Document:

Exhibit

2018 Performance Unit Award Agreement 
Under the W. R. Berkley Corporation 2014 Long-Term Incentive Plan
This 2018 Performance Unit Award Agreement (this “Agreement”), effective January 1, 2018, represents an Award of Performance Units by W. R. Berkley Corporation (the “Company”), to the Participant named below, pursuant to the provisions of the W. R. Berkley Corporation 2014 Long-Term Incentive Plan (the “Plan”). The value of the Performance Units will be determined based on the increase in the Company’s Book Value Per Share during the Performance Period, as determined below.
The Plan provides a complete description of the terms and conditions governing the Performance Units. If there is any inconsistency between the terms of this Agreement and the terms of the Plan, the Plan’s terms shall completely supersede and replace the conflicting terms of this Agreement. All capitalized terms shall have the meanings ascribed to them in the Plan, unless specifically set forth otherwise herein.  Important jurisdiction-specific modifications to this Agreement are contained in Exhibit A hereto and are incorporated herein by reference.
  
The parties hereto agree as follows:
1.    General Grant Information. The individual named below has been selected to be a Participant in the Plan and receive a grant of Performance Units, as specified below:
(a)  Participant:
(b)  Number of Performance Units Granted:
(c)  Initial Value of Performance Units: $0.00
(d)  Date of Grant: January 1, 2018
(e)  Performance Measure: Increase in Book Value Per Share, as set forth in Section 3 below.
2.    Performance Period. The Performance Period commences on January 1, 2018, and ends on December 31, 2022; provided, however, that, in the event that the Participant dies or experiences a Qualifying Termination, the Performance Period for such Participant shall be deemed to end on December 31 of the fiscal year immediately prior to the fiscal year in which such death or Qualifying Termination occurred.
3.    Value of a Performance Unit. Each Performance Unit shall have a value determined by multiplying the Increase in Book Value Per Share by two and eighty-four hundredths (2.84), subject to a maximum value of one hundred dollars ($100.00) per Performance Unit.
4.    Eligibility for Earned Performance Units. The Participant shall only be eligible for payment of earned Performance Units. Performance Units will be earned only if the Participant’s employment with the Company continues through the end of the Performance Period. Notwithstanding anything herein to the contrary, the Performance Units shall not be earned and shall not become payable unless and until the Participant has complied with the Competitive Action restriction set forth in Section 5(d) below on or prior to the Settlement Date.
5.    Payout of Performance Units. (a) Except as set forth in Section 5(b) or 8 below, the aggregate positive value, if any, of the earned Performance Units, based on the value of the earned Performance Units on the last day of the Performance Period as determined in accordance with this Agreement and subject to the maximum value set forth in Section 3 hereof, shall be paid to the Participant in cash following the last day of the Performance Period but in no event later than March 31, 2023 (also referred to as the Settlement Date).
(b)    In the event of the death or Qualifying Termination of the Participant, payment of the value, if any, of the earned Performance Units in accordance with the terms of this Agreement shall extinguish the Company’s obligation hereunder, and the Participant shall not be entitled to any further payment or appreciation in the value of the Performance Units. In the event such payment is made due to the Participant’s death, such payment shall be made to the Participant’s beneficiary (or the Participant’s estate if no beneficiary has been chosen or if such beneficiary has predeceased the Participant).  Any payment upon death or any Qualifying Termination shall be made within ninety (90) calendar days following such death or Qualifying Termination; provided, however, that if such ninety (90) day period spans two separate taxable years, such payment shall be made in the later taxable year; provided further, however, that any payment hereunder (calculated as of the end of the fiscal year immediately prior to the fiscal year in which such Qualifying Termination occurred) upon a Qualifying Termination shall be delayed until the earlier of (x) March 31, 2023 and (y) such time as the Participant has also undergone a “separation from service” as defined in Treas. Reg. 1.409A-1(h), at which time such payment shall be made to the Participant according to the schedule set forth in this Section 5(b) as if the Participant had undergone such Qualifying Termination (under the same circumstances), solely for the purpose of the date of payment, on the date of such “separation from service.” Notwithstanding anything herein to the contrary, to the extent the Participant is a “specified employee” as defined in Treas. Reg. 1.409A-1(i), any payment to be made upon the Participant’s “separation from service” shall be delayed until and made upon the earlier of (i) the six (6) month anniversary of the Participant’s “separation from service” and (ii) the Participant’s death.
(c)    This Award shall expire and the Company shall have no further obligation to make any payment hereunder once a payment is made pursuant to Section 5(a) or (b) above or Section 8 below.
(d)    If  prior to the Settlement Date, the Participant engages in a Competitive Action or enters into, or has entered into, an agreement (written, oral or otherwise) to engage in Competitive Action or has engaged in Misconduct, all of the Performance Units, whether earned or unearned, shall be immediately forfeited, and the Participant shall have no further rights with respect to such Performance Units. In the event that the Participant engages in any Competitive Action or enters into, or has entered into, an agreement (written, oral or otherwise) to engage in Competitive Action or engages in Misconduct on or after the Settlement Date (or said Competitive Action or agreement or Misconduct occurs prior to the Settlement Date and is discovered on or after the Settlement Date) but on or prior to the second anniversary of the Settlement Date, the Participant shall pay to the Company, upon demand by the Company, an amount equal to the amount paid to the Participant in respect of the Performance Units on the Settlement Date. The determination as to whether the Participant has engaged in any Competitive Action or Misconduct shall be made by the Committee in its sole and absolute discretion.  The Committee has sole and absolute discretion to determine whether, notwithstanding its determination that the Participant has engaged in a Competitive Action or Misconduct, recapture or forfeiture as provided herein shall not occur. The Committee’s exercise or nonexercise of such discretion with respect to any particular event or occurrence by or with respect to the Participant or any other recipient of Performance Units under the Plan shall not in any way reduce or eliminate the authority of the Committee to (i) determine that any event or occurrence by or with respect to the Participant constitutes engaging in Competitive Action or Misconduct, or (ii) determine the related Competitive Action or Misconduct date. The Participant acknowledges that the restriction with respect to engaging in a Competitive Action, in view of the nature of the business in which the Company is engaged, is reasonable in scope (as to both the temporal and geographical limits) and necessary in order to protect the legitimate business interests of the Company. The Participant acknowledges further that engaging in a Competitive Action or Misconduct would result in irreparable injuries to the Company and would cause loss in an amount that cannot be readily quantified. The Participant acknowledges further the amounts required to be paid to the Company pursuant to this provision are reasonable and are not liquidated damages nor shall they be characterized as such.
(e)    The Participant’s employment will not be considered to continue if his or her employment has been terminated (regardless of the reason for such termination and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where the Participant is employed or the terms of the Participant’s employment agreement, if any), and unless otherwise expressly provided in this Agreement or determined by the Committee, the Participant’s right to continue to earn pursuant to the Performance Units awarded hereunder, if any, will terminate as of such date and will not be extended by any notice period arising under local law or contract.  However, the Participant’s period of service would not include any contractual notice period (except for such period of time the Participant is actively providing substantial services as required by the Company during any notice period) or any period of “garden leave” or similar period arising under employment laws in the jurisdictions where the Participant is employed or the terms of Participant’s employment agreement, if any.
6.    Nontransferability. The Performance Units granted hereunder may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution, or as otherwise provided for in the Plan.
7.    Administration . This Agreement and the rights of the Participant hereunder are subject to all the terms and conditions of the Plan, as the same may be amended from time to time, as well as to such rules and regulations as the Committee may adopt for administration of the Plan. It is expressly understood that the Committee is authorized to administer, construe, and make all determinations necessary or appropriate to the administration of the Plan and this Agreement, all of which shall be final and binding upon the Participant, including without limitation any determination concerning a Competitive Action. Any inconsistency between the Agreement and the Plan shall be resolved in favor of the Plan.  If there is any inconsistency between this Agreement and Exhibit A, Exhibit A shall prevail.  The Participant hereby acknowledges that he or she has received a copy of the Plan and understands and agrees to the terms thereof.  This Agreement, together with the Plan, constitutes the entire agreement by and between the parties hereto with respect to the subject matter hereof, and this Agreement and the Plan supersede all prior agreements, correspondence and understandings and all prior and contemporaneous oral agreements and understandings, among the parties hereto with regard to the subject matter hereof.  
8.    Change in Control.  In the event of a Change in Control, unless otherwise specifically prohibited under applicable laws or by the rules and regulations of any governing governmental agencies or national securities exchanges: 
(a)    With respect to each outstanding Performance Unit that is assumed or substituted in connection with a Change in Control, in the event that the Participant’s employment with the Company is terminated (i) by the Company or a Subsidiary or Affiliate, as applicable, without Cause or (ii) by the Participant for Good Reason, in each case during the eighteen (18) month period following such Change in Control, the value of all Performance Units shall be determined and fixed as of the end of the fiscal year immediately preceding the fiscal year in which such termination occurs, and such value shall be paid to the Participant in accordance with, and subject to, the provisions of Sections 4 and 5 hereof.  Following such termination, Performance Units shall not accrue any additional value for the fiscal year in which such termination occurs or for any subsequent fiscal years.
(b)    With respect to each outstanding Performance Unit that is not assumed or substituted in connection with a Change in Control, immediately upon the occurrence of the Change in Control, which shall be deemed the end of the Performance Period, the value of all Performance Units shall be determined and fixed as of the end of the fiscal year immediately preceding the fiscal year in which such Change in Control occurs, and such value shall be paid to the Participant within ninety (90) calendar days following the date of such Change in Control; provided, however, that if such ninety (90) day period spans two separate taxable years, such payment shall be made in the later taxable year. Following such Change in Control, Performance Units shall not accrue any additional value for the fiscal year in which such Change in Control occurs or for any subsequent fiscal years.
(c)    For purposes of this Section 8, a Performance Unit shall be considered assumed or substituted for if, following the Change in Control, the Performance Unit is assumed or substituted for with one of comparable value and remains subject to the same terms and conditions that were applicable to the Performance Units immediately prior to the Change in Control.
(d)    For purposes of this Section 8, an event shall only constitute a Change in Control if the event constituting a Change in Control also constitutes “a change in the ownership or effective control of the Company, or in the ownership of a substantial portion of the assets of the Company” within the meaning of Section 409A(a)(2)(A)(v) of the Code and the regulations promulgated thereunder.
9.    Miscellaneous.
(a)    This Agreement shall not confer upon the Participant any right to continuation of employment by the Company, nor shall this Agreement interfere in any way with the Company’s right to terminate the Participant’s employment at any time.
(b)    The Committee may terminate, amend, or modify the Plan; provided, however, that no such termination, amendment, or modification of the Plan may in any material way adversely affect the Participant’s rights under this Agreement. 
(c)    The Company or a Subsidiary or Affiliate, as applicable, shall have the authority to deduct or withhold from any payment hereunder or from any other source of the Participant’s compensation from the Company or a Subsidiary or Affiliate, as applicable, or may require the Participant to remit to the Company or a Subsidiary or Affiliate, as applicable, before payment hereunder, an amount sufficient to satisfy federal, state, and local taxes (including Participant’s FICA obligation) required by law to be withheld with respect to any taxable event arising out of this Agreement. 
(d)    This Agreement shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 
(e)    To the extent not preempted by federal law, this Agreement shall be governed by, interpreted and construed in accordance with, the laws of the State of Delaware, regardless of its conflicts of laws principles.  The jurisdiction and venue for any dispute arising under, or any action brought to enforce or otherwise relating to, this Agreement will be exclusively in the courts of the State of Delaware, including the federal courts located in Delaware in the event federal jurisdiction exists.  Participant hereby irrevocably consents to the exclusive personal jurisdiction and venue of the federal and State courts of the State of Delaware for the resolution of any disputes arising out of, or relating to, this Agreement and irrevocably waives any claim or argument that the courts of the State of Delaware are an inconvenient forum.  In any action arising under or relating to this Agreement, the court shall not have the authority to, and shall not, conduct a de novo review of any determination made by the Committee or the Company but is instead authorized to determine solely whether the determination was the result of fraud or bad faith under Delaware law.
(f)    All obligations of the Company under the Plan and this Agreement with respect to the Performance Units shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company.
(g)    The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision or provisions of this Agreement, which shall remain in full force and effect.  If any provision of this Agreement is held to be invalid, void or unenforceable in any jurisdiction, any court so holding shall substitute a valid, enforceable provision that preserves, to the maximum lawful extent, the terms and intent of such provisions of this Agreement.  If any of the provisions of, or covenants contained in, this Agreement are hereafter construed to be invalid or unenforceable in any jurisdiction, the same shall not affect the remainder of the provisions or the enforceability thereof in any other jurisdiction, which shall be given full effect, without regard to the invalidity or unenforceability in such other jurisdiction.  Any such holding shall affect such provision of this Agreement, solely as to that jurisdiction, without rendering that or any other provisions of this Agreement invalid, illegal or unenforceable in any other jurisdiction.  If any covenant should be deemed invalid, illegal or unenforceable because its scope is considered excessive, such covenant will be modified so that the scope of the covenant is reduced only to the minimum extent necessary to render the modified covenant valid, legal and enforceable.
(h)    By accepting this Award or other benefit under the Plan, the Participant and each person claiming under or through the Participant shall be conclusively deemed to have indicated their acceptance and ratification of, and consent to, any action taken under the Plan by the Company, the Board or the Committee.
(i)    TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE PARTICIPANT, EVERY PERSON CLAIMING UNDER OR THROUGH THE PARTICIPANT, AND THE COMPANY HEREBY WAIVE AND RELEASE ANY CLAIM UNDER STATE OR FEDERAL LAW THEY MAY HAVE HAD TO A JURY TRIAL WITH RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER, OR IN CONNECTION WITH THE PLAN OR THIS AWARD AGREEMENT ISSUED PURSUANT TO THE PLAN.
(j)    Definitions. The following terms shall have the meanings ascribed to them when used in this Agreement:
(i)    “Beginning Book Value Per Share” means $43.97.
(ii)    “Book Value Per Share” as of the end of any fiscal year shall be equal to the quotient of X divided by Z, where X is equal to the sum of A, B, C, D, E and F minus the sum of G and H, and Z is equal to the sum of W plus Y:  [((A+B+C+D+E+F)-(G+H)) ÷ (W+Y)].  For purposes of this calculation, 
(A) shall be equal to the Company’s total common stockholders’ equity as of the end of such fiscal year, as determined in accordance with generally accepted accounting principles and reported in the Company’s audited financial statements, 
(B) shall be equal to the cumulative after-tax expense of the Company from January 1, 2018 through the end of such fiscal year arising from all the Awards made under the Plan, 
(C) shall be equal to the cumulative cash dividends on the Company’s common stock declared from January 1, 2018 through the end of such fiscal year, 
(D) shall be equal to the cumulative cost of the Company’s common stock repurchased by the Company from January 1, 2018 through the end of such fiscal year, 
(E) shall represent imputed interest on the cost of the Company’s common stock repurchased by the Company and the amount of special dividends (any dividend other than the regular quarterly cash dividend) paid by the Company during the Performance Period.  Such interest shall be imputed on such repurchases and special dividends from the first day of the quarter following such repurchases and special dividends to the end of the Performance Period.  The imputed interest rate shall be equal to the average annual Increase in Book Value Per Share for the Performance Period, before consideration of this subsection E,
(F) shall be equal to the cumulative net proceeds from the sale of equity securities (other than securities of consolidated subsidiaries or securities accounted for on the equity method) from January 1, 2018 through the end of such fiscal year minus the book value of such equity securities,
(G) shall be equal to the Company’s accumulated other comprehensive income as of the end of such fiscal year, 
(H) shall be equal to the sum of (i) unrealized gains or losses on equity securities as defined in F above as of December 31, 2017 (that were reclassified from accumulated other comprehensive income to retained earnings) and (ii) cumulative unrealized gains and losses on equity securities as defined in (F) above from January 1, 2018 through the end of such fiscal year, 
(W) shall be equal to the number of shares of the Company’s common stock issued and outstanding, net of treasury shares, as of the end of such fiscal year, and 
(Y) shall be the cumulative number of shares of the Company’s common stock repurchased by the Company from January 1, 2018 through the end of such fiscal year.  
Book Value Per Share shall be calculated without taking into account any forward or reverse split of the Company’s common stock or any stock dividend declared on the Company’s common stock and there shall be no adjustment to the number of Performance Units awarded hereunder in either event.  Notwithstanding anything herein to the contrary the formula to determine Book Value Per Share may be further modified to take into account any factor set forth in Section 7.2 of the Plan.
(iii)    “Cause” means “Cause” as defined in any active employment agreement between the Participant and the Company or any Subsidiary or Affiliate, as applicable, or, in the absence of any such definition, means the occurrence of any one of the following events: (A) fraud, personal dishonesty, embezzlement or acts of gross negligence or gross misconduct on the part of the Participant in the course of his or her employment or services, (B) the Participant’s engagement in conduct that is materially injurious to the Company, a Subsidiary or an Affiliate, (C) the Participant’s conviction by a court of competent jurisdiction of, or pleading “guilty” or “no contest” to, (x) a felony or (y) any other criminal charge (other than minor traffic violations) which could reasonably be expected to have a material adverse impact on the Company’s or a Subsidiary’s or an Affiliate’s reputation or business; (D) public or consistent drunkenness by the Participant or his or her illegal use of narcotics which is, or could reasonably be expected to become, materially injurious to the reputation or business of the Company, a Subsidiary or an Affiliate or which impairs, or could reasonably be expected to impair, the performance of the Participant’s duties to the Company, a Subsidiary or an Affiliate; (E) willful failure by the Participant to follow the lawful directions of a superior officer; or (F) the Participant’s continued and material failure to fulfill his or her employment obligations to the Company or any Subsidiary or Affiliate.
(iv)  “Client” means any insured, agent, producer or other intermediary to or through whom the Company or its Subsidiaries or Affiliates provides insurance or reinsurance or related services.
(v)    “Competitive Action” means, either directly or indirectly, whether as an employee, consultant, independent contractor, partner, joint venturer or otherwise, (A)  engaging in or directing any business activities, except those which are ministerial or clerical in nature, which are competitive with any business activities conducted by the Company at the relevant time of enforcement in any geographical area (x) where the Participant had a responsibility on behalf of the Company or about which the Participant received Confidential Information and (y) in which the Company is engaged in business at the relevant time of enforcement, (B) on behalf of any person or entity engaged in business activities competitive with the business activities of the Company, soliciting or inducing, or in any manner attempting to solicit or induce, any person employed by, or as an agent or producer of, the Company to terminate such person's employment or agency or producer relationship, as the case may be, with the Company, (C) diverting, or attempting to divert, any Covered Business Partner from doing business with the Company or attempting to induce any Covered Business Partner to cease being a customer of the Company, (D) soliciting a Covered Business Partner to do business with a competitor or prospective competitor of the Company or (E) making use of, or attempting to make use of, the Company’s property or Confidential Information, other than in the course of the performance of services to the Company or at the direction of the Company.  References to the Company in this definition and Exhibit A to this Agreement shall include the Company and all Subsidiaries and Affiliates.
(vi)  “Confidential Information” means an item of information or a compilation of information, in any form (tangible or intangible), related to the business of the Company or of a subsidiary for whom Participant performs services that the Company/subsidiary has not made public or authorized public disclosure of, and that is not generally known to the public through proper means, including but not limited to:
		
	(A)
	underwriting premiums or quotes, income and receipts, claims records and levels, renewals, policy wording and terms, reinsurance quotas, profit commission; 

		
	(B)
	operating unit or other business projections and forecasts; 

		
	(C)
	Client lists, brokers lists and price sensitive information; 

		
	(D)
	technical information, reports, interpretations, forecasts, corporate and business plans and accounts, business methods, financial details, projections and targets; 

		
	(E)
	remuneration and personnel details; 

		
	(F)
	planned products, planned services, marketing surveys, research reports, market share and pricing statistics, budgets, fee levels; 

		
	(G)
	computer passwords, the contents of any databases, tables, know how documents or materials; 

		
	(H)
	commissions, commission charges, pricing policies and all information about research and development; and

(I) the Company’s suppliers’, Clients’ or Prospective Clients’ names, addresses (including email addresses), telephone, facsimile or other contact numbers and contact names, the nature of their business operations, their requirements for services supplied by the Company and all confidential aspects of their relationship with the Company. 
(vii)  “Covered Business Partner” means any person, concern or entity (including, without limitation, any Client) as to which Participant, or persons supervised by Participant, had more than de minimis business-related contact or received Confidential Information during the most recent two years of Participant’s employment with the Company or its Subsidiaries or Affiliates or such shorter period of time as employed (the “Look Back Period”).
(viii)    “Disability” means the inability of the Participant to continue to perform services for the Company or any Subsidiary or Affiliate, as applicable, on account of his or her total and permanent disability as determined by the Committee.
(vi)    “Ending Book Value Per Share” means the highest Book Value Per Share determined as of the end of each fiscal year in the Performance Period.
(v)    “Good Reason” means “Good Reason” as defined in any active employment agreement between the Participant and the Company or any Subsidiary or Affiliate, as applicable, or, in the absence of any such definition, means the occurrence of any one of the following events, unless the Participant agrees in writing that such event shall not constitute Good Reason: (A) a material reduction in the Participant’s duties or responsibilities from those in effect immediately prior to a Change in Control; (B) a material reduction in the Participant’s base salary below the levels in effect immediately prior to a Change in Control; or (C) relocation of the Participant’s primary place of employment to a location more than fifty (50) miles from its location, and further from the Participant’s primary residence, immediately prior to a Change in Control; provided, however, that with respect to any Good Reason termination, the Company will be given not less than thirty (30) days’ written notice by the Participant (within sixty (60) days of the occurrence of the event constituting Good Reason) of the Participant’s intention to terminate the Participant’s employment for Good Reason, such notice to state in detail the particular act or acts or failure or failures to act that constitute the grounds on which the proposed termination for Good Reason is based, and such termination shall be effective at the expiration of such thirty (30) day notice period only if the Company has not fully cured such act or acts or failure or failures to act that give rise to Good Reason during such period.  Further notwithstanding any provision in this definition to the contrary, in order to constitute a termination for Good Reason, such termination must occur within six (6) months of the initial existence of the applicable condition.
(xi)    “Increase in Book Value Per Share” means the amount, if any, by which the Ending Book Value Per Share exceeds Beginning Book Value Per Share for the Performance Period.
(xii)    “Misconduct” means the Participant’s engagement, during the Participant’s employment with the Company or any Subsidiary or any Affiliate, in an act which would, in the judgment of the Committee, constitute fraud that could be punishable as a crime, or embezzlement against either the Company, any Subsidiary or any Affiliate.
(xiii)  “Prospective Client” means any person, concern or entity (including, without limitation, any potential insured, agent, producer or other intermediary) to or through whom the Company or any of its Subsidiaries or Affiliates has been in negotiations during the Look Back Period to provide insurance or reinsurance or related services.  
(xiv)    “Qualifying Termination” means the termination of the Participant’s employment with the Company and all Subsidiaries and Affiliates prior to the end of the Performance Period as a result of: (i) Disability or Retirement; (ii) an action by the Company or a Subsidiary or Affiliate, as applicable, for any reason other than Cause; or, (iii) following a Change in Control, an action by the Participant for Good Reason.
(xvi)    “Restricted Period” means the period beginning on the date hereof through the second anniversary of the Settlement Date.
(xv)    “Retirement” means the Participant’s retirement from service with the Company and all Subsidiaries and Affiliates with the written consent of the Executive Chairman of the Board of the Company or the Committee.
(xvi)    “Settlement Date” means the date on which the value of the Performance Units is actually paid to the Participant.
10.    Signature in Counterparts.  This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.
11.    Protected Conduct.  Nothing in this Agreement prohibits the Participant from reporting an event that the Participant reasonably and in good faith believes is a violation of law to the relevant law-enforcement agency (such as the Securities and Exchange Commission or Department of Labor), requires notice to or approval from the Company before doing so, or prohibits the Participant from cooperating in an investigation conducted by such a government agency.  This may include a disclosure of trade secret information provided that it must comply with the restrictions in the Defend Trade Secrets Act of 2016 (DTSA).  The DTSA provides that no individual will be held criminally or civilly liable under Federal or State trade secret law for the disclosure of a trade secret that: (i) is made in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and made solely for the purpose of reporting or investigating a suspected violation of law; or, (ii) is made in a complaint or other document if such filing is under seal so that it is not made public. Also, the DTSA further provides that an individual who pursues a lawsuit for retaliation by an employer for reporting a suspected violation of the law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal, and does not disclose the trade secret, except as permitted by court order.  To the extent that the Participant is covered by Section 7 of the National Labor Relations Act (NLRA) because the Participant is not in a supervisor or management role, nothing in this Agreement shall be construed to prohibit the Participant from using information the Participant acquires regarding the wages, benefits, or other terms and conditions of employment at the Company for any purpose protected under the NLRA.
[Signatures to appear on following page]
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed effective as of January 1, 2018.
W. R. Berkley Corporation

By:    __________________________
Name: 
    Title:

______________________________
Participant

Please indicate the name of the Participant’s beneficiary:

    
Name

The Participant may change his or her beneficiary hereunder only by written notice to the Company, which change will become effective only upon receipt by the Company during the Participant’s lifetime.
EXHIBIT A

JURISDICTION SPECIFIC MODIFICATIONS

As used in this Exhibit A, the term “Company” includes W. R. Berkley Corporation and all of its Subsidiaries and Affiliates.

I.  States of the United States of America

A.    Arkansas, Connecticut, Illinois, Indiana, Maryland, Minnesota, South Carolina, South Dakota, Texas, and Virginia:  Section 9(j)(v)(A) is further limited to situations where the Participant is performing services that are the same as or similar in function or purpose to the services the Participant performed for the  Company (as appropriate) during the Look Back Period.

B.    Arizona.  For an Arizona resident, for so long as the Participant resides in Arizona and is subject to the laws of Arizona:  (i) the restrictions in Sections 9(j)(v)(A), (C) and (D) will only apply within any geographical area (x) where the Participant had responsibilities on behalf of the Company or about which the Participant received Confidential Information during the Look Back Period and (y) in which the Company is engaged in business; (ii) Sections 9(j)(v)(A) is further limited to situations where the Participant is performing services that are the same as or similar in function or purpose to the services the Participant performed for the Company during the Look Back Period; and (iii) with respect to the Participant’s nondisclosure obligation under Section 9(j)(v)(E), the Participant’s nondisclosure obligation only extends during the Restricted Period (this is not a deviation from the text of the Agreement, but a clarification for the avoidance of any doubt).

C.    California.  For a resident of California, for so long as the Participant resides in California and is subject to the laws of California:  (i) no provision or requirement of this Agreement will be construed or interpreted in a manner contrary to the public policy of the State of California; (ii) the restrictions in Section 9(j)(v)(A) shall not apply; (iii) Sections 9(j)(v)(C) and (D) shall be limited to situations where the Participant is aided in his or her conduct by the Participant’s use or disclosure of trade secrets (as defined by applicable law); and (iv) Section 9(i) shall not apply.

D.    Nebraska.  For a Nebraska resident, for so long as the Participant resides in Nebraska and is subject to the laws of Nebraska:  (i) Section 9(j)(v)(A) shall not apply; and (ii) the definition of “Covered Business Partner” in Section 9(j)(vii) is modified so that it means any persons or entities with which the Participant, or persons supervised by the Participant, did business and had personal business-related contact during the Look Back Period.

E.    North Carolina. For a North Carolina resident, for so long as the Participant resides in North Carolina and is subject to the laws of North Carolina: (i) Section 9(j)(v)(Ai) is further limited to situations where the Participant is performing services that are the same as or similar in function or purpose to the services the Participant performed for the Company during the Look Back Period; and (ii) the Look Back Period shall be calculated looking back two years from the date of enforcement and not from the date employment ends. 

F.    North Dakota.  For a resident of North Dakota, for so long as the Participant resides in and is subject to the laws of North Dakota: (i) no provision or requirement of this Agreement will be construed or interpreted in a manner contrary to the public policy of the State of North Dakota; (ii) the restrictions in Section 9(j)(v)(A) shall not apply; and (iii) Sections 9(j)(v)(C) and (D) shall be limited to situations where the Participant is aided in his or her conduct by the  Participant’s use or disclosure of trade secrets (as defined by applicable law).

G.    Oklahoma.  For an Oklahoma resident, for so long as the Participant resides in Oklahoma and is subject to the laws of Oklahoma:  the  restrictions in Section 9(j)(v)(A) shall not apply and  “Covered Business Partner” of the Company means any individual, company, or business entity (including, without limitation, any Client) with which the Company has transacted business within the Look Back Period and with which the Participant, or persons supervised by the Participant, had material business-related contact or about which the Participant had access to Confidential Information during the Look Back Period.

H.    Wisconsin.  For a Wisconsin resident, for so long as Participant resides in Wisconsin and is subject to the laws of Wisconsin:  (i) Section 9(j)(v)(A) is further limited to situations where the Participant is performing services that are the same as or similar in function or purpose to the services the Participant performed for the Company during the Look Back Period; and (ii) Section 9(j)(v)(B) is rewritten as follows:   “participating in soliciting or attempting to solicit any employee of the Company that is in a Sensitive Position to leave the employment of the Company on behalf of (or for the benefit of) a competing business, or knowingly assists a competing business in efforts to hire such an employee away from the Company.  An employee in a “Sensitive Position” refers to an employee of the Company who is in a management, supervisory, sales, research and development, underwriting, claims, actuarial, loss control or similar role where the employee is provided Confidential Information or is involved in business dealings with the Company’s customers.”

II.  Countries Other than the United States of America

Argentina. For an Argentinian resident, for so long as the Participant resides in Argentina and is subject to the laws of Argentina: 
(i)Section 9(e) shall be deleted in its entirety and replaced with the following:  

“(e)   This Agreement shall be construed and interpreted in accordance with the laws of Argentina.  The Participant hereby irrevocably consents to the exclusive personal jurisdiction of the Argentine courts for the resolution of any disputes arising out of, or relating, to this Agreement.” 
		
	(ii)   
	This Agreement shall not be effective unless the Participant physically signs an original Agreement.

Australia. For an Australian resident, for so long as the Participant resides in Australia and is subject to the laws of Australia: 

		
	(i)
	Section 9(e) shall be deleted in its entirety and replaced with the following:

“(e) This Agreement shall be construed and interpreted in accordance with the laws of the State of New South Wales in Australia.  The Participant hereby irrevocably consents to the personal jurisdiction of the federal and state courts of the State of New South Wales in Australia for the resolution of any disputes arising out of, or relating to, this Agreement.”

		
	(ii)
	The provisions in “Addendum for Australia, Canada, Hong Kong and Singapore” set forth below shall be applicable.

Canada. For a Canadian resident, for so long as the Participant resides in Canada and is subject to the laws of Canada:
 
		
	  
	The provisions in “Addendum for Australia, Canada, Hong Kong and Singapore” set forth below shall be applicable.

Colombia. For a Colombian resident, for so long as the Participant resides in Colombia and is subject to the laws of Colombia:  
The Participant agrees that the Performance Units rights derived from this Agreement are not consideration for the services rendered by the Participant in Colombia.  For this Agreement to be effective, the Participant must enter into a local agreement, governed by Colombian laws, with the Participant’s current employer in which the Participant agrees to the statement in the prior sentence. 
Hong Kong. For a Hong Kong resident, for so long as the Participant resides in Hong Kong and is subject to the laws of Hong Kong:  

		
	(i)
	Section 6 shall be deleted in its entirety and replaced with the following:  

SECTION 6.  Non-Transferability.  (a)  Subject to Section 6(b) below and except as specifically consented to by the Committee, the Participant may not sell, transfer, pledge, or otherwise encumber or dispose of the Performance Units other than by will, the laws of descent and distribution, or as otherwise provided for in the Plan. 

(b) Notwithstanding any other provisions of this Agreement, if the Participant resides in, or received this offer in Hong Kong, the Participant shall have no rights or entitlement to sell, transfer or otherwise dispose of the Performance Units, except if such sale, transfer or disposal is permitted pursuant to the Plan and specifically consented to by the Committee. 

		
	(ii)
	The provisions in “Addendum for Australia, Canada, Hong Kong and Singapore” set forth below shall be applicable.

Norway. For a Norwegian resident, for so long as Participant resides in Norway and is subject to the laws of Norway:  
		
	(i)
	In Section 5(d), the words “or Solicitation” shall be added, in each instance after the phrase “Competitive Action”;

		
	(ii)
	In Section 5(d), in the second sentence, solely with respect to Solicitation  the word “second” shall be replaced with “first”;

		
	(iii)
	In Section 9(j)(v), subsections (C) and (D) shall be deleted and subsection (E) shall be renumbered as subsection (C); and

		
	(iv)
	In Section 9(j), the following new subsection (xvii) shall be added: 

“(xvii) ”Solicitation”.  For purposes of this Agreement, the Participant has engaged in "Solicitation" if the Participant from the date hereof through the first anniversary of the Settlement Date, directly or indirectly (i) diverts, or attempts to divert, any person, concern or entity from doing business with the Company or attempts to induce any such person, concern or entity to cease being a customer of the Company, (ii) solicits the business of the Company or (iii) influences customers, suppliers and/or other business associates/contract parties of the Company  to limit or  terminate their relationship with the Company . With respect to customers, the preceding sentence only applies to customers which the Participant has had contact with and/or responsibility for during the last 12 months prior to the time of the written statement as mentioned below.

(v)    In Section 5, a new subsection (f) shall be added:

(f)  The Company may, upon the request from the Participant and in connection with termination, summary dismissal or other cessation of employment, decide whether and to what extent the Participant’s obligation to refrain from Solicitation shall be invoked. With respect to customers, the procedure in connection with such a decision shall comply with the mandatory provisions of Chapter 14A in the Norwegian Working Environment Act, including the specification of which customers are covered by the Participant’s obligation to refrain from Solicitation in a written statement.”

Singapore. For a Singaporean resident, for so long as the Participant resides in Singapore and is subject to the laws of the Republic of Singapore: 

		
	(i)
	In second sentence of Section 5(d),the phrase “that, in the Committee’s sole and absolute discretion, reflects the seriousness of the Competitive Action and/or Misconduct; the maximum amount that the Company may demand from the Participant is” shall be added after the words “an amount” ;

 
		
	(ii)
	  In Section 5(d), in  the last sentence, the following phrase shall be deleted:

“and are not liquidated damages nor shall they be characterized as such”;

		
	(iii)
	  Section 9(e) shall be deleted in its entirety and replaced with the following:

“(e)  This Agreement shall be construed and interpreted in accordance with the laws of the State of Delaware.  The Participant hereby irrevocably consents to the personal jurisdiction of the courts of the Republic of Singapore for the resolution of any disputes arising out of, or relating to, this Agreement.”
 
		
	(iv)
	  The provisions in “Addendum for Australia, Canada, Hong Kong and Singapore” set forth below shall be applicable.

United Kingdom.  For a United Kingdom resident, for so long as the Participant resides in the United Kingdom and is subject to the laws of England and Wales or if the Participant is employed under an employment contract which is governed by English law at the time of grant of the Performance Units:  (i) in the last sentence of Section 4 the phrase “the Competitive Action restriction set forth in Section 5(d)” shall be deleted and replaced with “the restrictions set forth in Exhibit A II. Countries other than the United States of America:  United Kingdom” and (ii) the following terms and provisions shall amend and supersede the terms and provisions of Section 5(d), Section 9(e), Section 9(j)(iv), Section 9(j)(v), Section 9(j)(vi), Section 9(j)(vii), Section 9(j)(xii) and Section 9(j)(xiii) of this Agreement as follows:

1.     TERMINATION OF EMPLOYMENT
		
	 
	With effect from the earlier of the date of termination of the Participant’s employment or the date that the Participant gives or receives notice of termination of the Participant’s employment for any reason, any unsettled Performance Units shall lapse and be forfeited (except as set out in Section 5(b) of this Agreement and subject to the forfeiture provisions in paragraph 3 below) and the Participant shall have no further rights with respect to any such unsettled Performance Units.

		
	2. 
	RESTRICTIVE COVENANTS

		
	2.1
	The Participant covenants with the Company and the Group that the Participant will not, save with the prior written consent of the Committee (in its absolute discretion):

		
	2.1.1.
	during the Restricted Period directly or indirectly be employed, engaged or retained by or otherwise concerned or interested in any Competing Business. For this purpose, the Participant is directly or indirectly employed, engaged or retained by or concerned or interested in a Competing Business if: 

(a)    the Participant carries it on as principal or agent; or
		
	(b)
	the Participant is a partner, director, employee, secondee, consultant or agent in, of or to any person who carries on the Competing Business;

		
	(c)
	the Participant has any direct or indirect financial interest (as shareholder, creditor or otherwise) in any person who carries on the Competing Business; and/or

		
	(d)
	the Participant is a partner, director, employee, secondee, consultant or agent in, of or to any person who has a direct or indirect financial interest (as shareholder, creditor or otherwise) in any person who carries on the Competing Business,

disregarding any financial interest the Participant may have in securities which are listed or dealt in on a recognised investment exchange if the Participant is interested in securities which amount to less than 3% of the issued securities of that class and which, in all circumstances, carry less than 3% of the voting rights (if any) attaching to the issued securities of that class;

		
	2.1.2
	during the Restricted Period and whether directly or indirectly, either alone or with or on behalf of any person, firm, company or entity and whether on his or her own account or as principal, partner, shareholder, director, employee, consultant or in any other capacity whatsoever, have any business dealings with any Client or Prospective Client in relation to or for the benefit of a Competing Business;    

		
	2.1.3
	during the Restricted Period and whether directly or indirectly, either alone or with or on behalf of any person, firm, company or entity and whether on his or her own account or as principal, partner, shareholder, director, employee, consultant or in any other capacity whatsoever, canvass or solicit business or custom from or seek to entice away any Client or Prospective Client from the Company or any Group Company in relation to or for the benefit of a Competing Business; 

		
	2.1.4
	during the Restricted Period, directly or indirectly, solicit or endeavour to solicit the employment or engagement of any Key Employee (whether or not such person would thereby breach their contract of employment or engagement);

		
	2.1.5
	at any time after the Termination Date represent himself as being in any way connected with (other than as a former employee) or interested in the business of the Company or any Group Company or use any registered names, domain names or trading names the same as or that could reasonably be expected to be confused with any such names used by the Company or any Group Company.

		
	2.1.6 
	before or after the Termination Date, and except in the proper performance of his or her duties of employment by the Company or any Group Company, directly or indirectly use for his or her own purposes or those of a third party or disclose to any third party any Confidential Information. The Participant will use his or her best endeavours to prevent any unauthorised use or disclosure of Confidential Information. The obligations contained in this clause 2.1.6 will not apply to any disclosures required by law or to any information or documents which after the Termination Date are in the public domain other than by way of unauthorised disclosure.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

		
	2.2
	The Participant gives the covenants above to the Company as trustee for itself (and any company forming part of the Group). 

		
	2.3
	Each restriction contained in this clause 2 is an entirely separate and independent restriction, despite the fact that they may be contained in the same phrase, and if any part is found to be unenforceable the remainder will remain valid and enforceable. 

		
	2.4
	While the restrictions in this clause 2 are considered by the parties to be fair and reasonable in the circumstances, it is agreed that if any such restriction should be held to be void or ineffective for any reason but would be treated as valid and effective if some part of parts of the restriction were deleted, the restriction in question will apply with such deletion as may be necessary to make it valid and effective. 

		
	2.5
	If, during the Participant’s employment or any period during which these restrictions apply, any person, firm, company or entity offers the Participant any employment, engagement, arrangement or contract which might or would cause him or her to breach any of the restrictions, he or she will notify that person, firm, company or entity of the terms of these restrictions. 

		
	2.6
	The period of any restraint on the Participant’s activities after the Termination Date imposed pursuant to clauses 2.1.1 to 2.1.4 shall be reduced pro rata by any period of garden leave served by the Participant pursuant to his or her service agreement with the Company or any Group Company.

		
	2.7
	If the Participant breaches any of the covenants contained in clauses 2.1.1 to 2.1.6, then any unsettled Performance Units will lapse with immediate effect and the Participant will be obliged to return all amounts paid to the Participant in respect of the Performance Units within the Restricted Period to the Company within 14 days of being notified by the Company of its discovery of the breach.

		
	2.8
	In this clause, the following definitions shall apply:

	
		
	“Client”

	means any person, firm, company or other business entity whom or which during the Relevant Period: 
(a) to whom the Company or any Group Company provided insurance or reinsurance; or 
(b) was an insurance intermediary which introduced such insurance or reinsurance business to the Company or any Group Company, 
and in each case with whom or which during the Relevant Period: 
i)    the Participant (or any person reporting to the Participant) had Material Dealings in relation to Relevant Business; or
ii)    about whom or which the Participant has had Confidential Information during the course of his or her employment.

	“Competing Business”
	means any business which at any time is in or which intends to be in competition with any Relevant Business.

	“Confidential Information”
	means any and all information which is of a confidential nature or which the Company reasonably regards as being confidential or a trade secret concerning the business, business performance or prospective business, financial information or arrangements, plans or internal affairs of the Company, any Group Company or any of their respective Clients or Prospective Clients including without prejudice to the generality of the foregoing all information, records and materials relating to:
(1)    underwriting premiums or quotes, income and receipts, claims records and levels, renewals, policy wording and terms, reinsurance quotas, profit commission; 
(2)    syndicate or other business projections and forecasts; 
(3)    Client lists, brokers lists and price sensitive information; 
(4)    technical information, reports, interpretations, forecasts, corporate and business plans and accounts, business methods, financial details, projections and targets; 
(5)    remuneration and personnel details; 
(6)    planned products, planned services, marketing surveys, research reports, market share and pricing statistics, budgets, fee levels; 
(7)    computer passwords, the contents of any databases, tables, know how documents or materials; 
(8)    commissions, commission charges, pricing policies and all information about research and development; and
(9)    the Company’s or any Group Company’s suppliers’, Clients’ or Prospective Clients’ names, addresses (including email addresses), telephone, facsimile or other contact numbers and contact names, the nature of their business operations, their requirements for services supplied by the Company or any Group Company and all confidential aspects of their relationship with the Company or any Group Company.

	“directly or indirectly”
	means (without prejudice to the generality of the expression) either alone or jointly with or on behalf of any other person and whether on his or her own account or in partnership with another or others or as the holder of any interest in or as officer, employee or agent of or consultant to any other person.

	“Group”
	means the Company, its subsidiaries or holding companies from time to time and any subsidiary of any holding company from time to time; and “Group Company” means any company within the Group.

	“Key Employee”
	means any director or officer of the Company or any Group Company and/or any employee (other than administrative or clerical personnel) of the Company or any Group Company, in each case who, at any time during the Relevant Period: 
i)    was employed by the Company or any Group Company; and
ii)    with whom the Participant has had Material  Dealings or exercised control or had management responsibility for; and/or 
iii)    has had access to or has obtained Confidential Information during the Relevant Period.

	“Material Dealings”
	means receiving orders, instructions or enquiries from, contracting or making preparations to contract with, making sales or presenting to or with, tendering for business from, having responsibility with or for, having personal knowledge of or otherwise having significant other contact.

	 
	 

	“Prospective Client”

	means any person, firm, company or other business entity who was at any time during the Relevant Period: 
(a) in negotiations with the Company or any Group Company for the provision of insurance or reinsurance; or 
(b) an insurance intermediary who may introduce such insurance or reinsurance business to the Company or any Group Company, 
and in each case with whom or which during the Relevant Period: 
i)    the Participant (or any person reporting to the Participant) had Material Dealings in relation to Relevant Business; or
ii)    about whom or which the Participant has had Confidential Information during the course of Participant’s employment.
Provided that this definition shall not apply to any such person, firm, company or other business entity which has withdrawn from or discontinued such negotiations or discussions, having stated its intention to do so (other than through any unlawful activity by the Participant).

	“Relevant Business”
	means any class or classes of insurance or reinsurance business which was underwritten in the twelve months immediately prior to the Termination Date by the Company or any Group Company and with which the Participant was directly or indirectly materially concerned or involved or had personal knowledge in the course of Participant’s duties during the Relevant Period.

	“Relevant Period”
	means (1) during employment, the twelve month period immediately prior to the action or activity that may be in breach of clauses 2.1.1 to 2.1.4 and (2) after termination of employment, the twelve month period immediately prior to the Termination Date.

	“Restricted Period”
	means the period beginning on the date hereof and ending two years following the Settlemant Date.

	“Termination Date”

	means the date on which the Participant’s employment or engagement with the Company terminates for any reason.

		
	3.
	CLAWBACK

		
	3.1
	If at any time under the terms of this Agreement the Committee becomes aware of any material wrongdoing, negligence or misconduct on the part of the Participant that would have entitled the Company to terminate the Participant's employment with or without notice for Cause, and (x) if such material wrongdoing, negligence or misconduct occurred prior to the Settlement Date, all Performance Units will lapse with immediate effect or (y) if such material wrongdoing, negligence or misconduct occurred on or after the Settlement Date or occurred prior to the Settlement Date but was not discovered until after the Settlement Date, the Company will be entitled, in its absolute discretion, to recover from the Participant up to 100% of the amount paid on the Settlement Date to the Participant in respect of  the Performance Units (which have been settled within the 2 years prior to such determination by the Committee)  to the Company within 14 days of being notified in writing by the Company of its discovery of the material wrongdoing, negligence or misconduct. 

		
	3.2
	Clause 3.1 is without prejudice to the Company's other remedies for such wrongdoing or any other clawback policy that the Company may adopt from time to time as required by applicable laws or the applicable listing rules of any securities exchange.

		
	3.3
	The Committee may review any Performance Units granted to the Participant under the terms of this Agreement, in light of:  

		
	a.
	there being a significant deterioration in the financial health of the Company, the Group or the business area or team in which the Participant worked; 

		
	b.
	the Participant having caused harm to the reputation of the Company or the Group;

		
	c.
	the Participant having deliberately misled the Company in relation to the financial performance of the Company, the Group or the business area or team in which he or she worked; and/or

		
	d.
	the Participant’s actions having amounted to gross misconduct, incompetence or negligence.

Following a review, the Committee may, in its sole discretion, (x) if prior to the Settlement Date, determine that up to 100% of any unsettled Performance Units granted under this Agreement will lapse with immediate effect or, (y) if on or after the Settlement Date, the Company will be entitled in its absolute discretion to recover from the Participant up to 100% of the amount paid to the Participant in respect of the Performance Units granted under this Agreement (which have been settled within the 2 years prior to such determination by the Committee). 

		
	3.4
	The Participant agrees that any sums owed to the Company or any Group Company under this Agreement including any adjustment, forfeiture or repayment may be deducted from any sums due to the Participant from the Company or any Group Company. For the avoidance of doubt, this is without prejudice to any right the Company or the Group may have at any time to recover any sums from the Participant and the Participant agrees that such sums are recoverable by the Company or any Group Company as a debt.

		
	3.5
	In this Clause 3, “Cause” means:

		
	a.
	any serious negligence or gross misconduct by the Participant in connection with or affecting the business or affairs of the Company or any member of the Group;

		
	b.
	the Participant being convicted of any arrestable offence other than an offence under road traffic legislation in the UK; or

		
	c.
	the Participant being convicted of an offence under any statutory enactment or regulation relating to insider dealing or market abuse.

4.     CHOICE OF LAW

		
	4.1
	Any dispute or claim (including non-contractual disputes or claims) arising out of or in connection with this Agreement or its subject matter or formation shall be governed by and construed in accordance with the law of England and Wales.

5.    ARBITRATION 
		
	5.1
	If at any time any dispute or question shall arise between the parties arising out of or in connection with this Agreement or its or their validity, construction or performance then the same shall be referred to and finally resolved by arbitration under the London Court of International Arbitration Rules, which Rules are deemed to be incorporated by reference into this clause.

The number of arbitrators shall be three.
The seat, or legal place, of arbitration shall be London, England.
The language to be used in the arbitral proceedings shall be English.
The governing law of the contract shall be the substantive law of England and Wales.

Addendum for Australia, Canada, Hong Kong and Singapore. For residents of Australia, Canada, Hong Kong or Singapore, for so long as Participant resides in his or her respective country and is subject to the laws of such country, Sections 9(j)(iv), 9(j)(v), 9(j)(vi), 9(j)(vii) and 9(j)(xiii) shall be deleted and the remaining subsections in Section 9(j) shall be renumbered accordingly.

In Section 5 a new subsection (f) shall be added as follows

(f)    The Participant covenants with the Company and the Group that the Participant will not, save with the prior written consent of the Committee (in its absolute discretion):

		
	A.
	during the Restricted Period, directly or indirectly, be employed, engaged or retained by or otherwise concerned or interested in any Competing Business. For this purpose, the Participant is directly or indirectly employed, engaged or retained by or concerned or interested in a Competing Business if: 

(i)    the Participant carries it on as principal or agent; or
		
	(ii)
	the Participant is a partner, director, employee, secondee, consultant or agent in, of or to any person who carries on the Competing Business;

		
	(iii)
	the Participant has any direct or indirect financial interest (as shareholder, creditor or otherwise) in any person who carries on the Competing Business; and/or

		
	(iv)
	the Participant is a partner, director, employee, secondee, consultant or agent in, of or to any person who has a direct or indirect financial interest (as shareholder, creditor or otherwise) in any person who carries on the Competing Business,

disregarding any financial interest the Participant may have in securities which are listed or dealt in on a recognised investment exchange if the Participant is interested in securities which amount to less than 3% of the issued securities of that class and which, in all circumstances, carry less than 3% of the voting rights (if any) attaching to the issued securities of that class;

		
	B.
	during the Restricted Period and whether directly or indirectly, either alone or with or on behalf of any person, firm, company or entity and whether on his or her own account or as principal, partner, shareholder, director, employee, consultant or in any other capacity whatsoever, have any business dealings with any Client or Prospective Client in relation to or for the benefit of a Competing Business;    

		
	C.
	during the Restricted Period and whether directly or indirectly, either alone or with or on behalf of any person, firm, company or entity and whether on his or her own account or as principal, partner, shareholder, director, employee, consultant or in any other capacity whatsoever, canvass or solicit business or custom from or seek to entice away any Client or Prospective Client from the Company or any Group Company in relation to or for the benefit of a Competing Business; 

		
	D.
	during the Restricted Period, directly or indirectly, solicit or endeavour to solicit the employment or engagement of any Key Employee (whether or not such person would thereby breach their contract of employment or engagement);

		
	E.
	at any time after the Termination Date represent himself or herself as being in any way connected with (other than as a former employee) or interested in the business of the Company or any Group Company or use any registered names, domain names or trading names the same as or that could reasonably be expected to be confused with any such names used by the Company or any Group Company.

		
	F. 
	before or after the Termination Date and except in the proper performance of his or her duties of employment for the Company or Group Company directly or indirectly use for his or her own purposes or those of a third party or disclose to any third party any Confidential Information. The Participant will use his or her best endeavours to prevent any unauthorised use or disclosure of Confidential Information. The obligations contained in this subsection F will not apply to any disclosures required by law or to any information or documents which after the Termination Date are in the public domain other than by way of unauthorised disclosure.

The Participant gives the covenants above to the Company as trustee for itself (and any company forming part of the Group). 

Each restriction contained in this Section 5(f) is an entirely separate and independent restriction, despite the fact that they may be contained in the same phrase, and if any part is found to be unenforceable the remainder will remain valid and enforceable. 

While the restrictions in this Section 5(f) are considered by the parties to be fair and reasonable in the circumstances, it is agreed that if any such restriction should be held to be void or ineffective for any reason but would be treated as valid and effective if some part of parts of the restriction were deleted, the restriction in question will apply with such deletion as may be necessary to make it valid and effective. 

The period of any restraint on the Participant’s activities after the Termination Date imposed pursuant to sub-section A to D of Section 5(f) shall be reduced pro rata by any period of garden leave served by the Participant pursuant to his or her service agreement with the Company or any Group Company.

The determination as to whether the Participant has engaged in a Competitive Action shall be made by the Committee in its sole and absolute discretion.  The Committee has sole and absolute discretion to determine whether, notwithstanding its determination that Participant has engaged in a Competitive Action, recapture or forfeiture as provided herein shall not occur.  The Committee’s exercise or nonexercise of its discretion with respect to any particular event or occurrence by or with respect to the Participant or any other recipient of restricted stock units shall not in any way reduce or eliminate the authority of the Committee to (i) determine that any event or occurrence by or with respect to the Participant constitutes engaging in a Competitive Action or (ii) determine the related Competitive Action date.

In this Agreement, the following definitions shall apply:

	
		
	“Client”

	means any person, firm, company or other business entity whom or which during the Relevant Period: 
(a) to whom the Company or any Group Company provided insurance or reinsurance; or 
(b) was an insurance intermediary which introduced such insurance or reinsurance business to the Company or any Group Company, 
and in each case with whom or which during the Relevant Period: 
i)    the Participant (or any person reporting to the Participant) had Material Dealings in relation to Relevant Business; or
ii)    about whom or which the Participant has had Confidential Information during the course of his or her employment.

	“Competitive Action”
	means any of the activities, individually or in the aggregate, described in sub-sections A through F of Section 5(f).

	“Competing Business”
	means any business which at any time is in or which intends to be in competition with any Relevant Business.

	“Confidential Information”
	means any and all information which is of a confidential nature or which the Company reasonably regards as being confidential or a trade secret concerning the business, business performance or prospective business, financial information or arrangements, plans or internal affairs of the Company, any Group Company or any of their respective Clients or Prospective Clients including without prejudice to the generality of the foregoing all information, records and materials relating to:
(1)    underwriting premiums or quotes, income and receipts, claims records and levels, renewals, policy wording and terms, reinsurance quotas, profit commission; 
(2)    syndicate or other business projections and forecasts; 
(3)    Client lists, brokers lists and price sensitive information; 
(4)    technical information, reports, interpretations, forecasts, corporate and business plans and accounts, business methods, financial details, projections and targets; 
(5)    remuneration and personnel details; 
(6)    planned products, planned services, marketing surveys, research reports, market share and pricing statistics, budgets, fee levels; 
(7)    computer passwords, the contents of any databases, tables, know how documents or materials; 
(8)    commissions, commission charges, pricing policies and all information about research and development; and
(9)    the Company’s or any Group Company’s suppliers’, Clients’ or Prospective Clients’ names, addresses (including email addresses), telephone, facsimile or other contact numbers and contact names, the nature of their business operations, their requirements for services supplied by the Company or any Group Company and all confidential aspects of their relationship with the Company or any Group Company.

	“directly or indirectly”
	means (without prejudice to the generality of the expression) either alone or jointly with or on behalf of any other person and whether on his or her own account or in partnership with another or others or as the holder of any interest in or as officer, employee or agent of or consultant to any other person.

	“Group”
	means the Company, its subsidiaries or holding companies from time to time and any subsidiary of any holding company from time to time; and “Group Company” means any company within the Group.

	“Key Employee”
	means any director or officer of the Company or any Group Company and/or any employee (other than administrative or clerical personnel) of the Company or any Group Company, in each case who, at any time during the Relevant Period: 
i)    was employed by the Company or any Group Company; and
ii)    with whom the Participant has had Material  Dealings or exercised control or had management responsibility for; and/or 
iii)    has had access to or has obtained Confidential Information during the Relevant Period.

	“Material Dealings”
	means receiving orders, instructions or enquiries from, contracting or making preparations to contract with, making sales or presenting to or with, tendering for business from, having responsibility with or for, having personal knowledge of or otherwise having significant other contact.

	“Prospective Client”

	means any person, firm, company or other business entity who was at any time during the Relevant Period: 
(a) in negotiations with the Company or any Group Company for the provision of insurance or reinsurance; or 
(b) an insurance intermediary who may introduce such insurance or reinsurance business to the Company or any Group Company, 
and in each case with whom or which during the Relevant Period: 
i)    the Participant (or any person reporting to the Participant) had Material Dealings in relation to Relevant Business; or
ii)    about whom or which the Participant has had Confidential Information during the course of Participant’s employment.
Provided that this definition shall not apply to any such person, firm, company or other business entity which has withdrawn from or discontinued such negotiations or discussions, having stated its intention to do so (other than through any unlawful activity by the Participant).

	“Relevant Business”
	means any class or classes of insurance or reinsurance business which was underwritten in the twelve months immediately prior to the Termination Date by the Company or any Group Company and with which the Participant was directly or indirectly materially concerned or involved or had personal knowledge in the course of Participant’s duties during the Relevant Period.

	“Relevant Period”
	means (1) during employment, the twelve month period immediately prior to the action or activity that may be in breach of clauses A to D of Section 5(f) and (2) after termination of employment, the twelve month period immediately prior to the Termination Date.

	“Termination Date”
	means the date on which the Participant’s employment or engagement with the Company terminates for any reason.

1Exhibit 10.1

 

AMENDED AND RESTATED INVESTMENT ADVISORY
AGREEMENT

BETWEEN

ALCENTRA CAPITAL CORPORATION

AND

ALCENTRA NY, LLC

 

This Amended and Restated Investment Advisory
Agreement (this “Agreement”) made this 4th day of May, 2018, by and between ALCENTRA CAPITAL CORPORATION,
a Maryland corporation (the “Company”), and ALCENTRA NY, LLC, a Delaware limited liability company (the
“Adviser”).

 

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

 

WHEREAS, the Adviser is registered under
the Investment Advisers Act of 1940, as amended (the “Advisers Act”); and

 

WHEREAS, the Company desires to retain the
Adviser to furnish investment advisory and certain administrative services to the Company on the terms and conditions hereinafter
set forth, and the Adviser wishes to be retained to provide such services;

 

NOW, THEREFORE, in consideration of the
premises and for other good and valuable consideration, the parties hereby agree as follows:

 

		1.	Duties of the Adviser.

 

(a) The Company hereby employs the Adviser
to act as the investment adviser to the Company and to manage the investment and reinvestment of the assets of the Company, subject
to the supervision of the Board of Directors of the Company, (the “Board”), and provide certain administrative
services to the Company as set forth herein for the period and upon the terms herein set forth, (i) in accordance with the investment
objective, policies and restrictions that are set forth in the reports and/or registration statements that the Company files with
the Securities and Exchange Commission (the “SEC”) from time to time; (ii) in accordance with all other
applicable federal and state laws, rules and regulations, and the Company’s charter and by-laws; and (iii) in accordance
with the Investment Company Act. Without limiting the generality of the foregoing, the Adviser shall, during the term and subject
to the provisions of this Agreement (A) determine the composition of the portfolio of the Company, the nature and timing of the
changes therein and the manner of implementing such changes; (B) identify, evaluate and negotiate the structure of the investments
made by the Company; (C) execute, close, monitor and service the Company’s investments; (D) determine the securities and
other assets that the Company shall purchase, retain, or sell; (E) perform due diligence on prospective portfolio companies; (F)
provide the Company with such other investment advisory, research and related services as the Company may, from time to time, reasonably
require for the investment of its funds; (G) provide on the Company’s behalf significant managerial assistance to those portfolio
companies that have requested such assistance; and (H) provide the Company with office facilities, equipment, clerical, bookkeeping
and record keeping services at such office facilities and such other services as the Adviser, subject to review by the Board, shall
from time to time determine to be necessary or useful to the Company’s operations. The Adviser shall have the power and authority
on behalf of the Company to effectuate its investment decisions for the Company, including the execution and delivery of all documents
relating to the Company’s investments and the placing of orders for other purchase or sale transactions on behalf of the
Company. In the event that the Company determines to obtain debt financing, the Adviser shall arrange for such financing on the
Company’s behalf, subject to the oversight and approval of the Board.

 

      

     

    

 

 

 

(b) The Adviser hereby accepts such employment
and agrees during the term hereof to render the services described herein for the compensation provided herein.

 

(c) The Adviser is hereby authorized to
enter into one or more sub-advisory agreements with other investment advisers (each, a “Sub-Adviser”)
pursuant to which the Adviser may obtain the services of the Sub-Adviser(s) to assist the Adviser in fulfilling its responsibilities
hereunder. Specifically, the Adviser may retain a Sub-Adviser to recommend specific securities or other investments based upon
the Company’s investment objective and policies, and work, along with the Adviser, in structuring, negotiating, arranging
or effecting the acquisition or disposition of such investments and monitoring investments on behalf of the Company, subject to
the oversight of the Adviser and the Company. The Adviser and not the Company shall be responsible for any compensation payable
to any Sub-Adviser. Any sub-advisory agreement entered into by the Adviser shall be in accordance with the requirements of the
Investment Company Act and other applicable federal and state law.

 

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

 

(e) Subject to review by and the overall
control of the Board, the Adviser shall keep and preserve for the period required by the Investment Company Act any books and records
relevant to the provision of its investment advisory services to the Company and shall specifically maintain all books and records
with respect to the Company’s portfolio transactions and shall render to the Board such periodic and special reports as the
Board may reasonably request. The Adviser agrees that all records that it maintains for the Company are the property of the Company
and shall surrender promptly to the Company any such records upon the Company’s request, provided that the Adviser may retain
a copy of such records.

 

		2.	Company’s Responsibilities and Expenses Payable
by the Company.

 

All personnel of the Adviser, except for
the Company’s Chief Compliance Officer and principal financial officer, when and to the extent engaged in providing investment
advisory and management services hereunder, and the compensation and routine overhead expenses of such personnel allocable to such
services, shall be provided and paid for by the Adviser and not by the Company. The Company’s Chief Compliance Officer and
principal financial officer and their respective staffs shall be employed by the Adviser; however the Company will reimburse the
Adviser for the compensation to such employees. The Company shall bear all other out-of-pocket costs and expenses of its operations
and transactions, including (without limitation) fees and expenses relating to: future offering expenses; the cost of calculating
the Company’s net asset value; the cost of effecting sales and repurchases of shares of the Company’s common stock
and other securities; management and incentive fees payable pursuant to this Agreement; fees payable to third parties relating
to, or associated with, making investments and valuing investments (including third-party valuation firms); interest payments and
other costs related to borrowings; transfer agent and custodial fees; fees and expenses associated with marketing efforts (including
attendance at investment conferences and similar events); federal and state registration fees; any exchange listing fees; federal,
state and local taxes; independent directors’ fees and expenses; brokerage commissions; costs of proxy statements, stockholders’
reports and notices; costs of preparing government filings, including periodic and current reports with the SEC; fidelity bond,
liability insurance and other insurance premiums; and printing, mailing, independent accountants and outside legal costs and all
other direct expenses incurred by either the Adviser or the Company in connection with administering the Company’s business.

 

    2 

     

    

 

 

 

		3.	Compensation of the Adviser.

 

The Company agrees to pay, and the Adviser
agrees to accept, as compensation for the services provided by the Adviser hereunder, a base management fee (“Base
Management Fee”) and an incentive fee (“Incentive Fee”) as hereinafter set forth. The Adviser
may agree to temporarily or permanently waive, in whole or in part, the Base Management Fee and/or the Incentive Fee. See Appendix
A for examples of how these fees are calculated.

 

(a) The Base Management Fee shall be calculated
at an annual rate of 1.50% of the Company’s gross assets, including assets purchased with borrowed funds or other forms of
leverage, but excluding any cash and cash equivalents so long as the Company’s gross assets are less than or equal to $625,000,000.
If the Company’s gross assets are greater than or equal to $625,000,001 but less than or equal to $750,000,000, the Base
Management Fee shall be calculated at an annual rate of 1.40% of the Company’s gross assets, including assets purchased with
borrowed funds or other forms of leverage, but excluding any cash and cash equivalents. If the Company’s gross assets are
greater than or equal to $750,000,001, the Base Management Fee shall be calculated at an annual rate of 1.25% of the Company’s
gross assets, including assets purchased with borrowed funds or other forms of leverage, but excluding any cash and cash equivalents.
For purposes of this Agreement, the term “cash and cash equivalents” will have the meaning ascribed to
it from time to time in the notes to the financial statements that the Company files with the SEC prepared in accordance with generally
accepted accounting principles. The Base Management Fee shall be payable quarterly in arrears, and shall be calculated based on
the average value of the Company’s gross assets, excluding cash and cash equivalents, at the end of the two most recently
completed calendar quarters. The Base Management Fee for any partial month or quarter shall be appropriately prorated. The provisions
of this Section 3(a), including the 1.50%, 1.40% and 1.25% annual rates used in connection with the calculation of the Base Management
Fee, shall be effective as of May 1, 2018 and apply to the calculation of the Base Management Fee commencing on such date and thereafter
in the manner and at the points in time specified above. In calculating the Base Management Fee for the quarter ending June 30,
2018, the Base Management Fee for such period shall be appropriately prorated to reflect the applicable annual rate of the Base
Management Fee in effect prior to May 1, 2018, and the applicable annual rate of the Base Management Fee in effect from May 1,
2018 through June 30, 2018. Appendix B sets forth the annual rates of the Base Management Fee that were effective prior
to May 1, 2018, and became effective as of May 1, 2018.

 

    3 

     

    

 

 

 

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

 

		(i)	The first part, the ordinary income component, shall be calculated and payable quarterly in arrears based on the Company’s
“Pre-Incentive Fee Net Investment Income’’ for the immediately preceding quarter. For this purpose,
‘‘Pre-Incentive Fee Net Investment Income’’ means interest income, dividend income and any
other income (including any other fees, such as commitment, origination, structuring, diligence, managerial assistance and consulting
fees or other fees that the Company receives from portfolio companies) accrued during the quarter, minus the Company’s operating
expenses for the quarter (including the Base Management Fee, administrative expenses payable to the Adviser pursuant to this Agreement,
and any interest expense and any distributions paid on any issued and outstanding preferred stock, but excluding the Incentive
Fee and any offering expenses and other expenses not charged to operations but excluding certain reversals to the extent such reversals
have the effect of reducing previously accrued incentive fees based on the deferral of non-cash interest). Pre-Incentive Fee Net
Investment Income excludes, in the case of investments with a deferred interest feature (such as original issue discount, debt
instruments with payment-in-kind interest and zero coupon securities), accrued income that the Company has not yet received in
cash. Pre-Incentive Fee Net Investment Income does not include any realized capital gains, realized capital losses or unrealized
capital appreciation or depreciation. Pre-Incentive Fee Net Investment Income, expressed as a rate of return on the value of the
Company’s net assets at the end of the immediately preceding quarter, shall be compared to a ‘‘hurdle rate’’
of 2.0% per quarter (8.0% annualized), subject to a ‘‘catch-up’’ provision measured as of
the end of each quarter as set forth in more detail below. The Company will pay the Adviser the Incentive Fee with respect to the
Company’s Pre-Incentive Fee Net Investment Income for each quarter is as follows:

 

		·	No incentive fee is payable to the Adviser in any quarter in which the Company’s Pre-Incentive Fee Net Investment Income
does not exceed the hurdle rate of 2.0% (the “hurdle’’).

 

		·	50.0% of the Company’s Pre-Incentive Fee Net Investment Income with respect to that portion of such Pre-Incentive Fee
Net Investment Income, if any, that exceeds the hurdle rate but is less than or equal to 2.5% in any quarter (10.0% annualized)
is payable to the Adviser. This portion of the Pre-Incentive Fee Net Investment Income (which exceeds the hurdle rate but is less
than or equal to 2.5%) is referred to as the “catch-up.”

 

    4 

     

    

 

 

 

 

		·	20.0% of the amount of the Company’s Pre-Incentive Fee Net Investment Income, if any, that exceeds 2.5% in any quarter
(10.0% annualized) is payable to the Adviser once the hurdle is reached and the catch-up is achieved (20.0% of all Pre-Incentive
Fee Net Investment Income thereafter is allocated to the Adviser).

 

		·	Notwithstanding anything herein to the contrary, the ordinary income
component of the Incentive Fee shall be subject to a total return requirement, and no Incentive Fee in respect of the Company’s
Pre-Incentive Fee Net Investment Income will be payable except to the extent 20.0% of the cumulative net increase in net assets
resulting from operations over the then current and 11 preceding quarters exceeds the cumulative Incentive Fees accrued and/or
paid for the 11 preceding quarters. In other words, any ordinary income incentive fee that is payable in a calendar quarter will
be limited to the lesser of (a) 20.0% of the amount by which the Company’s Pre-Incentive Fee Net Investment Income for such
calendar quarter exceeds the 2.0% hurdle, subject to the catch-up provision, and (b) (x) 20.0% of the cumulative net increase in
net assets resulting from operations for the then current and 11 preceding calendar quarters minus (y) the cumulative incentive
fees accrued and/or paid for the 11 preceding calendar quarters. For the foregoing purpose, the “cumulative net increase
in net assets resulting from operations” is the amount, if positive, of the sum of Pre-Incentive Fee Net Investment
Income, realized gains and losses and unrealized appreciation and depreciation of the Company for the then current and 11 preceding
calendar quarters. In addition, the portion of such incentive fee that is attributable to deferred interest (such as payment-in-kind
interest or original issue discount) will be paid to the Adviser, together with interest thereon from the date of deferral to the
date of payment, only if and to the extent the Company actually receives such interest in cash, and any accrual thereof will be
reversed if and to the extent such interest is reversed in connection with any write-off or similar treatment of the investment
giving rise to any deferred interest accrual. Any reversal of such accounts would reduce net income for the quarter by the net
amount of the reversal (after taking into account the reversal of incentive fees payable) and would result in a reduction and possible
elimination of the incentive fees for such quarter. There is no accumulation of amounts on the hurdle rate from quarter to quarter,
and accordingly there is no clawback of amounts previously paid if subsequent quarters are below the quarterly hurdle, and there
is no delay of payment if prior quarters are below the quarterly hurdle. The Adviser has agreed to permanently waive any interest
accrued on the portion of the incentive fee attributable to deferred interest (such as payment-in-kind interest or original issue
discount).

 

    5 

     

    

  

		(ii)	The second part of the incentive fee, the capital gains component, shall be determined and payable in arrears as of the end
of each fiscal year (or upon termination of the Agreement, as of the termination date), commencing with the fiscal year ended December
31, 2014 and shall equal 20.0% of the Company’s aggregate realized capital gains, if any, on a cumulative basis from inception
through the end of each fiscal year, computed net of all aggregate realized capital losses and unrealized aggregate capital depreciation
on a cumulative basis through the end of such year, less the aggregate amount of any previously paid capital gains incentive fees,
in each case calculated from the date of pricing of the initial public offering. If such amount is negative, then no capital gains
incentive fee will be payable for such year. Additionally, if the Agreement is terminated as of a date that is not a calendar year
end, the termination date will be treated as though it were a calendar year end for purposes of calculating and paying the capital
gains incentive fee.

 

		4.	Covenants of the Adviser.

 

The Adviser covenants that it will maintain
its registration as an investment adviser under the Advisers Act. The Adviser agrees that its activities will at all times be in
compliance in all material respects with all applicable federal and state laws governing its operations and investments.

 

		5.	Brokerage Commissions.

 

The Adviser is hereby authorized, to the
fullest extent now or hereafter permitted by law, to cause the Company to pay a member of a national securities exchange, broker
or dealer an amount of commission for effecting a securities transaction in excess of the amount of commission another member of
such exchange, broker or dealer would have charged for effecting that transaction, if the Adviser determines in good faith, taking
into account such factors as price (including the applicable brokerage commission or dealer spread), size of order, difficulty
of execution, and operational facilities of the firm and the firm’s risk and skill in positioning blocks of securities, that
such amount of commission is reasonable in relation to the value of the brokerage and/or research services provided by such member,
broker or dealer, viewed in terms of either that particular transaction or its overall responsibilities with respect to the Company’s
portfolio, and constitutes the best net results for the Company.

 

		6.	Other Activities of the Adviser.

 

The services of the Adviser to the Company
are not exclusive, and the Adviser may engage in any other business or render similar or different services to others including,
without limitation, the direct or indirect sponsorship or management of other investment based accounts or commingled pools of
capital, however structured, having investment objectives similar to those of the Company, so long as its services to the Company
hereunder are not materially impaired thereby, and nothing in this Agreement shall limit or restrict the right of any manager,
partner, member (including its members and the owners of its members), officer or employee of the Adviser to engage in any other
business or to devote his or her time and attention in part to any other business, whether of a similar or dissimilar nature, or
to receive any fees or compensation in connection therewith (including fees for serving as a director of, or providing consulting
services to, one or more of the Company’s portfolio companies, subject to applicable law). So long as this Agreement or any
extension, renewal or amendment remains in effect, the Adviser shall be the only investment adviser for the Company, subject to
the Adviser’s right to enter into sub-advisory agreements. The Adviser assumes no responsibility under this Agreement other
than to render the services called for hereunder. It is understood that directors, officers, employees and stockholders of the
Company are or may become interested in the Adviser and its affiliates, as directors, officers, employees, partners, stockholders,
members, managers or otherwise, and that the Adviser and directors, officers, employees, partners, stockholders, members and managers
of the Adviser and its affiliates are or may become similarly interested in the Company as stockholders or otherwise.

 

    6 

     

    

 

 

 

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

 

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

 

		8.	Limitation of Liability of the Adviser; Indemnification.

 

The Adviser (and its officers, managers,
partners, agents, employees, controlling persons and members, and any other person or entity affiliated with the Adviser) shall
not be liable to the Company for any action taken or omitted to be taken by the Adviser in connection with the performance of any
of its duties or obligations under this Agreement or otherwise as an investment adviser of the Company (except to the extent specified
in Section 36(b) of the Investment Company Act concerning loss resulting from a breach of fiduciary duty (as the same is finally
determined by judicial proceedings) with respect to the receipt of compensation for services, and the Company shall indemnify,
defend and protect the Adviser (and its officers, managers, partners, agents, employees, controlling persons and members, and any
other person or entity affiliated with the Adviser, each of whom shall be deemed a third party beneficiary hereof) (collectively,
the “Indemnified Parties”) and hold them harmless from and against all damages, liabilities, costs and
expenses (including reasonable attorneys’ fees and amounts reasonably paid in settlement) incurred by the Indemnified Parties
in or by reason of any pending, threatened or completed action, suit, investigation or other proceeding (including an action or
suit by or in the right of the Company or its security holders) arising out of or otherwise based upon the performance of any of
the Adviser’s duties or obligations under this Agreement or otherwise as an investment adviser of the Company. Notwithstanding
the preceding sentence of this Section 8 to the contrary, nothing contained herein shall protect or be deemed to protect the Indemnified
Parties against or entitle or be deemed to entitle the Indemnified Parties to indemnification in respect of, any liability to the
Company or its security holders to which the Indemnified Parties would otherwise be subject by reason of willful misfeasance, bad
faith or gross negligence in the performance of the Adviser’s duties or by reason of the reckless disregard of the Adviser’s
duties and obligations under this Agreement.

 

    7 

     

    

 

 

 

		9.	Effectiveness, Duration and Termination of Agreement.

 

This Agreement shall become effective as
of the date above written. This Agreement shall remain in effect for two years from the date hereof, and thereafter shall
continue automatically for successive annual periods, provided that such continuance is specifically approved at least annually
by (a) the vote of the Board, or by the vote of a majority of the outstanding voting securities of the Company and (b) the vote
of a majority of the Company’s directors who are not parties to this Agreement or “interested persons” (as such
term is defined in Section 2(a)(19) of the Investment Company Act) of any such party, in accordance with the requirements of the
Investment Company Act and each of whom is an “independent director” under applicable NASDAQ Global Select Market listing
standards. This Agreement may be terminated at any time, without the payment of any penalty, upon 60 days’ written notice,
by the vote of persons holding a majority of the outstanding voting securities of the Company, or by the vote of the Board or by
the Adviser. This Agreement shall automatically terminate in the event of its “assignment” (as such term is defined
for purposes of Section 15(a)(4) of the Investment Company Act). The provisions of Paragraph 8 of this Agreement shall remain in
full force and effect, and the Adviser shall remain entitled to the benefits thereof as well as any amounts under Section 3 hereof
through the date of termination, notwithstanding any termination of this Agreement.

 

		10.	Notices.

 

Any notice under this Agreement shall be
given in writing, addressed and delivered or mailed, postage prepaid, to the other party at its principal office.

 

		11.	Amendments.

 

This Agreement may be amended by mutual
consent.

 

		12.	Entire Agreement; Governing Law.

 

This Agreement contains the entire agreement
of the parties and supersedes all prior agreements, understandings and arrangements with respect to the subject matter hereof.
Notwithstanding the place where this Agreement may be executed by any of the parties hereto, this Agreement shall be construed
in accordance with the laws of the State of New York. For so long as the Company is regulated as a BDC under the Investment Company
Act, this Agreement shall also be construed in accordance with the applicable provisions of the Investment Company Act. In such
case, to the extent the applicable laws of the State of New York, or any of the provisions herein, conflict with the provisions
of the Investment Company Act, the latter shall control. To the fullest extent permitted by law, in the event of any dispute arising
out of the terms and conditions of this Agreement, the parties hereto consent and submit to the jurisdiction of the courts of the
State of New York in the county of New York and of the U.S. District Court for the Southern District of New York.

 

    8 

     

    

 

 

 

 

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

 

14. Severability. If any term or other provision
of this Agreement is invalid, illegal or incapable of being enforced by any law or public policy, all other terms and provisions
of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions
contemplated hereby is not affected in any manner materially adverse to any party.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK]

 

 

    9 

     

    

 

 

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

 

	 	 	 	 	 
	 	ALCENTRA CAPITAL CORPORATION
	 	 	 	 
	 	 	 	 
	 	By: 	 /s/ David Scopelliti	 
	 	 	Name: 	 David Scopelliti  	 
	 	 	Title: 	 President and Chief Executive Officer	 
	 
	 	 	 	 	 
	 	 	 
	 	 	 
	 	ALCENTRA NY, LLC
	 	 	 	 
	 	 	 	 
	 	By: 	 /s/ Jack Yang	 
	 	 	Name: 	 Jack Yang	 
	 	 	Title: 	 President 	 

 

 

 

    10 

     

    

 

 

Appendix A

 

Examples of Quarterly Incentive Fee
Calculation 

 

Example 1: Income
Related Portion of Incentive Fee:

 

Alternative 1 

 

Assumptions 

 

Investment income (including interest, dividends, fees,
etc.) = 1.25%

Hurdle rate(1) = 2.0%

Management fee(2) = 0.375%

Other expenses (legal, accounting, custodian, transfer agent, etc.)(3) = 0.20%

Pre-incentive fee net investment income

(investment income – (management fee + other expenses) = 0.675%

 

Pre-incentive fee net investment income
does not exceed hurdle rate, therefore there is no income-related incentive fee.

 

Alternative 2 

 

Assumptions 

 

Investment income (including interest, dividends, fees,
etc.) = 2.9%

Hurdle rate(1) = 2.0%

Management fee(2) = 0.375%

Other expenses (legal, accounting, custodian, transfer agent, etc.)(3) = 0.20%

Pre-incentive fee net investment income

(investment income – (management fee + other expenses) = 2.325%

 

Incentive fee = 50% × Pre-incentive fee net investment
income (subject to “catch-up”)(4)

= 50% × (2.325% – 2.0%)

= 0.1625%

 

Pre-incentive fee net investment income
exceeds the hurdle rate, but does not fully satisfy the “catch-up” provision, therefore the income related portion
of the incentive fee is 0.1625%.

 

Alternative 3 

 

Assumptions 

 

Investment income (including interest, dividends, fees,
etc.) = 3.5%

Hurdle rate(1) = 2.0%

Management fee(2) = 0.375%

Other expenses (legal, accounting, custodian, transfer agent, etc.)(3) = 0.20%

Pre-incentive fee net investment income

(investment income – (management fee + other expenses) = 2.925%

 

Incentive fee = 50% × Pre-incentive fee net
investment income

(subject to “catch-up”)(4)

 

    11 

     

    

 

 

Incentive fee = 50% × “catch-up” + (20%
× (Pre-Incentive Fee Net Investment

Income – 2.5%))

 

“Catch-up” = 2.5% – 2.0%

= 0. 5%

 

Incentive fee = (50% × 0.5%) + (20%
× (2.925% – 2.5%))

= 0.25% + (20% × 0.425%)

= 0.25% + 0.085%

= 0.335%

 

Pre-incentive fee net investment income
exceeds the hurdle rate, and fully satisfies the “catch-up” provision, therefore the income related portion of the
incentive fee is 0.335%.

		(1)	Represents 8.0% annualized hurdle rate.

		(2)	Represents 1.50% annualized base management fee. For
purposes of these examples, we have assumed the maximum amount of Base Management Fee, or 1.50% of the Company’s gross assets.

		(3)	Excludes organizational and offering expenses.

		(4)	The “catch-up” provision is intended to provide our Adviser with an incentive fee of 20% on 50% of pre-incentive
fee net investment income as if a hurdle rate did not apply when our net investment income exceeds 2.5% in any fiscal quarter.

 

Example 2: Capital
Gains Portion of Incentive Fee(*):

 

Alternative 1: 

 

Assumptions 

 

Year 1: $2.0 million investment made in Company
A (“Investment A”), and $3.0 million investment made in Company B (“Investment B”)

 

Year 2: Investment A sold for $5.0 million and
fair market value (“FMV”) of Investment B determined to be $3.5 million

 

Year 3: FMV of Investment B determined to be $2.0 million

 

Year 4: Investment B sold for $3.25 million

 

The capital gains portion of the incentive fee would be:

 

Year 1: None

 

Year 2: Capital gains incentive fee of $0.6 million—($3.0 million
realized capital gains on sale of Investment A multiplied by 20%)

 

Year 3: None—$0.4 million (20% multiplied
by ($3.0 million cumulative capital gains less $1.0 million cumulative capital depreciation)) less $0.6 million
(previous capital gains fee paid in Year 2)

 

Year 4: Capital gains incentive fee of $50,000—$0.65 million
($3.25 million cumulative realized capital gains multiplied by 20%) less $0.6 million (capital gains incentive fee taken
in Year 2)

 

    12 

     

    

 

 

 

 

Alternative 2 

 

Assumptions 

 

Year 1: $2.0 million investment made in Company
A (“Investment A”), $5.25 million investment made in Company B (“Investment B”) and $4.5 million
investment made in Company C (“Investment C”)

 

Year 2: Investment A sold for $4.5 million, FMV
of Investment B determined to be $4.75 million and FMV of Investment C determined to be $4.5 million

 

Year 3: FMV of Investment B determined to be $5.0 million
and Investment C sold for $5.5 million

 

Year 4: FMV of Investment B determined to be $6.0 million

 

Year 5: Investment B sold for $4.0 million

 

The capital gains incentive fee, if any, would be:

 

Year 1: None

 

Year 2: $0.4 million capital gains incentive fee—20%
multiplied by $2.0 million ($2.5 million realized capital gains on Investment A less $0.5 million unrealized capital
depreciation on Investment B)

 

Year 3: $0.25 million capital gains incentive fee(1)—$0.65 million
(20% multiplied by $3.25 million ($3.5 million cumulative realized capital gains less $0.25 million unrealized capital
depreciation)) less $0.4 million capital gains incentive fee received in Year 2

 

Year 4: $0.05 million capital gains incentive fee—$0.7 million
($3.50 million cumulative realized capital gains multiplied by 20%) less $0.65 million cumulative capital gains incentive
fee paid in Year 2 and Year 3

 

Year 5: None—$0.45 million (20% multiplied
by $2.25 million (cumulative realized capital gains of $3.5 million less realized capital losses of $1.25 million))
less $0.7 million cumulative capital gains incentive fee paid in Year 2, Year 3 and Year 4(2)

 

		*	The hypothetical amounts of returns shown are based on a percentage of our total net assets and assume no leverage. There
is no guarantee that positive returns will be realized and actual returns may vary from those shown in this example. 

		(1)	As illustrated in Year 3 of Alternative 1 above, if a portfolio company were to be wound up on a date other than its fiscal
year end of any year, it may have paid aggregate capital gains incentive fees that are more than the amount of such fees that would
be payable if such portfolio company had been wound up on its fiscal year end of such year. 

		(2)	As noted above, it is possible that the cumulative aggregate capital gains fee received by our Adviser ($0.70 million)
is effectively greater than $0.45 million (20% of cumulative aggregate realized capital gains less net realized capital losses
or net unrealized depreciation ($2.25 million)).

 

 

 

    13 

     

    

 

 

Appendix B

 

Annual Rates for Base Management Fee
Calculation - Effective Prior to May 1, 2018

 

	Gross Asset Range	Annual Rate
	Less than or equal to $625,000,000	1.75%
	Greater than or equal to $625,000,001 but less than or equal to $750,000,000	1.65%
	Greater than or equal to $750,000,001	1.50%

 

Annual Rates for Base Management Fee
Calculation - Effective May 1, 2018

 

	Gross Asset Range	Annual Rate
	Less than or equal to $625,000,000	1.50%
	Greater than or equal to $625,000,001 but less than or equal to $750,000,000	1.40%
	Greater than or equal to $750,000,001	1.25%

 

    14

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