Document:

CNL Strategic Capital, LLC S-1

Exhibit 10.4

 

 

AMENDED AND RESTATED

 

ADMINISTRATIVE SERVICES AGREEMENT

 

 

 

      

     

    

      

TABLE OF CONTENTS

 

Page

 

	1.	Duties of the Administrator	1
	2.	Confidentiality	3
	3.	Appointment of Sub-Administrator; Sub-Administrator Expenses	4
	4.	Approved Budget	5
	5.	No Fee; Reimbursement of Expenses; Limitations on Reimbursement of Expenses	5
	6.	Limitation of Liability of the Administrator; Indemnification	6
	7.	Activities of the Administrator	7
	8.	Duration and Termination of this Agreement	7
	9.	Notices	9
	10.	Amendments	9
	11.	Severability	9
	12.	Counterparts	10
	13.	Entire Agreement; Governing Law	10
	14.	Waivers	10
	15.	Third Party Beneficiaries	10
	16.	Survival	10
	17.	Gender	11
	18.	Titles not to Affect Interpretation	11
	19.	Representations, Warranties and Covenants of the Administrator	11
	20.	Non-Solicitation	11

 

    i

     

    

 

THIS AMENDED AND RESTATED
ADMINISTRATIVE SERVICES AGREEMENT (the “Agreement”) made as of the 7th day of February, 2018, effective as of
the date provided for herein, by and between CNL STRATEGIC CAPITAL, LLC, a Delaware limited liability company (the “Company”),
and CNL STRATEGIC CAPITAL MANAGEMENT, LLC, a Delaware limited liability company (the “Administrator”).

 

W I T N E S S E T H:

 

WHEREAS, the Company
is a newly organized Delaware limited liability company and intends to acquire assets permitted by the terms of its limited liability
company agreement (the “LLC Agreement”) and in accordance with the business strategies, policies and restrictions
that are (a) set forth in the Company’s Confidential Offering Memorandum dated June 30, 2017, as amended and/or supplemented from
time to time (the “Offering Memorandum”), (b) set forth in the Company’s Registration Statement on Form
S-1 (the “Registration Statement”) to be filed with the U.S. Securities and Exchange Commission, as amended
from time to time, and (c) otherwise approved or implemented by the Board (as hereinafter defined);

 

WHEREAS, the Company
desires to retain the Administrator to provide administrative services to the Company in the manner and on the terms and conditions
hereinafter set forth, on behalf of, and subject to the supervision of the Board, all as provided herein; and

 

WHEREAS, the Company
and the Administrator have previously entered into an Administrative Services Agreement dated as of June 30, 2017, and the parties
now wish to amend and restate such Administrative Services Agreement in its entirety by entering into this Agreement; and

 

WHEREAS, the Administrator
is willing to undertake to render such services, subject to the supervision of the Board, on the terms and conditions hereinafter
set forth.

 

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

 

1.             Duties of the Administrator

 

(a)           Retention of Administrator. The Company hereby engages and retains the Administrator to furnish, or arrange for others
to furnish, the administrative services, personnel and facilities described below for the period and on the terms and conditions
set forth in this Agreement. The Administrator hereby accepts such engagement and retention and agrees during such period to render,
or arrange for the rendering of, such services and to assume the obligations herein set forth, subject to the reimbursement of
costs and expenses provided for below.

 

The Administrator shall
be subject to review and oversight by the Board of Directors of the Company (the “Board”) to assure that the administrative
procedures, operations and programs of the Company are in the best interests of the Company’s shareholders and that the expenses
incurred are reasonable in light of the business objectives of the Company, for the period and upon the terms herein set forth:

 

(i)            in accordance with all other applicable federal and state laws, rules and regulations, and the Company’s certificate of
formation and LLC Agreement, in each case as amended from time to time; and

 

    

     

    

 

(ii)           such business policies, directives, regulatory restrictions as the Company may from time to time establish or issue and
communicate to the Administrator in writing.

 

(b)           Services. The Administrator shall perform (or oversee, or arrange for, the performance of) the administrative services
necessary for the operation of the Company. Without limiting the generality of the foregoing, the Administrator shall:

 

(i)            Provide administrative services to the Company, including but not limited to all services provided for in the Approved Budget
(as defined in Section 4 hereof);

 

(ii)           provide the Company with office facilities and equipment, and provide clerical, bookkeeping, general ledger accounting,
fund accounting and recordkeeping services, legal services, investor services and shall provide all such other services, except
investment advisory services, as the Administrator, subject to review by the Board, shall from time to time determine to be necessary
or useful to perform its obligations under this Agreement;

 

(iii)          on behalf of the Company, enter into agreements and/or conduct relations with custodians, depositories, transfer agents,
distribution disbursing agents, the dividend reinvestment plan administrator, shareholder servicing agents, accountants, auditors,
tax consultants, advisers and experts, investment advisers, compliance officers, escrow agents, attorneys, underwriters, managing
dealer, brokers and dealers, investor custody and share transaction clearing platforms, marketing, sales and advertising materials
contractors, public relations firms, investor communication agents, printers, insurers, banks, independent valuers, and such other
persons in any such other capacity deemed to be necessary or desirable by the Administrator and the Company;

 

(iv)         
furnish advice and recommendations with respect to such other aspects of the business and affairs of the Company as the
Administrator reasonably shall determine to be desirable; provided that nothing herein shall be construed to require the Administrator
to, and the Administrator shall not pursuant to this Agreement, provide any advice or recommendation relating to the assets that
the Company should acquire or dispose of or any other investment advisory services to the Company;

 

(v)           assist
the Company in the preparation of the financial and other records that the Company will maintain and the preparation, printing
and dissemination of reports that the Company will furnish to shareholders, and, if any, reports and other materials filed with
the Securities and Exchange Commission (the “SEC”), and states and jurisdictions where any offering of the Company’s
shares is registered and there is a duty to file information with one or more states on an ongoing basis;

 

(vi)         
advise and assist the Company, if applicable, with respect to Sarbanes-Oxley Act of 2002 compliance for the Company and
its respective subsidiaries;

 

    2

     

    

 

(vii)        
assist the Company in determining and publishing the Company’s net asset value, oversee and administer programs for investor
relations and communications, the preparation and filing of the Company’s tax forms and any necessary regulatory filings, and generally
oversee and monitor the payment of the Company’s expenses and ensure that costs and expenses are within any applicable limitations
set forth in the LLC Agreement;

 

(viii)       
from time to time, or at any time reasonably requested by the Board, make reports to the Board regarding (A) the Administrator’s
performance of services to the Company under the terms of this Agreement, and (B) the Sub-Administrator’s (defined below)
performance of services under the Sub-Administration Agreement (defined below);

 

(ix)          
manage marketing communications; and

 

(x)           
oversee the performance of sub-administrative and other professional services rendered to the Company by others.

 

(c)           Power and Authority. To facilitate the Administrator’s performance of these undertakings, but subject to the restrictions
contained herein, the Company and its subsidiaries hereby delegate to the Administrator, and the Administrator hereby accepts,
the power and authority on behalf of the Company and its subsidiaries to effectuate its decisions relating to the administration
of the Company. The Board may, at any time upon the giving of notice to the Administrator, modify or revoke the authority set forth
in this Section 1(c).

 

(d)           Acceptance of Appointment. The Administrator hereby accepts such appointment and agrees during the term hereof to
render the services described herein for the consideration provided herein, subject to the limitations contained herein.

 

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

 

(f)            Record Retention. Subject to review by and the overall control of the Board, the Administrator shall at all times
have access to and maintain all books and records that relate to activities performed by the Administrator hereunder, and shall
make such records available for inspection by the Board and its authorized agents, at any time and from time to time during normal
business hours. The Administrator agrees that all records that it maintains for the Company are the property of the Company and
shall surrender promptly to the Company any such records upon the Company’s request and upon termination of this Agreement pursuant
to Section 8; provided that the Administrator may retain a copy of such records, subject to observance of its confidentiality
obligations under this Agreement.

 

    3

     

    

 

		2.	Confidentiality.

 

The parties hereto
agree that each shall treat confidentially all information provided by each party to the other regarding its business and operations.
All confidential information provided by a party hereto, including all “nonpublic personal information,” as defined under
the Gramm-Leach-Bliley Act of 1999 (Public law 106-102, 113 Stat. 1138), shall be used by the other party hereto solely for the
purpose of rendering services pursuant to this Agreement and, except as may be required in carrying out this Agreement, shall not
be disclosed to any third party, without the prior consent of such providing party, except that such confidential information may
be disclosed to an affiliate or agent of the disclosing party to be used for the sole purpose of providing the services set forth
herein. The foregoing shall not be applicable to any information that is publicly available when provided or thereafter becomes
publicly available other than through a breach of this Agreement, or that is required to be disclosed to any regulatory authority,
by judicial or administrative process or otherwise by applicable law or regulation.

 

		3.	Appointment of Sub-Administrator; Sub-Administrator
Expenses.

 

(a)            
 The Administrator is hereby authorized to enter into one or more sub-administration or similar agreements (each a “Sub-Administration
Agreement”) with Levine Leichtman Capital Partners, Inc. or one of its affiliates (collectively, “LLCP”)
and other administrators with expertise in the types of administration the Company requires (each, a “Sub-Administrator”)
pursuant to which the Administrator may delegate and obtain the services of the Sub-Administrator(s) to assist the Administrator
in fulfilling its responsibilities hereunder.

 

(i)            
The Administrator shall monitor any Sub-Administrator to ensure that material information discussed by management of any
such Sub-Administrator is communicated to the Board, as appropriate.

 

(ii)           
Except as provided in Section 3(a)(iii) below with respect to LLCP, the Administrator shall be responsible for any reimbursements
payable to any Sub-Administrator, provided, however, the Administrator may reasonably request the Company pay a Sub-Administrator
directly.

 

(iii)           The Company shall be responsible for the payment of any reimbursements payable to LLCP under a Sub-Administration Agreement
directly.

 

(iv)           Any
Sub-Administrator shall be subject to the same fiduciary duties imposed on the Administrator pursuant to this Agreement and other
applicable federal and state law.

 

(b)           
The Company, either directly or through reimbursement to the Administrator, shall bear all third-party costs and expenses
for the administration of the Company’s business, including such costs and expenses incurred by a Sub-Administrator. Except
as provided in Section 3(a)(iii) with respect to LLCP, the Company shall reimburse the Administrator monthly for all third-party
out-of-pocket costs and expenses, which have been paid by the Administrator for reimbursement to any Sub-Administrator pursuant
to a Sub-Administration Agreement, on behalf of the Company, on the terms and conditions set forth in this Agreement.

 

    4

     

    

 

		4.	Approved Budget.

 

The Administrator shall
use commercially reasonable efforts to prepare, prior to each fiscal year end of the Company, an estimated budget (as may be amended
and approved by the Board from time to time, the “Approved Budget”) that includes anticipated third-party costs
and expenses related to the services to be provided by the Administrator hereunder and any Sub-Administrator pursuant to a Sub-Administration
Agreement in such form and substance as shall be requested and approved by the Board.  The Company acknowledges that this
estimated budget is for reporting purposes only and, subject to the limitations below, it shall remain obligated to reimburse the
Administrator for any third-party costs and expenses, including costs and expenses incurred by a Sub-Administrator for the benefit
of the Company, which may exceed the initial or any amended Approved Budget. The Administrator shall obtain approval from the Board
prior to incurring any material expense not otherwise specified in the Approved Budget. For purposes of this section, “material
expense” shall mean any expense which individually or as a series of related expenses, exceeds $250,000 or 5%, whichever is
greater, of the Approved Budget.

 

The Administrator acknowledges
that, in connection with an offering of the shares of any class of limited liability interest of the Company pursuant to a Qualified
Public Offering (as defined in the amended and restated management agreement between the Company and CNL Strategic Capital Management,
LLC dated of even date herewith (the “Management Agreement”)), it shall be responsible to ensure that (i) any
reimbursement to the Company’s external manager and/or sub-manager, or any other person for deferred Organization and Offering
Expenses, including any interest thereon, if any, shall not exceed the 18% limitation on Front End Fees (as defined in the Management
Agreement) regardless of the source of payment, and (ii) the percentage of gross proceeds of any offering committed to investment
shall be at least eighty-two percent (82%).

 

		5.	No Fee; Reimbursement of Expenses; Limitations on
Reimbursement of Expenses.

 

In full consideration
for the provision of the services provided by the Administrator pursuant to Section 1(b) of this Agreement, the parties acknowledge
that there shall be no separate fee paid in connection with the services provided. As consideration for the provision of the Services
under this Agreement, the Company may pay third-parties directly or reimburse the Administrator the costs and expenses of third
parties for services provided to the Company. The Administrator shall not be reimbursed for administrative services performed by
it for the benefit of the Company.

 

Such reimbursement
shall be made in cash within thirty (30) calendar days following the Manager’s delivery to the Company of the Reimbursement
Statement (as defined in the Management Agreement) therefor.

 

    5

     

    

 

		6.	Limitation of Liability of the Administrator; Indemnification.

 

(a)           Indemnification. The Administrator and any Sub-Administrator (and their respective officers, managers, partners,
members, agents, employees, controlling persons, shareholders and any other person or entity affiliated with the Administrator
or Sub- Administrator) shall not be liable to the Company or any of its subsidiaries, to the Board, or the Company’s or any subsidiary’s
members, stockholders or partners for any action taken or omitted to be taken by the Administrator or Sub-Administrator in connection
with the performance of any of its duties or obligations under this Agreement or otherwise as an administrator of the Company,
concerning loss resulting from a breach of fiduciary duty (as the same is finally determined by judicial proceedings) with respect
to the receipt of compensation for services and for reimbursement for goods and services, and the Company and its subsidiaries
shall indemnify, defend and protect the Administrator and any Sub-Administrator (and their respective officers, managers, partners,
members, agents, employees, controlling persons and any other person or entity affiliated with the Administrator or Sub-Administrator,
each of whom shall be deemed a third party beneficiary hereof) (collectively, the “Indemnified Parties”) and hold
them harmless from and against all damages, liabilities, costs and expenses (including reasonable attorneys’ fees and amounts reasonably
paid in settlement) incurred by the Indemnified Parties in or by reason of any pending, threatened or completed action, suit, investigation
or other proceeding (including an action or suit by or in the right of the Company or its security holders) arising out of or otherwise
based upon the performance of any of the Administrator’s or Sub-Administrator’s duties or obligations under this Agreement or otherwise
as an administrator of the Company. Notwithstanding the preceding sentence of this paragraph to the contrary, nothing contained
herein shall protect or be deemed to protect the Indemnified Parties against or entitle or be deemed to entitle the Indemnified
Parties to indemnification in respect of, any liability to the Company or any of its subsidiaries, to the Board, or the Company’s
or any subsidiary’s members, stockholders or partners to which the Indemnified Parties would otherwise be subject by reason of
negligence or misconduct in the performance of the Administrator’s or Sub-Administrator’s duties or by reason of the reckless disregard
of the Administrator’s duties and obligations under this Agreement.

 

(b)          The Administrator shall indemnify the Company (and its officers, managers, partners, members, agents employees, controlling
persons and any other person or entity affiliated with the Company) for any losses that the Company (and its officers, managers,
partners, members, agents, employees, controlling persons and any other person or entity affiliated with the Company) may sustain
primarily as a result of the Administrator’s willful misfeasance, bad faith, gross negligence or reckless disregard of its duties
hereunder or violation of applicable law, including without limitation, the federal and state securities laws.

 

(c)           Advancement of Funds. The Company shall be permitted to advance funds to the Indemnified Party for legal expenses
and other costs incurred as a result of any legal action for which indemnification is being sought only if all of the following
conditions are met:

 

(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 Indemnified Party undertakes to repay the advanced funds to the Company, together with the applicable legal rate of
interest thereon, in cases in which the Indemnified Party is not found to be entitled to indemnification; and

 

The legal action was
initiated by a third party who is not the holder of an ownership interest in the Company, or if the legal action was not initiated
by such a holder, a court of competent jurisdiction approves such advancement.

 

    6

     

    

 

		7.	Activities of the Administrator.

 

The services provided
by the Administrator to the Company are not exclusive, and the Administrator may engage in any other business or render similar
or different services to others, so long as its services to the Company hereunder are not impaired thereby and nothing in this
Agreement shall limit or restrict the right of any officer, director, shareholder (and their shareholders or members, including
the owners of their shareholders or members), officer or employee of the Administrator to engage in any other business or to devote
his or her time and attention in part to any other business, whether of a similar or dissimilar nature, or to receive any fees
or compensation in connection therewith. The Administrator assumes no responsibility under this Agreement other than to render
the services set forth herein. It is understood that directors, officers, employees and members of the Company are or may become
interested in the Administrator and its affiliates, as directors, officers, employees, partners, members, managers or otherwise,
and that the Administrator and its directors, officers, employees, partners, stockholders, members and managers, and the Administrator’s
affiliates are or may become similarly interested in the Company and/or its subsidiaries as members or otherwise.

 

		8.	Duration and Termination of this Agreement

 

(a)           Term and Effectiveness. This Agreement shall become effective as of the earlier of (i) date that the Company has
its initial closing, as such term is defined in the Offering Memorandum and (ii) the date that the Company meets the minimum offering
requirement as such term is defined in the Registration Statement, and shall remain in effect for one year (the “Initial
Term”), and thereafter shall continue automatically for successive annual periods (a “Renewal Term”);
provided that such continuance is specifically approved at least annually by the vote of a majority of the Company’s independent
directors. This Agreement shall automatically terminate upon termination of the Management Agreement.

 

(b)           Termination. This Agreement may be terminated at any time, without the payment of any penalty (i) immediately
by the Company for Cause (as defined below) or (ii) by either party upon 120 days written notice; provided that
termination by the Company will require a vote of the Board. This Agreement shall not be assigned by the Administrator without
the consent of the Company, which consent shall be approved by a majority of the Company’s independent directors; provided that
(a) the Administrator may assign any rights to receive payments under this Agreement without obtaining the approval of the
Company, and (b) the Administrator may assign or delegate any or all of its other rights or obligations to any subsidiary
of the Administrator or any affiliate of CNL Financial Group, LLC, without obtaining the approval of the Company. This Agreement
shall not be assigned by the Company without the prior written consent of the Administrator except in the case of assignment by
the Company to an organization which is a successor (by merger, consolidation, purchase of assets, or similar transaction) to
the Company, in which case such successor organization shall be bound under this Agreement and by the terms of such assignment
in the same manner as the Company is bound under this Agreement. The provisions of Section 6 of this Agreement shall remain
in full force and effect, and the Administrator shall remain entitled to the benefits thereof, notwithstanding any termination
of this Agreement.

 

    7

     

    

 

With respect to the termination
of this Agreement, “Cause” is defined as (a) ) any fraud, Criminal Conduct, willful misconduct, willful
breach of fiduciary duty by the Administrator as determined by a court of competent jurisdiction to the extent that the Board has
determined that such conduct has materially and adversely effected the Company, (B) a material breach of this Agreement of any
nature whatsoever by the Administrator, which breach is not cured within ninety (90) days of written notice given to the Administrator
specifying in reasonable detail the nature of the alleged breach or (C) the Administrator assigns this Agreement or a Administrator
Change of Control Event occurs and such assignment or Administrator Change of Control Event, as applicable, does not constitute
a Permitted Administrator Assignment.

 

With respect to the termination
of this Agreement, “Criminal Conduct” includes a misappropriation of funds committed by the Administrator or
an affiliate thereof with respect to the Company or if a member of the senior management team of the Administrator whose services
are material to the Company has been convicted or entered a plea of guilt or nolo contendere of any felony or a violation
of any Federal or State securities laws.

 

For purposes of this Agreement, “Permitted
Administrator Assignment” means the assignment of this Agreement by the Administrator or the occurrence of a Administrator
Change of Control Event, in each case after obtaining the consent of the Company, which consent shall be approved by a majority
of the Company’s independent directors.

 

For purposes of this
Agreement, “Administrator Change of Control Event” means  (i) a sale, merger, equity issuance or similar
transaction, whether directly or indirectly, involving the Administrator or its equity holders in which the indirect and direct
equity holders of the Administrator immediately prior to such transaction would own, in the aggregate, less than 50% of the total
combined voting power of all classes of capital stock of the surviving entity normally entitled to vote for the election of directors
or managers of the surviving entity, or (ii) the sale by the Administrator of all or substantially all of the Administrator’s
assets in one transaction or in a series of related transactions, or (iii) any transaction or combination of transactions as a
result of which the person(s) in control of the Administrator, whether directly or indirectly, as of the date of this Agreement
cease to be in control of the Administrator; provided, however, (a) an Administrator Change of Control Event shall not be deemed
to have occurred, if such transaction involves a sale, transfer or similar transaction from any direct or indirect equity holder(s)
of the Administrator as of the date of this Agreement to another direct or indirect equity holder(s) of the Administrator as of
the date of this Agreement, or (b) as a result of a change in the executive officers of the Manager.

 

		(c)	Payments to and Duties of Administrator upon Termination.

 

(i)            After the termination of this Agreement, the Administrator shall not be entitled to compensation for further services provided
hereunder, except that it shall be entitled to receive from the Company within 90 days after the effective date of such termination
all unpaid third-party reimbursements payable to the Administrator prior to termination of this Agreement.

 

(ii)          
The Administrator shall promptly upon termination:

 

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

 

(B)         Deliver
to the Board all assets and documents of the Company then in custody of the Administrator; and

 

    8

     

    

 

(C)          
Cooperate with the Company’s reasonable request to provide an orderly administration transition.

 

		9.	Notices.

 

(a)           All notices, requests, claims, demands and other communications hereunder which relate to this Agreement shall be in writing
and shall deemed to be delivered, (i) upon delivery in person, (ii) one day after deposit with Federal Express or similar overnight
courier service, (iii) three (3) days after being mailed by registered or certified mail (postage prepaid, return receipt requested),
or (iv) one day after sending an e-mail provided such e-mail is followed by deposit with Federal Express or similar overnight courier
no later than the following day.

 

(b)           Unless
otherwise notified in writing, all notices, request, claims, demands and other communications shall be given to the respective
parties at the following addresses or at such other address for a party as shall be specified in a notice given in accordance
with this Section 9:           

 

	To the Board
and to the Company:	 	CNL Strategic Capital, LLC

                           CNL
Center at City Commons

450 South Orange Avenue

Orlando, Florida 32801

Attn: General Counsel

                           Email: holly.greer@cnl.com; dwolmer@llcp.com

	 	 	 
	To
the Administrator:	 	CNL Strategic Capital Management, LLC

        CNL Center at City Commons

450 South Orange Avenue

Orlando, Florida 32801

Attn: Chief Financial Officer and General Counsel

        Email: tammy.tipton@cnl.com;

        holly.greer@cnl.com

          

		10.	Amendments.

 

This Agreement shall
not be amended, changed, modified or discharged, in whole or in part, except by an instrument in writing signed by the parties
hereto, or their respective successors or permitted assignees. The Company acknowledges that the Company and the Administrator
have agreed pursuant to the terms of a Sub-Administration Agreement with an affiliate of LLCP to not amend, modify or waive, in
whole or in part, this Agreement without the prior written consent of LLCP.

 

		11.	Severability.

 

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

 

    9

     

    

 

		12.	Counterparts.

 

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

 

		13.	Entire Agreement; Governing Law.

 

This Agreement contains
the entire agreement of the parties and supersedes all prior agreements, understandings and arrangements with respect to the subject
matter hereof. Notwithstanding the place where this Agreement may be executed by any of the parties hereto, this Agreement shall
be construed in accordance with the laws of the State of Delaware, and any action brought to enforce the agreements made hereunder
or any action which arises out of the relationship created hereunder shall be brought exclusively in the federal or state courts
for New York County, New York. Each party hereby irrevocably waives its rights to trial by jury in any action or proceeding arising
out of this Agreement or the transactions relating to its subject matter.

 

		14.	Waivers.

 

Neither the failure
nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a
waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further
exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege
with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence.
No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.

 

		15.	Third Party Beneficiaries.

 

Except for any Sub-Administrator
(with respect to Sections 3, 5, 6 and 10), LLCP (with respect to Sections 3, 5, 6 and 10) and any Indemnified Party, such
Sub-Administrator and Indemnified Party, each being an intended beneficiary of this Agreement, this Agreement is for the sole benefit
of the parties hereto and their permitted assigns and nothing herein shall give or be construed to give any person, other than
the parties hereto and such assigns, any legal or equitable rights hereunder.

 

		16.	Survival.

 

The provisions of Sections
5, 6, 8, 13, 14 20 and this Section 16 shall survive the termination of this Agreement.

 

		17.	Gender.

 

Words used herein regardless
of the number and gender specifically used, shall be deemed and construed to include any other number, singular or plural, and
any other gender, masculine, feminine or neuter, as the context requires.

 

    10

     

    

 

		18.	Titles not to Affect Interpretation.

 

The titles of paragraphs
and subparagraphs contained in this Agreement are for convenience only, and they neither form a part of this Agreement nor are
they to be used in the construction or interpretation hereof.

 

		19.	Representations, Warranties and Covenants of the
Administrator.

 

The Administrator represents,
warrants and covenants to the Company as follows:

 

(a)           The Administrator is a limited liability company duly organized and validly existing under the laws of the State of Delaware
with the power to own and possess its assets and carry on its business as the business is now being conducted.

 

(b)           The execution, delivery and performance by the Administrator of this Agreement is within the Administrator’s powers
and has been duly authorized by all necessary actions on the part of the Administrator and its members and managers and no action
by or in respect of, or filing with, any governmental body, agency or official is required on the part of the Administrator for
the execution, delivery or performance of this Agreement by the Administrator. The execution, delivery and performance of this
Agreement by the Administrator does not violate, contravene or constitute a default under (i) any provision of any applicable
law, rule or regulation, (ii) the Administrator’s limited liability company operating agreement or certificate of formation,
or (iii) any agreement, judgment, injunction, order, decree or other instruments binding upon the Administrator or any of
the Administrator’s property.

 

(c)           The Administrator has met, in all material respects, and will continue to meet, in all material respects, for the duration
of this Agreement, any applicable federal or state requirements, or the applicable requirements of any regulatory or industry self-regulatory
agency, necessary to be met by the Administrator in order for the Administrator to perform the services contemplated by this Agreement.

 

(d)           The Administrator will carry out its responsibilities under this Agreement in compliance in all material respects with (i) any
applicable federal or state laws, rules or regulations, including securities laws, rules and regulations, (ii) the Company’s
guidelines, policies and limitations as may be set by the Board from time to time and (iii) such other policies or directives
as the Board may from time to time establish or issue and that the Company communicates to the Administrator in writing, provided
that the Company will promptly notify the Administrator in writing of changes to the matters identified in (ii) or (iii) above.

 

    11

     

    

 

		20.	Non-Solicitation.

 

During the period commencing
on the date hereof and ending one year following the termination of this Agreement, the Company shall not, without the Administrator’s
prior written consent, directly or indirectly, (a) solicit or encourage any person to leave the employment or other service
of the Administrator, or (b) hire, on behalf of the Company or any other person or entity, any person who has left the employment
of the Administrator within the one year period following the termination of that person’s employment with respect to the
Administrator. During the period commencing on the date hereof through and ending one year following the termination of this Agreement,
the Company will not, whether for its own account or for the account of any other person, firm, corporation, or other business
organization, intentionally interfere with the relationship of the Administrator with, or endeavor to entice away from the Administrator,
any person who during the term of the Agreement is, or during the preceding one-year period, was a partner, joint venturer or client
of the Administrator.

 

[Remainder of page intentionally left
blank.]

 

    12

     

    

 

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

 

	 	CNL STRATEGIC CAPITAL, LLC
	 	 	 
	 	By:	/s/ Chirag J. Bhavsar
	 	 	Name: Chirag J. Bhavsar
	 	 	Title:   Chief Executive Officer

 

	 	CNL STRATEGIC CAPITAL MANAGEMENT, LLC
	 	 	 
	 	By:	/s/ Tammy J. Tipton
	 	 	Name: Tammy J. Tipton
	 	 	Title:   Chief Financial Officer

 

[Signature
Page to Administrative Services Agreement]CNL Strategic Capital, LLC S-1

Exhibit 10.5

 

Dated as of February 7, 2018

 

CNL STRATEGIC
CAPITAL MANAGEMENT, LLC

 

and

 

LEVINE LEICHTMAN
Strategic Capital, llc

 

 

 

AMENDED
AND RESTATED 

 

SUB-ADMINISTRATION AGREEMENT

 

 

   

    	

    

    

 

TABLE OF CONTENTS

 

	 	 	Page
	1.	Duties of the Sub-Administrator	1
	2.	Confidentiality	3
	3.	Limitations on Activities	3
	4.	Approved Budget	4
	5.	No Fee; Reimbursement of Expenses; Limitations on Reimbursement of Expenses	4
	6.	Instructions
and Advice	4
	7.	Relationship of Sub-Administrator, Administrator and Company	5
	8.	Third Party Beneficiaries	5
	9.	Indemnification	5
	10.	Activities of the Sub-Administrator	6
	11.	Duration
and Termination of Agreement	7
	12.	Notices	7
	13.	Amendment	8
	14.	Severability	8
	15.	Counterparts	8
	16.	Entire Agreement; Governing Law	8
	17.	Waivers	8
	18.	Survival	9
	19.	Gender	9
	20.	Titles
not to Affect Interpretation	9
	21.	Representations, Warranties and Covenants of the Sub-Administrator	9
	22.	Representations, Warranties and Covenants of the Administrator	10
	23.	Construction	11

  

    	

    

    

 

THIS AMENDED AND RESTATED
SUB-ADMINISTRATION AGREEMENT (this “Agreement”), is entered into as of the 7th day of February 2018, effective
as of the date provided for herein, by and among CNL STRATEGIC CAPITAL MANAGEMENT, LLC, a Delaware limited liability company (the
“Administrator”), LEVINE LEICHTMAN STRATEGIC CAPITAL, LLC, a Delaware limited liability company (the “Sub-Administrator”)
and CNL Strategic Capital, LLC, a newly organized Delaware limited liability company (the “Company”).

 

RECITALS

 

WHEREAS, the Company intends
to acquire assets permitted by the terms of its limited liability company agreement (the “LLC Agreement”) and
in accordance with the business strategies, policies and restrictions that are (a) set forth in the Company’s Confidential
Offering Memorandum dated June 30, 2017, as amended and/or supplemented from time to time (the “Offering Memorandum”),
(b) set forth in the Company’s Registration Statement on Form S-1 ( (the “Registration Statement”) to
be filed with the U.S. Securities and Exchange Commission, as amended from time to time, and (c) as otherwise approved or implemented
by the Board (as hereinafter defined);

 

WHEREAS, the Administrator
entered into an Administrative Services Agreement with the Company, dated as of even date herewith (together with any amendments
thereto and/or any successor agreement, the “Administrative Services Agreement”) to provide various services
for the Company and its subsidiaries as set forth therein;

 

WHEREAS, the Administrative
Services Agreement permits the Administrator, subject to the terms and conditions thereof and the supervision and the direction
of the Company’s board of directors (the “Board”), to delegate certain of its duties thereunder to other
administrators;

 

WHEREAS, the Company
and the Sub-Administrator have previously entered into a Sub-Administration Agreement dated as of June 30, 2017, and the parties
now wish to amend and restate such Sub-Administration Agreement in its entirety by entering into this Agreement;

 

WHEREAS, the Company
and the Administrator wishes to enter into this Agreement with the Sub-Administrator to secure assistance of the Sub-Administrator
in performing certain of the Administrator’s duties under the Administrative Services Agreement; and

 

WHEREAS, the Sub-Administrator
is willing to undertake to render such services to the Administrator and the Company on the terms and conditions hereinafter set
forth.

 

NOW, THEREFORE, in
consideration of the foregoing and of the mutual covenants and agreements contained herein, the parties hereto agree as follows:

 

1.           Duties
of the Sub-Administrator.

 

(a)          Retention
of Sub-Administrator. The Administrator hereby retains the Sub-Administrator to assist the Company and the Administrator in
connection with the performance of the Administrator’s duties under the Administrative Services Agreement on the terms and
conditions and for the period set forth in this Agreement.

 

    	

    

    

 

(b)          The
Sub-Administrator shall be subject to review and oversight by the Administrator to assure that the administrative procedures, operations
and programs of the Company are in the best interests of the Company’s shareholders and that the expenses incurred are reasonable
in light of the business objectives of the Company, for the period and upon the terms herein set forth and as follows:

 

(i)        the
business strategies, policies and restrictions that (x) are set forth in the Offering Memorandum and (y) are contemplated by the
Registration Statement;

 

(ii)       all
applicable federal and state laws, rules and regulations, and the Company’s certificate of formation and limited liability
company agreement, in each case as may be amended from time to time; and

 

(iii)      such
business policies and directives as the Company may from time to time establish or issue and communicate to the Administrator and
the Sub-Administrator in writing.

 

(c)          Services.
Without limiting the generality of the foregoing, the Sub-Administrator, subject to the oversight of the Administrator, shall provide
administrative services to the Company on behalf of the Administrator, including, but not limited to, all services provided for
in the Approved Budget (as such term is defined in the Administrative Services Agreement), assistance with general ledger accounting
and fund accounting, assistance with taxes and tax filings, maintenance of required financial records, assisting the Company in
publishing its net asset value, fund communication support, including access to Sub-Administrator personnel, diligence, reporting
information to the Administrator and generally overseeing the performance of administrative and professional services rendered
to the Company by others, to the extent applicable, portfolio level transfer, finance administration and back office funding mechanics,
portfolio level accounting and reporting, Schedule K-1 assistance, coordination, information and services, and any other services
approved by the Administrator.

 

(d)          Power
and Authority. To facilitate the Sub-Administrator’s performance of these duties, but subject to the restrictions contained
herein, the Administrator, on behalf of the Company, hereby delegates to the Sub-Administrator, and the Sub-Administrator hereby
accepts, the power and authority on behalf of the Company and its subsidiaries to effectuate its decisions relating to the administration
of the Company. The Administrator, on behalf of the Company, but subject to the restrictions contained herein, also grants to the
Sub-Administrator power and authority to engage in all activities and transactions (and anything incidental thereto) that the Sub-Administrator
reasonably deems appropriate, necessary or advisable to carry out its duties pursuant to this Agreement.

 

(e)          Acceptance
of Appointment. The Sub-Administrator hereby accepts such appointment and agrees during the term hereof to render the
services described herein for the consideration provided herein, subject to the limitations contained herein.

 

     - 2 -

     

    

 

(f)           Record
Retention; Reports. Each of the Administrator and the Sub-Administrator shall maintain appropriate records of all of its respective
activities related to the Company and make such records available for inspection by the Administrator or the Sub-Administrator,
as applicable, auditors and authorized agents of the Administrator and the Sub-Administrator, as applicable, at any time or from
time to time during normal business hours. The Sub-Administrator agrees that all records that it maintains pursuant to this Agreement
are property of the Company and shall surrender promptly to the Company any such records upon the Administrator’s and/or
the Company’s request and upon termination of this Agreement pursuant to Section 11, provided that the Sub-Administrator
may retain copies of such records subject to observance of its confidentiality obligations under this Agreement. The Administrator
shall (i) provide the Sub-Administrator such records as are reasonably necessary for the Sub-Administrator to maintain the necessary
back-up for purposes of establishing its track record, and (ii) make reports to the Sub-Administrator regarding the Administrator’s
performance of services to the Company under the terms of the Administration Agreement.

 

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

 

(h)          Fiduciary
Duty. The Sub-Administrator shall be subject to the same fiduciary duties imposed on the Administrator pursuant to the Administrative
Services Agreement.

 

2.            Confidentiality.

 

The parties hereto
agree that each shall treat confidentially all information provided by each party to the other regarding its business and operations.
All confidential information provided by a party hereto, including all “nonpublic personal information,” as defined
under the Gramm-Leach-Bliley Act of 1999 (Public law 106-102, 113 Stat. 1138), shall be used by the other party hereto solely for
the purpose of rendering services pursuant to this Agreement and, except as may be required in carrying out this Agreement, shall
not be disclosed to any third party, without the prior consent of such providing party, except that such confidential information
may be disclosed to an affiliate or agent of the disclosing party to be used for the sole purpose of providing the services set
forth herein. The foregoing shall not be applicable to any information that is publicly available when provided or thereafter becomes
publicly available other than through a breach of this Agreement, or that is required to be disclosed to any regulatory authority,
by judicial or administrative process or otherwise by applicable law or regulation. Further, the foregoing shall not restrict the
Sub-Administrator from the use of any applicable information in connection with its assessment of the fair value of assets held
by both the Company and another client of the Sub-Administrator or its affiliates.

 

3.            Limitations
on Activities.

 

The Sub-Administrator
shall have no liability for acting in accordance with the instructions of the Administrator or the Company pursuant to this Agreement
or any other agreement entered into with the Administrator. Notwithstanding the foregoing, (i) the stockholders, directors, officers,
members, partners and employees of the Sub-Administrator’s affiliates shall not be liable to the Company or the Administrator
for any act or omission by the Sub-Administrator, its managing member, members, officers, partners or employees, or the stockholders,
directors, officers or employees of the Sub-Administrator’s affiliates, and (ii) the stockholders, directors, officers, members
and employees of the Administrator’s affiliates shall not be liable to the Sub- Administrator for any act or omission by
the Administrator, its managing member, members, officers, or employees, or the stockholders, directors, officers or employees
of the Administrator’s affiliates

 

     - 3 -

     

    

 

4.             Approved
Budget.

 

The Sub-Administrator
shall use commercially reasonable efforts to prepare, prior to each fiscal year end of the Company, an estimated budget that includes
anticipated third-party costs and expenses related to the services to be provided by the Sub-Administrator hereunder in such form
and substance as shall be requested by the Administrator to be included in the Approved Budget (as defined in the Administrative
Services Agreement). The Administrator acknowledges that this estimated budget is for reporting purposes only and the Company shall
remain obligated to reimburse the Sub-Administrator, subject to the limitations below, for any third-party costs and expenses which
may exceed the initial or any Approved Budget as approved by the Board. The Sub-Administrator shall obtain approval from the Administrator
prior to incurring any material expense not otherwise specified in the Approved Budget. For purposes of this section, “material
expense” shall mean any expense which individually or as a series of related expenses, exceeds $250,000 or 5%, whichever
is greater, of the Approved Budget.

 

5.             No
Fee; Reimbursement of Expenses; Limitations on Reimbursement of Expenses.

 

(a)            In
full consideration for the provision of the services provided by the Sub-Administrator pursuant to Section 1(c) of this Agreement,
the parties acknowledge that there shall be no separate fee paid in connection with the services provided. As consideration for
the provision of the Services under this Agreement, the Company pay third-parties directly or reimburse the Sub-Administrator the
fees and expenses of third parties for services provided to the Company. The Sub-Administrator shall not be reimbursed for administrative
services performed by it for the benefit of the Company.

 

(b)           Such
reimbursement shall be made in cash to the Sub-Administrator by the Company within 30 calendar days following the Administrator’s
delivery to the Company of the Reimbursement Statement (as defined in the Management Agreement) therefor.

 

6.             Instructions
and Advice.

 

At any time, the Sub-Administrator
may apply to any officer of the Company or the Administrator or his or her designee for instructions and may consult with its own
legal counsel or outside counsel for the Company or the independent accountants for the Company at the expense of the Company,
with respect to any matter arising in connection with the services to be rendered by the Sub-Administrator hereunder.

 

     - 4 -

     

    

 

7.             Relationship
of Sub-Administrator, Administrator and Company.

 

The Administrator and
the Sub-Administrator are not partners or joint venturers with each other or with the Company, and nothing in this Agreement shall
be construed to make them such partners or joint venturers or impose any liability as such on any of them.

 

8.             Third
Party Beneficiaries.

 

Except for the Company
(with respect to Sections 1, 2, 3, 4, 5, 6, 7, 9, 10, 11, 13, 17, 18, 21 and 22) and any Indemnified Parties (as defined below),
the Company and such Indemnified Parties each being an intended beneficiary of this Agreement, this Agreement is for the sole benefit
of the parties hereto and their permitted assigns and nothing herein shall give or be construed to give any person, other than
the parties hereto and such assigns, any legal or equitable rights hereunder.

 

9.             Indemnification

 

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

 

(b)           The
Sub-Administrator shall indemnify the Administrator and the Company (and their respective officers, managers, partners, members,
agents employees, controlling persons and any other person or entity affiliated with the Administrator or the Company, as applicable)
for any losses that the Administrator and the Company (and their respective officers, managers, partners, members, agents employees,
controlling persons and any other person or entity affiliated with the Administrator or the Company, as applicable) may sustain
primarily as a result of the Sub-Administrator’s willful misfeasance, bad faith, gross negligence or reckless disregard in
the performance of its duties under this Agreement or violation of applicable law, including without limitation, the federal and
state securities laws.

 

     - 5 -

     

    

 

(c)          Advancement
of Funds. The Company and/or the Administrator, as applicable, shall be permitted to advance funds to the Indemnified Party
for legal expenses and other costs incurred as a result of any legal action for which indemnification is being sought only if all
of the following conditions are met:

 

(i)        The
legal action relates to acts or omissions with respect to the performance of duties or services on behalf of the Company or the
Administrator; and

 

(ii)       The
Indemnified Party undertakes to repay the advanced funds to the Company or the Administrator, as applicable, together with the
applicable legal rate of interest thereon, in cases in which the Indemnified Party is not found to be entitled to indemnification;
and

 

The legal action was
initiated by a third party who is not the holder of an ownership interest in the Company, or if the legal action was not initiated
by such a holder, a court of competent jurisdiction approves such advancement.

 

10.          Activities
of the Sub-Administrator.

 

(a)          The
services provided by the Sub-Administrator to the Administrator and the Company are not exclusive, and, subject to any other agreements
with the Administrator, including the Exclusivity Agreement by and between the respective parent companies of the Administrator
and Sub-Administrator, dated as of February 7, 2018 (the “Exclusivity Agreement”), the Sub-Administrator may
engage in any other business or render similar or different services to others, including without limitation, business that may
directly or indirectly compete with the Administrator or the Company, so long as its services to the Administrator and the Company
hereunder are not impaired thereby and nothing in this Agreement shall limit or restrict the right of any officer, managing member,
member (and their shareholders or members, including the owners of their shareholders or members), officer or employee of the Sub-Administrator
to engage in any other business or to devote his or her time and attention in part to any other business, whether of a similar
or dissimilar nature, or to receive any fees or compensation in connection therewith (including fees for serving as a director
of, or providing consulting services to, one or more of the Company’s portfolio companies, subject to applicable law).

 

(b)          The
Sub-Administrator (including its managers, partners, shareholders,(including the owners of shareholders), officers or employees
of the Sub-Administrator) assumes no responsibility under this Agreement other than to render the services set forth herein. It
is understood that directors, officers, employees and members of the Company are or may become interested in the Sub-Administrator
and its affiliates, as directors, officers, employees, partners, members, managers or otherwise, and that the Sub-Administrator
and its directors, officers, employees, partners, stockholders, members and managers, and the Sub-Administrator’s affiliates
are or may become similarly interested in the Company and/or its subsidiaries as members or otherwise.

 

     - 6 -

     

    

 

11.         Duration
and Termination of Agreement

 

(a)          Term
and Effectiveness. This Agreement shall become effective upon the effectiveness of the Administrative Services Agreement. Therefore,
the parties agree that this Agreement shall automatically be extended concurrently with the Administrative Services Agreement.

 

(b)          Termination.
This Agreement shall automatically terminate upon a termination of the Sub-Management Agreement pursuant to the terms thereof.

 

(c)          Payments
to and Duties of Sub-Administrator upon Termination or Non-Renewal.

 

(i)           After
the termination or non-renewal of this Agreement, the Sub-Administrator shall not be entitled to reimbursement for further services
hereunder except it shall be entitled to receive from the Company within ninety (90) days of such termination or non-renewal all
unpaid third-party reimbursements payable to the Sub-Administrator prior to the termination or non-renewal of this Agreement consistent
with the terms of the Exclusivity Agreement.

 

(ii)          The
Sub-Administrator shall promptly upon termination:

 

(A)       Deliver
to the Company and the Administrator a full accounting, including a statement showing all payments collected by it and a statement
of all money held by it, covering the period following the date of the last accounting furnished to the Administrator;

 

(B)       Deliver
to the Company all assets and documents of the Company then in custody of the Sub-Administrator; and

 

(C)       Cooperate
with the Company’s and/or the Administrator’s reasonable request to provide an orderly transition.

 

12.          Notices.

 

(a)          All
notices, requests, claims, demands and other communications hereunder which relate to this Agreement shall be in writing and shall
deemed to be delivered, (i) upon delivery in person, (ii) one day after deposit with Federal Express or similar overnight courier
service, (iii) three days after being mailed by registered or certified mail (postage prepaid, return receipt requested), or (iv)
one day after sending an e-mail provided such e-mail is followed by deposit with Federal Express or similar overnight courier no
later than the following day.

 

     - 7 -

     

    

 

(b)        
Unless otherwise notified in writing, all notices, request, claims, demands and other communications shall be given to the respective
parties at the following addresses or at such other address for a party as shall be specified in a notice given in accordance with
this Section 12:

 

	To the
Administrator: 	CNL Strategic Capital Management, LLC
	 	CNL Center at City Commons

450 South Orange Avenue

Orlando, Florida 32801

Attn: Chief Financial Officer and General Counsel

E-mail:
tammy.tipton@cnl.com; 

holly.greer@cnl.com

	 	 
	To the
Sub-Administrator:	Levine Leichtman Strategic Capital, LLC
	 	335 North Maple Drive, Suite 130

Beverly Hills, CA 90210

Attn: General Counsel

E-mail:
dwolmer@llcp.com

  

13.         Amendment.
This Agreement shall not be amended, modified or waived, in whole or in part, except by an instrument in writing signed by the
parties hereto, or their respective successors or permitted assignees. The Administrator and the Company hereby acknowledge and
agree that the Administrative Services Agreement may not be amended, modified or waived, in whole or in part, without the prior
written consent of the Sub-Administrator, which consent shall not be unreasonably withheld.

 

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

 

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

 

16.         Entire
Agreement; Governing Law. This Agreement contains the entire agreement of the parties and supersedes all prior agreements,
understandings and arrangements with respect to the subject matter hereof, provided that the Exclusivity Agreement shall remain
in full force and effect. Notwithstanding the place where this Agreement may be executed by any of the parties hereto, this Agreement
shall be construed in accordance with the laws of the State of New York, without regard to principles of conflict of laws that
would result in the application of the laws of another jurisdiction, and any action brought to enforce the agreements made hereunder
or any action which arises out of the relationship created hereunder shall be brought exclusively in the federal or state courts
for New York County, New York. Each party hereby irrevocably waives its rights to trial by jury in any action or proceeding arising
out of this Agreement or the transactions relating to its subject matter.

 

17.         Waivers.
Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement
shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any
other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy,
power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect
to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted
such waiver.

 

     - 8 -

     

    

 

18.         Survival.
The provisions of Sections 8, 9, 10, 11, 16, 17, 23 and this Section 18 shall survive the termination of this Agreement.

 

19.         Gender.
Words used herein regardless of the number and gender specifically used, shall be deemed and construed to include any other number,
singular or plural, and any other gender, masculine, feminine or neuter, as the context requires.

 

20.         Titles
not to Affect Interpretation. The titles of paragraphs and subparagraphs contained in this Agreement are for convenience only,
and they neither form a part of this Agreement nor are they to be used in the construction or interpretation hereof.

 

21.         Representations,
Warranties and Covenants of the Sub-Administrator. The Sub-Administrator represents, warrants and covenants to the Administrator
and the Company as follows:

 

(a)           The
Sub-Administrator is a limited liability company duly organized and validly existing under the laws of the State of Delaware with
the power to own and possess its assets and carry on its business as the business is now being conducted.

 

(b)           The
execution, delivery and performance by the Sub-Administrator of this Agreement is within the Sub-Administrator’s powers and
has been duly authorized by all necessary actions and no action by or in respect of, or filing with, any governmental body, agency
or official is required on the part of the Sub-Administrator for the execution, delivery or performance of this Agreement by the
Sub-Administrator. The execution, delivery and performance of this Agreement by the Sub-Administrator does not violate, contravene
or constitute a default under (i) any provision of any applicable law, rule or regulation, (ii) the Sub-Administrator’s organizational
documents, or (iii) any agreement, judgment, injunction, order, decree or other instruments binding upon the Sub-Administrator
or any of the Sub-Administrator’s property.

 

(c)           The
Sub-Administrator has met, in all material respects, and will continue to meet, in all material respects, for the duration of this
Agreement, any applicable federal or state requirements, or the applicable requirements of any regulatory or industry self-regulatory
agency, necessary to be met by the Sub-Administrator in order for the Sub-Administrator to perform the services contemplated by
this Agreement.

 

(d)           The
Sub-Administrator will carry out its responsibilities under this Agreement in compliance in all material respects with (i) any
applicable federal or state laws, rules or regulations, including securities laws, rules and regulations, (ii) the Company’s
guidelines, policies and limitations as may be set by the Board from time to time and (iii) such other policies or directives as
the Board may from time to time establish or issue and that the Administrator communicates to the Sub-Administrator in writing,
provided that the Administrator will promptly notify the Sub-Administrator in writing of changes to the matters identified in (ii)
or (iii) above, to the extent the Administrator is informed of such changes pursuant to the Administrative Services Agreement.

 

     - 9 -

     

    

 

22.         Representations,
Warranties and Covenants of the Administrator. The Administrator represents, warrants and covenants to the Sub-Administrator
and the Company as follows:

 

(a)           The
Administrator is a limited liability company duly organized and validly existing under the laws of the State of Delaware with the
power to own and possess its assets and carry on its business as the business is now being conducted.

 

(b)           The
execution, delivery and performance by the Administrator of this Agreement and the Administrative Services Agreement is within
the Administrator’s powers and has been duly authorized by all necessary actions on the part of the Administrator and its
members and managers and no action by or in respect of, or filing with, any governmental body, agency or official is required on
the part of the Administrator for the execution, delivery or performance of this Agreement and the Administrative Services Agreement
by the Administrator. The execution, delivery and performance of this Agreement and the Administrative Services Agreement by the
Administrator does not violate, contravene or constitute a default under (i) any provision of any applicable law, rule or regulation,
(ii) the Administrator’s organizational documents, or (iii) any agreement, judgment, injunction, order, decree or other instruments
binding upon the Administrator or any of the Sub-Administrator’s property.

 

(c)           The
Administrator has met, in all material respects, and will continue to meet, in all material respects, for the duration of this
Agreement, any applicable federal or state requirements, or the applicable requirements of any regulatory or industry self-regulatory
agency, necessary to be met by the Administrator in order for the Administrator to perform the services contemplated by this Agreement.

 

(d)           The
Administrator will carry out its responsibilities under this Agreement and the Administrative Services Agreement in compliance
in all material respects with (i) any applicable federal or state laws, rules or regulations, including securities laws, rules
and regulations, (ii) the Company’s guidelines, policies and limitations as may be set by the Board from time to time and
(iii) such other policies or directives as the Board may from time to time establish or issue.

 

     - 10 -

     

    

 

23.           Construction.
The parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question
of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.
Any reference to any federal, state, local, or foreign statue or law shall be deemed also to refer to all rules and regulations
promulgated thereunder, unless the context requires otherwise. As used herein: (a) words in the singular shall be held to include
the plural and vice versa; (b) the terms “hereof,” “herein,” and “herewith” and words of similar
import shall, unless otherwise stated be construed to refer to this Agreement as a whole and not to any particular provision of
this Agreement; (c) the terms “include,” “includes” and “including” and words of like import
will be deems to be followed by the words “without limitation;” (d) unless the context otherwise requires, the word
“or” is not exclusive; and (e) unless the context otherwise requires, any reference to a “party” means
the Administrator, on the one hand, and the Sub-Administrator, on the other hand.

 

[Remainder of page intentionally left
blank.]

 

     - 11 -

     

    

  

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be executed by their officers designated below as of the date first written above.

  

	 	CNL STRATEGIC CAPITAL MANAGEMENT, LLC
	 	 	 
	 	By:	/s/ Tammy J. Tipton 
	 	 	Name:  Tammy J. Tipton
	 	 	Title:    Chief Financial Officer

  

	 	LEVINE LEICHTMAN STRATEGIC CAPITAL, LLC
	 	 	 
	 	By:	/s/ David Wolmer 
	 	 	Name: David Wolmer
	 	 	Title: Vice President

 

Agreed and acknowledged
for the purpose of its rights and obligations under Sections 3, 4, 5, 6, 9, 11, 13 and 18 only:

 

CNL Strategic Capital,
LLC

 

	By:	/s/ Chirag J. Bhavsar
	 
	 	Name:  Chirag J. Bhavsar	 
	 	Title:    Chief Executive
Officer	 
	 	 	 
	 	 	 

 

[Signature Page to the Sub-Administration Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00279-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00279-of-00352.parquet"}]]