on August 27, 2024 with the Registrant’s Registration Statement on Form N-2 (File No. 811-22369) and
incorporated by reference herein. |
Item 26. Marketing Arrangements
Reference is made to the sales agreement for the Registrant’s common stock incorporated by reference herein or the form of underwriting
agreement to be filed as an exhibit in a post-effective amendment to the Registrant’s Registration Statement and the section entitled “Plan of Distribution” contained in Registrant’s Prospectus incorporated by reference herein.
Item 27. Other Expenses of Issuance and Distribution
The following table sets forth the estimated expenses to be incurred in connection with the offering described in this Registration Statement:
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| SEC registration fees |
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$ |
5,756 |
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| Financial Industry Regulatory Authority fees |
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5,850 |
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| Accounting fees and expenses |
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10,000 |
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| Legal fees and expenses |
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100,000 |
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| Total |
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$ |
121,606 |
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Item 28. Persons Controlled by or Under Common Control with Registrant
None.
Item 29. Number of Holders of
Securities
At August 20, 2024:
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| Title of Class |
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Number of
Record Holders |
| Common Stock, par value $0.001 per share |
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5 |
Item 30. Indemnification
Sections (1) to (3) of Article VII of the Registrant’s Articles of Incorporation, incorporated by reference as Exhibit
(a) to this Registration Statement, provide that:
To the maximum extent permitted by Maryland statutory or decisional law, as
amended or interpreted, no current or former director or officer of the Registrant shall have any liability to the Registrant or its stockholders for money damages. This limitation on liability applies to events occurring at the time a person serves
as a director or officer of the Registrant whether or not such person is a director or officer at the time of any proceeding in which liability is asserted.
The Registrant shall indemnify and advance expenses to its currently acting and its former directors to the fullest extent that
indemnification of directors is permitted by Maryland statutory or decisional law. The Registrant shall indemnify and advance expenses to its officers to the same extent as its directors and may do so to such further extent as is consistent with
law. The Board of Directors may by By-Law, resolution or agreement make further provision for indemnification of directors, officers, employees and agents to the fullest extent permitted by the Maryland
statutory or decisional law. The foregoing rights of indemnification shall not be exclusive of any other rights to which those seeking indemnification may be entitled. The Board of Directors may take such action as is necessary to carry out these
indemnification provisions and is expressly empowered to adopt, approve and amend from time to time such By-Laws, resolutions or contracts implementing such provisions or such further indemnification
arrangements as may be permitted by law. This indemnification applies to events occurring at the time a person serves as a director or officer of the Registrant whether or not such person is a director or officer at the time of any proceeding in
which liability is asserted.
No provision of the Registrant’s Articles of Incorporation shall be effective to protect or purport to
protect any director or officer of the Registrant against any liability to the Registrant or its security holders to which he would otherwise be subject by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of the
duties involved in the conduct of his office.
Insofar as indemnification for liability arising under the Securities Act of 1933, as
amended (the “Securities Act”), may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that, in the opinion of the Securities
and Exchange Commission, such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the
Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the
securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against
public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.
Item 31. Business and Other
Connections of Adviser
The descriptions of FTFA, Western Asset and Western Asset Limited under the caption “Management of the
Fund” in the Prospectus and Statement of Additional Information of this registration statement are incorporated by reference herein. Information as to the directors and officers of FTFA, Western Asset and Western Asset Limited, together with
information as to any other business, profession, vocation or employment of a substantial nature engaged in by the directors and officers of FTFA, Western Asset and Western Asset Limited in the last two years, is included in their respective
applications for registration as an investment adviser on Form ADV (File Nos. 801-66785, 801-08162 and 801-21068, respectively)
filed under the Investment Advisers Act of 1940, as amended, and is incorporated herein by reference.
Item 32. Location of Accounts and Records
The accounts and records of the Registrant are maintained at the office of the Registrant at 620 Eighth Avenue, New York,
New York 10018.
Item 33. Management Services
Not applicable.
Item 34. Undertakings
1. Not applicable.
2.
Not applicable.
3. The Registrant undertakes:
(a) to file, during a period in which offers or sales are being made, a post-effective amendment to this Registration Statement:
(1) to include any prospectus required by Section 10(a)(3) of the Securities Act;
(2) to reflect in the prospectus any facts or events after the effective date of the registration statement (or the most recent post-effective
amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the
total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to
Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement.
(3) to include any material information with respect to the plan of distribution not previously disclosed in the Registration Statement
or any material change to such information in the Registration Statement.
Provided, however, that paragraphs a(1), a(2), and a(3)
of this section do not apply to the extent the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the Registrant pursuant to Section 13 or
Section 15(d) of the Exchange Act that are incorporated by reference into the registration statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) that is part of the registration statement.
(b) that, for the purpose of determining any liability under the Securities Act, each post-effective amendment to this registration statement
shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of those securities at that time shall be deemed to be the initial bona fide offering thereof;
(c) to remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the
termination of the offering;
(d) that, for the purpose of determining liability under the Securities Act to any purchaser:
(1) if the Registrant is relying on Rule 430B [17 CFR 230.430B]:
(A) Each prospectus filed by the Registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement
as of the date the filed prospectus was deemed part of and included in the registration statement; and
(B) Each prospectus
required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (x), or (xi) for the purpose of providing the
information required by Section 10(a) of the Securities Act shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the
first contract of sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date
of the registration statement relating to the securities in the registration statement to which that prospectus relates, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. Provided,
however, that no statement made in a registration statement or prospectus that is part of the
registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to
a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document
immediately prior to such effective date; or
(2) if the Registrant is subject to Rule 430C: each prospectus filed pursuant
to Rule 424(b) under the Securities Act as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and
included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document
incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any
statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.
(e) that for the purpose of determining liability of the Registrant under the Securities Act to any purchaser in the initial distribution of
securities:
The undersigned Registrant undertakes that in a primary offering of securities of the undersigned Registrant pursuant to this
registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned Registrant will be a
seller to the purchaser and will be considered to offer or sell such securities to the purchaser:
(1) any preliminary
prospectus or prospectus of the undersigned Registrant relating to the offering required to be filed pursuant to Rule 424 under the Securities Act;
(2) free writing prospectus relating to the offering prepared by or on behalf of the undersigned Registrant or used or referred
to by the undersigned Registrant;
(3) the portion of any other free writing prospectus or advertisement pursuant to Rule
482 under the Securities Act relating to the offering containing material information about the undersigned Registrant or its securities provided by or on behalf of the undersigned Registrant; and
(4) any other communication that is an offer in the offering made by the undersigned Registrant to the purchaser
4. Registrant undertakes that, for the purpose of determining any liability under the Securities Act:
(a) the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained
in the form of prospectus filed by the Registrant under Rule 424(b)(1) shall be deemed to be a part of this registration statement as of the time it was declared effective; and
(b) each post-effective amendment that contains a form of prospectus will be deemed to be a new registration statement relating to the
securities offered therein, and the offering of the securities at that time shall be deemed to be the initial bona fide offering thereof.
5. The undersigned Registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing
of the Registrant’s annual report pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 that is incorporated by reference into the registration statement shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
6. Insofar as indemnification for liabilities arising under the Securities Act of 1933, as amended (the “Securities Act”), may be
permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is
against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director,
officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless
in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be
governed by the final adjudication of such issue.
7. The Registrant undertakes to send by first class mail or other means designed to
ensure equally prompt delivery, within two business days of receipt of a written or oral request, any prospectus or Statement of Additional Information.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended (the “1933 Act”) and the Investment Company Act of 1940, as
amended, the Registrant has duly caused this Amendment to the Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of New York, State of New York on the 10th day of October, 2024.
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| WESTERN ASSET MORTGAGE OPPORTUNITY FUND INC. |
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| By: |
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/s/ Jane Trust |
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Chairman, Chief Executive Officer and President |
Pursuant to the requirements of the 1933 Act, this Amendment to the Registration Statement has been
signed by the following person in the capacity and on the date indicated.
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| Signature |
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Title |
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Date |
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| /s/ Jane Trust
Jane Trust |
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Chairman, Chief Executive Officer, President and Director (Principal Executive Officer) |
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October 10, 2024 |
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| /s/ Christopher Berarducci
Christopher Berarducci |
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Principal Financial Officer (Principal Financial and Accounting Officer) |
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October 10, 2024 |
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| /s/ Robert D. Agdern*
Robert D. Agdern |
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Director |
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October 10, 2024 |
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| /s/ Carol L. Colman*
Carol L. Colman |
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Director |
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October 10, 2024 |
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| /s/ Daniel P. Cronin*
Daniel P. Cronin |
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Director |
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October 10, 2024 |
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| /s/ Paolo M. Cucchi*
Paolo M. Cucchi |
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Director |
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October 10, 2024 |
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| /s/ Eileen A. Kamerick*
Eileen A. Kamerick |
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Director |
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October 10, 2024 |
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| /s/ Nisha Kumar*
Nisha Kumar |
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Director |
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October 10, 2024 |
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| *By: |
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/s/ Jane Trust |
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Jane Trust |
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As Agent or Attorney-in-fact |
| October 10th, 2024 |
The original power of attorney authorizing Jane Trust to execute this Registration Statement, and any amendments thereto, for
the Directors of the Registrant on whose behalf this Registration Statement was filed on May 1, 2024 as an exhibit to the Registrant’s Registration Statement on Form N-2.
Schedule of Exhibits to Form N-2
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| Exhibit No. |
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Exhibit |
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| (h)(1) |
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Second Amended and Restated Sales Agreement |
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| (l) |
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Opinion and Consent of Venable LLP |
WESTERN ASSET MORTGAGE OPPORTUNITY FUND INC.
COMMON SHARES
CAPITAL ON DEMAND™
SECOND AMENDED AND RESTATED
SALES AGREEMENT
October 10th, 2024
JONESTRADING
INSTITUTIONAL SERVICES LLC
325 Hudson Street, 6th Floor
New York, NY 10013
Ladies and Gentlemen:
Western Asset Mortgage Opportunity Fund Inc., a Maryland corporation (the “Fund”), Franklin Templeton
Fund Adviser, LLC, a Delaware limited liability company (f/k/a Legg Mason Partners Fund Advisor, LLC, the “Manager”), Western Asset Management Company, LLC, a California limited liability company (the
“Subadviser”) and JonesTrading Institutional Services LLC (“Jones”) previously entered into a Capital on Demand™ Amended and Restated Sales
Agreement dated May 12, 2021 (the “Original Agreement”). The parties hereby amend and restate the Original Agreement and collectively confirm their agreement in the form of this Capital on Demand™ Second Amended and Restated Sales Agreement (this “Agreement”), which supersedes and replaces the Original Agreement, as follows:
1. Issuance and Sale of Shares. The Fund agrees that, from time to time during the term of this Agreement, on the
terms and subject to the conditions set forth herein, it may issue and sell through Jones, acting as agent and/or principal, the Fund’s common shares, par value $0.001 per share (the “Shares”) having an aggregate
offering price of up to $75,000,000. Notwithstanding anything to the contrary contained herein, the parties hereto agree that compliance with the limitations set forth in this Section 1 on the number of Shares issued and
sold under this Agreement shall be the sole responsibility of the Fund, and Jones shall have no obligation in connection with such compliance. The issuance and sale of Shares through Jones will be effected pursuant to the Registration Statement (as
defined below) filed by the Fund and declared effective by the Securities and Exchange Commission (the “Commission”).
The Fund has entered into a Management Agreement with the Manager dated as of
July 31, 2020, a Custodian Services Agreement with The Bank of New York Mellon, dated as of January 1, 2018, as amended, and a Transfer Agency and Services Agreement between the Fund, Computershare Inc. and Computershare Trust Company,
N.A, dated as of March 14, 2016, and such agreements are herein referred to as the “Management Agreement,” the “Custodian Agreement,” and the “Transfer Agency Agreement,”
respectively. Collectively, the Management Agreement, the Custodian Agreement and the Transfer Agency Agreement are herein referred to as the “Fund Agreements.” The Manager has entered into a Subadvisory Agreement with the
Subadviser dated July 31, 2020 (the “Subadvisory Agreement”) and the Subadviser has entered into a Subadvisory Agreement (the “Non-U.S. Subadvisory
Agreement”, together with the Subadvisory Agreement, the “Subadvisory Agreements”) with Western Asset Management Company Limited, a corporation organized under the laws of England and Wales (the “Non-U.S. Subadviser”, together with the Subadvisor, the “Subadvisers”), dated July 31, 2020. In addition, the Fund has adopted a dividend reinvestment plan (the
“Dividend Reinvestment Plan”) pursuant to which holders of shares of the Fund’s common stock shall have their dividends automatically reinvested in additional shares of the Fund’s common stock unless they elect to
receive such dividends in cash.
The Fund (a) has filed, in accordance with the provisions of the Securities Act of
1933, as amended, and the rules and regulations thereunder (collectively, the “Securities Act”) and the Investment Company Act of 1940, as amended, and the rules and regulations thereunder (collectively, the
“Investment Company Act”), with the Commission a registration statement on Form N-2 (File Nos. 333-279051 and 811-22369) (the
“Original Registration Statement”) and (b) may file, in accordance with the provisions of the Securities Act and the Investment Company Act, with the Commission one or more subsequent registration statements on Form N-2, including, in each case, a base prospectus with respect to the Shares and which incorporates by reference certain documents that the Fund has filed or will file in accordance with the provisions of the
Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder (the “Exchange Act”) and the Investment Company Act (the “Basic Prospectus”). The Fund shall prepare one or more
supplements to the Basic Prospectus relating to the Shares, including all documents incorporated by reference therein, to be filed with the Commission pursuant to Rule 424 under the Securities Act (collectively, the “Prospectus
Supplement”). The Fund shall furnish to Jones, for use by Jones, copies of the Basic Prospectus, as supplemented by the Prospectus Supplement, relating to the Shares. Except where the context otherwise requires, the Original
Registration Statement, as amended when it became effective, including all documents filed as part thereof and/or incorporated by reference therein, including the statement of additional information, and including any information contained in a
Prospectus Supplement subsequently filed with the Commission pursuant to Rule 424 under the Securities Act or deemed to be part of such registration statement pursuant to Rule 430B or Rule 430C of the Securities Act, or any subsequent registration
statement on Form N-2, as amended when it becomes effective, including all documents filed as a part thereof and/or incorporated by reference therein and including any information deemed to be part of such
registration statement pursuant to Rule 430B or Rule 430C of the Securities Act, (i) filed pursuant to Rule 415(a)(6) under the Securities Act by the Fund with respect
to any securities registered pursuant to the Original Registration Statement, including any Placement Shares (as defined below), as a result of the end of the three-year period described in Rule
415(a)(5) under the Securities Act or (ii) to register any additional Shares to be issued and sold under this Agreement is herein called the “Registration Statement.” The Basic Prospectus, as it may be supplemented by
the Prospectus Supplement, in the form in which such prospectus and/or Prospectus Supplement have most recently been filed by the Fund with the Commission pursuant to Rule 424 under the Securities Act, and in each case including all documents
incorporated by reference therein, is herein called the “Prospectus.” Any reference herein to the Registration Statement, the Basic Prospectus, the Prospectus or any amendment or supplement thereto, including the Prospectus
Supplement, shall be deemed to refer to and include the documents incorporated or deemed to be incorporated by reference therein, and any reference herein to the terms “amend,” “amendment” or “supplement” with respect
to the Registration Statement or the Prospectus shall be deemed to refer to and include the filing after the execution hereof of any document with the Commission pursuant to the Securities Act, the Exchange Act and the Investment Company Act, as
applicable, deemed to be incorporated by reference therein (collectively, the “Incorporated Documents”). For purposes of this Agreement, all references to the Registration Statement, the Prospectus, or to any amendment or
supplement thereto shall be deemed to include any copy filed with the Commission pursuant to its Electronic Data Gathering Analysis and Retrieval System (“EDGAR”). For purposes of this Agreement, all references to the
Registration Statement, unless otherwise noted and except as the context otherwise requires, should be deemed to include any and all amendments thereto filed with the Commission.
2. Placements. Each time that the Fund wishes to issue and sell Shares hereunder (each, a
“Placement”), it will notify Jones by e-mail notice (or other method mutually agreed to in writing by the parties) containing the parameters in accordance with which it desires the
Shares to be sold, which shall, at a minimum, include the number of Shares to be issued (the “Placement Shares”), the time period during which sales are requested to be made, any limitation on the number of Placement Shares
that may be sold in any one day and any minimum price below which sales may not be made (a “Placement Notice”), a form of which, containing such minimum sales parameters necessary, is attached hereto as Schedule 1. The
Placement Notice shall originate from any of the individuals from the Fund set forth on Schedule 3 (with a copy to each of the other individuals from the Fund listed on such schedule), and shall be addressed to each of the individuals from
Jones set forth on Schedule 3, as such Schedule 3 may be amended from time to time. The Placement Notice shall be effective upon receipt by Jones unless and until (i) in accordance with the notice requirement set forth in
Section 4 and within one Business Day (as defined herein) of its receipt of the Placement Notice, Jones declines to accept the terms contained therein for any reason, in its sole discretion, (ii) the entire amount of
the Placement Shares have been sold, (iii) in accordance with the notice requirements set forth in Section 4, the Fund suspends or terminates the Placement Notice, (iv) the Fund issues a subsequent Placement
Notice with parameters superseding those on the earlier dated Placement Notice, or (v) the Agreement has been terminated under the provisions of Section 11. The amount of any discount, commission or other compensation
to be paid by the Fund to Jones in connection with the sale of the Placement Shares shall be calculated in accordance with the terms set forth in Schedule 2. It is expressly acknowledged and agreed that neither the Fund nor
Jones will have any obligation whatsoever with respect to a Placement or any Placement Shares unless and until the Fund delivers a Placement Notice to Jones and Jones does not decline, within the
time period specified above, such Placement Notice pursuant to the terms set forth above, and then only upon the terms specified therein and herein. In the event of a conflict between the terms of this Agreement and the terms of a Placement Notice,
the terms of the Placement Notice will control.
3. Sale of Placement Shares by Jones. Subject to the terms
and conditions herein set forth, upon the Fund’s issuance of a Placement Notice, and unless the sale of the Placement Shares described therein has been declined, suspended or otherwise terminated in accordance with the terms of this Agreement,
Jones, for the period specified in the Placement Notice, will use its commercially reasonable efforts consistent with its normal trading and sales practices to sell such Placement Shares up to the amount specified, and otherwise in accordance with
the terms of such Placement Notice. Jones will provide written confirmation to the Fund no later than the opening of the Trading Day (as defined below) immediately following the Trading Day on which it has made sales of Placement Shares hereunder
setting forth the number of Placement Shares sold on such day, the compensation payable by the Fund with respect to such sales, with an itemization of deductions made by Jones (as set forth in Section 5(a)) from the gross
proceeds that it receives from such sales, and the Net Proceeds (as defined below) payable to the Fund. The Fund and the Manager each acknowledge that Jones intends to sell the Placement Shares in privately negotiated transactions and/or any other
method permitted by law, including sales made directly on the New York Stock Exchange (the “Exchange”), the then-existing trading market for the Shares or sales made to or through a market maker or through an electronic
communications network, or in any other manner that may be deemed to be an “at-the-market” offering as defined in Rule 415 under the Securities Act, in each
case at or above the then-current net asset value of the Fund’s common shares, exclusive of any distributing commission or discount, in accordance with Section 23(b) of the Investment Company Act. To the extent that Jones acts as the
Fund’s agent with respect to any such sale, Jones covenants that it will comply with all prospectus delivery requirements imposed under applicable federal and state securities laws. The Fund and the Manager each acknowledge and agree that
(i) there can be no assurance that Jones will be successful in selling Placement Shares, and (ii) Jones will not incur any liability or obligation to the Fund, the Manager, the Subadviser or any other person or entity if it does not sell
Placement Shares for any reason other than a failure by Jones to use its commercially reasonable efforts consistent with its normal trading and sales practices to sell such Placement Shares as required under this Section 3.
For the purposes hereof, “Trading Day” means any day on which Shares are purchased and sold on the principal exchange or market on which the Shares are listed or quoted.
4. Suspension of Sales. The Fund or Jones may, upon notice to the other party in writing (including by e-mail correspondence to all of the individuals of the other party set forth on Schedule 3 or by telephone (confirmed immediately by verifiable facsimile transmission or
e-mail correspondence to all of the individuals of the other party set forth on Schedule 3)), suspend or refuse to undertake any sale of Placement Shares; provided, however, that such
suspension or refusal shall not affect or impair either party’s obligations with respect to any Placement Shares sold hereunder prior to the receipt of such notice.
Each of the parties hereto agrees that no such notice shall be effective against the other unless it is made to the individuals named on Schedule 3 hereto in accordance with this
Section 4, as such Schedule may be amended from time to time.
5. Settlement.
(a) Settlement of Placement Shares. Unless otherwise specified in the applicable Placement Notice, settlement
for sales of Placement Shares will occur on the first (1st) Business Day (or such earlier day as is industry practice for regular-way trading) following the date on which such sales are made (each, a
“Settlement Date”). The amount of proceeds to be delivered to the Fund on a Settlement Date against the receipt of the Placement Shares sold (the “Net Proceeds”) will be equal to the aggregate sales
price at which such Placement Shares were sold, after deduction for (i) Jones’s commission, discount or other compensation for such sales payable by the Fund pursuant to Section 2 hereof, (ii) Reimbursable
Amounts (as defined herein), (iii) any other amounts due and payable by the Fund to Jones hereunder pursuant to Section 7(e) hereof, and (iv) any transaction fees imposed by any governmental or self-regulatory
organization in respect of such sales.
(b) Delivery of Shares. On or before each Settlement Date, the Fund
will, or will cause its transfer agent to, electronically transfer the Placement Shares being sold by crediting Jones’s or its designee’s account at The Depository Trust Company through its Deposit and Withdrawal at Custodian
(“DWAC”) System or by such other means of delivery as may be mutually agreed upon by the parties hereto and, upon receipt of such Placement Shares, which in all cases shall be freely tradable, transferable, registered shares
in good deliverable form, Jones will deliver the related Net Proceeds in same day funds to an account designated by the Fund prior to the Settlement Date. The Fund agrees that if the Fund defaults on its obligation to deliver Placement Shares on a
Settlement Date, the Fund and the Manager each agree that, in addition to and in no way limiting the rights and obligations set forth in Section 9(a) hereto, it will (i) hold Jones harmless against any loss, claim,
damage, or expense (including reasonable legal fees and expenses), as incurred, arising out of or in connection with such default by the Fund and (ii) pay to Jones any commission, discount, or other compensation to which it would otherwise have
been entitled absent such default.
6. Representations and Warranties of the Fund, the Manager and the
Subadviser.
(a) Representations and Warranties by the Fund and the Manager. The Fund and the Manager,
jointly and severally, represent and warrant to and agree with Jones as of the date hereof, as of each Representation Date (as defined in Section 7(j) below) and as of the time of each sale of Placement Shares pursuant to
the Agreement (the “Applicable Time”) as follows:
(1) The Original
Registration Statement has been declared effective by the Commission under the Securities Act as of the date hereof. The Registration Statement is effective under the Securities Act as of each Representation Date. Each Prospectus included as part of
the Registration Statement as originally filed
or as part of any amendment or supplement thereto or filed pursuant to Rule 424 under the Securities Act complied when so filed in all material respects with the provisions of the Securities Act
and the Investment Company Act. The Commission has not issued any order preventing or suspending the use of the Prospectus or the effectiveness of the Registration Statement and no proceedings for such purpose have been instituted or, to the
knowledge of the Fund, are contemplated by the Commission.
(2) (A) The Registration Statement in
the form in which it became effective and also in such form as it may be when any post-effective amendment thereto shall become effective and as of the date hereof, as of each Applicable Time and as of each Settlement Date, and (B) the
Prospectus and any amendment or supplement thereto when filed with the Commission pursuant to Rule 424 under the Securities Act and as of the date hereof, as of each Applicable Time and as of each Settlement Date, complied or will comply in all
material respects with the provisions of the Securities Act and the Investment Company Act, and each of the Registration Statement and the Prospectus did not or will not at any such times contain an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the statements therein (in the case of the Prospectus, in light of the circumstances under which they were made) not misleading; except that this representation and warranty
does not apply to statements in or omissions from the Registration Statement and the Prospectus made in reliance upon and in conformity with information relating to Jones furnished to the Fund in writing by or on behalf of Jones expressly for use
therein.
(3) Each Incorporated Document heretofore filed, when it was filed with the Commission
complied in all material respects with the requirements of the Exchange Act and the Investment Company Act, as applicable, and any further Incorporated Documents so filed and incorporated after the date of this Agreement will, when they are
filed, comply in all material respects with the requirements of the Exchange Act and the Investment Company Act, as applicable; no such Incorporated Document, at the time it was filed or hereafter is filed with the Commission contained or
will contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; except that
this representation and warranty does not apply to statements in or omissions from the Incorporated Documents made in reliance upon and in conformity with information relating to Jones furnished to the Fund in writing by or on behalf of Jones for
use therein.
(4) Each Additional Disclosure Item (as defined in
Section 6(a)(22) hereof), does not and will not conflict, in all material respects, with the information contained in the Registration Statement or the Prospectus and each such Additional Disclosure Item, as supplemented by
and taken together with the Prospectus as of each Applicable Time and each Settlement Date, did not and will not include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in
the light of the circumstances under which
they were made, not misleading; except that this representation and warranty does not apply to statements in or omissions from any Additional Disclosure Item made in reliance upon and in
conformity with information relating to Jones furnished to the Fund in writing by or on behalf of Jones for use therein.
(5) The Fund has been duly organized and is validly existing in good standing as a corporation under the
laws of Maryland, with full corporate power and authority to own, lease and operate its properties and to conduct its business as described in the Registration Statement and the Prospectus and is duly qualified to do business and is in good standing
under the laws of each jurisdiction which requires such qualification except where the failure to so register or qualify does not have a material adverse change in the condition (financial or otherwise), business prospects, earnings, business or
properties of the Fund, whether or not arising from transactions in the ordinary course of business (a “Fund Material Adverse Effect”). The Fund has no subsidiaries.
(6) The Fund’s authorized equity capitalization is as set forth in the Registration Statement and
the Prospectus; the capital stock of the Fund conforms in all material respects to the description thereof contained in the Registration Statement and the Prospectus; all outstanding shares of the Fund’s common stock have been duly and validly
authorized and issued and are fully paid and nonassessable; the Placement Shares have been duly and validly authorized, and, when issued and delivered against payment therefor pursuant to this Agreement, will be validly issued and fully paid and
nonassessable; the Placement Shares are duly listed, and admitted and authorized for trading, subject to official notice of issuance and evidence of satisfactory distribution, on the Exchange; the certificates, if any, for the Placement Shares are
in valid and sufficient form; the holders of outstanding shares of the Fund’s common stock are not entitled to preemptive or other rights to subscribe for the Placement Shares; and, except as set forth in the Registration Statement or the
Prospectus, no options, warrants or other rights to purchase, agreements or other obligations to issue, or rights to convert any obligations into or exchange any securities for, shares of capital stock of or ownership interests in the Fund are
outstanding.
(7) The Fund’s registration statement on Form
8-A under the Exchange Act has become effective.
(8) The
Fund, subject to the Registration Statement having been declared effective and the filing of the Prospectus under Rule 424, has taken all required action under the Securities Act, the Investment Company Act and the Exchange Act to make the public
offering and consummate the sale of the Placement Shares as contemplated by this Agreement.
(9) There are no agreements, contracts, indentures, leases, permits or other instruments, that are
required to be described in the Registration Statement or the Prospectus, or to be filed as an exhibit to the Registration Statement, which are not described or filed as required; the statements in the Registration Statement and
the Prospectus on the inside front cover and under the headings “Prospectus Summary,” “The Fund’s Investments,” “Leverage,” “Risks,” “Management
of the Fund,” “Dividend Reinvestment Plan,” “Description of Shares,” “Certain Provisions in the Charter and Bylaws,” “Certain United States Federal Income Tax Considerations” and “Investment Policies
and Techniques,” insofar as such statements summarize legal matters, agreements, documents or proceedings discussed therein, are accurate and fair summaries of such legal matters, agreements, documents or proceedings in all material respects.
(10) The Fund has full corporate power and authority to enter into this Agreement and the Fund
Agreements; the execution and delivery of, and the performance by the Fund of its obligations under, this Agreement and the Fund Agreements have been duly authorized by the Fund and this Agreement and the Fund Agreements have been duly executed and
delivered by the Fund.
(11) The Fund is duly registered under the Investment Company Act as a closed-end, non-diversified, management investment company and the Fund’s notification of registration as an investment company under the Investment Company Act on Form N-8A, as amended from time to time (the “Investment Company Act Notification”) has been duly filed with the Commission. The Fund has not received any notice from the Commission pursuant to
Section 8(e) of the Investment Company Act with respect to the Investment Company Act Notification or the Registration Statement.
(12) Other than as provided in Section 6(a)(8) above, no consent, approval,
authorization, filing with or order of any court or governmental agency or body is required in connection with the transactions contemplated herein or in the Fund Agreements, except such as have been made or obtained under the Securities Act, the
Exchange Act, the Advisers Act of 1940, as amended, and the rules and regulations thereunder (the “Advisers Act”), the Investment Company Act, the rules and regulations of FINRA and the Exchange, and such as may be required
under the blue sky laws of any jurisdiction in connection with the purchase and distribution of the Placement Shares in the manner contemplated herein and in the Registration Statement and the Prospectus.
(13) Neither the issuance and sale of the Placement Shares, the execution, delivery or performance of
this Agreement or any of the Fund Agreements, nor the consummation of the transactions herein or therein contemplated, nor the fulfillment of the terms hereof or thereof or the adoption of the Dividend Reinvestment Plan, conflict with, result in a
breach or violation of, or imposition of any lien, charge or encumbrance upon any property or assets of the Fund pursuant to, (i) the charter and bylaws of the Fund, (ii) the terms of any indenture, contract, lease, mortgage, deed of
trust, note agreement, loan agreement or other agreement, obligation, condition, covenant or instrument to which the Fund is a party or bound or to which its property is subject, or (iii) any statute, law, rule, regulation, judgment, order or
decree applicable to the Fund of any court, regulatory body, administrative agency, governmental body, arbitrator or other authority
having jurisdiction over the Fund or any of its properties except, in the case of (ii) and (iii) above, where such a conflict, breach, violation or imposition would not reasonably be
expected to have a Fund Material Adverse Effect.
(14) No holders of securities of the Fund have
rights to the registration of such securities under the Registration Statement.
(15) The financial
statements, together with related schedules and notes, included or incorporated by reference in the Registration Statement and the Prospectus present fairly, in all material respects, the financial condition, results of operations and cash flows of
the Fund as of the dates and for the periods indicated, comply as to form with the applicable accounting requirements of the Securities Act and the Investment Company Act and have been prepared in conformity with generally accepted accounting
principles applied on a consistent basis throughout the periods involved (except as otherwise noted therein); and the other financial and statistical information and data included in the Registration Statement and the Prospectus are accurately
derived from such financial statements and the books and records of the Fund.
(16) No action, suit
or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Fund or its property is pending or, to the knowledge of the Fund, threatened that (i) would reasonably be expected to have a material
adverse effect on the Fund’s performance of this Agreement or the consummation of any of the transactions herein contemplated or (ii) would reasonably be expected to have a Fund Material Adverse Effect, except as set forth in or
contemplated in the Registration Statement and the Prospectus.
(17) The Fund owns or leases all
such properties as are necessary to the conduct of its operations as presently conducted.
(18) The
Fund is not in violation or default of any provision of its charter or bylaws or (i) the terms of any indenture, contract, lease, mortgage, deed of trust, note agreement, loan agreement or other agreement, obligation, condition, covenant or
instrument to which it is a party or bound or to which its property is subject or (ii) any statute, law, rule, regulation, judgment, order or decree of any court, regulatory body, administrative agency, governmental body, arbitrator or other
authority having jurisdiction over the Fund or any of its properties, except in the case of (i) and (ii) above, where such a violation or default would not reasonably be expected to have a Fund Material Adverse Effect.
(19) Since the date as of which information is given in the Prospectus, except as otherwise stated
therein, (i) there has been no material adverse change in the condition (financial or otherwise), business prospects, earnings, business or properties of the Fund (other than as a result of a change in the financial markets generally), whether
or not arising from transactions in the ordinary course of business, (ii) there have been no transactions entered into by the Fund which are material to the Fund other than those in the ordinary course of its business as
described in the Registration Statement and the Prospectus and (iii) there has been no dividend or distribution of any kind declared, paid or made by the Fund on any class of its capital
stock.
(20) PricewaterhouseCoopers LLP, who have audited the financial statements of the Fund and
delivered their report with respect to the audited financial statements included or incorporated by reference in the Registration Statement and the Prospectus, is an independent registered public accounting firm with respect to the Fund within the
meaning of the Securities Act, the Investment Company Act.
(21) The Fund has not distributed and,
prior to the completion of the distribution of the Placement Shares, will not distribute any offering material in connection with the offering and sale of the Placement Shares other than the Registration Statement, the Prospectus, any Additional
Disclosure Item (as defined below) or other materials filed by the Fund with the Commission pursuant to the Securities Act and/or the Investment Company Act, including Reports (as defined herein).
(22) Without the prior consent of Jones (such consent not to be unreasonably withheld or delayed), the
Fund has not made and will not make any offer relating to the Placement Shares that would constitute a “free writing prospectus” as defined in Rule 405 under the Securities Act and which the parties agree, for the purposes of this
Agreement, includes (1) any “advertisement” as defined in Rule 482 under the Securities Act and treated by the Fund as subject to Rule 482 under the Securities Act and (2) any sales literature, materials or information provided
to investors by, or with the approval of, the Fund in connection with the sale or marketing of the offering of the Placement Shares, including any road show or investor presentations (including slides and scripts relating thereto) made to investors
by or on behalf of the Fund (the materials and information referred to in this Section 6(a)(22) are herein referred to as “Additional Disclosure Items”). All Additional Disclosure Items complied and
will comply in all material respects with (i) the applicable requirements of the Securities Act and the Investment Company Act, including without limitation all applicable filing (where required), legending and record keeping requirements, and
(ii) the rules and interpretations of FINRA.
(23) The Fund is insured by insurers of
recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which it is engaged and which the Fund deems adequate; all policies of insurance insuring the Fund or its
business, assets, employees, officers and directors, including the Fund’s directors and officers errors and omissions insurance policy and its fidelity bond required by Rule 17g-1 under the Investment
Company Act, are in full force and effect; the Fund is in compliance with the terms of such policy and fidelity bond in all material respects; and there are no claims by the Fund under any such policy or fidelity bond as to which any insurance
company is denying liability or defending under a reservation of rights
clause; the Fund has not been refused any insurance coverage sought or applied for; and the Fund has no reason to believe that it will not be able to renew its existing insurance coverage and
fidelity bond as and when such coverage and fidelity bond expires or to obtain similar coverage and fidelity bond from similar insurers as may be necessary to continue its business at a cost that would not have a Fund Material Adverse Effect, except
as set forth in or contemplated in the Registration Statement and the Prospectus (exclusive of any supplement thereto).
(24) The Fund possesses all licenses, certificates, permits and other authorizations issued by the
appropriate federal, state or foreign regulatory authorities necessary to conduct its business except to the extent that the failure to have any such permit would not have a Fund Material Adverse Effect, except as set forth in or contemplated in the
Registration Statement and the Prospectus (exclusive of any supplement thereto); the Fund has not received any notice of proceedings relating to the revocation or modification of any such license, certificate, permit or authorization which, singly
or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would have a Fund Material Adverse Effect, except as set forth in or contemplated in the Registration Statement and the Prospectus.
(25) The Fund maintains and will maintain a system of internal accounting controls designed to provide
reasonable assurances that (i) transactions are executed in accordance with management’s general or specific authorization and with the investment objectives, policies and restrictions of the Fund and the applicable requirements of the
Investment Company Act and the Internal Revenue Code of 1986, as amended (the “Code”); (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting
principles, to calculate net asset value, to maintain accountability for assets and to maintain material compliance with the books and records requirements under the Investment Company Act; (iii) access to assets is permitted only in accordance
with management’s general or specific authorization; and (iv) the recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The Fund employs
“internal control over financial reporting” (as such term is defined in Rule 30a-3 under the Investment Company Act) and such internal control over financial reporting is and shall be effective as
required by the Investment Company Act. The Fund is not aware of any material weakness in its internal control over financial reporting.
(26) The Fund maintains “disclosure controls and procedures” (as such term is defined in Rule 30a-3 under the Investment Company Act); such disclosure controls and procedures are designed as required by the Investment Company Act.
(27) The Fund has not taken, directly or indirectly, any action designed to or that would constitute or
that might reasonably be expected to cause or result in violation of federal securities laws, in stabilization or manipulation of the price of any security of the Fund to facilitate the offering and sale of the Placement Shares, and the Fund is not
aware of any such action taken or to be taken by any
affiliates of the Fund other than (i) such actions as taken by Jones and (ii) tender offers, share repurchases and the issuance or purchase of shares pursuant to the Fund’s
Dividend Reinvestment Plan effected following the date on which the distribution of the Placement Shares is completed, in each case, so long as such actions are in compliance with all applicable law.
(28) This Agreement and each of the Fund Agreements complies in all material respects with all
applicable provisions of the Securities Act, the Investment Company Act and the Advisers Act and the Fund’s directors and the Fund’s shareholders have approved the Management Agreement and the Subadvisory Agreements in accordance with
Section 15 of the Investment Company Act.
(29) Except as disclosed in the Registration
Statement and the Prospectus, no director of the Fund is an “interested person” (as defined in the Investment Company Act) of the Fund or an “affiliated person” (as defined in the Investment Company Act) of Jones. For purposes of
this Section 6(a)(29), the Fund and the Manager shall be entitled to rely on representations from such officers and directors.
(30) The Fund intends to direct the investment of the proceeds of the offering described in the
Prospectus in such a manner as to comply with the requirements of Subchapter M of the Code and intends to qualify as a regulated investment company under Subchapter M of the Code.
(31) The conduct by the Fund of its business (as described in the Registration Statement and the
Prospectus) does not require it to be the owner, possessor or licensee of any patents, patent licenses, trademarks, service marks or trade names which it does not own, possess or license.
(32) The Fund has filed all foreign, federal, state and local tax returns required to be filed or has
properly requested extensions thereof (except in any case in which the failure so to file would not have a Fund Material Adverse Effect, and except as set forth in or contemplated in the Registration Statement and the Prospectus) and has paid all
taxes required to be paid by it and any other assessment, fine or penalty levied against it, to the extent that any of the foregoing is due and payable, except for any such tax, assessment, fine or penalty that is currently being contested in good
faith or as would not have a Fund Material Adverse Effect, and except as set forth in or contemplated in the Registration Statement and the Prospectus.
(33) There is and has been no failure on the part of the Fund and any of the Fund’s directors or
officers, in their capacities as such, to comply with any applicable provision of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection therewith (the “Sarbanes-Oxley Act”).
(34) The Fund has adopted and implemented written policies and procedures reasonably designed to prevent
violation of the Federal Securities Laws
(as that term is defined in Rule 38a-1 under the Investment Company Act) by the Fund, including policies and procedures that provide oversight of
compliance by each investment adviser, administrator and transfer agent of the Fund.
(35) The
operations of the Fund are and have been conducted at all times in compliance with applicable financial recordkeeping and reporting requirements and the money laundering statutes and the rules and regulations thereunder and any related or similar
rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the “Money Laundering Laws”) and no action, suit or proceeding by or before any court or governmental agency,
authority or body or any arbitrator involving the Fund with respect to the Money Laundering Laws is pending or, to the knowledge of the Fund, threatened.
(36) There are no business relationships or related-party transactions involving the Fund or any other
person required to be described in the Registration Statement and the Prospectus which have not been described as required, it being understood and agreed that the Fund and the Manager make no representation or warranty with respect to any such
relationships involving Jones or any affiliate and any other person that have not been disclosed to the Fund by Jones in connection with this offering.
(37) Neither the Fund nor, to the knowledge of the Fund, any director, officer, agent, employee or
affiliate of the Fund is aware of or has taken any action in connection with the Fund, directly or indirectly, that would result in a violation by such persons of the Foreign Corrupt Practices Act of 1977, as amended and the rules and regulations
thereunder (the “FCPA”) including, without limitation, making use of the mails or any means or instrumentality of interstate commerce corruptly in furtherance of an offer, payment, promise to pay or authorization of the
payment of any money, or other property, gift, promise to give, or authorization of the giving of anything of value to any “foreign official” (as such term is defined in the FCPA) or any foreign political party or official thereof or any
candidate for foreign political office, in contravention of the FCPA and the Fund, and to the knowledge of the Fund, its affiliates have conducted their businesses in compliance with the FCPA and have instituted and maintain policies and procedures
designed to ensure, and which are reasonably expected to continue to ensure, continued compliance therewith.
(38) Neither the Fund nor, to the knowledge of the Fund, any director, officer, agent, employee or
affiliate of the Fund is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”); and the Fund will not directly or indirectly use the proceeds of
the offering, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity, for the purpose of financing the activities of any person currently subject to any U.S. sanctions
administered by OFAC.
Any certificate signed by any officer of the Fund and delivered to Jones or
counsel for Jones in connection with the offering of the Placement Shares shall be deemed a representation and warranty by the Fund, as to matters covered therein, to Jones.
(b) Representations and Warranties with Respect to the Manager. The Manager represents and warrants to and
agrees with Jones as of the date hereof, as of each Representation Date (as defined in Section 7(j) below) and as of each Applicable Time as follows:
(1) The Manager has been duly formed and is validly existing in good standing under the laws of the
jurisdiction of its organization, with full power and authority to own, lease and operate its properties and to conduct its business as described in the Registration Statement and the Prospectus, and is duly qualified to do business and is in good
standing under the laws of each jurisdiction which requires such qualification, except where the failure to so qualify does not have a material adverse change in the condition (financial or otherwise), business prospects, earnings, business or
properties of the Manager, whether or not arising from transactions in the ordinary course of business (a “Manager Material Adverse Effect”).
(2) The Manager is duly registered as an investment adviser under the Advisers Act and the Manager is
not prohibited by the Advisers Act or the Investment Company Act from acting under the Management Agreement as contemplated by the Registration Statement and the Prospectus. The Manager has adopted and implemented written policies and procedures
under Rule 206(4)-7 of the Advisers Act reasonably designed to prevent violation of the Advisers Act by the Manager and its supervised persons.
(3) The Manager has full limited liability company power and authority to enter into this Agreement, the
Management Agreement and the Subadvisory Agreement; the execution and delivery of, and the performance by the Manager of its obligations under, this Agreement, the Management Agreement and the Subadvisory Agreement have been duly authorized by the
Manager; and this Agreement, the Management Agreement and the Subadvisory Agreement have been duly executed and delivered by the Manager.
(4) The Manager has the financial resources available to it necessary for the performance of its
services and obligations as contemplated in the Registration Statement and the Prospectus and under this Agreement, the Management Agreement and the Subadvisory Agreement, as applicable.
(5) The description of the Manager and its business, and the statements attributable to the Manager, in
the Registration Statement and the Prospectus complied and comply in all material respects with the provisions of the Securities Act, the Investment Company Act and the Advisers Act and did not and will not contain an untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.
(6) No action, suit or proceeding by or before any court or
governmental agency, authority or body or any arbitrator involving the Manager or its property is pending or, to the knowledge of the Manager, threatened that (i) is required to be described in the Registration Statement and the Prospectus that
is not so described as required, (ii) would reasonably be expected to have a material adverse effect on the ability of the Manager to fulfill its obligations hereunder or under the Management Agreement or the Subadvisory Agreement or
(iii) would reasonably be expected to have a Manager Material Adverse Effect, except as set forth in or contemplated in the Registration Statement and the Prospectus; and there are no agreements, contracts, indentures, leases, permits or other
instruments relating to the Manager that are required to be described in the Registration Statement or the Prospectus or to be filed as an exhibit to the Registration Statement that are not described or filed as required by the Securities Act and
the Investment Company Act.
(7) Since the date as of which information is given in the Prospectus,
except as otherwise stated therein, (i) there has been no material adverse change in the condition (financial or otherwise), business prospects, earnings, business or properties of the Manager, whether or not arising from transactions in the
ordinary course of business and (ii) there have been no transactions entered into by the Manager which are material to the Manager other than those in the ordinary course of its business as described in the Registration Statement and the
Prospectus.
(8) The Manager possesses all licenses, certificates, permits and other authorizations
issued by the appropriate federal, state or foreign regulatory authorities necessary to conduct its business in the manner described in or contemplated in the Registration Statement and the Prospectus except to the extent that the failure to do so
would not have a Manager Material Adverse Effect; the Manager has not received any notice of proceedings relating to the revocation or modification of any such license, certificate, permit or authorization which, singly or in the aggregate, if the
subject of an unfavorable decision, ruling or finding, would have a Manager Material Adverse Effect, except as set forth in or contemplated in the Registration Statement and the Prospectus.
(9) This Agreement, the Management Agreement and the Subadvisory Agreement comply in all material
respects with all applicable provisions of the Securities Act, the Investment Company Act and the Advisers Act.
(10) No consent, approval, authorization, filing with or order of any court or governmental agency or
body is required in connection with the transactions contemplated herein or in the Management Agreement or the Subadvisory Agreement except such as have been made or obtained under the Securities Act, the Exchange Act, the Advisers Act, the
Investment Company Act, the rules and regulations of FINRA, and such as may be required under the blue sky laws of any jurisdiction in connection with the purchase and distribution of the Placement Shares in the manner contemplated herein and in the
Registration Statement and the Prospectus.
(11) Neither the execution, delivery or performance of this
Agreement, the Management Agreement or the Subadvisory Agreement nor the consummation of the transactions herein or therein contemplated, nor the fulfillment of the terms hereof or thereof, conflict with, result in a breach or violation of, or
imposition of any lien, charge or encumbrance upon any property or assets of the Manager pursuant to, (i) the organizational documents of the Manager, including without limitation, its articles of organization, certificate of formation or
similar organizational documents and its operating agreement, limited liability company agreement, membership agreement or other similar agreement, (ii) the terms of any indenture, contract, lease, mortgage, deed of trust, note agreement, loan
agreement or other agreement, obligation, condition, covenant or instrument to which the Manager is a party or bound or to which its property is subject or (iii) any statute, law, rule, regulation, judgment, order or decree applicable to the
Manager of any court, regulatory body, administrative agency, governmental body, arbitrator or other authority having jurisdiction over the Manager or any of its properties, except in the case of (ii) and (iii) above, where such a conflict,
breach, violation or imposition would not have a Manager Material Adverse Effect.
(12) The Manager
has not taken, directly or indirectly, any action designed to or that would constitute or that might reasonably be expected to cause or result in violation of federal securities laws, in stabilization or manipulation of the price of any security of
the Fund to facilitate the offering and sale of the Placement Shares, and the Manager is not aware of any such action taken or to be taken by any affiliates of the Manager, other than (i) such actions as taken by Jones and (ii) tender
offers, share repurchases and the issuance or purchase of shares pursuant to the Fund’s Dividend Reinvestment Plan effected following the date on which the distribution of the Placement Shares is completed, in each case, so long as such actions
are in compliance with all applicable law.
(13) In the event that the Fund, the Manager or any
Subadviser makes available any promotional materials related to the Placement Shares or the transactions contemplated hereby intended for use only by registered broker-dealers and registered representatives thereof by means of an Internet web site
or similar electronic means, the Manager will install and maintain or will cause to be installed and maintained, re-qualification and password-protection or similar procedures which are reasonably designed to
effectively prohibit access to such promotional materials by persons other than registered broker-dealers and registered representatives thereof.
(14) The operations of the Manager and its subsidiaries are and have been conducted at all times in
compliance with applicable Money Laundering Laws and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Manager or any of its subsidiaries with respect to the Money
Laundering Laws is pending or, to the knowledge of the Manager, threatened.
(15) The Manager maintains a system of internal controls
designed to provide reasonable assurance that (i) transactions effectuated by it under the Management Agreement and the Subadvisory Agreement are executed in accordance with its management’s general or specific authorization; and
(ii) access to the Fund’s assets is permitted only in accordance with its management’s general or specific authorization.
(16) Neither the Manager nor, to the knowledge of the Manager, any director, officer, agent, employee or
affiliate of the Manager is aware of or has taken any action in connection with the Manager, directly or indirectly, that would result in a violation by such persons of the FCPA, including, without limitation, making use of the mails or any means or
instrumentality of interstate commerce corruptly in furtherance of an offer, payment, promise to pay or authorization of the payment of any money, or other property, gift, promise to give, or authorization of the giving of anything of value to any
“foreign official” (as such term is defined in the FCPA) or any foreign political party or official thereof or any candidate for foreign political office, in contravention of the FCPA and the Manager, and to the knowledge of the Manager,
its affiliates have conducted their businesses in compliance with the FCPA and have instituted and maintain policies and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance therewith.
(17) Neither the Manager nor, to the knowledge of the Manager, any director, officer, agent, employee or
affiliate of the Manager is currently subject to any U.S. sanctions administered by OFAC; and the Manager will not directly or indirectly use the proceeds of the offering, or lend, contribute or otherwise make available such proceeds to any
subsidiary, joint venture partner or other person or entity, for the purpose of financing the activities of any person currently subject to any U.S. sanctions administered by OFAC.
Any certificate signed by any officer of the Manager and delivered to Jones or counsel for Jones in connection with the
offering of the Placement Shares shall be deemed a representation and warranty by the Manager, as to matters covered therein, to Jones.
(c) Representations and Warranties with Respect to the Subadviser and the
Non-U.S Subadviser. The Subadviser represents and warrants to and agrees with Jones as of the date hereof, as of each Representation Date (as defined in Section 7(j) below) and as
of each Applicable Time as follows:
(1) Each Subadviser has been duly formed and is validly
existing in good standing under the laws of the jurisdiction of its organization, with full power and authority to own, lease and operate its properties and to conduct its business as described in the Registration Statement and the Prospectus, and
is duly qualified to do business and is in good standing under the laws of each jurisdiction which
requires such qualification, except where the failure to so register or qualify does not have a material adverse change in the condition (financial or otherwise), business prospects, earnings,
business or properties of such Subadviser, whether or not arising from transactions in the ordinary course of business (a “Subadviser Material Adverse Effect”).
(2) Each Subadviser is duly registered as an investment adviser under the Advisers Act and neither
Subadviser is prohibited by the Advisers Act or the Investment Company Act from acting under the Subadvisory Agreements as contemplated by the Registration Statement and the Prospectus. Each Subadviser has adopted and implemented written policies
and procedures under Rule 206(4)-7 of the Advisers Act reasonably designed to prevent violation of the Advisers Act by each Subadviser and its supervised persons.
(3) The Subadviser has full power and authority to enter into this Agreement and each Subadvisory
Agreement; the Non-U.S. Subadviser has full power and authority to enter into the Non-U.S. Subadvisory Agreement; the execution and delivery of, and the performance by
the Subadviser of its obligations under, this Agreement and the Subadvisory Agreement have been duly authorized by the Subadviser; this Agreement and the Subadvisory Agreement, have been duly executed and delivered by the Subadviser; the execution
and delivery of, and the performance by the Non-U.S. Subadviser of its obligations under, the Non-U.S. Subadvisory Agreement have been duly authorized by the Non-U.S. Subadviser; and the Non-U.S. Subadvisory Agreement has been duly executed and delivered by the Non-U.S. Subadviser.
(4) Each Subadviser has the financial resources available to it necessary for the performance of its
services and obligations as contemplated in the Registration Statement and the Prospectus and under this Agreement and the Subadvisory Agreements, as applicable.
(5) The description of each Subadviser and its business and the statements attributable to such
Subadviser in the Registration Statement and the Prospectus complied and comply in all material respects with the provisions of the Securities Act, the Investment Company Act and the Advisers Act and did not and will not contain an untrue statement
of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.
(6) No action, suit or proceeding by or before any court or governmental agency, authority or body or
any arbitrator involving a Subadviser, or any of such Subadviser’s property is pending or, to the knowledge of the Subadviser, threatened that (i) is required to be described in the Registration Statement and the Prospectus that is not so
described as required, (ii) would reasonably be expected to have a material adverse effect on the ability of a Subadviser to fulfill its obligations hereunder or under the Subadvisory Agreements, as applicable or (iii) would reasonably be
expected to have a Subadviser Material Adverse Effect, except as set
forth in or contemplated in the Registration Statement and the Prospectus; and there are no agreements, contracts, indentures, leases, permits or other instruments relating to the Subadvisers
that are required to be described in the Registration Statement or the Prospectus or to be filed as an exhibit to the Registration Statement that are not described or filed as required by the Securities Act or the Investment Company Act.
(7) Since the date as of which information is given in the Prospectus, except as otherwise stated
therein, (i) there has been no material adverse change in the condition (financial or otherwise), business prospects, earnings, business or properties of either Subadviser, whether or not arising from transactions in the ordinary course of
business and (ii) there have been no transactions entered into by either Subadviser which are material to such Subadviser other than those in the ordinary course of its business as described in the Registration Statement and the Prospectus.
(8) Each Subadviser possesses all licenses, certificates, permits and other authorizations issued
by the appropriate federal, state or foreign regulatory authorities necessary to conduct such Subadviser’s business, in the manner described in or contemplated in the Registration Statement and the Prospectus except to the extent that the
failure to do so would not have a Subadviser Material Adverse Effect; neither Subadviser has received any notice of proceedings relating to the revocation or modification of any such license, certificate, permit or authorization which, singly or in
the aggregate, if the subject of an unfavorable decision, ruling or finding, would have a Subadviser Material Adverse Effect, except as set forth in or contemplated in the Registration Statement and the Prospectus.
(9) This Agreement, as it applies to each Subadviser, and each Subadvisory Agreement comply in all
material respects with all applicable provisions of the Securities Act, the Investment Company Act and the Advisers Act.
(10) No consent, approval, authorization, filing with or order of any court or governmental agency or
body is required in connection with the performance by a Subadviser under the Subadvisory Agreements, except such as have been made or obtained under the Securities Act, the Exchange Act, the Advisers Act, the Investment Company Act, the rules and
regulations of FINRA, and such as may be required under the blue sky laws of any jurisdiction in connection with the purchase and distribution of the Placement Shares in the manner contemplated herein and in the Registration Statement and the
Prospectus.
(11) Neither the execution, delivery or performance by a Subadviser of its obligations
under this Agreement or the Subadvisory Agreements nor the consummation of the transactions herein or therein contemplated, nor the fulfillment of the terms hereof or thereof, conflict with, result in a breach or violation of, or imposition of any
lien, charge or encumbrance upon any property
or assets of the Subadvisers pursuant to, (i) the organizational documents of each Subadviser, including without limitation, its articles of organization, certificate of formation or similar
organizational documents and its operating agreement, limited liability company agreement, membership agreement or other similar agreement , (ii) the terms of any indenture, contract, lease, mortgage, deed of trust, note agreement, loan agreement or
other agreement, obligation, condition, covenant or instrument to which either Subadviser is a party or bound or to which its property is subject, or (iii) any statute, law, rule, regulation, judgment, order or decree applicable to either
Subadviser of any court, regulatory body, administrative agency, governmental body, arbitrator or other authority having jurisdiction over such Subadviser or any of properties of such Subadviser, except in the case of (ii) and (iii) above,
where such a conflict, breach, violation or imposition would not have a Subadviser Material Adverse Effect.
(12) Neither Subadviser has taken, directly or indirectly, any action designed to or that would
constitute or that might reasonably be expected to cause or result in violation of federal securities laws, in stabilization or manipulation of the price of any security of the Fund to facilitate the offering and sale of the Placement Shares, and
neither Subadviser is aware of any such action taken or to be taken by any affiliates of such Subadviser, other than (i) such actions as taken by Jones and (ii) tender offers, share repurchases and the issuance or purchase of shares
pursuant to the Fund’s Dividend Reinvestment Plan effected following the date on which the distribution of the Placement Shares is completed, in each case, so long as such actions are in compliance with all applicable law.
(13) The operations of the Subadvisers and subsidiaries of the Subadvisers are and have been conducted
at all times in compliance with applicable Money Laundering Laws and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Subadvisers, or any of the affiliates or subsidiaries
of the Subadvisers with respect to the Money Laundering Laws is pending or, to the knowledge of the Subadviser, threatened.
(14) Each Subadviser maintains a system of internal controls designed to provide reasonable assurance
that (i) transactions effectuated by it under the Subadvisory Agreements, as applicable, are executed in accordance with the general or specific authorization of the management of each Subadviser; and (ii) access to the Fund’s assets
is permitted only in accordance with the general or specific authorization of the management of each Subadviser.
(15) Neither the Subadvisers nor, to the knowledge of the Subadviser, any director, officer, agent,
employee or affiliate of the Subadvisers is aware of or has taken any action in connection with the Subadvisers, directly or indirectly, that would result in a violation by such persons of the FCPA, including, without limitation, making use of the
mails or any means or instrumentality of interstate commerce corruptly in furtherance of an offer, payment, promise to pay or authorization of the payment of any money, or other property, gift, promise to give,
or authorization of the giving of anything of value to any “foreign official” (as such term is defined in the FCPA) or any foreign political party or official thereof or any candidate
for foreign political office, in contravention of the FCPA and the Subadvisers, and to the knowledge of the Subadviser, the affiliates of the Subadvisers have conducted their businesses in compliance with the FCPA and have instituted and maintain
policies and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance therewith.
(16) Neither the Subadvisers nor, to the knowledge of the Subadviser, any director, officer, agent,
employee or affiliate of the Subadvisers is currently subject to any U.S. sanctions administered by OFAC; and the Subadvisers will not directly or indirectly use the proceeds of the offering, or lend, contribute or otherwise make available such
proceeds to any subsidiary, joint venture partner or other person or entity, for the purpose of financing the activities of any person currently subject to any U.S. sanctions administered by OFAC.
Any certificate signed by any officer of the Subadviser and delivered to Jones or counsel for Jones in connection with the
offering of the Placement Shares shall be deemed a representation and warranty by the Subadviser, as to matters covered therein, to Jones.
7. Covenants of the Fund and the Manager. The Fund and the Manager, jointly and severally, covenant and agree
with Jones that:
(a) The Fund will promptly advise Jones (i) when, during any period that a prospectus
relating to the offer or sale of Placement Shares is required to be delivered under the Securities Act, any amendment to the Registration Statement affecting the Placement Shares shall have become effective, (ii) of any request by the
Commission for any amendment or supplement to the Registration Statement, the Prospectus or any Additional Disclosure Items, or for any additional information, affecting or in respect of the Placement Shares, (iii) of the issuance by the
Commission of any order suspending the effectiveness of the Registration Statement affecting the Placement Shares or the institution or threatening of any proceeding for that purpose, and (iv) the receipt by the Fund of any notification with
respect to the suspension of the qualification of the Placement Shares for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose. The Fund will not file any amendment to the Registration Statement affecting the
Placement Shares or any supplement to the Prospectus affecting the Placement Shares unless the Fund has furnished Jones with a copy for its review prior to filing, and will not file any such proposed amendment or supplement affecting the Placement
Shares to which Jones reasonably objects, in any event until after the end of the period during which a prospectus is required to be delivered to purchasers of the Placement Shares under the Securities Act. Subject to the foregoing sentence, the
Fund will cause the Prospectus Supplement to be transmitted to the Commission for filing pursuant to Rule 424 under the Securities Act. The Fund will use its best efforts to prevent the issuance of any order suspending the effectiveness of the
Registration Statement affecting the Placement Shares and, if issued, to obtain as soon as possible the withdrawal thereof. The Fund will timely file the requisite copies of the Prospectus with the Commission pursuant to Rule 424(b) under the
Securities Act and will advise Jones of the time and manner of such filing.
(b) During any period in which a Prospectus relating to the Placement
Shares is required to be delivered by Jones under the Securities Act with respect to a pending sale of the Placement Shares (whether physically or through compliance with Rule 153, Rule 172 or otherwise), the Fund will comply so far as it is able
with all requirements imposed upon it by the Securities Act, the Exchange Act and the Investment Company Act, as from time to time in force, so far as necessary to permit the continuance of sales of the Placement Shares during such period in
accordance with the provisions hereof and the Prospectus, and will file with the Commission and the Exchange all documents pursuant to the Securities Act, the Exchange Act and the Investment Company Act in the manner and within the time periods
required by the Securities Act, Exchange Act and the Investment Company Act. If during such period any event occurs as a result of which the Prospectus, as then amended or supplemented, or any Additional Disclosure Item would include an untrue
statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances then existing, not misleading, or if during such period it is necessary to amend or supplement the Registration
Statement, Prospectus or any Additional Disclosure Item to comply with the Securities Act, the Fund will promptly notify Jones to suspend the offering of Placement Shares during such period and the Fund will promptly amend or supplement the
Registration Statement, Prospectus or such Additional Disclosure Item so as to correct such statement or omission or effect such compliance.
(c) During any period in which the Prospectus relating to the Placement Shares is required to be delivered by Jones
under the Securities Act with respect to a pending sale of the Placement Shares (whether physically or through compliance with Rule 153, Rule 172 or otherwise), the Fund will use its best efforts to cause the Placement Shares to be listed on the
Exchange and to qualify, if necessary, the Placement Shares for sale under the securities laws of such United States jurisdictions as Jones reasonably designates and to continue such qualifications in effect so long as required for the distribution
of the Placement Shares; provided, however, that the Fund shall not be required in connection therewith to qualify as a foreign corporation or dealer in securities, file a general consent to service of process in any jurisdiction, or
meet any other requirement in connection with this Section 7(c) deemed by the Fund to be unduly burdensome.
(d) The Fund will make generally available to its security holders as soon as practicable, but in any event not later
than 15 months after the end of the Fund’s current fiscal quarter, an earnings statement covering a 12-month period that satisfies the provisions of Section 11(a) of the Securities Act.
(e) The Fund agrees to pay all costs, fees and expenses incurred in connection with performance of its obligations
hereunder and in connection with the transactions contemplated under this Agreement, including, without limitation, (i) all expenses incident to the issuance and delivery of the Placement Shares (including all printing and engraving costs),
(ii) all fees and expenses of the registrar and transfer agent of the Placement Shares, (iii) all necessary issue, transfer and other stamp taxes in connection with the issuance and sale of the Placement Shares, (iv) all reasonable fees
and expenses of the Fund’s counsel and the Fund’s independent public or certified public accountants and other advisors, (v) all costs and expenses incurred in connection with the
preparation, printing, filing, shipping and distribution of the Registration Statement (including financial statements, exhibits, schedules, consents and certificates of experts) and the
Prospectus, and all amendments and supplements thereto and this Agreement, (vi) all filing fees, distribution fees, attorneys’ fees and expenses incurred by the Fund in connection with qualifying or registering (or obtaining exemptions
from the qualification or registration of) all or any part of the Placement Shares for offer and sale under the state securities or blue sky laws or any other country, including, if requested by Jones, the preparation by counsel for Jones and
printing of a “Blue Sky Survey,” or other memorandum, and any supplements thereto, advising Jones of such qualifications, registrations and exemptions, (vii) the fees and expenses associated with listing the Placement Shares on the
Exchange, (viii) the filing fees incident to, and the reasonable fees and disbursements of counsel to Jones in connection with, the review by FINRA of the terms of the sale of the Placement Shares (such fees and disbursements to be limited in
accordance with clause (ix) below), (ix) the reasonable fees and expenses of counsel for Jones (provided such fees and expenses (a) shall not exceed $40,000 in connection with the preparation and execution of this Agreement and the
preparation and filing of the initial Prospectus Supplement dated as of the date hereof relating to the Placement Shares and providing the services described in clauses (vi) and (viii) above and (b) shall not exceed $15,000 on an annual
basis in each annual period following the date of this Agreement) and (x) all other fees, costs and expenses incident to the performance by the Fund of its obligations hereunder. Except as provided in Section 7(e)(ix)
above with respect to Jones (the “Reimbursable Amounts”), the aggregate amount of any discount, commission or other compensation to be paid by the Fund to Jones in connection with Jones’ performance of its obligations
under this Agreement shall be as set forth on Schedule 2 attached hereto. The Fund shall pay to Jones the Reimbursable Amounts payable under this Section 7 in addition to such discount, commissions and other compensation payable to Jones
as contemplated by Schedule 2. Each of the Manager and the Subadviser agrees to pay all costs, fees and expenses of its respective counsel, to the extent applicable.
(f) The Fund will use the Net Proceeds as described in the Prospectus.
(g) The Fund will, at any time during the term of this Agreement, as supplemented from time to time, advise Jones
immediately after it shall have received notice or obtained knowledge thereof, of any information or fact that would alter or affect in any material respect any opinion, certificate, letter or other document required to be provided to Jones pursuant
to this Agreement.
(h) The Fund will cooperate with any due diligence review conducted by Jones or its agents,
including, without limitation, providing information and making available documents and senior corporate officers, as Jones may reasonably request; provided, however, that the Fund shall be required to make available documents and
senior corporate officers only (i) at the Fund’s principal offices and (ii) during the Fund’s ordinary business hours. The parties acknowledge that the due diligence review contemplated by this
Section 7(h) will include during the term of this Agreement a bring-down diligence conference among Jones and certain officers of the Fund’s operations or legal departments upon the issuance by the Fund of a Placement
Notice and a diligence conference to occur within five Business Days following the Fund’s filing of each of its annual report on Form
N-CSR (the “Annual Report”) and semi-annual report on N-CSRS (the “Semi-Annual
Report”, together with the Annual Report (the “Reports”) whereby the Fund, the Manager and the Subadviser will make their respective senior corporate officers, including portfolio managers, available to address
certain diligence inquiries of Jones and will provide such additional information and documents as Jones may reasonably request. The requirement to conduct a due diligence session under this Section 7(h) shall be waived if
at the time such due diligence session is required pursuant to this Agreement there is no Placement Notice outstanding or the Fund has suspended the sale of, or otherwise does not intend to sell, Placement Shares. Notwithstanding the foregoing, if
the Fund subsequently decides to issue a Placement Notice or otherwise resume the sale of Placement Shares prior to the next occurring Representation Date, the Fund shall conduct the due diligence session contemplated by this
Section 7(h) at or prior to the issuance of such Placement Notice or the resumption of the sale of Placement Shares.
(i) The Fund agrees that on such dates as the Securities Act shall require, the Fund will (i) file a Prospectus
Supplement with the Commission under Rule 424 under the Securities Act, which Prospectus Supplement will set forth, within the relevant period, the amount of Placement Shares sold through Jones, the Net Proceeds to the Fund and the compensation
payable by the Fund to Jones with respect to such Placement Shares, and (ii) deliver such number of copies of each such Prospectus Supplement to each exchange or market on which such sales were effected as may be required by the rules or
regulations of such exchange or market.
(j) During the term of this Agreement, each time the Fund (i) files
the Prospectus relating to the Placement Shares, (ii) amends or supplements the Registration Statement or the Prospectus relating to the Placement Shares by means of a post-effective amendment, sticker, or supplement (other than a Prospectus
Supplement filed in accordance with Section 7(i) of this Agreement or a post-effective amendment solely to file this Agreement as an exhibit to the Registration Statement) or (iii) files a Report, each of the Fund, the
Manager and the Subadviser shall furnish Jones with a certificate, in the form attached hereto as Exhibit 7(j). (Each date contemplated in subsections (i), (ii) and (iii) of this Section 7(j) is referred to
herein as a “Representation Date”). The requirement to provide a certificate under this Section 7(j) shall be waived if at the time of the required delivery of such certificate pursuant to this
Agreement there is no Placement Notice outstanding or the Fund has suspended the sale of, or otherwise does not intend to sell, Placement Shares. Notwithstanding the foregoing, if the Fund subsequently decides to issue a Placement Notice or
otherwise resume the sale of Placement Shares prior to the next occurring Representation Date, the Fund shall provide Jones with such certificate at or prior to the issuance of such Placement Notice or the resumption of the sale of Placement Shares.
(k) Except as otherwise provided in the last sentence of this Section 7(k), on the date
hereof and thereafter as of each Representation Date, or with respect to a Representation Date triggered by the filing of a Report, within three Business Days following the filing of such Report, the Fund shall cause to be furnished to Jones with a
written opinion of Simpson Thacher & Bartlett LLP (the “Fund Counsel”), dated the Representation Date or date of delivery, as applicable, in substantially the form attached
hereto as Exhibit 7(k)(i), but modified, as necessary, to relate to the Registration Statement and the Prospectus as then amended or supplemented; provided, however, that in
lieu of such opinion, counsel may furnish Jones with a letter to the effect that Jones may rely on a prior opinion delivered under this Section 7(k) to the same extent as if it were dated the date of such letter (except
that statements in such prior opinion shall be deemed to relate to the Registration Statement and the Prospectus as amended or supplemented at such Representation Date). Venable LLP or such other Maryland counsel that the Fund may select (in each
case, “Maryland Counsel”) shall furnish a separate opinion as to matters relating specifically to or otherwise governed by Maryland law. In the event that a Representation Date is triggered by the filing of a Semi-Annual
Report, only the opinion identified in Exhibit 7(k)(ii) shall be required and no opinion of Maryland Counsel shall be required. The requirement to provide the opinion of Fund Counsel and Maryland Counsel contemplated by this
Section 7(k) shall be waived if at the time of the required delivery of such opinion pursuant to this Agreement there is no Placement Notice outstanding or the Fund has suspended the sale of, or otherwise does not intend to
sell, Placement Shares. Notwithstanding the foregoing, if the Fund subsequently decides to issue a Placement Notice or otherwise resume the sale of Placement Shares prior to the next occurring Representation Date, the Fund shall provide Jones with
such opinion of Fund Counsel and Maryland Counsel at or prior to the issuance of such Placement Notice or the resumption of the sale of Placement Shares.
(l) (i) Except as otherwise provided in the last sentence of this
Section 7(l)(i), on the date hereof and thereafter as of each Representation Date, or with respect to a Representation Date triggered by the filing of a Report, within three Business Days following the filing of such
Report, the Manager shall cause to be furnished to Jones a written opinion of in-house counsel for the Manager (the “Manager Counsel”), dated the Representation Date, or date of
delivery, as applicable in substantially the form attached hereto as Exhibit 7(l)(i), but modified, as necessary, to relate to the Registration Statement and the Prospectus as then amended or supplemented; provided, however,
that in lieu of such opinion, counsel may furnish Jones with a letter to the effect that Jones may rely on a prior opinion delivered under this Section 7(l)(i) to the same extent as if it were dated the date of such letter
(except that statements in such prior opinion shall be deemed to relate to the Registration Statement and the Prospectus as amended or supplemented at such Representation Date). In the event that a Representation Date is triggered by the filing of a
Semi-Annual Report, the opinion contemplated in this Section 7(l)(i) shall not be required. The requirement to provide the opinion of Manager Counsel contemplated by this Section 7(l)(i) shall be
waived if at the time of the required delivery of such opinion pursuant to this Agreement there is no Placement Notice outstanding or the Fund has suspended the sale of, or otherwise does not intend to sell, Placement Shares. Notwithstanding the
foregoing, if the Fund subsequently decides to issue a Placement Notice or otherwise resume the sale of Placement Shares prior to the next occurring Representation Date, the Fund shall provide Jones with such opinion of Manager Counsel at or prior
to the issuance of such Placement Notice or the resumption of the sale of Placement Shares.
(ii) Except as otherwise provided in the last sentence of this
Section 7(l)(ii), on the date hereof and thereafter as of each Representation Date, or with respect to a Representation Date triggered by the filing of a Report, within three Business Days following the filing of such
Report, the Subadviser shall cause to be furnished to Jones with a written opinion of in-house counsel for the Subadviser (the “Subadviser Counsel”), dated the Representation
Date, or date of delivery, as applicable, in substantially the form attached hereto as Exhibit 7(l)(ii), but modified, as necessary, to relate to the Registration Statement and the Prospectus as then amended or supplemented; provided,
however, that in lieu of such opinion, counsel may furnish Jones with a letter to the effect that Jones may rely on a prior opinion delivered under this Section 7(l)(ii) to the same extent as if it were dated the
date of such letter (except that statements in such prior opinion shall be deemed to relate to the Registration Statement and the Prospectus as amended or supplemented at such Representation Date). In the event that a Representation Date is
triggered by the filing of a Semi-Annual Report, the opinion contemplated in this Section 7(l)(ii) shall not be required. The requirement to provide the opinion of Subadviser Counsel contemplated by this
Section 7(l)(ii) shall be waived if at the time of the required delivery of such opinion pursuant to this Agreement there is no Placement Notice outstanding or the Fund has suspended the sale of, or otherwise does not
intend to sell, Placement Shares. Notwithstanding the foregoing, if the Fund subsequently decides to issue a Placement Notice or otherwise resume the sale of Placement Shares prior to the next occurring Representation Date, the Fund shall provide
Jones with such opinion of Subadviser Counsel at or prior to the issuance of such Placement Notice or the resumption of the sale of Placement Shares.
(m) On the date hereof and thereafter as of each Representation Date, or with respect to a Representation Date
triggered by the filing of a Report, within three Business Days following the filing of such Report, and, during any period in which the Prospectus relating to the Placement Shares is required to be delivered by Jones (whether physically or through
compliance with Rule 153, Rule 172 or otherwise), each time that the Registration Statement is amended or the Prospectus supplemented to include additional amended financial information, Fund audited financial statements or Fund unaudited
semi-annual financial statements (in each case, a “Financial Supplement”) the Fund shall cause its independent accountants to furnish Jones letters (the “Comfort Letters”), dated the date of each
applicable Representation Date, or each date of delivery, as applicable, in form and substance satisfactory to Jones, (i) confirming that they are independent public accountants within the meaning of the Securities Act and are in compliance
with the applicable requirements relating to the qualification of accountants under Rule 2-01 of Regulation S-X of the Commission, (ii) stating, as of such date,
the conclusions and findings of such firm with respect to the financial information and other matters ordinarily covered by accountants’ “comfort letters” to underwriters in connection with registered public offerings (the first such
letter, the “Initial Comfort Letter”) and (iii) updating the Initial Comfort Letter with any information that would have been included in the Initial Comfort Letter had it been given on such date and modified as
necessary to relate to the Registration Statement and the Prospectus, as amended and supplemented to
the date of such letter. Notwithstanding the foregoing, in the event that a Representation Date is triggered by the filing of the Fund’s Semi-Annual Report, a Comfort Letter contemplated by
this Section 7(m) shall not be required; provided, however, that in such case the Fund shall deliver to Jones on the applicable date of delivery with respect to the filing of a Semi-Annual Report a certificate
of the Fund’s principal financial officer substantially in the form attached hereto as Exhibit 7(m) (the “Treasurer’s Certificate”). The requirement to provide a
Comfort Letter, or Treasurer’s Certificate, as applicable under this Section 7(m) shall be waived if at the time of the required delivery of the Comfort Letter or Treasurer’s Certificate pursuant to this Agreement
there is no Placement Notice outstanding or the Fund has suspended the sale of, or otherwise does not intend to sell, Placement Shares. Notwithstanding the foregoing, if the Fund subsequently decides to issue a Placement Notice or otherwise resume
the sale of Placement Shares prior to the next occurring applicable Report or Financial Supplement, the Fund shall provide Jones with a Comfort Letter or Treasurer’s Certificate, as applicable, at or prior to the issuance of such Placement
Notice or the resumption of the sale of Placement Shares.
(n) On the date hereof and thereafter as of each
Representation Date, or with respect to a Representation Date triggered by the filing of a Report, within three Business Days following the filing of such Report, each of the Fund, the Manager and the Subadviser shall furnish Jones with a
certificate of its respective Secretary, in form and substance reasonably satisfactory to Jones. The requirement to provide a certificate under this Section 7(n) shall be waived if at the time of the required delivery of
such certificate pursuant to this Agreement there is no Placement Notice outstanding or the Fund has suspended the sale of, or otherwise does not intend to sell, Placement Shares. Notwithstanding the foregoing, if the Fund subsequently decides to
issue a Placement Notice or otherwise resume the sale of Placement Shares prior to the next occurring Representation Date, the Fund shall provide Jones with such certificate at or prior to the issuance of such Placement Notice or the resumption of
the sale of Placement Shares.
(o) Each Placement Notice issued by the Fund to Jones shall be deemed to be an
affirmation that the representations and warranties made by it in this Agreement are true and correct in all material respects at the time such Placement Notice is issued, and that the Fund has complied in all material respects with all of the
agreements to be performed by it hereunder at or prior to such time.
(p) The Fund (including its agents and
representatives, other than Jones in its capacity as such) will not make, use, prepare, authorize, approve or refer to any written communication (as defined in Rule 405 under the Securities Act), required to be filed with the Commission, that
constitutes an offer to sell or solicitation of an offer to buy Placement Shares hereunder, except by means of the Registration Statement, the Prospectus or, upon Jones’ prior written consent, such consent not to be unreasonably withheld or
delayed, any Additional Disclosure Item.
(q) The Fund will comply with all requirements imposed upon it by the
Securities Act, the Exchange Act and the Investment Company Act as from time to time in force, so far as necessary to permit the continuance of sales of, or dealings in, the Placement Shares as contemplated by the provisions hereof and the
Prospectus.
(r) The Fund will not, without giving Jones at least three Business Days
prior written notice of a proposed sale, directly or indirectly, offer to sell, sell, contract to sell, grant any option to sell or otherwise dispose of any shares of the Fund’s common stock (other than the Placement Shares offered pursuant to
the provisions of this Agreement) or securities convertible into or exchangeable for shares of the Fund’s common stock, warrants or any rights to purchase or acquire, shares of the Fund’s common stock during the period beginning on the
fifth (5th) Trading Day immediately prior to the date on which any Placement Notice is delivered to Jones hereunder and ending on the fifth
(5th) Trading Day immediately following the final Settlement Date with respect to Placement Shares sold pursuant to such Placement Notice; without the prior written consent of Jones, the Fund will
not directly or indirectly engage in any other “at-the-market” or continuous equity transaction offer to sell, sell, contract to sell, grant any option to sell
or otherwise dispose of any shares of the Fund’s common stock (other than the Placement Shares offered pursuant to the provisions of this Agreement) or securities convertible into or exchangeable for shares of the Fund’s common stock,
warrants or any rights to purchase or acquire, shares of the Fund’s common stock prior to the tenth (10th) Trading Day immediately following the final Settlement Date with respect to
Placement Shares sold pursuant to such Placement Notice; provided, however, that such restrictions will not be required in connection with the Fund’s issuance or sale of shares of the Fund’s common stock pursuant to
(i) the Dividend Reinvestment Plan, and (ii) conversion of securities or the exercise of warrants, options or other rights in effect or outstanding as of the date of this Agreement.
(s) The Fund will furnish to Jones and its counsel (at the expense of the Fund) copies of the Registration Statement,
the Prospectus, any Additional Disclosure Item and all amendments and supplements thereto relating to the registration and issuance of the Placement Shares pursuant to this Agreement that are filed with the Commission during the period in which a
prospectus relating to the Placement Shares is required to be delivered under the Securities Act (whether physically or through compliance with Rule 153, Rule 172 or otherwise), in each case as soon as reasonably practicable and in such quantities
as Jones may from time to time reasonably request.
(t) Each of the Fund, the Manager and the Subadviser
acknowledges and agrees that Jones has informed the Fund that Jones may, to the extent permitted under the Securities Act, the Exchange Act and the Investment Company Act, purchase and sell Placement Shares for its own account at the same time as
Placement Shares are being sold by the Fund pursuant to this Agreement, provided that (i) the Fund shall not be deemed to have authorized or consented to any such purchases or sales by Jones and (ii) no such purchases or sales shall take
place while a Placement Notice is in effect (except to the extent Jones may engage in sales of Placement Shares (A) purchased or deemed purchased from the Fund as a “riskless principal” or in a similar capacity or (B) with
respect to errors that cause Jones to take an unplanned principal positions).
(u) The Fund will not, directly or
indirectly, (i) take any action designed to cause or result in, or that constitutes or might reasonably be expected to constitute, the stabilization or manipulation of the price of any security of the Fund to facilitate the sale or resale of
the Placement Shares or (ii) sell, bid for, or purchase the Placement Shares, or pay anyone any compensation for soliciting purchases of the Placement Shares other than Jones; provided, however, the Fund may issue
and sell shares of the Fund’s common stock pursuant to the Dividend Reinvestment Plan.
(v) The Fund, the Manager and the Subadviser will furnish to Jones for a
period of two years from the date of this Agreement such information as reasonably requested by Jones regarding the Fund, the Manager or the Subadviser.
8. Conditions to Jones’s Obligations. The obligations of Jones hereunder with respect to a
Placement will be subject to the continuing accuracy and completeness of the representations and warranties made by the Fund, the Manager and the Subadviser herein, to the due performance by the Fund, the Manager and the Subadviser of their
respective obligations hereunder, to the completion by Jones of a due diligence review satisfactory to Jones in its reasonable judgment, and to the continuing satisfaction (or waiver by Jones in its sole discretion) of the following additional
conditions:
(a) The Registration Statement shall have become effective and shall be available for the sale of
(i) all Placement Shares issued pursuant to all prior Placements and not yet sold by Jones and (ii) all Placement Shares contemplated to be issued by the Placement Notice relating to such Placement.
(b) None of the following events shall have occurred and be continuing: (i) receipt by the Fund of any request for
additional information from the Commission or any other federal or state governmental authority during the period of effectiveness of the Registration Statement, the response to which would require any amendments or supplements to the Registration
Statement, the Prospectus or any Additional Disclosure Item relating to or affecting the Placement Shares; (ii) the issuance by the Commission or any other federal or state governmental authority of any stop order suspending the effectiveness
of the Registration Statement or the initiation of any proceedings for that purpose, including any notice objecting to the use of the Registration Statement or order pursuant to Section 8(e) of the Investment Company Act
having been issued and proceedings therefor initiated, or to the knowledge of the Fund, threatened by the Commission; (iii) receipt by the Fund of any notification with respect to the suspension of the qualification or exemption from
qualification of any of the Placement Shares for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; (iv) the occurrence of any event that makes any statement made in the Registration Statement, the
Prospectus or any Additional Disclosure Item untrue in any material respect or that requires the making of any changes in the Registration Statement, Prospectus or such Additional Disclosure Item so that, in the case of the Registration Statement,
it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading and, that in the case of the Prospectus or any Additional
Disclosure Item, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made,
not misleading; and (v) the Fund’s reasonable determination that a post-effective amendment to the Registration Statement would be appropriate.
(c) Jones shall not have advised the Fund that the Registration Statement,
Prospectus or any Additional Disclosure Item, or any amendment or supplement thereto, contains an untrue statement of a material fact regarding Jones that in Jones’ opinion is material, or omits to state a fact regarding Jones that in
Jones’ opinion is material and is required to be stated therein or is necessary to make the statements therein, in light of the circumstances under which it was made, not misleading.
(d) Except as contemplated or disclosed in the Prospectus, there shall not have been any material change, on a
consolidated basis, in the authorized capital stock of the Fund or any Fund Material Adverse Effect, Manager Material Adverse Effect or Subadviser Material Adverse Effect, or any development that may reasonably be expected to cause a Fund Material
Adverse Effect, Manager Material Adverse Effect or Subadviser Material Adverse Effect or a downgrading in or withdrawal of the rating assigned to any of the Fund’s securities by any rating organization or a public announcement by any rating
organization that it has under surveillance or review its rating of any of the Fund’s securities, the effect of which, in the case of any such action by a rating organization described above, in the sole judgment of Jones (without relieving the
Fund of any obligation or liability it may otherwise have), is so material as to make it impracticable or inadvisable to proceed with the offering of the Placement Shares on the terms and in the manner contemplated in the Prospectus.
(e) Jones shall have received the opinions of Fund Counsel and Maryland Counsel required to be delivered pursuant
Section 7(k) on or before the date on which such delivery of such opinion is required pursuant to Section 7(k).
(f) Jones shall have received the opinions of Manager Counsel and Subadviser Counsel required to be delivered pursuant
Section 7(l) on or before the date on which such delivery of such opinions are required pursuant to Section 7(l).
(g) Jones shall have received the Comfort Letter, and to the extent applicable, the Treasurer’s Certificate,
required to be delivered pursuant Section 7(m) on or before the date on which such delivery of such Comfort Letter or Treasurer’s Certificate is required pursuant to Section 7(m).
(h) Jones shall have received the certificates required to be delivered pursuant to
Section 7(j) and Section 7(n) on or before the date on which delivery of such certificate is required pursuant to Section 7(j) and Section 7(n),
respectively.
(i) Trading in the shares of the Fund’s common stock shall not have been suspended on the
Exchange.
(j) On each date on which the Fund is required to deliver a certificate pursuant to
Section 7(j), the Fund shall have furnished to Jones such appropriate further information, certificates and documents as Jones may reasonably request. All such opinions, certificates, letters and other documents will be in
compliance with the provisions hereof. The Fund will furnish Jones with such conformed copies of such opinions, certificates, letters and other documents as Jones shall reasonably request.
(k) All filings with the Commission required by Rule 424 or Rule 497, as
applicable, under the Securities Act to have been filed prior to the giving of any Placement Notice hereunder shall have been made within the applicable time period prescribed for such filing by Rule 424 or Rule 497, as applicable.
(l) The Placement Shares shall have been approved for listing on the Exchange, subject only to notice of issuance.
(m) There shall not have occurred any event that would permit Jones to terminate this Agreement pursuant to
Section 11(a).
(n) Prior to the date hereof, FINRA shall have confirmed that it has no
objection with respect to the fairness and reasonableness of the placement terms and arrangements set forth herein.
9. Indemnification and Contribution.
(a) Indemnification by the Fund and the Manager. The Fund and the Manager, jointly and severally, agree to
indemnify and hold harmless Jones, its directors, members, officers and each person, if any, who controls Jones within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act as follows:
(1) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out
of any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment thereto) including any information deemed to be a part thereof pursuant to Rule 430B or 430C or Rule 424 under the
Securities Act, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading, or arising out of any untrue statement or alleged untrue statement of a
material fact included in any Additional Disclosure Item, any Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading;
(2) against any and all loss,
liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim
whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 9(e) below) any such settlement is effected with the written consent of the
Fund and the Manager; and
(3) against any and all expense whatsoever, as incurred (including the
fees and disbursements of counsel chosen by Jones), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim
whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (1) or (2) above,
provided, however, that this indemnity agreement shall not apply to
any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with written information furnished to the Fund or the Manager
by Jones expressly for use in the Registration Statement (or any amendment thereto), any Additional Disclosure Item, or in any Prospectus (or any amendment or supplement thereto).
(b) Indemnification by Jones. Jones agrees to indemnify and hold harmless each of the Fund and the Manager, each
of their directors, trustees, members, each of their officers who signed the Registration Statement, and each person, if any, who controls the Fund or the Manager within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section 9, as incurred, but only with respect to any untrue statements
or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendment thereto), any Additional Disclosure Item, or any Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity
with written information furnished to the Fund or the Manager by Jones expressly for use in the Registration Statement (or any amendment thereto), any Additional Disclosure Item, or any Prospectus (or any amendment or supplement thereto). The Fund
and the Manager acknowledge that Jones has not furnished any information to the Fund for inclusion in the Prospectus.
(c) Actions against Parties; Notification. Each indemnified party shall give notice as promptly as reasonably
practicable to each indemnifying party of any action commenced against it in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from any liability hereunder to
the extent it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. Counsel to the indemnified parties shall be selected as
follows: counsel to Jones, its directors, members, officers, and each person, if any, who controls Jones within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act shall be selected by Jones; counsel to the
Fund, its directors, trustees, members, each of its officers who signed the Registration Statement and each person, if any, who controls the Fund within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act
shall be selected by the Fund; and counsel to the Manager and each person, if any, who controls the Manager within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act shall be selected by the Manager. An
indemnifying party may participate at its own expense in the defense of any such action; provided, however, that counsel to the indemnifying party shall not (except with the consent of the indemnified party) also be counsel to the
indemnified party. In no event shall the indemnifying parties be liable for the fees and expenses of more than one counsel (in addition to any local counsel) separate from their own counsel for Jones, its directors, members, officers, and each
person, if any, who controls Jones within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, the fees and expenses of more than one counsel (in
addition to any local counsel) separate from their own counsel for the Fund, each of their directors, trustees, members, each of its officers who signed the Registration Statement and each
person, if any, who controls the Fund within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, the fees and expenses of more than one counsel (in addition to any local counsel) separate from their own
counsel for the Manager, and the fees and expenses of more than one counsel, in each case in connection with any one action or separate but similar or related actions in the same jurisdiction arising out of the same general allegations or
circumstances. No indemnifying party shall, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 9 hereof (whether or not the indemnified parties are
actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and
(ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party.
(d) Settlement Without Consent if Failure to Reimburse. If at any time an indemnified party shall have requested
an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 9(a)(2) effected
without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement
at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement.
(e) Other Agreements with Respect to Indemnification and Contribution. The provisions of this
Section 9 hereof shall not affect any agreements among the Fund and the Manager with respect to indemnification of each other or contribution between themselves.
(f) Contribution.
(1) If the indemnification provided for in this Section 9 hereof is for any
reason unavailable to or insufficient to hold harmless an indemnified party in respect of any losses, liabilities, claims, damages or expenses referred to therein, then each indemnifying party shall contribute to the aggregate amount of such losses,
liabilities, claims, damages and expenses incurred by such indemnified party, as incurred, (i) in such proportion as is appropriate to reflect the relative benefits received by the Fund and the Manager on the one hand and Jones on the other
hand from the offering of the Placement Shares pursuant to this Agreement or (ii) if the allocation provided by clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) above but also the relative fault of the Fund and the Manager on the one hand and of Jones on the other hand in connection with the statements or omissions which resulted in such losses, liabilities, claims, damages or
expenses, as well as any other relevant equitable considerations.
(2) The relative benefits received by the Fund and the
Manager on the one hand and Jones on the other hand in connection with the offering of the Placement Shares pursuant to this Agreement shall be deemed to be in the same respective proportions as the Net Proceeds from the offering of the Placement
Shares pursuant to this Agreement (before deducting expenses) received by the Fund and the Manager and the total discounts and commissions received by Jones as calculated in accordance with the terms set forth in Schedule 2, bear to the
aggregate gross proceeds from the sale of Placement Shares pursuant to this Agreement.
(3) The
relative fault of the Fund and the Manager on the one hand and Jones on the other hand shall be determined by reference to, among other things, whether any such untrue or alleged untrue statement of a material fact or omission or alleged omission to
state a material fact relates to information supplied by the Fund, by the Manager, or by Jones and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.
(4) The Fund, the Manager, and Jones agree that it would not be just and equitable if contribution
pursuant to this Section 9(f) were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to above in this
Section 9(f). The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 9(f) shall be deemed to include any
legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim
whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission.
(5) Notwithstanding the provisions of this Section 9(f), Jones shall not be
required to contribute any amount in excess of the amount by which the total price of the Placement Shares actually distributed by Jones exceeds the amount of any damages that Jones has otherwise been required to pay by reason of any such untrue or
alleged untrue statement or omission or alleged omission.
(6) No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.
(7) For purposes of this Section 9(f), each person, if any, who controls Jones
within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act shall have the same rights to contributions as Jones, and each person who controls the Fund or the Manager within the meaning of Section 15 of
the
Securities Act or Section 20 of the Exchange Act, each officer of the Fund and the Manager and each trustee, director or member of the Fund and the Manager shall have the same rights to
contribution as the Fund and the Manager.
(g) The indemnity and contribution agreements contained in this
Section 9 and the representation and warranties of the Fund and the Manager set forth in this Agreement shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of
Jones, its partners, officers or employees, or any person controlling Jones, within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and or by or on behalf of the Fund and/or the Manager, its directors and
officers or any person who controls the Fund, and/or the Manager within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, (ii) delivery and acceptance of the Placement Shares and payment therefor, or
(iii) any termination of this Agreement. A successor to Jones or to the Fund or the Manager, its respective directors or officers, or any person controlling the Fund, or the Manager, shall be entitled to the benefits of the indemnity,
contribution and reimbursement agreements contained in this Section 9.
10. Representations and Agreements to Survive Delivery. All representations and warranties of the Fund and the
Manager herein or in certificates delivered pursuant hereto shall survive, as of their respective dates, regardless of (i) any investigation made by or on behalf of Jones, any controlling persons, or the Fund and/or the Manager (or any of their
respective officers, directors or controlling persons), (ii) delivery and acceptance of the Placement Shares and payment therefor or (iii) any termination of this Agreement.
11. Termination.
(a) Jones shall have the right by giving notice as hereinafter specified at any time to terminate this Agreement if
(i) any Fund Material Adverse Effect, Manager Material Adverse Effect or Subadviser Material Adverse Effect has occurred which, in the reasonable judgment of Jones, may materially impair the investment quality of the Placement Shares,
(ii) the Fund, the Manager or the Subadviser shall have failed, refused or been unable to perform any agreement on its part to be performed hereunder; provided, however, in the case of any failure of the Fund, the Manager or the
Subadviser to deliver (or cause another person to deliver) any certification, opinion, or letter required under Sections 7(j), 7(k), 7(l) or 7(m) Jones’s right to terminate shall not arise unless such failure to
deliver (or cause to be delivered) continues for more than thirty (30) days from the date of such Representation Date pursuant to which such delivery was required; provided, further, that, Jones shall have the right to
suspend its obligations hereunder, regardless of whether a Placement Notice is pending, beginning on the sixth (6th) day after the date of any Representation Date if any certification, opinion, or
letter referenced in the foregoing proviso has not yet been (or caused to be) delivered; (iii) any other condition of Jones’s obligations hereunder is not fulfilled, or (iv) any suspension or limitation of trading in the Placement
Shares or in securities generally on the Exchange shall have occurred. Any such termination shall be without liability of any party to any other party except that the provisions of Section 7(e),
Section 9, Section 10, Section 15, Section 17 and Section 19 hereof shall remain in full force and effect
notwithstanding such termination. If Jones elects to terminate this Agreement as provided in this Section 11, Jones shall provide the required notice as specified herein.
(b) The Fund shall have the right, by giving notice as hereinafter
specified to terminate this Agreement in its sole discretion at any time. Any such termination shall be without liability of any party to any other party except that the provisions of Section 7(e),
Section 9, Section 10, Section 15, Section 17 and Section 19 hereof shall remain in full force and effect
notwithstanding such termination.
(c) Jones shall have the right, by giving notice as hereinafter specified to
terminate this Agreement in its sole discretion at any time. Any such termination shall be without liability of any party to any other party except that the provisions of Section 7(e),
Section 9, Section 10, Section 15, Section 17 and Section 19 hereof shall remain in full force and effect
notwithstanding such termination.
(d) This Agreement shall remain in full force and effect unless terminated
pursuant to Sections 11(a), (b) or (c) above or otherwise by mutual agreement of the parties; provided, however, that any such termination by mutual agreement shall in all cases be deemed to provide that
Section 7(e), Section 9, Section 10, Section 15, Section 17 and Section 19 shall remain in
full force and effect.
(e) Except as otherwise provided in Sections 11(b) and 11(c), any termination
of this Agreement shall be effective on the date specified in such notice of termination; provided, however, that such termination shall not be effective until the close of business on the date of receipt of such notice by Jones or the
Fund or the Manager, as the case may be. If such termination shall occur prior to the Settlement Date for any sale of Placement Shares, such Placement Shares shall settle in accordance with the provisions of this Agreement.
12. Notices. All notices or other communications required or permitted to be given by any party to any other
party pursuant to the terms of this Agreement shall be in writing and if sent to Jones, shall be delivered to Jones at JonesTrading Institutional Services LLC, 900 Island Park Drive, Suite 200, Charleston, South Carolina 29492, Attention: Burke
Cook, e-mail (Burke@jonestrading.com), and Troutman Pepper Hamilton Sanders LLP, 1001 Haxall Point, Richmond, Virginia 23219, Attention: Michael T. Damgard, fax no. (804)
698-5185, e-mail (teddy.damgard@troutman.com); or if sent to the Fund, the Manager or the Subadviser, shall be delivered to the Secretary of the Fund at 620 Eighth
Avenue, 47th Floor, New York, New York 10018 Attention: George Hoyt, e-mail (george.hoyt@franklintempleton.com), with a copy to Simpson Thacher &
Bartlett LLP, 900 G Street NW, Washington, DC 20001, Attention: David Blass and Ryan Brizek, fax no: (202) 636-5502, e-mail (david.blass@stblaw.com;
ryan.brizek@stblaw.com ). Each party to this Agreement may change such address for notices by sending to the parties to this Agreement written notice of a new address for such purpose. Each such notice or other communication shall be deemed given
(i) when delivered personally or by verifiable facsimile transmission (with an original to follow) on or before 4:30 p.m., New York City time, on a Business Day or, if such day is not a Business Day, on the next succeeding Business Day,
(ii) on the next Business Day after timely delivery to a nationally-recognized overnight courier
and (iii) on the Business Day actually received if deposited in the U.S. mail (certified or registered mail, return receipt requested, postage prepaid). For purposes of this
Agreement, “Business Day” shall mean any day on which the Exchange and commercial banks in the City of New York are open for business.
13. Successors. This Agreement shall inure to the benefit of and be binding upon Jones, the Fund, the Manager and
the Subadviser and their respective successors. Nothing expressed or mentioned in this Agreement is intended or shall be construed to give any person, firm or corporation, other than Jones, the Fund, the Manager and the Subadviser and their
respective successors and the controlling persons and directors, officers, members and trustees referred to in Section 9 and their heirs and legal representatives, any legal or equitable right, remedy or claim under or in
respect of this Agreement or any provision herein contained. This Agreement and all conditions and provisions hereof are intended to be for the sole and exclusive benefit of Jones, the Fund, the Manager and the Subadviser and their respective
successors, and said controlling persons and officers and directors and their heirs and legal representatives, and for the benefit of no other person, firm or corporation. No purchaser of Placement Shares from Jones shall be deemed to be a successor
by reason merely of such purchase.
14. Partial Unenforceability. The invalidity or unenforceability of any
Section, paragraph or provision of this Agreement shall not affect the validity or enforceability of any other Section, paragraph or provision hereof. If any Section, paragraph or provision of this Agreement is for any reason determined to be
invalid or unenforceable, there shall be deemed to be made such minor changes (and only such minor changes) as are necessary to make it valid and enforceable.
15. Governing Law Provisions.
(a) Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the
state of New York applicable to agreements made and to be performed in such state.
(b) Consent to
Jurisdiction. Any legal suit, action or proceeding arising out of or based upon this Agreement or the transactions contemplated hereby may be instituted in the federal or state courts of the United States of America located in the Southern
District of New York and borough of Manhattan (collectively, the “Specified Courts”), and each party irrevocably submits to the exclusive jurisdiction (except for proceedings instituted in regard to the enforcement of a
judgment of any such court, as to which such jurisdiction is non-exclusive) of such courts in any such suit, action or proceeding. Service of any process, summons, notice or document by mail to such
party’s address set forth above shall be effective service of process for any suit, action or other proceeding brought in any such court. The parties irrevocably and unconditionally waive any objection to the laying of venue of any suit, action
or other proceeding in the Specified Courts and irrevocably and unconditionally waive and agree not to plead or claim in any such court that any such suit, action or other proceeding brought in any such court has been brought in an inconvenient
forum.
16. General Provisions. This Agreement constitutes the entire
agreement of the parties to this Agreement and supersedes all prior written or oral and all contemporaneous oral agreements, understandings and negotiations with respect to the subject matter hereof, including without limitation, the Original
Agreement. This Agreement may be executed in two or more counterparts, each one of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement may not be amended or modified
unless in writing by all of the parties hereto, and no condition herein (express or implied) may be waived unless waived in writing by each party whom the condition is meant to benefit. The Section headings, titled and captions herein are for the
convenience of the parties only and shall not affect the construction or interpretation of this Agreement.
17. Waiver of Jury Trial. The Fund, the Manager, the Subadviser and Jones each hereby irrevocably waives any
right it may have to a trial by jury in respect of any claim based upon or arising out of this Agreement or any transaction contemplated hereby.
18. Adjustments for Stock Splits. The parties acknowledge and agree that all share related numbers contained in
this Agreement shall be adjusted to take into account any stock split, stock dividend or similar event effected with respect to shares of the Fund’s common stock.
19. Absence of Fiduciary Relationship. The Fund, the Manager and the Subadviser acknowledge that in connection
with the offering of the Placement Shares: (a) Jones has acted at arm’s length and owes no fiduciary duties to, the Fund, the Manager and the Subadviser or any other person; (b) Jones owes the Fund, the Manager and the Subadviser only
those duties and obligations set forth in this Agreement and prior or contemporaneous written agreements (to the extent not superseded by this Agreement), if any, and (iii) Jones may have interests that differ from those of the Fund, the
Manager and the Subadviser. The Fund, the Manager and the Subadviser waive to the full extent permitted by applicable law any claims any of them may have against Jones arising from an alleged breach of fiduciary duty in connection with the offering
of the Placement Shares as contemplated by this Agreement.
[Remainder of Page Intentionally Blank]
If the foregoing correctly sets forth the understanding between the Fund, the
Manager, the Subadviser and Jones, please so indicate in the space provided below for that purpose, whereupon this letter shall constitute a binding agreement between the Fund, the Manager, the Subadviser and Jones.
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| Very truly yours, |
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| WESTERN ASSET MORTGAGE OPPORTUNITY FUND INC. |
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| FRANKLIN TEMPLETON FUND ADVISER, LLC |
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| WESTERN ASSET MANAGEMENT COMPANY, LLC |
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| ACCEPTED as of the date
first-above written: |
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| JONESTRADING INSTITUTIONAL SERVICES LLC |
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October 10, 2024
Western Asset Mortgage
Opportunity Fund Inc.
620 Eighth Avenue, 47th Floor
New York, New York 10018
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Re: |
Registration Statement on Form N-2: |
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1933 Act File No.: 333-279051 |
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1940 Act File No.: 811-22369
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Ladies and Gentlemen:
We have served as Maryland counsel to Western Asset Mortgage Opportunity Fund Inc., a Maryland corporation registered under the Investment
Company Act of 1940, as amended (the “1940 Act”), as a closed-end management investment company (the “Company”), in connection with certain matters of Maryland law arising out of the
issuance of such number of shares (the “Shares”) of common stock, $0.001 par value per share (the “Common Stock”), of the Company having an aggregate sales price of up to $75,000,000, covered by the above-referenced Registration
Statement, and all amendments thereto (the “Registration Statement”), filed by the Company with the United States Securities and Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended (the “1933
Act”), and the 1940 Act. The Shares are to be issued from time to time in public offerings at market or negotiated prices pursuant to a Prospectus Supplement, dated October 10, 2024 (the “Prospectus Supplement”).
In connection with our representation of the Company, and as a basis for the opinion hereinafter set forth, we have examined originals, or
copies certified or otherwise identified to our satisfaction, of the following documents (collectively, the “Documents”):
1. The Registration Statement and the related form of prospectus included therein;
2. The Prospectus Supplement;
3. The charter of the Company (the “Charter”), certified by the State Department of Assessments and Taxation of
Maryland (the “SDAT”);
4. The Third Amended and Restated Bylaws of the Company, certified as of the date
hereof by an officer of the Company;
5. A certificate of the SDAT as to the good standing of the Company, dated as
of a recent date;
6. Resolutions (the “Resolutions”) adopted by the Board of Directors of the Company
relating to the registration and issuance of the Shares, certified as of the date hereof by an officer of the Company;
Western Asset Mortgage Opportunity Fund Inc.
October 10, 2024
Page
2
7. A certificate executed by an officer of the Company, dated as of the
date hereof; and
8. Such other documents and matters as we have deemed necessary or appropriate to express the
opinion set forth below, subject to the assumptions, limitations and qualifications stated herein.
In expressing the opinion set forth
below, we have assumed the following:
1. Each individual executing any of the Documents, whether on behalf of such
individual or another person, is legally competent to do so.
2. Each individual executing any of the Documents on
behalf of a party (other than the Company) is duly authorized to do so.
3. Each of the parties (other than the
Company) executing any of the Documents has duly and validly executed and delivered each of the Documents to which such party is a signatory, and such party’s obligations set forth therein are legal, valid and binding and are enforceable in
accordance with all stated terms.
4. All Documents submitted to us as originals are authentic. The form and content
of all Documents submitted to us as unexecuted drafts do not differ in any respect relevant to this opinion from the form and content of such Documents as executed and delivered. All Documents submitted to us as certified or photostatic copies
conform to the original documents. All signatures on all such Documents are genuine. All public records reviewed or relied upon by us or on our behalf are true and complete. All representations, warranties, statements and information contained in
the Documents are true and complete. There has been no oral or written modification of or amendment to any of the Documents, and there has been no waiver of any provision of any of the Documents, by action or omission of the parties or otherwise.
5. Upon any issuance of the Shares, the total number of shares of Common Stock issued and outstanding will not
exceed the total number of shares of Common Stock that the Company is then authorized to issue under the Charter.
Western Asset Mortgage Opportunity Fund Inc.
October 10, 2024
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Based upon the foregoing, and subject to the assumptions, limitations and qualifications
stated herein, it is our opinion that:
1. The Company is a corporation duly incorporated and existing under and by
virtue of the laws of the State of Maryland and is in good standing with the SDAT.
2. The issuance of the Shares has
been duly authorized and, when issued and delivered by the Company pursuant to the Resolutions and the Registration Statement against payment of the consideration set forth therein, the Shares will be validly issued, fully paid and nonassessable.
The foregoing opinion is limited to the laws of the State of Maryland and we do not express any opinion herein concerning any other law.
We express no opinion as to the applicability or effect of the 1940 Act or other federal securities laws, or state securities laws, including the securities laws of the State of Maryland, or as to federal or state laws regarding fraudulent
transfers.
The opinion expressed herein is limited to the matters specifically set forth herein and no other opinion shall be inferred
beyond the matters expressly stated. We assume no obligation to supplement this opinion if any applicable law changes after the date hereof or if we become aware of any fact that might change the opinion expressed herein after the date hereof.
This opinion is being furnished to you for submission to the Commission as an exhibit to the Registration Statement. We hereby consent to the
filing of this opinion as an exhibit to the Registration Statement and to the use of the name of our firm therein. In giving this consent, we do not admit that we are within the category of persons whose consent is required by Section 7 of the
1933 Act.
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| Very truly yours,
/s/ Venable LLP |
Western Asset Mortgage O... (NYSE:DMO)
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