Document:

Exhibit 10.7

 

Exhibit E

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement (this "Agreement"), dated as of ________ ___, 2015 is entered into among [New Sub], a Delaware corporation (the "Company"), CollabRx, Inc., a Delaware corporation ("Parent"), and Clifford Baron ("Employee").

 

WHEREAS, Employee is the Vice President and Chief Operating Officer of the Company;

 

WHEREAS, the Company is a wholly owned subsidiary of Parent; and

 

WHEREAS, the Company desires to employ and retain the services of Employee, and Employee wishes to be employed by the Company, on the terms set forth in this Agreement;

 

NOW, THEREFORE, in consideration of the promises and the mutual covenants set forth in this Agreement, the undersigned agree as follows:

 

1.             Term of Employment. Subject to the termination provisions hereinafter set forth, the Company will employ the Employee, and the Employee accepts employment with the Company, for a period of two years from the date of this Agreement (the "Initial Term"). The Initial Term shall be automatically renewed for successive one year periods ("Successive Terms") unless either party gives ninety (90) calendar days written notice of nonrenewal prior to the expiration of the then-current term (the Initial Term and any Successive Term are jointly referred to herein as the "Term").  Notwithstanding the above, or anything else provided herein, the Employee shall be an at-will employee, serving at the pleasure and direction of the Company's Chief Executive Officer (the "CEO"). Accordingly, either party may terminate the employment relationship at any time for any reason, subject, however, to the notice and any payment requirements set forth herein.

 

2.             Duties. During the Term, the Employee will serve as Vice President and Chief Operating Officer, reporting to the CEO. The Employee will discharge such duties and responsibilities as are customary for such position or are prescribed from time to time by the Company. The Employee will devote his full time and attention to the affairs of the Company and will not enter the employ of or serve as a consultant to, or in any way perform any services for, with or without compensation, any other person, business or organization without the prior approval of the CEO.

 

3.             Maintaining Confidential Information/Property Rights. The Employee agrees to sign and abide by all Company policies regarding confidential information and ethics including, but not limited to the Confidential & Proprietary Information and Intellectual Property/Property Rights policy, as attached hereto as Exhibit A.

 

4.             Non-Competition; Non-Solicitation. During the Term and for six (6) months following the termination of Employee's employment with the Company for any reason, the Employee shall not, directly or indirectly:

 

(a)          own, manage, operate, advise, consult, join, control or participate in the ownership, management, operation or control of, be employed by, perform services for, or be connected in any manner with, any enterprise which is engaged in utilizing an expert-based content aggregate strategy to create and distribute (through web-based or mobile applications or other means) high-value information (including, without limitation, information relating to diagnostic tests, clinical trials, drugs, and other therapies that may be correlated to genetic profiles, individually or by population) to patients, physicians and researchers for the purpose of assisting decision-making or planning therapies to treat diseases in the United States, Europe and Asia; provided, however, that such restriction shall not apply to Employee's ownership of any passive investment representing an interest of less than five percent (5%) of an outstanding class of publicly traded securities; or

 

(b)          recruit, encourage or solicit any person who is an employee or contractor of the Company or any entity affiliated with the Company (each, an "Affiliated Entity") to leave the Company's or Affiliated Entity's employ or service for any reason, or interfere in any material manner with employment or service relationships at the time existing between the Company or Affiliated Entity and the subject employee or contractor (except as may be required in any bona fide termination decision during the Term regarding any Company or Affiliated Entity employee) in order to induce such employee or contractor of the Company or any Affiliated Entity to accept other employment or a consulting agreement with any other person or entity.

 

The Employee acknowledges that the services that he shall provide to the Company under this Agreement are unique and that irreparable harm shall be suffered by the Company in the event of the breach by the Employee of any of his obligations under this Section 4, and that the Company shall be entitled, in addition to its other rights and remedies, whether legal or equitable, to enforce such obligations by an injunction or decree of specific performance. If any restriction set forth in this non-competition section is found by a court to be unreasonable, then the Employee agrees, and hereby submits, to the reduction and limitation of such prohibition to such area or period as shall be deemed reasonable by such court. In addition, if the Employee breaches this Section 4 during the Severance Period, the Company's obligation to continue to make payments to the Employee pursuant to Sections 8(a), (b) or (c) shall cease immediately.

 

5.             Salary and Incentives.

 

(a)          Salary. During the Term, the Company will pay the Employee an annual salary of two hundred thousand dollars ($200,000) (the "Base Salary"), subject to applicable tax withholding and payable in accordance with the Company's normal payroll practices. During the Term, the CEO shall review the Employee' Base Salary on an annual basis and, in his discretion, may award merit increases of Employee's Base Salary in accordance with Company policy. The Employee's Base Salary may also be reduced during the Term, consistent with across-the-board salary reductions made with respect to similarly situated employees of the Company and Parent

 

(b)          Incentive Payments. Employee will be eligible to receive incentive bonus payments from time to time in accordance with any incentive bonus program adopted by the Company or Parent. For the avoidance of doubt, Employee acknowledges that no such incentive bonus program is currently in effect.

 

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(c)            Expenses. The Company will reimburse the Employee for all reasonable travel, entertainment and miscellaneous expenses actually and necessarily incurred in connection with the performance of his duties under this Agreement, provided that the Employee's expenses are in accordance with the Company's and/or Parent’s current practices and that the Employee properly accounts for such expenses. Any amounts payable under this Section 5(c) shall be made in accordance with Treasury Regulation Section 1.409A-3(i)(1)(iv) and shall be paid on or before the last day of the Employee's taxable year following the taxable year in which the Employee incurred the expenses. The amounts provided under this Section 5(c) during any taxable year of Employee's will not affect such amounts provided in any other taxable year of the Employee's, and the Employee's right to reimbursement for such amounts shall not be subject to liquidation or exchange for any other benefit.

 

6.             Benefits. The Employee will be entitled during the Term to participate in any vacation, health, pension, insurance or other benefit plan that is maintained by the Company or Parent for its employees (or its subsidiaries’) and/or executives to the extent and in the manner prescribed by the applicable plan documents.

 

7.             Long-term Incentives. The Employee will be eligible to receive annual long-term equity incentive awards from time to time in accordance with the terms and conditions of long-term equity incentive compensation plans and programs as in effect from time to time as recommended by the CEO and approved by Parent’s Board of Directors. Any long-term incentive grants shall be subject to the terms and conditions, including any vesting conditions, as recommended by the CEO and approved by Parent’s Board of Directors in their sole discretion.

 

8.             Termination.

 

(a)         Termination by the Company Without Cause. The Company may terminate the Employee's employment under this Agreement without Cause at any time with ninety (90) calendar days’ prior written notice. However, in the event of the Employee's Separation from Service (as defined in Section 9(a) below) as a result of the Employee's termination by the Company without Cause, and subject to the provisions of Section 9 below, the Company agrees that it will provide Employee with all accrued compensation, wages and benefits through the effective date of termination and pay and/or provide to the Employee the following:

 

(i)      an amount equal to one half (1/2) times the Employee's then-prevailing Base Salary; plus

 

(ii)     six (6) months of COBRA premiums for Employee paid for by the Company (with any such payments to be treated as taxable compensation to the extent necessary to comply with Section 105(h) of the Internal Revenue Code) pursuant to the Consolidated Omnibus Budget Reconciliation Act ("COBRA"), provided that Employee is eligible for COBRA benefits and timely completes all documentation necessary to receive COBRA benefits; plus

 

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(iii)    if (x) the effective date of termination is on or before the first anniversary of the date of this Agreement and (y) Employee holds any outstanding long-term incentive awards (including, without limitation, stock options, stock appreciation rights, phantom shares, restricted stock or similar awards) that are not fully vested and, if applicable, exercisable with respect to all the shares subject thereto effective immediately prior to the date of termination, then Parent shall cause the portion of such outstanding and unvested long-term incentive awards that would otherwise become vested and exercisable in the twelve (12) months following the effective date of termination to become fully vested and, if applicable, exercisable effective immediately prior to the date of termination, and Employee shall have ninety (90) days to exercise any stock options that vest pursuant to this Section. In all other respects, such awards will continue to be subject to the terms and conditions of the plans, if any, under which they were granted and any applicable agreements between Parent and the Employee.

 

(iv)   if (x) the effective date of termination after the first anniversary of the date of this Agreement and (y) Employee holds any outstanding long-term incentive awards (including, without limitation, stock options, stock appreciation rights, phantom shares, restricted stock or similar awards) that are not fully vested and, if applicable, exercisable with respect to all the shares subject thereto effective immediately prior to the date of termination, then Parent shall cause the portion of such outstanding and unvested long-term incentive awards that would otherwise become vested and exercisable in the twenty-four (24) months following the effective date of termination to become fully vested and, if applicable, exercisable effective immediately prior to the date of termination, and Employee shall have ninety (90) days to exercise any stock options that vest pursuant to this Section. In all other respects, such awards will continue to be subject to the terms and conditions of the plans, if any, under which they were granted and any applicable agreements between Parent and the Employee.

 

The amounts described in clause (i) and (ii) shall be paid in two equal lump sum installments, subject to applicable tax withholding, with the first installment to be made within sixty (60) days following the date of the Employee's Separation from Service and the second installment to be made on the six month anniversary the Employee's Separation from Service (the "Severance Period"). For purposes of Section 409A of the Internal Revenue Code of 1986, as amended (the "Code") (including, without limitation, for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)), the Employee's right to receive the foregoing installment payments shall be treated as a right to receive a series of separate payments and, accordingly, each installment payment shall at all times be considered a separate and distinct payment. Notwithstanding any provision to the contrary in this Agreement, no amount shall be paid pursuant to this Section 8(a) unless, on or prior to the fifty-fifth (55th) day following the date of the Employee's Separation from Service, the Employee has executed an effective waiver and release of claims agreement (the "Release") in form and substance acceptable to the Company and any applicable revocation period has expired.

 

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(b)         Termination by Employee for Good Reason. The Employee may voluntarily elect to resign his employment with the Company prior to the end of the Term for Good Reason (as hereinafter defined) upon giving the Company ninety (90) calendar days' advance notice in writing of such termination. In the event of the Employee's Separation from Service for Good Reason, and subject to the provisions of Section 9 below, the Employee shall be entitled to receive the payments or benefits set forth in Section 8(a) as if such Separation from Service was as a result of the Employee's termination by the Company without Cause. "Good Reason" shall mean any of the following that are undertaken without the Employee's express written consent: (i) the assignment to the Employee of principal duties or responsibilities, or the substantial reduction of the Employee's duties and responsibilities, either of which is materially inconsistent with the Employee's position as Vice President and Chief Operating Officer of the Company; (ii) a material reduction by the Company in the Employee's annual Base Salary, except to the extent the salaries of other executive employees of the Company, Parent and any other controlled subsidiary of Parent are similarly reduced; (iii) the Employee's principal place of business is, without his consent, relocated by a distance of more than fifty (50) miles from the center of San Francisco and (iv) any material breach by the Company or Parent of any provision of this Agreement.

 

The Employee must provide written notice to the Company of the occurrence of any of the foregoing events or conditions without the Employee's written consent within ninety (90) days of the occurrence of such event. The Company shall have a period of thirty (30) days to cure such event or condition after receipt of written notice of such event from the Employee. Any Separation from Service by reason of the Employee's resignation for Good Reason following such thirty (30) day cure period must occur no later than the date that is six (6) months following the initial occurrence of one of the foregoing events or conditions without Employee's written consent. The Employee's Separation from Service by reason of his resignation for Good Reason shall be treated as involuntary.

 

(c)          Termination in Connection With a Change in Control. In the event of the Employee's Separation from Service as a result of his termination by the Company without Cause or his resignation for Good Reason within three (3) months before or twelve (12) months following a "change of control" (as hereinafter defined), in lieu of any amounts payable under Sections 8(a) or (b), and subject to the provisions of Section 9 below, the Company agrees that it will pay the Employee a lump sum amount equal to the sum of:

 

(i)      an amount equal to one (1) times the Employee's then-prevailing Base Salary; plus

 

(ii)    twelve (12) months of COBRA premiums for Employee paid for by the Company or Parent (with any such payments to be treated as taxable compensation to the extent necessary to comply with Section 105(h) of the Internal Revenue Code) pursuant to COBRA, provided that Employee is eligible for COBRA benefits and timely completes all documentation necessary to receive COBRA benefits.

 

The amounts described in clauses (i) and (ii) above shall be paid in a lump sum within sixty (60) days following the Employee's Separation of Service. Notwithstanding any provision to the contrary in this Agreement, no amount shall be paid pursuant to this Section 8(c) unless, on or prior to the fifty-fifth (55th) day following the date of the Employee's Separation from Service, the Employee has executed an effective Release in form and substance acceptable to the Company and any applicable revocation period has expired.

 

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In addition, and notwithstanding any provision to the contrary in any long-term incentive award agreement or long-term incentive compensation plan, in the event of the Employee's Separation from Service as a result of his termination by the Company without Cause or his resignation for Good Reason within three (3) months before or twelve (12) months following a "change of control," Parent shall cause all outstanding long-term incentive awards then held by the Employee (including, without limitation, stock options, stock appreciation rights, phantom shares, restricted stock or similar awards) to become fully vested and, if applicable, exercisable with respect to all the shares subject thereto effective immediately prior to the date of termination, and Employee shall have ninety (90) days to exercise any stock options that vest pursuant to this Section. In all other respects, such awards will continue to be subject to the terms and conditions of the plans, if any, under which they were granted and any applicable agreements between Parent and the Employee.

 

A "change of control" shall mean and include each of the following:

 

(i)      A transaction or series of transactions (other than an offering of Parent’s common stock to the general public through a registration statement filed with the Securities and Exchange Commission) whereby any "person" or related "group" of "persons" (as such terms are used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended (the "Exchange Act")) (other than Parent, the Company, or any of their subsidiaries, an employee benefit plan maintained by Parent, the Company or any of their subsidiaries or a "person" that, prior to such transaction, directly or indirectly controls, is controlled by, or is under common control with, Parent or the Company) directly or indirectly acquires beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of securities of Parent or the Company possessing more than fifty percent (50%) of the total combined voting power of Parent’s or the Company's securities outstanding immediately after such acquisition, as applicable; or

 

(ii)      During any period of two consecutive years, individuals who, at the beginning of such period, constitute the Board of Directors of Parent together with any new director(s) (other than a director designated by a person who shall have entered into an agreement with the Company or Parent to effect a transaction described in clause (i) above or clause (iii) below whose election by the Board of Directors of Parent or nomination for election by Parent’s stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the two-year period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority thereof; or

 

(iii)      The consummation by Parent (whether directly involving Parent or indirectly involving Parent through one or more intermediaries) of (x) a merger, consolidation, reorganization, or business combination or (y) a sale or other disposition of all or substantially all of Parent’s or the Company's assets in any single transaction or series of related transactions or (z) the acquisition of assets or stock of another entity, in each case other than a transaction:

 

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(A)      Which results in Parent’s voting securities outstanding immediately before the transaction continuing to represent (either by remaining outstanding or by being converted into voting securities of Parent or the person that, as a result of the transaction, controls, directly or indirectly, Parent or owns, directly or indirectly, all or substantially all of Parent’s assets or otherwise succeeds to the business of Parent (Parent or such person, the "Successor Entity")) directly or indirectly, at least a majority of the combined voting power of the Successor Entity's outstanding voting securities immediately after the transaction, and

 

(B)    After which no person or group beneficially owns voting securities representing fifty percent (50%) or more of the combined voting power of the Successor Entity; provided, however, that no person or group shall be treated for purposes of this clause (B) as beneficially owning fifty percent (50%) or more of combined voting power of the Successor Entity solely as a result of the voting power held in Parent prior to the consummation of the transaction; or

 

(iv)   The Company's stockholders approve a liquidation or dissolution of the Company.

 

(d)           Termination by the Company for Cause. Subject to the forty-five (45) day cure period, if applicable, set forth in this Section 8(d), the Company may immediately terminate the Employee's employment at any time for Cause by giving written notice to the Employee specifying in reasonable detail the reason for such termination. Upon any such termination for Cause, Employee shall be entitled to payment of all accrued and unpaid compensation and wages, but Employee shall have no right to compensation or benefits for any period subsequent to the effective date of termination. For the purposes of this Agreement, "Cause" shall mean: the Employee willfully engages in an act or omission which is in bad faith and to the detriment of the Company, engages in misconduct, gross negligence, or willful malfeasance, in each case that causes material harm to the Company, breaches this Agreement in any material respect, habitually neglects or materially fails to perform his duties (other than any such failure resulting solely from the Employee's physical or mental disability or incapacity) after a written demand for substantial performance is delivered to the Employee which identifies the manner in which the Company believes that the Employee has not performed the Employee's duties, commits or is convicted of a felony or any crime involving moral turpitude, uses drugs or alcohol in a way that either interferes with the performance of his duties or compromises the integrity or reputation of the Company, or engages in any act of dishonesty involving the Company, disclosure of Company confidential information not required by the duties of the Employee, commercial bribery, or perpetration of fraud; provided, however, that the Employee shall have at least forty-five (45) calendar days to cure, if curable, any of the events which could lead to the Employee's termination for Cause.

 

(e)            Termination by Death or Disability. In the event that the Employee dies or has a Separation from Service as a result of his Disability, he (or his heirs or estate) shall be entitled to receive any unpaid accrued compensation and wages and shall not be entitled to receive any severance payments hereunder.

 

(f)            Termination by Employee Without Good Reason. The Employee may terminate his employment under this Agreement without Good Reason at any time by giving written notice to the Company. Such termination will become effective upon the date specified in such notice, provided that such date is at least ninety (90) calendar days after the date of delivery of the notice. Upon any such termination, the Company shall be relieved of all of its obligations under this Agreement, except for payment of all accrued compensation and wages and the provision of benefits through the effective date of termination, and the Company may, in its sole discretion, cause the termination to become effective sooner than such ninety (90) day notice period.

 

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(g)            Notice of Non-Renewal.  For the avoidance of doubt, any notice of nonrenewal of a Successive Term provided by the Company pursuant to Section 1 of this Agreement shall constitute termination of Employee by the Company without Cause during a Successive Term; provided, however, that any notice of nonrenewal given by the Company within three (3) months before or twelve (12) months after a “change of control” shall constitute termination of Employee by the Company without Cause for purposes of Section 8(c) hereof.

 

9.            Limitations on Payment.

 

(a)            Payment Delay. Notwithstanding anything herein to the contrary, to the extent any payments to the Employee pursuant to Section 8 are treated as non-qualified deferred compensation subject to Section 409A of the Code, then (i) no amount shall be payable pursuant to such section unless the Employee's termination of employment constitutes a "separation from service" with the Company (as such term is defined in Treasury Regulation Section 1.409A-1(h) and any successor provision thereto) (a "Separation from Service"), and (ii) if the Employee, at the time of his Separation from Service, is determined by the Company to be a "specified employee" for purposes of Section 409A(a)(2)(B)(i) of the Code and the Company determines that delayed commencement of any portion of the termination benefits payable to the Employee pursuant to this Agreement is required in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code (any such delayed commencement, a "Payment Delay"), then such portion of the Employee's termination benefits described in Section 8 shall not be provided to the Employee prior to the earlier of (A) the expiration of the six-month period measured from the date of the Employee's Separation from Service, (B) the date of the Employee's death or (C) such earlier date as is permitted under Section 409A. Upon the expiration of the applicable Code Section 409A(a)(2)(B)(i) deferral period, all payments deferred pursuant to a Payment Delay shall be paid in a lump sum to the Employee within thirty (30) days following such expiration, and any remaining payments due under the Agreement shall be paid as otherwise provided herein. The determination of whether the Employee is a "specified employee" for purposes of Section 409A(a)(2)(B)(i) of the Code as of the time of his Separation from Service shall be made by the Company in accordance with the terms of Section 409A of the Code and applicable guidance thereunder (including without limitation Treasury Regulation Section 1.409A-1(i) and any successor provision thereto).

 

(b)            Exceptions to Payment Delay. Notwithstanding Section 9(a), to the maximum extent permitted by applicable law, amounts payable to the Employee pursuant to Section 8 shall be made in reliance upon Treasury Regulation Section 1.409A-1(b)(9) (with respect to separation pay plans) or Treasury Regulation Section 1.409A-1(b)(4) (with respect to short-term deferrals). Accordingly, the severance payments provided for in Section 8 may not be intended to provide for any deferral of compensation subject to Section 409A of the Code to the extent (i) the severance payments payable pursuant to Section 8, by their terms and determined as of the date of the Employee's Separation from Service, may not be made later than the fifteenth (15th) day of the third calendar month following the later of (A) the end of the Company's fiscal year in which the Employee's Separation from Service occurs or (B) the end of the calendar year in which the Employee's Separation from Service occurs, or (ii) (A) such severance payments do not exceed an amount equal to two times the lesser of (1) the amount of Employee's annualized compensation based upon the Employee's annual rate of pay for the calendar year immediately preceding the calendar year in which the Employee's Separation from Service occurs (adjusted for any increase during the calendar year in which such Separation from Service occurs that would be expected to continue indefinitely had the Employee remained employed with the Company) or (2) the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) for the calendar year in which the Employee's Separation from Service occurs, and (B) such severance payments shall be completed no later than December 31 of the second calendar year following the calendar year in which the Employee's Separation from Service occurs. Moreover, the COBRA premium payments contemplated under Section 8 are intended to be exempt from Section 409A of the Code pursuant to Treasury Regulation Section 1.409A-1(b)(9)(v) as direct service recipient payments for medical benefits.

 

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(c)            Interpretation. To the extent the payments and benefits under this Agreement are subject to Section 409A of the Code, this Agreement shall be interpreted, construed and administered in a manner that satisfies the requirements of Sections 409A(a)(2), (3) and (4) of the Code and the Treasury Regulations thereunder (and any applicable transition relief under Section 409A of the Code).

 

(d)            Parachute Payments. Notwithstanding anything contained in this Agreement to the contrary, to the extent that payments and benefits provided under this Agreement or otherwise (including the acceleration of vesting of equity awards) to the Employee (such payments or benefits are collectively referred to as the "Payments") would be subject to the excise tax (the "Excise Tax") imposed under Section 4999 of the Code, the Payments shall be reduced (but not below zero) to the extent necessary so that no Payment to be made or benefit to be provided to the Employee shall be subject to the Excise Tax, but only if, by reason of such reduction, the net after-tax benefit received by such the Employee shall exceed the net after-tax benefit received by him if no such reduction was made. For purposes of this Section 9(d), "net after-tax benefit" shall mean (i) the Payments which the Employee receives or is then entitled to receive from the Company or Parent that would constitute "parachute payments" within the meaning of Section 280G of the Code, less (ii) the amount of all federal, state and local income taxes payable with respect to the foregoing calculated at the maximum marginal income tax rate for each year in which the foregoing shall be paid to the Employee (based on the rate in effect for such year as set forth in the Code as in effect at the time of the first payment of the foregoing), less (iii) the amount of excise taxes imposed with respect to the payments and benefits described in (i) above by Section 4999 of the Code. The foregoing determination will be made by a nationally recognized accounting firm (the "Accounting Firm") selected by the Employee and reasonably acceptable to the Company (which may be, but will not be required to be, the Company's or Parent’s independent auditors). The Company will direct the Accounting Firm to submit its determination and detailed supporting calculations to both the affected Employee and the Company within fifteen (15) calendar days after the Employee's date of Separation from Service. If the Accounting Firm determines that such reduction is required by this Section 9(d), and no Payment constitutes non-qualified deferred compensation that is subject to Section 409A of the Code, the Employee, in the Employee's sole and absolute discretion, may determine which Payments shall be reduced to the extent necessary so that no portion thereof shall be subject to the excise tax imposed by Section 4999 of the Code, and the Company shall pay such reduced amount to him. If the Accounting Firm determines that a reduction is required by this Section 9(d), and any Payment constitutes a "deferral of compensation" within the meaning of Section 409A of the Code, then the Payments shall be reduced in the following order: (a) reduction in the cash severance payments described herein (with such reduction being applied to the payments in the reverse order in which they would otherwise be made, that is, later payments shall be reduced before earlier payments); (b) reduction in any other cash payments payable to the Employee (with such reduction being applied to the payments in the reverse order in which they would otherwise be made, that is, later payments shall be reduced before earlier payments); (c) cancellation of acceleration of vesting on any equity awards for which the exercise price exceeds the then fair market value of the underlying equity; and (d) cancellation of acceleration of vesting of equity awards not covered under (c) above; provided, however that in the event that acceleration of vesting of equity awards is to be cancelled, such acceleration of vesting shall be cancelled in the reverse order of the date of grant of such equity awards, that is, later equity awards shall be canceled before earlier equity awards.

 

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10.           Arbitration.

 

The Employee, Parent and the Company agree to submit any and all disputes, controversies, or claims between them based upon, relating to, or arising from the Employee's employment by the Company or the terms of this Agreement (other than workers' compensation claims) to final and binding arbitration before a single neutral arbitrator in San Francisco, California. Subject to the terms of this paragraph, the arbitration proceedings shall be initiated in accordance with, and governed by, the National Rules for the Resolution of Employment Disputes ("Rules") of the American Arbitration Association ("AAA"). The arbitrator shall be appointed by agreement of the parties hereto or, if no agreement can be reached, by the AAA pursuant to its Rules. Notwithstanding the Rules, the parties may take discovery in accordance with Sections 1283.05(a)-(d) of the California Code of Civil Procedure (but not subject to the restrictions of Section 1283.05(e)), and prior to the arbitration hearing the parties may file, and the arbitrator shall rule on, pre-trial motions such as demurrers and motions for summary judgment (applying the procedural standard embodied in Rule 56 of the Federal Rules of Civil Procedure). The time for filing such motions shall be determined by the arbitrator. The arbitrator will rule on all pre-trial motions at least ten (10) business days prior to the scheduled hearing date. Arbitration may be compelled, the arbitration award shall be enforced, and judgment thereon shall be entered, pursuant to the California Arbitration Act (Code of Civil Procedure §§ 1280 et seq.). The prevailing party in any such arbitration shall be entitled to recover from the other, and the arbitrator is instructed to award to the prevailing party, an amount equal to the reasonable attorneys' fees and costs (including expert witness fees) incurred in connection with the arbitration, except that the Company shall bear AAA's administrative fees and the arbitrator's fees and costs. If any party is required to compel arbitration of a dispute governed by this paragraph, the party prevailing in that proceeding shall be entitled to recover from the other party its reasonable costs and attorneys' fees and expenses incurred to compel arbitration; provided, however, that the prevailing party shall be reimbursed for such fees, costs and expenses within forty-five (45) days following any such award, but in no event later than the last day of the Employee's taxable year following the taxable year in which the fees, costs and expenses were incurred; provided, further, that the parties' obligations pursuant to this sentence shall terminate on the tenth (10th) anniversary of the date of the Employee's termination of employment. This paragraph is intended to be the exclusive method for resolving any and all claims by the parties against each other for payment of damages under this Agreement or relating to the Employee's employment; provided, however, that neither this Agreement nor the submission to arbitration shall limit the parties' right to seek provisional relief, including without limitation injunctive relief, in any court of competent jurisdiction. Employee, Parent and the Company expressly waive their right to a jury trial. This paragraph shall survive the expiration or termination of this Agreement. If any part of this paragraph is found to be void as a matter of law or public policy, the remainder of the paragraph will continue to be in full force and effect.

 

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11.            Miscellaneous.

 

(a)            Assignment. The rights and obligations of the parties under this Agreement shall inure to the benefit of and be binding upon their respective successors and assigns. The Employee agrees that the Company may assign its rights and obligations under this Agreement to any successor-in-interest or Parent. The Employee may assign his rights and obligations hereunder only with the express written consent of the Company, except that the rights under this Agreement shall inure to the benefit of the Employee's heirs or assigns in the event of his death. Except as expressly provided in this paragraph, no party may assign its/his rights and obligations hereunder; and any attempt to do so will be void.

 

(b)           Severability. If any provision of this Agreement otherwise is deemed to be invalid or unenforceable or is prohibited by the laws of the state or jurisdiction where it is to be performed, this Agreement shall be considered divisible as to such provision, such provision shall be replaced by a provision that is valid and enforceable and that as closely as possible reflects the parties' intent with respect to such provision and such provision shall be inoperative in such state or jurisdiction and shall not be part of the consideration moving from any of the parties to any other. The remaining provisions of this Agreement shall be valid and binding and of like effect as though such provision was not included.

 

(c)            Notice. Notices given pursuant to the provisions of this Agreement shall be delivered personally or sent by certified mail, postage pre-paid, or by overnight courier, or by fax, if to the Company or Parent, to the Company's then-current business address or, in the event the notice is to the Employee, to the address that Employee has represented to the Company as current.

 

(d)            Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of California, without giving effect to the conflict of laws rules thereof.

 

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(e)            Waiver; Amendment. The waiver by any party to this Agreement of a breach of any provision hereof by any other party shall not be construed as a waiver of any subsequent breach. No provision of this Agreement may be terminated, amended, supplemented, waived or modified other than by an instrument in writing, signed by the party against whom the enforcement of the termination, amendment, supplement, waiver or modification is sought. If the Employee and the Company determine that any payments or benefits payable under this Agreement intended to comply with Sections 409A(a)(2), (3) and (4) of the Code do not comply with Section 409A of the Code, the parties agree to amend this Agreement, or take such other actions as the parties deem reasonably necessary or appropriate, to comply with the requirements of Section 409A of the Code, the Treasury Regulations thereunder (and any applicable transition relief) while preserving the economic agreement of the parties. If any provision of the Agreement would cause such payments or benefits to fail to so comply, such provision shall not be effective and shall be null and void with respect to such payments or benefits, and such provision shall otherwise remain in full force and effect.

 

(f)      Entire Agreement. This Agreement represents the entire agreement among the parties with respect to the subject matter of this Agreement and supersedes any previous agreement or understanding, including, without limitation, the Employment Agreement, dated as of March 5, 2014, between the Employee and Parent.

 

(g)     Execution in Counterparts. This Agreement may be executed in counterparts with the same force and effectiveness as though executed as a single document.

 

(Signature Page Follows)

 

12

IN WITNESS WHEREOF, the parties have executed this Agreement as  of the day and year first written above.

 

		EMPLOYEE
	 	
	 	 
	 	
Clifford Baron

	 	 	
	 	
[NEW SUB]

	 	 	
	 	
By: 

	
	 	 	
	 	
COLLABRX, INC.

	 	 	
	 	
By:

	

 

13

Execution Version

 

EXHIBIT A

 

CONFIDENTIAL & PROPRIETARY INFORMATION AND INTELLECTUAL PROPERTY/PROPERTY RIGHTS POLICY

 

[ATTACHED]

 

 

14Exhibit 10.1

 

EXECUTION VERSION

 

AMENDED AND RESTATED FUND ADMINISTRATION
SERVICING AGREEMENT

 

THIS AGREEMENT is
made and entered into as of this 13th day of April, 2015, by and between BUSINESS DEVELOPMENT CORPORATION OF AMERICA,
a Maryland corporation (the “Fund”), and US Bancorp Fund Services, LLC, a Wisconsin limited liability company (“USBFS”).

 

WHEREAS, the Fund
is a non-diversified, closed-end management investment company that has been elected to be treated as a business development company
under the Investment Company Act of 1940, as amended (the “1940 Act”);

 

WHEREAS, USBFS is,
among other things, in the business of providing fund administration services for the benefit of its customers; and

 

WHEREAS, the Fund
has retained USBFS to provide fund administration services to the Fund pursuant to a certain Fund Administration Servicing Agreement
dated as of March 18, 2011 (the “Prior Agreement”); and

 

WHEREAS, the Fund
and USBFS desire to amend and restate the Prior Agreement as set forth herein.

 

NOW, THEREFORE, in
consideration of the promises and mutual covenants herein contained, and other good and valuable consideration, the receipt of
which is hereby acknowledged, the parties hereto, intending to be legally bound, do hereby agree as follows:

 

		1.	Appointment of USBFS as Administrator

 

The Fund hereby appoints USBFS
as administrator of the Fund on the terms and conditions set forth in this Agreement, and USBFS hereby accepts such appointment
and agrees to perform the services and duties set forth in this Agreement.

 

		2.	Services and Duties of USBFS

 

USBFS shall provide the following
fund administration services to the Fund:

 

		A.	General Fund Management:

 

		(1)	Act as liaison among all Fund service providers to the extent requested by the Fund.

 

		(2)	Audits:

 

		a.	Prepare appropriate schedules and assist independent auditors.

 

		b.	Provide information to the Securities Exchange Commission (the “SEC”) and facilitate audit process.

 

    	1

    	 

    

 

		c.	Provide office facilities.

 

		B.	Compliance:

 

		(1)	Regulatory and Internal Revenue Service (the “IRS”) Compliance:

 

		a.	Monitor compliance with the 1940 Act requirements and the Fund’s status as a regulated investment company under
                                                                                                   Subchapter M, including:

 

		i.	Maintenance of books and records under Rule 31a-3.

 

		ii.	IRC Section 851 - 90% Qualifying income

 

		iii.	IRC Section 851 - Fund Diversification

 

		iv.	SEC Section 12(d) –Investment Restrictions

 

		v.	SEC Section 55(a) - 70% Eligible Assets Requirement

 

		vi.	SEC Section 61(a) – Asset Coverage Requirement

 

		(2)	Maintain awareness of applicable regulatory and operational service issues.

 

		C.	SEC Registration and Reporting:

 

		(1)	Prepare financial statements for inclusion into Form 10Q, Form 10K and Form 8K filings.

 

		D.	SEC Inspections:

 

		(1)	Assist in producing materials requested by the SEC.

 

		(2)	Maintain records of all materials produced as requested by the SEC.

 

		E.	Financial Reporting:

 

		(1)	Supervise the Fund’s custodian and fund accountants in the maintenance of the Fund’s general ledger and in the
preparation of the Fund’s financial statements, including oversight of expense payments, of the determination of net asset
value of the Fund’s net assets and of the Fund’s shares, and of the declaration and payment of dividends and other
distributions to shareholders.

 

		(2)	Compute the total return and expense ratio of the Fund and the Fund’s portfolio turnover rate.

 

    	2

    	 

    

 

		(3)	Prepare monthly financial reports, which include without limitation the following items:

 

		a.	Schedule of Investments.

 

		b.	Consolidated Balance Sheet.

 

		c.	Statement of Operations.

 

		d.	Statement of Changes in Net Assets.

 

		(4)	Prepare quarterly financial statements, which include without limitation the following items:

 

		a.	Schedule of Investments.

 

		b.	Consolidated Balance Sheet.

 

		c.	Statement of Operations.

 

		d.	Statement of Changes in Net Assets.

 

		e.	Statement of Cash Flows.

 

		f.	Tax Footnote to be updated on an annual basis.

 

		(5)	Prepare monthly Balance Sheet Score Cards.

 

		(6)	Coordinate certification requirements pursuant to the Sarbanes-Oxley Act of 2002 (the “SOX Act”).

 

		(7)	Compute Total return calculations for market and net asset value.

 

		3.	Compensation

 

USBFS shall be compensated for
providing the services set forth in this Agreement as follows. Prior to the date Business Development Corporation of America II
(“BDCA II”) meets its “minimum offering requirement” (as that term is used in BDCA II’s prospectus
dated September 8, 2014 as filed with the U.S. Securities and Exchange Commission), USBFS shall be compensated for providing the
services set forth in this Agreement in accordance with the fee schedule set forth on Exhibit A of the Prior Agreement. Once BDCA
II has met its minimum offering requirement, USBFS shall be compensated for providing the services set forth in this Agreement
in accordance with the fee schedule set forth on Exhibit A hereto (as amended from time to time). The Fund shall pay all
fees and reimbursable expenses within thirty (30) calendar days following receipt of the billing notice, except for any fee or
expense subject to a good faith dispute. The Fund shall notify USBFS in writing within thirty (30) calendar days following receipt
of each invoice if the Fund is disputing any amounts in good faith. The Fund shall settle such disputed amounts within ten (10)
calendar days of the day on which the parties agree to the amount to be paid. With the exception of any fee or expense the Fund
is disputing in good faith as set forth above, unpaid invoices shall accrue a finance charge of one and one-half percent (1 1⁄2%)
per month, after the due date. Notwithstanding anything to the contrary, amounts owed by the Fund to USBFS shall only be paid out
of the assets and property of the particular party involved.

 

    	3

    	 

    

 

		4.	Representations and Warranties

 

		A.	The Fund hereby represents and warrants to USBFS, which representations and warranties shall be deemed to be continuing throughout
the term of this Agreement, that:

 

		(1)	It is duly organized and existing under the laws of the jurisdiction of their organization, with full power to carry on its
business as now conducted, to enter into this Agreement and to perform its respective obligations hereunder;

 

		(2)	This Agreement has been duly authorized, executed and delivered by the Fund in accordance with all requisite action and constitutes
a valid and legally binding obligation of the Fund, enforceable in accordance with its terms, subject to bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting the rights and remedies of creditors and secured parties;
and

 

		(3)	It is conducting its business in compliance in all material respects with all applicable laws and regulations, both state and
federal, and has obtained all regulatory approvals necessary to carry on their business as now conducted; there is no statute,
rule, regulation, order or judgment binding on it and no provision of its charters, bylaws or any contract binding it or
affecting its property which would prohibit its execution or performance of this Agreement.

 

		B.	USBFS hereby represents and warrants to the Fund, which representations and warranties shall be deemed to be continuing throughout
the term of this Agreement, that:

 

		(1)	It is duly organized and existing under the laws of the jurisdiction of its organization, with full power to carry on its business
as now conducted, to enter into this Agreement and to perform its obligations hereunder;

 

		(2)	This Agreement has been duly authorized, executed and delivered by USBFS in accordance with all requisite action and constitutes
a valid and legally binding obligation of USBFS, enforceable in accordance with its terms, subject to bankruptcy, insolvency, reorganization,
moratorium and other laws of general application affecting the rights and remedies of creditors and secured parties; and

 

		(3)	It is conducting its business in compliance in all material respects with all applicable laws and regulations, both state and
federal, and has obtained all regulatory approvals necessary to carry on its business as now conducted; there is no statute, rule,
regulation, order or judgment binding on it and no provision of its charter, bylaws or any contract binding it or affecting its
property which would prohibit its execution or performance of this Agreement.

 

    	4

    	 

    

 

		5.	Standard of Care; Indemnification; Limitation of Liability

 

		A.	USBFS shall exercise reasonable care in the performance of its duties under this Agreement. USBFS shall not be liable for any
error of judgment or mistake of law or for any loss suffered by the Fund in connection with its duties under this Agreement, including
losses resulting from mechanical breakdowns or the failure of communication or power supplies beyond USBFS’ control, except
a loss arising out of or relating to USBFS’ refusal or failure to comply with the terms of this Agreement or from its bad
faith, negligence, or willful misconduct in the performance of its duties under this Agreement. Notwithstanding any other provision
of this Agreement, if USBFS has exercised reasonable care in the performance of its duties under this Agreement, the Fund shall
indemnify and hold harmless USBFS from and against any and all claims, demands, losses, expenses, and liabilities of any and every
nature (including reasonable attorneys’ fees) that USBFS may sustain or incur or that may be asserted against USBFS by any
person arising out of any action taken or omitted to be taken by it in performing the services hereunder (i) in accordance with
the foregoing standards, or (ii) in reliance upon any written or oral instruction provided to USBFS by any duly authorized officer
of the Fund, as approved by the Board of Directors of the Fund (the “Board of Directors”), except for any and all claims,
demands, losses, expenses, and liabilities arising out of or relating to USBFS’ refusal or failure to comply with the terms
of this Agreement or from its bad faith, negligence or willful misconduct in the performance of its duties under this Agreement.
This indemnity shall be a continuing obligation of the Fund, its successors and assigns, notwithstanding the termination of this
Agreement. As used in this paragraph, the term “USBFS” shall include USBFS’ directors, officers and employees.

 

USBFS shall indemnify and hold
the Fund harmless from and against any and all claims, demands, losses, expenses, and liabilities of any and every nature (including
reasonable attorneys’ fees) that the Fund may sustain or incur or that may be asserted against the Fund by any person arising
out of any action taken or omitted to be taken by USBFS as a result of USBFS’ refusal or failure to comply with the terms
of this Agreement, or from its bad faith, negligence, or willful misconduct in the performance of its duties under this Agreement.
This indemnity shall be a continuing obligation of USBFS, its successors and assigns, notwithstanding the termination of this Agreement.
As used in this paragraph, the term “Fund” shall include the Fund’s directors, officers and employees.

 

Neither party to this Agreement
shall be liable to the other party for consequential, special or punitive damages under any provision of this Agreement.

 

    	5

    	 

    

 

In the event of a mechanical breakdown
or failure of communication or power supplies beyond its control, USBFS shall take all reasonable steps to minimize service interruptions
for any period that such interruption continues. USBFS will make every reasonable effort to restore any lost or damaged data and
correct any errors resulting from such a breakdown at the expense of USBFS. USBFS agrees that it shall, at all times, have reasonable
contingency plans with appropriate parties, making reasonable provision for emergency use of electrical data processing equipment
to the extent appropriate equipment is available. Representatives of the Fund shall be entitled to inspect USBFS’ premises
and operating capabilities at any time during regular business hours of USBFS, upon reasonable notice to USBFS. Moreover, USBFS
shall provide the Fund, at such times as the Fund may reasonably require, copies of reports rendered by independent accountants
on the internal controls and procedures of USBFS relating to the services provided by USBFS under this Agreement.

 

Notwithstanding the above, USBFS
reserves the right to reprocess and correct administrative errors at its own expense.

 

		B.	In order that the indemnification provisions contained in this section shall apply, it is understood that if in any case the
indemnitor may be asked to indemnify or hold the indemnitee harmless, the indemnitor shall be fully and promptly advised of all
pertinent facts concerning the situation in question, and it is further understood that the indemnitee will use all reasonable
care to notify the indemnitor promptly concerning any situation that presents or appears likely to present the probability of a
claim for indemnification. The indemnitor shall have the option to defend the indemnitee against any claim that may be the subject
of this indemnification. In the event that the indemnitor so elects, it will so notify the indemnitee and thereupon the indemnitor
shall take over complete defense of the claim, and the indemnitee shall in such situation initiate no further legal or other expenses
for which it shall seek indemnification under this section. The indemnitee shall in no case confess any claim or make any compromise
in any case in which the indemnitor will be asked to indemnify the indemnitee except with the indemnitor’s prior written
consent.

 

		C.	The indemnity and defense provisions set forth in this Section 5 shall indefinitely survive the termination and/or assignment
of this Agreement.

 

		D.	If USBFS is acting in another capacity for the Fund pursuant to a separate agreement, nothing herein shall be deemed to relieve
USBFS of any of its obligations in such other capacity.

 

    	6

    	 

    

 

		6.	Proprietary and Confidential Information

 

USBFS agrees on behalf of itself
and its directors, officers, and employees to treat confidentially and as proprietary information of the Fund all records and other
information relative to the Fund and prior, present, or potential shareholders of the Fund (and clients of said shareholders) including
all shareholder trading information, and not to use such records and information for any purpose other than the performance of
its responsibilities and duties hereunder, except after prior notification to and approval in writing by the Fund, which approval
shall not be unreasonably withheld and may not be withheld where USBFS may be exposed to civil or criminal contempt proceedings
for failure to comply, when requested to divulge such information by duly constituted authorities, or when so requested by the
Fund. USBFS acknowledges that it may come into possession of material nonpublic information with respect to the Fund and confirms
that it has in place effective procedures to prevent the use of such information in violation of applicable insider trading laws.

 

Further, USBFS will adhere to
the privacy policies adopted by the Fund pursuant to Title V of the Gramm-Leach-Bliley Act, as may be modified from time to time
(the “Act”). Notwithstanding the foregoing, USBFS will not share any nonpublic personal information concerning any
of the Fund’s shareholders to any third party unless specifically directed by the Fund or allowed under one of the exceptions
noted under the Act.

 

		7.	Term of Agreement; Amendment

 

This Agreement shall become
effective as of the date first written above and will continue in effect for a period of three (3) years and thereafter continue
for successive annual periods until terminated as provided herein. However, this Agreement may be terminated by either party upon
giving ninety (90) days prior written notice to the other party or such shorter period as is mutually agreed upon by the parties.
In the event, the Fund provides notice of termination within the first twelve (12) months of the date first written above, and
provided no breach of any material term has occurred on the part of USBFS, the Fund will be responsible for the payment of those
fees payable pursuant to Section 7 of this Agreement from the time of termination through the end of the initial twelve (12) month
period. For the avoidance of doubt, such fees will be based off the Fund’s net asset value as of the date of termination
and projected out to properly annualize the amount owed to USBFS and payable by the Fund. Notwithstanding the foregoing, this Agreement
may be terminated by any party upon the breach of the other party of any material term of this Agreement if such breach is not
cured within fifteen (15) days of notice of such breach to the breaching party. This Agreement may not be amended or modified in
any manner except by written agreement executed by USBFS and the Fund, and authorized or approved by the Board of Directors.

 

		8.	Records

 

USBFS shall keep records relating
to the services to be performed hereunder in the form and manner, and for such period, as it may deem advisable and is agreeable
to the Fund, but not inconsistent with the rules and regulations of appropriate government authorities, in particular, Section
31 of the 1940 Act and the rules thereunder. USBFS agrees that all such records prepared or maintained by USBFS relating to the
services to be performed by USBFS hereunder are the property of the Fund and will be preserved, maintained, and made available
in accordance with such applicable sections and rules of the 1940 Act and will be promptly surrendered to the Fund on and in accordance
with its request. USBFS agrees to provide any records necessary to the Fund to comply with the Fund’s disclosure controls
and procedures adopted in accordance with the SOX Act. Without limiting the generality of the foregoing, USBFS shall cooperate
with the Fund and assist the Fund, as necessary, by providing information to enable the appropriate officers of the Fund to execute
any required certifications.

 

    	7

    	 

    

 

		9.	Governing Law

 

This Agreement shall be construed
in accordance with the laws of the State of Wisconsin, without regard to conflicts of law principles. To the extent that the applicable
laws of the State of Wisconsin, or any of the provisions herein, conflict with the applicable provisions of the 1940 Act, the latter
shall control, and nothing herein shall be construed in a manner inconsistent with the 1940 Act or any rule or order of the SEC
thereunder.

 

		10.	Duties in the Event of Termination

 

In the event that, in connection
with termination, a successor to any of USBFS’ duties or responsibilities hereunder is designated by the Fund by written
notice to USBFS, USBFS will promptly, upon such termination and at the expense of the Fund, transfer to such successor all relevant
books, records, correspondence, and other data established or maintained by USBFS under this Agreement in a form reasonably acceptable
to the Fund (if such form differs from the form in which USBFS has maintained the same, the Fund shall pay any expenses associated
with transferring the data to such form), and will cooperate in the transfer of such duties and responsibilities, including provision
for assistance from USBFS’ personnel in the establishment of books, records, and other data by such successor. If no such
successor is designated, then such books, records and other data shall be returned to the Fund.

 

		11.	No Agency Relationship

 

Nothing herein contained shall
be deemed to authorize or empower USBFS to act as agent for the other party to this Agreement, or to conduct business in the name,
or for the account, of the other party to this Agreement.

 

		12.	Data Necessary to Perform Services

 

The Fund or its agent shall
furnish to USBFS the data necessary to perform the services described herein at such times and in such form as mutually agreed
upon. If USBFS is also acting in another capacity for the Fund, nothing herein shall be deemed to relieve USBFS of any of its obligations
in such capacity.

 

		13.	Assignment

 

This Agreement may not be assigned by either party
without the prior written consent of the other party.

 

    	8

    	 

    

 

		14.	Compliance with Laws

 

The Fund has and retains primary responsibility for
all compliance matters relating to the Fund, including but not limited to compliance with the 1940 Act, the Internal Revenue Code
of 1986, as amended, the SOX Act, the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism of 2001 and the policies and limitations of the Fund related to its portfolio investments as set forth in its
Prospectus and SAI. USBFS’ services hereunder shall not relieve the Fund of its responsibilities for assuring such compliance
or the Board of Directors’ oversight responsibility with respect thereto.

 

		15.	Legal-Related Services

 

Nothing in this Agreement shall be deemed to appoint
USBFS and its officers, directors and employees as the Fund’ attorneys, form attorney-client relationships or require the
provision of legal advice. The Fund acknowledges that in-house USBFS attorneys exclusively represent USBFS and rely on outside
counsel retained by the Fund to review all services provided by in-house USBFS attorneys and to provide independent judgment on
the Fund’s behalf. Because no attorney-client relationship exists between in-house USBFS attorneys and the Fund, any information
provided to USBFS attorneys may not be privileged and may be subject to compulsory disclosure under certain circumstances. USBFS
represents that it will maintain the confidentiality of information disclosed to its in-house attorneys on a best efforts basis.

 

		16.	Notices

 

Any notice required or permitted
to be given by either party to the other shall be in writing and shall be deemed to have been given on the date delivered personally
or by courier service, upon delivery after sent by registered or certified mail, postage prepaid, return receipt requested, or
on the date sent and confirmed received by facsimile transmission to the other party’s address set forth below:

 

Notice to USBFS shall be sent to:

 

U.S. Bancorp Fund Services, LLC

777 East Wisconsin Avenue

MK-WI-J1S

Milwaukee, WI 53202

 

and notice to the Fund shall be sent to:

 

Business Development Corporation of America

405 Park Avenue, 3rd Floor

New York, NY 10022

 

		17.	Entire Agreement

 

This Agreement constitutes the
entire agreement of the parties with respect to the subject matter hereof and supersedes all prior agreements, arrangements and
understandings, whether written or oral.

 

    	9

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be executed by a duly authorized officer on one or more counterparts as of the
date first above written.

 

	BUSINESS DEVELOPMENT 

CORPORATION OF AMERICA	U.S. BANCORP FUND SERVICES, LLC

 

	By:	/s/ Peter M. Budko	 	By:	/s/ Joe D. Redwine	 
	 	Name: Peter M. Budko	 	 	Name: Joe D. Redwine	 
	 	
        Title: Chairman and Chief Executive

        Officer
	 	 	Title: President	 

 

    	10

    	 

    

 

Exhibit A

 

to the Fund Administration
Servicing Agreement

 

Fees

 

Fund Accounting and
Administration Services Fee, Based Upon Average Net Assets Per Fund:

9 basis points on the first
$200 million

7 basis points on the next
$300 million

4 basis points on the next
$1 billion

2.5 basis points on the
balance above $1.5 billion

 

Minimum annual fee*: $100,000
per portfolio

 

Services Included in Annual
Fee Per Fund:

		•	Advisor Information Source — Online access to portfolio management and compliance information

		•	Daily Performance Reporting — Daily pre and post-tax fund and/or sub-advisor performance reporting

 

Chief Compliance Officer
Support Fee:

		•	$3,000 per year per service

 

Out-Of-Pocket Expenses:

Including
but not limited to corporate action services, fair value pricing services, factor services, SWIFT processing, customized reporting,
third-party data provider costs,(GICS, MSCI, Lipper, etc.),
postage, stationery, programming, special reports, proxies, insurance, EDGAR/XBRL filing, tax e-filing, PFIC monitoring, wash sale
reporting (Gainskeeper), retention of records, federal and state regulatory filing fees, expenses from Board of directors meetings,
third party auditing and legal expenses, and conversion expenses (if necessary), and CCO team travel related costs to perform due
diligence reviews at advisor or sub-advisor facilities.

 

Additional Services

Available
but not included above are the following services — annual legal administration (e.g.,
registration statement update), Section 15(c) reporting, daily compliance testing (Charles
River), electronic Board book portal (BookMark), and additional services mutually agreed upon.

 

*Subject to annual CPI increase, Milwaukee MSA.

Fees are calculated
pro rata and billed monthly.

 

    	11

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