Document:

Exhibit 10.1

 

Second
AMENDED AND RESTATED INVESTMENT ADVISORY aGREEMENT

 

BETWEEN

 

Garrison
capital Inc.

 

AND

 

garrison
capital advisers LLC

 

This Second Amended and Restated Investment
Advisory Agreement made this 6th day of May, 2014 (this “Agreement”), by and between GARRISON CAPITAL
INC., a Delaware corporation (the “Corporation”), and GARRISON CAPITAL ADVISERS LLC, a Delaware limited liability
company (the “Adviser”).

 

WHEREAS, the Corporation operates as a closed-end,
non-diversified management investment company;

 

WHEREAS, the Corporation has filed an election
to be treated as a business development company under the Investment Company Act of 1940, as amended (the “Investment
Company Act”);

 

WHEREAS, the Corporation has acquired interests
in senior secured loans and other debt obligations that comprise a portion of the Corporation’s portfolio;

 

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

 

WHEREAS, the Corporation and the Adviser are
party to that certain amended and restated investment advisory agreement dated March 26, 2013 by and between the Corporation and
the Adviser (the “Prior Agreement”); and

 

WHEREAS, the Corporation and the Adviser desire
to amend and restate the Prior Agreement to set forth the terms and conditions for the continued provision by the Adviser of investment
advisory services to the Corporation.

 

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

 

1.            Duties
of the Adviser.

 

(a)          The
Corporation hereby employs the Adviser to act as the investment adviser to the Corporation and to manage the investment and reinvestment
of the assets of the Corporation, subject to the supervision of the board of directors of the Corporation (the “Board
of Directors”), for the period and upon the terms herein set forth, (i) in accordance with the investment objective,
policies and restrictions that are set forth in the Registration Statement, as the same may be amended from time to time, (ii)
in accordance with the Investment Company Act, the Investment Advisers Act and all other applicable federal and state law and (iii)
in accordance with the Corporation’s certificate of incorporation and bylaws.

 

    	 

    	 

    

 

Without limiting the generality of the foregoing,
the Adviser shall, during the term and subject to the provisions of this Agreement, (i) determine the composition of the portfolio
of the Corporation, the nature and timing of the changes therein and the manner of implementing such changes; (ii) identify, evaluate
and negotiate the structure of the investments made by the Corporation (including performing due diligence on prospective portfolio
companies); (iii) execute, close, service and monitor the Corporation’s investments; (iv) determine the securities and other
assets that the Corporation will purchase, retain or sell; and (v) provide the Corporation with such other investment advisory,
research and related services as the Corporation may, from time to time, reasonably require for the investment of its funds. The
Adviser shall have the power and authority on behalf of the Corporation to effectuate its investment decisions for the Corporation,
including the execution and delivery of all documents relating to the Corporation’s investments and the placing of orders
for other purchase or sale transactions on behalf of the Corporation.

 

In the event that the Corporation determines
to acquire debt financing or to refinance existing debt financing, the Adviser shall arrange for such financing on the Corporation’s
behalf, subject to the oversight and approval of the Board of Directors.

 

If it is necessary for the Adviser to make
investments on behalf of the Corporation through a subsidiary or special purpose vehicle, the Adviser shall have authority to create
or arrange for the creation of such subsidiary or special purpose vehicle and to make such investments through such subsidiary
or special purpose vehicle in accordance with the Investment Company Act.

 

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

 

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

 

    	2

    	 

    

 

(d)          For
all purposes herein provided, the Adviser shall 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 Corporation in any way or otherwise be deemed an agent of
the Corporation.

 

(e)          The
Adviser shall keep and preserve, in the manner and for the period that would be applicable to investment companies registered under
the Investment Company Act, any books and records relevant to the provision of its investment advisory services to the Corporation,
shall specifically maintain all books and records with respect to the Corporation’s portfolio transactions and shall render
to the Board of Directors such periodic and special reports as the Board of Directors may reasonably request. The Adviser agrees
that all records that it maintains for the Corporation are the property of the Corporation and shall surrender promptly to the
Corporation any such records upon the Corporation’s request, provided that the Adviser may retain a copy of such records.

 

2.            Corporation’s
Responsibilities and Expenses Payable by the Corporation. All investment professionals of the Adviser and their respective
staffs, when and to the extent engaged in providing investment advisory and management services hereunder, and the compensation
and routine overhead expenses of such personnel allocable to such services, shall be provided and paid for by the Adviser and not
by the Corporation.

 

The Corporation shall bear all other costs
and expenses of its operations and transactions, including, without limitation, those relating to: (a) organization; (b) calculating
the Corporation’s net asset value (including the cost and expenses of any independent valuation firm); (c) fees and expenses,
including travel expenses, incurred by the Adviser or payable to third parties in performing due diligence on prospective portfolio
companies, monitoring the Corporation’s investments and, if necessary, enforcing the Corporation’s rights; (d) interest
payable on debt, if any, incurred to finance the Corporation’s investments; (e) costs of offerings of the Corporation’s
common stock and other securities; (f) the base management fee and any incentive fee; (g) distributions on the Corporation’s
common stock; (h) administration fees payable to the Garrison Capital Administrator LLC (the “Administrator”)
under the administration agreement dated as of October 9, 2012 (as amended from time to time, the “Administration Agreement”);
(i) transfer agent and custody fees and expenses; (j) the allocated costs incurred by the Administrator in providing managerial
assistance to those portfolio companies that request it; (k) amounts payable to third parties relating to, or associated with,
evaluating, making and disposing of investments; (l) brokerage fees and commissions; (m) registration fees; (n) listing fees; (o)
taxes; (p) independent director fees and expenses; (1) costs associated with the Corporation’s reporting and compliance obligations
under the Investment Company Act and applicable U.S. federal and state securities laws; (r) the costs of any reports, proxy statements
or other notices to the Corporation’s stockholders, including printing costs; (s) costs of holding stockholder meetings;
(t) the Corporation’s fidelity bond; (u) directors and officers/errors and omissions liability insurance, and any other insurance
premiums; (v) litigation, indemnification and other non-recurring or extraordinary expenses; (w) direct costs and expenses of administration
and operation, including audit and legal costs; (x) fees and expenses associated with marketing efforts; (y) dues, fees and charges
of any trade association of which the Corporation is a member; and (z) all other expenses reasonably incurred by the Corporation
or the Administrator in connection with administering the Corporation’s business, such as the allocable portion of overhead
under the Administration Agreement, including rent and the Corporation’s allocable portion of the costs and expenses of its
chief compliance officer, chief financial officer and their respective staffs.

 

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3.            Compensation
of the Adviser. The Corporation agrees to pay, and the Adviser agrees to accept, as compensation for the investment advisory
and management services provided by the Adviser hereunder, a fee consisting of two components: a base management fee (the “Base
Management Fee”) and an incentive fee (the “Incentive Fee”), each as hereinafter set forth. The Corporation
shall make any payments due hereunder to the Adviser or to the Adviser’s designee as the Adviser may otherwise direct. To
the extent permitted by applicable law, the Adviser may elect, or adopt a deferred compensation plan pursuant to which it may elect
to defer all or a portion of its fees hereunder for a specified period of time.

 

(a)          The
Base Management Fee shall be calculated at an annual rate equal to 1.75% of the gross assets of the Corporation, excluding cash
and cash equivalents but including assets purchased with borrowed funds. For services rendered under this Agreement, the Base Management
Fee shall be payable quarterly in arrears. The Base Management Fee shall be calculated based on the average carrying value of the
gross assets of the Corporation at the end of the two most recently completed calendar quarters. Such amount shall be appropriately
adjusted (based on the actual number of days elapsed relative to the total number of days in such calendar quarter) for any share
issuances or repurchases during a calendar quarter. The Base Management Fee for any partial month or quarter shall be appropriately
pro-rated (based on the number of days actually elapsed at the end of such partial month or quarter relative to the total number
of days in such month or quarter). For purposes of this Agreement, cash equivalents shall mean U.S. government securities and commercial
paper instruments maturing within 270 days of the date of purchase of such instrument by the Corporation. Notwithstanding anything
herein to the contrary, to the extent that the Adviser or an affiliate of the Adviser provides investment advisory, collateral
management or other similar services to a subsidiary of the Corporation, the Base Management Fee shall be reduced by an amount
equal to the product of (a) the total fees paid to the Adviser by such subsidiary for such services and (b) the percentage of such
subsidiary’s total equity that is owned, directly or indirectly, by the Corporation.

 

(b)          The
Incentive Fee, which is subject to the Incentive Fee Cap and Deferral Mechanism (as defined under Section 3(c) below), shall consist
of two parts, as follows:

 

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		(i)	One part will be calculated and payable quarterly in arrears based on the Pre-Incentive Fee Net Investment Income for the immediately
preceding calendar quarter, subject to the Incentive Fee Cap and Deferral Mechanism. For this purpose, Pre-Incentive Fee Net Investment
Income means interest income, distribution income and any other income (including any other fees (other than fees for providing
managerial assistance), such as commitment, origination, structuring, diligence and consulting fees and fees for providing significant
managerial assistance or other fees that the Corporation receives from portfolio companies) accrued during the calendar quarter,
minus the Corporation’s operating expenses for the quarter (including the Base Management Fee, expenses payable under the
Administration Agreement with Garrison Capital Administrator LLC dated as of October 9, 2012 and any interest expense and dividends
paid on any issued and outstanding preferred stock, but excluding the Incentive Fee). Pre-Incentive Fee Net Investment Income includes,
in the case of investments with a deferred interest feature (such as original issue discount, debt instruments payment-in-kind
interest and zero coupon securities), accrued income that the Corporation has not yet received in cash. Pre-Incentive Fee Net Investment
Income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation.

 

Pre-Incentive Fee Net Investment
Income, expressed as a rate of return on the value of the Corporation’s net assets at the end of the immediately preceding
calendar quarter, will be compared to a “hurdle rate” of 2.00% per quarter (8.00% annualized). The Corporation will
pay the Adviser an Incentive Fee with respect to the Corporation’s Pre-Incentive Fee Net Investment Income in each calendar
quarter as follows; (1) no Incentive Fee in any calendar quarter in which the Corporation’s Pre-Incentive Fee Net Investment
Income does not exceed the hurdle rate; (2) 100% of the Corporation’s Pre-Incentive Fee Net Investment Income with respect
to that portion of such Pre-Incentive Fee Net Investment Income, if any, that exceeds the hurdle rate but is less than 2.50% in
any calendar quarter; and (3) 20% of the amount of the Corporation’s Pre-Incentive Fee Net Investment Income, if any, that
exceeds 2.50% in any calendar quarter.

 

The portion of such Incentive Fee
that is attributable to deferred interest (such as payment-in-kind interest or original issue discount) will be paid to the Adviser,
together with any other interest accrued on the loan from the date of deferral to the date of payment, only if and to the extent
the Corporation actually receives such interest in cash, and any accrual thereof will be reversed if and to the extent such interest
is reversed in connection with any write-off or similar treatment of the investment giving rise to any deferred interest accrual.

 

These calculations will be appropriately
pro rated for any period of less than three months and adjusted for any share issuances or repurchases during the current quarter.

 

		(ii)	The second part of the Incentive Fee (the “Capital Gains Fee”) will be determined and payable in arrears
as of the end of each calendar year (or upon termination of this Agreement as set forth below), commencing on December 31, 2013,
and will equal 20.0% of the Corporation’s cumulative aggregate realized capital gains from April 1, 2013 through the end
of that calendar year, computed net of the Corporation’s aggregate cumulative realized capital losses and the Corporation’s
aggregate cumulative unrealized capital depreciation through the end of such year, less the aggregate amount of any previously
paid Capital Gains Fees and subject to the Incentive Fee Cap and Deferral Mechanism. In the event that this Agreement shall terminate
as of a date that is not a calendar year end, the termination date shall be treated as though it were a calendar year end for purposes
of calculating and paying a Capital Gains Fee.

 

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The Corporation shall accrue the
Capital Gains Fee if, on a cumulative basis, the sum of net realized gains/(losses) plus net unrealized appreciation/ (depreciation)
is positive. The Capital Gains Fee excludes any portion of realized gains/(losses) that are associated with the reversal of any
portion of unrealized appreciation/depreciation attributable to periods prior to April 1, 2013.

 

(c)          No
Incentive Fee shall be paid to the Adviser for any fiscal quarter if, after such payment, the cumulative incentive fees paid to
the Adviser for the period that includes the such quarter and the 11 full preceding fiscal quarters (the “Incentive Fee
Look-back Period”) would exceed 20.0% of the Corporation’s Cumulative Pre-Incentive Fee Net Return (as defined
below) during the Incentive Fee Look-back Period. Each quarterly Incentive Fee is subject to a cap (the “Incentive Fee
Cap”) and a deferral mechanism through which the Adviser may recoup a portion of such deferred incentive fees (collectively,
the “Incentive Fee Cap and Deferral Mechanism”). The Incentive Fee Look-back Period will commence on April 1,
2013 and may be a total of less than 12 full fiscal quarters. The “Incentive Fee Cap” is equal to (a) 20.0%
of Cumulative Pre-Incentive Fee Net Return during the Incentive Fee Look-back Period less (b) cumulative incentive fees of any
kind paid to the Adviser during the Incentive Fee Look-back Period. To the extent the Incentive Fee Cap is zero or a negative value
in any quarter, the Corporation shall pay no Incentive Fee to the Adviser in that quarter. To the extent that the payment of Incentive
Fees is limited by the Incentive Fee Cap, the payment of such fees shall be deferred and paid in subsequent quarters up to three
years after their date of deferment, subject to applicable limitations included herein. The Corporation shall only pay Incentive
Fees to the extent allowed by the Incentive Fee Cap and Deferral Mechanism. “Cumulative Pre-Incentive Fee Net Return”
during any Incentive Fee Look-back Period means the sum of (a) Pre-Incentive Fee Net Investment Income for each quarter during
the Incentive Fee Look-back Period and (b) the sum of cumulative realized capital gains, cumulative realized capital losses, cumulative
unrealized capital depreciation and cumulative unrealized capital appreciation during the applicable Incentive Fee Look-back Period.

 

4.            Covenants
of the Adviser. The Adviser hereby covenants that it is registered as an investment adviser under the Investment Advisers Act.
The Adviser hereby agrees that its activities shall at all times be in compliance in all material respects with all applicable
federal and state laws governing its operations and investments.

 

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

 

6.            Proxy
Voting. The Adviser shall be responsible for voting any proxies solicited by an issuer of securities held by the Corporation in
the best interest of the Corporation and in accordance with the Adviser’s proxy voting policies and procedures, as any such
proxy voting policies and procedures may be amended from time to time. The Corporation has been provided with a copy of the Adviser’s
proxy voting policies and procedures and has been informed as to how it can obtain further information from the Adviser regarding
proxy voting activities undertaken on behalf of the Corporation. The Adviser shall be responsible for reporting the Corporation’s
proxy voting activities, as required, through periodic filings on Form N-PX.

 

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

 

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Subject to any restrictions prescribed by
law, by the provisions of the Code of Ethics of the Corporation and the Adviser and by the Adviser’s Allocation Policy, the
Adviser and its members, officers, employees and agents shall be free from time to time to acquire, possess, manage and dispose
of securities or other investment assets for their own accounts, for the accounts of their family members, for the account of any
entity in which they have a beneficial interest or for the accounts of others for whom they may provide investment advisory, brokerage
or other services (collectively, “Managed Accounts”), in transactions that may or may not correspond with transactions
effected or positions held by the Corporation or to give advice and take action with respect to Managed Accounts that differs from
advice given to, or action taken on behalf of, the Corporation; provided that the Adviser allocates investment opportunities to
the Corporation, over a period of time on a fair and equitable basis compared to investment opportunities extended to other Managed
Accounts. The Adviser is not, and shall not be, obligated to initiate the purchase or sale for the Corporation of any security
that the Adviser and its members, officers, employees or agents may purchase or sell for its or their own accounts or for the account
of any other client if, in the opinion of the Adviser, such transaction or investment appears unsuitable or undesirable for the
Corporation. Moreover, it is understood that when the Adviser determines that it would be appropriate for the Corporation and one
or more Managed Accounts to participate in the same investment opportunity, the Adviser shall seek to execute orders for the Corporation
and for such Managed Account(s) on a basis that the Adviser considers to be fair and equitable over time. In such situations, the
Adviser may (but is not required to) place orders for the Corporation and each Managed Account simultaneously or on an aggregated
basis. If all such orders are not filled at the same price, the Adviser may cause the Corporation and each Managed Account to pay
or receive the average of the prices at which the orders were filled for the Corporation and all relevant Managed Accounts on each
applicable day. If all such orders cannot be fully executed under prevailing market conditions, the Adviser may allocate the investment
opportunities among participating accounts in a manner that the Adviser considers equitable, taking into account, among other things,
the size of each account, the size of the order placed for each account and any other factors that the Adviser deems relevant.

 

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

 

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9.            Limitation
of Liability of the Adviser; Indemnification. The Adviser (and its officers, managers, partners, agents, employees, controlling
persons, members and any other person or entity affiliated with the Adviser, including without limitation its managing member and
the Administrator) shall not be liable to the Corporation for any action taken or omitted to be taken by the Adviser in connection
with the performance of any of its duties or obligations under this Agreement or otherwise as an investment adviser of the Corporation,
except to the extent specified in Section 36(b) of the Investment Company Act concerning loss resulting from a breach of fiduciary
duty (as the same is finally determined by judicial proceedings) with respect to the receipt of compensation for services, and
the Corporation shall indemnify, defend and protect the Adviser (and its officers, managers, partners, agents, employees, controlling
persons, members and any other person or entity affiliated with the Adviser, including without limitation its managing member and
the 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 Corporation or its security
holders) arising out of or otherwise based upon the performance of any of the Adviser’s duties or obligations under this
Agreement or otherwise as an investment adviser of the Corporation. Notwithstanding the preceding sentence of this Paragraph 9
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 Corporation or its security holders
to which the Indemnified Parties would otherwise be subject by reason of willful misfeasance, bad faith or gross negligence in
the performance of the Adviser’s duties or by reason of the reckless disregard of the Adviser’s duties and obligations
under this Agreement (as the same shall be determined in accordance with the Investment Company Act and any interpretations or
guidance by the Securities and Exchange Commission or its staff thereunder).

 

10.          Effectiveness,
Duration and Termination of Agreement. This Agreement shall become effective as of the first date above written. This Agreement
shall continue automatically for successive annual periods, provided that such continuance is specifically approved at least annually
by (a) the vote of the Corporation’s Board of Directors, or by the vote of a majority of the outstanding voting securities
of the Corporation and (b) the vote of a majority of the Corporation’s Directors who are not parties to this Agreement or
“interested persons” (as such term is defined in Section 2(a)(19) of the Investment Company Act) of any such party,
in accordance with the requirements of the Investment Company Act.

 

This Agreement may be terminated at any
time, without the payment of any penalty, upon not less than 60 days’ written notice, by the vote of a majority of the outstanding
voting securities of the Corporation, or by the vote of the Corporation’s Directors or by the Adviser.

 

This Agreement shall automatically terminate
in the event of its “assignment” (as such term is defined for purposes of Section 15(a)(4) of the Investment Company
Act). The provisions of Section 9 of this Agreement shall remain in full force and effect, and the Adviser shall remain entitled
to the benefits thereof, notwithstanding any termination of this Agreement. Further, notwithstanding the termination or expiration
of this Agreement as aforesaid, the Adviser shall be entitled to any amounts owed under Section 3 through the date of termination
or expiration and Section 9 shall continue in force and effect and apply to the Adviser and its representatives as and to the extent
applicable.

 

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

 

12.          Amendments.
This Agreement may be amended by mutual consent, but the consent of the Corporation must be obtained in conformity with the requirements
of the Investment Company Act.

 

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. This Agreement shall be construed in accordance with
the laws of the State of New York and the applicable provisions of the Investment Company Act. To the extent the applicable laws
of the State of New York, or any of the provisions herein, conflict with the provisions of the Investment Company Act, the latter
shall control.

 

*          *          *          *

 

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

	 	GARRISON CAPITAL Inc.
	 	 	 
	 	By:	/s/Joseph Tansey
	 	 	Name:  Joseph Tansey
	 	 	Title:  Chief Executive Officer

 

	GARRISON CAPITAL ADVISERS LLC	 
	 	 
	By:	Garrison Capital Advisers MM LLC,	 
	its managing member	 
	 	 	 
	By:	/s/ Julian Weldon	 
	 	Name:  Julian Weldon	 
	 	Title:  Secretary	 

 

[Signature Page
to Second Amended and Restated Investment Advisory Agreement]

 

    	11Exhibit
10.1

 

Loan Agreement

 

	Place of Execution: 	Minsheng Bank Building 16th Floor, No. 1 Business Outer 

Ring Road, Zhengdong New District, Zhengzhou
	Lender (“Party A”): 	ZhongYu (Henan) Energy Holdings Limited
	Legal representative: 	LU, Zhaoheng
	Company Location: 	Minsheng Bank Building 16th Floor, No. 1 Business Outer

 Ring Road, Zhengdong New District, Zhengzhou
	Phone: 	0371-87518030
	Borrower (“Party B”): 	Beijing Zhong Ran Wei Ye Gas Co., Ltd.
	Legal representative: 	LIU, Yuchuan
	Company Location: 	Room 2008, Tower A, Caizhi Int'l Building, No. 18 

Zhongguancun Dong Street, Haidian District, Beijing
	Phone: 	010-82600041

 

With the
principles of fairness, good faith, honesty and voluntariness, Party A and Party B have agreed and executed this contract to perform
accordingly.

 

Article
I. Amount and Term of the Loan 

 

Party
A and B agree that Party A shall grant Party B a cash loan facility available for multiple drawdowns in one year starting from
the date hereof in a total amount up to RMB 50,000,000 (fifty million).

The term
for each drawdown is 12 months.

 

Article
II. Purpose of the Loan

 

Party
B will use the loan as its working capital. 

 

Article
III. Interest rate

 

1.The
interest rate of all loans under this loan facility is 8% per annum.

 

2.The
interest will start to accrue on each loan on the date Party A transfers the loaned amount to Party B. The payment of interest
shall be made monthly. Party B shall pay in full the principal of loan together with the interest accrued therein at the end of
the term of each loan.

 

    	 

    	 

    

 

3.Party
B designates the bank account below to be the receiving account and guarantees its authenticity. Party A shall transfer each loan
under this loan agreement to this account.

 

	 	Name of Bank: 	Bank of Dalian, Beijing Branch Business Department
	 	Account Name:	Beijing Zhong Ran Wei Ye Gas Co. Ltd.
	 	Account Number: 	5713 3220 9001 441

 

4.Party
A designates the bank account below to be the receiving account and guarantees its authenticity. Party B shall pay the principal
of loan together with the interest accrued therein at the end of each term.

	 	Name of Bank: 	China Citic Bank, Zhengzhou Zhengdong New District Sub-branch
	 	Account Name:	ZhongYu (Henan) Energy Holdings Limited
	 	Account Number: 	7393 2101 8260 0006 605

 

5.Party
B may prepay each loan upon seven days’ written notice to Party A and the interests shall be calculated based on the actual
number of days for which the loan is outstanding.

 

Article
IV. Extension of Repayment Period

 

If Party
B cannot repay on time and need an extension, Party B shall send Party A a written request twenty business days before the scheduled
repayment date and, upon Party A’s approval, Party A and B may enter into an agreement for such extension of repayment.

 

Article
V. Security

 

Party
B voluntarily pledge its shareholder dividend rights of Beijing ZhongRan Xiangke Oil and Gas Technology Co., Ltd. as security for
repayment of loan under this contract.

 

Party
B agrees that Party A is entitled to demand Beijing ZhongRan Xiangke Oil and Gas Technology Co., Ltd. (“Zhongran Xiangke”)
to distribute the dividends directly to Party A in the event that Party B does not repay the principal or the interests of the
loan on time. If there has been no dividends from Zhongran Xiangke by the date of the scheduled maturity, Party B agrees to use
the sales income of Zhongran Xiangke to repay Party A the principal and the interests of the loan.

 

    	1

    	Exhibit 10.1

    

 

Article
VI. Representations and Warranties of Party B

 

1.
Party B is a legal entity duly organized under the laws of the People’s Republic of China and it has the required civil rights
and capacity to enter into and perform this contract and can bear civil liability independently.

 

2.
All the documents, statements, financial vouchers and representations provided by Party B related to the loan are lawful, true,
accurate and complete.

 

Article
VII. Obligations of Party B

 

1.
Party B shall be responsible for all the relevant fees incurred in connection with the Loan Contract and shall repay the principal
and interests of the loan pursuant to this agreement.

 

2.
During the term of the loan, if there is a material change to Party B’s business and decision making that would impact Party
A’s rights under this agreement (including, without limitation, debt-equity swap, reorganization, merger, division, establishing
a joint venture, collaboration and change of business scope or registered capital), Party B shall notify Party A in writing at
least thirty calendar days in advance and implement its repayment obligation or prepay the principal and interests or provide securities
recognized by Party A.

 

3.
Party B should accept inspections by Party A. Upon request by Party A, Party B should provide Party A with reports and other documents
that truthfully reflect the usage of the loan.

 

4.
Party B may not directly or indirectly transfer its obligations under this agreement without Party A’s written consent.

 

5.
Before Party B transfers or disposes all or the majority of its material assets or sales incomes, Party B shall notify Party A
in writing at least thirty calendar days in advance and implement its repayment obligation or prepay the loan or provide assurance
acceptable to Party A.

 

6.
Upon the occurrence of any event that will affect Party B’s ability to perform under this agreement, including, without limitation,
significant business disputes, suspension of business, close of business, bankruptcy, dissolution, revocation of business license,
deterioration of financial conditions, Party B shall notify Party A in writing immediately.

 

    	2

    	Exhibit 10.1

    

 

7.
Upon the occurrence of suspension of business, close of business, bankruptcy, dissolution, revocation of business license or net
loss with respect to a guarantor or the depreciation in value of the collateral pledged to secure the loan under this agreement,
Party B shall transfer new collateral acceptable by Party A.

 

8.
If Party B changes its company name, legal representative, project manager, company location, phone number, fax number, etc. during
the term of the loan, Party B shall notify Party A in writing within three business days upon such change.

 

Article
VIII. Obligations of Party A

 

1.Party
A shall transfer the loan in full amount and on time to Party B pursuant to this agreement.

 

2.Party
A shall keep confidential any business secrets of Party B that Party A became aware of during the negotiation, execution, and performance
of this agreement and any material, data, and other information that Party B requested confidential treatment for.

 

3.Party
A shall compute the interests based on the interest rate and term of the loan provided in this Agreement. Party A shall give its
consent to Party B’s prepayment of the loan upon its receipt of Party B’s written notice.

 

Article
IX. Liability for Breach of Contract

 

1.Upon
the execution of this agreement, the party who fails to perform its obligations pursuant to the terms herein shall be liable for
such violation of the agreement.

 

2.Upon
the occurrence of any of the following events, Party A may demand Party B to repay the principal, interests and other fees incurred
in connection with the loan and the loan shall be accelerated to mature on the date of such demand:

 

	 	(1)	Party B fails to repay the principal and interests of the loan and does not cure such failure upon Party A’s written notice;
	 	 	 
	 	(2)	The suspension of business, close of business, bankruptcy, dissolution, revocation of business license, involvement in material commercial dispute, or deterioration of financial conditions with respect to Party B;
	 	 	 
	 	(3)	Party B fails to use the proceeds from the loan facility in accordance with this agreement;
	 	 	 
	 	(4)	Any significant event that jeopardizes or impairs or could jeopardize or impair the rights and interests of Party B.

  

    	3

    	Exhibit 10.1

    

 

3.
Party A may demand a default interest calculated at an interest rate equal to 0.5% per annum on the due and unpaid amount of interest
of the loan from the date of default until the defaulted payment is repaid; Party A may demand a default interest calculated at
an interest rate equal to 0.2% per annum on the due and unpaid amount of principal of the loan from the date of default until the
defaulted payment is repaid.

 

Article
X. Dispute Resolution

 

Any dispute
arising out of or in connection with the performance of this agreement or any other matters not covered herein shall be resolved
by consultation between the parties; if the dispute cannot be resolved by consultation, it will be submitted to the court of the
place of execution of this agreement.

 

Article
XI. Effectiveness, Amendment and Termination

 

1.
This agreement shall come into effect upon the satisfaction of the following three conditions:

 

	 	(1)	Signed by the legal representatives of Party A and B, respectively;
	 	 	 
	 

         
	(2)	Stamped with the company seal;
	 	(3)	Party B has executed all the necessary documents in compliance with law and its policies to pledge its shareholder dividend rights of Beijing ZhongRan Xiangke Oil and Gas Technology Co., Ltd. and has completed any necessary procedures to pledge such dividend rights.

  

2. After
this agreement becomes effective, the parties may unilaterally amend or terminate this agreement, subject to the provisions herein;
if the parties need to amend or terminate this agreement, the parties shall consult with each other and reach an agreement in writing.

 

    	4

    	Exhibit 10.1

    

 

Article
XII. Others

 

1.Party
A and B may enter into other agreements on uncovered matters as annexes to this agreement . Any such annex, amendment or supplement
to this agreement shall form part of this agreement and shall have the same legal effect.

 

2.This
agreement is executed and delivered in four counterparts, each of which is deemed an original, two for each party.

  

  

	
        Party
A:      ZhongYu (Henan) Energy Holdings Limited

        (COMPANY SEAL)

    	
        Party
B:       Beijing Zhong Ran Wei Ye Gas Co., Ltd.

        (COMPANY SEAL)

	Legal Representative: /s/ LU, Zhaoheng  	Legal Representative: /s/ Liu, Yuchuang
	Date:           May 9, 2014	Date:           May 9, 2014

 

 

    	5

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