Document:

Exhibit 10.1

 

INVESTMENT ADVISORY
AGREEMENT

BETWEEN

lafayette square empire bdc, inc.

AND

LS BDC ADVISER, LLC

 

This Investment Advisory Agreement
(this “Agreement”) is made on [●], 2021, by and between Lafayette Square Empire BDC, Inc., a Delaware corporation
(the “Company”), and LS BDC Adviser, LLC, a Delaware limited liability company (the “Adviser”).

 

WHEREAS, the Company is a
newly organized, non-diversified, closed-end management investment company that has elected to be regulated as a business development
company (“BDC”) under the Investment Company Act of 1940, as amended (together with the rules promulgated thereunder,
the “Investment Company Act”);

 

WHEREAS, the Adviser is registered
as an investment adviser under the Investment Advisers Act of 1940, as amended (together with the rules promulgated thereunder, the “Advisers
Act”); and

 

WHEREAS, the Company desires
to retain the Adviser to provide investment advisory services to the Company in the manner and on the terms and conditions hereinafter
set forth, and the Adviser wishes to be retained to provide such services.

 

NOW, THEREFORE, in consideration
of the premises and the covenants hereinafter contained and for other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the Company and the Adviser hereby agree as follows:

 

Section 1.               
Duties of the Adviser.

 

(a)                                      
Retention of Adviser. The Company hereby appoints the Adviser to act as the investment adviser to the Company and to manage
the investment and reinvestment of the assets of the Company, subject to the supervision of the board of directors of the Company (the
“Board”), for the period and upon the terms herein set forth in accordance with:

 

(i)                
the investment objectives, policies and restrictions that are set forth in the Company’s Registration Statement on Form 10
filed with the Securities and Exchange Commission (the “SEC”), as supplemented, amended or superseded from time to
time, and in the Company’s confidential private placement memorandum dated [●], 2021, as amended from time to time or as may
otherwise be set forth in the Company’s reports or registration statements filed in compliance with the Securities Exchange Act
of 1934, as amended, as applicable;

 

(ii)             
during the term of this Agreement, all other applicable federal and state laws, rules and regulations, and the Company’s
certificate of incorporation and bylaws, as they may be amended from time to time (the “Organizational Documents”);

 

(iii)           
such investment policies, directives, regulatory restrictions as the Company may from time to time establish or issue and communicate
to the Adviser in writing; and

 

     

     

    

 

(iv)            
the Company’s compliance policies and procedures as applicable to the Adviser and as administered by the Company’s
chief compliance officer.

 

(b)              
Responsibilities of Adviser. Without limiting the generality of the foregoing, the Adviser shall, during the term and subject
to the provisions of this Agreement:

 

(i)                
determine the composition and allocation of the Company’s investment portfolio, the nature and timing of any changes therein
and the manner of implementing such changes;

 

(ii)             
identify, evaluate and negotiate the structure of the investments made by the Company;

 

(iii)           
perform due diligence on prospective portfolio companies;

 

(iv)            
execute, close, monitor and service the Company’s investments;

 

(v)              
determine the securities and other assets that the Company shall purchase, retain or sell;

 

(vi)            
arrange financings and borrowing facilities for the Company; and

 

(vii)         
provide the Company with such other investment advisory, research and related services as the Company may, from time to time, reasonably
require for the investment of its funds.

 

(c)              
Power and Authority. To facilitate the Adviser’s performance of these undertakings, but subject to the restrictions
contained herein, the Company hereby delegates to the Adviser (which power and authority may be delegated by the Adviser to one or more
Sub-Advisers), and the Adviser hereby accepts, the power and authority to act on behalf of and in the name of the Company to effectuate
investment decisions for the Company, including the negotiation, execution and delivery of all documents relating to the acquisition and
disposition of the Company’s investments, the placing of orders for other purchase or sale transactions on behalf of the Company
or any entity in which the Company has a direct or indirect ownership interest, including any interest rate, currency or other derivative
instruments, and the engagement of any services providers deemed necessary or appropriate by the Adviser to the exercise of such power
and authority. In the event that the Company determines to incur or arrange debt or other financing (or to refinance existing debt or
other financing), the Adviser shall use commercially reasonable efforts to arrange for such financing on the Company’s behalf, subject
to the oversight and approval of the Board. If it is necessary for the Adviser to make investments or obtain financing on behalf of the
Company through a special purpose vehicle or a special tax blocker vehicle, the Adviser shall have authority to create, or arrange for
the creation of, such special purpose vehicles and to make investments or obtain financing through such special purpose vehicles in accordance
with applicable law. In connection with providing significant managerial assistance, the Adviser may contract service providers to provide
services to portfolio companies’ employees. The Company also grants to the Adviser power and authority to engage in all activities
and transactions (and anything incidental thereto) that the Adviser deems, in its sole discretion, appropriate, necessary or advisable
to carry out its duties pursuant to this Agreement, including the authority to open accounts and deposit, maintain and withdraw funds
of the Company or any of its subsidiaries in any bank, savings and loan association, brokerage firm or other financial institution.

 

    	 	- 2 -	 

     

    

 

(d)              
Acceptance of Appointment. The Adviser hereby accepts such appointment and agrees during the term hereof to render the services
described herein for the compensation provided herein, subject to the limitations contained herein. Unless
and until it resigns or is removed as investment adviser to the Company in accordance with this Agreement, the Adviser, to the extent
of its powers as set forth in this Agreement, shall be an agent of the Company for the purpose of the Company’s business, and action
taken by the Adviser in accordance with such powers shall bind the Company. 

 

(e)              
Sub-Advisers. The Adviser is hereby authorized to enter into one or more sub-advisory agreements (each a “Sub-Advisory
Agreement”) with other investment advisers (each a “Sub-Adviser”) pursuant to which the Adviser may obtain
the services of the Sub-Adviser(s) to assist the Adviser in fulfilling its responsibilities hereunder, subject to the oversight of the
Adviser and/or the Company, with the scope of such services and oversight to be set forth in each Sub-Advisory Agreement.

 

(i)                
The Adviser and not the Company shall be responsible for any compensation payable to any Sub-Adviser; provided, however, that the
Adviser shall have the right to direct the Company to pay directly any Sub-Adviser the amounts due and payable to such Sub-Adviser from
the fees and expenses otherwise payable to the Adviser under this Agreement.

 

(ii)             
Any Sub-Advisory Agreement entered into by the Adviser shall be in accordance with the requirements of the Investment Company Act
and the Advisers Act, including without limitation, the requirements of the Investment Company Act relating to Board and Company stockholder
approval thereunder, and other applicable federal and state law.

 

(iii)           
Any Sub-Adviser shall be subject to the same fiduciary duties as are imposed on the Adviser pursuant to this Agreement, the Investment
Company Act and the Advisers Act, as well as other applicable federal and state law.

 

(f)               
Independent Contractor Status. The Adviser shall, for all purposes herein provided, be deemed to be an independent contractor
and, except as expressly provided or authorized herein, shall have no authority to act for or represent the Company in any way or otherwise
be deemed an agent of the Company.

 

(g)              
Record Retention. Subject to review by and the overall control of the Board, the Adviser shall maintain and keep all books,
accounts and other records of the Adviser that relate to activities performed by the Adviser hereunder as required under the Investment
Company Act and the Advisers Act. The Adviser agrees that all records that it maintains and keeps for the Company shall at all times remain
the property of the Company, shall be readily accessible during normal business hours, and shall be promptly surrendered to the Company
upon the termination of this Agreement or otherwise on written request by the Company. The Adviser further agrees that the records that
it maintains and keeps for the Company shall be preserved in the manner and for the periods prescribed by the Investment Company Act,
unless any such records are earlier surrendered as provided above. The Adviser shall have the right to retain copies, or originals where
required by Rule 204-2 promulgated under the Advisers Act, of such records to the extent required by applicable law. The Adviser shall
maintain records of the locations where books, accounts and records are maintained among the persons and entities providing services directly
or indirectly to the Adviser or the Company.

 

    	 	- 3 -	 

     

    

 

Section 2.               
Expenses Payable by the Company.

 

(a)              
Adviser Personnel. All investment personnel of the Adviser, when and to the extent engaged in providing investment advisory
services hereunder, and the compensation and routine overhead expenses of such personnel allocable to such services, shall be provided
and paid for by the Adviser and not by the Company.

 

(b)              
Company’s Costs. Subject to the limitations on expense reimbursement of the Adviser as set forth in Sections 2(a)
and (c), the Company, either directly or through reimbursement to the Adviser, shall bear all out-of-pocket costs and expenses of its
operations and its transactions, including, but not limited to, expenses incurred by the Adviser and payable to third parties, including
agents, consultants and other advisors, in monitoring the financial and legal affairs of the Company, news and quotation subscriptions,
and market or industry research expenses; the cost of calculating the Company’s net asset value; the cost of effecting sales and
repurchases of shares of the Company’s common stock and other securities; management and incentive fees payable pursuant to this
Agreement; fees payable to third parties, including agents, consultants and other advisors, relating to, or associated with, making investments,
and, if necessary, enforcing its rights, and valuing investments (including third-party valuation firms); expenses related to consummated
or unconsummated investments, including out-of-pocket due diligence expenses and dead deal or broken deal expenses; rating agency expenses;
fees to arrange debt financings for the Company; distributions on the Company’s shares; administration fees payable under the administration
agreement (the “Administration Agreement”), by and between the Company and LS Administration LLC, a Delaware limited
liability company (the “Administrator”); the allocated costs incurred by the Administrator in providing managerial
assistance to those portfolio companies that request it, including the allocated costs of providing services to portfolio companies’
employees (including cost incurred by service providers); transfer agent and custodial fees; fees and expenses associated with marketing
efforts (including attendance at investment conferences and similar events); accounting, audit and tax preparation expenses; federal and
state registration fees; any exchange listing fees; federal, state, local, and other taxes; costs and expenses incurred in relation to
compliance with applicable laws and regulations and the operation and administration of the Company generally; independent directors’
fees and expenses, including any legal counsel or other advisors retained by, or at the discretion or for the benefit of, the independent
directors; brokerage commissions; costs of proxy statements, stockholders’ reports and notices; costs of preparing government filings,
including periodic and current reports with the SEC; the Company’s fidelity bond, directors and officers/errors and omissions liability
insurance, and any other insurance premiums; indemnification payments; expenses relating to the development and maintenance of the Company’s
website; other operations and technology costs; direct costs and expenses of administration, including printing, mailing, copying, telephone,
fees of independent accountants and outside legal costs; and all other expenses incurred by the Company or the Administrator in connection
with administering the Company’s business, including, but not limited to, payments under the Administration Agreement based upon
the Company’s allocable portion of the Administrator’s overhead in performing its obligations under the Administration Agreement,
including rent, travel and the allocable portion of the cost of the Company’s chief compliance officer and chief financial officer
and their respective staffs, including operations and tax professionals, and administrative staff providing support services in respect
of the Company.

 

    	 	- 4 -	 

     

    

 

For avoidance of doubt, it is
agreed and understood that, from time to time, the Adviser or its affiliates may pay amounts or bear costs properly constituting Company
expenses as set forth herein or otherwise and that the Company shall reimburse the Adviser or its affiliates for all such costs and expenses
that have been paid by the Adviser or its affiliates on behalf of the Company.

 

(c)              
Portfolio Company’s Compensation. In certain circumstances the Adviser, any Sub-Adviser, or any of their respective
Affiliates (as defined below), may receive compensation from a portfolio company, in connection with the Company’s investment in
such portfolio company. Any compensation received by the Adviser, Sub-Adviser, or any of their respective Affiliates, attributable to
the Company’s investment in any portfolio company, in excess of any of the limitations in or exemptions granted from the Investment
Company Act, any interpretation thereof by the staff of the SEC, or the conditions set forth in any exemptive relief granted to the Adviser,
any Sub-Adviser or the Company by the SEC, shall be delivered promptly to the Company, and the Company will retain such excess compensation
for the benefit of its stockholders.

 

Section 3.               
Compensation of the Adviser.

 

The Company agrees to pay,
and the Adviser agrees to accept, as compensation for the services provided by the Adviser hereunder, a base management fee (“Base
Management Fee”) and an incentive fee (“Incentive Fee”) as hereinafter set forth. Any of the fees payable
to the Adviser under this Agreement for any partial calendar quarter shall be appropriately prorated based on the actual number of days
elapsed during such partial quarter as a fraction of the number of days in the relevant calendar year.

 

(a)              
Base Management Fee. The Base Management Fee is payable quarterly in arrears. The Base
Management Fee shall be based on the average value of the Company’s gross assets at the end of the two most recently completed calendar
quarters (the “Average Gross Assets”). For periods ending on or prior to the date of the closing of (i) a quotation
or listing of shares of common stock on a national securities exchange, including an initial public offering, (ii) the sale of all or
substantially all of the Company’s capital stock or assets to, or another liquidity event with, another entity or (iii) a transaction
or series of transactions, including by way of merger, consolidation, recapitalization, reorganization, or sale of stock in each case
for consideration of either cash and/or publicly listed securities of the acquirer (each, a “Liquidity Event”), the Base Management
Fee shall be calculated at an annual rate of 0.75% of the Average Gross Assets. 

 

(b)              
Incentive Fee. The Incentive Fee shall consist of two parts, as follows:

 

(i)                
The first part, referred to as the “Incentive Fee on Income,” shall be calculated and payable quarterly in arrears
based on the Company’s “Pre-Incentive Fee Net Investment Income” for the immediately preceding quarter. “Pre-Incentive
Fee Net Investment Income” means interest income, dividend income and any other income (including any other fees, other than
fees for providing managerial assistance, such as commitment, origination, structuring, diligence and consulting fees or other fees that
the Company receives from portfolio companies) accrued during the calendar quarter, minus the Company’s operating expenses for the
quarter (including the Base Management Fee, expenses payable under the Administration Agreement and any interest expense and dividends
paid on any issued and outstanding preferred stock, but excluding the incentive fee). Pre-Incentive Fee Net Investment Income includes,
in the case of investments with a deferred interest feature (such as original issue discount debt instruments with payment-in-kind (“PIK”)
interest and zero coupon securities), accrued income that the Company has not yet received in cash. Pre-Incentive Fee Net Investment Income
does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. For purposes
of computing the Company’s Pre-Incentive Fee Net Investment Income, the calculation methodology will look through total return swaps
as if the Company owned the referenced assets directly. The payment of the Incentive Fee on Income shall be subject to payment of a preferred
return to investors each quarter, expressed as a quarterly rate of return on the value of the Company’s net assets at the end of
the most recently completed calendar quarter, subject to a “catch up” feature (as described below).

 

    	 	- 5 -	 

     

    

 

(1)              
For periods ending on or prior to the date of the closing of a Liquidity Event, the calculation of the Incentive Fee on Income
is as follows:

 

(A)            
No Incentive Fee on Income shall be payable to the Adviser in any calendar quarter in which the Company’s Pre-Incentive Fee
Net Investment Income does not exceed the preferred return rate of 1.25% per quarter (or 5.00% annualized) (the “Hurdle Rate
Return”) on net assets;

 

(B)             
100% of the Company’s Pre-Incentive Fee Net Investment Income, if any, that exceeds the Hurdle Rate Return but is less than
or equal to 1.47% in any calendar quarter (or 5.88% annualized) shall be payable to the Adviser. This portion of the Incentive Fee on
Income is referred to as the “catch up” and is intended to provide the Adviser with an incentive fee of 15.0% on all of the
Company’s Pre-Incentive Fee Net Investment Income when the Company’s Pre-Incentive Fee Net Investment Income reaches 1.47%
(or 5.88% annualized) in any calendar quarter; and

 

(C)             
For any quarter in which the Company’s Pre-Incentive Fee Net Investment Income exceeds 1.47% in any calendar quarter (or
5.88% annualized), the Incentive Fee on Income shall equal 15.0% of the amount of the Company’s Pre-Incentive Fee Net Investment
Income as the Hurdle Rate Return and catch up will have been achieved.

 

(2)              
For any period ending after the closing of a Liquidity Event, the calculation of the Incentive Fee on Income is as follows:

 

(A)            
No Incentive Fee on Income shall be payable to the Adviser in any calendar quarter in which the Company’s Pre-Incentive Fee
Net Investment Income does not exceed the Hurdle Rate Return on net assets

 

    	 	- 6 -	 

     

    

 

(B)             
100% of the Company’s Pre-Incentive Fee Net Investment Income, if any, that exceeds the Hurdle Rate Return but is less than
or equal to 1.47% in any calendar quarter (or 5.88% annualized) shall be payable to the Adviser. This portion of the Incentive Fee on
Income is referred to as the “catch up” and is intended to provide the Adviser with an incentive fee of 17.5% on all of the
Company’s Pre-Incentive Fee Net Investment Income when the Company’s Pre-Incentive Fee Net Investment Income reaches 1.47%
(or 5.88% annualized) in any calendar quarter; and

 

(C)             
For any quarter in which the Company’s Pre-Incentive Fee Net Investment Income exceeds 1.47% in any calendar quarter (or
5.88% annualized), the Incentive Fee on Income shall equal 17.5% of the amount of the Company’s Pre-Incentive Fee Net Investment
Income as the Hurdle Rate Return and catch up will have been achieved.

 

(ii)             
The second part of the incentive fee, referred to as the “Incentive Fee on Capital Gains,” shall be determined and
payable in arrears as of the end of each calendar year (or upon termination of this Agreement, if earlier). The Incentive Fee on Capital
Gains shall be calculated based on the Company’s “incentive fee capital gains,” which shall equal the Company’s
realized capital gains on a cumulative basis from the date of the Company’s election to be regulated as a business development company,
as of the end of each calendar year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis,
less the aggregate amount of any previously paid Incentive Fee on Capital Gains. For the purpose of computing the Incentive Fee on Capital
Gains, the calculation methodology will look through derivative financial instruments or swaps as if the Company owned the reference assets
directly. Therefore, realized gains and realized losses on the disposition of any reference assets, as well as unrealized depreciation
on reference assets retained in the derivative financial instrument or swap, will be included on a cumulative basis in the calculation
of the Incentive Fee on Capital Gains. For periods ending on or prior to the closing of a Liquidity Event, the Incentive Fee on Capital
Gains shall equal 15.0% of the Company’s incentive fee capital gains, and for periods ending after the date of the closing of a
Liquidity Event, the Incentive Fee on Capital Gains shall equal 17.5% of the Company’s incentive fee capital gains.

 

Section 4.               
Covenant of the Adviser.

 

The Adviser covenants that
it is registered as an investment adviser under the Advisers Act on the effective date of this Agreement, and shall maintain such registration
until the expiration or termination of this Agreement. The Adviser agrees that its activities shall at all times be in compliance in all
material respects with all applicable federal and state laws governing its operations and investments, except to the extent that any such
noncompliance would not reasonably be expected to have a material adverse effect on the ability of the Adviser to fulfill its obligations
under this Agreement. The Adviser agrees to observe and comply with applicable provisions of the code of ethics adopted by the Company
pursuant to Rule 17j-1 under the Investment Company Act, as such code of ethics may be amended from time to time.

 

    	 	- 7 -	 

     

    

 

Section 5.               
Brokerage Commissions.

 

The Adviser is hereby authorized,
to the fullest extent now or hereafter permitted by law, to cause the Company to pay a member of a national securities exchange, broker
or dealer an amount of commission for effecting a securities transaction in excess of the amount of commission another member of such
exchange, broker or dealer would have charged for effecting that transaction, if the Adviser determines in good faith, taking into account
factors, including without limitation, price (including the applicable brokerage commission or dealer spread), size of order, difficulty
of execution, and operational facilities of the firm and the firm’s risk and skill in positioning blocks of securities, that such
amount of commission is reasonable in relation to the value of the brokerage and/or research services provided by such member, broker
or dealer, viewed in terms of either that particular transaction or its overall responsibilities with respect to the Company’s portfolio,
and is consistent with the Adviser’s duty to seek the best execution on behalf of the Company. Notwithstanding the foregoing, with
regard to transactions with or for the benefit of the Company, the Adviser may not pay any commission or receive any rebates or give-ups,
nor participate in any business arrangements which would circumvent this restriction.

 

Section 6.               
Other Activities of the Adviser.

 

The services of the Adviser
to the Company are not exclusive, and the Adviser may engage in any other business or render similar or different services to others including,
without limitation, the direct or indirect sponsorship or management of other investment-based accounts or commingled pools of capital,
however structured, having investment objectives similar to those of the Company, so long as its services to the Company hereunder are
not impaired thereby, and nothing in this Agreement shall limit or restrict the right of any manager, partner, member (including its members
and the owners of its members), officer or employee of the Adviser to engage in any other business or to devote his or her time and attention
in part to any other business, whether of a similar or dissimilar nature, or to receive any fees or compensation in connection therewith
(including fees for serving as a director of, or providing consulting services to, one or more of the Company’s portfolio companies,
subject to applicable law). The Adviser assumes no responsibility under this Agreement other than to render the services called for hereunder.

 

Section 7.               
Responsibility of Dual Directors, Officers and/or Employees.

 

If any person who is a manager,
partner, member, officer or employee of the Adviser is or becomes a director, officer and/or employee of the Company and acts as such
in any business of the Company, then such manager, partner, member, officer and/or employee of the Adviser shall be deemed to be acting
in such capacity solely for the Company, and not as a manager, partner, member, officer or employee of the Adviser or under the control
or direction of the Adviser, even if paid by the Adviser.

 

Section 8.               
Indemnification.

 

Subject to Section 9,
the Adviser, any Sub-Adviser, each of their respective directors, trustees, officers, managers, partners, stockholders or members (and
their stockholders or members, including the owners of their stockholders or members), agents, employees, controlling persons (as determined
under the Investment Company Act (“Controlling Persons”)), any other person or entity Affiliated with the Adviser or
Sub-Adviser (including each of their respective directors, trustees, officers, stockholders or members (and their stockholders or members,
including the owners of their stockholders or members), agents, employees or Controlling Persons) and any other person or entity acting
on behalf of, the Adviser or Sub-Adviser (each an “Indemnified Party” and, collectively, the “Indemnified
Parties”) shall not be liable to the Company or any stockholder thereof for any action taken or omitted to be taken by the Adviser
or any Sub-Adviser in connection with the performance of any of their duties or obligations under this Agreement or otherwise as an investment
adviser of the Company (except to the extent specified in Section 36(b) of the Investment Company Act concerning loss resulting
from a breach of fiduciary duty with respect to the receipt of compensation for services), and the Company shall indemnify, defend and
protect the Indemnified Parties (each of whom shall be deemed a third party beneficiary hereof) and hold them harmless from and against
all losses, damages, liabilities, costs and expenses (including reasonable attorneys’ fees and amounts reasonably paid in satisfaction
of judgments, in compromises and settlement, as fines and penalties and legal or other costs and reasonable expenses of investigating
or defending against any claim or alleged claim) of any nature whatsoever, known or unknown, liquidated or unliquidated) (“Losses”)
incurred by the Indemnified Parties in or by reason of any pending, threatened or completed action, suit, investigation or other proceeding
(including an action or suit by or in the right of the Company or its security holders) arising out of or otherwise based upon the performance
of any of the Indemnified Parties’ duties or obligations under this Agreement, any Sub-Advisory Agreement, or otherwise as an investment
adviser of the Company to the extent such Losses are not fully reimbursed by insurance and otherwise to the fullest extent such indemnification
would not be inconsistent with the Organizational Documents, the Investment Company Act, the laws of the State of New York and other applicable
law.

 

    	 	- 8 -	 

     

    

 

For purposes of this Agreement,
“Affiliate” or “Affiliated” or any derivation thereof means with respect to any individual, corporation,
partnership, trust, joint venture, limited liability company or other entity or association (“Person”): (a) any
Person directly or indirectly owning, controlling, or holding, with the power to vote, 10% or more of the outstanding voting securities
of such other Person; (b) any Person 10% or more of whose outstanding voting securities are directly or indirectly owned, controlled
or held, with the power to vote, by such other Person; (c) any Person directly or indirectly controlling, controlled by or under
common control with such other Person; (d) any executive officer, director, trustee or general partner of such other Person; or (e) any
legal entity for which such Person acts as an executive officer, director, trustee or general partner.

 

Section 9.               
Limitation on Indemnification.

 

Notwithstanding anything in
Section 8 to the contrary, nothing contained herein shall protect or be deemed to protect any of the Indemnified Parties against,
or entitle or be deemed to entitle any of the Indemnified Parties to indemnification in respect of, any Losses to the Company or its security
holders to which the Indemnified Parties would otherwise be subject primarily attributable to the willful misfeasance, bad faith or gross
negligence in the performance of the Adviser’s or Sub-Adviser’s duties or by reason of the reckless disregard of the Adviser’s
or Sub-Adviser’s duties and obligations under this Agreement or any Sub-Advisory Agreement (to the extent applicable, as the same
shall be determined in accordance with the Investment Company Act and any interpretations or guidance by the SEC or its staff thereunder).

 

    	 	- 9 -	 

     

    

 

In addition, notwithstanding
any of the foregoing to the contrary, the provisions of Section 8 and this Section 9 shall not be construed so as to provide
for the indemnification of any Indemnified Party for any liability (including liability under federal securities laws which, under certain
circumstances, impose liability even on persons that act in good faith), to the extent (but only to the extent) that such indemnification
would be in violation of applicable law, but shall be construed so as to effectuate the provisions of Section 8 and this Section 9
to the fullest extent permitted by law.

 

Section 10.           
Effectiveness, Duration and Termination of Agreement.

 

(a)              
Term and Effectiveness. This Agreement shall become effective as of the date first
written above. This Agreement shall remain in effect for two years, and thereafter shall continue automatically for successive
one-year periods; provided that such continuance is specifically approved at least annually by: (i) the vote of the Board, or by the vote
of a majority of the outstanding voting securities of the Company and (ii) the vote of a majority of the Independent Directors, in accordance
with the requirements of the Investment Company Act, or as otherwise permitted under Section 15 of the Investment Company Act.

 

(b)                                      
Termination. This Agreement may be terminated at any time, without the payment of any penalty, (i) by the Company upon 60
days’ prior written notice to the Adviser: (A) upon the vote of a majority of the outstanding voting securities of the Company
(as “majority of the outstanding voting securities” is defined in Section 2(a)(42) of the Investment Company Act)
or (B) by the vote of the Independent Directors; or (ii) by the Adviser upon not less than 60 days’ prior written notice to
the Company. This Agreement shall automatically terminate in the event of its “assignment” (as such term is defined
for purposes of construing Section 15(a)(4) of the Investment Company Act). The provisions of Sections 8 and 9 shall remain
in full force and effect, and the Adviser shall remain entitled to the benefits thereof, notwithstanding any termination of this Agreement.
Further, notwithstanding the termination or expiration of this Agreement as aforesaid, the Adviser shall be entitled to any amounts owed
to it under Section 3 through the date of termination or expiration and Sections 8 and 9 shall continue in force and effect and apply
to the Adviser and its representatives as and to the extent applicable.

 

(c)              
Duties of Adviser Upon Termination. The Adviser shall promptly upon termination:

 

(i)                
deliver to the Board a full accounting, including a statement showing all payments collected by it and a statement of all money
held by it, covering the period following the date of the last accounting furnished to the Board;

 

(ii)             
deliver to the Board all assets and documents of the Company then in custody of the Adviser; and

 

    	 	- 10 -	 

     

    

 

(iii)           
cooperate with the Company to provide an orderly transition of services.

 

Section 11.           
Notices.

 

Any notice under this Agreement
shall be given in writing, addressed and delivered or mailed, postage prepaid, to the other party at the address listed below or at such
other address for a party as shall be specified in a notice given in accordance with this Section.

 

Section 12.           
Amendments.

 

This Agreement may be amended
by mutual written consent of the parties; provided that the consent of the Company is required to be obtained in conformity with the requirements
of the Investment Company Act.

 

Section 13.           
Severability.

 

If any provision of this Agreement
shall be declared illegal, invalid, or unenforceable in any jurisdiction, then such provision shall be deemed to be severable from this
Agreement (to the extent permitted by law) and in any event such illegality, invalidity or unenforceability shall not affect the remainder
hereof.

 

Section 14.           
Counterparts.

 

This Agreement may be executed
in counterparts, each of which shall be deemed to be an original copy and all of which together shall constitute one and the same instrument
binding on all parties hereto, notwithstanding that all parties shall not have signed the same counterpart.

 

Section 15.           
Governing Law.

 

Notwithstanding the place
where this Agreement may be executed by any of the parties hereto and the provisions of Sections 8 and 9, this Agreement shall be construed
in accordance with the laws of the State of New York. For so long as the Company is regulated as a BDC under the Investment Company Act,
this Agreement shall also be construed in accordance with the applicable provisions of the Investment Company Act and the Advisers Act.
In such case, to the extent the applicable laws of the State of New York or any of the provisions herein conflict with the provisions
of the Investment Company Act or the Advisers Act, the Investment Company Act and the Advisers Act shall control.

 

Section 16.           
Third Party Beneficiaries.

 

Except for any Sub-Adviser
and any Indemnified Party, such Sub-Adviser and the Indemnified Parties each being an intended beneficiary of this Agreement, this Agreement
is for the sole benefit of the parties hereto and their permitted assigns and nothing herein express or implied shall give or be construed
to give to any person, other than the parties hereto and such assigns, any legal or equitable rights hereunder.

 

    	 	- 11 -	 

     

    

 

Section 17.           
Entire Agreement.

 

This Agreement contains the
entire agreement of the parties and supersedes all prior agreements, understandings and arrangements with respect to the subject matter
hereof.

 

Section 18.           
Insurance.

 

The Company shall acquire
and maintain a directors and officers liability insurance policy or similar insurance policy, which may name the Adviser and any Sub-Adviser
each as an additional insured party (each an “Additional Insured Party” and collectively the “Additional Insured
Parties”). Such insurance policy shall include reasonable coverage from a reputable insurer. The Company shall make all premium
payments required to maintain such policy in full force and effect; provided, however, each Additional Insured Party, if any, shall pay
to the Company, in advance of the due date of such premium, its allocated share of the premium. Irrespective of whether the Adviser and
any Sub-Adviser is a named Additional Insured Party on such policy, the Company shall provide the Adviser and any Sub-Adviser with written
notice upon receipt of any notice of: (a) any default under such policy; (b) any pending or threatened termination, cancellation
or non-renewal of such policy or (c) any coverage limitation or reduction with respect to such policy. The foregoing provisions of
this Section 18 notwithstanding, the Company shall not be required to acquire or maintain any insurance policy to the extent that
the same is not available upon commercially reasonable pricing terms or at all, as determined in good faith by the required majority (as
defined in Section 57(o) of the Investment Company Act) of the Board.

 

(signature page follows)

 

    	 	- 12 -	 

     

    

 

IN WITNESS WHEREOF, the parties
hereto have caused this Agreement to be duly executed on the date above written.

 

 

	 	LAFAYETTE SQUARE EMPIRE BDC, INC.
	 	a Delaware corporation
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	 	 
	 	LS BDC ADVISER, LLC
	 	a Delaware limited liability company
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

 

 

    	 	- 13 -Exhibit 10.3

 

ADMINISTRATION AGREEMENT

 

This ADMINISTRATION AGREEMENT (the “Agreement”)
made as of [●], 2021 by and between Lafayette Square Empire BDC, Inc., a Delaware corporation (the “Corporation”),
and LS Administration LLC, a Delaware limited liability company (the “Administrator”).

 

WITNESSETH:

 

WHEREAS, the Corporation is a closed-end management
investment company that intends to elect to be treated as a business development company under the Investment Company Act of 1940, as
amended (the “Investment Company Act”);

 

WHEREAS, the Corporation desires to retain the
Administrator to provide administrative services to the Corporation in the manner and on the terms hereinafter set forth; and

 

WHEREAS, the Administrator is willing to provide
administrative services to the Corporation on the terms and conditions hereafter set forth.

 

NOW, THEREFORE, in consideration of the premises
and the covenants hereinafter contained and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged,
the Corporation and the Administrator hereby agree as follows:

 

1.                  
Duties of the Administrator

 

(a)               
Appointment of Administrator. The Corporation hereby appoints the Administrator to act as administrator of the Corporation,
and to furnish, or arrange for others to furnish, the administrative services, personnel and facilities described below, subject to review
by and the overall control of the Board of Directors of the Corporation (the “Board”), for the period and on the terms
and conditions set forth in this Agreement. The Administrator hereby accepts such appointment and agrees during such period to render,
or arrange for the rendering of, such services and to assume the obligations herein set forth subject to the reimbursement of costs and
expenses provided for below. The Administrator and any such other persons providing services arranged for by the Administrator shall for
all purposes herein be deemed to be independent contractors and shall, unless otherwise expressly provided or authorized herein, have
no authority to act for or represent the Corporation in any way or otherwise be deemed agents of the Corporation.

 

(b)               
Services. The Administrator shall perform (or oversee, or arrange for, the performance of) the administrative services
necessary for the operation of the Corporation. Without limiting the generality of the foregoing, the Administrator shall provide the
Corporation with office facilities, equipment, clerical, bookkeeping and record keeping services at such facilities and such other services
as the Administrator, subject to review by the Board, shall from time to time determine to be necessary or useful to perform its obligations
under this Agreement. The Administrator shall also, on behalf of the Corporation, conduct relations with custodians, depositories, transfer
agents, dividend disbursing agents, other stockholder servicing agents, accountants, attorneys, underwriters, brokers and dealers, corporate
fiduciaries, insurers, banks and such other persons in any such other capacity deemed to be necessary or desirable. The Administrator
shall make reports to the Board of its performance of obligations hereunder and furnish advice and recommendations with respect to such
other aspects of the business and affairs of the Corporation as it shall determine to be desirable or as requested by the Board; provided
that nothing herein shall be construed to require the Administrator to, and the Administrator shall not provide any advice or recommendation
relating to the securities and other assets that the Corporation should purchase, retain or sell or any other investment advisory services
to the Corporation. The Administrator shall be responsible for the financial and other records that the Corporation is required to maintain
and shall prepare reports to stockholders, and reports and other materials filed with the Securities and Exchange Commission (the “SEC”)
or any other regulatory authority, including, but not limited to, current reports on Form 8-K, quarterly reports on Form 10-Q, annual
reports on Form 10-K and proxy or information statements to stockholders. If requested by the Corporation, the Administrator will provide
on the Corporation’s behalf significant managerial assistance to those portfolio companies to which the Corporation is required
to provide such assistance, including to portfolio companies’ employees, if requested. In addition, the Administrator will assist
the Corporation in determining and publishing the Corporation’s net asset value, overseeing the preparation and filing of the Corporation’s
tax returns, and the printing and dissemination of reports to stockholders of the Corporation, and generally overseeing the payment of
the Corporation’s expenses and the performance of administrative and professional services rendered to the Corporation by others.

 

     

     

    

 

2.                  
Records

 

The Administrator agrees to maintain and keep all
books, accounts and other records of the Corporation that relate to activities performed by the Administrator hereunder and, if required
by the Investment Company Act, will maintain and keep such books, accounts and records in accordance with that Act. In compliance with
the requirements of Rule 31a-3 under the Investment Company Act, the Administrator agrees that all records that it maintains for
the Corporation shall at all times remain the property of the Corporation, shall be readily accessible during normal business hours, and
shall be promptly surrendered upon the termination of the Agreement or otherwise on written request. The Administrator further agrees
that all records which it maintains for the Corporation pursuant to Rule 31a-1 under the Investment Company Act will be preserved
for the periods prescribed by Rule 31a-2 under the Investment Company Act unless any such records are earlier surrendered as provided
above. Records shall be surrendered in usable machine-readable form. The Administrator shall have the right to retain copies of such records
subject to observance of its confidentiality obligations under this Agreement.

 

3.                  
Confidentiality

 

The parties hereto agree that each shall treat
confidentially all information provided by each party to the other regarding its business and operations. All confidential information
provided by a party hereto, including nonpublic personal information of natural persons pursuant to Regulation S-P of the SEC, shall
be used by any other party hereto solely for the purpose of rendering services pursuant to this Agreement and, except as may be required
in carrying out this Agreement, shall not be disclosed to any third party without the prior consent of such providing party. The foregoing
shall not be applicable to any information that is publicly available when provided or thereafter becomes publicly available other than
through a breach of this Agreement, or that is required to be disclosed by any regulatory authority, any authority or legal counsel of
the parties hereto, by judicial or administrative process or otherwise by applicable law or regulation.

 

4.                  
Compensation; Allocation of Costs and Expenses

 

(a)               
In full consideration of the provision of the services of the Administrator, the Corporation shall reimburse the Administrator
for the costs and expenses incurred by the Administrator in performing its obligations and providing personnel and facilities hereunder,
including the costs and expenses charged by any sub-administrator that may be retained by the Administrator to provide services to the
Corporation or on the Administrator’s behalf.

 

(b)               
The Corporation will bear all costs and expenses that are incurred in its operation, administration, and transactions and not specifically
assumed by the Corporation’s investment adviser (the “Adviser”), pursuant to that certain Investment Advisory
Agreement, dated as of [•], 2021, by and between the Corporation and the Adviser (the “Advisory Agreement”). Costs
and expenses to be borne by the Corporation include, but are not limited to, those relating to: expenses deemed to be “organization
and offering expenses” of the Corporation for purposes of Conduct Rule 2310(a)(12) of the Financial Industry Regulatory Authority
(for purposes of this Agreement, such expenses, exclusive of commissions, the dealer manager fee and any discounts, are hereinafter referred
to as “Organization and Offering Expenses”); expenses incurred by the Adviser and payable to third parties, including
agents, consultants and other advisors, in monitoring the financial and legal affairs of the Corporation, and news and quotation subscriptions;
the cost of calculating the Corporation’s net asset value; the cost of effecting sales and repurchases of shares of the Corporation’s
common stock and other securities; management and incentive fees payable pursuant to the Advisory Agreement; fees payable to third parties,
including agents, consultants and other advisors, relating to, or associated with, making investments, and, if necessary, enforcing its
rights, and valuing investments (including third-party valuation firms); placement agent fees and expenses, rating agency expenses; fees
to arrange debt financings for the Corporation; distributions on the Corporation’s shares; administration fees payable under this
Agreement; the allocated costs incurred by the Administrator in providing managerial assistance to those portfolio companies that request
it; transfer agent and custodial fees; fees and expenses associated with marketing efforts (including attendance at investment conferences
and similar events); federal and state registration fees; any exchange listing fees; federal, state, local, and other taxes; independent
directors’ fees and expenses, including any legal counsel or other advisors retained by, or at the discretion or for the benefit
of, the independent directors; brokerage commissions; costs of proxy statements, stockholders’ reports and notices; costs of preparing
government filings, including periodic and current reports with the SEC; the Corporation’s fidelity bond, directors and officers/errors
and omissions liability insurance, and any other insurance premiums; indemnification payments; expenses relating to the development and
maintenance of the Corporation’s website; other operations and technology costs; direct costs and expenses of administration, including
printing, mailing, copying, telephone, fees of independent accountants and outside legal costs; and all other expenses incurred by the
Corporation or the Administrator in connection with administering the Corporation’s business, including, but not limited to, payments
under this Agreement based upon the Corporation’s allocable portion of the Administrator’s overhead in performing its obligations
under this Agreement, including rent, travel and the allocable portion of the cost of the Corporation’s chief compliance officer
and chief financial officer and their respective staffs, including operations and tax professionals, and administrative staff providing
support services in respect of the Corporation.

 

    	 	2	 

     

    

 

5.                  
Limitation of Liability of the Administrator; Indemnification

 

The Administrator, its affiliates and their respective
directors, officers, managers, partners, agents, employees, controlling persons, members, and any other person or entity affiliated with
any of them including the Adviser, shall not be liable to the Corporation for any action taken or omitted to be taken by the Administrator
in connection with the performance of any of its duties or obligations under this Agreement or otherwise as administrator for the Corporation,
and the Corporation shall indemnify, defend and protect the Administrator (and its officers, managers, partners, agents, employees, controlling
persons, members, and any other person or entity affiliated with the Administrator, including without limitation, the Adviser, each of
whom shall be deemed a third party beneficiary hereof) (collectively, the “Indemnified Parties”), and hold them harmless
from and against all damages, liabilities, costs and expenses (including reasonable attorneys’ fees and amounts reasonably paid
in settlement) incurred by the Indemnified Parties in or by reason of any pending, threatened or completed action, suit, investigation
or other proceeding (including an action or suit by or in the right of the Corporation or its security holders) arising out of or otherwise
based upon the performance of any of the Administrator’s duties or obligations under this Agreement or otherwise as administrator
for the Corporation. Notwithstanding the preceding sentence of this Section 5 to the contrary, nothing contained herein shall protect
or be deemed to protect the Indemnified Parties against or entitle or be deemed to entitle the Indemnified Parties to indemnification
in respect of, any liability to the Corporation or its security holders to which the Indemnified Parties would otherwise be subject by
reason of willful misfeasance, bad faith or gross negligence in the performance of the Administrator’s duties or by reason of the
reckless disregard of the Administrator’s duties and obligations under this Agreement (to the extent applicable, as the same shall
be determined in accordance with the Investment Company Act and any interpretations or guidance by the SEC or its staff thereunder).

 

    	 	3	 

     

    

 

In addition, notwithstanding any of the foregoing
to the contrary, the provisions of this Section 5 shall not be construed so as to provide for the indemnification of any Indemnified Party
for any liability (including liability under federal securities laws which, under certain circumstances, impose liability even on persons
that act in good faith), to the extent (but only to the extent) that such indemnification would be in violation of applicable law, but
shall be construed so as to effectuate the provisions of this Section 5 to the fullest extent permitted by law.

 

6.                  
Activities of the Administrator

 

The services of the Administrator to the Corporation
are not to be deemed to be exclusive, and the Administrator and each other person providing services as arranged by the Administrator
is free to render services to others. It is understood that directors, officers, employees and stockholders of the Corporation are or
may become interested in the Administrator and its affiliates, as directors, officers, members, managers, employees, partners, stockholders
or otherwise, and that the Administrator and directors, officers, members, managers, employees, partners and stockholders of the Administrator
and its affiliates are or may become similarly interested in the Corporation as officers, directors, stockholders or otherwise.

 

7.                  
Duration and Termination of this Agreement

 

(a)               
This Agreement shall remain in force with respect to the Corporation for two years from the date of effectiveness and thereafter
continue from year to year, but only so long as such continuance is specifically approved at least annually by (i) the Board and
(ii) a majority of the members of the Board who are not parties to this Agreement or “interested persons” (as defined
in Section 2(a)(19) of the Investment Company Act) of any such party.

 

(b)               
This Agreement may be terminated at any time, without the payment of any penalty, by vote of the Board, or by the Administrator,
upon 60 days’ written notice to the other party.

 

(c)               
This Agreement may not be assigned by a party without the consent of the other party.  The provisions of Section 3 and
Section 5 of this Agreement shall remain in full force and effect, and the Administrator shall remain entitled to the benefits thereof,
notwithstanding any termination of this Agreement. 

 

8.                  
Amendments of this Agreement

 

This Agreement may be amended pursuant to a written
instrument by mutual consent of the parties.

 

9.                  
Severability

 

If any provision of this Agreement shall be declared
illegal, invalid, or unenforceable in any jurisdiction, then such provision shall be deemed to be severable from this Agreement (to the
extent permitted by law) and in any event such illegality, invalidity or unenforceability shall not affect the remainder hereof.

 

    	 	4	 

     

    

 

10.              
Governing Law

 

This Agreement shall be construed in accordance
with the laws of the State of New York and the applicable provisions of the Investment Company Act. To the extent that the applicable
laws of the State of New York, or any of the provisions herein, conflict with the applicable provisions of the Investment Company Act,
the latter shall control.

 

11.              
Entire Agreement

 

This Agreement contains the entire agreement of
the parties and supersedes all prior agreements, understandings and arrangements with respect to the subject matter hereof.

 

12.              
Notices

 

All notices, requests, claims, demands and other
communications hereunder shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt)
by delivery in person, by overnight courier service (with signature required), by facsimile, or by registered or certified mail (postage
prepaid, return receipt requested) to the respective parties at their respective principal executive office addresses.

 

13.              
Miscellaneous

 

The captions in this Agreement are included for
convenience of reference only and in no way define or delimit any of the provisions hereof or otherwise affect their construction or effect.
If any provision of this Agreement shall be held or made invalid by a court decision, statute, rule or otherwise, the remainder of this
Agreement shall not be affected thereby. This Agreement shall be binding on, and shall inure to the benefit of the parties hereto and
their respective successors.

 

14.              
Counterparts

 

This Agreement may be executed in counterparts
by the parties hereto, each of which shall constitute an original counterpart, and all of which, together, shall constitute one Agreement.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

    	 	5	 

     

    

 

IN WITNESS WHEREOF, the parties hereto have executed
and delivered this Agreement as of the date first above written.

 

 

	 	LAFAYETTE SQUARE EMPIRE BDC, INC.
	 	 
	 	By:	 
	 	Name:
	 	Title:
	 	 	 
	 	 	 
	 	LS ADMINISTRATION, LLC
	 	 
	 	By:	 
	 	Name:
	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00328-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00328-of-00352.parquet"}]]