Document:

EX-10.1

 Exhibit 10.1 

SAVARA INC. 
 EXECUTIVE
EMPLOYMENT AGREEMENT 
 This Executive Employment Agreement (the “Agreement”) is entered into as of March 9, 2021 (the
“Effective Date”) by and between Savara Inc. (the “Company”), and Badrul Chowdhury (“Executive”). 
 WHEREAS,
Executive is currently employed by the Company as the Company’s Chief Medical Officer pursuant to the terms of an offer letter agreement dated September 6, 2019 (the “Prior Agreement”); 

WHEREAS, the Company has determined it is appropriate to enter into a revised employment agreement to provide additional compensation,
severance benefits and other terms to encourage the continued attention and dedication of Executive to his assigned duties with the Company; and 

WHEREAS, Executive and the Company acknowledge and agree that this Agreement shall replace and supersede the Prior Agreement in its entirety.

 NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the Company and Executive agree as follows: 

1.    Duties and Scope of Employment. 

(a)    Positions and Duties. During the Employment Term (as defined below), Executive will continue to serve as
Chief Medical Officer, reporting to the Company’s Chief Executive Officer (“CEO”). Executive will render such business and professional services in the performance of Executive’s duties, consistent with Executive’s position
within the Company, as will reasonably be assigned to him by the CEO. The period of Executive’s employment under this Agreement is referred to herein as the “Employment Term.” 

(b)    Obligations. During the Employment Term, Executive will perform his duties faithfully and to the best of his
ability and will devote his full business efforts and time to the Company. For the duration of the Employment Term, Executive agrees not to actively engage in any other employment, occupation or consulting activity for any direct or indirect
remuneration without the prior approval of the CEO. 
 2.    At-Will
Employment. The parties agree that Executive’s employment with the Company will be “at-will” employment and may be terminated at any time with or without cause or notice. Executive
understands and agrees that neither his job performance nor promotions, commendations, bonuses or the like from the Company give rise to or in any way serve as the basis for modification, amendment, or extension, by implication or otherwise, of his
employment with the Company. However, as described in this Agreement, Executive may be entitled to severance benefits depending on the circumstances of Executive’s termination of employment with the Company. 

3.    Compensation. 

(a)    Base Salary. During the Employment Term, the Company will pay Executive an annual salary of $540,750 as
compensation for services (the “Base Salary”). The Base Salary will be paid periodically in accordance with the Company’s normal payroll practices and be subject to the usual, required withholdings. 

 (b)    Target Bonus. Executive will be eligible to receive an
annual performance-based bonus of up to forty percent (40%) of Executive’s Base Salary upon achievement of performance objectives to be determined by the CEO, the Board of Directors (the “Board”) or the Compensation Committee of the
Board (the “Compensation Committee”), in its sole discretion (the “Target Bonus”). The amount of the Target Bonus paid to Executive will be determined at the sole discretion of the CEO and Board or the Compensation Committee,
paid in accordance with the Company’s normal payroll practices and payment will be subject to Executive’s continued employment with the Company through the payment date. 

(c)    Review and Adjustments. Executive’s Base Salary, Target Bonus, and other compensatory arrangements will
be reviewed from time to time by the CEO and Board or the Compensation Committee with respect to performance or market-based adjustments. 

4.    Employee Benefits. During the Employment Term, Executive will be entitled to participate in the employee
benefit plans currently and hereafter maintained by the Company of general applicability to other senior executives of the Company. The Company reserves the right to cancel or change the benefit plans and programs it offers to its employees at any
time. Executive also will be entitled to paid vacation of 3 weeks per year in accordance with the Company’s vacation policies, with the timing and duration of specific hours off mutually and reasonably agreed to by the parties hereto. 

5.    Expenses. The Company will reimburse Executive for reasonable travel, entertainment or other expenses
incurred by Executive in the furtherance of or in connection with the performance of Executive’s duties hereunder, in accordance with the Company’s Business Travel and Expense Policy as in effect from time to time. 

6.    Termination of Employment. 

(a)    Termination Outside the Change of Control Period. If, outside of the Change of Control Period, the Company
terminates Executive’s employment with the Company, other than for Cause, death or Disability, or Executive resigns from such employment for Good Reason, then, subject to Section 7, Executive will receive the following severance benefits:

 (i)    Cash Severance. A lump sum severance payment equal to (a) twelve (12) months of Executive’s
then-current Base Salary plus (b) a pro-rated portion of Executive’s Target Bonus based on the number of days Executive was employed by the Company during the applicable performance period. 

(ii)    Continued Employee Benefits. Subject to Section 6(c) below, the Company will reimburse Executive for
payments Executive makes for continued healthcare coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) or pursuant to State Continuation, whichever is applicable, until the earlier of
(A) six (6) months from the date of Executive’s termination of employment, or (B) the date upon which Executive and/or Executive’s eligible dependents becomes covered under similar plans, provided Executive timely elects and pays
for COBRA or State Continuation coverage and remains eligible for such continuation coverage. 

(iii)    Acceleration of Vesting. All outstanding unvested options that would have otherwise vested had Executive
remained employed by the Company for twelve (12) months following Executive’s termination date shall immediately vest upon Executive’s termination of employment. For the avoidance of doubt, in the event that the Company terminates
Executive’s employment with the Company other than for Cause, death, or Disability, or Executive resigns from such employment for Good Reason prior to any Change of Control, any of Executive’s then-outstanding and unvested Company equity
awards will remain outstanding and unvested until the earlier of (a) the date three (3) months after the date of such termination, or (b) a Change of Control, and if no Change of Control has occurred by the date three (3) months
after such termination, such unvested Company equity awards will be forfeited permanently and never will vest, and Executive will have no further rights thereto. 

  
 -2- 

 For the avoidance of doubt, if (A) the Company terminates Executive’s employment with the Company
other than for Cause, death, or Disability, or Executive resigns from such employment for Good Reason prior to any Change of Control, which qualifies Executive for severance benefits pursuant to this Section 6(a) and (B) a Change of
Control occurs within the three (3)-month period following such termination, which would otherwise qualify Executive for superior severance benefits under Section 6(b), then Executive instead will be eligible to receive such superior severance
benefits under Section 6(b), which will be reduced by the applicable amount, if any, previously paid under this Section 6(a), and, subject to Section 7, will be paid in a lump sum on the first payroll date immediately following such
Change of Control. 
 (b)    Termination within the Change of Control Period. If, within the Change of Control
Period, the Company terminates Executive’s employment with the Company, other than for Cause, death or Disability, or Executive resigns from such employment for Good Reason, then, subject to Section 7, Executive will receive the following
severance benefits from the Company: 
 (i)    Cash Severance. A lump sum severance payment equal to
(a) eighteen (18) months of Executive’s then-current Base Salary plus (b) 100% of Executive’s Target Bonus. 

(ii)    Continued Employee Benefits. A taxable lump sum payment equal to the amount Executive would pay for
continued healthcare coverage pursuant to COBRA or State Continuation for twelve (12) months from the date of Executive’s termination of employment (which amount will be determined based on the premium for the first month of COBRA or State
Continuation coverage), which will be made regardless of whether Elective elects COBRA or State Continuation coverage. 

(iii)    Acceleration of Vesting. All of Executive’s outstanding unvested Company equity awards shall be
deemed fully vested upon Executive’s termination of employment. For outstanding Company equity awards subject to performance-based vesting, the performance goals will be deemed achieved at one hundred percent (100%) of applicable target levels
for the relevant performance period, unless otherwise provided in the agreement related to the performance-based award. This paragraph shall not supersede any separation vesting and exercise terms set forth in award agreements relating to
Executive’s Company equity awards that are more favorable to the Executive. 
 (c)    COBRA/State Continuation
Reimbursements. If the Company determines in its sole discretion that it cannot, without potentially violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), provide any COBRA/State
Continuation reimbursements that otherwise would be due to Executive under this Section 6, the Company will, in lieu of any such reimbursements to which Executive is entitled under Section 6(b), as applicable, provide to Executive a
taxable monthly payment over the applicable COBRA/State Continuation reimbursement period in an amount equal to the monthly COBRA/State Continuation premium that Executive would be required to pay to continue his group health coverage at coverage
levels in effect immediately prior to Executive’s termination (which amount will be based on the premium for the first month of COBRA/State Continuation coverage), which payments will be made regardless of whether Executive elects COBRA/State
Continuation continuation coverage. 
 (d)    Voluntary Resignation; Termination for Cause. If Executive’s
employment with the Company terminates (i) voluntarily by Executive (other than for Good Reason) or (ii) for Cause by the Company, then Executive will not be entitled to receive severance or other benefits except for those (if any) as may
then be established under the Company’s then existing severance and benefits plans and practices or pursuant to other written agreements with the Company. 

  
 -3- 

 (e)    Disability; Death. If the Company terminates
Executive’s employment as a result of Executive’s Disability, or Executive’s employment terminates due to Executive’s death, then Executive will not be entitled to receive severance or other benefits except for those (if any) as
may then be established under the Company’s then existing written severance and benefits plans and practices or pursuant to other written agreements with the Company. 

(f)    Accrued Compensation. For the avoidance of any doubt, in the event of a termination of Executive’s
employment with the Company, Executive will be entitled to receive all accrued but unpaid vacation, expense reimbursements, wages, and other benefits due to Executive under any Company-provided plans, policies, and arrangements. 

(g)    Exclusive Remedy. In the event of a termination of Executive’s employment with the Company or its
Affiliates, the provisions of this Section 6 is intended to be and are exclusive and in lieu of any other rights or remedies to which Executive or the Company may otherwise be entitled, whether at law, tort or contract, in equity. Executive
will be entitled to no benefits, compensation or other payments or rights upon termination of employment other than those benefits expressly set forth in this Section 6. 

7.    Conditions to Receipt of Severance. 

(a)    Separation Agreement and Release of Claims. The receipt of any severance pursuant to Sections 6(a) or
(b) will be subject to Executive signing and not revoking a separation agreement and release of claims agreement in the form attached hereto as Exhibit A (the “Release”) and provided that such Release becomes effective and
irrevocable no later than sixty (60) days following the termination date (the “Release Deadline”). If the Release does not become effective and irrevocable by the Release Deadline, Executive will forfeit any rights to severance under
this Agreement. In no event will severance payments or benefits be paid or provided until the Release becomes effective and irrevocable. 

(b)    Section 409A. 

(i)    Notwithstanding anything to the contrary in this Agreement, no Deferred Payments will be paid or otherwise provided
until Executive has a “separation from service” within the meaning of Section 409A. Similarly, no severance payable to Executive, if any, pursuant to this Agreement that otherwise would be exempt from Section 409A pursuant to
Treasury Regulation Section 1.409A-1(b)(9) will be payable until Executive has a “separation from service” within the meaning of Section 409A. 

(ii)    Any severance payments or benefits under this Agreement that would be considered Deferred Payments will be paid
on, or, in the case of installments, will not commence until, the sixtieth (60th) day following Executive’s separation from service, or, if later, such time as required by Section 7(b)(iii). Except as required by Section 7(b)(iii),
any installment payments that would have been made to Executive during the sixty (60) day period immediately following Executive’s separation from service but for the preceding sentence will be paid to Executive on the sixtieth (60th) day
following Executive’s separation from service and the remaining payments shall be made as provided in this Agreement. In no event will Executive have discretion to determine the taxable year of payment for any Deferred Payments. 

(iii)    Notwithstanding anything to the contrary in this Agreement, if Executive is a “specified employee”
within the meaning of Section 409A at the time of Executive’s separation from service (other than due to death), then the Deferred Payments that are payable within the first six (6) months following Executive’s separation from
service, will, to the extent required to be delayed pursuant to Section 409A(a)(2)(B) of the Code, become payable on the date six (6) months and one (1) day following the date of Executive’s separation from service. All
subsequent Deferred Payments, if any, will be payable in accordance with the payment schedule applicable to each payment or benefit. Notwithstanding anything herein to the contrary, if Executive dies following Executive’s separation from
service, but prior to the six (6) month anniversary of the separation from service, then any payments delayed in accordance with this paragraph will 

  
 -4- 

 
be payable in a lump sum as soon as administratively practicable after the date of Executive’s death and all other Deferred Payments will be payable in accordance with the payment schedule
applicable to each payment or benefit. Each payment and benefit payable under this Agreement is intended to constitute a separate payment for purposes of Section 1.409A-2(b)(2) of the Treasury
Regulations. 
 (iv)    Any amount paid under this Agreement that satisfies the requirements of the “short-term
deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations will not constitute Deferred Payments. 

(v)    Any amount paid under this Agreement that qualifies as a payment made as a result of an involuntary separation
from service pursuant to Section 1.409A-1(b)(9)(iii) of the Treasury Regulations that does not exceed the Section 409A Limit (as defined below) will not constitute Deferred Payments. 

(vi)    The foregoing provisions and all compensation and benefits provided for under this Agreement are intended to
comply with or be exempt from the requirements of Section 409A so that none of the severance payments and benefits to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities or ambiguous
terms herein will be interpreted to be exempt or so comply. The Company and Executive agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or desirable to
avoid imposition of any additional tax or income recognition prior to actual payment to Executive under Section 409A. In no event will the Company reimburse Executive for any taxes that may be imposed on Executive as a result of
Section 409A. 
 8.    Limitation on Payments. In the event that the severance and other benefits provided
for in this Agreement or otherwise payable to Executive (i) constitute “parachute payments” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”) and (ii) but for this
Section 8, would be subject to the excise tax imposed by Section 4999 of the Code, then Executive’s severance benefits under Section 7 will be either: 

(a)    delivered in full, or 

(b)    delivered as to such lesser extent which would result in no portion of such severance benefits being subject to
excise tax under Section 4999 of the Code, 
 whichever of the foregoing amounts, taking into account the applicable federal, state and local income
taxes and the excise tax imposed by Section 4999 of the Code, results in the receipt by Executive on an after-tax basis, of the greatest amount of severance benefits, notwithstanding that all or some
portion of such severance benefits may be taxable under Section 4999 of the Code. If a reduction in severance and other benefits constituting “parachute payments” is necessary so that benefits are delivered to a lesser extent,
reduction will occur in the following order: (i) reduction of cash payments; (ii) cancellation of awards granted “contingent on a change in ownership or control” (within the meaning of Code Section 280G); (iii) cancellation
of accelerated vesting of equity awards; or (iv) reduction of employee benefits. In the event that acceleration of vesting of equity award compensation is to be reduced, such acceleration of vesting will be cancelled in the reverse order of the
date of grant of Executive’s equity awards. 
 Unless the Company and Executive otherwise agree in writing, any determination required under this
Section 8 will be made in writing by a nationally recognized certified professional services firm selected by the Company, the Company’s legal counsel or such other person or entity to which the parties mutually agree (the
“Firm”) immediately prior to Change of Control, whose determination will be conclusive and binding upon Executive and the Company for all purposes. For purposes of making the calculations required by this Section 8, the Firm

  
 -5- 

 
may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of
the Code. The Company and Executive will furnish to the Firm such information and documents as the Accountants may reasonably request in order to make a determination under this Section. The Company will bear all costs the Firm may reasonably incur
in connection with any calculations contemplated by this Section 8. 
 9.    Definition of Terms. The
following terms referred to in this Agreement will have the following meanings: 
 (a)    Cause. “Cause”
means shall mean the occurrence of: (i) Executive’s willful misconduct or gross negligence in performance of Executive’s duties, including Executive’s refusal to comply in any material respect with the legal directives of the
Board or his immediate supervisor so long as such directives are not inconsistent with Executive’s position and duties, and such refusal to comply is not remedied within ten (10) working days after written notice from the Company, which
written notice shall state that failure to remedy such conduct may result in termination for cause; (ii) Executive’s dishonest or fraudulent conduct, a deliberate attempt to do an injury to the Company or the conviction of a felony; or
(iii) Executive’s breach of the Proprietary Information and Inventions Agreement entered into with the Company. 

(b)    Change of Control. “Change of Control” means the occurrence of any of the following events: 

(i)    A change in the ownership of the Company which occurs on the date that any one person, or more than one person
acting as a group (“Person”), acquires ownership of the stock of the Company that, together with the stock held by such Person, constitutes more than fifty percent (50%) of the total voting power of the stock of the Company, except
that if the holders of Company voting stock immediately before the change in ownership continue to retain, immediately after the change in ownership, in substantially the same proportions as their ownership of the Company’s voting stock
immediately prior to the change in ownership, the direct or indirect beneficial ownership of fifty percent (50%) or more of the total voting power of the stock of the Company or of the ultimate parent entity of the Company, such event will not
be considered a Change in Control; or 
 (ii)    A change in the effective control of the Company which occurs on the
date that a majority of members of the Board is replaced during any twelve (12) month period by directors whose appointment or election is not endorsed by a majority of the members of the Board who were serving prior to the date of the
appointment or election; or 
 (iii)    A sale, exchange, or other disposition of all or substantially all of the
Company’s assets based on the fair market value of the Company’s assets. For purposes of this subsection (iii), fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined in
good faith by the Board without regard to any liabilities associated with such assets. 
 Notwithstanding the foregoing under this section,
a transaction will not be deemed a Change in Control unless the transaction qualifies as a change in control event within the meaning of Section 409A. Further and for the avoidance of doubt, a transaction will not constitute a Change in Control
if: (x) its sole purpose is to change the jurisdiction of the Company’s incorporation, or (y) its sole purpose is to create a holding company that will be owned in substantially the same proportions by the persons who held the
Company’s securities immediately before such transaction. 

  
 -6- 

 (c)    Change of Control Period. “Change of Control
Period” means the period beginning on the date three (3) months prior to the first Change of Control to occur following the Effective Date and ending on the date that is twelve (12) months following such Change of Control. 

(d)    Code. “Code” means the Internal Revenue Code of 1986, as amended. 

(e)    Deferred Payment. “Deferred Payment” means any severance pay or benefits to be paid or provided to
Executive (or Executive’s estate or beneficiaries) pursuant to this Agreement and any other severance payments or separation benefits, that in each case, when considered together, are considered deferred compensation under Section 409A.

 (f)    Disability. “Disability” means that the Board determines that Executive is unable to perform
the essential functions of Executive’s duties, even with reasonable accommodation, for a period of more than 90 consecutive days or more than 75% of the business days in any 180 day period due to mental or physical illness or incapacity. 

(g)    Good Reason. “Good Reason” means Executive’s resignation following the occurrence of one or
more of the following, without Executive’s express written consent: (i) a material adverse change in Executive’s position of employment causing such position to be of materially less stature or of materially less responsibility;
(ii) a reduction of more than ten percent (10%) of Executive’s base compensation unless in connection with similar decreases of other similarly situated employees of the Company; or (iii) Executive refuses to relocate to a facility or
location more than sixty (60) miles from such Executive’s principal work site. Executive’s resignation will not be deemed to be for Good Reason unless Executive has first provided the Company with written notice of the acts or
omissions constituting the grounds for “Good Reason” within ninety (90) days of the initial existence of the grounds for “Good Reason” and a reasonable cure period of not less than thirty (30) days following the date
the Company receives such notice, and such condition has not been cured during such period. 
 (h)    Section
409A. “Section 409A” means Section 409A of the Code and any final regulations and guidance thereunder and any applicable state law equivalent, as each may be amended or promulgated from time to time. 

(i)    Section 409A Limit. “Section 409A Limit” will mean two (2) times the lesser of:
(i) Executive’s annualized compensation based upon the annual rate of pay paid to Executive during the Executive’s taxable year preceding the Executive’s taxable year of Executive’s separation from service as determined
under Treasury Regulation Section 1.409A-1(b)(9)(iii)(A)(1) and any Internal Revenue Service guidance issued with respect thereto; or (ii) the maximum amount that may be taken into account under a
qualified plan pursuant to Section 401(a)(17) of the Internal Revenue Code for the year in which Executive’s separation from service occurred. 

10.    Reaffirmation. Executive agrees and acknowledge that fulfillment of the obligations contained in
Executive’s Proprietary Information and Inventions Agreement (your “PIIA”) are necessary to protect the Company’s Intellectual Property Rights (as defined in your PIIA) and to preserve the Company’s value and goodwill.
Executive further acknowledges the time, geographic and scope limitations of the obligations not to compete and not to interfere under your PIIA are reasonable, especially in light of the Company’s desire to protect its Proprietary Information,
and that Executive will not be precluded from gainful employment if Executive is obligated not to compete or interfere with the Company pursuant to the terms of the PIIA. 

11.    Assignment. This Agreement will be binding upon and inure to the benefit of (a) the heirs, executors
and legal representatives of Executive upon Executive’s death and (b) any successor of the Company. Any such successor of the Company will be deemed substituted for the Company under the terms of this

  
 -7- 

 
Agreement for all purposes. For this purpose, “successor” means any person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise,
directly or indirectly acquires all or substantially all of the assets or business of the Company. None of the rights of Executive to receive any form of compensation payable pursuant to this Agreement may be assigned or transferred except by will
or the laws of descent and distribution. Any other attempted assignment, transfer, conveyance or other disposition of Executive’s right to compensation or other benefits will be null and void. 

12.    Notices. All notices, requests, demands and other communications called for hereunder will be in writing and
will be deemed given (i) on the date of delivery if delivered personally, (ii) one (1) day after being sent by a well-established commercial overnight service, or (iii) four (4) days after being mailed by registered or certified mail,
return receipt requested, prepaid and addressed to the parties or their successors at the following addresses, or at such other addresses as the parties may later designate in writing: 

If to the Company: 
 Savara Inc.

 Attn: CEO 
 6836 Bee
Cave Road 
 Building III, Suite 200 

Austin, TX 78746 
 With a copy
to: 
 Savara Inc. 

Attn: Human Resources 

6836 Bee Cave Road 
 Building III,
Suite 200 
 Austin, TX 78746 

If to Executive: 
 at the last
residential address known by the Company. 
 13.    Severability. In the event that any provision hereof becomes
or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement will continue in full force and effect without said provision. 

14.    Integration. This Agreement and the PIIA represents the entire agreement and understanding between the
parties as to the subject matter herein and supersedes all prior or contemporaneous agreements whether written or oral. This Agreement supersedes the Prior Agreement in its entirety. This Agreement may be modified only by agreement of the parties by
a written instrument executed by the parties that is designated as an amendment to this Agreement. 
 15.    Waiver
of Breach. The waiver of a breach of any term or provision of this Agreement, which must be in writing, will not operate as or be construed to be a waiver of any other previous or subsequent breach of this Agreement. 

16.    Headings. All captions and section headings used in this Agreement are for convenient reference only and do
not form a part of this Agreement. 
 17.    Tax Withholding. All payments made pursuant to this Agreement will
be subject to withholding of applicable taxes. 

  
 -8- 

 18.    Governing Law. This Agreement will be governed by the laws
of the State of Texas (with the exception of its conflict of laws provisions). 
 19.    Acknowledgment.
Executive acknowledges that he has had the opportunity to discuss this matter with and obtain advice from his private attorney, has had sufficient time to, and has carefully read and fully understands all the provisions of this Agreement, and is
knowingly and voluntarily entering into this Agreement. 
 20.    Counterparts. This Agreement may be executed in
counterparts, and each counterpart will have the same force and effect as an original and will constitute an effective, binding agreement on the part of each of the undersigned. 

  
 -9- 

 IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the
Company by their duly authorized officers, as of the day and year set forth below. 
  

							
	COMPANY:
	
	SAVARA INC.
				
	By:	 	 /s/ Matthew Pauls
	 		 	Date: March 9, 2021
	Title:	 	Chairman and Chief Executive Officer	 		 	
			
	EXECUTIVE:	 		 	
			
	 /s/ Badrul Chowdhury
	 		 	Date: March 9, 2021
	Badrul Chowdhury	 		 	

 [SIGNATURE PAGE TO EXECUTIVE EMPLOYMENT AGREEMENT] 

  
 -10- 

 EXHIBIT A 

SEPARATION AGREEMENT AND RELEASE 

This Separation Agreement and Release (“Agreement”) is made by and between Badrul Chowdhury (“Employee”) and Savara Inc.
(the “Company”) (collectively referred to as the “Parties” or individually referred to as a “Party”). 

RECITALS 
 WHEREAS,
Employee was employed by the Company; 
 WHEREAS, Employee signed an Executive Employment Agreement with the Company on March 9, 2021
(the “Employment Agreement”); 
 WHEREAS, Employee signed a Proprietary Information and Inventions Assignment Agreement with the
Company (the “Confidentiality Agreement”); 
 WHEREAS, the Company terminated Employee’s employment with the Company
effective [        ] (the “Termination Date”); and 
 [OR] 

WHEREAS, Employee voluntarily resigned from employment with the Company effective [Date] the “Separation Date”); and 

WHEREAS, the Parties wish to resolve any and all disputes, claims, complaints, grievances, charges, actions, petitions, and demands that the
Employee may have against the Company and any of the Releasees as defined below, including, but not limited to, any and all claims arising out of or in any way related to Employee’s employment with or separation from the Company; 

NOW, THEREFORE, in consideration of the mutual promises made herein, the Company and Employee hereby agree as follows: 

COVENANTS 

1.    Consideration. In consideration of Employee’s execution of this Agreement and Employee’s
fulfillment of all of its terms and conditions, the Company agrees to pay Executive the amounts set forth in Section 6 of the Employment Agreement. Employee acknowledges that without this Agreement, he is otherwise not entitled to the
consideration listed in this paragraph 1. 
 2.    Payment of Salary and Receipt of All Benefits. Employee
acknowledges and represents that, other than the consideration set forth in this Agreement, the Company has paid or provided all salary, wages, bonuses, accrued vacation/paid time off, premiums, leaves, housing allowances, relocation costs,
interest, severance, outplacement costs, fees, reimbursable expenses, commissions, stock, stock options, vesting, and any and all other benefits and compensation due to Employee. 

  
 -11- 

 3.    Benefits. [Except as otherwise provided herein,]
Employee’s participation in all benefits and incidents of employment, including, but not limited to, vesting in stock options, and the accrual of bonuses, vacation, and paid time off, ceased as of the [Termination Date/Separation Date]. 

4.    Release of Claims. Employee agrees that the foregoing consideration represents settlement in full of all
outstanding obligations owed to Employee by the Company and its current and former officers, directors, employees, agents, investors, attorneys, shareholders, administrators, affiliates, benefit plans, plan administrators, insurers, trustees,
divisions, and subsidiaries, and predecessor and successor corporations and assigns (collectively, the “Releasees”). Employee, on his own behalf and on behalf of his respective heirs, family members, executors, agents, and assigns, hereby
and forever releases the Releasees from, and agrees not to sue concerning, or in any manner to institute, prosecute, or pursue, any claim, complaint, charge, duty, obligation, demand, or cause of action relating to any matters of any kind, whether
presently known or unknown, suspected or unsuspected, that Employee may possess against any of the Releasees arising from any omissions, acts, facts, or damages that have occurred up until and including the Effective Date of this Agreement,
including, without limitation: 
 a.    any and all claims relating to or arising from Employee’s employment
relationship with the Company and the termination of that relationship; 
 b.    any and all claims relating to, or
arising from, Employee’s right to purchase, or actual purchase of shares of stock of the Company, including, without limitation, any claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty under applicable state corporate
law, and securities fraud under any state or federal law; 
 c.    any and all claims for wrongful discharge of
employment; termination in violation of public policy; discrimination; harassment; retaliation; breach of contract, both express and implied; breach of covenant of good faith and fair dealing, both express and implied; promissory estoppel; negligent
or intentional infliction of emotional distress; fraud; negligent or intentional misrepresentation; negligent or intentional interference with contract or prospective economic advantage; unfair business practices; defamation; libel; slander;
negligence; personal injury; assault; battery; invasion of privacy; false imprisonment; conversion; and disability benefits; 

d.    any and all claims for violation of any federal, state, or municipal statute, including, but not limited to,
Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1991; the Rehabilitation Act of 1973; the Americans with Disabilities Act of 1990; the Equal Pay Act; the Fair Labor Standards Act; the Fair Credit Reporting Act; the Age
Discrimination in Employment Act of 1967; the Older Workers Benefit Protection Act; the Employee Retirement Income Security Act of 1974; the Worker Adjustment and Retraining Notification Act; the Family and Medical Leave Act; the
Sarbanes-Oxley Act of 2002; the Immigration Control and Reform Act; the California Family Rights Act; the California Labor Code; the California Workers’ Compensation Act; the California Fair Employment and Housing Act; the Texas Payday Act;
Texas Workers’ Compensation Act; and Chapter 21 of the Texas Labor Code (also known as the Texas Commission on Human Rights Act); 

e.    any and all claims for violation of the federal or any state constitution; 

f.    any and all claims arising out of any other laws and regulations relating to employment or employment
discrimination; 

  
 -12- 

 g.    any claim for any loss, cost, damage, or expense arising out of
any dispute over the non-withholding or other tax treatment of any of the proceeds received by Employee as a result of this Agreement; and 

h.    any and all claims for attorneys’ fees and costs. 

Employee agrees that the release set forth in this section shall be and remain in effect in all respects as a complete general release as to
the matters released. This release does not extend to any obligations incurred under this Agreement. This release does not release claims that cannot be released as a matter of law, including, but not limited to, Employee’s right to file a
charge with or participate in a charge by the Equal Employment Opportunity Commission, or any other local, state, or federal administrative body or government agency that is authorized to enforce or administer laws related to employment, against the
Company (with the understanding that any such filing or participation does not give Employee the right to recover any monetary damages against the Company; Employee’s release of claims herein bars Employee from recovering such monetary relief
from the Company). Notwithstanding the foregoing, Employee acknowledges that any and all disputed wage claims that are released herein shall be subject to binding arbitration as noted herein, except as required by applicable law. Employee represents
that he has made no assignment or transfer of any right, claim, complaint, charge, duty, obligation, demand, cause of action, or other matter waived or released by this Section. 

5.    Acknowledgment of Waiver of Claims under ADEA. Employee acknowledges that he is waiving and releasing any
rights he may have under the Age Discrimination in Employment Act of 1967 (“ADEA”), and that this waiver and release is knowing and voluntary. Employee agrees that this waiver and release does not apply to any rights or claims that may
arise under the ADEA after the Effective Date of this Agreement. Employee acknowledges that the consideration given for this waiver and release is in addition to anything of value to which Employee was already entitled. Employee further acknowledges
that he has been advised by this writing that: (a) he should consult with an attorney prior to executing this Agreement; (b) he has twenty-one (21) days within which to consider this
Agreement; (c) he has seven (7) days following his execution of this Agreement to revoke this Agreement; (d) this Agreement shall not be effective until after the revocation period has expired; and (e) nothing in this Agreement
prevents or precludes Employee from challenging or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties, or costs for doing so, unless specifically authorized by
federal law. In the event Employee signs this Agreement and returns it to the Company in less than the 21-day period identified above, Employee hereby acknowledges that he has freely and voluntarily chosen to
waive the time period allotted for considering this Agreement. Employee acknowledges and understands that revocation must be accomplished by a written notification to the person executing this Agreement on the Company’s behalf that is received
prior to the Effective Date. The parties agree that changes, whether material or immaterial, do not restart the running of the 21-day period. (<< to be modified in accordance with the ADEA, the Older
Workers’ Benefit Protection Act, and other applicable law, as necessary and appropriate, including if the separation is part of a group separation requiring additional consideration periods and disclosures >>) 

6.    Unknown Claims; California Civil Code Section 1542. 

a.    Unknown Claims. Employee acknowledges that he has been advised to consult with legal counsel and that he is
familiar with the principle that a general release does not extend to claims that the releaser does not know or suspect to exist in his favor at the time of executing the release, which, if known by his, must have materially affected his settlement
with the releasee. Employee, being aware of said principle, agrees to expressly waive any rights he may have to that effect, as well as under any other statute or common law principles of similar effect. 

  
 -13- 

 b.    Section 1542. Employee further acknowledges that he has
been advised to consult with legal counsel and is familiar with the provisions of California Civil Code Section 1542, a statute that otherwise prohibits the release of unknown claims, which provides: 

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING
THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR. 
 Employee, being aware of
said code section, agrees to expressly waive any rights he may have thereunder, as well as under any other statute or common law principles of similar effect. 

7.    No Pending or Future Lawsuits. Employee represents that he has no lawsuits, claims, or actions pending in his
name, or on behalf of any other person or entity, against the Company or any of the other Releasees. Employee also represents that he does not intend to bring any claims on his own behalf or on behalf of any other person or entity against the
Company or any of the other Releasees. 
 8.    Application for Employment. Employee understands and agrees that,
as a condition of this Agreement, Employee shall not be entitled to any employment with the Company, and Employee hereby waives any right, or alleged right, of employment or re-employment with the Company.
Employee further agrees not to apply for employment with the Company and not otherwise pursue an independent contractor or vendor relationship with the Company. 

9.    Confidentiality. Employee agrees to maintain in complete confidence the existence of this Agreement, the
contents and terms of this Agreement, and the consideration for this Agreement (hereinafter collectively referred to as “Separation Information”). Except as required by law, Employee may disclose Separation Information only to his
immediate family members, the Court in any proceedings to enforce the terms of this Agreement, Employee’s attorney(s), and Employee’s accountant and any professional tax advisor to the extent that they need to know the Separation
Information in order to provide advice on tax treatment or to prepare tax returns, and must prevent disclosure of any Separation Information to all other third parties. Employee agrees that he will not publicize, directly or indirectly, any
Separation Information. 
 10.    Trade Secrets and Confidential Information/Company Property. Employee reaffirms
and agrees to observe and abide by the terms of the Employment Agreement and the Confidentiality Agreement, specifically including the provisions therein regarding nondisclosure of the Company’s trade secrets and confidential and proprietary
information, and the restrictive covenants contained therein. Employee’s signature below constitutes his certification under penalty of perjury that he has returned all documents and other items provided to Employee by the Company, developed or
obtained by Employee in connection with his employment with the Company, or otherwise belonging to the Company. 

11.    No Cooperation. Employee agrees that he will not knowingly encourage, counsel, or assist any attorneys or
their clients in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints by any third party against any of the Releasees, unless under a subpoena or other court order to do so or as related directly
to the ADEA waiver in this Agreement. Employee agrees both to immediately notify the Company upon receipt of any such subpoena or court order, and to furnish, within three (3) business days of its receipt, a copy of such subpoena or other court
order. If approached by anyone for counsel or assistance in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints against any of the Releasees, Employee shall state no more than that he cannot
provide counsel or assistance. 

  
 -14- 

 12.    Non-disparagement.
Employee agrees to refrain from any disparagement, defamation, libel, or slander of any of the Releasees, and agrees to refrain from any tortious interference with the contracts and relationships of any of the Releasees. Employee shall direct any
inquiries by potential future employers to the Company’s human resources department. 
 13.    Breach. In
addition to the rights provided in the “Attorneys’ Fees” section below, Employee acknowledges and agrees that any material breach of this Agreement, [unless such breach constitutes a legal action by Employee challenging or seeking a
determination in good faith of the validity of the waiver herein under the ADEA,] or of any provision of the Confidentiality Agreement shall entitle the Company immediately to recover and/or cease providing the consideration provided to Employee
under this Agreement and to obtain damages, [except as provided by law]. 
 14.    No Admission of Liability.
Employee understands and acknowledges that this Agreement constitutes a compromise and settlement of any and all actual or potential disputed claims by Employee. No action taken by the Company hereto, either previously or in connection with this
Agreement, shall be deemed or construed to be (a) an admission of the truth or falsity of any actual or potential claims or (b) an acknowledgment or admission by the Company of any fault or liability whatsoever to Employee or to any third
party. 
 15.    Costs. The Parties shall each bear their own costs, attorneys’ fees, and other fees
incurred in connection with the preparation of this Agreement. 
 16.    ARBITRATION. THE PARTIES AGREE THAT ANY
AND ALL DISPUTES ARISING OUT OF THE TERMS OF THIS AGREEMENT, THEIR INTERPRETATION, AND ANY OF THE MATTERS HEREIN RELEASED, SHALL BE SUBJECT TO ARBITRATION IN TRAVIS COUNTY, TEXAS BEFORE JUDICIAL ARBITRATION & MEDIATION SERVICES
(“JAMS”), PURSUANT TO ITS EMPLOYMENT ARBITRATION RULES & PROCEDURES (“JAMS RULES”). THE ARBITRATOR MAY GRANT INJUNCTIONS AND OTHER RELIEF IN SUCH DISPUTES. THE ARBITRATOR SHALL ADMINISTER AND CONDUCT ANY ARBITRATION IN
ACCORDANCE WITH TEXAS LAW, INCLUDING THE TEXAS RULES OF CIVIL PROCEDURE, AND THE ARBITRATOR SHALL APPLY SUBSTANTIVE AND PROCEDURAL TEXAS LAW TO ANY DISPUTE OR CLAIM, WITHOUT REFERENCE TO ANY CONFLICT-OF-LAW PROVISIONS OF ANY JURISDICTION. TO THE EXTENT THAT THE JAMS RULES CONFLICT WITH TEXAS LAW, TEXAS LAW SHALL TAKE PRECEDENCE. THE DECISION OF THE ARBITRATOR SHALL BE FINAL, CONCLUSIVE, AND
BINDING ON THE PARTIES TO THE ARBITRATION. THE PARTIES AGREE THAT THE PREVAILING PARTY IN ANY ARBITRATION SHALL BE ENTITLED TO INJUNCTIVE RELIEF IN ANY COURT OF COMPETENT JURISDICTION TO ENFORCE THE ARBITRATION AWARD. THE PARTIES TO THE ARBITRATION
SHALL EACH PAY AN EQUAL SHARE OF THE COSTS AND EXPENSES OF SUCH ARBITRATION, AND EACH PARTY SHALL SEPARATELY PAY FOR ITS RESPECTIVE COUNSEL FEES AND EXPENSES; PROVIDED, HOWEVER, THAT THE ARBITRATOR SHALL AWARD ATTORNEYS’ FEES AND COSTS TO THE
PREVAILING PARTY, EXCEPT AS PROHIBITED BY LAW. THE PARTIES HEREBY AGREE TO WAIVE THEIR RIGHT TO HAVE ANY DISPUTE BETWEEN THEM RESOLVED IN A COURT OF LAW BY A JUDGE OR JURY. NOTWITHSTANDING THE FOREGOING, THIS SECTION WILL NOT PREVENT EITHER PARTY
FROM SEEKING INJUNCTIVE RELIEF (OR ANY OTHER PROVISIONAL REMEDY) FROM ANY COURT HAVING JURISDICTION OVER THE PARTIES AND THE SUBJECT MATTER OF THEIR DISPUTE RELATING TO THIS AGREEMENT AND THE AGREEMENTS INCORPORATED HEREIN BY REFERENCE. SHOULD ANY
PART OF THE ARBITRATION AGREEMENT CONTAINED IN THIS PARAGRAPH CONFLICT WITH ANY OTHER ARBITRATION AGREEMENT BETWEEN THE PARTIES, THE PARTIES AGREE THAT THIS ARBITRATION AGREEMENT SHALL GOVERN. 

  
 -15- 

 17.    Tax Consequences. The Company makes no representations or
warranties with respect to the tax consequences of the payments and any other consideration provided to Employee or made on his behalf under the terms of this Agreement. Employee agrees and understands that he is responsible for payment, if any, of
local, state, and/or federal taxes on the payments and any other consideration provided hereunder by the Company and any penalties or assessments thereon. Employee further agrees to indemnify and hold the Company harmless from any claims, demands,
deficiencies, penalties, interest, assessments, executions, judgments, or recoveries by any government agency against the Company for any amounts claimed due on account of (a) Employee’s failure to pay or delayed payment of federal or
state taxes, or (b) damages sustained by the Company by reason of any such claims, including attorneys’ fees and costs. 

18.    Authority. The Company represents and warrants that the undersigned has the authority to act on behalf of
the Company and to bind the Company and all who may claim through it to the terms and conditions of this Agreement. Employee represents and warrants that he has the capacity to act on his own behalf and on behalf of all who might claim through his
to bind them to the terms and conditions of this Agreement. Each Party warrants and represents that there are no liens or claims of lien or assignments in law or equity or otherwise of or against any of the claims or causes of action released
herein. 
 19.    No Representations. Employee represents that he has had an opportunity to consult with an
attorney, and has carefully read and understands the scope and effect of the provisions of this Agreement. Employee has not relied upon any representations or statements made by the Company that are not specifically set forth in this Agreement. 

20.    Severability. In the event that any provision or any portion of any provision hereof or any surviving
agreement made a part hereof becomes or is declared by a court of competent jurisdiction or arbitrator to be illegal, unenforceable, or void, this Agreement shall continue in full force and effect without said provision or portion of provision. 

21.    Attorneys’ Fees. Except with regard to a legal action challenging or seeking a
determination in good faith of the validity of the waiver herein under the ADEA, in the event that either Party brings an action to enforce or effect its rights under this Agreement, the prevailing Party shall be entitled to recover its costs and
expenses, including the costs of mediation, arbitration, litigation, court fees, and reasonable attorneys’ fees incurred in connection with such an action. 

22.    Entire Agreement. This Agreement represents the entire agreement and understanding between the Company and
Employee concerning the subject matter of this Agreement and Employee’s employment with and separation from the Company and the events leading thereto and associated therewith, and supersedes and replaces any and all prior agreements and
understandings concerning the subject matter of this Agreement and Employee’s relationship with the Company, with the exception of the surviving portions of the Employment Agreement, except as modified herein, and the Confidentiality Agreement.

 23.    No Oral Modification. This Agreement may only be amended in a writing signed by Employee and the
Company’s Chief Executive Officer following approval by the Company’s Board of Directors. 

24.    Governing Law. This Agreement shall be governed by the laws of the State of Texas, without regard for choice-of-law provisions. Employee consents to personal and exclusive jurisdiction and venue in the State of Texas. 

25.    Effective Date. Employee understands that this Agreement shall be null and void if not executed by his
within twenty-one (21) days. Each Party has seven (7) days after that Party signs this Agreement to revoke it. This Agreement will become effective on the eighth (8th) day after Employee signed
this Agreement, so long as it has been signed by the Parties and has not been revoked by either Party before 

  
 -16- 

 
that date (the “Effective Date”). Employee understands that this Agreement shall be null and void if not executed by Employee within the
twenty-one (21) day period set forth under paragraph 5 above. 

26.    Counterparts. This Agreement may be executed in counterparts and by facsimile, and each counterpart and
facsimile shall have the same force and effect as an original and shall constitute an effective, binding agreement on the part of each of the undersigned. 

27.    Protected Activity Not Prohibited. Employee understands that nothing in this Agreement shall in any way
limit or prohibit Employee from engaging for a lawful purpose in any Protected Activity. For purposes of this Agreement, “Protected Activity” shall mean filing a charge or complaint, or otherwise communicating, cooperating, or
participating with, any state, federal, or other governmental agency, including the Securities and Exchange Commission, the Equal Employment Opportunity Commission, and the National Labor Relations Board. Notwithstanding any restrictions set
forth in this Agreement, Employee understands that he is not required to obtain authorization from the Company prior to disclosing information to, or communicating with, such agencies, nor is Employee obligated to advise the Company as to any such
disclosures or communications. Notwithstanding, in making any such disclosures or communications, Employee agrees to take all reasonable precautions to prevent any unauthorized use or disclosure of any information that may constitute Company
confidential or proprietary information under the Confidentiality Agreement and/or Employment Agreement to any parties other than the relevant government agencies. Employee further understands that “Protected Activity” does not include his
disclosure of any Company attorney-client privileged communications, and that any such disclosure without the Company’s written consent shall constitute a material breach of this Agreement. 

28.    Voluntary Execution of Agreement. Employee understands and agrees that he executed this Agreement
voluntarily, without any duress or undue influence on the part or behalf of the Company or any third party, with the full intent of releasing all of his claims against the Company and any of the other Releasees. Employee acknowledges that: 

(a)    he has read this Agreement; 

(b)    he has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of his
own choice or has elected not to retain legal counsel; 
 (c)    he understands the terms and consequences of this
Agreement and of the releases it contains; and 
 (d)    he is fully aware of the legal and binding effect of this
Agreement. 
 [Remainder of Page Intentionally Blank; Signature Page Follows] 

  
 -17- 

 IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set
forth below. 
  

							
		 		 		 	 [EMPLOYEE NAME], an individual

				
	 Dated:
                    , 202    
	 		 		 	  

		 		 		 	[Employee Name]
				
		 		 		 	 SAVARA INC.

				
	 Dated:
                    , 202    
	 		 	By	 	  

		 		 		 	 [Officer Name]

		 		 		 	 [Officer Title]

  
 -18-Exhibit 4.2

 

EIGHTH SUPPLEMENTAL INDENTURE

 

between

 

SARATOGA INVESTMENT CORP.

 

and

 

U.S. BANK NATIONAL ASSOCIATION,

 

as Trustee

 

Dated as of March 10, 2021

 

THIS EIGHTH SUPPLEMENTAL
INDENTURE (this “Eighth Supplemental Indenture”), dated as of March 10, 2021, is between Saratoga Investment Corp.,
a Maryland corporation (the “Company”), and U.S. Bank National Association, as trustee (the “Trustee”).
All capitalized terms used herein shall have the meaning set forth in the Base Indenture (as defined below).

 

RECITALS
OF THE COMPANY

 

The Company and the
Trustee executed and delivered an Indenture, dated as of May 10, 2013 (the “Base Indenture” and, as supplemented by
this Eighth Supplemental Indenture, the “Indenture”), to provide for the issuance by the Company from time to time
of the Company’s unsecured debentures, notes or other evidences of indebtedness (the “Securities”), to be issued
in one or more series as provided in the Indenture.

 

The Company desires
to issue and sell $50,000,000 aggregate principal amount of the Company’s 4.375% Notes due 2026 (the “Notes”).

 

The Company previously
entered into the First Supplemental Indenture, dated as of May 10, 2013 (the “First Supplemental Indenture”), the Second
Supplemental Indenture, dated as of December 21, 2016 (the “Second Supplemental Indenture”), the Third Supplemental
Indenture, dated as of August 28, 2018 (the “Third Supplemental Indenture”), the Fourth Supplemental Indenture, dated
as of June 24, 2020 (the “Fourth Supplemental Indenture”), the Fifth Supplemental Indenture, dated as of July 9, 2020
(the “Fifth Supplemental Indenture”), the Sixth Supplemental Indenture, dated as of December 29, 2020 (the “Sixth
Supplemental Indenture”), and the Seventh Supplemental Indenture, dated as of January 28, 2021 (the “Seventh Supplemental
Indenture”), each of which amended and supplemented the Base Indenture. Neither the First Supplemental Indenture, the Second
Supplemental Indenture, the Third Supplemental Indenture, the Fourth Supplemental Indenture, the Fifth Supplemental Indenture,
the Sixth Supplemental Indenture, nor the Seventh Supplemental Indenture is applicable to the Notes.

 

Sections 901(4) and
901(6) of the Base Indenture provide that without the consent of Holders of the Securities of any series issued under the Indenture,
the Company, when authorized by or pursuant to a Board Resolution, and the Trustee, at any time and from time to time, may enter
into one or more indentures supplemental to the Base Indenture in form reasonably satisfactory to the Trustee to (i) change or
eliminate any of the provisions of the Indenture when there is no Security Outstanding of any series created prior to the execution
of the supplemental indenture that is entitled to the benefit of such provision and (ii) establish the form or terms of Securities
of any series as permitted by Section 201 and Section 301 of the Base Indenture.

 

     

     

    

 

The Company desires
to establish the form and terms of the Notes and to modify, alter, supplement and change certain provisions of the Base Indenture
for the benefit of the Holders of the Notes (except as may be provided in a future supplemental indenture to the Indenture (each,
a “Future Supplemental Indenture”)).

 

The Company has duly
authorized the execution and delivery of this Eighth Supplemental Indenture to provide for the issuance of the Notes and all acts
and things necessary to make this Eighth Supplemental Indenture a valid, binding, and legal obligation of the Company and to constitute
a valid agreement of the Company, in accordance with its terms, have been done and performed.

 

NOW, THEREFORE, for
and in consideration of the premises and the purchase of the Notes by the Holders thereof, it is mutually agreed, for the equal
and proportionate benefit of all Holders of the Notes, as follows:

 

ARTICLE
I

TERMS OF THE NOTES

 

Section 1.01. Terms
of the Notes. The following terms relating to the Notes are hereby established:

 

(a) The
Notes shall constitute a series of Senior Securities having the title “4.375% Notes due 2026.” The Notes shall bear
a CUSIP number of 80349A AD1 and an ISIN number of US80349AAD19, as may be supplemented or replaced from time to time.

 

(b) The
aggregate principal amount of the Notes that may be initially authenticated and delivered under the Indenture (except for Notes
authenticated and delivered upon registration of, transfer of, or in exchange for, or in lieu of, other Notes pursuant to Sections
304, 305, 306, 906, 1107 or 1305 of the Base Indenture, and except for any Securities that, pursuant to Section 303 of the Base
Indenture, are deemed never to have been authenticated and delivered under the Indenture) shall be $50,000,000. Under a Board Resolution,
Officers’ Certificate pursuant to Board Resolutions or an indenture supplement, the Company may from time to time, without
the consent of the Holders of Notes, issue additional Notes (in any such case “Additional Notes”) having the same ranking
and the same interest rate, maturity and other terms as the Notes; provided that, if such Additional Notes are not fungible
with the Notes (or any other tranche of Additional Notes) for U.S. federal income tax purposes, then such Additional Notes will
have different CUSIP and ISIN numbers from the Notes (and any such other tranche of Additional Notes). Any Additional Notes and
the existing Notes will constitute a single series under the Indenture and all references to the relevant Notes herein shall include
the Additional Notes unless the context otherwise requires.

 

(c) The
entire outstanding principal of the Notes shall be payable on February 28, 2026 unless earlier redeemed or repurchased in accordance
with the provisions of this Eighth Supplemental Indenture.

 

    2 

     

    

 

(d) The
rate at which the Notes shall bear interest shall be 4.375% per annum. The date from which interest shall accrue on the Notes shall
be March 10, 2021, or the most recent Interest Payment Date to which interest has been paid or provided for; the Interest Payment
Dates for the Notes shall be February 28 and August 28 of each year, commencing August 28, 2021 (if an Interest Payment Date falls
on a day that is not a Business Day, then the applicable interest payment will be made on the next succeeding Business Day and
no additional interest will accrue as a result of such delayed payment); the initial interest period will be the period from and
including March 10, 2021, to, but excluding, the initial Interest Payment Date, and the subsequent interest periods will be the
periods from and including an Interest Payment Date to, but excluding, the next Interest Payment Date or the Stated Maturity, as
the case may be; the interest so payable, and punctually paid or duly provided for, on any Interest Payment Date, will be paid
to the Person in whose name the Note (or one or more Predecessor Securities) is registered at the close of business on the Regular
Record Date for such interest, which shall be February 15 and August 15 (whether or not a Business Day), as the case may be, next
preceding such Interest Payment Date. Payment of principal of (and premium, if any, on) and any such interest on the Notes will
be made at the office of the Trustee located at 60 Livingston Avenue, St. Paul, MN 55107, Attention: Saratoga Investment Corp.
(4.375% Notes Due 2026) and at such other address as designated by the Trustee, in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and private debts; provided, however, if
the holder of the Notes requests the Company to do so, the Company will pay any amount that becomes due on the Notes by wire transfer
of immediately available funds to an account at a bank in New York, New York (upon not less than 15 Business Days’ notice
prior to the time of payment); provided, further, however, that so long as the Notes are registered to Cede
& Co., such payment will be made by wire transfer in accordance with the procedures established by The Depository Trust Company
and the Trustee. Interest on the Notes will be computed on the basis of a 360-day year of twelve 30-day months.

 

(e) The
Notes shall be initially issuable in global form (each such Note, a “Global Note”). The Global Notes and the Trustee’s
certificate of authentication thereon shall be substantially in the form of Exhibit A to this Eighth Supplemental Indenture. Each
Global Note shall represent the aggregate amount of the outstanding Notes as shall be specified therein and each shall provide
that it shall represent the aggregate amount of outstanding Notes from time to time endorsed thereon and that the aggregate amount
of outstanding Notes represented thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges and
redemptions. Any endorsement of a Global Note to reflect the amount of any increase or decrease in the amount of outstanding Notes
represented thereby shall be made by the Trustee or the Security Registrar, in accordance with Sections 203 and 305 of the Base
Indenture.

 

(f) The
depositary for such Global Notes (the “Depositary”) shall be The Depository Trust Company, New York, New York. The
Security Registrar with respect to the Global Notes shall be the Trustee.

 

(g) The
Notes shall be defeasible pursuant to Section 1402 or Section 1403 of the Base Indenture. Covenant defeasance contained in Section
1403 of the Base Indenture shall apply to the covenants contained in Sections 1008, 1009 and 1010 of the Indenture. For the avoidance
of doubt, Article Four of the Base Indenture also applies to the Notes.

 

    3 

     

    

 

(h) The
Notes shall be redeemable pursuant to Section 1101 of the Base Indenture and as follows:

 

(i) The
Notes will be redeemable in whole or in part, at any time or from time to time, at the option of the Company, at a Redemption Price
equal to the greater of the following amounts, plus, in each case, accrued and unpaid interest to, but excluding, the Redemption
Date:

 

		(a)	100% of the principal amount of the Notes to be redeemed, or

 

		(b)	the sum of the present values of the remaining scheduled payments of principal and interest (exclusive
of accrued and unpaid interest to the Redemption Date) on the Notes to be redeemed, discounted to the Redemption Date on a semi-annual
basis (assuming a 360-day year consisting of twelve 30-day months) using the applicable Treasury Rate plus 50 basis points;

 

provided, however,
that if the Company redeems any Notes on or after November 28, 2025, the Redemption Price for the Notes will be equal to 100% of
the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the Redemption Date.

 

For purposes
of calculating the Redemption Price in connection with the redemption of the Notes, on any Redemption Date, the following terms
have the meanings set forth below:

 

“Comparable
Treasury Issue” means the United States Treasury security selected by the Reference Treasury Dealer as having a maturity
comparable to the remaining term of the Notes to be redeemed that would be utilized, at the time of selection and in accordance
with customary financing practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term
of the Notes being redeemed.

 

“Comparable
Treasury Price” means (1) the average of the Reference Treasury Dealer Quotations for the Redemption Date, after
excluding the highest and lowest Reference Treasury Dealer Quotations, or (2) if the Quotation Agent obtains fewer than four
such Reference Treasury Dealer Quotations, the average of all such quotations.

 

“Quotation
Agent” means a Reference Treasury Dealer selected by the Company.

 

“Reference
Treasury Dealer” means each of any four primary U.S. government securities dealers selected by the Company.

 

    4 

     

    

 

“Reference
Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average,
as determined by the Quotation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as
a percentage of its principal amount) quoted in writing to the Quotation Agent by such Reference Treasury Dealer at 3:30 p.m. New
York time on the third business day preceding such Redemption Date. All determinations made by any Reference Treasury Dealer, including
the Quotation Agent, with respect to determining the Redemption Price will be final and binding absent manifest error.

 

“Treasury
Rate” means, with respect to any Redemption Date, the rate per annum equal to the semi-annual equivalent yield-to-maturity
of the Comparable Treasury Issue (computed as of the third business day immediately preceding the redemption), assuming a price
for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for
such Redemption Date. The Redemption Price and the Treasury Rate will be determined by the Company.

 

(ii) Notice
of redemption shall be given in writing and mailed, first-class postage prepaid or by overnight courier guaranteeing next-day delivery,
to each Holder of the Notes to be redeemed, not less than thirty (30) nor more than sixty (60) days prior to the Redemption Date,
at the Holder’s address appearing in the Security Register. All notices of redemption shall contain the information set forth
in Section 1104 of the Base Indenture.

 

(iii) Any
exercise of the Company’s option to redeem the Notes will be done in compliance with the Indenture and the Investment Company
Act, to the extent applicable.

 

(iv) If
the Company elects to redeem only a portion of the Notes, the Trustee or, with respect to the Global Notes, the Depositary will
determine the method for selecting the particular Notes to be redeemed, in accordance with Section 1103 of the Indenture and the
Investment Company Act and the rules of any national securities exchange or quotation system on which the Notes are listed, in
each case to the extent applicable; provided, however, that no such partial redemption shall reduce the portion of the principal
amount of a Note not redeemed to less than $2,000.

 

(v) Unless
the Company defaults in payment of the Redemption Price, on and after the Redemption Date, interest will cease to accrue on the
Notes called for redemption hereunder.

 

(i) The
Notes shall not be subject to any sinking fund pursuant to Section 1201 of the Base Indenture.

 

(j) The
Notes shall be issuable in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof.

 

(k) Holders
of the Notes will not have the option to have the Notes repaid prior to the Stated Maturity other than in accordance with Article
Thirteen of the Indenture.

 

(l) The
Notes are hereby designated as “Senior Securities” under the Indenture.

 

    5 

     

    

 

ARTICLE
II

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

 

Section 2.01. Except
as may be provided in a Future Supplemental Indenture, for the benefit of the Holders of the Notes but no other series of Securities
under the Indenture, whether now or hereafter issued and Outstanding, Article One of the Base Indenture shall be amended by adding
the following defined terms to Section 101 in appropriate alphabetical sequence, as follows:

 

“‘Below
Investment Grade Rating Event’ means the Notes are downgraded below Investment Grade by the Rating Agency on any date
from the date of the public notice of an arrangement that results in a Change of Control until the end of the 60-day period following
public notice of the occurrence of a Change of Control (which period shall be extended so long as the rating of the Notes is under
publicly announced consideration for possible downgrade by the Rating Agency); provided that a Below Investment
Grade Rating Event otherwise arising by virtue of a particular reduction in rating shall not be deemed to have occurred in respect
of a particular Change of Control (and thus shall not be deemed a Below Investment Grade Rating Event for purposes of the definition
of Change of Control Repurchase Event hereunder) if the Rating Agency does not announce or publicly confirm or inform the Trustee
in writing at the Company’s request that the reduction was the result, in whole or in part, of any event or circumstance
comprised of or arising as a result of, or in respect of, the applicable Change of Control (whether or not the applicable Change
of Control shall have occurred at the time of the Below Investment Grade Rating Event).”

 

“‘Change
of Control’ means the occurrence of any of the following:

 

(i) the direct or indirect
sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation) in one or a series of related
transactions, of all or substantially all of the assets of the Company and its Controlled Subsidiaries taken as a whole to any
“person” or “group” (as those terms are used in Section 13(d)(3) of the Exchange Act), other than
to any Permitted Holders; provided that, for the avoidance of doubt, a pledge of assets pursuant to any secured
debt instrument of the Company or its Controlled Subsidiaries shall not be deemed to be any such sale, lease, transfer, conveyance
or disposition;

 

(ii) the consummation
of any transaction (including, without limitation, any merger or consolidation) the result of which is that any “person”
or “group” (as those terms are used in Section 13(d)(3) of the Exchange Act) (other than any Permitted Holders)
becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 promulgated under the Exchange Act), directly
or indirectly, of more than 50% of the outstanding Voting Stock of the Company, measured by voting power rather than number of
shares; or

 

(iii) the approval
by the Company’s stockholders of any plan or proposal relating to the liquidation or dissolution of the Company.”

 

“‘Change
of Control Repurchase Event’ means the occurrence of a Change of Control and a Below Investment Grade Rating Event.”

 

    6 

     

    

 

“‘Controlled
Subsidiary’ means any Subsidiary of the Company, 50% or more of the outstanding equity interests of which are owned by
the Company and its direct or indirect Subsidiaries and of which the Company possesses, directly or indirectly, the power to direct
or cause the direction of the management or policies, whether through the ownership of voting equity interests, by agreement or
otherwise.”

 

“‘Egan-Jones’
means Egan-Jones Ratings Company or any successor thereto.”

 

“‘Exchange
Act’ means the Securities Exchange Act of 1934, as amended, and any statute successor thereto.”

 

“‘GAAP’
means generally accepted accounting principles in the United States set forth in the opinions and pronouncements of the Accounting
Principles Board of the American Institute of Certified Public Accountants, the opinions and pronouncements of the Public Company
Accounting Oversight Board and the statements and pronouncements of the Financial Accounting Standards Board or in such other statements
by such other entity as have been approved by a significant segment of the accounting profession in the United States, which are
in effect from time to time.”

 

“‘Investment
Company Act’ means the Investment Company Act of 1940, as amended, and the rules, regulations and interpretations promulgated
thereunder, to the extent applicable, and any statute successor thereto.”

 

“‘Investment
Grade’ means a rating of BBB- or better by Egan-Jones (or its equivalent under any successor rating categories of Egan-Jones)
(or, if such Rating Agency ceases to rate the Notes for reasons outside of the Company’s control, the equivalent investment
grade credit rating from any Rating Agency selected by the Company as a replacement Rating Agency).”

 

“‘Permitted
Holders’ means (i) the Company and (ii) one or more of the Company’s Controlled Subsidiaries.

 

“‘Rating
Agency’ means:

 

(1) Egan-Jones; and

 

(2) if Egan-Jones ceases
to rate the Notes or fails to make a rating of the Notes publicly available for reasons outside of the Company’s control,
a “nationally recognized statistical rating organization” as defined in Section (3)(a)(62) of the Exchange Act
selected by the Company as a replacement agency for Egan-Jones.”

 

“‘Significant
Subsidiary’ means any Subsidiary that would be a “significant subsidiary” as defined in Article 1, Rule 1-02
of Regulation S-X under the Exchange Act, as such regulation is in effect on the date of this Indenture (but excluding any Subsidiary
which is (a) a non-recourse or limited recourse Subsidiary, (b) a bankruptcy remote special purpose vehicle or (c) is
not consolidated with the Company for purposes of GAAP).”

 

    7 

     

    

 

“‘Voting
Stock’ as applied to stock of any person, means shares, interests, participations or other equivalents in the equity
interest (however designated) in such person having ordinary voting power for the election of a majority of the directors (or the
equivalent) of such person, other than shares, interests, participations or other equivalents having such power only by reason
of the occurrence of a contingency.”

 

Section 2.02. Except
as may be provided in a Future Supplemental Indenture, for the benefit of the Holders of the Notes but no other series of Securities
under the Indenture, whether now or hereafter issued and Outstanding, Article One of the Base Indenture shall be amended by amending
the definition of “Subsidiary” in Section 101 to add the following sentence at the end of such definition:

 

“In
addition, for purposes of this definition, ‘Subsidiary’ shall exclude any investments held by the Company in the ordinary
course of business which are not, under GAAP, consolidated on the financial statements of the Company and its Subsidiaries.”

 

Section 2.03. Except
as may be provided in a Future Supplemental Indenture, for the benefit of the Holders of the Notes but no other series of Securities
under the Indenture, whether now or hereafter issued and Outstanding, Section 104 of the Base Indenture shall be amended by replacing
clause (d) with the following:

 

“(d)
If the Company shall solicit from the Holders of Registered Securities any request, demand, authorization, direction, notice, consent,
waiver or other Act, the Company may, at its option, in or pursuant to a Board Resolution, fix in advance a record date for the
determination of Holders entitled to give such request, demand, authorization, direction, notice, consent, waiver or other Act,
but the Company shall have no obligation to do so. Notwithstanding TIA Section 316(c), such record date shall be the record
date specified in or pursuant to such Board Resolution, which shall be a date not earlier than the date 30 days prior to the first
solicitation of Holders generally in connection therewith and not later than the date such solicitation is completed. If such a
record date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other Act may be given before
or after such record date, but only the Holders of record at the close of business on such record date shall be deemed to be Holders
for the purposes of determining whether Holders of the requisite proportion of Outstanding Securities have authorized or agreed
or consented to such request, demand, authorization, direction, notice, consent, waiver or other Act, and for that purpose the
Outstanding Securities shall be computed as of such record date; provided that no such authorization, agreement or consent by the
Holders on such record date shall be deemed effective unless it shall become effective pursuant to the provisions of this Indenture
not later than eleven months after the record date.”

 

    8 

     

    

 

ARTICLE
III

REMEDIES

 

Section 3.01. Except
as may be provided in a Future Supplemental Indenture, for the benefit of the Holders of the Notes but no other series of Securities
under the Indenture, whether now or hereafter issued and Outstanding, Section 501 of the Base Indenture shall be amended by adding
the following clause (9) thereto:

 

“(9) default
by the Company or any of its Significant Subsidiaries with respect to any mortgage, agreement or other instrument under which there
may be outstanding, or by which there may be secured or evidenced, any indebtedness for money borrowed in excess of $50 million
in the aggregate of the Company and/or any such Significant Subsidiary, whether such indebtedness now exists or shall hereafter
be created (i) resulting in such indebtedness becoming or being declared due and payable or (ii) constituting a failure
to pay the principal or interest of any such debt when due and payable at its stated maturity, upon required repurchase, upon declaration
of acceleration or otherwise, unless, in either case, such indebtedness is discharged, or such acceleration is rescinded, stayed
or annulled, within a period of 30 calendar days after written notice of such failure is given to the Company by the Trustee or
to the Company and the Trustee by the holders of at least 25% in aggregate principal amount of the Notes then Outstanding.”

 

Section 3.02. Except
as may be provided in a Future Supplemental Indenture, for the benefit of the Holders of the Notes but no other series of Securities
under the Indenture, whether now or hereafter issued and Outstanding, Section 502 of the Base Indenture shall be amended by replacing
the first paragraph thereof with the following:

 

“If
an Event of Default (other than an Event of Default under Section 501(5) or Section 501(6)) with respect to the Notes at the time
Outstanding occurs and is continuing, then and in every such case the Trustee or the Holders of not less than 25% in principal
amount of the Outstanding Notes may (and the Trustee shall at the written request of such Holders) declare the principal of all
the Notes to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by the Holders),
and upon any such declaration such principal or specified portion thereof shall become immediately due and payable, but does not
entitle any Holder to any redemption payout or redemption premium. If an Event of Default under Section 501(5) or Section 501(6)
occurs, the entire principal amount of all the Notes will automatically become due and immediately payable.”

 

ARTICLE
IV

COVEnANTS

 

Section 4.01. Except
as may be provided in a Future Supplemental Indenture, for the benefit of the Holders of the Notes but no other series of Securities
under the Indenture, whether now or hereafter issued and Outstanding, Article Ten of the Base Indenture shall be amended by adding
the following new Sections 1008, 1009 and 1010 thereto, each as set forth below:

 

“Section 1008.
Section 18(a)(1)(A) of the Investment Company Act.

 

The Company hereby
agrees that for the period of time during which the Notes are Outstanding, the Company will not violate Section 18(a)(1)(A) as
modified by Section 61(a)(2) of the Investment Company Act or any successor provisions thereto, whether or not the Company continues
to be subject to such provisions of the Investment Company Act, but giving effect, in either case, to any exemptive relief granted
to the Company by the Commission.”

 

    9 

     

    

 

“Section 1009.
Section 18(a)(1)(B) of the Investment Company Act.

 

The Company hereby
agrees that for the period of time during which Notes are Outstanding, the Company will not declare any dividend (except a dividend
payable in the Company’s stock), or declare any other distribution, upon a class of the Company’s capital stock, or
purchase any such capital stock, unless, in every such case, at the time of the declaration of any such dividend or distribution,
or at the time of any such purchase, the Company has an asset coverage (as defined in the Investment Company Act) of at least the
threshold specified in Section 18(a)(1)(B) as modified by such provisions of Section 61(a) of the Investment Company Act as may
be applicable to the Company from time to time or any successor provisions thereto, as such obligation may be amended or superseded,
after deducting the amount of such dividend, distribution or purchase price, as the case may be, and in each case giving effect
to (i) any exemptive relief granted to the Company by the Commission, and (ii) any no-action relief granted by the Commission to
another business development company (or to the Company if it determines to seek such similar no-action or other relief) permitting
the business development company to declare any cash dividend or distribution notwithstanding the prohibition contained in Section
18(a)(1)(B) as modified by such provisions of Section 61(a) of the Investment Company Act as may be applicable to the Company from
time to time, as such obligation may be amended or superseded, in order to maintain such business development company’s status
as a regulated investment company under Subchapter M of the Code.”

 

“Section 1010.
Commission Reports and Reports to Holders.

 

If, at any time, the
Company is not subject to the reporting requirements of Sections 13 or 15(d) of the Exchange Act to file any periodic reports with
the Commission, the Company agrees to furnish to the Holders of the Notes and the Trustee for the period of time during which the
Notes are Outstanding: (i) within 90 days after the end of the each fiscal year of the Company, audited annual consolidated financial
statements of the Company and (ii) within 45 days after the end of each fiscal quarter of the Company (other than the Company’s
fourth fiscal quarter), unaudited interim consolidated financial statements of the Company. All such financial statements shall
be prepared, in all material respects, in accordance with applicable GAAP.”

 

ARTICLE
V

REDEMPTION OF SECURITIES

 

Section 5.01. Except
as may be provided in a Future Supplemental Indenture, for the benefit of the Holders of the Notes but no other series of Securities
under the Indenture, whether now or hereafter issued and Outstanding, Section 1103 of the Base Indenture shall be amended by replacing
the first paragraph thereof with the following:

 

“If
less than all the Securities of any series issued on the same day with the same terms are to be redeemed, the particular Securities
to be redeemed shall be selected by the Trustee, or by the Depositary in the case of global Securities, in compliance with the
requirements of DTC, from the Outstanding Securities of such series issued on such date with the same terms not previously called
for redemption, in compliance with the requirements of the principal national securities exchange on which the Securities are listed
(if the Securities are listed on any national securities exchange), or if the Securities are not held through DTC or listed on
any national securities exchange, or DTC prescribed no method of selection, by such method as the Trustee shall deem fair and appropriate
and subject to and otherwise in accordance with the procedures of the applicable Depositary; provided that such method complies
with the rules of any national securities exchange or quotation system on which the Securities are listed (which rules shall be
certificated to the Trustee by the Company or such national securities exchange at the Trustee’s request), and may provide
for the selection for redemption of portions (equal to the minimum authorized denomination for Securities of that series or any
integral multiple thereof) of the principal amount of Securities of such series of a denomination larger than the minimum authorized
denomination for Securities of that series; provided, however, that no such partial redemption shall reduce the portion
of the principal amount of a Security not redeemed to less than the minimum authorized denomination for Securities of such series.”

 

    10 

     

    

 

ARTICLE
VI

REPAYMENT AT THE OPTION OF HOLDERS

 

Section 6.01. Except
as may be provided in a Future Supplemental Indenture, for the benefit of the Holders of the Notes but no other series of Securities
under the Indenture, whether now or hereafter issued and Outstanding, Article Thirteen of the Base Indenture shall be amended
by replacing Sections 1301 to 1305 with the following:

 

“Section 1301.   
Change of Control Repurchase Event.

 

If a Change
of Control Repurchase Event occurs, unless the Company shall have exercised its right to redeem the Notes in full, the Company
shall make an offer to each Holder of Notes to repurchase all or any part (in minimum denominations of $2,000 and integral multiples
of $1,000 principal amount) of that Holder’s Notes at a repurchase price in cash equal to 100% of the aggregate principal
amount of Notes repurchased plus any accrued and unpaid interest on the Notes repurchased to, but excluding, the date of repurchase.
Within 30 days following any Change of Control Repurchase Event or, at the Company’s option, prior to any Change of
Control, but after the public announcement of the Change of Control, the Company shall mail a notice to each Holder describing
the transaction or transactions that constitute or may constitute the Change of Control Repurchase Event and offering to repurchase
Notes on the payment date specified in the notice, which date shall be no earlier than 30 days and no later than 60 days
from the date such notice is mailed. The notice shall, if mailed prior to the date of consummation of the Change of Control, state
that the offer to purchase is conditioned on the Change of Control Repurchase Event occurring on or prior to the payment date specified
in the notice. The Company shall comply with the requirements of Rule 14e-1 promulgated under the Exchange Act and any other
securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with the repurchase
of the Notes as a result of a Change of Control Repurchase Event. To the extent that the provisions of any securities laws or regulations
conflict with this Section 1301, the Company shall comply with the applicable securities laws and regulations and shall not
be deemed to have breached its obligations under this Section 1301 by virtue of such conflict.

 

On the Change
of Control Repurchase Event payment date, subject to extension if necessary to comply with the provisions of the Investment Company
Act, the Company will, to the extent lawful:

  

(a) accept
for payment all Notes or portions of Notes properly tendered pursuant to its offer;

 

(b) deposit
with the Paying Agent an amount equal to the aggregate purchase price in respect of all Notes or portions of Notes properly tendered;
and

 

(c)  deliver
or cause to be delivered to the Trustee the Notes properly accepted, together with an Officers’ Certificate stating the aggregate
principal amount of Notes being purchased by the Company.

 

    11 

     

    

 

The Paying
Agent will promptly remit to each holder of Notes properly tendered the purchase price for the Notes, and upon receipt of a Company
Order, the Trustee will promptly authenticate and mail (or cause to be transferred by book-entry) to each holder a new Note equal
in principal amount to any unpurchased portion of any Notes surrendered; provided that each new Note will be in a minimum
principal amount of $2,000 or an integral multiple of $1,000 in excess thereof.

 

If any Repayment
Date upon a Change of Control Repurchase Event falls on a day that is not a Business Day, then the required payment will be made
on the next succeeding Business Day and no additional interest will accrue as a result of such delayed payment.

 

The Company
will not be required to make an offer to repurchase the Notes upon a Change of Control Repurchase Event if a third party makes
an offer in respect of the Notes in the manner, at the times and otherwise in compliance with the requirements for an offer made
by the Company and such third party purchases all Notes properly tendered and not withdrawn under its offer.”

 

ARTICLE
VII

MISCELLANEOUS

 

Section 7.01. This
Eighth Supplemental Indenture and the Notes shall be governed by and construed in accordance with the law of the State of New York,
without regard to principles of conflicts of laws. This Eighth Supplemental Indenture is subject to the provisions of the Trust
Indenture Act that are required to be part of the Indenture and shall, to the extent applicable, be governed by such provisions.

 

Section 7.02. In
case any provision in this Eighth Supplemental Indenture or in the Notes shall be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

Section 7.03. This
Eighth Supplemental Indenture may be executed in counterparts, each of which will be an original, but such counterparts will together
constitute but one and the same Eighth Supplemental Indenture. The exchange of copies of this Eighth Supplemental Indenture and
of signature pages by facsimile, .pdf transmission, email or other electronic means shall constitute effective execution and delivery
of this Eighth Supplemental Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile, .pdf transmission,
email or other electronic means shall be deemed to be their original signatures for all purposes. For the avoidance of doubt, all
notices, approvals, consents, requests and any communications hereunder or with respect to this Eighth Supplemental Indenture must
be in writing (provided that any communication sent to Trustee hereunder must be in the form of a document that is signed manually
or by way of a digital signature provided by DocuSign or Adobe (or such other digital signature provider as specified in writing
to Trustee by the authorized representative), in English.  The Company agrees to assume all risks arising out of the use of
using digital signatures and electronic methods to submit communications to Trustee, including without limitation the risk of Trustee
acting on unauthorized instructions, and the risk of interception and misuse by third parties.

 

    12 

     

    

 

Section 7.04. The
Base Indenture, as supplemented and amended by this Eighth Supplemental Indenture, is in all respects ratified and confirmed, and
the Base Indenture and this Eighth Supplemental Indenture shall be read, taken and construed as one and the same instrument with
respect to the Notes. All provisions included in this Eighth Supplemental Indenture supersede any conflicting provisions included
in the Base Indenture with respect to the Notes, unless not permitted by law. The Trustee accepts the trusts created by the Base
Indenture, as supplemented by this Eighth Supplemental Indenture, and agrees to perform the same upon the terms and conditions
of the Base Indenture, as supplemented by this Eighth Supplemental Indenture.

 

Section 7.05. The
provisions of this Eighth Supplemental Indenture shall become effective as of the date hereof.

 

Section 7.06. Notwithstanding
anything else to the contrary herein, the terms and provisions of this Eighth Supplemental Indenture shall apply only to the Notes
and shall not apply to any other series of Securities under the Indenture and this Eighth Supplemental Indenture shall not and
does not otherwise affect, modify, alter, supplement or change the terms and provisions of any other series of Securities under
the Indenture, whether now or hereafter issued and Outstanding.

 

Section 7.07. The
recitals contained herein and in the Notes shall be taken as the statements of the Company, and the Trustee assumes no responsibility
for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Eighth Supplemental Indenture,
the Notes or any Additional Notes, except that the Trustee represents that it is duly authorized to execute and deliver this Eighth
Supplemental Indenture, authenticate the Notes and any Additional Notes and perform its obligations hereunder. The Trustee shall
not be accountable for the use or application by the Company of the Notes or any Additional Notes or the proceeds thereof. All
of the provisions contained in the Indenture in respect of the rights, privileges, immunities, powers, and duties of the Trustee
shall be applicable in respect of this Eighth Supplemental Indenture as fully and with like force and effect as though fully set
forth in full herein.

 

    13 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Eighth Supplemental Indenture to be duly executed as of the date first above written.

 

	 	SARATOGA INVESTMENT CORP.
	 	 	 
	 	By:	/s/ Henri J. Steenkamp
	 	Name:	Henri J. Steenkamp
	 	Title:	Chief Financial Officer,

Chief Compliance Officer, Treasurer and Secretary

 

	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee
	 	 	 
	 	By:	/s/ Karen R. Beard
	 	Name:	Karen R. Beard
	 	Title:	Vice President

 

[Signature page to Eighth Supplemental
Indenture]

 

     

     

    

 

Exhibit A – Form of Global Note

 

This Security is a Global Note within the
meaning of the Indenture hereinafter referred to and is registered in the name of The Depository Trust Company or a nominee thereof.
This Security may not be exchanged in whole or in part for a Security registered, and no transfer of this Security in whole or
in part may be registered, in the name of any Person other than The Depository Trust Company or a nominee thereof, except in the
limited circumstances described in the Indenture.

 

Unless this certificate is presented by
an authorized representative of The Depository Trust Company to the issuer or its agent for registration of transfer, exchange
or payment and such certificate issued in exchange for this certificate is registered in the name of Cede & Co., or such other
name as requested by an authorized representative of The Depository Trust Company, any transfer, pledge or other use hereof for
value or otherwise by or to any person is wrongful, as the registered owner hereof, Cede & Co., has an interest herein.

 

Saratoga Investment Corp.

 

	No.	$
	 	CUSIP No. 80349A AD1
	 	ISIN No. US80349AAD19

 

4.375% Notes due 2026

 

Saratoga Investment
Corp., a corporation duly organized and existing under the laws of Maryland (herein called the “Company,” which term
includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to Cede
& Co., or registered assigns, the principal sum of                  (U.S. $               ) on February 28, 2026, and to pay interest thereon from March 10,
2021 or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually on February
28 and August 28 in each year, commencing August 28, 2021, at the rate of 4.375% per annum, until the principal hereof is paid
or made available for payment. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date
will, as provided in such Indenture, be paid to the Person in whose name this Security is registered at the close of business on
the Regular Record Date for such interest, which shall be February 15 and August 15 (whether or not a Business Day), as the case
may be, next preceding such Interest Payment Date. Any such interest not so punctually paid or duly provided for will forthwith
cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security
is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee,
which shall be not more than 15 days and not less than 10 days prior to the date of the proposed payment, and notice whereof shall
be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time
in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities of this series
may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture. This Security
may be issued as part of a series.

 

Payment of the principal
of (and premium, if any, on) and any such interest on this Security will be made at the office of the Trustee located at 60 Livingston
Avenue, St. Paul, MN 55107, Attention: Saratoga Investment Corp. (4.375% Notes Due 2026) and at such other address as designated
by the Trustee, in such coin or currency of the United States of America as at the time of payment is legal tender for payment
of public and private debts; provided, however, if the holder of the Notes requests the Company to do so, the Company will
pay any amount that becomes due on the Notes by wire transfer of immediately available funds to an account at a bank in New York,
New York (upon not less than 15 Business Days’ notice prior to the time of payment); provided, further, however, that
so long as this Security is registered to Cede & Co., such payment will be made by wire transfer in accordance with the procedures
established by The Depository Trust Company and the Trustee.

 

Reference is hereby
made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

 

Unless the certificate
of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Security
shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

    Exhibit A – 1

     

    

 

IN WITNESS WHEREOF, the Company has caused
this instrument to be duly executed.

 

Dated:

 

	 	SARATOGA INVESTMENT CORP.
	 	 	 
	 	By:	                     
	 	Name:	 
	 	Title:	 

 

	Attest	 
	 	 	 
	By:	    	 
	Name:	   	 
	Title:	 	 

 

    Exhibit A – 2

     

    

 

This is one of the Securities of the series
designated therein referred to in the within-mentioned Indenture.

 

Dated:

 

	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee
	 	 	 
	 	By:	 
	 		Authorized Signatory

 

    Exhibit A – 3

     

    

 

Saratoga Investment Corp.

4.375% Notes due 2026

 

This Security is one
of a duly authorized issue of Senior Securities of the Company (herein called the “Securities”), issued and to be issued
in one or more series under an Indenture, dated as of May 10, 2013 (herein called the “Base Indenture”, which term
shall have the meaning assigned to it in such instrument), between the Company and U.S. Bank National Association, as Trustee (herein
called the “Trustee”, which term includes any successor trustee under the Base Indenture), and reference is hereby
made to the Base Indenture for a statement of the respective rights, limitations of rights, duties and immunities thereunder of
the Company, the Trustee, and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated
and delivered, as supplemented by the Eighth Supplemental Indenture relating to the Securities, dated March 10, 2021, by and between
the Company and the Trustee (herein called the “Eighth Supplemental Indenture”; the Eighth Supplemental Indenture and
together with the Base Indenture, collectively are herein called the “Indenture”). In the event of any conflict between
the Base Indenture and the Eighth Supplemental Indenture, the Eighth Supplemental Indenture shall govern and control.

 

This Security is one
of the series designated on the face hereof, which series is initially limited in aggregate principal amount to $                    . Under a Board
Resolution, Officers’ Certificate pursuant to Board Resolutions or an indenture supplement, the Company may from time to
time, without the consent of the Holders of Securities, issue additional Securities of this series (in any such case “Additional
Securities”) having the same ranking and the same interest rate, maturity and other terms as the Securities; provided
that, if such Additional Securities are not fungible with the Securities (or any other tranche of Additional Securities for U.S.
federal income tax purposes), then such Additional Securities will have different CUSIP and ISIN numbers from the Securities (and
any such other tranche of Additional Securities). Any Additional Securities and the existing Securities will constitute a single
series under the Indenture and all references to the relevant Securities herein shall include the Additional Securities unless
the context otherwise requires. The aggregate amount of outstanding Securities represented hereby may from time to time be reduced
or increased, as appropriate, to reflect exchanges and redemptions.

 

The Securities of this
series are subject to redemption in whole or in part, at any time or from time to time, at the option of the Company, at a Redemption
Price per Security equal to the greater of the following amounts, plus, in each case, accrued and unpaid interest to, but excluding,
the Redemption Date:

 

		(a)	100% of the principal amount of the Securities to
be redeemed, or

 

		(b)	the sum of the present values of the remaining scheduled payments of principal and interest (exclusive
of accrued and unpaid interest to the Redemption Date) on the Securities to be redeemed, discounted to the Redemption Date on a
semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) using the applicable Treasury Rate plus 50 basis
points;

 

provided, however, that
if the Company redeems any Securities on or after November 28, 2025, the Redemption Price for the Securities will be equal to 100%
of the principal amount of the Securities to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the Redemption
Date.

 

    1 

     

    

 

For purposes of calculating
the Redemption Price in connection with the redemption of the Securities, on any Redemption Date, the following terms have the
meanings set forth below:

 

 

“Comparable
Treasury Issue” means the United States Treasury security selected by the Reference Treasury Dealer as having a maturity
comparable to the remaining term of the Securities to be redeemed that would be utilized, at the time of selection and in accordance
with customary financing practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term
of the Securities being redeemed.

 

“Comparable
Treasury Price” means (1) the average of the Reference Treasury Dealer Quotations for the Redemption Date, after
excluding the highest and lowest Reference Treasury Dealer Quotations, or (2) if the Quotation Agent obtains fewer than four
such Reference Treasury Dealer Quotations, the average of all such quotations.

 

“Quotation
Agent” means a Reference Treasury Dealer selected by the Company.

 

“Reference
Treasury Dealer” means each of any four primary U.S. government securities dealers selected by the Company.

 

“Reference
Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average,
as determined by the Quotation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as
a percentage of its principal amount) quoted in writing to the Quotation Agent by such Reference Treasury Dealer at 3:30 p.m. New
York time on the third business day preceding such Redemption Date. All determinations made by any Reference Treasury Dealer, including
the Quotation Agent, with respect to determining the Redemption Price will be final and binding absent manifest error.

 

“Treasury
Rate” means, with respect to any Redemption Date, the rate per annum equal to the semi-annual equivalent yield-to-maturity
of the Comparable Treasury Issue (computed as of the third business day immediately preceding the redemption), assuming a price
for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for
such Redemption Date. The Redemption Price and the Treasury Rate will be determined by the Company.

 

Notice of redemption
shall be given in writing and mailed, first-class postage prepaid or by overnight courier guaranteeing next-day delivery, to each
Holder of the Securities to be redeemed, not less than thirty (30) nor more than sixty (60) days prior to the Redemption Date,
at the Holder’s address appearing in the Security Register. All notices of redemption shall contain the information set forth
in Section 1104 of the Base Indenture.

 

Any exercise of the
Company’s option to redeem the Securities will be done in compliance with the Indenture and the Investment Company Act, to
the extent applicable.

 

    2 

     

    

 

If the Company elects
to redeem only a portion of the Securities, the Trustee or, with respect to global Securities, the Depositary will determine the
method for selecting the particular Securities to be redeemed, in accordance with Section 1.01 of the Eighth Supplemental Indenture
and Section 1103 of the Indenture. In the event of redemption of this Security in part only, a new Security or Securities of this
series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation
hereof.

 

Unless the Company
defaults in payment of the Redemption Price, on and after the Redemption Date, interest will cease to accrue on the Securities
called for redemption. Holders will have the right to require the Company to repurchase their Securities upon the occurrence of
a Change of Control Repurchase Event as set forth in the Indenture.

 

The Indenture contains
provisions for defeasance at any time of the entire indebtedness of this Security or certain restrictive covenants and Events of
Default with respect to this Security, in each case upon compliance with certain conditions set forth in the Indenture.

 

If an Event of Default
with respect to Securities of this series shall occur and be continuing (other than Events of Default under Section 501(5) or Section
501(6) of the Indenture), the principal of the Securities of this series may be declared due and payable in the manner and with
the effect provided in the Indenture. If an Event of Default under Section 501(5) or Section 501(6) of the Indenture occurs the
entire principal amount of the Securities of this series will automatically become due and immediately payable.

 

The Indenture permits,
with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company
and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and
the Trustee with the consent of the Holders of not less than a majority in principal amount of the Securities at the time Outstanding
of each series to be affected. The Indenture also contains provisions permitting the Holders of specified percentages in principal
amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to
waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon
all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor
or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.

 

As provided in and
subject to the provisions of the Indenture, the Holder of this Security shall not have the right to institute any proceeding with
respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder
shall have previously given the Trustee written notice of a continuing Event of Default with respect to the Securities of this
series, the Holders of not less than 25% in principal amount of the Securities of this series at the time Outstanding shall have
made written request to the Trustee to institute proceedings in respect of such Event of Default as Trustee and offered the Trustee
indemnity, security, or both reasonably satisfactory to the Trustee, against the costs, expenses and liabilities to be incurred
in compliance with such request, and the Trustee shall not have received from the Holders of a majority in principal amount of
Securities of this series at the time Outstanding a direction inconsistent with such request, and shall have failed to institute
any such proceeding, for sixty (60) days after receipt of such notice, request and offer of indemnity. The foregoing shall not
apply to any suit instituted by the Holder of this Security for the enforcement of any payment of principal hereof or any premium
or interest hereon on or after the respective due dates expressed herein.

 

    3 

     

    

 

No reference herein
to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the principal of and any premium and interest on this Security at the times, place and rate,
and in the coin or currency, herein prescribed.

 

As provided in the
Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable in the Security Register,
upon surrender of this Security for registration of transfer at the office or agency of the Company in any place where the principal
of and any premium and interest on this Security are payable, duly endorsed by, or accompanied by a written instrument of transfer
in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized
in writing, and thereupon one or more new Securities of this series and of like tenor, of authorized denominations and for the
same aggregate principal amount, will be issued to the designated transferee or transferees.

 

The Securities of this
series are issuable only in registered form without coupons in minimum denominations of $2,000 and any integral multiples of $1,000
in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series
are exchangeable for a like aggregate principal amount of Securities of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same.

 

No service charge shall
be made for any such registration of transfer or exchange of Securities, but the Company or the Trustee may require payment of
a sum sufficient to cover any tax or other governmental charge payable in connection therewith.

 

Prior to due presentment
of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee shall treat
the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue,
and none of the Company, the Trustee or any agent thereof shall be affected by notice to the contrary.

 

All terms used in this
Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture.

 

To the extent any provision
of this Security conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling.

 

The Indenture and this
Security shall be governed by and construed in accordance with the laws of the State of New York, without regard to principles
of conflicts of laws.

 

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00323-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00323-of-00352.parquet"}]]