Document:

Exhibit 10.2

  

	 	 

 

April 21, 2015

 

Campus Crest Communities, Inc.

2100 Rexford Road

Charlotte, NC 28211 - 3484

 

 

Dear Board of Directors:

 

This letter confirms and sets forth the
terms and conditions of the engagement between Alvarez & Marsal North America, LLC (“A&M”) and Campus
Crest Communities, Inc., and its assigns and successors (the “Company”), including the scope of the services
to be performed and the basis of compensation for those services. Upon execution of this letter by each of the parties below and
receipt of the retainer described below, this letter will constitute an agreement between the Company and A&M (the “Agreement”).

 

		1.	Description of Services

 

		(a)	Officers. In connection with this engagement, A&M shall make available to the Company:

 

		(i)	David Coles to serve as the Chief Executive Officer
(the “CEO”); and

 

		(ii)	John Makuch to serve as the Chief Financial Officer (the
“CFO”); and

 

		(iii)	Upon the mutual agreement of A&M and the Company,
A&M will provide additional employees of A&M and/or its affiliates and wholly-owned subsidiaries (“Additional
Personnel”) as required (collectively, with the CEO and CFO, the “Engagement Personnel”), to assist
the CEO and CFO in the execution of the duties set forth more fully herein.

 

		(b)	Duties.

 

		(i)	The CEO shall perform such duties and responsibilities
as is customary of a chief executive officer of a similar size and operations, including (i) responsibility for the Company’s
support and ongoing evaluation of strategic alternatives, a process underway with Moelis & Co.; (ii) leadership to the executive
management team including communicating appropriate operational and financial goals, establishing an appropriate cadence of management
meetings; (iii) interaction with the Company’s Board of Directors and any special committees established for specific purposes;
(iv) work alongside the Company’s Chief Investment Officer in communicating with the Company’s external stakeholders,
analyzing and negotiating investments including real estate properties, Joint Venture arrangements and financing relationships;
(v) appropriate actions relating to filings and documents as required by applicable federal and state securities laws, and such
other duties and responsibilities typically associated with the officer role of CEO;

 

    	 

    	 

    

 

Campus Crest Communities, Inc.

April 21, 2015

 

		(ii)	The CFO shall perform such duties and responsibilities
as is customary of a chief financial officer of a company of similar size and operations, including: (i) responsibility for the
Company’s finance, controller, tax and treasury functions; (ii) appropriate interaction with the internal audit function;
and (iii) appropriate actions relating to filings and documents as required by applicable federal and state securities laws, and
such other duties and responsibilities typically associated with the officer role of CFO;

 

		(iii)	The Engagement Personnel shall assist in the identification
(and implementation) of cost reduction, system, process, procedure and operations improvement opportunities, development/maintenance
of key operational and financial dashboards;

 

		(iv)	The Engagement Personnel will assist in the Board’s
negotiations and communications with the Company’s activist shareholders

 

		(v)	The CEO and CFO shall play substantive roles in communications
with the Company’s stakeholders with respect to the Company’s financial and operational matters; and

 

		(vi)	The Engagement Personnel shall perform such other services
as requested or directed by the Board of Directors of the Company (the “Board”) or other Company personnel as authorized
by the Board, and agreed to by A&M that is not duplicative of work others are performing for the Company.

 

		(vii)	The CEO, CFO and the Additional Personnel shall comply
with the Company’s Code of Business Conduct and other workplace standards requirements and standards as such code of conduct
and standards are supplied by the Company to the CEO, CFO and the Additional Personnel in writing.

 

		(c)	The Engagement Personnel shall report to the Board or its designee.

 

		(d)	The Engagement Personnel will continue to be employed by A&M and, while rendering services to the Company, will continue
to work with other personnel at A&M in connection with unrelated matters that will not unduly interfere with the services rendered
by the Engagement Personnel pursuant to this Agreement; provided, however, that the CEO and CFO shall be full time during the term
of this Agreement (though they may attend to internal A&M and marketing matters as required). With respect to the Company,
however, the Engagement Personnel shall operate under the direction of the Board (or its designee) and A&M shall have no liability
to the Company for any acts or omissions of the Engagement Personnel related to the performance or non-performance of services
at the direction of the Board (or such designee) and consistent with the requirements of the Engagement and this Agreement.

 

 

 

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		(e)	The Company, the CEO, the CFO, the Additional Personnel and A&M are and shall remain independent contracting parties; the
arrangements contemplated by this Agreement do not create a partnership, joint venture, employment, fiduciary or similar relationship
for any purpose. Each of the Company, the CEO, the CFO, the Additional Personnel and A&M shall be solely responsible for the
payment of all wages, and federal, state and local payroll, social security, unemployment, insurance and similar taxes for all
of its employees. None of the CEO, the CFO, the Additional Personnel or A&M shall be entitled to receive any compensation or
benefits from the Company (unless expressly provided for in this Agreement) or to participate in any Company compensation, benefits,
incentive, insurance or other plan or program, other than as specifically set forth herein.

 

		(f)	In connection with the services to be provided hereunder, from time to time A&M may utilize the services of employees of
its affiliates, and subsidiaries as Engagement Personnel. Such affiliates and subsidiaries are wholly owned by A&M’s
parent company and employees

 

		2.	Information Provided by Company and Forward Looking Statements. The Company shall use all reasonable efforts to: (i)
provide the Engagement Personnel with access to management and other representatives of the Company; and (ii) to furnish all data,
material, and other information concerning the business, assets, liabilities, operations, cash flows, properties, financial condition
and prospects of the Company that Engagement Personnel reasonably request in connection with the services to be provided to the
Company. The Engagement Personnel shall rely, without further independent verification, on the accuracy and completeness of all
publicly available information and information that is furnished by or on behalf of the Company and otherwise reviewed by Engagement
Personnel in connection with the services performed for the Company. The Company acknowledges and agrees that the Engagement Personnel
are not responsible for the accuracy or completeness of such information and shall not be responsible for any inaccuracies or omissions
therein; provided, however, that if the CEO, the CFO or the Additional Personnel become aware of any material misstatements
in such information, such individual shall promptly inform the Board. A&M and Engagement Personnel are under no obligation
to update data submitted to them or to review any other areas unless specifically requested by the Board to do so.

 

You understand that the services
to be rendered by the Engagement Personnel may include the preparation of projections and other forward-looking statements, and
numerous factors can affect the actual results of the Company’s operations, which may materially and adversely differ from
those projections. In addition, Engagement Personnel will be relying on information provided by the Company in the preparation
of those projections and other forward-looking statements.

 

 

	 	 

 

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		3.	Limitation of Duties. Neither A&M, nor the Engagement Personnel make any representations or guarantees that, inter
alia, (i) an appropriate restructuring proposal or strategic alternative can be formulated for the Company, (ii) any restructuring
proposal or strategic alternative presented to the Company’s management or the Board will be more successful than all other
possible restructuring proposals or strategic alternatives, (iii) restructuring is the best course of action for the Company, or
(iv) if formulated, that any proposed restructuring plan or strategic alternative will be accepted by any of the Company’s
creditors, shareholders and other constituents. Further, neither A&M, nor the Engagement Personnel, assume any responsibility
for the Company’s decision to pursue, or not pursue any business strategy, or to effect, or not to effect any transaction;
provided, however, that the CEO, CFO and the Additional Personnel shall advise the Board of their recommendations
and professional judgments regarding such proposals as requested. The Engagement Personnel shall be responsible for implementation
only of the restructuring proposal or alternative approved by the Board and only to the extent and in the manner authorized and
directed by the Board.

 

		4.	Compensation.

 

		(a)	A&M will receive fees for the services of the Engagement Personnel based on the following hourly rates:

 

	Managing Directors     	$700-$750
	Directors              	$550-700
	Analysts/Associates 	$350-550

			Such rates shall not increase during the first twelve months of this Agreement, and thereafter
be subject to adjustment annually at such time as A&M adjusts its rates generally.

 

			

		(b)	In addition, A&M will be reimbursed for its reasonable out-of-pocket expenses incurred in connection with this assignment,
such as travel, lodging, duplicating, messenger and telephone charges. All fees and expenses will be billed and payable on a monthly
basis or, at A&M’s discretion, more frequently. The CEO, CFO and the Additional Personnel shall comply with the Company’s
standard travel policies applicable to senior-level personnel as set forth in writing to A&M by the Company. The CEO, CFO and
the Additional Personnel shall provide such reasonable supporting documentation with respect to the out-of-pocket expenses as requested
by the Company.

 

		(c)	Once the engagement demands are more fully understood, more predictable, and the Engagement Personnel solidify, A&M agrees
to provide the Company a monthly fixed fee proposal to replace the hourly arrangement.

 

 

	 	 

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		(d)	The Company and A&M recognize that it is appropriate that A&M receive incentive compensation for its services hereunder,
in addition to the compensation set forth above. To establish such incentive compensation, A&M and the Company will seek to
reach agreement within 45 days from the date hereof on the amount of such incentive compensation and the terms on which it shall
be payable. In concept, it is agreed that A&M is prepared to reduce its fixed monthly fees by up to a 15% discount in exchange
for the ability to earn incentive compensation of up to twice the discount with such incentive compensation being calculated by
a combination of deliverables or outcomes to be mutually agreed between the Board and A&M.

 

		(e)	The Company shall promptly remit to A&M a retainer in the amount of $225,000 which shall be credited against any amounts
due at the termination of this engagement and returned upon the satisfaction of all obligations hereunder.

 

		5.	Termination.

 

		(a)	This Agreement will apply from the commencement of the services referred to in Section 1 and may be terminated without cause
by either the Company by giving ten days written notice to A&M, or by A&M by giving ten days written notice to the Company;
provided, however, that if the Company terminates this Agreement for Cause (as defined below), or if A&M terminates this Agreement
for Good Reason (as defined below), then any such termination shall be effective immediately upon receipt of a written notice to
that effect given by the terminating party to the other party.

 

		(b)	A&M normally does not withdraw from an engagement unless the Company misrepresents or fails to disclose material facts,
fails to pay fees or expenses, or makes it unethical or unreasonably difficult for A&M to continue performance of the engagement,
or other just cause exists.    

 

		(c)	On termination of the Agreement, any fees and expenses due to A&M shall be remitted promptly (including fees and expenses
that accrued prior to but are invoiced subsequent to such termination).   

 

		(d)	If the Company terminates this Agreement without “Cause” more than 30 days after the date hereof or if A&M
terminates this Agreement for “Good Reason”, A&M shall also be entitled to receive the Incentive Fee upon the occurrence
of the event specified in Section 4(d) if such event occurs within 6 months of the termination.  “Cause” shall
mean (i) gross negligence, willful default or fraud by A&M, (ii) if either the CEO or CFO is convicted of, admits guilt in
a written document filed with a court of competent jurisdiction to, or enters a plea of nolo contendere to, an allegation of fraud,
embezzlement, misappropriation or any felony, or (iii) either the CEO or CFO willfully disobeys a lawful direction of the Board;
“Good Reason” shall mean the Company’s misrepresentation of or failure to disclose material facts, failure to
pay fees or expenses when due (in either case that is not cured within 10 days of A&M having given written notice of such),
or circumstances such that it is unethical or illegal for A&M to continue performance of the engagement.

 

	 	 

 

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		(e)	The provisions of this Agreement that give the parties rights or obligations beyond its termination shall survive and continue
to bind the parties.

 

		6.	No Audit. Company acknowledges and agrees that A&M and Engagement Personnel are not being requested to perform an
audit, review or compilation, or any other type of financial statement reporting engagement that is subject to the rules of the
AICPA, SEC or other state or national professional or regulatory body.

 

		7.	No Third Party Beneficiary. The Company acknowledges that all advice (written or oral) provided by A&M and the Engagement
Personnel to the Company in connection with this engagement is intended solely for the benefit and use of the Company (limited
to its Board and management) in considering the matters to which this engagement relates. .

 

		8.	Conflicts. A&M is not currently aware of any relationship that would create a conflict of interest with the Company
or those parties-in-interest of which you have made us aware. Because A&M and its affiliates and subsidiaries comprise
a consulting firm (the “Firm”) that serves clients on an international basis in numerous cases, both in and
out of court, it is possible that the Firm may have rendered or will render services to, or have business associations with, other
entities or people which had or have or may have relationships with the Company, including creditors of the Company. The Firm will
not be prevented or restricted by virtue of providing the services under this Agreement from providing services to other entities
or individuals, including entities or individuals whose interests may be in competition or conflict with the Company’s, provided
the Firm makes appropriate arrangements to ensure that the confidentiality of information is maintained; provided, however, during
the term of this engagement A&M shall not represent the interests of any bidder or actual or prospective investor or lender
in connection with a sale of the Company or a restructuring/refinancing of its debt facilities. Notwithstanding
the above, should during the term of this Agreement any A&M relationship come to the attention of the Engagement Personnel
that reasonably causes or reasonably should cause the Engagement Personnel to believe an interest adverse to the Company on the
part of A&M exists or could exist, A&M shall immediately notify the Board. 

 

		9.	Confidentiality/Non-Solicitation.

 

A&M and Engagement Personnel
shall keep as confidential all non-public information received from the Company in conjunction with this engagement, except: (i)
as requested by the Company or its legal counsel; (ii) as required by legal proceedings; provided, however, that
if such non-public information is disclosed, A&M shall give the Company at least five business days’ notice prior to
such disclosure; or (iii) as reasonably required in the performance of this engagement. All obligations as to non-disclosure shall
cease as to any part of such information to the extent that such information is, or becomes, public other than as a result of a
breach of this provision. A&M acknowledges and represents to the Company that it recognizes its obligations under applicable
state and federal securities laws, including its obligation not to disclose material, nonpublic information to any person or other
party not subject to a written confidentiality agreement with the Company. The Company, on behalf of itself and its subsidiaries
and affiliates and any person which may acquire all or substantially all of its assets agrees that, until two (2) years subsequent
to the termination of this engagement, it will not solicit, recruit, hire or otherwise engage any employee of A&M or any of
its affiliates who worked on this engagement while employed by A&M or its affiliates (“Solicited Person”).
Should the Company or any of its subsidiaries or affiliates or any person who acquires all or substantially all of its assets extend
an offer of employment to or otherwise engage any Solicited Person and should such offer be accepted, A&M shall be entitled
to a fee from the party extending such offer equal to the Solicited Person’s hourly client billing rate at the time of the
offer multiplied by 4,000 hours for a Managing Director, 3,000 hours for a Senior Director and 2,000 hours for any other A&M
employee. The Company acknowledges and agrees that this fee fairly represents the loss that A&M will suffer if the Company
breaches this provision. The fee shall be payable at the time of the Solicited Person’s acceptance of employment or engagement.

 

 

	 	 

 

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		10.	Indemnification/Limitations on Liability. The Company shall indemnify the Engagement Personnel acting as officers (the
“Indemnified Professionals”) to the same extent as the most favorable indemnification it extends to its officers
or directors, whether under the Company’s bylaws, its certificate of incorporation, by contract or otherwise, and no reduction
or termination in any of the benefits provided under any such indemnities shall affect the benefits provided to the Indemnified
Professionals. The Indemnified Professionals shall be covered as officers under the Company’s existing director and officer
liability insurance policy. As a condition of A&M accepting this engagement, a Certificate of Insurance evidencing such coverage
shall be furnished to A&M prior to the effective date of this Agreement. The Company shall give thirty (30) days’ prior
written notice to A&M of cancellation, non-renewal, or material change in coverage, scope, or amount of such director and officer
liability policy. The Company shall also maintain such insurance coverage for the Indemnified Professionals for a period of not
less than six years following the date of the termination of the Indemnified Professionals’ services hereunder. The provisions
of this section are in the nature of contractual obligations and no change in applicable law or the Company’s charter, bylaws
or other organizational documents or policies shall affect the Indemnified Professionals’ rights hereunder; provided,
however, that nothing in this paragraph shall require the Company to take any action that is contrary to applicable law.
The attached indemnity and limitation on liability provisions are incorporated herein and the termination of this agreement or
the engagement shall not affect those provisions, which shall remain in full force and effect.

 

		11.	Miscellaneous. This Agreement (together with the attached indemnity provisions), including, without limitation, the
construction and interpretation of thereof and all claims, controversies and disputes arising under or relating thereto, shall
be governed and construed in accordance with the laws of the State of New York, without regard to principles of conflict of law
that would defer to the laws of another jurisdiction. The Company and A&M agree to waive trial by jury in any action, proceeding
or counterclaim brought by or on behalf of the parties hereto with respect to any matter relating to or arising out of the engagement
or the performance or non-performance of A&M hereunder. The Company and A&M agree, to the extent permitted by applicable
law, that any Federal Court sitting within the Southern District of New York shall have exclusive jurisdiction over any litigation
arising out of this Agreement; to submit to the personal jurisdiction of the Courts of the United States District Court for the
Southern District of New York; and to waive any and all personal rights under the law of any jurisdiction to object on any basis
(including, without limitation, inconvenience of forum) to jurisdiction or venue within the State of New York for any litigation
arising in connection with this Agreement.

 

This Agreement shall be binding
upon A&M and the Company, their respective heirs, successors, and assignees, and any heir, successor, or assignee of a substantial
portion of A&M’s or the Company’s respective businesses and/or assets, including any Chapter 11 Trustee. This Agreement
incorporates the entire understanding of the parties with respect to the subject matter hereof and may not be amended or modified
except in writing executed by the Company and A&M. Neither A&M nor the Company shall use the other’s trademarks or
logos nor shall A&M identify the Company as a customer in, any marketing, promotional, advertising or investment material or
websites, without first obtaining the Company’s prior written consent unless and until (and only to the extent) disclosed
by the Company in any press release or SEC filings (or otherwise publically known). A&M and the Company shall cooperate in
an initial preparation of a press release relating to their entry into this Agreement. The Company shall not use A&M’s
name in any public statement regarding the services without A&M’s prior written consent (which consent shall not be unreasonably
withheld, conditioned or delayed and which, for the avoidance of doubt, may be provided by Mr. Coles with respect to A&M and
the other Engagement Personnel with respect to statements attributed to such person).

 

 

	 	 

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If the foregoing is
acceptable to you, kindly sign the enclosed copy to acknowledge your agreement with its terms.

 

Very truly yours,

 

Alvarez & Marsal North America, LLC

 

 

 

By:/s/ David Coles

       David Coles

 

        Managing Director

 

 

 

Accepted and agreed:

 

Campus Crest Communities, Inc.

 

By: /s/ Lauro Gonzalez-Moreno

       Lauro Gonzalez-Moreno

        Board Member

 

 

	 	 

 

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INDEMNIFICATION AND LIMITATION ON
LIABILITY AGREEMENT

 

This indemnification and limitation on
liability agreement is made part of an agreement, dated April 17, 2015 (which together with any renewals, modifications or extensions
thereof, is herein referred to as the "Agreement") by and between Alvarez & Marsal North America, LLC ("A&M”)
and Campus Crest Communities, Inc. (the “Company”), for services to be rendered to the Company by A&M.

 

A.The Company agrees to indemnify and
hold harmless each of A&M, its affiliates and their respective shareholders, members, managers, employees, agents, representatives
and subcontractors (each, an "Indemnified Party" and collectively, the "Indemnified Parties") against any and
all losses, claims, damages, liabilities, penalties, obligations and expenses, including the costs for counsel or others (including
employees of A&M, based on their then current hourly billing rates) in investigating, preparing or defending any action or
claim, whether or not in connection with litigation in which any Indemnified Party is a party, or enforcing the Agreement (including
these indemnity provisions), as and when incurred, caused by, relating to, based upon or arising out of (directly or indirectly)
the Indemnified Parties' acceptance of or the performance or nonperformance of their obligations under the Agreement; provided,
however, such indemnity shall not apply to any such loss, claim, damage, liability or expense to the extent it is found in a final
judgment by a court of competent jurisdiction (not subject to further appeal) to have resulted primarily and directly from such
Indemnified Party's gross negligence or willful misconduct. The Company also agrees that (a) no Indemnified Party shall have any
liability (whether direct or indirect, in contract or tort or otherwise) to the Company for or in connection with the engagement
of A&M, except to the extent that any such liability for losses, claims, damages, liabilities or expenses are found in a final
judgment by a court of competent jurisdiction (not subject to further appeal) to have resulted primarily and directly from such
Indemnified Party's gross negligence or willful misconduct and(b) in no event will any Indemnified Party have any liability to
the Company for special, consequential, incidental or exemplary damages or loss (nor any lost profits, savings or business opportunity)
.. The Company further agrees that it will not, without the prior consent of an Indemnified Party, settle or compromise or consent
to the entry of any judgment in any pending or threatened claim, action, suit or proceeding in respect of which such Indemnified
Party seeks indemnification hereunder (whether or not such Indemnified Party is an actual party to such claim, action, suit or
proceedings) unless such settlement, compromise or consent includes an unconditional release of such Indemnified Party from all
liabilities arising out of such claim, action, suit or proceeding; provided, however, that the Company may settle,
compromise or consent to the entry of a judgment in any pending or threatened claim, action proceeding or investigation, without
A&M’s consent, if such settlement, compromise or consent does not include any payment by A&M or any admission or
statement regarding A&M’s culpability or fault.

 

B.These indemnification provisions
shall be in addition to any liability which the Company may otherwise have to the Indemnified Parties. In the event that, at any
time whether before or after termination of the engagement or the Agreement, as a result of or in connection with the Agreement
or A&M’s and its personnel’s role under the Agreement, A&M or any Indemnified Party is required to produce
any of its personnel (including former employees) for examination, deposition or other written, recorded or oral presentation,
or A&M or any of its personnel (including former employees) or any other Indemnified Party is required to produce or otherwise
review, compile, submit, duplicate, search for, organize or report on any material within such Indemnified Party’s possession
or control pursuant to a subpoena or other legal (including administrative) process, the Company will reimburse the Indemnified
Party for its out of pocket expenses, including the reasonable fees and expenses of its counsel, and will compensate the Indemnified
Party for the time expended by its personnel based on such personnel’s then current hourly rate.

 

	 	 

 

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C.If any action, proceeding or investigation
is commenced to which any Indemnified Party proposes to demand indemnification hereunder, such Indemnified Party will notify the
Company with reasonable promptness; provided, however, that any failure by such Indemnified Party to notify the Company will not
relieve the Company from its obligations hereunder, except to the extent that such failure shall have actually prejudiced the defense
of such action. The Company shall promptly pay expenses reasonably incurred by any Indemnified Party in defending, participating
in, or settling any action, proceeding or investigation in which such Indemnified Party is a party or is threatened to be made
a party or otherwise is participating in by reason of the engagement under the Agreement, upon submission of invoices therefor,
whether in advance of the final disposition of such action, proceeding, or investigation or otherwise. Each Indemnified Party hereby
undertakes, and the Company hereby accepts its undertaking, to repay any and all such amounts so advanced if it shall ultimately
be determined that such Indemnified Party is not entitled to be indemnified therefor. If any such action, proceeding or investigation
in which an Indemnified Party is a party is also against the Company, the Company may, in lieu of advancing the expenses of separate
counsel for such Indemnified Party, provide such Indemnified Party with legal representation by the same counsel who represents
the Company, provided such counsel is reasonably satisfactory to such Indemnified Party, at no cost to such Indemnified Party;
provided, however, that if such counsel or counsel to the Indemnified Party shall determine that due to the existence of actual
or potential conflicts of interest between such Indemnified Party and the Company such counsel is unable to represent both the
Indemnified Party and the Company, then the Indemnified Party shall be entitled to use separate counsel of its own choice, and
the Company shall promptly advance its reasonable expenses of such separate counsel upon submission of invoices therefor. Nothing
herein shall prevent an Indemnified Party from using separate counsel of its own choice at its own expense. The Company will be
liable for any settlement of any claim against an Indemnified Party made with the Company's written consent, which consent shall
not be unreasonably withheld.

 

D.               
In order to provide for just and equitable contribution if a claim for indemnification pursuant to these indemnification
provisions is made but it is found in a final judgment by a court of competent jurisdiction (not subject to further appeal) that
such indemnification may not be enforced in such case, even though the express provisions hereof provide for indemnification, then
the relative fault of the Company, on the one hand, and the Indemnified Parties, on the other hand, in connection with the statements,
acts or omissions which resulted in the losses, claims, damages, liabilities and costs giving rise to the indemnification claim
and other relevant equitable considerations shall be considered; and further provided that in no event will the Indemnified Parties'
aggregate contribution for all losses, claims, damages, liabilities and expenses with respect to which contribution is available
hereunder exceed the amount of fees actually received by the Indemnified Parties pursuant to the Agreement. No person found liable
for a fraudulent misrepresentation shall be entitled to contribution hereunder from any person who is not also found liable for
such fraudulent misrepresentation.

 

	 	 

 

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E.In the event the Company and A&M
seek judicial approval for the assumption of the Agreement or authorization to enter into a new engagement agreement pursuant to
either of which A&M would continue to be engaged by the Company, the Company shall promptly pay expenses reasonably incurred
by the Indemnified Parties, including attorneys' fees and expenses, in connection with any motion, action or claim made either
in support of or in opposition to any such retention or authorization, whether in advance of or following any judicial disposition
of such motion, action or claim, promptly upon submission of invoices therefor and regardless of whether such retention or authorization
is approved by any court. The Company will also promptly pay the Indemnified Parties for any expenses reasonably incurred by them,
including attorneys' fees and expenses, in seeking payment of all amounts owed it under the Agreement (or any new engagement agreement)
whether through submission of a fee application or in any other manner, without offset, recoupment or counterclaim, whether as
a secured claim, an administrative expense claim, an unsecured claim, a prepetition claim or a postpetition claim.

 

F.Neither termination of the Agreement
nor termination of A&M's engagement nor the filing of a petition under Chapter 7 or 11 of the United States Bankruptcy Code
(nor the conversion of an existing case to one under a different chapter) shall affect these indemnification provisions, which
shall hereafter remain operative and in full force and effect.

 

G.The rights provided herein shall
not be deemed exclusive of any other rights to which the Indemnified Parties may be entitled under the certificate of incorporation
or bylaws of the Company, any other agreements, any vote of stockholders or disinterested directors of the Company, any applicable
law or otherwise.

 

	 	 

 

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        CAMPUS CREST COMMUNITIES, INC.

         

        By: /s/ Lauro Gonzalez-Moreno

         

        Board Member

         

         
	
        ALVAREZ & MARSAL NORTH AMERICA, LLC

         

        By: /s/ David Coles

        David Coles

        Managing Director

	 	 
	 	 

 

	 	 

 

    	12FORM OF INDEMNIFICATION AGREEMENT

 

 

THIS INDEMNIFICATION AGREEMENT (“Agreement”)
is made and entered into as of the _____ day of _______________, 2014, by and between Business Development Corporation of America,
a Maryland corporation (the “Company”), and _________________________ (“Indemnitee”).1

 

WHEREAS, at the request of the Company,
Indemnitee currently serves as an Independent Director or officer of the Company and may, therefore, be subjected to claims, suits
or proceedings arising as a result of his or her service; and

 

WHEREAS, as an inducement to Indemnitee
to continue to serve as such Independent Director or officer, the Company has agreed to indemnify and to advance expenses and costs
incurred by Indemnitee in connection with any such claims, suits or proceedings; and

 

WHEREAS, the parties by this Agreement desire
to set forth their agreement regarding indemnification and advance of expenses;

 

NOW, THEREFORE, in consideration of the
premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:

 

Section 1.Definitions. For purposes
of this Agreement:

 

(a)“1940 Act” means the Investment
Company Act of 1940, as amended, and rules thereunder.

 

(b)“Applicable Legal Rate”
means a fixed rate of interest equal to the applicable federal rate for mid-term debt instruments as of the day that it is determined
that Indemnitee must repay any advanced expenses.

 

(c)“Change in Control” means
a change in control of the Company occurring after the Effective Date of a nature that would be required to be reported in response
to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on any similar schedule or form) promulgated
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), whether or not the Company is then subject
to such reporting requirement; provided, however, that, without limitation, such a Change in Control shall be deemed to have occurred
if, after the Effective Date (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange
Act) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly,
of securities of the Company representing 15% or more of the combined voting power of all of the Company’s then-outstanding
securities entitled to vote generally in the election of directors without the prior approval of at least two-thirds of the members
of the Board of Directors in office immediately prior to such person’s attaining such percentage interest; (ii) the
Company is a party to a merger, consolidation, sale of assets, plan of liquidation or other reorganization not approved by at least
two-thirds of the members of the Board of Directors then in office, as a consequence of which members of the Board of Directors
in office immediately prior to such transaction or event constitute less than a majority of the Board of Directors thereafter;
or (iii) at any time, a majority of the members of the Board of Directors are not individuals (A) who were directors as of
the Effective Date or (B) whose election by the Board of Directors or nomination for election by the Company’s stockholders
was approved by the affirmative vote of at least two-thirds of the directors then in office who were directors as of the Effective
Date or whose election for nomination for election was previously so approved.

 

 

 

1
Insert names of directors or officers.

 

    	 

    	 

    

 

(d)“Corporate Status” means
the status of a person as a present or former director, officer, employee or agent of the Company or as a director, trustee, officer,
partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited
liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity
at the request of the Company. As a clarification and without limiting the circumstances in which Indemnitee may be serving at
the request of the Company, service by Indemnitee shall be deemed to be at the request of the Company if Indemnitee serves or served
as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any corporation, partnership,
limited liability company, joint venture, trust, employee benefit plan or other enterprise (i) of which a majority of the voting
power or equity interest is owned directly or indirectly by the Company or (ii) the management of which is controlled directly
or indirectly by the Company.

 

(e)“Disinterested Director”
means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification and/or advance
of Expenses is sought by Indemnitee.

 

(f)“Effective Date” means
the date set forth in the first paragraph of this Agreement.

 

(g)“Expenses” means any and
all reasonable and out-of-pocket attorneys’ fees and costs, retainers, court costs, transcript costs, fees of experts, witness
fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, federal,
state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement,
ERISA excise taxes and penalties and any other disbursements or expenses incurred in connection with prosecuting, defending, preparing
to prosecute or defend, investigating, being or preparing to be a witness in or otherwise participating in a Proceeding. Expenses
shall also include Expenses incurred in connection with any appeal resulting from any Proceeding including, without limitation,
the premium for, security for and other costs relating to any cost bond supersedeas bond or other appeal bond or its equivalent.

 

(h)“Independent Counsel” means
a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither is, nor in the past five years
has been, retained to represent: (i) the Company or Indemnitee in any matter material to either such party (other than with
respect to matters concerning Indemnitee under this Agreement or of other indemnitees under similar indemnification agreements),
or (ii) any other party to or participant or witness in the Proceeding giving rise to a claim for indemnification or advance
of Expenses hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who,
under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either
the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.

 

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(i)“Independent Director”
means a director that is not an “interested person,” as such term is defined in the 1940 Act, of the Company.

 

(j)“Proceeding” means any
threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative
hearing or any other proceeding, whether brought by or in the right of the Company or otherwise and whether of a civil (including
intentional or unintentional tort claims), criminal, administrative or investigative (formal or informal) nature, including any
appeal therefrom, except one pending or completed on or before the Effective Date, unless otherwise specifically agreed in writing
by the Company and Indemnitee. If Indemnitee reasonably believes that a given situation may lead to or culminate in the institution
of a Proceeding, such situation shall also be considered a Proceeding.

 

Section 2.Services by Indemnitee.
Indemnitee will serve as an Independent Director or officer of the Company. However, this Agreement shall not impose any independent
obligation on Indemnitee or the Company to continue Indemnitee’s service to the Company. This Agreement shall not be deemed
an employment contract between the Company (or any other entity) and Indemnitee.

 

Section 3.General. Subject to
the limitations in Section 5, the Company shall indemnify, and advance Expenses to, Indemnitee (a) as provided in this Agreement
and (b) as otherwise permitted by the 1940 Act, including Section 17 (h) therein, Maryland law in effect on the Effective
Date and as amended from time to time; provided, however, that no change in Maryland law shall have the effect of reducing the
benefits available to Indemnitee hereunder based on Maryland law as in effect on the Effective Date. Subject to the limitations
in Section 5, the rights of Indemnitee provided in this Section 3 shall include, without limitation, the rights set forth in the
other sections of this Agreement, including any additional indemnification permitted by Section 2-418(g) of the Maryland General
Corporation Law (the “MGCL”).

 

Section 4.Standard for Indemnification.
Subject to the limitations in Section 5, if, by reason of Indemnitee’s Corporate Status, Indemnitee is, or is threatened
to be, made a party to any Proceeding, the Company shall indemnify Indemnitee against all judgments, penalties, fines and amounts
paid in settlement and all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection
with any such Proceeding unless it is established by clear and convincing evidence that (a) the act or omission of Indemnitee
was material to the matter giving rise to the Proceeding and (i) was committed in bad faith or (ii) was the result of
active and deliberate dishonesty, (b) Indemnitee actually received an improper personal benefit in money, property or services
or (c) in the case of any criminal Proceeding, Indemnitee had reasonable cause to believe that his or her conduct was unlawful.

 

Section 5.Certain Limits on Indemnification.
Notwithstanding any other provision of this Agreement (other than Section 6), Indemnitee shall not be entitled to:

 

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(a)indemnification for any loss
or liability unless all of the following conditions are met: (i) Indemnitee has determined, in good faith, that the course of conduct
that caused the loss or liability was in the best interests of the Company; (ii) Indemnitee was acting on behalf of or performing
services for the Company; (iii) such loss or liability was not the result of negligence or misconduct; and (iv) such indemnification
is recoverable only out of the Company’s net assets and not from the Company’s stockholders;

 

(b)indemnification for any loss
or liability arising from an alleged violation of federal or state securities laws unless one or more of the following conditions
are met: (i) there has been a successful adjudication on the merits of each count involving alleged material securities law violations
as to Indemnitee; (ii) such claims have been dismissed with prejudice on the merits by a court of competent jurisdiction as to
Indemnitee; or (iii) a court of competent jurisdiction approves a settlement of the claims against Indemnitee and finds that indemnification
of the settlement and the related costs should be made, and the court considering the request for indemnification has been advised
of the position of the Securities and Exchange Commission and of the published position of any state securities regulatory authority
in which securities of the Company were offered or sold as to indemnification for violations of securities laws;

 

(c)indemnification hereunder if the
Proceeding was one by or in the right of the Company and Indemnitee is adjudged to be liable to the Company;

 

(d)indemnification hereunder if Indemnitee
is adjudged to be liable on the basis that personal benefit was improperly received in any Proceeding charging improper personal
benefit to Indemnitee, whether or not involving action in the Indemnitee’s Corporate Status; or

 

(e)indemnification or advance of Expenses
hereunder if the Proceeding was brought by Indemnitee, unless: (i) the Proceeding was brought to enforce indemnification under
this Agreement, and then only to the extent in accordance with and as authorized by Section 12 of this Agreement, or (ii) the Company’s
charter or Bylaws, a resolution of the stockholders entitled to vote generally in the election of directors or of the Board of
Directors or an agreement approved by the Board of Directors to which the Company is a party expressly provide otherwise.

 

Section 6.Court-Ordered Indemnification.
Subject to the limitations in Sections 3, 5(a) and (b), a court of appropriate jurisdiction, upon application of Indemnitee and
such notice as the court shall require, may order indemnification of Indemnitee by the Company in the following circumstances:

 

(a)if such determines that Indemnitee
is entitled to reimbursement under Section 2-418(d)(1) of the MGCL, the court shall order indemnification, in which case Indemnitee
shall be entitled to recover the Expenses of securing such reimbursement; or

 

(b)if such court determines that Indemnitee
is fairly and reasonably entitled to indemnification in view of all the relevant circumstances, whether or not Indemnitee (i) has
met the standards of conduct set forth in Section 2-418(b) of the MGCL or (ii) has been adjudged liable for receipt of an
improper personal benefit under Section 2-418(c) of the MGCL, the court may order such indemnification as the court shall deem
proper. However, indemnification with respect to any Proceeding by or in the right of the Company or in which liability shall have
been adjudged in the circumstances described in Section 2-418(c) of the MGCL shall be limited to Expenses.

 

    	-4-

    	 

    

 

Section 7.Indemnification for Expenses
of an Indemnitee Who is Wholly or Partly Successful. Subject to the limitations in Section 5, to the extent that Indemnitee
was or is, by reason of his or her Corporate Status, made a party to (or otherwise becomes a participant in) any Proceeding and
is successful, on the merits or otherwise, in the defense of such Proceeding, Indemnitee shall be indemnified for all Expenses
actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection therewith. If Indemnitee is not wholly
successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues
or matters in such Proceeding, the Company shall indemnify Indemnitee under this Section 7 for all Expenses actually and reasonably
incurred by Indemnitee or on Indemnitee’s behalf in connection with each such claim, issue or matter, allocated on a reasonable
and proportionate basis. For purposes of this Section 7, and without limitation, the termination of any claim, issue or matter
in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue
or matter.

 

Section 8.Advance of Expenses for
an Indemnitee. Subject to the limitations described in Section 3 herein, if, by reason of Indemnitee’s Corporate
Status, Indemnitee is, or is threatened to be, made a party to any Proceeding, the Company shall, without requiring a preliminary
determination of Indemnitee’s ultimate entitlement to indemnification hereunder, advance all reasonable Expenses incurred
by or on behalf of Indemnitee in connection with (a) such Proceeding which is initiated by a third party who is not a stockholder
of the Company, or (b) such Proceeding which is initiated by a stockholder of the Company acting in his or her capacity as such
and for which a court of competent jurisdiction specifically approves such advancement, and which relates to acts or omissions
with respect to the performance of duties or services on behalf of the Company, within ten days after the receipt by the Company
of a statement or statements requesting such advance or advances from time to time, whether prior to or after final disposition
of such Proceeding. Such statement or statements shall reasonably evidence the Expenses incurred by Indemnitee and shall include
or be preceded or accompanied by a written affirmation by Indemnitee of Indemnitee’s good faith belief that the standard
of conduct necessary for indemnification by the Company as authorized by law and by this Agreement has been met and a written undertaking
by or on behalf of Indemnitee, in substantially the form attached hereto as Exhibit A or in such form as may be required
under applicable law as in effect at the time of the execution thereof, to reimburse the portion of any Expenses advanced to Indemnitee,
together with the Applicable Legal Rate of interest thereon, relating to claims, issues or matters in the Proceeding as to which
it shall ultimately be established, by clear and convincing evidence, that the standard of conduct has not been met by Indemnitee
and which have not been successfully resolved as described in Section 7 of this Agreement. To the extent that Expenses advanced
to Indemnitee do not relate to a specific claim, issue or matter in the Proceeding, such Expenses shall be allocated on a reasonable
and proportionate basis. The undertaking required by this Section 8 shall be an unlimited general obligation by or on behalf of
Indemnitee and shall be accepted without reference to Indemnitee’s financial ability to repay such advanced Expenses and
without any requirement to post security therefor. 

 

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Section 9.Indemnification and Advance
of Expenses as a Witness or Other Participant. Subject to the limitations in Section 5, to the extent that Indemnitee is or
may be, by reason of Indemnitee’s Corporate Status, made a witness or otherwise asked to participate in any Proceeding, whether
instituted by the Company or any other party, and to which Indemnitee is not a party, Indemnitee shall be advanced all reasonable
Expenses and indemnified against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in
connection therewith within ten days after the receipt by the Company of a statement or statements requesting any such advance
or indemnification from time to time, whether prior to or after final disposition of such Proceeding. Such statement or statements
shall reasonably evidence the Expenses incurred by Indemnitee.

 

Section 10.Procedure for Determination
of Entitlement to Indemnification.

 

(a)To obtain indemnification under this
Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information
as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled
to indemnification. Indemnitee may submit one or more such requests from time to time and at such time(s) as Indemnitee deems appropriate
in Indemnitee’s sole discretion. The officer of the Company receiving any such request from Indemnitee shall, promptly upon
receipt of such a request for indemnification, advise the Board of Directors in writing that Indemnitee has requested indemnification.

 

(b)Upon written request by Indemnitee
for indemnification pursuant to Section 10(a) above, a determination, if required by applicable law, with respect to Indemnitee’s
entitlement thereto shall promptly be made in the specific case: (i) if a Change in Control shall have occurred, by Independent
Counsel, in a written opinion to the Board of Directors, a copy of which shall be delivered to Indemnitee, which Independent Counsel
shall be selected by Indemnitee and approved by the Board of Directors in accordance with Section 2-418(e)(2)(ii) of the MGCL,
which approval shall not be unreasonably withheld; or (ii) if a Change in Control shall not have occurred, (A) by the Board
of Directors by a majority vote of a quorum consisting of Disinterested Directors or, if such a quorum cannot be obtained, then
by a majority vote of a duly authorized committee of the Board of Directors consisting solely of one or more Disinterested Directors,
(B) if Independent Counsel has been selected by the Board of Directors in accordance with Section 2-418(e)(2)(ii) of the MGCL and
approved by Indemnitee, which approval shall not be unreasonably withheld, by Independent Counsel, in a written opinion to the
Board of Directors, a copy of which shall be delivered to Indemnitee or (C) if so directed by a majority of the members of the
Board of Directors, by the stockholders of the Company. If it is so determined that Indemnitee is entitled to indemnification,
payment to Indemnitee shall be made within ten days after such determination. Indemnitee shall cooperate with the person, persons
or entity making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such
person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise
protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination in the
discretion of the Board of Directors or Independent Counsel if retained pursuant to clause (ii)(B) of this Section 10(b). Any Expenses
incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company
(irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company shall indemnify and
hold Indemnitee harmless therefrom.

 

    	-6-

    	 

    

 

(c)The Company shall pay the reasonable
fees and expenses of Independent Counsel, if one is appointed.

 

Section 11.Presumptions and Effect
of Certain Proceedings.

 

(a)In making any determination with respect
to entitlement to indemnification hereunder, the person or persons or entity making such determination shall presume that Indemnitee
is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with
Section 10(a) of this Agreement, and the Company shall have the burden of proof to overcome that presumption in connection
with the making of any determination contrary to that presumption.

 

(b)The termination of any Proceeding or
of any claim, issue or matter therein, by judgment, order, settlement or conviction, upon a plea of nolo contendere
or its equivalent, or entry of an order of probation prior to judgment, does not create a presumption that Indemnitee did not meet
the requisite standard of conduct described herein for indemnification.

 

(c)The knowledge and/or actions, or failure
to act, of any other director, officer, employee or agent of the Company or any other director, trustee, officer, partner, manager,
managing member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited liability company,
joint venture, trust, employee benefit plan or other enterprise shall not be imputed to Indemnitee for purposes of determining
any other right to indemnification under this Agreement.

 

Section 12.Remedies of Indemnitee.

 

(a)If (i) a determination is made pursuant
to Section 10(b) of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advance of
Expenses is not timely made pursuant to Sections 8 or 9 of this Agreement, (iii) no determination of entitlement to indemnification
shall have been made pursuant to Section 10(b) of this Agreement within 60 days after receipt by the Company of the request for
indemnification, (iv) payment of indemnification is not made pursuant to Sections 7 or 9 of this Agreement within ten days
after receipt by the Company of a written request therefor, or (v) payment of indemnification pursuant to any other section
of this Agreement or the charter or Bylaws of the Company is not made within ten days after a determination has been made that
Indemnitee is entitled to indemnification, Indemnitee shall be entitled to an adjudication in an appropriate court located in the
State of Maryland, or in any other court of competent jurisdiction, of Indemnitee’s entitlement to such indemnification or
advance of Expenses. Alternatively, Indemnitee, at Indemnitee’s option, may seek an award in arbitration to be conducted
by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association. Indemnitee shall commence
a proceeding seeking an adjudication or an award in arbitration within 180 days following the date on which Indemnitee first has
the right to commence such proceeding pursuant to this Section 12(a); provided, however, that the foregoing clause shall not
apply to a proceeding brought by Indemnitee to enforce his or her rights under Section 7 of this Agreement. Except as set forth
herein, the provisions of Maryland law (without regard to its conflicts of laws rules) shall apply to any such arbitration. The
Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration.

 

    	-7-

    	 

    

 

(b)In any judicial proceeding or arbitration
commenced pursuant to this Section 12, Indemnitee shall be presumed to be entitled to indemnification or advance of Expenses,
as the case may be, under this Agreement and the Company shall have the burden of proving that Indemnitee is not entitled to indemnification
or advance of Expenses, as the case may be. If Indemnitee commences a judicial proceeding or arbitration pursuant to this Section 12,
Indemnitee shall not be required to reimburse the Company for any advances pursuant to Section 8 of this Agreement until a final
determination is made with respect to Indemnitee’s entitlement to indemnification (as to which all rights of appeal have
been exhausted or lapsed). The Company shall, to the fullest extent not prohibited by law, be precluded from asserting in any judicial
proceeding or arbitration commenced pursuant to this Section 12 that the procedures and presumptions of this Agreement are
not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Company is bound
by all of the provisions of this Agreement.

 

(c)If a determination shall have been
made pursuant to Section 10(b) of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound
by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 12, absent a misstatement by
Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially
misleading, in connection with the request for indemnification.

 

(d)In the event that Indemnitee is successful
in seeking, pursuant to this Section 12, a judicial adjudication of or an award in arbitration to enforce Indemnitee’s rights
under, or to recover damages for breach of, this Agreement, Indemnitee shall be entitled to recover from the Company, and shall
be indemnified by the Company for, any and all Expenses actually and reasonably incurred by him or her in such judicial adjudication
or arbitration. If it shall be determined in such judicial adjudication or arbitration that Indemnitee is entitled to receive part
but not all of the indemnification or advance of Expenses sought, the Expenses incurred by Indemnitee in connection with such judicial
adjudication or arbitration shall be appropriately prorated.

 

(e)Interest shall be paid by the Company
to Indemnitee at the maximum rate allowed to be charged for judgments under the Courts and Judicial Proceedings Article of the
Annotated Code of Maryland for amounts which the Company pays or is obligated to pay for the period (i) commencing with either
the tenth day after the date on which the Company was requested to advance Expenses in accordance with Sections 8 or 9 of this
Agreement or the 60th day after the date on which the Company was requested to make the determination of entitlement
to indemnification under Section 10(b) of this Agreement, as applicable, and (ii) and ending on the date such payment is made to
Indemnitee by the Company.

 

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Section 13.Defense of the Underlying
Proceeding.

 

(a)Indemnitee shall notify the Company
promptly in writing upon being served with any summons, citation, subpoena, complaint, indictment, request or other document relating
to any Proceeding which may result in the right to indemnification or the advance of Expenses hereunder and shall include with
such notice a description of the nature of the Proceeding and a summary of the facts underlying the Proceeding. The failure to
give any such notice shall not disqualify Indemnitee from the right, or otherwise affect in any manner any right of Indemnitee,
to indemnification or the advance of Expenses under this Agreement unless the Company’s ability to defend in such Proceeding
or to obtain proceeds under any insurance policy is materially and adversely prejudiced thereby, and then only to the extent the
Company is thereby actually so prejudiced.

 

(b)Subject to the provisions of the last
sentence of this Section 13(b) and of Section 13(c) below, the Company shall have the right to defend Indemnitee in any
Proceeding which may give rise to indemnification hereunder; provided, however, that the Company shall notify Indemnitee of any
such decision to defend within 15 calendar days following receipt of notice of any such Proceeding under Section 13(a) above.
The Company shall not, without the prior written consent of Indemnitee, which shall not be unreasonably withheld or delayed, consent
to the entry of any judgment against Indemnitee or enter into any settlement or compromise which (i) includes an admission
of fault of Indemnitee, (ii) does not include, as an unconditional term thereof, the full release of Indemnitee from all liability
in respect of such Proceeding, which release shall be in form and substance reasonably satisfactory to Indemnitee, or (iii) would
impose any Expense, judgment, fine, penalty or limitation on Indemnitee. This Section 13(b) shall not apply to a Proceeding
brought by Indemnitee under Section 12 of this Agreement.

 

(c)Notwithstanding the provisions of Section
13(b) above, if in a Proceeding to which Indemnitee is a party by reason of Indemnitee’s Corporate Status, (i) Indemnitee
reasonably concludes, based upon an opinion of counsel approved by the Company, which approval shall not be unreasonably withheld,
that Indemnitee may have separate defenses or counterclaims to assert with respect to any issue which may not be consistent with
other defendants in such Proceeding, (ii) Indemnitee reasonably concludes, based upon an opinion of counsel approved by the
Company, which approval shall not be unreasonably withheld, that an actual or apparent conflict of interest or potential conflict
of interest exists between Indemnitee and the Company, or (iii) if the Company fails to assume the defense of such Proceeding
in a timely manner, Indemnitee shall be entitled to be represented by separate legal counsel of Indemnitee’s choice, subject
to the prior approval of the Company, which approval shall not be unreasonably withheld, at the expense of the Company. In addition,
if the Company fails to comply with any of its obligations under this Agreement or in the event that the Company or any other person
takes any action to declare this Agreement void or unenforceable, or institutes any Proceeding to deny or to recover from Indemnitee
the benefits intended to be provided to Indemnitee hereunder, Indemnitee shall have the right to retain counsel of Indemnitee’s
choice, subject to the prior approval of the Company, which approval shall not be unreasonably withheld, at the expense of the
Company (subject to Section 12(d) of this Agreement), to represent Indemnitee in connection with any such matter.

 

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Section 14.Non-Exclusivity; Survival
of Rights; Subrogation.

 

(a)The rights of indemnification and advance
of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time
be entitled under applicable law, the charter or Bylaws of the Company, any agreement or a resolution of the stockholders entitled
to vote generally in the election of directors or of the Board of Directors, or otherwise. Unless consented to in writing by Indemnitee,
no amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee
under this Agreement in respect of any action taken or omitted by such Indemnitee in his or her Corporate Status prior to such
amendment, alteration or repeal, regardless of whether a claim with respect to such action or inaction is raised prior or subsequent
to such amendment, alteration or repeal. No right or remedy herein conferred is intended to be exclusive of any other right or
remedy, and every other right or remedy shall be cumulative and in addition to every other right or remedy given hereunder or now
or hereafter existing at law or in equity or otherwise. The assertion of any right or remedy hereunder, or otherwise, shall not
prohibit the concurrent assertion or employment of any other right or remedy.

 

(b)In the event of any payment under this
Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall
execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary
to enable the Company to bring suit to enforce such rights.

 

Section 15.Insurance. The Company
will use its reasonable best efforts to acquire directors and officers liability insurance, on terms and conditions deemed appropriate
by the Board of Directors, with the advice of counsel, covering Indemnitee or any claim made against Indemnitee by reason of his
or her Corporate Status and covering the Company for any indemnification or advance of Expenses made by the Company to Indemnitee
for any claims made against Indemnitee by reason of his or her Corporate Status. Without in any way limiting any other obligation
under this Agreement, the Company shall indemnify Indemnitee for any payment by Indemnitee arising out of the amount of any deductible
or retention and the amount of any excess of the aggregate of all judgments, penalties, fines, settlements and Expenses incurred
by Indemnitee in connection with a Proceeding over the coverage of any insurance referred to in the previous sentence. The purchase,
establishment and maintenance of any such insurance shall not in any way limit or affect the rights or obligations of the Company
or Indemnitee under this Agreement except as expressly provided herein, and the execution and delivery of this Agreement by the
Company and Indemnitee shall not in any way limit or affect the rights or obligations of the Company under any such insurance policies.
If, at the time the Company receives notice from any source of a Proceeding to which Indemnitee is a party or a participant (as
a witness or otherwise), the Company has director and officer liability insurance in effect, the Company shall give prompt notice
of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies.

 

Section 16.Coordination of Payments.
The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable or payable or reimbursable
as Expenses hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy,
contract, agreement or otherwise.

 

    	-10-

    	 

    

 

Section 17.Reports to Stockholders.
To the extent required by the MGCL, the Company shall report in writing to its stockholders the payment of any amounts for indemnification
of, or advance of Expenses to, Indemnitee under this Agreement arising out of a Proceeding by or in the right of the Company with
the notice of the meeting of stockholders of the Company next following the date of the payment of any such indemnification or
advance of Expenses or prior to such meeting.

 

Section 18.Duration of Agreement;
Binding Effect.

 

(a)This Agreement shall continue until
and terminate on the later of (i) the date that Indemnitee shall have ceased to serve as a director, officer, employee or agent
of the Company or as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other
foreign or domestic corporation, real estate investment trust, partnership, limited liability company, joint venture, trust, employee
benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Company and (ii) the
date that Indemnitee is no longer subject to any actual or possible Proceeding (including any rights of appeal thereto and any
Proceeding commenced by Indemnitee pursuant to Section 12 of this Agreement).

 

(b)The indemnification and advance of
Expenses provided by, or granted pursuant to, this Agreement shall be binding upon and be enforceable by the parties hereto and
their respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise
to all or substantially all of the business or assets of the Company), shall continue as to an Indemnitee who has ceased to be
a director, officer, employee or agent of the Company or a director, trustee, officer, partner, manager, managing member, fiduciary,
employee or agent of any other foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee
benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Company, and shall inure
to the benefit of Indemnitee and Indemnitee’s spouse, assigns, heirs, devisees, executors and administrators and other legal
representatives.

 

(c)The Company shall require and cause
any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all, substantially all or a substantial
part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee, expressly
to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform
if no such succession had taken place.

 

(d)The Company and Indemnitee agree that
a monetary remedy for breach of this Agreement, at some later date, may be inadequate, impracticable and difficult of proof, and
further agree that such breach may cause Indemnitee irreparable harm. Accordingly, the parties hereto agree that Indemnitee may
enforce this Agreement by seeking injunctive relief and/or specific performance hereof, without any necessity of showing actual
damage or irreparable harm and that by seeking injunctive relief and/or specific performance, Indemnitee shall not be precluded
from seeking or obtaining any other relief to which Indemnitee may be entitled. Indemnitee shall further be entitled to such specific
performance and injunctive relief, including temporary restraining orders, preliminary injunctions and permanent injunctions, without
the necessity of posting bonds or other undertakings in connection therewith. The Company acknowledges that, in the absence of
a waiver, a bond or undertaking may be required of Indemnitee by a court, and the Company hereby waives any such requirement of
such a bond or undertaking.

 

    	-11-

    	 

    

 

Section 19.Severability. If any
provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the
validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, each portion
of any Section, paragraph or sentence of this Agreement containing any such provision held to be invalid, illegal or unenforceable
that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable
to the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary
to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent
possible, the provisions of this Agreement (including, without limitation, each portion of any Section, paragraph or sentence of
this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal
or unenforceable) shall be construed so as to give effect to the intent manifested thereby.

 

Section 20.Identical Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but
all of which together shall constitute one and the same Agreement. One such counterpart signed by the party against whom enforceability
is sought shall be sufficient to evidence the existence of this Agreement.

 

Section 21.Headings. The headings
of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement
or to affect the construction thereof.

 

Section 22.Modification and Waiver.
No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto.
No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof
(whether or not similar) nor shall such waiver constitute a continuing waiver.

 

Section 23.Notices. All notices,
requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if (i) delivered
by hand and receipted for by the party to whom said notice or other communication shall have been directed, on the day of such
delivery, or (ii) mailed by certified or registered mail with postage prepaid, on the third business day after the date on
which it is so mailed:

 

(a)If to Indemnitee, to the address set
forth on the signature page hereto.

 

    	-12-

    	 

    

 

(b)If to the Company, to:

 

[                                      ]

[                                      ]

[                                      ]

[                                      ]

[Attn: General Counsel]

 

or to such other address as may have been furnished in writing
to Indemnitee by the Company or to the Company by Indemnitee, as the case may be.

 

Section 24.Governing Law. This
Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Maryland, without regard
to its conflicts of laws rules.

 

    	-13-

    	 

    

 

 

[SIGNATURE PAGE FOLLOWS]

 

    	-14-

    	 

    

 

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

 

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

 

 

By: ________________________________

Name:

Title:

 

 

INDEMNITEE

 

 

____________________________________

Name:

Address:

 

    	-15-

    	 

    

 

EXHIBIT A

 

AFFIRMATION
AND UNDERTAKING TO REPAY EXPENSES ADVANCED

 

To: The Board of Directors of _________________________

 

Re: Affirmation and Undertaking

 

Ladies and Gentlemen:

 

This Affirmation and Undertaking is being
provided pursuant to that certain Indemnification Agreement, dated the _____ day of _______________, 2010, by and between _________________________,
a Maryland corporation (the “Company”), and the undersigned Indemnitee (the “Indemnification Agreement”),
pursuant to which I am entitled to advance of Expenses in connection with [Description of Proceeding] (the “Proceeding”).

 

Terms used herein and not otherwise defined
shall have the meanings specified in the Indemnification Agreement.

 

I am subject to the Proceeding by reason
of my Corporate Status or by reason of alleged actions or omissions by me in such capacity. I hereby affirm my good faith belief
that at all times, insofar as I was involved as an Independent Director of the Company, in any of the facts or events giving rise
to the Proceeding, I (1) did not act with bad faith or active or deliberate dishonesty, (2) did not receive any improper
personal benefit in money, property or services and (3) in the case of any criminal proceeding, had no reasonable cause to
believe that any act or omission by me was unlawful.

 

In consideration of the advance of Expenses
by the Company for reasonable attorneys’ fees and related Expenses incurred by me in connection with the Proceeding (the
“Advanced Expenses”), I hereby agree that if, in connection with the Proceeding, it is established that (1) such
Advanced Expenses are subject to the limitations and disqualifications described in the Indemnification Agreement or (2) an act
or omission by me was material to the matter giving rise to the Proceeding and (a) was committed in bad faith or (b) was
the result of active and deliberate dishonesty or (3) I actually received an improper personal benefit in money, property
or services or (4) in the case of any criminal proceeding, I had reasonable cause to believe that the act or omission was
unlawful, then I shall promptly reimburse the portion of the Advanced Expenses, together with the Applicable Legal Rate of interest
thereon, relating to the claims, issues or matters in the Proceeding as to which the foregoing findings have been established.

 

IN WITNESS WHEREOF, I have executed this
Affirmation and Undertaking on this _____ day of _______________, 20____.

 

 

 

_____________________________

Name:

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