Document:

Exhibit

Exhibit 10.4

EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (this “Agreement”) is entered into as of the 31st day of December, 2016 (the “Effective Date”), by and between George R. Brokaw (the “Executive”), and Alico, Inc., a Florida corporation (the “Company”).
WHEREAS, the Company desires to employ the Executive to serve as the executive Vice Chairman of the Company, effective as of the Effective Date, and the Executive desires to accept such position with the Company.
NOW, THEREFORE, in consideration of the premises and of the mutual covenants contained herein, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
1.Employment.  The Company hereby employs the Executive as its executive Vice Chairman, and the Executive hereby accepts such employment, effective as of the Effective Date, upon the terms and conditions set forth herein.  Except as otherwise expressly provided herein and in the Indemnification Agreement to be executed by the Company and the Executive, this Agreement (including the exhibits, which are an integral part of it) sets forth the terms and conditions of the Executive’s employment by the Company, represents the entire agreement of the parties with respect to that subject, and supersedes all prior understandings and agreements with respect to that subject.  
2.    Position and Duties.
(a)    Duties.  The Executive shall be employed by the Company as executive Vice Chairman.  The Executive shall have the normal duties, responsibilities, and authority of an executive vice chairman, and shall perform all duties incidental to such position that may be required by law and all such other duties as may be reasonably assigned by the Chief Executive Officer of the Company and are consistent with the duties normally associated with an executive vice chairman of a public corporation.  In particular, the Executive shall be responsible for the Company’s corporate development, mergers and acquisitions, strategic planning, and other significant growth initiatives.
(b)    Reporting.  The Executive shall report to the Chief Executive Officer of the Company.
(c)    Loyal and Conscientious Performance.  The Executive shall act at all times in compliance with the lawful and reasonable written policies, rules, and decisions adopted from time to time by the Company and the Board of Directors of the Company (the “Board”) and perform all of the duties and obligations required of him by this Agreement in a loyal and conscientious manner and in accordance with his fiduciary duties under applicable law (including with respect to the receipt and consideration of corporate opportunities).
(d)    Location.  The Executive’s principal place of business shall be at an office of the Company located in New York, New York, or, at the Executive’s election, at a location 

    

selected by the Executive in the State of Florida, it being understood that the Executive will be expected to engage in reasonable travel on behalf of the Company.
3.    Term of Employment.  The term of the Executive’s employment pursuant to this Agreement shall commence on the Effective Date and end on the third anniversary of the Effective Date, subject to extension and termination pursuant to the provisions of this Agreement (the “Term”).  The Term will be automatically extended for a one-year period on the second and each ensuing anniversary of the Effective Date unless either the Company or the Executive provides written notice to the other party no later than 60 days in advance of the applicable extension date that the period of the Executive’s employment pursuant to this Agreement shall not be extended.  As used in this Agreement, the word “Term” means the initial three-year period of employment specified in this Agreement and includes any and every one-year extension of the period of employment under this Agreement.  Notwithstanding the foregoing, the Term shall automatically terminate on the date of the Executive’s termination of employment pursuant to Section 11(a) (the “Date of Termination”).
4.    Annual Base Salary.  During the Term, the Company shall pay to the Executive in installments an annual base salary, not less often than monthly, at an annual rate of not less than $250,000 (“Annual Base Salary”).  The Annual Base Salary shall be reviewed by the Board or the Compensation Committee of the Board (the “Committee”) at least annually for increase, and the Annual Base Salary as so adjusted shall be the “Annual Base Salary” for all purposes of this Agreement.  The Company shall not reduce the Annual Base Salary during the Term of this Agreement without the advance written approval of the Executive.  In addition, within five business days following the Effective Date, the Company shall pay to the Executive an amount in cash equal to $250,000.  The Executive and the Company acknowledge that, during the Term, he shall continue to receive compensation in his capacity as a member of the Board in amounts and on terms provided to members of the Board generally.
5.    Equity Award.  On the Effective Date, the Company shall award the Executive an initial equity grant of 225,000 options to purchase shares of the Company’s common stock (the “Stock Options”).  The Stock Options shall be subject to the terms and conditions of the award agreement in the form attached hereto as Exhibit A.
6.    Employee Benefits.  During the Term, the Executive shall be eligible to participate in the health, welfare, vacation, and retirement benefit plans, policies, programs, practices, and arrangements that the Company and its affiliates provide to its executives generally from time to time (each, an “Employee Benefit Plan” and, collectively, the “Employee Benefit Plans”) on terms that are no less favorable to the Executive than those provided by the Company and its affiliates to senior executives of the Company and its affiliates generally.  Notwithstanding the immediately preceding sentence, the Executive may instead elect to be reimbursed by the Company for the total premiums paid to a third party for health insurance provided by a third party for the Executive and his family, so long as the amount of such premiums to be reimbursed is generally consistent with the amount of premiums in effect for the third-party insurance provided to the Executive and his family as of the date hereof, which amount has been disclosed to the Company; provided that any increase in the amount of 

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premiums to be reimbursed that is consistent with healthcare cost inflation shall be deemed to satisfy the requirement set forth in this sentence.
7.    Perquisites.  During the Term, the Executive shall be eligible to receive perquisites on a basis no less favorable than those that the Executive receives as of the date immediately prior to the Effective Date and no less favorable than those that are provided by the Company and its affiliates from time to time to other senior executives of the Company and its affiliates generally.
8.    Expense Reimbursement.  The Executive shall be reimbursed for ordinary and reasonable travel, business, promotional, entertainment, and other expenses that are paid or incurred by him during the Term in connection with the performance of his services for and on behalf of the Company under this Agreement, subject to the Company’s expense reimbursement policies and procedures.  Following the Effective Date, the Executive shall be reimbursed for  reasonable attorneys’ fees incurred in connection with this Agreement and the compensation hereunder and related matters, in an amount to be reasonably agreed between the Company and the Executive.
9.    Withholding.  The Company may withhold from the payments due to the Executive for the payment of taxes and other lawful withholdings or required Executive contributions, in accordance with applicable law.  If circumstances arise in which such withholding or contributions are required on account of any compensation or benefits (including, without limitation, upon the payment or provision of any compensation or benefits pursuant to Sections 6 or 7), at a time when there are not cash payments being made to the Executive from which such withholding obligations can be satisfied, the Executive will deliver to the Company amounts sufficient to fund such withholding or contribution obligations.
10.    Executive’s Covenants.
(a)    Confidentiality.
(i)    The Executive shall not, at any time, use, divulge, or otherwise disclose, directly or indirectly, any confidential and proprietary information (including, without limitation, any customer or prospect list, supplier list, acquisition or merger target, business plan or strategy, data, records, financial information, or other trade secrets) concerning the business, policies, or operations of the Company or its affiliates (or any predecessors thereof) that the Executive may have learned or become aware of at any time on or prior to the date hereof or during the Term of the Executive’s employment by the Company.  The confidential and proprietary information shall not include any information that:  (A) was independently developed by the Executive before the commencement of his employment with the Company; (B) is or has been publicly disclosed by the Company or any subsidiary of the Company; and (C) is or becomes publicly available, other than as a result of a disclosure in contravention of this confidentiality restriction by the Executive or any person to whom the Executive disclosed the information.  Notwithstanding the foregoing, the Executive is permitted to disclose confidential and proprietary information of the Company and/or its affiliates 

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(1) to third parties and other officers, directors, and employees of the Company or its affiliates in the performance of his duties on behalf of the Company, (2) to legal counsel for the Executive, the Company, or an affiliate of the Company to the extent necessary to obtain legal advice, so long as the Executive advises such legal counsel of the confidential and/or proprietary nature of such information, (3) to the extent required by law or a request by a court or governmental authority (pursuant to a subpoena, settlement discussions, or otherwise) or as required to respond to a lawsuit against the Executive, and (4) to immediate family members so long as the Executive advises such family members of the confidential and/or proprietary nature of such information.
(ii)    The Executive further acknowledges and agrees that all Company Materials (as defined below) are the exclusive property of the Company and that, at the request of the Company upon the termination of his employment with the Company pursuant to this Agreement (or, in the event that he continues as a director of the Company, upon his ceasing to be a director of the Company), he shall return to the Company all Company Materials (including all copies thereof) that are in printed form and then in his control or possession and permanently delete from all accessible files, folders, and document libraries all Company Materials in digital form that are then stored on computers or other electronic devices in his control or possession.  For purposes of this Agreement, “Company Materials” means all models, samples, products, prototypes, computers, computer software, computer disks, tapes, printouts, source, HTML and other code, flowcharts, schematics, designs, graphics, drawings, photographs, charts, graphs, notebooks, customer lists, sound recordings, other tangible or intangible manifestation of content, and all other documents concerning the Company, any affiliate of the Company, or any predecessor of the Company or any affiliate of the Company, whether printed, typewritten, handwritten, electronic, or stored on computer disks, tapes, hard drives, or any other tangible medium.
(iii)    The Executive acknowledges that Company Materials may contain information that is confidential and subject to the attorney-client privilege of the Company or its affiliates or otherwise protected by attorney work product immunity.  Except as required by law, the Executive agrees not to disclose to any person (other than in-house or outside counsel for the Company and its affiliates) the content or substance of (A) any such Company Materials that the Executive knows or has notice is protected by an attorney-client privilege or attorney work product immunity of the Company or any affiliate of the Company or (B) any communication that the Executive may have or may have had at any time with in-house or outside counsel for the Company and its affiliates, whether during his employment hereunder or otherwise, regarding such Company Materials.  Notwithstanding the foregoing, the Executive is permitted to waive any attorney-client privilege or attorney work product privilege of the Company or any affiliate of the Company with respect to any particular information or communication, whether affirmatively or through the disclosure of information or communication to a person that results in waiver of the privilege, if the waiver or disclosure is (1) necessary to establish a legal defense for the Executive, (2) made in reliance on, and consistent with, the advice of legal counsel, (3) directed or authorized by the Board or legal counsel 

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for the Company in connection with a governmental investigation or otherwise, or (4) required by law or to comply in good faith with an order of a court or governmental authority, after providing the Company or its subsidiary a reasonable opportunity to obtain a protective order to prevent or protect the disclosure of the applicable information or communication.
(b)    Noncompetition and Nonsolicitation.
(i)    During the Restricted Period (as defined below), the Executive agrees that he shall not, without the prior authorization by resolution of the Board, directly or indirectly, either as principal, agent, manager, employee, partner, shareholder, director, officer, consultant, or otherwise (A) become engaged in, involved with, or employed in any business (other than as a less-than 1% equity owner of any corporation traded on any national, international, or regional stock exchange or in the over-the-counter market) that competes with the Company or any of its affiliates; or (B) induce or attempt to induce any customer, client, supplier, employee, agent, or independent contractor of the Company or any of its affiliates to reduce, terminate, restrict, or otherwise alter its business relationship with the Company or its affiliates; provided that the foregoing shall not prohibit the Executive, individually or in association with others, from (1) engaging in public advertisement and other forms of broad solicitation not intended to target Company employees to fulfill hiring needs, (2) hiring any individual who is a former employee of the Company or any subsidiary of the Company who has been separated from employment with the Company or the subsidiary of the Company for more than six months, or (3) soliciting or hiring his personal assistant(s).  The provisions of this Section 10(b)(i) shall be effective only within any state within the United States or any country outside the United States where the Company or any of its subsidiaries conducted its business during any part of the Executive’s employment with the Company.  The parties intend the above geographical areas to be completely severable and independent, and any invalidity or unenforceability of this Agreement with respect to any one area shall not render this Agreement unenforceable as applied to any one or more of the other areas.
(ii)    For purposes of this Agreement, “Restricted Period” shall mean the period of the Executive’s employment by the Company during the Term and the 12-month period following the Date of Termination.
(c)    Nondisparagement.  The Executive shall not disparage the Company or any of its affiliates or their respective directors, officers, employees as a group, agents, stockholders, successors, and assigns (both individually and in their official capacities with the Company) (the “Company Parties”) or any of the Company Parties’ goods, services, employees as a group, customers, business relationships, reputation, or financial condition.  The Board shall not make any official statements that, and the Company shall instruct its directors not to, disparage the Executive or any of his affiliates or their respective directors, officers, employees as a group, agents, stockholders, successors, and assigns (both individually and in their official 

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capacities with the Company) (the “Executive Parties”) or any of the Executive Parties’ performance, reputation, or financial condition.
(d)    Cooperation.  During the Term and thereafter, the Executive shall cooperate with the Company and its affiliates as reasonably requested by the Company, without additional consideration, in any internal investigation or administrative, regulatory, or judicial proceeding involving the Company or any of its subsidiaries that pertains to any matter that occurred, or with which the Executive was involved or had knowledge, while he was employed by the Company, including, without limitation, the Executive’s being available to the Company or its affiliates upon reasonable notice for interviews and factual investigations, appearing at the Company’s request to give testimony without requiring service of a subpoena or other legal process, volunteering to the Company all pertinent information, and turning over to the Company all relevant documents that are or may come into the Executive’s possession, all at times and on schedules that are reasonably consistent with the Executive’s other permitted activities and commitments if the Executive is then employed by the Company and otherwise taking into account the Executive’s business and personal obligations; provided that, in the event that the Executive is no longer employed by or otherwise providing services to the Company, the Executive shall not be obligated to provide services under this Section 10(d) in excess of five hours per week or ten hours per month.  The Company promptly shall reimburse the Executive for all reasonable out-of-pocket costs and expenses that he incurs in providing any assistance requested by the Company under this Section 10(d), including the reasonable fees and expenses of an attorney selected by the Executive and reasonably acceptable to the Company to represent the Executive’s interests in connection with any investigation or judicial, regulatory, arbitration, or administrative proceeding for which he is requested to provide any assistance or required to testify in a deposition or otherwise.
(e)    Scope of Restrictions.  The Executive acknowledges that the restrictions set forth in this Section 10 are reasonable and necessary to protect the Company’s business and goodwill, and that the obligations under this Section 10 shall survive any termination of his employment for the periods indicated.  The Executive acknowledges that if any of these restrictions or obligations is found by a court having jurisdiction to be unreasonable or overly broad or otherwise unenforceable, he and the Company agree that the restrictions or obligations shall be modified by the court so as to be reasonable and enforceable and, if so modified, shall be fully enforced.  Notwithstanding any provision of this Agreement to the contrary, the covenants set forth in this Section 10 are not intended to, and shall be interpreted in a manner that does not, limit or restrict the Executive from exercising any legally protected whistleblower rights (including pursuant to Rule 21F under the Securities Exchange Act of 1934, as amended).
(f)    Consideration; Survival.  The Executive acknowledges and agrees that the compensation and benefits provided in this Agreement constitute adequate and sufficient consideration for the covenants made by the Executive in this Section 10.  As further consideration for the covenants made by the Executive in this Section 10, the Company has provided and will provide the Executive certain proprietary and other confidential information about the Company, including, but not limited to, business plans and strategies, budgets and 

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budgetary projections, income and earnings projections and statements, cost analyses and assessments, and/or business assessments of legal and regulatory issues.
11.    Termination of Employment.
(a)    In General.  Notwithstanding anything to the contrary contained herein, the Executive’s employment with the Company pursuant to this Agreement may be terminated at any time prior to the end of the Term by the Executive or by the Company, and shall automatically terminate upon the death of the Executive.  Upon any such termination, the Company shall pay to the Executive (or the Executive’s legal guardian or his estate, as applicable) (i) any accrued base salary, and (ii) any rights or payments that are vested benefits or that the Executive is otherwise entitled to receive at or subsequent to the Date of Termination under any Employee Benefit Plan or any other contract or agreement with the Company or any of its subsidiaries, which shall be payable in accordance with the terms of such Employee Benefit Plan or contract or agreement, except as explicitly modified by this Agreement, including, without limitation, any accrued vacation or any of the Executive’s business expenses that are reimbursable, but have not been reimbursed as of the Date of Termination.  In addition, in the event of a termination by the Company without Cause or by the Executive for Good Reason (in each case, as defined on Exhibit A), subject to the Executive’s continued compliance with the covenants set forth herein and his execution and non-revocation of a general release of claims in favor of the Company in substantially the form set forth in Exhibit B hereto (the “Release”) within the time period set forth therein, the Executive shall be entitled to continuation of his Annual Base Salary for 18 months following the Date of Termination (the “Severance Payment”); provided, however, that the first such installment shall be paid on the 60th day following the Date of Termination and the first payment shall include any portion of the Severance Payment that would have otherwise been payable during the period between the Date of Termination and such payment date.  Notwithstanding the foregoing, in the event that the Date of Termination occurs within two years following a Change in Control (as defined in the Alico, Inc. Stock Incentive Plan of 2015 (the “Plan”)) that also constitutes a “change in control event” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), the Severance Payment shall be paid in a lump sum within 30 days following the Date of Termination, subject to the Executive’s execution and non-revocation of the Release within the time period set forth therein and the six-month delay provisions of Section 20.
(b)    Effect of Termination on Other Positions.  If, on the Date of Termination, the Executive is a member of the Board or the board of directors of any of the Company’s affiliates, or holds any other position with the Company or its affiliates, the Executive shall not be deemed to have resigned from any such positions as of the Date of Termination by virtue of his termination of employment.
(c)    No Mitigation Duty.  The amounts payable to the Executive pursuant to this Section 11 will not be reduced by the amount of any income that the Executive earns or could earn from alternative employment following the Date of Termination.  The Company waives any duty that the Executive might have under law to mitigate his damages by seeking 

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alternative employment and the Company shall have no right to offset any amounts owed to the Company with amounts payable under this Section 11.
12.    Notice.  Any notice to be given hereunder by either party to the other must be in writing and be effectuated either by personal delivery in writing or by mail, registered or certified, postage prepaid, with return receipt requested.  Mailed notices shall be addressed to the parties at the following addresses:
If to the Company:
Chairman, Compensation Committee 
c/o Alico, Inc. 
10070 Daniels Interstate Court 
Suite 100 
Fort Myers, Florida 33913
If to the Executive:
At the most recent contact information on file in the payroll records of the Company.
A validly given notice will be effective on the earlier of its receipt, if it is personally delivered in writing, or on the fifth day after it is postmarked by the United States Postal Service, if it is delivered by certified or registered, postage-prepaid, United States mail.
13.    Waiver of Breach.  The waiver by any party to a breach of any provision in this Agreement cannot operate or be construed as a waiver of any subsequent breach by a party.
14.    Severability.  The invalidity or unenforceability of any particular provision in this Agreement shall not affect the other provisions hereof, and this Agreement shall be construed in all respects as if the invalid or unenforceable provision were omitted.
15.    Amendment.  No modifications or amendments of the terms and conditions herein shall be effective unless in writing and signed by the parties or their respective duly authorized agents.
16.    Authorization.  The execution, delivery, and performance of this Agreement by the Company have been duly authorized by all requisite corporate action of the Company.  This Agreement has been properly executed on behalf of the Company by a duly authorized representative.
17.    Counterparts.  The parties may execute this Agreement in counterparts and by manual or facsimile signature.  Each executed counterpart of this Agreement will constitute an original document, and all executed counterparts, together, will constitute the same agreement.  This Agreement will become effective as of the Effective Date when it has been signed by both the Company and the Executive and will survive the termination of the Executive’s employment with the Company pursuant to this Agreement.

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18.    Governing Law and Forum Selection.  This Agreement shall be interpreted, construed, and governed according to the laws of the State of Florida, without reference to conflicts of law principles thereof.  The parties agree that any dispute, claim, or controversy based on common law, equity, or any federal, state, or local statute, ordinance, or regulation (other than workers’ compensation claims) arising out of or relating in any way to the Executive’s employment, the terms, benefits, and conditions of employment, or concerning this Agreement or its termination and any resulting termination of employment, including whether such a dispute is arbitrable, shall be settled by arbitration.  Notwithstanding the foregoing, any party to this Agreement may commence a proceeding in any court of competent jurisdiction to enter a judgment of any award rendered in the arbitration or to enforce any arbitration award or a settlement resulting from mediation or negotiation of the parties.  This agreement to arbitrate includes, but is not limited to, all claims for any form of illegal discrimination, improper or unfair treatment or dismissal, and all tort claims.  The Executive shall still have a right to file a discrimination charge with a federal or state agency, but the final resolution of any discrimination claim will be submitted to arbitration instead of a court or jury.  The arbitration proceeding shall be conducted under the employment dispute resolution arbitration rules of the American Arbitration Association in effect at the time that a demand for arbitration under the rules is made, and such proceeding shall be conducted in the English language by a sole arbitrator in Polk County, Florida, and governed by the Florida Arbitration Act and the substantive laws of the State of Florida, without regard to any applicable state’s choice of law provisions.  The decision of the arbitrator(s), including determination of the amount of any damages suffered, shall be exclusive, final, and binding on all parties, their heirs, executors, administrators, successors, and assigns, and shall not be subject to appeal, review, or re-examination by a court or the arbitrator, except for fraud, perjury, manifest clerical error, or evident partiality or misconduct by the arbitrator that (in each case) prejudices the rights of a party to the arbitration.  Each party shall bear its own expenses in the arbitration for arbitrators’ fees and attorneys’ fees, for its witnesses, and for other expenses of presenting its case.  Other arbitration costs, including administrative fees and fees for records or transcripts, shall be borne equally by the parties.
19.    Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their permitted successors, assigns, legal representatives, and heirs, but neither this Agreement nor any rights hereunder shall be assignable by the Executive.  This Agreement is not assignable by the Company without the advance written consent of the Executive, which he may withhold in his sole discretion, except that the Company may assign this Agreement without the consent of the Executive to any direct or indirect successor in interest to all or substantially all its assets or business (whether pursuant to a sale, merger, exchange, consolidation, or reorganization transaction) that, at the closing of the transaction, expressly assumes in writing this Agreement and agrees to perform all of the obligations of the Company under it.  The Company will require any successor in interest to all or substantially all of its assets or business to assume expressly and agree in writing to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no succession had taken place.
20.    Code Section 409A.  It is the intention of the Company and the Executive that this Agreement will not result in unfavorable tax consequences to the Executive under Section 409A 

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of the Code. To the extent applicable, it is intended that this Agreement comply with the provisions of Section 409A of the Code.  This Agreement shall be administered and interpreted in a manner consistent with this intent, and any provision that would cause this Agreement to fail to satisfy Section 409A of the Code will have no force and effect until amended to comply therewith (which amendment may be retroactive to the extent permitted by Section 409A of the Code).  The Company and the Executive agree to work together in good faith in an effort to comply with Section 409A of the Code, including, if necessary, amending this Agreement based on further guidance issued by the Internal Revenue Service from time to time; provided that the Company shall not be required to assume any increased economic burden.  Notwithstanding anything contained herein to the contrary, to the extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A of the Code, the Executive shall not be considered to have terminated employment with the Company for purposes of this Agreement and no payments shall be due to him under this Agreement that are payable upon his termination of employment until he would be considered to have incurred a “separation from service” from the Company within the meaning of Section 409A of the Code.  To the extent required to avoid accelerated taxation and/or tax penalties under Section 409A of the Code, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to this Agreement during the six-month period immediately following the Executive’s termination of employment shall instead be paid in a lump sum on the first day of the seventh month following his termination of employment (or upon his death, if earlier).  In addition, for purposes of this Agreement, each amount to be paid or benefit to be provided to the Executive pursuant to this Agreement shall be construed as a separate identified payment for purposes of Section 409A of the Code.  With respect to expenses eligible for reimbursement or in-kind benefits provided under the terms of this Agreement, (a) the amount of such expenses eligible for reimbursement or in-kind benefits provided in any taxable year shall not affect the expenses eligible for reimbursement or in-kind benefits provided in another taxable year, (b) any reimbursements of such expenses and the provision of any in-kind benefits shall be made no later than the end of the fiscal year following the fiscal year in which the related expenses were incurred, except, in each case, to the extent that the right to reimbursement does not provide for a “deferral of compensation” within the meaning of Section 409A of the Code; provided that, with respect to any reimbursements for any taxes to which the Executive becomes entitled under the terms of this Agreement, the payment of such reimbursements shall be made by the Company no later than the end of the fiscal year following the fiscal year in which the Executive remits the related taxes, and (c) the right to reimbursement or in-kind benefit shall not be subject to liquidation or exchange for another benefit.
21.    Limitations on Payments under Certain Circumstances. 
(a)    Notwithstanding any other provisions of this Agreement, if any payment or benefit received or to be received by the Executive (including any payment or benefit received in connection with a change in control or the termination of the Executive’s employment, whether pursuant to the terms of this Agreement or any other plan, arrangement, or agreement) (all such payments and benefits being hereinafter referred to as the “Total Payments”) would constitute an “excess parachute payment” within the meaning of Section 280G of the Code that would be subject (in whole or part), to any excise tax imposed under Section 4999 of the Code 

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(the “Excise Tax”), then, after taking into account any reduction in the Total Payments provided by reason of Section 280G of the Code in such other plan, arrangement, or agreement, the Total Payments shall be reduced to the extent necessary so that no portion of the Total Payments is subject to the Excise Tax but only if (i) the net amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state, and local income taxes on such reduced Total Payments and after taking into account the phaseout of itemized deductions and personal exemptions attributable to such reduced Total Payments) is greater than or equal to (ii) the net amount of such Total Payments without such reduction (but after subtracting the net amount of federal, state, and local income taxes on such Total Payments and the amount of Excise Tax to which the Executive would be subject in respect of such unreduced Total Payments and after taking into account the phaseout of itemized deductions and personal exemptions attributable to such unreduced Total Payments).  If a reduction is necessary pursuant to this Section 21(a), then the reduction shall occur by reducing the Severance Payment, then the accelerated vesting of performance-based equity awards (based on the reverse order of the date of grant), and then by reducing the accelerated vesting of other equity awards (based on the reverse order of the date of grant).
(b)    For purposes of determining whether and the extent to which the Total Payments shall be subject to the Excise Tax, (i) no portion of the Total Payments the receipt or enjoyment of which the Executive shall have waived at such time and in such manner as not to constitute a “payment” within the meaning of Section 280G(b) of the Code shall be taken into account, (ii) no portion of the Total Payments shall be taken into account that, based on the determination of a nationally recognized certified public accounting firm that is selected by the Company before a Change in Control, and reasonably acceptable to the Executive, for purposes of making the applicable determinations under this Section 21 (the “Accounting Firm”), does not constitute a “parachute payment” within the meaning of Section 280G(b)(2) of the Code (including by reason of Section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no portion of such Total Payments shall be taken into account that, based on the determination of the Accounting Firm, constitutes reasonable compensation for services actually rendered, within the meaning of Section 280G(b)(4)(B) of the Code, in excess of the “base amount” within the meaning of Section 280G(b)(3) of the Code allocable to such reasonable compensation, and (iii) the value of any non-cash benefit or any deferred payment or benefit included in the Total Payments shall be determined by the Accounting Firm in accordance with the principles of Sections 280G(d)(3) and (4) of the Code.  In connection with making determinations under this Section 21, the Accounting Firm shall take into account the value of any reasonable compensation for services to be rendered by the Executive before or after the Change in Control, including any noncompetition provisions that may apply to the Executive.
(c)    At the time that payments are made under this Agreement, the Company shall provide the Executive with a written statement setting forth the manner in which such payments were calculated and the basis for such calculations including, without limitation, any opinions or other advice the Company has received from the Accounting Firm or other advisors or consultants (and any such opinions or advice that are in writing shall be attached to the statement).

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

                                                                             By: /s/ R. Gregory Eisner 
Name:  R. Gregory Eisner 
Title:    Chairman, Compensation Committee

EXECUTIVE

 
/s/ George R. Brokaw
George R. Brokaw

EXHIBIT A 
FORM OF STOCK OPTION AGREEMENT
STOCK INCENTIVE PLAN OF 2015 
NONQUALIFIED OPTION AGREEMENT
THIS NONQUALIFIED OPTION AGREEMENT (this “Agreement”), dated as of December 31, 2016 (the “Grant Date”), is made by and between Alico, Inc., a Florida corporation (the “Company”), and George R. Brokaw (the “Participant”).  Capitalized terms used herein without definition have the meanings ascribed to such terms in the Alico, Inc. Stock Incentive Plan of 2015 (the “Plan”).
WHEREAS, the Company has adopted the Plan to give the Company a competitive advantage in attracting, retaining, and motivating officers, employees, directors, and/or consultants and to provide the Company and its Subsidiaries and Affiliates with a long-term incentive plan providing incentives directly linked to shareholder value; and
WHEREAS, the Committee has determined that it would be in the best interests of the Company and its shareholders to grant the Participant Nonqualified Options on the terms and subject to the conditions set forth in this Agreement and the Plan.
NOW, THEREFORE, in consideration of the premises and the covenants of the parties contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, for themselves and their successors and assigns, hereby agree as follows:
1.Grant of Option.
(a)    Grant.  The Company hereby grants to the Participant a Nonqualified Option (the “Option” and any portion thereof, the “Options”) to purchase 300,000 Shares (such Shares, the “Shares”), on the terms and subject to the conditions set forth in this Agreement and as otherwise provided in the Plan.  The Option is not intended to qualify as an incentive stock option within the meaning of Section 422 of the Code.
(b)    Incorporation by Reference, Etc.  The provisions of the Plan are hereby incorporated herein by reference.  Except as otherwise expressly set forth herein, this Agreement shall be construed in accordance with the provisions of the Plan.  Notwithstanding the provisions of the Plan or this Agreement to the contrary (including, without limitation, Section 2(c) of the Plan), all determinations under this Agreement as to the following shall be subject to de novo review and shall not be final, binding and conclusive on the Participant or his beneficiaries or their respective successors or assigns:  (i) determinations as to whether Cause (as defined below) or Good Reason (as defined below) exists and (ii) determinations made on or following a Change in Control.

    

2.Option; Option Price.
(a)    Option Price.  The option price, being the price at which the Participant shall be entitled to purchase the Shares upon the exercise of all or any of the Options, shall be $27.15 per Share (the “Option Price”).
(b)    Payment of the Option Price.  The Option may be exercised only by written notice, substantially in the form provided by the Company, delivered in person or by mail in accordance with Section 12(b) and accompanied by payment of the Option Price.  The aggregate Option Price shall be payable in cash or by any of the other methods permitted under Section 5(g)(i) through (iii) of the Plan.
3.Vesting.  Except as may otherwise be provided herein, the Option shall become nonforfeitable (any Options that shall have become nonforfeitable pursuant to this Section 3, “Vested Options”) and shall become exercisable according to the following provisions:
(a)    General.  (i) 25% of the Options shall become Vested Options on the first date during the Measurement Period (as defined below) that the Trailing Minimum Stock Price (as defined below) exceeds $60.00; (ii) 25% of the Options shall become Vested Options on the first date during the Measurement Period that the Trailing Minimum Stock Price exceeds $75.00; (iii) 25% of the Options shall become Vested Options on the first date during the Measurement Period that the Trailing Minimum Stock Price exceeds $90.00; and (iv) 25% of the Options shall become Vested Options on the first date during the Measurement Period that the Trailing Minimum Stock Price exceeds $105.00 (each of the stock price hurdles set forth in clauses (i)–(iv), a “Stock Price Hurdle”).  Any Options that have not become Vested Options as of the conclusion of the applicable Measurement Period shall be forfeited as of such conclusion for no consideration.
(b)    Certain Definitions.  For purposes of this Agreement, the following terms have the meanings set forth below:
“Cause” shall mean (i) a material failure by the Participant to carry out, or malfeasance or gross insubordination in carrying out, any of his material duties under the Employment Agreement, (ii) the final conviction of the Participant of, or a plea by the Participant of guilty or nolo contendere to, a felony or crime involving moral turpitude, (iii) an egregious act of dishonesty by the Participant (including, without limitation, theft or embezzlement) in connection with his employment by the Company, or a malicious action by the Participant toward the customers or employees of the Company or any Affiliate, (iv) a material breach by the Participant of the Company’s Code of Business Ethics or Section 10 of the Employment Agreement, or (v) the failure of the Participant to cooperate fully with governmental investigations involving the Company or any Affiliate unless the Participant is a subject of the investigation or is acting in reliance on the advice of counsel or in accordance with directions from the Board or legal counsel for the Company; provided, however, that each act or omission described in the preceding clauses (i), (iii), (iv), and (v) will not constitute a basis for the Company to terminate the Participant’s employment for Cause unless the Participant  receives written notice from the 

3

Company identifying each act or omission that the Board views to constitute Cause and any identified act or omission recurs or, if curable, the identified act or omission is not reasonably cured within 30 days after the date that the Participant received the written notice from the Company.  For purposes of this provision, any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by the Participant in good faith and in the best interests of the Company.  The cessation of employment of the Participant shall not be deemed to be with Cause unless and until there shall have been delivered to the Participant a copy of a resolution duly adopted by the affirmative vote of not less than a majority of the entire membership of the Board at a meeting of the Board called and held for such purpose (after reasonable notice is provided to the Participant, and the Participant is given an opportunity, together with counsel, to be heard before the Board), finding that, in the good faith opinion of the Board, the Participant is guilty of the conduct that constitutes Cause and specifying the particulars thereof in detail.
“Employment Agreement” shall mean that certain Employment Agreement, dated as of December 31, 2016, by and between the Company and the Participant.
“Good Reason” shall mean (i) following a Change in Control, a material adverse change in the Participant’s authority, powers, functions, titles, reporting relationship, duties, or responsibilities; (ii) a material reduction in the Participant’s base salary; (iii) a material breach of any employment agreement between the Company and the Participant; or (iv) the reassignment of the Participant’s place of employment to an office location more than 50 miles from the Participant’s then-current place of employment; provided that (A) the Participant has provided the Company with written notice of the occurrence of the event or circumstance believed to constitute Good Reason within 30 days of the Participant’s knowledge of the occurrence of such event or circumstance, (B) the Company has failed to cure such event or circumstance, if curable, within 30 days following its receipt of such notice, and (C) the Participant resigns within 90 days following the occurrence of the event or circumstance that constitutes Good Reason.
“Measurement Period” shall mean the period commencing on the Grant Date and concluding on (i) if the Participant’s Termination of Employment is due to the Participant’s death, Disability, the second anniversary of the date of such Termination of Employment, (ii) if the Participant’s Termination of Employment is by the Company without Cause, by the Participant with Good Reason, or by reason of the Participant’s Retirement, the date that is 18 months following the date of such Termination of Employment, or (iii) if the Participant’s Termination of Employment is for any reason not covered in clause (i) or (ii), the date of such Termination of Employment.  Notwithstanding the foregoing, the Measurement Period shall automatically conclude on the fifth anniversary (or, with respect to Section 3(a)(i), the fourth anniversary) of the Grant Date, if it has not previously concluded.
“Retirement” shall mean the Participant’s resignation on or following the Participant’s attainment of age 70.
“Termination of Employment” shall mean a termination of Participant’s employment with the Company and its Subsidiaries, irrespective of whether Participant continues to serve the Company and its Subsidiaries following such termination in a non-employee capacity, including, without limitation, as a director or consultant.

4

“Trailing Minimum Stock Price” shall mean, with respect to any date, the lowest Fair Market Value of a Share during the 20 consecutive trading day period immediately preceding such date.
4.Expiration.  The Options (to the extent not otherwise forfeited) shall automatically terminate and shall become null and void, be unexercisable and be of no further force and effect upon the earlier of:
(a)    the tenth anniversary of the Grant Date; and
(b)    the date of the Participant’s Termination of Employment, in the case of a Termination of Employment by the Company with Cause.
5.Tax Withholding.  The Company’s obligation to deliver the Shares upon exercise of any Options or any certificates evidencing such Shares (or to make a book-entry or other electronic notation indicating ownership of such Shares) is subject to the condition precedent that the Participant either pay or provide for the amount of any withholding obligations with respect to the exercise of the Option in such manner as may be authorized by the Committee or as may otherwise be permitted under Section 14(d) of the Plan.  Notwithstanding anything in the Plan to the contrary, the Participant shall have the right to satisfy any tax withholding obligations (a) by paying cash equal to the amount of such tax withholding or (b) if approved in advance by the Committee, by settling such obligations with Common Stock, including Common Stock that is part of the Option that gives rise to the withholding requirement, having a Fair Market Value on the date of withholding equal to the minimum amount (and not any greater amount) required to be withheld for tax purposes.
6.Compliance with Legal Requirements.  The grant and exercise of the Option and any other obligations of the Company under this Agreement shall be subject to all applicable federal and state laws, rules, and regulations and to such approvals by any regulatory or governmental agency as may be required.  The Committee may postpone the issuance or delivery of the Shares, and may require the Participant to make such representations and furnish such information, in each case, as required by applicable laws, rules, and regulations.
7.Transferability.  The Option may not be assigned, alienated, pledged, attached, sold, or otherwise transferred or encumbered by the Participant other than by will or by the laws of descent and distribution or pursuant to a transfer to the Participant’s “family members” (as defined in General Instructions A.1(a)(5) to Form S-8 under the Securities Act of 1933, as amended, and any successor thereto), whether directly or indirectly or by means of a trust or partnership or otherwise, and any purported assignment, alienation, pledge, attachment, sale, transfer, or encumbrance not in accordance with this Agreement shall be void and unenforceable against the Company, its Subsidiaries, and its Affiliates; provided that the designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer, or encumbrance.  The Option and any Shares received upon exercise thereof shall be subject to the restrictions set forth in the Plan and this Agreement. 
8.Adjustment.  In the event of an event described in Section 3(d) of the Plan occurring after the Grant Date, the adjustment provisions of Section 3(d) of the Plan shall apply 

5

to the Option, including to authorize appropriate adjustments to the Stock Price Hurdles set forth in Section 3(a) and the Share disposal restrictions set forth in Section 9.  Without limiting the foregoing, in the event of a Share Change that is an extraordinary cash dividend, the Committee or Board shall, in its sole discretion, adjust the Options either (a) by applying the adjustment mechanism set forth in Treas. Regs. § 1.424-1(a) or (b) by equitably reducing the Option Price to the extent permitted by applicable law and to the extent such reduction does not result in adverse tax consequences to the Participant, and, in either case, by reducing each applicable Stock Price Hurdle by the amount of such extraordinary cash dividend.
9.Holding Period.  Shares acquired upon exercise of the Option may not be assigned, alienated, pledged, attached, sold, or otherwise transferred or encumbered by the Participant (or any Affiliate or other permitted transferee pursuant to Section 7) prior to the date that is six months following the vesting of the tranche of the Option pursuant to which such Shares were acquired. Additionally, the Participant shall not (and shall cause the Participant’s Affiliates, or other permitted transferees pursuant to Section 7, not to) sell, transfer, or otherwise dispose of more than 10,000 Shares acquired upon exercise of the Option during any 30-day period.  Notwithstanding the foregoing, the restrictions set forth in this paragraph shall not apply to Shares withheld to pay the Option Price, to Shares used to satisfy required tax withholding obligations, or to Shares transferred pursuant to the laws of descent and distribution, and shall cease to apply as of the Participant’s death or Disability or upon a Change in Control.
10.Change in Control.
(a)    Inapplicability of the Plan Provisions.  The provisions of Sections 10(a)–10(d) of the Plan shall not apply to the Options.
(b)    Vesting.  Upon the occurrence of a Change in Control, (i) any unvested Options for which the applicable Stock Price Hurdle is less than or equal to the Fair Market Value of a Share as of immediately prior to such Change in Control shall become fully vested and exercisable (“Accelerated Options”) and (ii) any unvested Options for which the applicable Stock Price Hurdle is greater than the Fair Market Value of a Share as of immediately prior to such Change in Control (“Unvested Options”) shall be treated as set forth in Section 10(c)(ii).
(c)    Settlement; Assumption.  Upon the occurrence of a Change in Control, (i) any Vested Options (including any Accelerated Options) shall be assumed or settled as provided under Section 3(d) of the Plan, as determined by the Board or the Committee, and (ii) Unvested Options shall be treated as follows:  (A) if Shares are converted to or otherwise purchased for cash in connection with such Change in Control, then any Unvested Options shall be forfeited without consideration as of the occurrence of such Change in Control; (B) if Shares are converted to securities of the surviving entity (or parent thereof) in connection with such Change in Control, then the Company shall use commercially reasonable efforts to cause any Unvested Options to be substituted for or assumed or continued by the surviving entity (or parent thereof) in the Change in Control and the Stock Price Hurdles with respect to the Options to be adjusted, in each case, in accordance with Section 3(d) of the Plan; and (C) if Shares are converted to a mix of cash and securities of the surviving entity (or parent thereof) in connection with such Change in Control, then (1) that percentage of any Unvested Options that is equal to 

6

the percentage of consideration received in respect of each Share in cash in such Change in Control shall be forfeited and (2) the Company shall use commercially reasonable efforts to cause any remaining Unvested Options to be substituted for or assumed or continued by the surviving entity (or parent thereof) in the Change in Control and the Stock Price Hurdles with respect to such Options to be adjusted, in each case, in accordance with Section 3(d) of the Plan.
11.Clawback.  The Options and any Shares acquired upon exercise of the Options shall be subject to the terms of any Company recoupment, clawback, or similar policy as it may be in effect from time to time, as well as any similar provisions of applicable law, any of which could in certain circumstances require repayment or forfeiture of the Options or any Shares acquired upon exercise of the Options or other cash or property received with respect to the Options (including any gain realized from a disposition of the Shares acquired upon exercise of the Options).  In addition, if the Participant incurs a Termination of Employment by the Company with Cause, the Committee may in its sole discretion require the Participant to forfeit any Shares previously acquired by the Participant upon exercise of the Options, repay any gain previously realized upon the disposition of any Shares acquired upon exercise of the Options, or both.
12.Miscellaneous.
(a)    Waiver and Amendment.  No waiver of any right hereunder by any party shall operate as a waiver of any other right, or as a waiver of the same right with respect to any subsequent occasion for its exercise, or as a waiver of any right to damages.  No waiver by any party of any breach of this Agreement shall be held to constitute a waiver of any other breach or a waiver of the continuation of the same breach.
(b)    Notices.  All notices, demands, and other communications provided for or permitted hereunder shall be made in writing and shall be by registered or certified first-class mail, return receipt requested, facsimile, courier service, or personal delivery:
if to the Company, to:
Alico, Inc. 
10070 Daniels Interstate Court, Suite 100 
Fort Myers, Florida 33913 
Facsimile:  (239) 226-2004  
Attention:  Chairman, Compensation Committee
if to the Participant, to:
The address last on the records of the Company.
All such notices, demands, and other communications shall be deemed to have been duly given (i) when delivered by hand, if personally delivered; (ii) when delivered by courier, if delivered by commercial courier service; (iii) five business days after being deposited in the mail, postage prepaid, if mailed; and (iv) when receipt is mechanically acknowledged, if by facsimile.

7

(c)    Severability.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law.
(d)    No Rights to Service.  Nothing contained in this Agreement shall be construed as giving the Participant any right to be retained, in any position, as an employee, consultant, or director of the Company or its Affiliates or shall interfere with or restrict in any way the right of the Company or its Affiliates to remove, terminate, or discharge the Participant at any time and for any reason whatsoever.
(e)    Beneficiary.  The Participant may file with the Company a written designation of a beneficiary on such form as may be prescribed by the Committee and may, from time to time, change or revoke such designation by filing a new designation with the Company.  The last such designation received by the Company shall be controlling; provided, however, that no designation, or change or revocation thereof, shall be effective unless received by the Company prior to the Participant’s death, and in no event shall it be effective as of a date prior to such receipt.  If no beneficiary designation is filed by the Participant, the beneficiary shall be deemed to be his or her spouse or, if the Participant is unmarried at the time of death, his or her estate.
(f)    Successors.  The terms of this Agreement shall be binding upon and inure to the benefit of the Company and its successors and assigns, and shall be binding upon and inure to the benefit of the Participant and the Participant’s beneficiaries, executors, administrators, heirs, and successors.
(g)    Entire Agreement.  This Agreement and the Plan contain the entire agreement and understanding of the parties hereto with respect to the subject matter contained herein and supersede all prior communications, representations, and negotiations with respect thereto.
(h)    Bound by the Plan.  By signing this Agreement, the Participant acknowledges that he or she has received a copy of the Plan and has had an opportunity to review the Plan and agrees to be bound by all the terms and provisions of the Plan.
(i)    Governing Law.  This Agreement shall be construed and interpreted in accordance with the internal laws of the State of Florida without regard to principles of conflicts of law thereof, or principles of conflicts of laws of any other jurisdiction that could cause the application of the laws of any jurisdiction other than the State of Florida.
(j)    Headings.  The headings of the Sections of this Agreement are provided for convenience only and are not to serve as a basis for interpretation or construction of and shall not constitute a part of this Agreement.

8

(k)    Counterparts.  This Agreement may be signed in two or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

9

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

By: _____________________________________ 
       Name:
       Title:

PARTICIPANT

_________________________________________ 

A-1

EXHIBIT B 
RELEASE OF CLAIMS
THIS RELEASE OF CLAIMS (this “Release”) is executed and delivered by George R. Brokaw (the “Executive”) to Alico, Inc., a Florida corporation (together with its successors, the “Company”).
In consideration of the agreement by the Company to provide the Executive with the rights, payments and benefits under the Employment Agreement between the Executive and the Company dated December 31, 2016 (the “Employment Agreement”), the Executive hereby agrees as follows:
1.    Release and Covenant.  The Executive, of his own free will, voluntarily and unconditionally releases and forever discharges the Company, its subsidiaries, parents, affiliates, their directors, officers, employees, agents, shareholders, successors, and assigns (both individually and in their official capacities with the Company) (the “Company Releasees”) from, any and all past or present causes of action, suits, agreements, or other claims that the Executive, and his dependents, relatives, heirs, executors, administrators, successors, and assigns who are claiming through him, has or may hereafter have from the beginning of time to the date hereof against the Company or the Company Releasees upon or by reason of any matter, cause or thing whatsoever arising out of his employment by the Company and the cessation of said employment or any claim for compensation, and including, but not limited to, any alleged violation of the Civil Rights Acts of 1964 and 1991, the Equal Pay Act of 1963, the Age Discrimination in Employment Act of 1967, the Rehabilitation Act of 1973, the Employee Retirement Income Security Act of 1974, the Older Workers Benefit Protection Act of 1990, the Americans with Disabilities Act of 1990, and any other federal, state or local law, regulation or ordinance, or public policy, contract, or tort law having any bearing whatsoever on the terms and conditions of employment or termination of employment.  Notwithstanding the foregoing, this Release shall not, and is not intended to, waive or release any claim the Executive or any of his heirs, relatives, dependents, executors, administrators, successors, or assigns has (a) under any directors or officers insurance policy under which the Executive is covered; (b) for payment of vested benefits under any employee benefit or welfare plan of the Company or its affiliates in which the Executive was a participant on the effective date of the termination of his employment by the Company; (c) for indemnification under statutory corporate law, the Bylaws and Articles of Incorporation of the Company or any of its subsidiaries, and the Indemnification Agreement executed by the Executive and the Company; and (d) for payment of the benefits, compensation, and reimbursable expenses set forth under Section 11 of the Employment Agreement or under the Indemnification Agreement.
2.    Due Care.  The Executive acknowledges that he has received a copy of this Release prior to its execution and has been advised hereby of his opportunity to review and consider this Release for 21 days prior to its execution.  The Executive further acknowledges that he has been advised hereby to consult with an attorney prior to executing this Release.  The Executive enters into this Release having freely and knowingly elected, after due consideration, to execute this Release and to fulfill the promises set forth herein.  This Release shall be 

B-1

revocable by the Executive during the seven-day period following its execution, and shall not become effective or enforceable until the expiration of such seven-day period.  In the event of such a revocation, the Executive shall not be entitled to the consideration for this Release set forth above.
3.    Nonassignment of Claims; Proceedings.  The Executive represents and warrants that there has been no assignment or other transfer of any interest in any claim that the Executive may have against the Company or any of the Company Releasees.  The Executive represents that he has not commenced or joined in any claim, charge, action, or proceeding whatsoever against the Company or any of the Company Releasees arising out of or relating to any of the matters set forth in this Release.  The Executive further agrees that he will not seek or be entitled to any personal recovery in any claim, charge, action, or proceeding whatsoever against the Company or any of the Company Releasees for any of the matters set forth in this Release.
4.    No Reliance by Executive.  The Executive acknowledges that, in his decision to enter into this Release, he has not relied on any representations, promises, or agreements of any kind, including oral statements by representatives of the Company or any of the Company Releasees, except as set forth in this Release and the Employment Agreement.
5.    Nonadmission.  Nothing contained in this Release will be deemed or construed as an admission of wrongdoing or liability on the part of the Company or any of the Company Releasees.
6.    Communication of Safety Concerns.  Notwithstanding any other provision of this Release, the Executive remains free to report or otherwise communicate any nuclear safety concern, any workplace safety concern, or any public safety concern to the Nuclear Regulatory Commission, United States Department of Labor, or any other appropriate federal or state governmental agency, and the Executive remains free to participate in any federal or state administrative, judicial, or legislative proceeding or investigation with respect to any claims and matters not resolved and terminated pursuant to this Release.  With respect to any claims and matters resolved and terminated pursuant to this Release, the Executive is free to participate in any federal or state administrative, judicial, or legislative proceeding or investigation if subpoenaed.  The Executive shall give the Company, through its legal counsel, notice, including a copy of the subpoena, within 24 hours of receipt thereof.
7.    Governing Law.  This Release shall be interpreted, construed, and governed according to the laws of the State of Florida, without reference to conflicts of law principles thereof.
THIS RELEASE OF CLAIMS is executed by the Executive and delivered to the Company on ____________________________.

_____________________________________
George R. Brokaw

B-2Exhibit 10.1

 

CĪON INVESTMENT CORPORATION

 

UP TO 100,000,000 SHARES OF COMMON
STOCK, 

$0.001 PAR VALUE PER SHARE

(a Maryland corporation)

 

AMENDED AND RESTATED

FOLLOW-ON DEALER MANAGER AGREEMENT

 

	CĪON Securities, LLC	Date: December 28, 2016

d/b/a CION Investments

3 Park Avenue, 36th Floor

New York, New York 10016

 

Ladies and Gentlemen:

 

This Amended and Restated Follow-On Dealer
Manager Agreement (the “Agreement”), effective December 28, 2016, is entered into among CĪON Investment
Corporation, CĪON Investment Management, LLC and CĪON Securities, LLC.

 

WHEREAS, the Dealer Manager, the Adviser
and the Company (as each term is defined below) are parties to a Follow-On Dealer Manager Agreement, dated January 25, 2016 (the
“Original Follow-On Dealer Manager Agreement”).

 

WHEREAS, CĪON Investment Corporation,
a Maryland corporation (the “Company”), has registered for public sale a follow-on offering (the “Offering”)
of up to a maximum of 100,000,000 additional shares of its common stock, $0.001 par value per share (the “Common Stock”),
to be issued and sold to the public on a “best efforts” basis (the “Offered Shares”) through you
as the dealer manager (the “Dealer Manager”) and the broker-dealers and registered investment advisers selected
by you to participate and to whom you will provide sales support in the Offering (collectively, the “Selected Dealers”)
at an initial offering price of $9.95 per share (subject in certain circumstances to discounts based upon the volume of shares
purchased or other exceptions). Terms not otherwise defined herein shall have the same meaning as in the Prospectus, as that term
is defined in Section 1.1 below.

 

WHEREAS, the Company has entered into an
investment advisory agreement, dated as of June 19, 2012 (as may be amended and supplemented from time to time, the “Advisory
Agreement”) with CĪON Investment Management, LLC, a Delaware limited liability company (the “Adviser”),
registered as an investment adviser under the Investment Advisers Act of 1940, as amended, and the rules and regulations thereunder
(collectively, the “Advisers Act”).

 

WHEREAS, the Company has entered into an
administration agreement (as may be amended and supplemented from time to time, the “Administration Agreement”)
with ICON Capital, LLC, a Delaware limited liability company and an affiliate of the Adviser.

 

     

     

    

 

WHEREAS, the Dealer Manager, the Adviser
and the Company desire to amend and restate the Original Follow-On Dealer Manager Agreement in its entirety to, among other things,
reduce the compensation of the Dealer Manager and the Selected Dealers under the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the
premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and
the Adviser hereby agree with you, the Dealer Manager, as follows:

 

1.             Representations
and Warranties of the Company. The Company hereby represents and warrants as of the date hereof:

 

1.1           The
Company has prepared and filed with the Securities and Exchange Commission (the “SEC”) a registration statement
on Form N-2 (SEC Registration No. 333-203683), as amended and supplemented (the “Registration Statement”) pursuant
to the Securities Act of 1933, as amended (the “Securities Act”), and the applicable rules and regulations of
the SEC promulgated thereunder (the “Securities Act Regulations”). As used in this Agreement, the term “Effective
Date” means the applicable date upon which the Registration Statement or any post-effective amendment thereto is or was
first declared effective by the SEC; the term “Prospectus” means the prospectus in the form constituting a part
of the Registration Statement as well as in the form filed with the SEC pursuant to Rule 497 after the Registration Statement has
been effective, except that the term “Prospectus” shall also include any amendments or supplements thereto; the term
“Filing Date” means the applicable date upon which the initial Prospectus or any amendment or supplement thereto
is filed with the SEC; and the term “Offering Period” means the period commencing on the initial Effective Date
and ending on the earlier to occur of (a) acceptance by the Company of subscriptions for 100,000,000 Offered Shares or (b) the
termination of the Offering and further limited by any limitations on or required approvals of such Offering Period by any State
securities commission or agency for an offering lasting more than 12 months.

 

1.2           The
SEC has not issued any order preventing or suspending the use of any preliminary prospectus or the Prospectus nor are any proceedings
for that purpose pending, threatened or, to the knowledge of the Company, contemplated by the SEC.

 

1.3           The
Registration Statement and the Prospectus and any further amendments or supplements thereto, including any post-effective amendments,
will, as of the applicable Effective Date, conform in all material respects to the requirements of the Securities Act and the Securities
Act Regulations and will not contain any untrue statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading;
provided, however, that the Company makes no representation or warranty as to statements or omissions contained in the Registration
Statement or the Prospectus, or any amendments or supplements thereto, made in reliance upon and in conformity with written information
furnished in writing to the Company by the Dealer Manager or any Selected Dealer expressly for use in the Registration Statement
or the Prospectus or any amendments or supplements thereto.

 

    	 	2	 

     

    

 

1.4           The
Company is a corporation duly organized and validly existing under the laws of the State of Maryland, and is in good standing
with the State Department of Assessments and Taxation of Maryland, with full power and authority (corporate and other) to conduct
its business as described in the Registration Statement and the Prospectus and to enter into this Agreement and to perform the
transactions contemplated hereby.

 

1.5           This
Agreement has been duly authorized, executed and delivered by the Company and, assuming due authorization, execution and delivery
by the Adviser and the Dealer Manager, is a legal, valid and binding agreement of the Company enforceable against the Company in
accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar
laws affecting creditors’ rights generally, and by general equitable principles, and except to the extent that the enforceability
of the indemnity provisions contained in Section 12 of this Agreement may be limited under applicable securities laws.

 

1.6           Since
the respective dates as of which information is given in the Registration Statement and the Prospectus, there has not been any
material adverse change in the condition, financial or otherwise, results of operations or cash flows of the Company that individually
or in the aggregate would materially and adversely affect the Company such that the Company would be prevented from carrying out
its business, performing its obligations under this Agreement or affecting the validity or enforceability of this Agreement (a
“Company Material Adverse Effect”).

 

1.7           The
financial statements of the Company contained in the Registration Statement and the Prospectus, together with the related notes,
fairly present, in all material respects, the financial condition of the Company as of the date specified. Such financial statements
have been prepared in accordance with United States generally accepted accounting principles consistently maintained throughout
the periods involved, except as may be expressly stated in the related notes thereto. No other financial statements or supporting
schedules are required to be included in the Registration Statement or Prospectus.

 

1.8           The
accountants that have reported upon certain of the financial statements of the Company are an independent publicly registered accounting
firm as required by the Securities Act and the Securities Act Regulations. Such accountants have not been engaged by the Company
to perform any “prohibited activities” (as defined in Section 10A of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”)).

 

    	 	3	 

     

    

 

1.9           No
consent, approval, authorization or other order of any governmental authority is required in connection with the execution or delivery
by the Company of this Agreement or the issuance and sale by the Company of the Offered Shares, except (a) registration of the
Offered Shares under the Securities Act; (b) any necessary qualification under the state securities or blue sky laws of the jurisdictions
in which the Offered Shares will be offered or subscriptions to purchase will be made available, as applicable, by the Dealer Manager
and the Selected Dealers; and (c) any necessary qualification under the Conduct Rules set forth in the Financial Industry Regulatory
Authority, Inc. (“FINRA”) rulebook (the “FINRA Rules”).

 

1.10         There
are no actions, suits or proceedings pending, or to the knowledge of the Company, threatened against the Company at law or in equity
or before or by any federal or State commission, regulatory body or administrative agency or other governmental body, domestic
or foreign, which would have a Company Material Adverse Effect.

 

1.11         The
Company is not in violation of its amended and restated articles of incorporation (the “Charter”) or its bylaws
and the execution and delivery of this Agreement, the consummation of the transactions herein contemplated and compliance with
the terms of this Agreement by the Company will not conflict with, violate the terms of or constitute a default under (a) its Charter
or bylaws, (b) any indenture, mortgage, deed of trust, lease or other material agreement or instrument to which the Company is
a party or by which it may be bound, (c) any law, order, rule or regulation applicable to the Company or (d) any writ, injunction
or decree of any government, governmental instrumentality or court, domestic or foreign, having jurisdiction over the Company or
its assets, properties or operations, except, in the cases of clauses (b), (c) and (d), for such conflicts, violations or defaults
that, individually or in the aggregate, would not result in a Company Material Adverse Effect.

 

1.12         The
Offered Shares conform in all material respects to the description of the Common Stock contained in the Registration Statement
and the Prospectus. The authorized, issued and outstanding shares of Common Stock as of the date hereof are as set forth in the
Prospectus under the caption “Description of Our Securities.” The Offered Shares have been duly authorized and, when
issued and sold as contemplated by the Prospectus and upon payment therefor as provided in this Agreement and the Prospectus, will
be validly issued, fully paid and nonassessable and will conform to the description thereof contained in the Prospectus.

 

1.13         There
are no contracts or other documents required by the Securities Act or the Securities Act Regulations to be described in or incorporated
by reference into the Registration Statement or the Prospectus or to be filed as exhibits to the Registration Statement that have
not been accurately described in all material respects in the Prospectus or incorporated by reference or filed as required. The
agreements to which the Company is a party, which are described in the Registration Statement and the Prospectus are valid and
enforceable in all material respects by the Company except as enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting creditors’ rights generally, and by general equitable principles, and, to the knowledge
of the Company, no party thereto is in breach or default under any of such agreements, except where such breach or default would
not have a Company Material Adverse Effect.

 

    	 	4	 

     

    

 

1.14         The
Company is a non-diversified, closed-end management investment company that has elected to be treated as a business development
company (“BDC”) under the Investment Company Act of 1940, as amended (the “Investment Company Act”),
and has not withdrawn such election, and the SEC has not ordered that such election be withdrawn nor, to the Company’s knowledge,
have proceedings to effectuate such withdrawal been initiated or threatened by the SEC.

 

1.15         The
terms of the Investment Advisory Agreement and the Administration Agreement, including compensation terms, comply in all material
respects with all applicable provisions of the Advisers Act and the Investment Company Act.

 

1.16         The
approval of the Investment Advisory Agreement by each of the board of directors and the initial stockholders of the Company has
been made in accordance with Section 15 of the Investment Company Act applicable to companies that have elected to be regulated
as BDCs under the Investment Company Act.

 

1.17         Except
as disclosed in the Registration Statement and Prospectus, (a) no person is serving or acting as an officer, director or investment
adviser of the Company, except in accordance with the provisions of the Investment Company Act and the Advisers Act and the applicable
published rules and regulations thereunder and (b) to the knowledge of the Company, no director of the Company is an “affiliated
person” (as defined in the Investment Company Act) of the Dealer Manager.

 

1.18         The
Company’s current business operations and investments and contemplated business operations and investments are in compliance
in all material respects with the provisions of the Investment Company Act and the rules and regulations of the SEC thereunder
applicable to BDCs, except as will not have, singly or in the aggregate, a Company Material Adverse Effect.

 

1.19         The
provisions of the Charter and bylaws of the Company and the investment objectives, policies and restrictions described in the Prospectus
are not inconsistent with the requirements of the Investment Company Act and the rules and regulations of the SEC thereunder applicable
to a BDC.

 

1.20         The
Company (a) implements and maintains controls and other procedures that are designed to ensure that information required to be
disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and
reported within the time periods specified in the SEC’s rules and forms and is accumulated and communicated to the Company’s
management, including its co-chief executive officers and chief financial officer or persons performing similar functions, as appropriate
to allow timely decisions regarding required disclosure; (b) the Company makes and keeps books, records and accounts that, in reasonable
detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (c) the Company implements
and maintains a system of internal accounting controls sufficient to provide reasonable assurances that: (i) transactions are executed
in accordance with management’s general or specific authorization; (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with generally accepted accounting principles and to maintain accountability
for assets; (iii) access to assets is permitted only in accordance with management’s general or specific authorization; and
(iv) the recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is
taken with respect to any differences; and (d) to the Company’s knowledge, neither the Company nor any employee or agent
thereof has made any payment of funds of the Company or received or retained any funds, and no funds of the Company have been set
aside to be used for any payment, in each case, in material violation of any law, rule or regulation applicable to the Company.

 

    	 	5	 

     

    

 

1.21         Any
supplemental sales literature or advertisements have been and will be, to the extent required, filed with and approved by the appropriate
securities agencies and bodies; provided, however, that the Dealer Manager shall be responsible for filing all such
sales literature or advertisements with FINRA, to the extent required, as set forth in Section 7 below. Any and all Approved Sales
Literature did not or will not, at the time provided for use, include any untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary to make the statements therein not misleading. Such supplemental sales
literature or advertisement shall be categorized as either: (a) “Broker/Dealer/RIA Use Only” educational materials,
which are, for purposes of this Agreement, materials prepared for or by the Company for the sole purpose of educating the Dealer
Manager or Selected Dealers, as the case may be, in preparation to solicit sales of Offered Shares or make subscriptions to purchase
the Offered Shares available and shall not be used with members of the general investing public (“B/D/RIA Use Only Approved
Sales Literature”) or (b) “Investor” sales materials, which are, for purposes of this Agreement, materials
prepared for or by the Company and may be used by the Dealer Manager or Selected Dealers, as the case may be, with members of the
general investing public (“Investor Use Approved Sales Literature” and, together with B/D/RIA Use Only Approved
Sales Literature, the “Approved Sales Literature”).

 

2.             Representations
and Warranties of the Adviser. The Adviser hereby represents and warrants as of the date hereof:

 

2.1           This
Agreement has been duly authorized, executed and delivered by the Adviser and, assuming due authorization, execution and delivery
by the Company and the Dealer Manager, is a legal, valid and binding agreement of the Adviser enforceable against the Adviser in
accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar
laws affecting creditors’ rights generally, and by general equitable principles, and except to the extent that the enforceability
of the indemnity provisions contained in Section 12 of this Agreement may be limited under applicable securities laws.

 

    	 	6	 

     

    

 

2.2           The
Adviser is a limited liability company duly organized and validly existing under the laws of the State of Delaware, and is
in good standing with the State of Delaware Secretary of State, with full power and authority (corporate and other) to conduct
its business as described in the Registration Statement and the Prospectus and to enter into this Agreement and to perform the
transactions contemplated hereby.

 

2.3           Except
for the continued registration of the Adviser under the Advisers Act, no consent, approval, authorization or other order of any
governmental authority is required in connection with the execution or delivery by the Adviser of this Agreement.

 

2.4           There
are no actions, suits or proceedings pending, or to the knowledge of the Adviser, threatened against the Adviser at law or in equity
or before or by any federal or State commission, regulatory body or administrative agency or other governmental body, domestic
or foreign, which would have any material adverse change in the condition, financial or otherwise, results of operations or cash
flows of the Adviser that individually or in the aggregate would materially and adversely affect the Adviser such that the Adviser
would be prevented from carrying out its business, performing its obligations under this Agreement or affecting the validity or
enforceability of this Agreement (an “Adviser Material Adverse Effect”).

 

2.5           The
Adviser is not in violation of its certificate of formation or its limited liability company agreement and the execution and delivery
of this Agreement, the consummation of the transactions herein contemplated and compliance with the terms of this Agreement by
the Adviser will not conflict with, violate the terms of or constitute a default under (a) its certificate of formation or limited
liability company agreement, (b) any indenture, mortgage, deed of trust, lease or other material agreement or instrument to which
the Adviser is a party or by which it may be bound, (c) any law, order, rule or regulation applicable to the Adviser or (d) any
writ, injunction or decree of any government, governmental instrumentality or court, domestic or foreign, having jurisdiction over
the Adviser or its assets, properties or operations, except, in the case of clauses (b), (c) and (d), for such violations or defaults
that, individually or in the aggregate, would not result in an Adviser Material Adverse Effect.

 

2.6           The
agreements to which the Adviser is a party which are described in the Registration Statement and the Prospectus are valid and enforceable
in all material respects by the Adviser except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium
or similar laws affecting creditors’ rights generally, and by general equitable principles, and, to the knowledge of the
Adviser, no party thereto is in breach or default under any of such agreements, except where such breach or default would not have
an Adviser Material Adverse Effect.

 

3.             Representations and Warranties of
the Dealer Manager. The Dealer Manager hereby represents and warrants as of the date hereof and at all times during the Offering
Period (provided that, to the extent such representations and warranties are given only as of a specified date or dates, the Dealer
Manager only makes such representations and warranties as of such date or dates):

 

    	 	7	 

     

    

 

3.1           The
Dealer Manager is a limited liability company duly organized and validly existing under the laws of the State of Delaware, and
is in good standing with the Secretary of State of Delaware, with full power and authority (corporate and other) to conduct its
business as described in the Registration Statement and the Prospectus and to enter into this Agreement and to perform the transactions
contemplated hereby and thereby.

 

3.2           This
Agreement has been duly authorized, executed and delivered by the Dealer Manager and, assuming due authorization, execution and
delivery by the Company and the Adviser, is a legal, valid and binding agreement of the Dealer Manager enforceable against the
Dealer Manager in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting creditors’ rights generally, and by general equitable principles, and except to the
extent that the enforceability of the indemnity provisions contained in Section 12 of this Agreement may be limited under applicable
securities laws.

 

3.3           The
execution and delivery of this Agreement, the consummation of the transactions herein contemplated and compliance with the terms
of this Agreement by the Dealer Manager will not conflict with, violate the terms of or constitute a default under (a) its organizational
documents, (b) any indenture, mortgage, deed of trust, lease or other material agreement or instrument to which the Dealer Manager
is a party or by which it may be bound, (c) any law, order, rule or regulation applicable to the Dealer Manager or (d) any writ,
injunction or decree of any government, governmental instrumentality or court, domestic or foreign, having jurisdiction over the
Dealer Manager or its assets, properties or operations, except, in the case of clauses (b), (c) or (d) for such conflicts, violations
or defaults that would not individually or in the aggregate have a material adverse effect on the condition (financial or otherwise),
results of operations or cash flow of the Dealer Manager.

 

3.4           The
Dealer Manager is (a) a member in good standing of FINRA and (b) registered as a securities broker-dealer in those jurisdictions
wherein members of, or persons associated with, the Dealer Manager will distribute the Offered Shares. Members of, or persons associated
with, the Dealer Manager who distribute the Offered Shares are duly registered or licensed by, and in good standing with, FINRA
and those jurisdictions wherein they will distribute the Offered Shares. Except as otherwise disclosed to the Company in writing,
neither the Dealer Manager nor any of its associated persons have been subject to a fine, a consent decree or suspension of their
licenses or registrations within the last three (3) years for violation of federal or State securities rules, laws or regulations.
The Dealer Manager will promptly advise the Company of any pending, threatened or current civil or administrative proceedings involving
alleged violations of such rules, laws or regulations.

 

    	 	8	 

     

    

 

3.5           The
information under the caption “Plan of Distribution” in the Prospectus insofar as it relates to the Dealer Manager,
and all other information furnished to the Company by the Dealer Manager in writing specifically for use in the Registration Statement
or the Prospectus, does not contain any untrue statement of a material fact or omit to state any material fact required to be stated
therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.

 

4.             Covenants
of the Company. The Company hereby covenants and agrees as follows:

 

4.1           The
Company will (a) use commercially reasonable efforts to cause the Registration Statement and any subsequent amendments thereto
to become effective as promptly as possible; (b) promptly advise the Dealer Manager (i) of the receipt of any comments of, or requests
for additional or supplemental information from, the SEC, (ii) of the time and date of any filing of any post-effective amendment
to the Registration Statement or any amendment or supplement to the Prospectus; and (iii) of the time and date that any post-effective
amendment to the Registration Statement becomes effective; and (c) if at any time the SEC shall issue any stop order suspending
the effectiveness of the Registration Statement, the Company will promptly notify the Dealer Manager and, to the extent that the
Company determines such action is in the best interest of the Company, use its commercially reasonable efforts to obtain the lifting
of such order at the earliest possible time.

 

4.2           The
Company will, at no expense to the Dealer Manager, furnish the Dealer Manager with such number of printed copies of the Registration
Statement, including all amendments (including post-effective amendments) and exhibits thereto, as the Dealer Manager may reasonably
request. The Company will similarly furnish to the Dealer Manager as many copies as the Dealer Manager may reasonably request in
connection with the Offering of the Offered Shares of: (a) the Prospectus in preliminary and final form and every form of supplement
or amendment; and (b) the Approved Sales Literature.

 

4.3           The
Company has filed Form N-54A – Notification of Election to be Subject to Sections 55 through 65 of the Investment Company
Act of 1940 Filed Pursuant to Section 54(a) of the Act (the “Notification of Election”) with the SEC, pursuant
to which the Company has elected to be treated as a BDC. Except as otherwise provided for in this Agreement, the Company will not
withdraw such Notification of Election or take any action to cause the SEC to order such Notification of Election to be withdrawn.
The Company intends to maintain its status as a BDC; provided, however, that the Company may change the nature of its business
so as to cease to be, or to withdraw its election as, a BDC, with the approval of the Company’s board of directors and a
vote of its stockholders as required by Section 58 of the Investment Company Act.

 

4.4           The
Company has qualified for and elected to be treated as a regulated investment company under Subchapter M of the Internal Revenue
Code of 1986, as amended, and intends to maintain such qualification and election in effect for each full fiscal year during which
it is a BDC under the Investment Company Act; provided that, at the discretion of the Company’s board of directors, it may
elect not to be so treated.

 

    	 	9	 

     

    

 

4.5           The
Company will use its commercially reasonable efforts to qualify the Offered Shares for offering and sale under, or to establish
the exemption of the offering and sale of the Offered Shares from qualification or registration under, the applicable state securities
or “blue sky” laws of such jurisdictions as the Dealer Manager and the Company shall mutually agree upon and to make
such applications, file such documents and furnish such information as may be reasonably required for such purpose (collectively,
the “Blue Sky Applications”); provided that, the Dealer Manager shall have provided the Company with any information
required for such Blue Sky Applications that is in the Dealer Manager’s possession. The Company will notify the Dealer Manager
promptly following each date of: (a) the effectiveness of qualification or exemption of the Offered Shares in any additional jurisdiction
in which the offering and sale of the Offered Shares has been authorized by appropriate State regulatory authorities; and (b) a
change in the status of the qualification or exemption of the Offered Shares in any jurisdiction in any material respect. The Company
will file and obtain clearance of the Approved Sales Literature to the extent required by applicable State securities laws. At
the request of the Dealer Manager, the Company will furnish the Dealer Manager a copy of such papers filed by the Company in connection
with any such qualification.

 

4.6           If,
at any time when a Prospectus relating to the Offered Shares is required to be delivered under the Securities Act, any event shall
have occurred to the knowledge of the Company, or the Company receives notice from the Dealer Manager that it believes such an
event has occurred, as a result of which the Prospectus or any Approved Sales Literature as then amended or supplemented would
include any untrue statement of a material fact, or omit to state a material fact necessary to make the statements therein not
misleading in light of the circumstances existing at the time it is so required to be delivered to a prospective purchaser, or
if it is necessary at any time to amend the Registration Statement or supplement the Prospectus relating to the Offered Shares
to comply with the Securities Act, then the Company will promptly notify the Dealer Manager thereof (unless the information shall
have been received from the Dealer Manager) and will prepare and file with the SEC an amendment or supplement which will correct
such statement or effect such compliance to the extent required, and shall make available to the Dealer Manager thereof sufficient
copies for its own use and/or distribution to Selected Dealers.

 

4.7           The
Company will apply the proceeds from the sale of the Offered Shares as set forth in the Prospectus.

 

5.             Covenants
of the Adviser. The Adviser hereby covenants and agrees as follows:

 

5.1           The
Adviser is registered as an investment adviser under the Advisers Act and is not prohibited by the Advisers Act or the Investment
Company Act from acting under the Investment Advisory Agreement for the Company as contemplated by the Prospectus. There are no
proceedings or, to the Adviser’s knowledge, any facts or circumstances the existence of which could lead to any proceeding
which might adversely affect the registration of the Adviser with the SEC.

 

    	 	10	 

     

    

 

6.             Covenants
of the Dealer Manager. The Dealer Manager covenants and agrees as follows:

 

6.1          With
respect to the Dealer Manager’s participation in distributing and the participation of each Selected Dealer in the offer
and sale of the Offered Shares, the Dealer Manager agrees, and each Selected Dealer in its selected dealer agreement or registered
investment adviser agreement, as applicable (collectively, the “Selected Dealer Agreement”) will agree, to comply
in all material respects with all applicable requirements of (a) the Securities Act, the Securities Act Regulations, the Exchange
Act and the rules and regulations promulgated thereunder and all other federal regulations applicable to the Offering and the roles
of the respective parties, (b) all applicable State securities or blue sky laws and regulations in effect from time to time, and
(c) the rules of FINRA applicable to the Offering in effect from time to time and including, without limitation, FINRA Rules 2010,
2090, 2111, 2310, 2340, 2420, 3310 and 5141 and with any other pertinent FINRA and/or NASD Rules. The Dealer Manager will not distribute
the Offered Shares for sale by Selected Dealers in any jurisdiction unless and until it has been advised that the Offered Shares
are either registered in accordance with, or exempt from, the securities and other laws applicable thereto. The parties acknowledge
that for the purposes of FINRA Rules, the investors who purchase Offered Shares through Selected Dealer are “customers”
of Selected Dealer and not of the Dealer Manager.

 

6.2           The
Dealer Manager shall, in accordance with applicable law or as prescribed by any State securities administrator, provide, or require
in the Selected Dealer Agreement that the Selected Dealer shall provide, to any prospective investor copies of the Prospectus and
any supplements thereto during the course of the Offering and prior to sale of the Offered Shares. The Company may provide the
Dealer Manager with certain Approved Sales Literature to be used by the Selected Dealers (a) for its own educational purposes,
(b) in connection with the solicitation of purchasers of the Offered Shares or (c) to make subscriptions to purchase the Offered
Shares available. The Dealer Manager agrees that it shall require each Selected Dealer to agree that such Selected Dealer will
(i) not use any sales materials in connection with the solicitation of purchasers of the Offered Shares except Approved Sales
Literature; (ii) not use any B/D/RIA Use Only Approved Sales Literature with members of the general investing public; and (iii)
to the extent the Company provides Investor Use Approved Sales Literature, not use such Investor Use Approved Sales Literature
unless accompanied or preceded by the Prospectus, as then currently in effect, and as may be supplemented in the future. The Selected
Dealers will not publish, circulate or otherwise use any other advertisement or solicitation material in connection with the Offering
without the Dealer Manager’s express prior written approval. The use of any other sales material is expressly prohibited.

 

    	 	11	 

     

    

 

6.3           The
Dealer Manager shall not, and each Selected Dealer shall agree not to, give or provide any information or make any representation
other than those contained in the Prospectus. The Dealer Manager shall require each Selected Dealer to agree not to (a) show or
give to any investor or prospective investor or reproduce any material or writing that is supplied to it by the Company bearing
a legend denoting that it is not to be used in connection with the sale of the Offered Shares to members of the public, including
any B/D/RIA Use Only Approved Sales Literature; or (b) show or give to any investor or prospective investor in a particular jurisdiction
any material or writing that is supplied to it by the Company if such material bears a legend denoting that it is not to be used
in connection with the sale of Offered Shares to members of the public in such jurisdiction.

 

6.4           The
Dealer Manager shall distribute and shall require each Selected Dealer to agree to solicit purchases of the Offered Shares or make
subscriptions to purchase the Offered Shares available only in the jurisdictions in which the Dealer Manager and such Selected
Dealer are legally qualified to so act and in which the Dealer Manager and each Selected Dealer have been advised by the Company
in writing that such solicitations can be made or subscriptions be made available.

 

6.5           The
Dealer Manager will require each Selected Dealer to agree to comply in all material respects with the subscription procedures and
“Plan of Distribution” set forth in the Prospectus. Subscriptions will be submitted by each Selected Dealer only on
the form which is included as Appendix A to the Prospectus (the “Subscription Agreement”). The Dealer Manager
understands and acknowledges, and each Selected Dealer shall acknowledge, that the Subscription Agreement must be executed and
initialed by the subscriber as provided for in the Subscription Agreement.

 

6.6           The
Dealer Manager shall require each Selected Dealer to agree not to offer or sell the Offered Shares in any jurisdiction except to
investors who satisfy the investor suitability and minimum investment requirements under the most restrictive of the following:
(a) applicable provisions of the Prospectus, (b) the laws of the jurisdiction of which such investor is a resident, and (c) FINRA
rules and regulations and FINRA Rules 2310 and 2111, in particular. Specifically, the Dealer Manager agrees to require each Selected
Dealer to agree to ensure that, in recommending the purchase or sale of Offered Shares to an investor, each member of, or person
associated with, the Selected Dealer, as applicable, shall have reasonable grounds (as required by FINRA Rules 2310(b)(2)(B)(i)
and 2111) to believe, on the basis of information obtained from the investor (and thereafter maintained in the manner and for the
period provided in this Agreement and such FINRA Rules) concerning his or her age, investment objectives, other investments, financial
situation and needs, and any other information known to such member of, or person associated with, the Selected Dealer that (A)
the investor is or will be in a financial position appropriate to enable him or her to realize to a significant extent the benefits
described in the Prospectus, including tax benefits to the extent they are a significant aspect of the Company; (B) the investor
has a fair market net worth sufficient to sustain the risks inherent in an investment in the Offered Shares in the amount proposed,
including complete loss, and lack of liquidity, of such investment; and (C) an investment in the Offered Shares is suitable in
type and amount for such investor. The Dealer Manager will require each Selected Dealer to agree to ensure that (x) each member
of, or person associated with, the Selected Dealer, will make diligent inquiry as to the suitability and appropriateness of an
investment in Offered Shares from each proposed investor, (y) retain in its records for a period equal to the longer of (A) six
years from the date of the applicable sale of Offered Shares or (B) five years from the end of the Offering Period, and (z) make
available to the Company, upon request (and upon the Dealer Manager’s or Selected Dealer’s receipt of an appropriate
document subpoena from one of the following, to representatives of the SEC, FINRA and applicable State securities administrators)
documents disclosing the basis upon which the determination as to suitability was reached as to each purchaser of Offered Shares
pursuant to a subscription solicited by the applicable Selected Dealer, whether such records relate to accounts which have been
closed, accounts which are currently maintained, or accounts hereafter established. The Selected Dealer shall not purchase any
Offered Shares for a discretionary account without obtaining the customer’s prior written approval and/or his or her signature
on a Subscription Agreement.

 

    	 	12	 

     

    

 

6.7           The
Dealer Manager will comply and will require each Selected Dealer to agree to comply with relevant provisions applicable to securities
broker-dealers of Title III of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism Act of 2001, Pub. L. No. 107-56, 115 Stat. 272 (2001) (the “PATRIOT Act”), as well as FINRA Rule 3310
setting forth minimum standards for anti-money laundering (“AML”) programs of broker-dealers. These minimum
standards require the Dealer Manager and the Selected Dealer to have implemented a written AML program reasonably designed to (a)
detect traces of suspicious financial transactions, (b) achieve compliance with the Bank Secrecy Act regulations, (c) provide
for independent testing, (d) designate an AML compliance officer, and (e) provide for ongoing training. Title III of the PATRIOT
Act, 31 U.S.C. §§ 5311, et seq., is referred to as the International Money Laundering Abatement and Anti-Terrorist Financing
Act of 2001 (the “Money Laundering Abatement Act”). Among other applicable requirements under the Money Laundering
Abatement Act, the Dealer Manager agrees to require the Selected Dealer to agree to comply with Section 312 regarding due diligence
requirements, Section 313 regarding correspondent account prohibitions, Section 314 regarding financial institution cooperation,
Section 319(b) regarding domestic and foreign bank records production, Section 326 regarding customer identification standards
(as described in greater detail in Section 6.9 of this Agreement), Section 352 regarding AML compliance program components, and
Section 356 regarding suspicious activity reporting requirements.

 

6.8           The
Dealer Manager agrees to, and will require the Selected Dealer and any persons associated with the Selected Dealer to agree to
(a) abide by and comply with (i) the privacy standards and requirements of the Gramm-Leach-Bliley Act of 1999 (the “GLB
Act”), (ii) the privacy standards and requirements of any other applicable federal or State law, and (iii) the
Dealer Manager’s internal privacy policies and procedures, each as may be amended from time to time; (b) refrain from
the use or disclosure of nonpublic personal information (as defined under the GLB Act) of all customers who have opted out of such
disclosures except as necessary to service the customers or as otherwise necessary or required by applicable law; and (c) be
responsible for determining which customers have opted out of the disclosure of nonpublic personal information by periodically
reviewing and, if necessary, retrieving a list of such customers (the “List”) to identify customers that have
exercised their opt-out rights. In the event the Selected Dealer uses or discloses nonpublic personal information of any customer
for purposes other than servicing the customer, or as otherwise required by applicable law, the Selected Dealer will agree to consult
the List to determine whether the affected customer has exercised his or her opt-out rights. The Dealer Manager will require the
Selected Dealer to agree that it understands it is prohibited from using or disclosing any nonpublic personal information of any
customer that is identified on the List as having opted out of such disclosures.

 

    	 	13	 

     

    

 

6.9           Pursuant
to Section 326 of the PATRIOT Act, the Dealer Manager will require the Selected Dealer to agree to implement reasonable Customer
Identification Procedures (“CIP”) to (a) verify and identify customers who open new accounts, (b) 
maintain records of the information retrieved from the customer, including the name, address and other identifying information,
and (c) consult lists of known or suspected terrorists or terrorist organizations to determine if the potential investor appears
on any such list and will provide the Company with annual re-certification of such implementation to the extent reasonably requested
by the Company.

 

6.10         The
Dealer Manager will not distribute, and no person associated with the Selected Dealer will solicit customers’ orders for,
the Offered Shares prior to the Effective Date. The Dealer Manager agrees to take all reasonable steps to make available a copy
of the final Prospectus relating to the Offered Shares to the Selected Dealer that is expected to solicit customer orders for the
Offered Shares after the Effective Date prior to making any such solicitation by such associated persons of the Selected Dealer.
The Dealer Manager agrees to take reasonable steps to furnish each Selected Dealer with sufficient copies, as requested by them,
of the final Prospectus to enable them to comply with paragraphs (b), (c), (d) and (e) of Rule 15c2-8 of the Exchange Act, and
the prospectus delivery requirements of Section 5(b)(1) and (2) of the Securities Act. Neither the Dealer Manager nor the Selected
Dealer nor any person associated with the Dealer Manager or the Selected Dealer will furnish Prospectuses to any person in any
State (e.g. in any State (a) listed as not cleared on the “Blue-Sky Survey” by counsel to the Company or the Dealer
Manager or (b) in which the Selected Dealer or any person associated with the Selected Dealer who solicits offers to buy or offers
to sell the Offered Shares, or makes subscriptions to purchase the Offered Shares available, is not currently registered); provided,
however, that this provision is not to be construed to relieve the Dealer Manager or each Selected Dealer from complying with
the requirements of Section 5(b)(1) and (2) of the Securities Act. The Dealer Manager will require that each Selected Dealer acknowledge
that Prospectuses shall not be furnished by the Selected Dealers or any person associated with such Selected Dealers to any prospective
investor while the Registration Statement is subject to an examination, proceeding or stop order pursuant to Section 8 of the Securities
Act.

 

    	 	14	 

     

    

 

7.             Obligations
of the Dealer Manager.

 

7.1           The
Company hereby appoints the Dealer Manager as its exclusive agent during the Offering Period to cause Selected Dealers to solicit
subscriptions for the Offered Shares or make subscriptions to purchase the Offered Shares available at the subscription price to
be paid in accordance with, and otherwise upon the terms and conditions set forth in, the Prospectus and the Subscription Agreement,
and the Dealer Manager agrees to use its commercially reasonable efforts to offer, and to enter into Selected Dealer Agreements
on behalf of the Company authorizing each such Selected Dealer to offer or make available subscriptions to purchase, the Offered
Shares during the Offering Period directly to potential investors that (a) satisfy the investor suitability standards (i) set forth
in the Prospectus, (ii) provided under applicable State laws and (iii) provided in FINRA’s Rules and (b) are acceptable to
the Company (the “Eligible Investors”). The Dealer Manager hereby agrees that it will not make representations
or give information not contained in (x) the Prospectus or (y) any Approved Sales Literature.

 

7.2           Each
Selected Dealer selected by the Dealer Manager is authorized by its Selected Dealer Agreement to find Eligible Investors for the
Offered Shares who satisfy the suitability standards set forth in the Prospectus during the Offering Period and that are acceptable
to the Company. Each date on which any investor is admitted to the Company and thereby becoming a stockholder is hereinafter called
a “Closing Date.”

 

7.3           Any
Approved Sales Literature shall, to the extent required, be filed by the Dealer Manager with, and approved by, FINRA.

 

8.             Subscription
Procedures.

 

8.1           The
Dealer Manager shall require each Selected Dealer to agree to (a) find Eligible Investors for the Offered Shares, (b) keep
records of the basis for each determination by a member of, or person associated with, the Selected Dealer, as applicable, of an
investor’s suitability and (c) promptly forward each fully completed and executed copy of the Subscription Agreement, as
signed by each investor and countersigned by a supervisory representative of the Selected Dealer, together with the related subscription
payment in the form of a check made payable to “CĪON Investment Corporation” to:

 

	Regular Mail	Overnight:
	CION Investments	CION Investments
	c/o DST Systems	c/o DST Systems
	P.O. Box 219476	430 West 7th Street
	Kansas City, MO  64121-9476	Kansas City, MO  64105
	 	Tel:  (800) 343-3736

 

    	 	15	 

     

    

 

8.2           Each
Subscription Agreement and related subscription payment shall be forwarded by the Selected Dealer to the Company at the foregoing
address no later than noon of the next business day after receipt from its customer by any member of, or person associated with,
the Selected Dealer of such payment, unless such Subscription Agreement and payment are first forwarded to another of the Selected
Dealer’s offices for internal supervisory review (which shall take place within the aforementioned time period), in which
event such other office shall complete its review and forward such Subscription Agreement and payment to the above address no later
than noon of the next business day after its receipt thereof. Notwithstanding the foregoing, any investor’s check not properly
completed as described above shall be promptly returned to such investor not later than the next business day following the Selected
Dealer’s receipt of such check. Each subscription so received by the Company will be subject to acceptance or rejection by
it by the end of the business day on which it is received. The Company undertakes to promptly return directly to the Selected Dealer
for return to any of its customers whose subscriptions are not accepted by the Company, their Subscription Agreements together
with the related subscription payment within five business days of the Company’s receipt of same. Unless and until an event
requiring a refund occurs, an investor will have no right to withdraw his or her subscription payment. The Company has reserved
the unconditional right to refuse to accept, in whole or in part, any subscription and related payment and to refuse to accept
as an investor any person for any reason whatsoever or no reason.

 

8.3           
The Company will accept subscriptions for Offered Shares during the Offering Period and admit to the Company as stockholders, investors
whose subscriptions are accepted. Such admissions will take place from time to time as shall be determined by the Company, with
the anticipation that Closing Dates will occur weekly and promptly following the end of the Offering Period or earlier termination
of the Offering.

 

8.4           The
Company will accept subscriptions for the Offered Shares subject to the Company’s right to terminate the Offering at any
time with notice to the Dealer Manager and to the Selected Dealer and to reject any subscription in whole or in part, in its sole
discretion.

 

9.             Compensation
of the Dealer Manager. In consideration for the services rendered by the Dealer Manager:

 

9.1           The
Company agrees to pay to the Dealer Manager, a dealer manager fee in the amount of 2.0% of the gross proceeds from the sale of
the Offered Shares (the “Dealer Manager Fee”), all or a portion of which may be reallowed to Selected Dealers
(as described more fully in the Selected Dealer Agreement entered into with such Selected Dealer and contingent upon Selected Dealer’s
execution of a separate agreement) up to a maximum of 1.0% of the gross proceeds of the Offered Shares sold, which reallowance,
if any, shall be determined by the Dealer Manager in its sole discretion based on factors including, but not limited to, the assistance
of such Selected Dealer in marketing the Offering and due diligence expenses incurred; provided, however, that no Dealer Manager
Fee shall be payable in respect of the purchase of Offered Shares by an officer, director or employee of the Company, the Adviser
or their respective affiliates or for Offered Shares purchased through the Company’s distribution reinvestment plan.

 

    	 	16	 

     

    

 

9.2           The
Company shall reimburse the Dealer Manager for approved reasonable bona fide due diligence expenses incurred by the Dealer Manager.
Such due diligence expenses may include travel, lodging, meals and other reasonable out-of-pocket expenses incurred by the Dealer
Manager and its personnel when visiting the Company’s offices to verify information relating to the Company. The Dealer Manager
shall provide to the Company a detailed and itemized invoice for any such due diligence expenses.

 

9.3           All
such compensation will be paid by the Company substantially concurrently with the acceptance of subscribers for such Offered Shares
as stockholders of the Company. No compensation will be paid with respect to subscriptions (or portions thereof) that have been
rejected by the Company.

 

10.           Compensation
to Selected Dealers. In consideration for the services rendered by a Selected Dealer:

 

10.1         The
Company shall pay to the Selected Dealers, subject to volume discounts and other special circumstances described in or otherwise
provided in the “Plan of Distribution” section of the Prospectus, selling commissions in an amount up to 3.0% of the
gross proceeds of the Offered Shares sold (the “Sales Commissions”); provided, however, that no Sales
Commissions shall be payable in respect of the purchase of Offered Shares: (a) through an investment advisory representative who
is paid on a fee-for-service basis by the investor; (b) by a Selected Dealer (or such Selected Dealer’s registered representative)
in its individual capacity, or by a retirement plan of such Selected Dealer (or such Selected Dealer’s registered representative);
(c) officers, directors or employees of the Dealer Manager, the Company, the Adviser or their respective affiliates in each
case for their own accounts, for investment purposes only and not with a view toward resale or other distribution; or (d) through
the Company’s distribution reinvestment plan.

 

10.2         The
Company shall reimburse the Selected Dealers for approved reasonable bona fide due diligence expenses incurred by any Selected
Dealer. Such due diligence expenses may include travel, lodging, meals and other reasonable out-of-pocket expenses incurred by
any Selected Dealer and its personnel when visiting the Company’s offices to verify information relating to the Company.
Any Selected Dealer shall provide to the Company a detailed and itemized invoice for any such due diligence expenses.

 

10.3         All
such compensation will be paid by the Company substantially concurrently with the acceptance of subscribers for such Offered Shares
as stockholders of the Company. No compensation will be paid with respect to subscriptions (or portions thereof) that have been
rejected by the Company.

 

11.           Expenses.

 

11.1         Subject
to Section 11.2 below, the Dealer Manager shall pay all its own costs and expenses incident to the performance of its obligations
under this Agreement.

 

    	 	17	 

     

    

 

11.2         The
Company agrees to pay all costs and expenses incident to the Offering, whether or not the transactions contemplated hereunder are
consummated or this Agreement is terminated, including expenses, fees and taxes in connection with: (a) the registration fee, the
preparation and filing of the Registration Statement (including, without limitation, financial statements, exhibits, schedules
and consents), the Prospectus, and any amendments or supplements thereto, and the printing and furnishing of copies of each thereof
to the Dealer Manager and to the Selected Dealers (including the costs of mailing and shipment); (b) the preparation, issuance
and delivery of certificates, if any, for the Offered Shares, including any stock or other transfer taxes or duties payable upon
the sale of the Offered Shares; (c) all fees and expenses of the Company’s legal counsel and the independent registered public
accounting firm; (d) the qualification of the Offered Shares for offering and sale under State laws in the States that the Company
and the Dealer Manager shall agree as appropriate and the determination of their eligibility for investment under State law as
aforesaid and the printing and furnishing of copies of any blue sky surveys or legal investment surveys to the Dealer Manager;
(e) the fees and expenses of any transfer agent or registrar for the Offered Shares and miscellaneous expenses referred to in the
Registration Statement; (f) all costs and expenses incident to the travel and accommodation of the Company’s employees in
making road show presentations with respect to the Offering; and (g) the performance of the Company’s other obligations hereunder.

 

12.           Indemnification.

 

12.1         For
purposes of this Agreement, an “Indemnified Party” shall mean a person entitled to indemnification under this
Section 12, as well as such person’s officers, directors (including, with respect to the Company, any person named in the
Registration Statement (including any such person who has consented to become a director) and any person who signed the Registration
Statement), employees, members, partners, affiliates, agents and representatives, and each person, if any, who controls such person
within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act.

 

12.2         The
Company will indemnify, defend and hold harmless the Dealer Manager and the Selected Dealers, and their respective Indemnified
Parties, from and against any losses, claims, expenses (including reasonable legal and other expenses incurred in investigating
and defending such claims or liabilities), damages or liabilities, joint or several, to which any such Selected Dealers or the
Dealer Manager, or their respective Indemnified Parties, may become subject under the Securities Act, the Exchange Act or otherwise,
insofar as such losses, claims, expenses, damages or liabilities (or actions in respect thereof) arise out of or are based upon:  (a)
in whole or in part, any material inaccuracy in a representation or warranty contained herein by the Company, any material breach
of a covenant contained herein by the Company, or any material failure by the Company to perform its obligations hereunder or to
comply with state or federal securities laws applicable to the Offering; (b) any untrue statement or alleged untrue statement of
a material fact contained (i) in the Registration Statement or any post-effective amendment thereto or in the Prospectus or any
amendment or supplement to the Prospectus, (ii) in any Approved Sales Literature or (iii) in any Blue Sky Application based upon
written information furnished by the Company; or (c) the omission or alleged omission to state a material fact required to be stated
in the Registration Statement or any post-effective amendment thereof to make the statements therein not misleading or the omission
or alleged omission to state a material fact required to be stated in the Prospectus or any amendment or supplement to the Prospectus
to make the statements therein, in light of the circumstances under which they were made, not misleading. The Company will reimburse
each Selected Dealer or the Dealer Manager, and their respective Indemnified Parties, for any reasonable legal or other expenses
incurred by such Selected Dealer or the Dealer Manager, and their respective Indemnified Parties, in connection with investigating
or defending such loss, claim, expense, damage, liability or action; provided, however, that the Company will not be liable
in any such case to the extent that any such loss, claim, expense, damage or liability arises out of, or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission made in reliance upon and in conformity with written information
furnished to the Company by the Dealer Manager or Selected Dealer expressly for use in the Registration Statement or any post-effective
amendment thereof or the Prospectus or any such amendment thereof or supplement thereto. This indemnity agreement will be in addition
to any liability which the Company may otherwise have.

 

    	 	18	 

     

    

 

Notwithstanding the foregoing, as required
by the Company’s Charter, the indemnification and agreement to hold harmless provided in this Section 12.2 is further limited
to the extent that no such indemnification by the Company of a Selected Dealer or the Dealer Manager, or their respective Indemnified
Parties, shall be permitted under this Agreement for, or arising out of, an alleged violation of federal or state securities laws,
unless one or more of the following conditions are met:  (a) there has been a successful adjudication on the merits of
each count involving alleged securities law violations as to the particular Indemnified Party; (b) such claims have been dismissed
with prejudice on the merits by a court of competent jurisdiction as to the particular Indemnified Party; or (c) a court of competent
jurisdiction approves a settlement of the claims against the particular Indemnified Party and finds that indemnification of the
settlement and the related costs should be made, and the court considering the request for indemnification has been advised of
the position of the SEC and of the published position of any state securities regulatory authority in which the securities were
offered or sold as to indemnification for violations of securities laws.

 

12.3         The
Adviser will indemnify, defend and hold harmless the Dealer Manager and the Selected Dealers, and their respective Indemnified
Parties, from and against any losses, claims, expenses (including reasonable legal and other expenses incurred in investigating
and defending such claims or liabilities), damages or liabilities, joint or several, to which any such Selected Dealers or the
Dealer Manager, or their respective Indemnified Parties, may become subject under the Securities Act, the Exchange Act or otherwise,
insofar as such losses, claims, expenses, damages or liabilities (or actions in respect thereof) arise out of or are based upon
in whole or in part, (a) any material inaccuracy in a representation or warranty contained herein by the Adviser, (b) any material
breach of a covenant contained herein by the Adviser, or (c) any material failure by the Adviser to perform its obligations hereunder
or to comply with state or federal securities laws applicable to the Offering. The Adviser will reimburse each Selected Dealer
or the Dealer Manager, and their respective Indemnified Parties, for any reasonable legal or other expenses incurred by such Selected
Dealer or the Dealer Manager, and their respective Indemnified Parties, in connection with investigating or defending such loss,
claim, expense, damage, liability or action. This indemnity agreement will be in addition to any liability which the Adviser may
otherwise have.

 

    	 	19	 

     

    

 

Notwithstanding the foregoing, as required
by the Adviser’s certificate of formation or limited liability company agreement, the indemnification and agreement to hold
harmless provided in this Section 12.3 is further limited to the extent that no such indemnification by the Adviser of a Selected
Dealer or the Dealer Manager, or their respective Indemnified Parties, shall be permitted under this Agreement for, or arising
out of, an alleged violation of federal or state securities laws, unless one or more of the following conditions are met:  (a)
there has been a successful adjudication on the merits of each count involving alleged securities law violations as to the particular
Indemnified Party; (b) such claims have been dismissed with prejudice on the merits by a court of competent jurisdiction as to
the particular Indemnified Party; or (c) a court of competent jurisdiction approves a settlement of the claims against the particular
Indemnified Party and finds that indemnification of the settlement and the related costs should be made, and the court considering
the request for indemnification has been advised of the position of the SEC and of the published position of any state securities
regulatory authority in which the securities were offered or sold as to indemnification for violations of securities laws.

 

12.4         The
Dealer Manager will indemnify, defend and hold harmless the Company, the Adviser and each of their Indemnified Parties, from and
against any losses, claims, expenses (including the reasonable legal and other expenses incurred in investigating and defending
any such claims or liabilities), damages or liabilities to which any of the aforesaid parties may become subject under the Securities
Act, the Exchange Act or otherwise, insofar as such losses, claims, expenses, damages (or actions in respect thereof) arise out
of or are based upon:  (a) in whole or in part, any material inaccuracy in a representation or warranty contained herein
by the Dealer Manager or any material breach of a covenant contained herein by the Dealer Manager;  (b) any untrue statement
or any alleged untrue statement of a material fact contained (i) in the Registration Statement or any post-effective amendment
thereto or in the Prospectus or any amendment or supplement to the Prospectus, (ii) in any Approved Sales Literature, or (iii)
any Blue Sky Application; (c) the omission or alleged omission to state a material fact required to be stated in the Registration
Statement or any post-effective amendment thereof to make the statements therein not misleading, or the omission or alleged omission
to state a material fact required to be stated in the Prospectus or any amendment or supplement to the Prospectus to make the statements
therein, in light of the circumstances under which they were made, not misleading; provided, however, that in each case
described in clauses (b) and (c) to the extent, but only to the extent, that such untrue statement or omission was made in reliance
upon and in conformity with written information furnished to the Company by the Dealer Manager expressly for use in the Registration
Statement or any such post-effective amendments thereof or the Prospectus or any such amendment thereof or supplement thereto;
(d) any use of sales literature, including “Broker-Dealer/RIA use only” materials, with members of the public concerning
the Offered Shares by the Dealer Manager that is not Approved Sales Literature; (e) any material violation by the Dealer Manager
of this Agreement; (f) any failure by the Dealer Manager to comply with applicable laws governing AML and anti-terrorist financing
efforts, including FINRA rules, SEC rules and the PATRIOT Act; or (g) any other failure by the Dealer Manager to comply with SEC
or FINRA rules.  The Dealer Manager will reimburse the aforesaid parties for any reasonable legal or other expenses incurred
in connection with investigation or defense of such loss, claim, expense, damage, liability or action.  This indemnity
agreement will be in addition to any liability which the Dealer Manager may otherwise have.

 

    	 	20	 

     

    

 

12.5         By
virtue of entering into the Selected Dealer Agreement, each Selected Dealer severally will agree to indemnify, defend and hold
harmless the Company, the Adviser, the Dealer Manager, and each of their respective Indemnified Parties, from and against any losses,
claims, expenses, damages or liabilities to which the Company, the Adviser, the Dealer Manager or any of their respective Indemnified
Parties may become subject, under the Securities Act or otherwise, as more fully described in the Selected Dealer Agreement.

 

12.6         Promptly
after receipt by any Indemnified Party under this Section 12 of notice of the commencement of any action, such Indemnified Party
will, if a claim in respect thereof is to be made against any indemnifying party under this Section 12, promptly notify the indemnifying
party of the commencement thereof; provided, however, that the failure to give such notice shall not relieve the indemnifying party
of its obligations hereunder except to the extent it shall have been actually prejudiced by such failure. In case any such action
is brought against any Indemnified Party, and it notifies an indemnifying party of the commencement thereof, the indemnifying party
will be entitled, to the extent it may wish, jointly with any other indemnifying party similarly notified, to participate in the
defense thereof, with separate counsel.  Such participation shall not relieve such indemnifying party of the obligation
to reimburse the Indemnified Party for reasonable legal and other expenses incurred by such Indemnified Party in defending itself,
except for such expenses incurred after the indemnifying party has deposited funds sufficient to effect the settlement, with prejudice,
of, and unconditional release of all liabilities from, the claim in respect of which indemnity is sought.  Any such indemnifying
party shall not be liable to any such Indemnified Party on account of any settlement of any claim or action effected without the
consent of such indemnifying party, such consent not to be unreasonably withheld or delayed.

 

12.7         An
indemnifying party under Section 12 of this Agreement shall be obligated to reimburse an Indemnified Party for reasonable legal
and other expenses as follows:

 

(a)          In
the case of the Company indemnifying the Dealer Manager, the advancement of Company funds to the Dealer Manager for legal expenses
and other costs incurred as a result of any legal action for which indemnification is being sought shall be permissible only if
all of the following conditions are satisfied:  (i) the legal action relates to acts or omissions with respect to the
performance of duties or services on behalf of the Company; (ii) the legal action is initiated by a third party who is not a stockholder
of the Company or the legal action is initiated by a stockholder of the Company acting in his or her capacity as such and a court
of competent jurisdiction specifically approves such advancement; and (iii) the Dealer Manager undertakes to repay the advanced
funds to the Company, together with the applicable legal rate of interest thereon, in cases in which the Dealer Manager is found
not to be entitled to indemnification.

 

    	 	21	 

     

    

 

(b)          In
any case of indemnification other than that described in Section 12.7(a) above, the indemnifying party shall pay all legal fees
and expenses reasonably incurred by the Indemnified Party in the defense of such claims or actions; provided, however,
that the indemnifying party shall not be obligated to pay legal expenses and fees to more than one law firm in connection with
the defense of similar claims arising out of the same alleged acts or omissions giving rise to such claims notwithstanding that
such actions or claims are alleged or brought by one or more parties against more than one Indemnified Party.  If such
claims or actions are alleged or brought against more than one Indemnified Party, then the indemnifying party shall only be obliged
to reimburse the expenses and fees of the one law firm (in addition to local counsel) that has been participating by a majority
of the indemnified parties against which such action is finally brought; and if a majority of such indemnified parties is unable
to agree on which law firm for which expenses or fees will be reimbursable by the indemnifying party, then payment shall be made
to the first law firm of record representing an Indemnified Party against the action or claim.  Such law firm shall be
paid only to the extent of services performed by such law firm and no reimbursement shall be payable to such law firm on account
of legal services performed by another law firm.

 

12.8         The
indemnity agreements contained in this Section 12 shall remain operative and in full force and effect regardless of: (a) any investigation
made by or on behalf of any Selected Dealer, or any person controlling any Selected Dealer or by or on behalf of the Company, the
Adviser, the Dealer Manager or any officer or director thereof, or by or on behalf of the Company or the Dealer Manager; (b) the
delivery of any Offered Shares and payment therefor; and (c) any termination of this Agreement or any Selected Dealer Agreement.
A successor of any Selected Dealer or of any of the parties to this Agreement, as the case may be, shall be entitled to the benefits
of the indemnity agreements contained in this Section 12.

 

12.9         Notwithstanding
any other provision of this Section 12, no party shall be entitled to indemnification under this Agreement in violation of Section
17(i) of the Investment Company Act.

 

13.           Termination.

 

13.1         The
provisions of this Agreement relating to the Offering shall terminate as to the Company upon the completion of the Offering Period
or earlier termination of the Offering.

 

    	 	22	 

     

    

 

13.2         This
Agreement may be terminated by the Dealer Manager or by the Company by giving written notice by mail, cable or facsimile at least
30 calendar days in advance of the Dealer Manager’s or the Company’s intention to terminate; provided, however,
that any rights to receive Sales Commissions with respect to sales of Offered Shares made prior to such termination and any rights
to indemnification hereunder, and all representations, covenants and agreements contained in this Agreement which, by their terms,
expire or will need to be performed after the termination date of this Agreement (including, but not limited to, the suitability
record retention and disclosure covenants contained in Section 6 above), shall survive such termination.

 

13.3         Any
termination of this Agreement shall be subject to the survival of all provisions which by their nature are intended to survive
termination of this Agreement.

 

14.           Miscellaneous.

 

14.1         This
Agreement is being delivered in the State of New York and shall be construed and enforced in accordance with and governed by the
laws of such State without reference to its choice of law provisions.

 

14.2         Nothing
herein contained shall constitute a partnership, association or other separate entity or partners between or among the Dealer Manager,
and/or any Selected Dealer and the Company, or with each other, but the Dealer Manager shall be responsible for its share of any
liability or expense based upon any claim to the contrary. The Company shall not have any liability to the Dealer Manager, except
for obligations expressly assumed in this Agreement and any liabilities under the Securities Act and no other obligations on the
Company’s part shall be implied hereby or inferred herefrom.

 

 14.3         All
notices, consents, approvals, waivers or other communications required or permitted hereunder (each, a “Notice”)
shall be in writing and shall be (a) delivered personally or by commercial messenger, (b) sent by a recognized overnight courier
service; or (c) sent by facsimile transmission, provided confirmation of receipt is received by sender and such Notice is sent
or delivered contemporaneously by an additional method provided hereunder; in each case above provided such Notice is addressed
to the intended recipient thereof as set forth below:

 

	If to the Company:	CĪON Investment Corporation
	 	3 Park Avenue, 36th Floor
	 	New York, NY  10016
	 	Facsimile No.:
	 	Attention: Co- President and Co-Chief Executive Officer
	 	 
	 	With a copy to (which shall not constitute a Notice):
	 	 
	 	Dechert LLP
	 	1095 Avenue of the Americas
	 	New York, NY 10036

 

    	 	23	 

     

    

 

	 	Facsimile No.: 212-698-3599
	 	Attention:  Richard Horowitz, Esq.
	 	 
	If to the Adviser:	CĪON Investment Management, LLC
	 	3 Park Avenue, 36th Floor
	 	New York, NY  10016
	 	Facsimile No.:
	 	Attention: Co- President and Co-Chief Executive Officer
	 	 
	 	With a copy to (which shall not constitute a Notice):
	 	 
	 	Dechert LLP
	 	1095 Avenue of the Americas
	 	New York, NY  10036
	 	Facsimile No.: 212-698-3599
	 	Attention:  Richard Horowitz, Esq.
	 	 
	If to the Dealer Manager:	CĪON Securities, LLC
		d/b/a CION Investments
	 	3 Park Avenue, 36th Floor
	 	New York, NY  10016
	 	Facsimile No.:
	 	Attention: Chief Executive Officer
	 	 
	 	With a copy to (which shall not constitute a Notice):
	 	 
	 	Kutak Rock LLP
	 	1625 Eye Street, NW, Suite 800
	 	Washington, DC 20006
	 	Attention:  Deborah S. Froling, Esq.

 

Any party may change its address specified
about by giving each party Notice of such change in accordance with this Section 14.3.

 

14.4         Except
as set forth below, this Agreement shall be fully binding upon, inure to the benefit of, and be enforceable by, the parties hereto
and their respective successors and assigns.

 

(a)           The
Dealer Manager shall have the right to assign this Agreement to an affiliate without the consent of either the Company or the Adviser.

 

(b)           Other
than pursuant to Section 14.4(a) hereof, neither the Dealer Manager nor the Company shall assign (voluntarily, by operation of
law or otherwise) this Agreement or any right, interest or benefit under this Agreement without the prior written consent of the
Dealer Manager or the Company, as the case may be. The Adviser shall have no right to object to any such assignment.

 

    	 	24	 

     

    

 

14.5         The
invalidity or unenforceability of any provision of this Agreement shall not affect the other provisions hereof, and this Agreement
shall be construed in all respects as if such invalid or unenforceable provisions were omitted.

 

14.6         The
failure of any party to insist upon or enforce strict performance by any other party of any provision of this Agreement or to exercise
any right under this Agreement shall not be construed as a waiver or relinquishment to any extent of such party’s right to
assert or rely upon any such provision or right in that or any other instance; rather, such provision or right shall be and remain
in full force and effect.

 

14.7         This
Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument comprising this Agreement.

 

14.8         This
Agreement contains the entire agreement and understanding among the parties hereto with respect to the subject matter hereof, and
supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written,
of any nature whatsoever with respect to the subject matter hereof. The express terms hereof control and supersede any course of
performance and/or usage of the trade inconsistent with any of the terms hereof. This Agreement may not be modified or amended
other than by an agreement in writing.

 

14.9         In
connection with the Dealer Manager’s engagement hereunder, the Company shall make available to the Dealer Manager any information
concerning the Offering as the Dealer Manager reasonably requests. The Company shall use commercially reasonable efforts to assure
the accuracy and completeness of all of such information at the time it is furnished to the Dealer Manager.

 

14.10       The
Company may authorize any transfer agent to provide information to a Selected Dealer regarding recordholder information about the
clients of such Selected Dealer who have invested with the Company on an ongoing basis for so long as such Selected Dealer has
a relationship with such client. The Dealer Manager shall require that Selected Dealers not disclose any password for a restricted
website or portion of website provided to such Selected Dealer in connection with the Offering and not disclose to any person,
other than an officer, director, employee or agent of such Selected Dealer with a need to know, any material downloaded from such
a restricted website or portion of a restricted website.

 

    	 	25	 

     

    

 

Please acknowledge acceptance of the terms hereof by signing
the two enclosed copies of this Agreement and returning the same to the Company, whereupon this Agreement and Dealer Manager’s
acceptance hereof shall constitute a binding agreement between the Company and the Dealer Manager as of the date first above written.
The Company will then supply to Dealer Manager for its files one of such copies signed by the Company and the Dealer Manager.

 

	 	Company
	 	 
	 	CĪON Investment Corporation
	 	 	 
	 	By:	/s/ Michael A. Reisner
	 	 	 
	 	 	Name: Michael A. Reisner
	 	 	 
	 	 	Title: Co-President and Co-CEO
	 	 
	 	Adviser:
	 	 
	 	CĪON Investment Management, LLC
	 	 	 
	 	By:	/s/ Michael A. Reisner
	 	 	 
	 	 	Name: Michael A. Reisner
	 	 	 
	 	 	Title: Co-President and Co-CEO
	 	 
	 	Dealer Manager:
	 	 
	 	CĪON Securities, LLC
	 	 	 
	 	By:	/s/ Douglas Crossman  
	 	 	 
	 	 	Name: Douglas Crossman
	 	 	 
	 	 	Title: Senior Managing Director

 

    	 	26

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00265-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00265-of-00352.parquet"}]]