Document:

Exhibit 10.1

 

AUDAX
CREDIT BDC INC.

 

Subscription Documents

 

 

Administrator:

 

Audax Management Company, LLC

101 Huntington Avenue

Boston, Massachusetts 02199

 

     

     

    

 

DIRECTIONS FOR THE COMPLETION

OF THE SUBSCRIPTION DOCUMENTS

 

Prospective investors
must complete the Subscription Agreement, the Investor Questionnaire (the “Investor Questionnaire”) and any necessary
attachments (the Subscription Agreement, the Investor Questionnaire and all such attachments collectively, the “Subscription
Documents”) contained in this package in the manner described below. Capitalized terms not defined herein are used as defined
in the Confidential Private Placement Memorandum of Audax Credit BDC Inc., a Delaware corporation (as amended or supplemented from
time to time) (the “Memorandum”). For purposes of these Subscription Documents, the “Investor” is the person
or entity for whose account the units will be purchased and that can satisfy the representations and warranties set forth in the
Subscription Documents. Another person or entity with investment authority may execute the Subscription Documents on behalf of
the Investor, but should indicate the capacity in which it is doing so and the name of the Investor.

 

1.             Subscription Agreement:

 

(a)           Each Investor should fill in the amount of the Capital Commitment (as defined in the Subscription Agreement), fill in the date,
print the name of the Investor and sign (and print name, capacity and title of signatory, if applicable) on the signature page
of the Subscription Agreement.

 

(b)           Each Investor should complete the appropriate acknowledgment form (making any changes to reflect the Investor’s circumstances).

 

2.             Investor Questionnaire:

 

(a)           In Section A, each Investor should fill in its name, type of entity, address, tax identification or social security number, contact
person(s), telephone and facsimile numbers, email address, and the other requested information.

 

(b)           In connection with any offering under Regulation D of the Securities Act of 1933, as amended, each Investor should check the box
or boxes in Section B which are next to the category or categories under which each of the equity owners of the Investor qualifies
as an “accredited investor.”

 

(c)           Each Investor should check the box or boxes in Section C which are next to the category or categories under which the Investor
qualifies as a “qualified purchaser.”

 

(d)           Each Investor that is an entity should provide the information and respond to the questions in Section D.

 

(e)           Each Investor should respond to the questions in Sections E, F and G.

 

(f)            Print the name of the Investor and sign (and print name, capacity and title of signatory, if applicable) on the final page of the
Investor Questionnaire.

 

3.             Tax Forms:

 

Each U.S. Investor is required
to fill in and sign and date the attached Form W-9, and each non-U.S. investor is required to fill in and date the relevant Form(s)
W-8 (W-8BEN, W-8BEN-E, W-8IMY, W-8ECI or W-8EXP), as applicable, in accordance with the instructions to such Form. In the event
that any applicable reduction or exemption from U.S. federal withholding tax is claimed, each Investor is required to provide all
applicable attachments or addendums as required to claim such exemption or reduction.

 

     

     

    

 

4.             Evidence of Authorization:

 

Each Investor
must provide satisfactory evidence of authorization.

 

For Corporations:

 

Generally, Investors which are
corporations must submit certified corporate resolutions authorizing the subscription and identifying the corporate officer empowered
to sign the Subscription Documents.

 

For Partnerships:

 

Partnerships must submit a certified
copy of the partnership certificate (in the case of limited partnerships) or partnership agreement identifying the general partners.

 

For Limited Liability Companies:

 

Limited liability companies must
submit a certified copy of the limited liability operating agreement or certificate of formation identifying the manager or managing
member, as applicable, empowered to sign the Subscription Documents.

 

For Trusts:

 

Trusts must submit a copy of
the trust agreement.

 

For Employee Benefit Plans:

 

Employee benefit plans must
submit a certificate of an appropriate officer certifying that the subscription has been authorized and identifying the individual
empowered to sign the Subscription Documents.

 

Each Investor may be required
to submit further information for know your customer and anti-money laundering
purposes, including, but not limited to, the information set forth in Exhibit A of this Subscription Agreement.

 

5.             Delivery of Subscription Documents: 

 

Two (2) original completed and
executed copies of the Subscription Agreement and the Investor Questionnaire, together with the Form W-9 or W-8, (W-8BEN, W-8BEN-E,
W-8IMY, W-8ECI or W-8EXP), as applicable, the appropriate acknowledgment form and any required evidence of authorization, should
be delivered to the Company at the following address:

 

Audax Management Company, LLC

Attn: Investor Relations

101 Huntington
Avenue

Boston, MA
02199

 

     

     

    

 

With
copies via facsimile to Audax Management Company, LLC, Attention: Investor Relations at
(617) 859-1600 or via electronic mail to lprequest@audaxgroup.com,
as soon as possible.

 

Inquiries regarding
subscription procedures (including, if the Investor Questionnaire indicates that any Investor’s response to a question requires
further information) should be directed to Audax Management Company, LLC by phone at (617) 859-1500, by fax at (617) 859-1600.

 

6.             Acceptance
by the Company:

 

If the Investor’s subscription
is accepted (in whole or in part) by the Company, a fully executed set of the Subscription Documents will be returned to the Investor.
The Company may accept and countersign the Investor’s Subscription Agreement (in whole or in part) at any time.

 

7.             Wire
Instructions:

 

Please wire funds to: Audax Senior BDC Inc.

 

 

	Bank:	Wells Fargo Bank, NA
	ABA #:	121-000-248
	Account Number:	6355067033
	Account Name:	CDO Clearing
	Reference:	AUDAX CREDIT BDC INC. A/C 84260000

 

[remainder of page intentionally left blank]

 

     

     

    

 

SUBSCRIPTION AGREEMENT

 

Audax Credit BDC Inc.

101 Huntington Avenue

Boston, Massachusetts 02199

 

Ladies and Gentlemen:

 

1.             Subscription. 

 

(a)            The
undersigned (the “Investor”) subscribes for and agrees to contribute to Audax Credit BDC Inc. or any successor thereto
(the “Company”) the aggregate capital commitment in the amount set forth on the signature page hereto (“Capital
Commitment”), and such Investor shall receive shares of common stock of the Company at the time of each drawdown under the
Capital Commitment. The Investor understands that the Company has elected to qualify as a regulated investment company under
the Internal Revenue Code of 1986, as amended (the “Code”).

 

The Investor acknowledges
and agrees that this subscription (i) is irrevocable on the part of the Investor, (ii) is conditioned upon acceptance by or on
behalf of the Company and (iii) may be accepted or rejected in whole or in part by the Company in its sole discretion at any time.
The Investor agrees to be bound by all the terms and provisions of the Company’s Confidential Private Placement Memorandum,
as amended, restated and/or supplemented from time to time (the “Memorandum”), the Company’s certificate of incorporation,
substantially in the form attached hereto as Appendix A (as amended from time to time, the “Charter”), the Company’s
bylaws, substantially in the form attached hereto as Appendix B (as amended from time to time, the “Bylaws”), the Investment
Advisory Agreement by and between Audax Management Company (NY), LLC, our investment adviser (the “Adviser”), substantially
in the form attached hereto as Appendix C (as amended from time to time, the “Advisory Agreement”), the Administration
Agreement by and between the Company and Audax Management Company, LLC, our administrator (the “Administrator”), substantially
in the form attached hereto as Appendix D (as amended from time to time, the “Administration Agreement” and, together
with the Memorandum, the Charter, the Bylaws and the Advisory Agreement, collectively the “Operative Documents”), together
with this subscription agreement (the “Subscription Agreement”). Capitalized terms not defined herein are used as defined
in the Memorandum.

 

The Company has filed
a registration statement on Form 10 (the “Form 10 Registration Statement”) which registered its common stock with the
U.S. Securities and Exchange Commission (the “SEC”) under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”). The Form 10 Registration Statement is not the offering document pursuant to which the Company is conducting this offering
of securities and may not include all information regarding the Company contained in the Memorandum. Accordingly, Investors should
rely exclusively on information contained in the Memorandum in making their investment decisions.

 

(b)           Payment
in cleared funds for Shares must be received three business days prior to the Closing Date (as defined below). Subject to any legal
or regulatory restrictions before the Closing Date, the Investor’s payment (the “Payment”) shall be held by the
Company in a non-interest bearing account. If the subscription is rejected, the Payment shall be returned promptly to the Investor,
and this Subscription Agreement shall have no force or effect.

 

     

     

    

 

2.             Closings.

 

(a)            The
closing of the Offering (as defined in the Memorandum) will take place at the offices of Dechert LLP at 100 Oliver St., 40th
Floor, Boston, Massachusetts 02110, on the date the Company accepts the Subscription Agreement unless otherwise agreed to by the
parties (such date being the “Closing Date”). The Company may accept (in whole or in part) and countersign this Subscription
Agreement at any time prior to or on the Closing Date.

 

(b)           The
Investor agrees to provide any information reasonably requested by the Company to verify the accuracy of the representations contained
herein, including, without limitation, the Investor Questionnaire. Upon acceptance of this Subscription Agreement (in whole or
in part), the Company shall deliver to the Investor or its representative, a countersigned copy of this Subscription Agreement
and other documents and instruments necessary to reflect the Capital Commitment, including any documents and instruments to be
delivered pursuant to this Subscription Agreement.

 

3.             Drawdowns.

 

(a)           Subject
to Section 3(d), the Investor agrees to purchase Shares for an aggregate purchase price equal to its Capital Commitment, payable
at such times and in such amounts as required by the Company. The Company shall deliver a notice (the “Drawdown Notice”)
to the Investor at least ten calendar days prior to the Drawdown (each, a “Drawdown Date”), setting forth the amount,
in U.S. dollars, of the aggregate purchase price (the “Drawdown Purchase Price”) to be paid by the Investor to purchase
Shares on such Drawdown Date. Each purchase of Shares pursuant to a Drawdown Notice shall be made at a per Share price equal to
the then-current net asset value per Share.

 

(b)           Each
Drawdown Purchase Price shall be payable, in U.S. dollars and in immediately available funds as set forth in wire transfer instructions
included in the Drawdown Notice. In addition to the wire transfer instructions, each Drawdown Notice shall set forth (i) the Drawdown
Date, (ii) the aggregate amount of the Drawdown and (iii) the Investor’s share of the Drawdown.

 

(c)           Concurrent
with any payment of all or a portion of the Drawdown Purchase Price, the Company shall issue to the Investor a number of Shares
equal to the amount of the Drawdown Purchase Price funded by the Investor on the applicable Drawdown Date divided by the most recently
determined net asset value per Share as of such Drawdown Date.

 

(d)           Upon
termination of the period (the “Commitment Period”) beginning on the Closing Date and ending on the completion of an
initial public offering of the Shares or the listing of the Shares on a national securities exchange, the Investor shall be released
from any further obligation to fund any portion of its Capital Commitment for which it has not received a Drawdown Notice prior
to the termination of the Commitment Period.

 

(e)           The
Investor acknowledges and agrees that the Company intends to allocate Drawdowns on each Drawdown Date to all Investors with an
undrawn Capital Commitment pro rata in proportion to the then undrawn Capital Commitments of all Investors.

 

(f)            The
Investor acknowledges that it may have capital commitments pursuant to other agreements with the Company and that the Capital Commitment
pursuant to this Subscription Agreement shall in no way limit its obligations under such other agreements.

 

     

     

    

 

4.             Dividend
Reinvestment Program. As described more fully in the Memorandum, the Company generally intends to distribute, out of assets
legally available for distribution, substantially all of its available earnings, as determined by the Board of Directors in its
discretion. The Company intends to reinvest all cash distributions declared by the Board of Directors on behalf of Investors who
do not elect to receive their dividends in cash, crediting to each such Investor a number of Shares equal to the quotient determined
by dividing the cash value of the distribution payable to such Investor by the net asset value per Share as last determined by
the Board of Directors. The Investor may elect to receive any or all such distributions in cash by notifying the Administrator,
in writing no later than 10 days prior to the record date for the first distribution that the Investor wishes to receive distributions
in cash.

 

5.             Representations
and Warranties of the Investor. To induce the Company to accept this subscription, the Investor represents and warrants as
follows:

 

(a)           This
Subscription Agreement has been duly authorized, executed and delivered by the Investor and, upon due authorization, execution
and delivery by the Company, shall constitute the valid and legally binding agreement of the Investor enforceable in accordance
with its terms against the Investor, except as such enforceability may be limited by (i) bankruptcy, insolvency, reorganization,
fraudulent conveyance, moratorium or other laws of general application relating to or affecting the enforcement of creditors’
rights and remedies, as from time to time in effect, and (ii) application of equitable principles (regardless of whether such enforceability
is considered in a proceeding in equity or at law).

 

(b)           (i)            If
the Investor is not a natural person, (A) that all of the equity owners of the Investor are “accredited investors”
within the meaning of Regulation D under the Securities Act, (B)
the Investor has the power and authority to enter into this Subscription Agreement and each other document required to be executed
and delivered by the Investor in connection with this subscription for Shares, and to perform its obligations hereunder and thereunder
and consummate the transactions contemplated hereby and thereby and (C) the person signing this Subscription Agreement on behalf
of the Investor has been duly authorized to execute and deliver this Subscription Agreement and each other document required to
be executed and delivered by the Investor in connection with this subscription for Shares. 

 

(ii)           If
the Investor is a natural person, the Investor has all requisite legal capacity to acquire and hold the Shares and to execute,
deliver and comply with the terms of each of the documents required to be executed and delivered by the Investor in connection
with this subscription for Shares. The execution and delivery by the Investor of, and compliance by the Investor with, this Subscription
Agreement and each other document required to be executed and delivered by the Investor in connection with this subscription for
Shares does not violate, represent a breach of, or constitute a default under, any instruments governing the Investor, any law,
regulation or order, or any agreement to which the Investor is a party or by which the Investor is bound. This Subscription Agreement
has been duly executed by the Investor and constitutes a valid and legally binding agreement of the Investor, enforceable against
it in accordance with its terms.

 

(c)            The
Shares to be acquired hereunder are being acquired by the Investor for the Investor’s own account for investment purposes
only and not with a view to resale or distribution.

 

(d)            The
Investor understands that the Company has filed an election to be treated as a business development company under the Investment
Company Act of 1940, as amended (the “1940 Act”), and has filed an election to be treated as a regulated investment
company within the meaning of Section 851 of the Code, for U.S. federal income tax purposes; pursuant to those elections, the Investor
shall be required to furnish certain information to the Company as required under Treasury Regulations § 1.852-6(a) and other
regulations. If the Investor is unable or refuses to provide such information directly to the Company, the Investor understands
that it shall be required to include additional information on its income tax return as provided in Treasury Regulations §
1.852-7.

 

     

     

    

 

(e)           (i)           The
Investor understands that the offering and sale of the Shares are intended to be exempt from registration under the Securities
Act of 1933, as amended (the “Securities Act”), applicable U.S. state securities laws and the laws of any non-U.S.
jurisdictions by virtue of the private placement exemption from registration pursuant to Regulation D of the Securities Act, exemptions
under applicable U.S. state securities laws and exemptions under the laws of any non-U.S. jurisdictions.

 

(ii)           The
Investor understands that a legend will be placed on any certificate or certificates evidencing the Shares stating that they have
not been registered under the Securities Act and setting forth or referring to the restrictions on transfers and sales thereof.

 

(iii)          The
Investor understands that the offering and sale of the Shares in non-U.S. jurisdictions may be subject to additional restrictions
and limitations and represents and warrants that it is acquiring its Shares in compliance with all applicable laws, rules, regulations
and other legal requirements applicable to the Investor including, without limitation, the legal requirements of jurisdictions
in which the Investor is resident and in which such acquisition is being consummated.

 

(f)            The
Investor has been furnished and has carefully read this Subscription Agreement, each Operative Document, in each case as amended,
restated and/or supplemented through the Closing Date, and a current copy of the Proxy Voting Policies and Procedures of the Adviser.
The Investor has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and
risks of an investment in the Shares, is able to bear the risks of an investment in the Shares and understands the risks of, and
other considerations relating to, a purchase of Shares, including the matters set forth under the caption “Risk Factors”
in the Memorandum.

 

(g)           To
the satisfaction of the Investor, the Investor has been furnished any materials the Investor has requested relating to the Company,
the offering of Shares or any statement made in the Memorandum, and the Investor has been afforded the opportunity to ask questions
of representatives of the Company concerning the terms and conditions of the offering and to obtain any additional information
necessary to verify the accuracy of any representations or information set forth in the Memorandum.

 

(h)           Other
than as set forth in this Subscription Agreement, the Operative Documents and any separate agreement in writing with the Company
executed in conjunction with the Investor’s subscription for Shares, the Investor is not relying upon any other information,
representation or warranty by the Company, its Adviser or any affiliate of the foregoing or any agent of them, written or otherwise,
in determining to invest in the Company and the Investor understands that the Memorandum is not intended to convey tax or legal
advice. The Investor has consulted, to the extent deemed appropriate by the Investor, with the Investor’s own advisers as
to the financial, tax, legal, accounting, regulatory and related matters concerning an investment in Shares and on that basis understands
the financial, tax, legal, accounting, regulatory and related consequences of an investment in Shares, and believes that an investment
in the Shares is suitable and appropriate for the Investor.

 

     

     

    

 

(i)            If
the Investor is not a “United States Person,” as defined below (a “non-U.S. Person”),

 

(a)           the
Investor has heretofore notified the Company in writing of such status. For this purpose, “United States Person” means
a citizen or resident of the United States, a corporation, partnership or other entity created or organized in or under the laws
of the United States or any political subdivision thereof, an estate the income of which is subject to U.S. federal income taxation
regardless of its source, or any trust (A) the administration of which may be subject to the primary supervision of a U.S. court
and (B) the authority to control all of the substantial decisions of which is held by one or more U.S. persons.

 

(b)           The
Investor shall notify the Company immediately if the Investor becomes a United States Person.

 

(c)           The
Investor is acquiring the Shares for its own account for investment purposes only and is not subscribing on behalf of or funding
its commitment with funds obtained from a United States Person.

 

(j)            If the Investor
is, or is acting on behalf of, (i) an “employee benefit plan” (as defined in Section 3(3) of the U.S. Employee Retirement
Income Security Act of 1974, as amended (“ERISA”)) that is subject to Part 4 of Subtitle B of Title I of ERISA, (ii)
a “plan” that is subject to Section 4975 of the Code, (iii) an entity whose underlying assets include “plan assets”
of any employee benefit plan or other plan described in clause (i) or (ii) by reason of such plan’s investment in the entity
or otherwise or (iv) an employee benefit plan subject to federal, state or local law (collectively, “Similar Law”)
similar to Section 406 of ERISA or Section 4975 of the Code (each, a “Plan”), then the person executing this Subscription
Agreement on behalf of the Plan represents and agrees that:

 

(i)            such
person has completed Section D of the Investor Questionnaire, which, without limiting any other assurances in the Investor Questionnaire,
such person hereby specifically represents and agrees is correct and complete;

 

(ii)           such
person is a “fiduciary” of such Plan within the meaning of Section 3(21) of ERISA, Section 4975(e)(3) of the Code or
Similar Law, and such person is authorized and has the discretion to execute the Subscription Agreement (the “Fiduciary”);

 

(iii)           unless
otherwise indicated in writing to the Company, the Plan is not a participant-directed defined contribution plan;

 

(iv)          the
Plan’s investment in the Company has been duly authorized under, and conforms in all respects to, the documents governing
the Plan and the Fiduciary and complies with all applicable requirements of ERISA, the Code or Similar Law;

 

(v)           the
Fiduciary is: (1) responsible for the decision to invest in the Company; (2) independent of the Company, the Adviser
and their respective employees, officers, representatives and affiliates; and (3) qualified to make such investment decision;

 

(vi)          the
Adviser and the Company and their respective employees, officers, representatives and affiliates do not have investment discretion,
and are not otherwise acting in a fiduciary capacity, with respect to the investment of the Plan’s assets in the Company,
and, without limiting the generality of the foregoing, the Fiduciary has not relied on, and is not relying on, any investment advice
or recommendation of any such person with respect to the Plan’s investment in the Company;

 

(vii)         the
Plan’s acquisition, holding and disposition of interests in the Company do not and will not constitute or result in a non-exempt
prohibited transaction under Section 406 of ERISA or Section 4975 of the Code or violation of Similar Law;

 

(viii)        the
Fiduciary expressly acknowledges that the Board of Directors has the authority to require the redemption, withdrawal or other cancellation
of any Shares if the Board of Directors determines that the continued holding of such Shares, in the opinion of the Board of Directors,
could result in the Company being subject to ERISA or Section 4975 of the Code;

 

     

     

    

 

 

(ix)           the
Fiduciary has been informed about the fee structure of the Company, including, but not limited to, any performance fee or allocation,
and has concluded that such fees are reasonable and the investment in the Company otherwise constitutes a reasonable contract or
arrangement; and

 

(x)            the
Fiduciary acknowledges and agrees that neither the Adviser nor any of its employees, representatives or affiliates will be a fiduciary
with respect to the Plan as a result of the Plan’s investment in the Company, pursuant to the provisions of ERISA, the Code
or any applicable Similar Laws, or otherwise.

 

If applicable,
the Investor has identified its status as a Benefit Plan Investor (as defined below) to the Company in its completed Investor Questionnaire. 
If the Investor has identified to the Company in its completed Investor Questionnaire that it is not currently a Benefit Plan Investor,
but becomes a Benefit Plan Investor, without limiting the remedies available in the event of a breach, the Investor shall forthwith
disclose to the Adviser promptly in writing such fact and also the percentage of such Investor’s equity interests held by
Benefit Plan Investors.  For these purposes, a “Benefit Plan Investor” is (i) an “employee benefit plan”
as defined in and subject to Part 4 of Subtitle B of Title I of ERISA, (ii) a “plan” as defined in and subject to Section
4975 of the Code, and (iii) any entity whose underlying assets are deemed for purposes of ERISA or Section 4975 of the Code to
include “plan assets” by reason of such plan’s investment in the entity or otherwise. Without limiting the remedies
available in the event of a breach, the Investor agrees to notify the Adviser promptly in writing if there is any change in the
percentage of the Investor’s assets that are treated as “plan assets” for purposes of Section 3(42) of ERISA
and any regulations promulgated thereunder as set forth in the Investor Questionnaire to this Subscription Agreement.

 

(k)            If the Investor is an insurance company and is investing the assets of its general account (or the assets of a wholly owned
subsidiary of its general account) in the Company, it has identified in the Investor Questionnaire whether the assets underlying
the general account constitute “plan assets” under Section 401(c) of ERISA. Without limiting the remedies available
in the event of a breach, the Investor agrees promptly to notify the Company in writing if there is a change in the percentage
of the general account’s assets that constitute plan assets for purposes of ERISA or Section 4975 of the Code, and shall
disclose such new percentage ownership.

 

(l)             The Investor was offered the Shares through private negotiations, not through any general solicitation or general advertising.

 

(m)           Neither the Investor, nor any of its affiliates or beneficial owners, (i) appears on the list of Specially Designated Nationals
and Blocked Persons maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”),
the list of Foreign Sanctions Evaders maintained by OFAC, or any other lists of restricted parties maintained by the U.S. Government,
nor are they otherwise a party with which any entity is prohibited to deal under the laws of the United States, or (ii) is a Person
identified as a terrorist organization on any other relevant lists maintained by governmental authorities. The Investor further
represents and warrants that the monies used to fund the investment in the Shares are not derived from, invested for the benefit
of, or related in any way to, and that no monies or dividends received as a result of the investment in the Shares will be provided
to or for the benefit of, the governments of, or persons within, any country (A) under a U.S. embargo enforced by OFAC, (B) that
has been designated as a “non-cooperative country or territory” by the Financial Action Task Force on Money Laundering
or (C) that has been designated by the U.S. Secretary of the Treasury as a “primary money laundering concern.” The
Investor further represents and warrants that the Investor: (1) has conducted thorough due diligence with respect to all of its
beneficial owners, (2) has established the identities of all beneficial owners and the source of each of the beneficial owner’s
funds and (3) will retain evidence of any such identities, any such source of funds and any such due diligence. The Investor further
represents and warrants that the Investor does not know or have any reason to suspect that (x) the monies used to fund the Investor’s
investment in the Shares have been or will be derived from or related to any illegal activities, including money laundering activities,
and (y) the proceeds from the Investor’s investment in the Shares will be used to finance any illegal activities. The representations
with respect to the Investor’s policies, procedures and records in that certain letter from the Adviser to the Company’s
Custodian (a copy of which was provided to the Investor) are accurate.

 

     

     

    

 

(n)           None of the information concerning the Investor nor any statement, certification, representation or warranty made by the
Investor in this Subscription Agreement or in any document required to be provided under this Subscription Agreement (including
the Investor Questionnaire and any forms W-9 or W-8 (W-8BEN, W-8BEN-E,
W-8IMY, W-8ECI or W-8EXP)), as applicable, contains any untrue statement of a material fact or omits to state a material
fact necessary in order to make the statements contained therein or herein not misleading.

 

(o)           The execution, delivery and performance of this Subscription Agreement by the Investor do not and will not result in a breach
of any of the terms, conditions or provisions of, or constitute a default under, any indenture, mortgage, deed of trust, credit
agreement, note or other evidence of indebtedness, or any lease or other agreement, or any license, permit, franchise or certificate,
to which the Investor is a party or by which it is bound or to which any of its properties are subject, or require any authorization
or approval under or pursuant to any of the foregoing, violate the organizational documents of the Investor, or violate in any
material respect any statute, regulation, law, order, writ, injunction or decree to which the Investor is subject. The Investor
has obtained all authorizations, consents, approvals and clearances of all courts, governmental agencies and authorities and such
other persons, if any, required to permit the Investor to enter into this Subscription Agreement and to consummate the transactions
contemplated hereby.

 

6.             Additional
Limitations on Transfer of Shares. The Investor agrees that:

 

(i)            The
Investor may not transfer any of its Shares unless (A) the Company provides its prior written consent, (B) the Transfer is made
in accordance with applicable securities laws and (C) the Transfer is otherwise in compliance with the transfer restrictions set
forth in Appendix E. No Transfer shall be effectuated except by registration of the Transfer on the Company’s books. Each
transferee must agree to be bound by these restrictions and all other obligations as an Investor in the Company.

 

“Transfer”
shall mean sell, offer for sale, exchange, transfer, assign, pledge, hypothecate or otherwise dispose of.

 

(ii)           The
Investor acknowledges and understands that there are other substantial restrictions on the transferability of Shares under this
Subscription Document, the Operative Documents and under applicable law including the fact that (A) there is no established market
for the Shares and it is possible that no public market for the Shares will develop; (B) the Shares are not currently, and Investors
have no rights to require that the Shares be, registered under the Securities Act or the securities laws of the various states
or any non-U.S. jurisdiction and therefore cannot be Transferred unless subsequently registered or unless an exemption from such
registration is available; and (C) the Investor may have to hold the Shares herein subscribed for and bear the economic risk of
this investment indefinitely, and it may not be possible for the Investor to liquidate its investment in the Company.

 

     

     

    

 

7.             Disclosure
of Investor’s Information. The Investor acknowledges and agrees
that certain non-public information concerning the Investor set forth in this Agreement or otherwise disclosed by the Investor
to the Company, or other agents of the Company, such as the Investor’s name, address, social security number, assets and
income, and information regarding the Investor’s investment in the Company (collectively, the “Information”)
(i) may be disclosed to the Adviser, Administrator, attorneys, accountants and auditors in furtherance of the Company’s business
and to other service providers such as brokers who may have a need for the Information in connection with providing services to
the Company, (ii) to third party service providers or financial institutions who may be providing marketing services to the Company;
provided that such persons must agree to protect the confidentiality of the Information and use the Information only for the purposes
of providing services to the Company, and (iii) as otherwise required or permitted by applicable law. The Company, Adviser and
Administrator restrict access to the Information to its employees who need to know the Information to provide services to the Company
and maintain physical, electronic and procedural safeguards that comply with U.S. federal standards to guard the Information.

 

8.             Compliance
with Laws.

 

(a)           The
Investor shall provide to the Company at any time such information as the Company determines to be necessary or appropriate (A)
to comply with the anti-money laundering laws, rules and regulations of any applicable jurisdiction and (B) to respond to requests
for information concerning the identity of Investors from any governmental authority, self-regulatory organization or financial
institution in connection with its anti-money laundering compliance procedures, or to update such information. Failure to provide
such information upon request may result in the compulsory redemption of the Investor’s Shares.

 

(b)           To
comply with applicable U.S. anti-money laundering laws and regulations, all payments and contributions by the Investor to the Company,
and all payments and distributions to the Investor, shall only be made in the Investor’s name and to and from a bank account
of a bank based or incorporated in or formed under the laws of the United States or that is regulated in and either based or incorporated
in or formed under the laws of the United States and that is not a “foreign shell bank” within the meaning of the U.S.
Bank Secrecy Act (31 U.S.C. § 5311 et seq.), as amended, and the regulations promulgated thereunder by the U.S. Department
of the Treasury, as such regulations may be amended from time to time.

 

(c)           The
Investor understands and agrees that the Company may not accept any amounts from a prospective Investor if such prospective Investor
cannot make the representations set forth above. If an existing Investor cannot make such representations, the Company may require
the withdrawal of such Investor from the Company.

 

(d)           The
Investor acknowledges and agrees that, in order to comply with the provisions of the U.S. Foreign Account Tax Compliance Act (“FATCA”)
and avoid the imposition of U.S. federal withholding tax, the Company and Administrator may from time to time require further information
and/or documentation from the Investor and, if and to the extent required under FATCA, the Investor’s direct and indirect
beneficial owners (if any), relating to or establishing such person’s identity, residence (or jurisdiction of formation)
and income tax status, and may provide or disclose such information and documentation to the U.S.
Internal Revenue Service.  The Investor agrees that it shall provide such information and documentation concerning itself
and its beneficial owners, if any, as and when requested by the Company or the Administrator sufficient for the Company to comply
with its obligations under FATCA.  The Investor acknowledges that, if the Investor does not provide the requested information
and documentation, the Company may, at its sole option and in addition to all other remedies available at law or in equity, immediately
redeem such Investor’s Shares, reduce such Investor’s Capital Commitment, prohibit additional investments, decline
or delay any redemption requests by the Investor and/or deduct from such Investor’s account and retain amounts sufficient
to indemnify and hold harmless the Company from any and all withholding taxes, interest, penalties and other losses or liabilities
suffered by the Company on account of the Investor not providing all requested information and documentation in a timely manner. 
The Investor shall have no claim against the Company, the Administrator, the Adviser or any of their respective affiliates for
any form of damages or liability as a result of any of the aforementioned actions.

 

     

     

    

 

9.             Credit
Facilities. The Investor acknowledges and agrees that the Company
may enter into one or more revolving or other credit facilities with one more syndicates of banks or otherwise incur indebtedness.
In connection therewith, each Investor hereby agrees to cooperate with the Company and provide financial information and other
documentation reasonably and customarily required to obtain such facilities.

 

10.           Dividend
Reinvestment. Notwithstanding anything to the contrary provided
in Section 4, in the event that the Investor has not otherwise elected to receive its dividends in cash and the reinvestment of
any dividend (or any portion thereof) on behalf of the Investor would cause the Investor to hold in aggregate more than three
percent (3%) of the outstanding Shares, the Investor shall be deemed to have elected to receive such dividend (or any portion
thereof) in cash (but only to the extent necessary to avoid the occurrence of the foregoing consequence).

 

11.           Further
Advice and Assurances. All information which the Investor has provided to the Company, including the information in the Investor
Questionnaire, is true, correct and complete as of the date hereof, and the Investor agrees to notify the Company immediately
in writing if any representation, warranty or information contained in this Subscription Agreement or any of the information in
the Investor Questionnaire, becomes untrue at any time. The Investor agrees to provide such information and execute and deliver
such documents with respect to itself and its direct and indirect beneficial owners as the Company may from time to time reasonably
request to determine the eligibility of the Investor to purchase Shares in the Company, to verify the accuracy of the Investor’s
representations and warranties herein, establish the identity of the Investor and the direct and indirect participants in its
investment in Shares, to the extent applicable, to effect any transfer and admission and/or to comply with any law, rule or regulation
to which the Company may be subject, including, without limitation, compliance with anti-money laundering laws and regulations
or for any other reasonable purpose.

 

12.           Power
of Attorney. 

 

(a)            The
Investor, by its execution hereof, hereby irrevocably makes, constitutes and appoints the Company as its true and lawful agent
and attorney-in-fact, with full power of substitution and full power and authority in its name, place and stead, to make, execute,
sign, acknowledge, swear to, record and file:

 

(i)             any and all filings required to be made by the Investor under the Exchange Act with respect to any of the Company’s
securities which may be deemed to be beneficially owned by the Investor under the Exchange Act;

 

(ii)            all certificates and other instruments deemed advisable by the Company in order for the Company to enter into any borrowing
or pledging arrangement;

 

     

     

    

 

(iii)           all certificates and other instruments deemed advisable by the Company to comply with the provisions of this Subscription
Agreement and applicable law or to permit the Company to become or to continue as a business development company and/or regulated
investment company under the Code; and

 

(iv)           all other instruments or papers not inconsistent with the terms of this Subscription Agreement, which may be required by
law to be filed on behalf of the Company.

 

(b)           With
respect to the Investor and the Company, the foregoing power of attorney:

 

(i)             is
coupled with an interest and shall be irrevocable;

 

(ii)            may be exercised
by the Company either by signing separately as attorney-in-fact for the Investor or, after listing all of the Investors, executing
an instrument, by a single signature of the Company acting as attorney-in-fact for all of them;

 

(iii)           shall
survive the assignment by the Investor of the whole or any fraction of its Shares;

 

(iv)          may
not be used by the Company in any manner that is inconsistent with the terms of this Subscription Agreement and any other written
agreement between the Company and the Investor.

 

13.           Indemnity.
The Investor understands that the information provided herein (including the Investor Questionnaire) shall be relied upon
by the Company for the purpose of determining the eligibility of the Investor to purchase Shares in the Company. To the fullest
extent permitted under applicable law, the Investor agrees to indemnify and hold harmless the Company, the Adviser, the Administrator,
and their affiliates and each partner, member, officer, director, employee and agent thereof, from and against any loss, damage
or liability due to or arising out of a breach of any representation, warranty or agreement of the Investor contained in this
Subscription Agreement (including the Investor Questionnaire) or in any other document provided by the Investor to the Company
or in any agreement executed by the Investor in connection with the Investor’s investment in Shares.

 

14.           Miscellaneous.
This Subscription Agreement is not transferable or assignable by the Investor. Any purported assignment of this Subscription
Agreement shall be null and void. The
representations and warranties made by the Investor in this Subscription Agreement (including the Investor Questionnaire) shall
survive the closing of the transactions contemplated hereby and the dissolution of the Company without limitation as to time.
The Investor Questionnaire, including the representations and warranties contained therein, is an integral part of this Subscription
Agreement, and shall be deemed incorporated by reference herein. This Subscription Agreement may be executed in one or more counterparts,
all of which together shall constitute one instrument. The headings contained in this Subscription Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of this Subscription Agreement. Notwithstanding the
place where this Subscription Agreement may be executed by any of the parties hereto, the parties expressly agree that this Subscription
Agreement shall be governed by and construed in accordance with the laws of the state of Delaware, and the parties hereto submit
to the non-exclusive jurisdiction of the Delaware courts.

 

     

     

    

 

15.           Confidentiality.
The Investor acknowledges that the Memorandum and other information relating to the Company has been submitted to the Investor
on a confidential basis for use solely in connection with the Investor’s consideration of the purchase of Shares. The Investor
agrees that, without the prior written consent of the Company (which consent may be withheld at the sole discretion of the Company),
the Investor shall not (a) reproduce the Memorandum or any other information relating to the Company, in whole or in part, or (b)
disclose the Memorandum or any other information relating to the Company to any person who is not an officer or employee of the
Investor who is involved in its investments, or partner (general or limited) or affiliate of the Investor (it being understood
and agreed that if the Investor is a pooled investment fund, it shall only be permitted to disclose the Memorandum or other information
related to the Company if the Investor has required its investors to enter into confidentiality undertakings no less onerous than
the provisions of this Section 15), except to the extent (1) such information is in the public domain (other than as a result of
any action or omission of the Investor or any person to whom the Investor has disclosed such information) or (2) such information
is required by applicable law or regulation to be disclosed; provided, however, that in the event disclosure is required
pursuant to clause (2), the Investor agrees to (a) inform the Company of the full circumstances of the required disclosure, (b)
consult with the Company as to the possible steps to avoid or limit the required disclosure and to take such steps where they would
not result in material adverse consequences to the Investor and (c) provide the Company with an opportunity to review the contents
of any such disclosure. The Investor further agrees to return the Memorandum and any other information relating to the Company
if no purchase of Shares is made or upon the Company’s request therefore. The Investor acknowledges and agrees that monetary
damages would not be sufficient remedy for any breach of this section by the Investor, and that in addition to any other remedies
available to the Company in respect of any such breach, the Company shall be entitled to specific performance and injunctive or
other equitable relief as a remedy for any such breach.

 

16.           Necessary
Acts, Further Assurances. The parties shall at their own cost and expense execute and deliver such further documents and instruments
and shall take such other actions as may be reasonably required or appropriate to evidence or carry out the intent and purposes
of this Subscription Agreement or to show the ability to carry out the intent and purposes of this Subscription Agreement.

 

17.           No
Joint Liability Among the Company, the Adviser, and the Administrator. The Company shall not be liable for the fulfillment
of any obligation or the accuracy of any representation of the Adviser, or the Administrator under or in connection with this Subscription
Agreement, the Adviser shall not be liable for the fulfillment of any obligation or the accuracy of any representation of the Company,
or the Administrator under or in connection with this Subscription Agreement and the Administrator shall not be liable for the
fulfillment of any obligation or the accuracy of any representation of the Company, or the Adviser under or in connection with
this Subscription Agreement. There shall be no joint and several liability of the Company, the Adviser and the Administrator for
any obligation under or in connection with this Subscription Agreement.

 

     

     

    

 

 

IN WITNESS WHEREOF, the undersigned
has executed this Subscription Agreement as a deed on the date set forth below.

 

	Date:	 	 	Capital Commitment
	 	 	 	 
	 	 	 	USD
    ONLY
	 	 	 	 
	 	 	 	$30,000,000
	 	 	 	 
	 	 	 	INDIVIDUAL
    INVESTOR:
	 	 	 	 
	 	 	 	 
	 	 	 	(Print
    Name)
	 	 	 	 
	 	 	 	 
	 	 	 	(Signature)
	 	 	 	 
	 	 	 	 
	 	 	 	(Witnessed
    By)
	 	 	 	 
	 	 	 	PARTNERSHIP,
    CORPORATION, LIMITED LIABILITY COMPANY, TRUST, CUSTODIAL ACCOUNT, OTHER INVESTOR:
	 	 	 	 
	 	 	 	Mercer
    Audax Credit Feeder Fund LP
	 	 	 	              (Print Name
    of Entity)
	 	 	 	 
	 	 	 	By:	 
	 	 	 	 	(Signature)
	 	 	 	 
	 	 	 	Harry
    Leggat – VP of Mercer Investments LLC, manager of the GP
	 	 	 	                                      (Print Name
    and Title)
	 	 	 	 
	 	 	 	 
	 	 	 	(Witnessed
    By)

 

	Agreed and accepted:	 
	 	 
	AUDAX CREDIT BDC INC.	 
	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 

 

[Signature Page to Subscription Agreement]

 

    

     

    

 

INVESTOR QUESTIONNAIRE

 

	A.	General Information 

 

	1.	Print Full Name of Investor:

 

	 	Individual:	 
	 	 	First                       Middle                       Last

 

	 	Entity:	Mercer
    Audax Credit Feeder Fund LP
	 	 	 Name of Entity

 

	 	To assist the Company in preparing its tax filings, please check the category into which you fall:

 

	 	Partnership	x	Corporation	 ̈
	 	S-Corporation	 ̈	Estate	 ̈
	 	Grantor
    Trust	 ̈	 	 
	 	Trust-EIN
    (a trust with an	 	Trust-SSN
(a trust with an	
	 	EIN
    in this format: 12-3456789)	 ̈	EIN in this format: 123-45-6789)	 ̈
	 	IRA-EIN	 ̈	IRA-SSN	 ̈
	 	Exempt
    Organization	 ̈	 	 
	 	LLP	 ̈	LLC	 ̈
	 	Nominee-EIN	 ̈	Nominee-SSN	 ̈
	 	Other	 ̈	 	 

 

	 	Jurisdiction of Organization:	Cayman Islands

 

	 	Location of Domicile:	Cayman Islands*

 

	2.	U.S. Taxpayer Identification or Social Security Number:	N/A

 

	3.	Date of Birth:	 

 

	4.	Primary
    Contact Person for this Account and for General Notices: Please Refer to Exhibit C

 

	 	Name:		 

 

	 	Address:		 

 

	 		 

 

	 	Telephone:		 

 

	 	Fax:	 	 

 

	 	* Investor is a Cayman Islands exempted limited partnership that has a US general partner and is beneficially owned by non-US investors.  Attached is Form W-8 IMY for the Investor along with Forms W-8 from beneficial owners and a withholding statement, including tax treaty jurisdictions. 

 

    

     

    

 

5._____________________________ Residence
(if an individual) or Principal Place of Business (if an entity) of the Investor (no P.O. Boxes, if any):

 

Principal Place of Business:

 

	Address:	 c/o Mercer Investments LLC
	 	701 Market Street, Suite 1100
	 	Saint Louis, MO 63101

 

	Phone:	(314) 588-2500

 

	Fax:	(314) 588-2525

 

	Email:  	harry.leggat@mercer.com

 

	6.	For
    distributions of cash, please wire funds to the following bank account: Please Refer to Exhibit D

 

	 	Bank Name:	 

 

	 	Bank Location:	 

 

	 	Account Number:	

 

	 	Account Name:	 

 

	 	Bank’s Routing No.:	 

 

	 	For further credit to:	 

 

	 	(if any)	 

 

	 	Reference:	 

 

	 	SWIFT Code:	 

 

	7.	For distributions in-kind, please:

 

	 	Credit securities to my brokerage account at
    the following firm: Please Refer to Exhibit D

 

	 	Firm Name:	 

 

	 	Address:	 

 

	 	Account Name:	 

 

	 	Account Number:	 

 

	 	DTC Number:	 

 

    

     

    

 

B.           Regulation
D – Accredited Investor Status

 

The Investor represents and warrants that each equity owner
of the Investor is an “accredited investor” within the meaning of Regulation D under the Securities Act, and has indicated
below each category under which such equity owner qualifies as an “accredited investor.”

 

The Investor is:

 

	 ̈	(i)	an individual who had an income in excess of $200,000 in each of the two most recent years (or joint income with his or her spouse in excess of $300,000 in each of those years) and has a reasonable expectation of reaching the same income level in the coming year;
	 	 	 
	 ̈	(ii)	an individual who has a net worth (or joint net worth with his or her spouse) in excess of $1,000,000. For purposes of determining the Investor’s net worth, the Investor must exclude the value of his or her primary residence and any indebtedness secured by the primary residence up to its fair market value (i.e., any indebtedness secured by the residence that is in excess of the value of the home should be considered a liability and deducted from the Investor’s net worth).  The Investor must also subtract from his or her net worth any indebtedness secured by his or her primary residence that was obtained within the sixty days preceding the effective date of his or her subscription, unless such indebtedness was used to acquire the residence (in which case, the rule set forth in the preceding sentence would govern the application of such indebtedness when calculating the Investor’s net worth); 
	 	 	 
	 ̈	(iii)	a broker or dealer registered pursuant to Section 15 of the Exchange Act;
	 	 	 
	 ̈	(iv)	a bank as defined in Section 3(a)(2) of the Securities Act or any savings and loan association as defined in Section 3(a)(5)(A) of the Securities Act, whether acting in its individual or fiduciary capacity;
	 	 	 
	 ̈	(v)	an insurance company as defined in Section 2(a)(13) of the Securities Act; 
	 	 	 
	 ̈	(vi)	an investment company registered under the 1940 Act;
	 	 	 
	 ̈	(vii)	an Individual Retirement Account (“IRA”) or revocable trust and the individual who established the IRA or each grantor of the trust is an accredited investor on the basis of (i) or (ii) above;
	 	 	 
	 ̈	(viii)	a self-directed pension plan and the participant who directed that assets of his or her account be invested in the Company is an accredited investor on the basis of (i) or (ii) above and such participant is the only participant whose account is being invested in the Company;
	 	 	 
	 ̈	(ix)	a pension plan which is not a self-directed plan and which has total assets in excess of $5,000,000;
	 	 	 
	 ̈	(x)	a trust which consists of a single trust (a) with total assets in excess of $5,000,000, (b) which was not formed for the specific purpose of investing in the Company and (c) whose purchase is directed by a person who has such knowledge and experience in financial and business matters that he or she is capable of evaluating the merits and risks of the prospective investment;

 

    

     

    

 

	x	(xi)	a corporation, a partnership, a limited liability company or a Massachusetts or similar business trust, that was not formed for the specific purpose of acquiring an interest in the Company, with total assets in excess of $5,000,000;
	 	 	 
	 ̈	(xii)	an organization described in Section 501(c) of the Code, and exempt from U.S. income tax pursuant to Section 501(a) of the Code with total assets in excess of $5,000,000;
	 	 	 
	 ̈	(xiii)	an entity in which all of the equity owners are accredited investors;
	 	 	 
	 ̈	(xiv)	(A) a business development company as defined in Section 2(a)(48) of the 1940 Act or (B) a Small Business Investment Fund licensed by the United States Small Business Administration under Section 301(c) or (d) of the Small Business Investment Company Act of 1958;
	 	 	 
	 ̈	(xv)	a private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940, as amended;
	 	 	 
	 ̈	(xvi)	a director or executive officer of the Company; or
	 	 	 
	 ̈	(xvii)	none of the above applies (further information may be required).

 

Check all applicable categories.

 

    

     

    

 

C.           Qualified Purchaser
Status

 

Qualified Purchaser Status. 
Please mark the appropriate box next to each description applicable to the Investor:

 

(1)         
 ̈   A natural person (including any person who will hold a joint, community
property, or other similar shared ownership interest in the Company with that person’s qualified purchaser spouse) who owns
at least $5,000,000 in “Investments” (as defined in Rule 2a51-1 under the 1940 Act).

 

(2)         
 ̈   A company* that owns at least $5,000,000 in Investments
and that is owned directly or indirectly by or for two or more natural persons who are related as siblings or spouse (including
former spouses), or direct lineal descendants by birth or adoption, spouses of such persons, the estates of such persons, or foundations,
charitable organizations, or trusts established by or for the benefit of such persons.

 

(3)         
 ̈   A trust that is not covered by clause (2) above, and that was not
formed for the specific purpose of investing in the Company, as to which the trustee or other person authorized to make decisions
with respect to the trust, and each settlor or other person who has contributed assets to the trust, is a person described in clause
(1), (2), or (4) below.

 

(4)         
x  
A person (including a company), acting for its own account or the accounts of other qualified purchasers, who in the aggregate
owns and invests on a discretionary basis, not less than $25,000,000 in Investments.  

 

(5)         
 ̈   A natural person (including any person who will hold a joint, community
property, or other similar shared ownership interest in the Company with that person’s qualified purchaser spouse) who owns
at least $5,000,000 in Investments.

 

(6)         
 ̈   A “Qualified Institutional Buyer” as defined in Rule
144A under the Securities Act (as that term is modified by the limitations imposed thereon by Rule 2a51-1(g)(1) under the 1940
Act).

 

(7)         
 ̈   A company, regardless of the amount of its Investments, where each
of the beneficial owners of securities issued by such company is a person described in clause (1), (2), (3), (4), or (5). 
(If this item is checked, please contact the Company.  Additional requirements may apply.)

 

 

* 
            For purposes of this Question, “company” includes
a corporation, a partnership, an association, a joint-stock company, a trust or a fund.  In order to be a “qualified
purchaser” any company that both (i) would, but for an exception provided in Sections 3(c)(1) or 3(c)(7) of the 1940 Act,
be an investment company and (ii) was in existence prior to May 1, 1996, must have complied with the consent provisions of Section
2(a)(51)(C) of the 1940 Act.

 

    

     

    

 

D.            Required Supplemental
Data

 

1.             Is
the Investor, or is the Investor acting (directly or indirectly)
on behalf of or using the assets of, a person that is or will be a Benefit Plan
Investor (as defined below)?

 

 ̈
Yes               x
No

 

A “Benefit Plan Investor” is as defined in 29 C.F.R.
Section 2510.3-101, as modified by Section 3(42) of the U.S. Employee Retirement Income Security Act of 1974, as amended (“ERISA”)
(the “Plan Asset Regulation”) and includes (i) an “employee benefit plan” subject to Part 4, Subtitle B
of Title I of ERISA, (ii) a “plan” subject to Section 4975 of the Code, and (iii) any entity whose underlying assets
include “plan assets” by reason of such employee benefit plan’s or other plan’s investment in the entity
or otherwise. A Benefit Plan Investor can also include an insurance company general account the assets of which are considered
for purposes of ERISA or Section 4975 of the Code to be assets of a Benefit Plan Investor.

 

2.             If
the Investor is, or is acting (directly or indirectly) on behalf of or using the assets of, a person that is or will be a Benefit
Plan Investor, the Investor is:

 

	 ̈	(a)	an “employee benefit plan” or trust that is subject to Part 4, Subtitle B of Title I of ERISA;
	 	 	 
	 ̈	(b)	a “plan” to which Section 4975 of the Code applies;
	 	 	 
	 ̈	(c)	an entity (other than an insurance company general account) whose underlying assets include “plan assets” by reason of an employee benefit plan’s or other plan’s investment in the entity or otherwise for purposes of ERISA or Section 4975 of the Code;
	 	 	 
	 	 	If Item 2(c) above is applicable, insert the maximum percentage of the assets of the entity that constitutes or may in the future constitute “plan assets” during the period of its investment in the Company:
	 	 	 
	 	 	_________%
	 	 	 
	 ̈	(d)	An insurance company using assets of its general account (directly or through subsidiaries) that are subject to ERISA or Section 4975 of the Code (including, without limitation, by virtue of Section 401(c) of ERISA).
	 	 	 
	 	 	If Item 2(d) above is applicable, insert the maximum percentage of the general account as a whole that constitutes or may in the future constitute “plan assets” during the period of its investment in the Company:
	 	 	 
	 	 	_________%

 

Without limiting the remedies available
in the event of a breach, the Investor agrees promptly to notify the Adviser in writing if there is a change in the percentage
set forth above, or any other response above, at such time or times as the Adviser may request.

 

    

     

    

 

3.             If
the Investor is not subject to Title I of ERISA or Section 4975 of the Code, indicate whether or not such Investor is subject to
any other federal, state, local, non-U.S. or other laws or regulations that could cause the underlying assets of the Company to
be treated as assets of the Investor by virtue of its investment in the Company and thereby subject the Company and the Adviser
(or other persons responsible for the investment and operation of the Company’s assets) to laws or regulations that are similar
to Section 406 of ERISA or Section 4975 of the Code.

 

 ̈
Yes               x
No

 

E.            Certain
Unregistered Private Investment Companies:

 

Is the Investor a private investment company
which is not registered under the 1940 Act in reliance on:

 

	Section 3(c)(1) thereof?	 ̈ Yes	x No	 
	 	 	 	 
	Section 3(c)(7) thereof?	x Yes	 ̈ No	 

 

F.           Controlling Persons:

 

Is the undersigned or will the undersigned
be a person (including an entity) that has discretionary authority or control with respect to the assets of the Company or a person
who provides investment advice with respect to the assets of the Company or an “affiliate” of such a person? For purposes
of this representation and agreement, an “affiliate” is any person controlling, controlled by or under common control
with any such person, including by reason of having the power to exercise a controlling influence over the management or policies
of such person.

 

 ̈
Yes               x
No

 

G.           Related Parties/Other
Beneficial Interests:

 

1.            To
the best of the Investor’s knowledge, does the Investor control, or is the Investor controlled by or under common control
with, any other Investor in the Company?

 

 ̈
Yes               x
No

 

If the question above was answered
 “Yes,” please indicate the name of such other investor in the space below:

 

____________________________________

 

2.             Will
any other person or persons have a beneficial interest in the Shares to be acquired hereunder (other than as a shareholder, partner,
policy owner or other beneficial owner of equity interests in the Investor)? (By way of example, and not limitation, “nominee”
Investors or Investors who have entered into swap or other synthetic or derivative instruments or arrangements with regard to the
Shares to be acquired herein would check “Yes”).

 

 ̈
Yes               x
No

 

    

     

    

 

 

If either question above was
answered “Yes,” please contact the Administrator for additional information that will be required.

 

H.           BHC Investor
Status: 

 

Is the Investor a “BHC Investor”?1

 

 ̈
Yes               x
No

 

 

[remainder of page intentionally left blank]

 

 

 

1 A
 “BHC Investor” is defined as an Investor that is a bank holding company, as defined in Section 2(a) of the Bank Holding
Company Act of 1956, as amended (the “BHC Act”), a non-bank subsidiary (for purposes of the BHC Act) of a bank holding
company, a foreign banking organization, as defined in Regulation K of the Board of Governors of the Federal Reserve System (12
C.F.R. § 211.23) or any successor regulation, or a non-bank subsidiary (for purposes of the BHC Act) of a foreign banking
organization which subsidiary is engaged, directly or indirectly in business in the United States and which in any case holds
Shares for its own account.

 

    

     

    

 

	 	Signatures:
	 	 
	 	INDIVIDUAL:
	 	 
	 	 
	 	(Signature)
	 	 
	 	 
	 	(Print Name)
	 	 
	 	PARTNERSHIP, CORPORATION, LIMITED LIABILITY COMPANY,
TRUST, CUSTODIAL ACCOUNT, OTHER:
	 	 
	 	Mercer Audax Credit Feeder Fund LP
	 	(Name of Entity)
	 	 	 
	 	By:	 
	 	 	(Signature)
	 	 	 
	 	 
	 	(Print Name and Title)

 

    

     

    

  

APPENDIX A

 

[CERTIFICATE OF INCORPORATION]

 

    

     

    

 

APPENDIX B

 

[BYLAWS]

 

    

     

    

 

APPENDIX C

 

[FORM OF ADVISORY AGREEMENT]

 

    

     

    

 

APPENDIX D

 

[FORM OF ADMINISTRATION AGREEMENT]

 

    

     

    

 

APPENDIX E

 

TRANSFER RESTRICTIONS

 

No Transfer of the Investor’s Capital
Commitment or all or any fraction of the Investor’s Shares may be made without (i) registration of the Transfer on the Company
books and (ii) the prior written consent of the Administrator. In any event, the consent of the Company may be withheld (x) if
the creditworthiness of the proposed transferee, as determined by the Company in its sole discretion, is not sufficient to satisfy
all obligations under the Subscription Agreement or (y) unless, in the opinion of counsel (who may be counsel for the Company or
the Investor) satisfactory in form and substance to the Company:

 

		·	such Transfer would not violate the Securities Act, the 1940 Act or any state (or other jurisdiction)
securities or “Blue Sky” laws applicable to the Company or the Shares to be Transferred; and

 

		·	such Transfer would not be a “prohibited transaction” under ERISA or the Code or the
regulations promulgated thereunder or cause all or any portion of the assets of the Company to constitute “plan assets”
under ERISA, certain Department of Labor regulations or Section 4975 of the Code.

 

The Investor agrees that it shall
pay all reasonable expenses, including attorneys’ fees, incurred by the Company in connection with any Transfer of
all or any fraction of its Shares, prior to the consummation of such Transfer.

 

Any person that acquires all or any fraction
of the Shares of the Investor in a Transfer permitted under this Appendix E shall be obligated to pay to the Company the appropriate
portion of any amounts thereafter becoming due in respect of the Capital Commitment committed to be made by its predecessor in
interest. The Investor agrees that, notwithstanding the Transfer of all or any fraction of its Shares, as between it and the Company
it shall remain liable for its Capital Commitment prior to the
time, if any, when the purchaser, assignee or transferee of such Shares, or fraction thereof, becomes a holder of such Shares.

 

The Company shall not recognize for any
purpose any purported Transfer of all or any fraction of the Shares and shall be entitled to treat the transferor of Shares as
the absolute owner thereof in all respects, and shall incur no liability for distributions or dividends made in good faith to it,
unless the Company shall have given its prior written consent thereto and there shall have been filed with the Company a dated
notice of such Transfer, in form satisfactory to the Company, executed and acknowledged by both the seller, assignor or transferor
and the purchaser, assignee or transferee, and such notice (i) contains the acceptance by the purchaser, assignee or transferee
of all of the terms and provisions of this Subscription Agreement and its agreement to be bound thereby, and (ii) represents that
such Transfer was made in accordance with this Subscription Agreement, the provisions of the Memorandum and all applicable laws
and regulations applicable to the transferee and the transferor.

 

    

     

    

 

EXHIBIT A

 

CIP MATRIX

 

To help the government
fight the funding of terrorism and money laundering activities, U.S. federal law requires certain financial institutions to obtain,
verify, and record information that identifies each person who opens an account.

 

The Company may reject
your subscription if the required identifying information is not provided.

 

Each Investor must provide
the following information and documents to the Administrator in order to satisfy its anti-money laundering program:

 

	Non-U.S. Persons:
	
        In addition to the specific requirements
        listed below, Non-U.S. Investors must also:

         

        1.            Provide
a translation for any documents not in English.

         

        2.            (Other
than individual Non-U.S. Persons) Provide a statement of account purpose, including: (a). Nature of the customer’s business
and the market it serves; (b) Account purpose/Is the account being established on behalf of the customers’ customers? (c)
Anticipated account activity

         

 

(Note: If an
asterisk (*) appears next to an item listed below, the item is optional.)

 

	Type of Investor	Identification Information	Verification Information
	
        Individual

         

        Individuals include owners
        of individual accounts, both individual owners of joint accounts and power of attorney
	
        1.       Name
        of investor

        2.       Physical
        address and mailing address (if different)

        3.       Date
        of Birth

        4.       Social
        Security Number

        5.       Signed
        subscription document

        6.       List
        of authorized signers (other than investor, if any)

        7.       Source
        of Wealth*

        8.       Telephone
        number*

        9.       Occupation
        *

        10.     Employer
        *

        11.     Email
        address/website *

         
	
        Copy of either:

        1. Passport OR

        2. Photo Drivers license OR

        3. Other government–issued
        photo ID

         

        Note: Non-Documentary methods
        (i.e., PA compliance) may also be utilized for verification.

         

 

    

     

    

 

 

	Type of Investor	Identification Information	Verification Information
	
        Private Corporation

         

        Private Corporation includes Limited
        Liability Companies (LLC)
	
        1.       Name
        of corporation

        2.       Beneficial
        Owners with more than 20% interest

        3.       Physical
        address & mailing address (if different)

        4.       U.S.
        TIN or other government ID number (accompanied by a description of the type of identification and the name of the issuing government
        body)

        5.       Signed
        subscription document

        6.       List
        of Authorized Signers

        7.       Nature
        of business

        8.       Source
        of Wealth*

        9.       Telephone
        number*

        10.     Email
        address/website *

         
	
        Copy of either:

        1. Certificate of Incorporation OR

        2. Certificate of good standing OR

        3. Government issued business license

         

        Note: Non-Documentary methods (i.e.

        PA compliance) may also be utilized for

        verification.

         

        Foreign Banks: a Shell Bank certification must be supplied

         

	U.S. Public Corporation	
        1.       Name
        of corporation

        2.       Physical
        address & mailing address (if different)

        3.       U.S.
        TIN or other government ID number

        4.       Signed
        subscription document

        5.       List
        of Authorized Signers

        6.       Source
        of Wealth*

        7.       Telephone
        number*

        8.       Email
        address/website *

         
	
        Obtain:

        Ticker Symbol

         

	
        Partnerships

         

        Partnerships include Limited Partnership
        (LP)
	
        1.       Name
        of partnership

        2.       Partners
        with more than 20% interest

        3.       Physical
        address & mailing address (if different)

        4.       U.S.
        TIN or other government ID number

        5.       Signed
        subscription document

        6.       List
        of Authorized Signers

        7.       Nature
        of business

        8.       Source
        of Wealth*

        9.       Telephone
        number*

        10.     Email
        address/website *

         
	
        Copy of:

        1. Partnership/Membership Agreement

         

        Note: Non-Documentary methods (i.e. PA compliance) may also
        be utilized for verification.

         

        Non-U.S.-Based Partnerships:

        Copy of:

        1. An unexpired
        government-issued photo drivers license or other government-issued ID for all managing or general partner(s)

        2. If the GP/managing partner is
        a business entity, U.S. TIN or other government ID number with a description of the type of the identification and the name of
        the issuing body

         

 

    

     

    

 

	Type of Investor	Identification Information	Verification Information
	U.S. Non-Profit	
        1.       Name
        of entity

        2.       Physical
        address & mailing address (if different)

        3.       U.S.
        TIN or other government ID number

        4.       Signed
        subscription document

        5.       List
        of Authorized Signers

        6.       Nature
        of business

        7.       Source
        of Wealth*

        8.       Telephone
        number*

        9.       Email
        address/website *

         
	
        Copy of:

        1. IRS Determination Letter

         

        Note: Non-Documentary methods are not an acceptable backup for
        Non-Profits; IRS Determination Letter must be obtained.

         

	Trust	
        1.       Name
        of trust

        2.       List
        of Trustee(s)

        3.       Physical
        address & mailing address (if different)

        4.       U.S.
        TIN or other government ID number

        5.       Signed
        subscription document

        6.       Name
        of maker of trust (grantor/trustor)

        7.       List
        of principal beneficiaries

        8.       Source
        of Wealth*

        9.       Telephone
        number of Trust*

        10.     Successor
        Trustee*

        11.     Email
        address/website *

         
	
        Copy of:

        1. Trust deed

         

        Note: Non-Documentary methods are not an acceptable backup for
        Trusts; Trust deed must be obtained.

         

         

	
        Investor declared as exempt from CIP

         

        (ERISA Plan, Governmental Agency, Financial
        Institution subject to Section 352 of the USA PATRIOT Act or Publicly Traded Companies listed on the New York Stock Exchange &
        Nasdaq)
	
        1.       Name
        of entity

        2.       Physical
        address & mailing address (if different)

        3.       U.S.
        TIN or other government ID number

        4.       Signed
        subscription document

        5.       List
        of authorized signers

        6.       Telephone
        number *

        7.       Email
        address/website *

         
	
        Copy of:

        1.     If ERISA – copy of
        IRS letter or IRS form 5500 or plan document

        2.     If Governmental Agency –
        website research or alternative informational source

        If Financial Institution subject
        to Section 352 of the USA PATRIOT Act certificate # for bank on FDIC website or look up CRD# for a Broker Dealer on the FINRA.org
        website

        4.     If
        publicly traded company listed on the New York Stock Exchange or Nasdaq – Ticker symbol in order to research in Bloomberg

 

    

     

    

 

Individuals Associated with U.S. Entities

 

In addition to the identification verification
performed on the entity (i.e. LLC, LP, trust), verification of the identities of the individuals listed below must also be performed,
where applicable, as specified in the table.

 

		·	Beneficial Owners with more than 20% interest of Private Companies and Limited Liability Companies
(LLC)

		·	Partners with more than 20% interest of all Partnerships including Limited Partnerships (LP)

		·	Trustees

 

	Identification Information	Verification Information
	
        1.       Name

        2.       Physical
        address & mailing address (if different)

        3.       Date
        of birth

        4.       U.S.
        TIN or other government ID number
	
        Copy of:

        1. Passport OR

        2. Photo drivers license OR

        3. Other government-issued
        photo ID

         

        Note: Non-Documentary methods
        (i.e. PA compliance) may also be utilized for verification.Ex. 10.1

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (this “Agreement”) by and between SUMMER ENERGY HOLDINGS, INC., a Nevada corporation (“Employer”), and Travis Andrews (“Employee” and, together with Employer, the “Parties”) is entered into and made effective as of July 1, 2017 (the “Effective Date”).  

A.Employer is the parent company of Summer Energy, LLC, a Texas limited liability company (“Summer LLC” and, collectively with its successors, designees and past, present and future operating companies, divisions, subsidiaries and affiliates, the “Summer Companies”).  The Summer Companies through Summer LLC or through its subsidiaries or affiliates, including Employer (each, an “Affiliated Entity”) operate in the highly-competitive and rapidly evolving retail electric provider business (the “Business”) in Texas (the “Industry”) and provide such Services (the “Services”) to residential and commercial power customers in Texas.  

B.Employee has heretofore been employed by Employer, up to and through the Effective Date.  Effective with this Agreement, Employer desires to employ Employee and Employee desires to be employed by Employer, in such modified capacity, and under the terms and restrictions as set forth herein.   

C.Employee understands and acknowledges that, because the Summer Companies may operate the Business and provide Services to customers through and in conjunction with one or more Affiliated Entities, including Employer, Employee (i) may work with employees, customers and suppliers who are not direct employees, customers or suppliers of Employer but who are employees, customers and suppliers of another Affiliated Entity, and (ii) may be exposed to and expected to use confidential information and trade secrets of an Affiliated Entity other than that of Employer in the performance of Employee’s duties for Employer. 

D.As a result of such employment, Employee will have access to Confidential Information and Trade Secrets (as defined herein).  Employee will gain the ability to influence the goodwill of Employer and other Affiliated Entities with Partners (as defined herein) necessary to the success of the Business.  Employee recognizes that the Confidential Information and Trade Secrets and Partner relationships and goodwill are assets deserving of protection as provided for in the restrictive covenants contained in this Agreement. 

NOW, THEREFORE, for and in consideration of Employee’s employment with Employer on the terms and conditions set forth herein, and the promises, mutual covenants, and agreements hereinafter contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Employer and Employee, intending to be legally bound, hereby agree and covenant as follows:

1.Employment; Duties. 

(a)Term.  Subject to the terms and conditions of this Agreement, Employer agrees to employ Employee, and Employee agrees to be employed by Employer as of the Effective Date pursuant to the terms herein for a period of two (2) years.     

(b)Release of Claims.  This Agreement supersedes in its entirety any employment agreement, oral or in writing, or comparable arrangements between Employer, Summer LLC or any Affiliated Entity and Employee in effect prior to the Effective Date.  Employee hereby relinquishes and unconditionally forfeits any claim or entitlement to any severance pay or other post-termination benefits from Employer pursuant to any agreement in effect prior to the Effective Date, and hereby discharges and releases any claims against Employer relating to anything done or omitted to be done with respect to Employee’s employment up to the date of this Agreement.    

4832-9116-5514.v2

(c)Position; Duties.  During the period of Employee’s employment hereunder, Employee agrees to serve Employer, and Employer shall employ Employee, in the position listed on Exhibit A, or in such other capacity or capacities as may be determined from time to time by Employer.  If appointed or elected, Employee also may serve as an officer, manager, consultant or agent of one or more Affiliated Entity other than Employer in such capacity or capacities as may be determined from time to time by Employer and Summer LLC.  During the period of Employee’s employment with Employer, Employee shall in good faith devote Employee’s time, attention, skills and efforts to the business and affairs of Employer.  Employee’s duties shall be performed under the direction and supervision of Employer’s Board of Directors (the “Board”) and may change in order to meet the Company’s existing needs at the direction of the Board.  The foregoing shall not be construed as prohibiting Employee from serving on corporate, civic or charitable boards or committees or making personal investments, so long as such activities do not materially interfere with the performance of Employee’s obligations to Employer as set forth in this Agreement or as may be determined by Employer from time to time. 

(d)Compensation; Benefits.  For all services rendered by Employee under this Agreement, Employee shall be compensated as set forth in Exhibit A.  Employer may withhold from any amounts payable under this Agreement such federal, state and local taxes required to be withheld pursuant to any applicable law or regulation. 

(e)Survival of Employee’s Obligations After Termination.  Upon the effective date of the termination of Employee’s employment with Employer under this Agreement, regardless the date, cause or manner of such termination (the “Termination Date”), Employee’s obligations set forth in Sections 3, 4 and 5, below, shall survive and remain in full force and effect to the extent provided in those Sections. 

2.Termination of Employment. 

(a)Termination by Employer for Cause.  Employer may terminate Employee’s employment under this Agreement for “Cause” (as hereinafter defined) or otherwise at will at any time immediately upon written notice, or where applicable, upon Employee’s failure to cure the breach as provided below, whereupon Employer shall have no further obligation hereunder to Employee, except for payment of amounts of Base Salary accrued through the Termination Date.  For purposes of this agreement, “Cause” shall mean: (i) the continued willful failure by Employee to substantially perform his duties with Employer, (ii) the willful engaging by Employee in gross misconduct materially and demonstrably injurious to Employer or (iii) Employee’s material breach of Section 1, 3, 4 or 5 of this Agreement; provided, that with respect to any breach that is curable by Employee, as determined by Employer in good faith, Employer has provided Employee written notice of the material breach and Employee has not cured such breach, as determined by Employer in good faith, within fifteen (15) days following the date Employer provides such notice.   

(b)Termination as a Result of Employee’s Death or Disability.  Employee’s employment hereunder shall terminate automatically upon Employee’s death and may be terminated by Employer upon Employee’s Disability (as hereinafter defined).  If Employee’s employment hereunder is terminated by reason of Employee’s Disability or death, Employee’s (or Employee’s estate’s) right to benefits under this Agreement will terminate as of the date of such termination and all of Employer’s obligations hereunder shall immediately cease and terminate, except that Employee or Employee’s estate, as the case may be, will be entitled to receive accrued Base Salary and benefits through the Termination Date.  As used herein, “Disability” shall have the meaning set forth in any long-term disability plan in which Employee participates, and in the absence thereof shall mean the determination in good faith by Employer’s board of directors (“Board”) (or comparable governing body) that, due to physical or mental illness, Employee shall have failed to perform his duties on a full-time basis hereunder for one hundred eighty (180) consecutive days and shall not have returned to the performance of his duties hereunder on a full-time basis before the  

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4832-9116-5514.v2

end of such period, and if Disability has occurred termination shall occur within thirty (30) days after written notice of termination is given (which notice may be given before the end of the one hundred eighty (180) day period described above so as to cause termination of employment to occur as early as the last day of such period). 

(c)Termination by Employee for Good Reason or by Employer other than as a Result of Employee’s Death or Disability or other than for Cause; Change of Control.  

(i)Employee may terminate Employee’s employment hereunder for “Good Reason” (as hereinafter defined), if Good Reason exists, upon at least thirty (30) days’ prior written notice to Employer, and Employer may terminate Employee’s employment hereunder for any reason or for no reason, other than as a result of Employee’s death or Disability or for Cause, upon at least thirty (30) days’ prior written notice to Employee, in each case with the consequences set forth in this Section 2(c).  

(ii)If Employee’s employment is terminated by Employee for Good Reason or by Employer for any reason other than Employee’s death or Disability or other than for Cause, or if Employee’s employment is terminated without Cause following a “Change of Control” (as hereinafter defined), subject to Employee entering into and not revoking a release of claims in favor of Employer and its affiliates pursuant to Section 2(e) below and Employee fully complying with the covenants set forth in Sections 3, 4 and 5, Employee shall be entitled to the following benefits: 

(A)Cash severance payments equal in the aggregate to six (6) months of Employee’s annual Base Salary at the time of termination, payable in accordance with Employer’s customary payroll practices as in effect from time to time.   

(B)Continuation of Employee’s medical and health insurance benefits for a period equal to the lesser of (i) six (6) months or (ii) the period ending on the date Employee first becomes entitled to medical and health insurance benefits under any plan maintained by any person for whom Employee provides services as an employee or otherwise. 

(C)In addition, solely if Employee is terminated without Cause following a “Change of Control”, any unvested stock options granted to Employee pursuant to this Agreement shall accelerate and immediately vest.  

(iii)For purposes of this Agreement, “Good Reason” shall mean: (A) a material reduction (without Employee’s express written consent) in Employee’s Base Salary, unless the reduction is made as part of, and is generally consistent with, a general reduction of executive salaries; or (B) Employer’s material breach (without Employee’s express written consent) of Section 1 of this Agreement; provided, that Employee has provided Employer written notice of the material breach and Employer has not cured such breach within thirty (30) days following the date Employee provides such notice.  If Employer thereafter intentionally repeats the breach it previously cured, such breach shall no longer be deemed curable. 

(iv)For purposes of this Agreement, “Change of Control” shall mean (A) the sale, conveyance or other disposition of all or substantially all of Employer’s assets as an entirety or substantially as an entirety to any “person” (as such term is used in Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), entity or “group” of persons (as defined in Section 13(d) of the Exchange Act) acting in concert; (ii) any “person” becoming the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of Employer representing 50% or more of the total voting power represented by Employer’s then-outstanding voting securities; or (iii) a merger or consolidation of Employer with any other  

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4832-9116-5514.v2

corporation or other entity, other than a merger or consolidation of Employer with any other corporation or other entity, other than a merger or consolidation that would result in the voting securities of Employer outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its controlling entity) at least 50% of the total voting power represented by the voting securities of Employer, or such surviving entity (or its controlling entity), outstanding immediately after such merger or consolidation, as applicable.  

(d)Termination by Employee other than for Good Reason.  Employee may terminate his employment with Employer other than for Good Reason upon fifteen (15) days’ written notice to Employer, after which Employer shall have no further obligation hereunder to Employee, except for payment of amounts of Base Salary and other benefits accrued through the Termination Date.  If Employee so notifies Employer of such termination, Employer shall have the right to accelerate the effective date of such termination to any date after Employer’s receipt of such notice, but such acceleration will not be deemed to constitute a termination of Employee’s employment by Employer without Cause, and the consequences of such termination will continue to be governed by this subsection (d). 

(e)Waiver and Release.  In consideration for and as a condition to the payments and benefits provided and to be provided under this Agreement, Employee agrees that Employee will, within thirty (30) days after the Termination Date, deliver to Employer a fully executed release agreement substantially in a form then used by and agreeable to Employer and which shall fully and irrevocably release and discharge Employer, Summer LLC and the Affiliated Entities and their respective directors, officers, managers, members, shareholders and employees from any and all claims, charges, complaints, liabilities of any kind, known or unknown, owed to Employee, other than any rights Employee may have under the terms of this Agreement that survive such termination of employment and other than any vested rights of Employee under any of Employer’s employee benefit plans or programs that, by their terms, survive or are unaffected by such termination of employment. 

3.Protection of Confidential Information.   

(a)Employee expressly recognizes and acknowledges that in connection with Employee’s employment with Employer, Employee will be given access to certain highly-sensitive confidential and proprietary information belonging either to Employer or to the Summer Companies or other parties who may have furnished such information under obligations of confidentiality, relating to and used in the Business or the provision of Services (collectively, “Confidential Information”).  Employee expressly recognizes and acknowledges that, unless otherwise generally available to the public, Confidential Information shall include, but not be limited to, the following categories of information and material, regardless of how such information or material may exist from time to time and whether in electronic, print, or other form, including all copies, notes, or other reproductions or replicas thereof, which constitute valuable, special, and unique assets of Employer or its affiliates that have been developed or acquired through substantial investments of time, money, and resources: 

(i)any and all information relating to the operation of the Business or the provision of Services, methods of operation, technology, or marketing, including, but not limited to, business plans, processes, strategic plans, forecasts, financial information or data, marketing information or data, research and development, business account lists, customer lists (including customer names and contact information), customer information (including customer preferences, pricing, buying habits and needs and the methods of fulfilling those needs), employee lists (including skills, ability and compensation of employees other than Employee), vendor or supplier lists, licensor or licensee lists, contractor lists, records relating to any intellectual property owned by, controlled, or maintained by any Affiliated Entity related to the operation of the Business or provision of Services,  

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4832-9116-5514.v2

and any and all other records pertaining to the operation of the Business or provision of Services which Employer may, from time to time, designate as confidential or proprietary or that Employee reasonably knows should be treated or has been treated by Employer or its affiliates as confidential or proprietary and is related to the operation of the Business or provision of Services;

(ii)the specific terms of any agreement or arrangement, whether oral or written, between an Affiliated Entity and any other Affiliated Entity, including Employer, or any licensor, licensee, customer, utility, supplier, vendor, employee, contractor, sub-contractor, government agency, or municipality with which such Affiliated Entity may be associated or affiliated from time to time which relate to the operation of the Business or provision of Services, including, but not limited to, anything of value (including, but not limited, to monetary payments) provided or received by such Affiliated Entity, or the expiration date of any such agreement or arrangement;  

(iii)any and all information of a technical or proprietary nature developed by or acquired by any Affiliated Entity or made available to any Affiliated Entity and its employees by any other Affiliated Entity or any licensor, licensee, customer, utility, supplier, vendor, employee, contractor, sub-contractor, government agency, or municipality of any Affiliated Entity, on a confidential basis or protected basis and related to the Businesses or provision of Services, including but not limited to any scientific or technical analyses, ideas, concepts, designs, specifications, requirements, prototypes, techniques, technical data or know-how, formulae, methods, discoveries, improvements, equipment, research and development, and inventions related to the Businesses or provision of Services; and 

(iv)excludes information (A) which is in the public domain through no unauthorized act or omission of Employee or (B) which becomes available to Employee on a non-confidential basis from a source other than Employer or its affiliates without breach of such source’s confidentiality or non-disclosure obligations to Employer or any of its affiliates. 

(b)Employee agrees that Employee shall not disclose any Confidential Information to any third-party not employed by or otherwise expressly associated or affiliated with Employer for any reason or purpose whatsoever and will not use such Confidential Information except on behalf of Employer at any time during Employee’s employment with Employer or any other Affiliated Entity, or at any time within two years after the Termination Date.  Employee further agrees to promptly surrender to Employer or any other Affiliated Entity upon request during Employee’s employment with Employer and immediately upon the Termination Date, all Confidential Information and any other property of any kind, existing in any tangible, print or electronic form of any Summer Company in Employee’s possession or under Employee’s control, including all passwords used by Employee to access facilities, networks, or phone systems of any Summer Company.  Employee also expressly agrees that immediately upon the Termination Date, Employee shall cease using any secure website or web portals, e-mail system, or phone system or voicemail service of the Summer Companies.   

(c)In addition, during Employee’s employment with Employer and at all times after the Termination Date, Employee shall not directly or indirectly disclose any Trade Secret (defined below) to any third-party, and shall not use any Trade Secret, directly or indirectly, for Employee or for others, without the prior written consent of Employer.  For purposes of this Agreement, the term “Trade Secret” means any item of Confidential Information that constitutes a trade secret of Employer or any of the Affiliated Entities under the common law or statutory law of the state of Texas.  The Parties acknowledge and agree that this Agreement is not intended to, and does not, alter either Employer’s rights or Employee’s obligations under any state or federal statutory or common law regarding trade secrets and unfair trade practices. 

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4832-9116-5514.v2

(d)It is acknowledged and agreed that any breach or threatened breach of the provisions of this Section 3 would cause irreparable injury to Employer and that money damages would not provide an adequate remedy to Employer.  In the event of a breach or threatened breach by Employee of this Section 3, Employer shall be entitled to an injunction restraining Employee from disclosing any Confidential Information or Trade Secrets, and, further, from accepting any employment with or rendering any services to any such third-party to whom any Confidential Information or Trade Secret has been disclosed or is threatened to be disclosed by Employee.  

(e)Nothing contained in this Section 3 shall be construed as prohibiting Employer from pursuing any other equitable or legal remedies for any such breach or threatened breach, including recovery from Employee of any monetary damages that Employer may suffer by reason of any such breach or threatened breach. 

4.Restrictive Covenants.  Employee and Employer understand and agree that the purpose of this Section 4 is solely to protect Employer’s legitimate business interests, including, but not limited to Confidential Information and Trade Secrets, Partner relationships and goodwill, and the Summer Companies’ competitive advantage within the Industry in the operation of the Businesses or provision of Services.  This Section 4 is not intended to impair, nor will it impair, Employee’s ability or right to work or earn a living.  Employee and Employer further understand and agree that this Section 4 represents an important element of this Agreement, and is a material inducement to Employer entering into this Agreement, without which Employer would not have entered into this Agreement.   

(a)Covenant Not to Compete.  Employee acknowledges that Employee’s duties as an executive with Employer will entail involvement with the entire range of Employer’s operations across the Industry, and that Employee’s extensive familiarity with the Summer Companies’ provision of Services, Confidential Information and Trade Secrets justifies a restriction applicable across the entire geographic footprint in which Employer provides Services including, if applicable at a later date, in locations other than the retail electric provider market of Texas.  To the fullest extent permitted by any applicable state law, if Employee terminates his employment with Employer other than for Good Reason upon fifteen (15) days’ written notice to Employer, for the period of twelve (12) months immediately following the Termination Date, Employee shall not, without the prior written consent of Employer, directly or indirectly, obtain or hold a Competitive Position with a Competitor in the Restricted Territory, If Employee’s employment is terminated for any other reason, Employee agrees that for the period of one (1) month immediately following the Termination Date, Employee shall not, without the prior written consent of Employer, directly or indirectly, obtain or hold a Competitive Position with a Competitor in the Restricted Territory, as these terms are defined herein. 

(i)For purposes of this Agreement, a “Competitive Position” means any employment with or service to be performed (whether as owner, member, manager, lender, partner, shareholder, consultant, agent, employee, co-venturer, or otherwise) for a Competitor in which Employee (A) will use or disclose or could reasonably be expected to use or disclose any Confidential Information or Trade Secrets for the purpose of providing, or attempting to provide, such Competitor with a competitive advantage in the Industry or (B) will hold a position, will have duties, or will perform or be expected to perform services for such Competitor, that is or are the same as or substantially similar to the position held by Employee with Employer or those duties or services actually performed by Employee for Employer in connection with the provision of Services by the Summer Companies, or (C) will otherwise engage in the Businesses, or market, sell or provide Services in competition with Employer.   

(ii)For purposes of this Agreement, “Competitor” means any third-party (A) whose business is the same as or substantially similar to the Business or major segment thereof, or (B) who  

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4832-9116-5514.v2

owns or operates, intends to own or operate, or is preparing to own or operate a subsidiary, affiliate, or business line or business segment whose business is or is expected to be the same as or substantially similar to the Business or major segment thereof.

(iii)For purposes of this Agreement, “Restricted Territory” means: (A) the Texas retail electric provider market (referred to in this Agreement as the “Industry”); and (B) additionally, to the fullest extent permitted by any applicable state law, any additional states in which Employer provides Services between the Effective Date and the Termination Date.   

Employee shall be deemed to be in a Competitive Position with a Competitor in the Restricted Territory if Employee obtains or holds a Competitive Position with a Competitor that conducts its business within the Restricted Territory (and Employee’s responsibilities relate to that Competitor’s business in the Restricted Territory), even if Employee’s residence or principal place of work (other than California) is not within the Restricted Territory.

Notwithstanding the foregoing, Employee may, as a passive investor, own capital stock of a publicly held corporation, which is actively traded in the over-the-counter market or is listed and traded on a national securities exchange, which constitutes or is affiliated with a Competitor, so long as Employee’s ownership is not in excess of five percent (5%) of the total outstanding capital stock of the Competitor.

(b)Non-Solicitation / No Interference Provisions. 

(i)Business Partners.  Employee understands and agrees that the relationship between the Summer Companies and each of its licensors, licensees, suppliers, vendors, contractors, subcontractors, consultants, customers, and prospective customers related to the Business or the provision of Services (the “Partners”) constitutes a valuable asset of the Summer Companies, and may not be misappropriated for Employee’s own use or benefit or for the use or benefit of any other third-party.  Accordingly, Employee hereby agrees that during Employee’s employment by Employer and for the period of twenty-four (24) months immediately after the Termination Date, Employee shall not, without the prior written consent of Employer, directly or indirectly, on Employee’s own behalf or on behalf of any other third-party: 

(A)call-on, solicit, divert, take away or attempt to call-on, solicit, divert, or take away any of the Partners (1) with whom or with which Employee had communications on Employer’s behalf about the Partner’s existing or potential business relationship with any of the Summer Companies with respect to the Businesses or provision of Services; (2) whose business dealings with the Summer Companies are or were managed or supervised by Employee as part of his duties for Employer; or (3) about whom or about which Employee obtained Confidential Information or Trade Secrets solely as a result of Employee’s employment with Employer or interaction or association with any other Affiliated Entity; or 

(B)interfere or engage in any conduct that would otherwise have the effect of interfering, in any manner with the business relationship between the Summer Companies and any of the Partners, including, but not limited to, urging or inducing, or attempting to urge or induce, any Partner to terminate its relationship with the Summer Companies or to cancel, withdraw, reduce, limit, or modify in any manner such Partner’s business or relationship with the Summer Companies. 

(ii)Employees.  Employee understands and agrees that the relationship between the Summer Companies and each of its employees constitutes a valuable asset of the Summer Companies and such assets may not be converted to Employee’s own use or benefit or for the use  

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or benefit of any other third-party.  Accordingly, Employee hereby agrees that during Employee’s employment with Employer or any other Affiliated Entity and for the period of twenty-four (24) months immediately after the Termination Date, Employee shall not, without Employer’s prior written consent, directly or indirectly, solicit or recruit for employment; attempt to solicit or recruit for employment; or attempt to hire or accept as an employee, consultant, contractor, or otherwise, any employee of any Affiliated Entity engaged in the Business or provision of Services; or unlawfully urge, encourage, induce, or attempt to urge, encourage, or induce any employee of any Affiliated Entity engaged in the Business or provision of Services to terminate his or her employment with such Affiliated Entity.

(c)Post-Termination Covenants by Employee. 

(i)Upon the termination of Employee’s employment hereunder, regardless of (A) the date, cause, or manner of the termination of Employee’s employment with Employer, (B) whether such termination occurs with or without Cause or is a result of Employee’s resignation, or (C) whether Employer provides severance benefits to Employee under this Agreement, Employee shall resign and does resign from all positions as an officer of the Summer Companies and from any other positions with the Summer Companies, with such resignations to be effective upon the Termination Date. 

(ii)From and after the Termination Date, Employee agrees not to make any statements to the Summer Companies’ employees, customers, vendors, or suppliers or to any public or media source, whether written or oral, regarding Employee’s employment hereunder or termination from Employer’s employment, except as may be approved in writing by an executive officer of Employer in advance.  Employee further agrees not to make any statement (including to any media source, or to the Summer Companies’ suppliers, customers or employees) or take any action that would disrupt, impair, embarrass, harm or affect adversely the Summer Companies or any of the employees, officers, directors, or customers of the Summer Companies or place the Summer Companies or such individuals in any negative light. 

(iii)From and after the Termination Date, Employee agrees to cooperate with and provide assistance to the Summer Companies and its legal counsel in connection with any litigation (including arbitration or administrative hearings) or investigation affecting the Summer Companies, in which, in the reasonable judgment of the Summer Companies’ counsel, Employee’s assistance or cooperation is needed.  Employee shall, when requested by the Summer Companies, provide truthful testimony or other assistance and shall travel at the Summer Companies’ request in order to fulfill this obligation.  In connection with such litigation or investigation, the Summer Companies shall attempt to accommodate Employee’s schedule, shall reimburse Employee (unless prohibited by law) for any actual loss of wages in connection therewith, shall provide Employee with reasonable notice in advance of the times in which Employee’s cooperation or assistance is needed, and shall reimburse Employee for any reasonable expenses incurred in connection with such matters. 

(d)Enforcement of Restrictive Covenants.  Notwithstanding any other provision of this Agreement, in the event of Employee’s actual or threatened breach of any provision of this Section 4, Employer shall be entitled to an injunction restraining Employee from such breach or threatened breach, without the requirement of posting any bond or the necessity of proof of actual damage, it being agreed that any breach or threatened breach of these restrictive covenants would cause immediate and irreparable injury to Employer and that money damages would not provide an adequate remedy to Employer.  Nothing herein shall be construed as prohibiting Employer from pursuing any other equitable or legal remedies for such breach or threatened breach, including the recovery of monetary damages from Employee.  The period of  

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any restriction set forth in this Section 4 shall be extended by any period of time that Employee is or has been found to be in breach of any provision in this Section 4. 

(e)Employee Acknowledgement.  Employee acknowledges and agrees that: 

(i)the restrictive covenants contained in this Agreement constitute material inducement to Employer entering into this Agreement and agreeing to employ Employee on the terms and conditions stated herein;  

(ii)the restrictive covenants contained in this Agreement are reasonable in time, territory, and scope, and in all other respects;  

(iii)should any part or provision of any covenant be held invalid, void, or unenforceable in any court of competent jurisdiction, such invalidity, voidness, or unenforceability shall not render invalid, void, or unenforceable any other part or provision of this Agreement; and  

(iv)if any portion of the foregoing provisions is found to be invalid or unenforceable by a court of competent jurisdiction because its duration, territory, definition of activities, or definition of information covered is considered to be invalid or unreasonable in scope, the invalid or unreasonable terms shall be redefined to carry out Employer’s and Employee’s intent in agreeing to these restrictive covenants. 

These restrictive covenants shall be construed as agreements independent of any other provision in this Agreement and the existence of any claim or cause of action of Employee against Employer, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by Employer of these restrictive covenants.

5.Employer’s Rights to Inventions and Other Intellectual Property.   

(a)Employee hereby assigns to Employer all of Employee’s rights, title, and interest (including, but not limited to all patent, trademarks, copyright, and trade secret rights) in and to all Work Product (as defined below) prepared or developed by Employee, made or conceived in whole or in part by Employee within the scope of Employee’s employment by Employer, or that involve the use of Confidential Information or Trade Secrets within six (6) months thereafter.  Employee further acknowledges and agrees that all copyrightable Work Product prepared by Employee within the scope of Employee’s employment by Employer are “works made for hire” and, consequently, that Employer owns all copyrights thereto.   

(b)Employee represents and warrants to Employer that all work that Employee performs for or has performed for Employer or any other Affiliated Entity, and all Work Product that Employee produces, which includes, but is not limited to, software, copyrights, trademarks, domain names, domain name registrations, documentation, memoranda, ideas, designs, inventions, processes, new developments or improvements, and algorithms (“Work Product”), will not knowingly infringe upon or violate any patent, copyright, trade secret, or other property right of Employee’s former employers or of any other third party.  Employee will not disclose to Employer or to the Summer Companies, or use in any of Employee’s Work Product, any confidential or proprietary information belonging to others, unless both the owner thereof and Employer have consented. 

(c)Notwithstanding the other provisions of this Section 5, Employee shall not be required to assign, transfer, or convey to Employer any of the rights, title, and interest Employee may have in any Work Product that Employee invents, discovers, originates, makes, or conceives during Employee’s employment by Employer if and only if (i) no equipment, supplies, facilities, Confidential Information, or Trade Secrets are used in the creation of the Work Product, (ii) the Work Product was developed entirely on Employee’s  

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own time, (iii) the Work Product does not relate directly to the Business or to the Summer Companies’ actual or demonstrably anticipated research or development, and (iv) the Work Product does not result in any way from any work performed by Employee for Employer.  

6.Dispute Resolution.  All disputes and controversies arising out of or in connection with this Agreement, Employee’s employment with the Employer or any Summer Company, or the transactions contemplated hereby shall be resolved exclusively by the state and federal courts located in the County of Harris, in the State of Texas, and each party hereto agrees to submit to the jurisdiction of said courts and agrees that venue shall lie exclusively with such courts.  Each party hereby irrevocably waives, to the fullest extent permitted by applicable law, any objection which such party may raise now, or hereafter have, to the laying of the venue of any such suit, action or proceeding brought in such a court and any claim that any such suit, action or proceeding brought in such a court has been brought in an inconvenient forum.  Each party agrees that, to the fullest extent permitted by applicable law, a final judgment in any such suit, action, or proceeding brought in such a court shall be conclusive and binding upon such party, and may be enforced in any court of the jurisdiction in which such party is or may be subject by a suit upon such judgment. 

7.No Conflict.  Employee represents and warrants that Employee is not subject to any agreement, instrument, order, judgment or decree of any kind, or any other restrictive agreement of any character, which would prevent Employee from entering into this Agreement or would conflict with the performance of Employee’s duties pursuant to this Agreement.  Employee represents and warrants that Employee will not engage in any activity, which would conflict with the performance of Employee’s duties pursuant to this Agreement. 

8.Notices.  Any notice, requests, demands and other communications to be given to a party in connection with this Agreement shall be in writing addressed to such party in person or at such party’s “Notice Address,” which shall initially be as set forth below:  

 

If to Employer:

SUMMER ENERGY HOLDINGS, INC.

800 Bering Drive, Suite 260

Houston, Texas 77057

Attn:  Board of Directors

 

with a copy to (which shall not constitute notice):

Kirton McConkie, PC
50 E. South Temple
Salt Lake City, Utah 84111
Attn: Alexander N. Pearson, Esq.

If to Employee:Travis Andrews
[address on file with Employer] 

A party’s Notice Address may be changed or supplemented from time to time by such party by notice thereof to the other party as herein provided.  Any such notice shall be deemed effectively given to and received by a party on the first to occur of (a) the date on which such notice is actually delivered (whether by mail, courier, hand delivery, electronic or facsimile transmission or otherwise) to such party’s Notice Address and addressed to such party, if such delivery occurs on a business day, or if such delivery occurs on a day which is not a business day, then on the next business day after the date of such delivery, (b) upon personal delivery to the party to be notified, or (c) the date on which such notice is actually received by such party (or, in the case 

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of a party that is not an individual, actually received by the individual designated in the Notice Address of such party).  For purposes of the preceding sentence, a “business day” is any day other than a Saturday, Sunday or U.S. federal public legal holiday.

9.Miscellaneous.  

(a)Waiver of Breach.  The waiver by either Party of a breach or violation of any provision of this Agreement shall not operate as, or be construed to be, a waiver of any subsequent breach of the same or other provision hereof.  The failure of either Party to insist, in any one or more instances, upon performance of any of the terms, conditions, or restrictive covenants contained in this Agreement shall not be construed as a waiver or a relinquishment of any right granted hereunder or of the future performance of any such term or condition, but the obligations of each Party with respect thereto shall continue in full force and effect. 

(b)Severability.  Any provision of this Agreement that is determined to be invalid or unenforceable by any court of competent jurisdiction will not affect the validity or enforceability of (i) any other provision hereof or (ii) the invalid or unenforceable provision in any other situation or in any other jurisdiction. Any provision of this Agreement held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable. 

(c)Assignability.  Except as otherwise provided herein, this Agreement shall inure to the benefit of and shall be binding upon Employee, his or her executor, administrators, heirs, and personal representatives and upon Employer and its successors and assigns.  The rights, obligations, and duties of Employee hereunder may be assigned by Employer to any successor or assign of Employer, and such successor or assign is expressly authorized to enforce all the terms and provisions of this Agreement, including without limitation the terms and provisions of Sections 3, 4 and 5 hereof.  Employee’s obligations under this Agreement shall not be assignable by Employee. 

(d)Choice of Law.  This Agreement shall be governed by the laws of the State of Texas without regard to its choice of law rules.    

(e)Amendments; Entire Agreement.  This Agreement (i) constitutes the entire agreement between the Parties with respect to the subject matter of this Agreement and (ii) supersedes all prior and contemporaneous agreements (whether written or oral and whether express or implied) between the Parties to the extent related to the subject matter of this Agreement.  No amendment of any provision of this Agreement will be valid unless the amendment is in writing and signed by Employer and Employee.  Without limiting the generality of the foregoing, the obligations under this Agreement with respect to any termination of employment of Employee, for whatever reason, supersede any severance or related obligations of Employer in any policy, plan or practice of Employer or any agreement between Employee and Employer. 

(f)Headings.  Section headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose. 

(g)Counterparts.  This Agreement may be executed by the Parties in multiple counterparts and shall be effective as of the Effective Date when each party shall have executed and delivered a counterpart hereof, whether or not the same counterpart is executed and delivered by each Party, and subject to the occurrence of the Closing.  When so executed and delivered, each such counterpart shall be deemed an original and all such counterparts shall be deemed one and the same document.  Transmission of images of signed signature pages by facsimile, e-mail or other electronic means shall have the same effect as the delivery in person of manually signed documents. 

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(h)Compliance with Section 409A.  This Agreement is intended to comply with Section 409A of Internal Revenue Code of 1986, as amended (“Section 409A”), to the extent applicable.  Notwithstanding any provision herein to the contrary, this Agreement shall be interpreted, operated and administered consistent with this intent.  Each separate installment under this Agreement shall be treated as a separate payment for purposes of determining whether such payment is subject to or exempt from compliance with the requirements of Section 409A.  In addition, in the event that Employee is a “specified employee” within the meaning of Section 409A (as determined in accordance with the methodology established by Employer as in effect on the date of termination of Employee’s employment hereunder), any payment or benefits hereunder that are nonqualified deferred compensation subject to the requirements of Section 409A shall be provided to Employee no earlier than six (6) months after the date of Employee’s “separation from service” within the meaning of Section 409A. 

[signatures follow on next page]

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IN WITNESS WHEREOF, Employer has caused this Employment Agreement to be executed by its duly authorized officer, and Employee has hereunto signed this Agreement, as of the Effective Date. 

“Employer”:

SUMMER ENERGY HOLDINGS, INC.

By: /s/ Neil Leibman

Name: Neil Leibman

Title: President and CEO

 

 

 

“Employee”:

/s/ Travis Andrews
Travis Andrews

[Summer Energy Holdings, Inc. Employment Agreement Signature Page]

4832-9116-5514.v2

EXHIBIT A

Employee:  Travis Andrews

Effective Date of Employment:  July 1, 2017

Position:  Chief Supply Officer

Compensation and Benefits:

1.Base Salary.  Employer will pay to Employee a base salary at an annual rate of $300,000 (the “Base Salary”), payable in accordance with Employer’s customary payroll practices as in effect from time to time.  The Base Salary shall be reviewed in a manner consistent with Employer’s compensation program. 

2.Bonuses; Additional Compensation.  Employee may be eligible to receive bonuses and to participate in incentive compensation plans of Employer in accordance with any plan or decision that the Board, or any committee or other person authorized by the Board, may in its sole discretion determine from time to time. 

3.Reimbursement of Expenses.  Employee shall be paid or reimbursed by Employer, in accordance with and subject to Employer’s general expense reimbursement policies and practices and Employer’s receipt of evidence of such expenses reasonably satisfactory to Employer, for all reasonable travel and other business expenses incurred by Employee in performing his obligations under this Agreement.  Further, Employer will pay for a mobile phone and mobile telephone usage charges on behalf of Employee.   

4.Benefits.  Employee shall be eligible to earn and accrue vacation in accordance with Employer’s policies in effect from time to time.  In addition, Employee shall be eligible to participate in Employer’s medical, vision and dental insurance programs, 401(k), and other employee benefit or welfare plan, program, or arrangement that Employer has or may from time to time establish or sponsor for the benefit of Employer’s employees, upon Employee meeting any qualifications for participation in such plan(s), program(s), or arrangement(s).  Employer will pay on behalf of Employee 100% of the health insurance premiums for Employee.   

5.Incentive Compensation.  

Employee shall, upon execution of this Agreement, be granted an option to purchase 200,000 shares of Employer’s common stock (the “Common Stock”) which option vests as follows: (i) as to the first 100,000 shares of Common Stock, on the first anniversary of the Effective Date and, (ii) as to the second 100,000 shares of Common Stock, on the second anniversary of the Effective Date, with a strike price equal to $1.50, unless the price per share of Common Stock as reported on the OTC Markets on the date such option is granted is greater than $1.50, in which case the strike price shall be equal to the price per share quoted on the OTC Markets on the date such option is granted, all pursuant to the terms of a Stock Option Grant Agreement by and between Employer and Employee. 

Restricted Territory: 

Pursuant to Section 4(a)(iii)(A), Employee is restricted from competing with Employer in the following states, in which Employer is providing Services or is presently qualified to do business, as of the Effective Date: 

Texas Retail Electric Provider market

4832-9116-5514.v2

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