Document:

EX-10.1

 Exhibit 10.1 
 Performance Share Award Agreement 
 This Performance Award Agreement (this
“Agreement”) is made and entered into as of             (the “Grant Date”) by and between Team, Inc., a Delaware corporation (the
“Company”) and             (the “Grantee”). 
 WHEREAS, the Company has adopted the Team, Inc. 2006 Stock Incentive Plan (the “Plan”) pursuant to which Performance Awards may be granted; and 

WHEREAS, the Committee has determined that it is in the best interests of the Company and its shareholders to grant the award of
Performance Awards provided for herein. 
 NOW, THEREFORE, the parties hereto, intending to be legally bound, agree as follows:

 1. Grant of Performance Share Units. Pursuant to Section VI of the Plan, the Company hereby grants to the Grantee an Award of [MAX
AWARD] Performance Stock Units (the “Award”), which amount represents the maximum award and shall be subject to reduction by the Committee as provided by this Agreement and the Plan. Each Performance Stock Unit
(“PSU”) represents the right to receive one share of Common Stock, subject to the terms and conditions set forth in this Agreement and the Plan. 
 2. Performance Goal. Subject to adjustment as provided in Section 3 below, the Award shall become vested if the Company’s [PERFORMANCE METRIC] is equal to
[$            ] for the period commencing on [PERFORMANCE PERIOD] (the “Performance Period”). For purposes of this provision, [PERFORMANCE METRIC] shall be determined based
on the financial information reported in the Company’s quarterly and annual reports filed with the Securities and Exchange Commission, provided that such amount shall be adjusted to take into account income charges for restructuring,
extraordinary, unusual or non-recurring items, discontinued operations and cumulative effect of accounting changes, each as defined by Generally Accepted Accounting Principles or changes in tax laws, as identified on the face of the income
statements or in the footnotes thereto, or in the Management Discussion and Analysis section of the Company’s quarterly and annual reports filed with the Securities and Exchange Commission. 

3. Additional Performance Goals. Pursuant to Section VI of the Plan, the Committee has elected to eliminate or reduce the number of shares of
stock under the Award as provided in this Agreement. On or before [APPLICABLE DATE], the Committee shall review the Company’s overall performance based on the criteria and factors provided in Exhibit 1 which sets forth additional Performance
Goals and provides for the reduction in the number of PSUs subject to this Award in accordance with this Agreement and the Plan. 
 4.
Determination of Performance. Following completion of the Performance Period and prior to [APPLICABLE DATE], the Committee will review and certify in writing whether the Performance Goal set forth in Section 2 of this Agreement has been
achieved and whether the additional Performance Goals described in Section 3 of this Agreement have been achieved. At that time, the Committee will decide whether and to the extent it is required to exercise its negative discretion to reduce
the number of PSUs subject to this Agreement as provided by this Agreement. Following the issuance of this certification, the number of PSUs that the Grantee shall earn, if any, shall be final, conclusive and binding on the Grantee, and on all other
persons, to the maximum extent permitted by law. 

 5. Vesting of PSUs. The PSUs are subject to forfeiture until they vest. Except as otherwise provided
herein, the PSUs will vest and become non-forfeitable on [APPLICABLE DATE], subject to (i) the achievement of the Performance Goal, (ii) the exercise of the Committee’s negative discretion to reduce the number of PSUs subject to this
Award as provided in this Agreement and the Plan based upon achievement of the additional Performance Goals, and (iii) the Grantee’s “Continuous Service” with the Company from the Grant Date through [APPLICABLE DATE]. 

6. Termination of Continuous Service. 
 6.1 Except as otherwise expressly provided in this Agreement, if the Grantee’s employment with the Company terminates for any reason at any time prior to [APPLICABLE DATE], all of the PSUs shall be
automatically forfeited upon such termination of Continuous Service and neither the Company nor any Affiliate shall have any further obligations to the Grantee under this Agreement. 

6.2 Notwithstanding Section 6.1, if the Grantee’s Continuous Service terminates during the Performance Period as a result of
the Grantee’s death or Disability, the Grantee will vest on such date in a portion of the PSUs determined by multiplying (i) [TARGET AWARD] by (ii) a fraction, the numerator of which equals the number of days that the Grantee was
employed between [PERFORMANCE PERIOD BEGINNING DATE] and the date of death or Disability, and the denominator of which equals [PERFORMANCE PERIOD END DATE]. Any remaining PSUs subject to this Agreement shall be forfeited on the date of death or
Disability. 
 7. Effect of a Change in Control. If there is a Change in Control during the Performance Period, the Grantee shall be
vested in [TARGET AWARD] PSUs on the effective date of the Change in Control, which amount shall be paid no later than thirty (30) days following such Change in Control. Any remaining PSUs subject to this Agreement shall be forfeited on the
date the Change in Control occurs. 
 8. Payment of PSUs. Payment in respect of the PSUs earned for the Performance Period shall be made
in shares of Common Stock and shall be issued to the Grantee as soon as practicable following the vesting date and in any event within sixty (60) days following the vesting date. The Company shall (i) issue and deliver to the Grantee the
number of shares of Common Stock equal to the number of vested PSUs less applicable minimum tax withholding, and (ii) enter the Grantee’s name on the books of the Company as the shareholder of record with respect to the shares of Common
Stock delivered to the Grantee. 
 9. Transferability. Subject to any exceptions set forth in this Agreement or the Plan, the PSUs or the
rights relating thereto may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Grantee, except by will or the laws of descent and distribution, and upon any such transfer by will or the laws of descent
and distribution, the transferee shall hold such PSUs subject to all of the terms and conditions that were applicable to the Grantee immediately prior to such transfer. 
  

	10.	Rights as Shareholder; Dividend Equivalents. 

 10.1 The Grantee shall not have any rights of a shareholder with respect to the shares of Common Stock underlying the PSUs, including, but not limited to, voting rights and the right to receive or accrue
dividends or dividend equivalents. 

 10.2 Upon and following the vesting of the PSUs and the issuance of shares, the Grantee
shall be the record owner of the shares of Common Stock underlying the PSUs unless and until such shares are sold or otherwise disposed of, and as record owner shall be entitled to all rights of a shareholder of the Company (including voting and
dividend rights, if any). 
 11. No Right to Continued Service. Neither the Plan nor this Agreement shall confer upon the Grantee any
right to be retained in any position, as an Employee, Consultant or Director of the Company. Further, nothing in the Plan or this Agreement shall be construed to limit the discretion of the Company to terminate the Grantee’s Continuous Service
at any time, with or without Cause. 
 12. Adjustments. If any change is made to the outstanding Common Stock or the capital structure of
the Company, if required, the PSUs shall be adjusted or terminated in any manner as contemplated by Section 7 of the Plan. 
 13. Tax
Liability and Withholding. 
 13.1 The Grantee shall be required to pay to the Company, and the Company shall have the right
to deduct from any compensation paid to the Grantee pursuant to the Plan, the amount of any required statutory minimum withholding taxes in respect of the PSUs and to take all such other action as the Company deems necessary to satisfy all
obligations for the payment of such withholding taxes. As a condition of the receipt of this grant, prior to the vesting of the PSUs Grantee hereby agrees to make such arrangements as the Company may require in order to satisfy the statutory minimum
federal, state, local or foreign withholding tax obligations that the Company, in its sole discretion, determines may arise in connection with the receipt of this grant or the issuance of shares of Common Stock (the “Tax
Obligations”). Grantee understands that the Company shall not be required to issue any shares of Common Stock under the Plan unless and until such Tax Obligations are satisfied. 

13.2 The Company intends, and Grantee hereby authorizes the Company, to satisfy the Tax Obligations by withholding from the
Grantee’s vested PSUs the number of full shares of Common Stock having an aggregate market value at that time of vesting equal to the amount the Company determines are equal to the Tax Obligations, with the remainder to be satisfied by
withholding from Grantee’s wages or other cash compensation payable by the Company or your employer. To the extent the Company determines that the number of PSUs or shares of Common Stock withheld pursuant to this Paragraph is insufficient to
satisfy such Tax Obligations, Grantee hereby authorizes the Company or Grantee’s employer to deduct from Grantee’s compensation the additional amounts necessary to fully satisfy the Tax Obligations. If the Company chooses not to deduct
such amount from Grantee’s compensation, Grantee agrees to pay the Company, in cash or by check, the additional amount necessary to fully satisfy the Tax Obligations. Grantee hereby agrees to take any further actions and execute any additional
documents as may be necessary to effectuate the provisions of this Paragraph. 
 13.3 Notwithstanding any action the Company
takes with respect to any or all income tax, social insurance, payroll tax, or other tax-related withholding (“Tax-Related Items”), the ultimate liability for all Tax-Related Items is and remains the Grantee’s responsibility
and the Company (i) makes no representation or undertakings regarding the treatment of any Tax-Related Items in connection with the grant, vesting or settlement of the PSUs or the subsequent sale of any shares, and (ii) does not commit to
structure the PSUs to reduce or eliminate the Grantee’s liability for Tax-Related Items. 

 14. Non-competition and Non-solicitation. 

14.1 In consideration of the PSUs, the Grantee agrees and covenants not to: 

(a) contribute his or her knowledge, directly or indirectly, in whole or in part, as an employee, officer, owner, manager, advisor,
consultant, agent, partner, director, shareholder, volunteer, intern or in any other similar capacity to an entity engaged in the same or similar business as the Company and its Affiliates, including those engaged in the business of specialty
maintenance and construction services required in maintaining high temperature and high pressure piping systems and vessels utilized extensively in heavy industry, which service includes, but is not limited to, inspection and assessment, field heat
treating, leak repair, fugitive emissions control, hot tapping, field machining, technical bolting, field valve repair asset integrity and reliability management services and products involving advanced inspection and engineering assessment and the
sale and service of waterworks valves and any other services Team currently provides for a period of two (2) years following the Grantee’s termination of Continuous Service; 

(b) directly or indirectly, solicit, hire, recruit, attempt to hire or recruit, or induce the termination of employment of any employee
of the Company or its Affiliates for eighteen (18) months following the Grantee’s termination of Continuous Service; or 
 (c) directly or indirectly, solicit, contact (including, but not limited to, e-mail, regular mail, express mail, telephone, fax, and instant message), attempt to contact or meet with the current customers
of the Company or any of its Affiliates for purposes of offering or accepting goods or services similar to or competitive with those offered by the Company or any of its Affiliates for a period of two (2) years following the Grantee’s
termination of Continuous Service. 
 14.2 If the Grantee breaches any of the covenants set forth in Section 14.1:

 (a) all unvested PSUs shall be immediately forfeited; and 

(b) the Grantee hereby consents and agrees that the Company shall be entitled to seek, in addition to other available remedies, a
temporary or permanent injunction or other equitable relief against such breach or threatened breach from any court of competent jurisdiction, without the necessity of showing any actual damages or that money damages would not afford an adequate
remedy, and without the necessity of posting any bond or other security. The aforementioned equitable relief shall be in addition to, not in lieu of, legal remedies, monetary damages or other available forms of relief. 

15. Compliance with Law. The issuance and transfer of shares of Common Stock in connection with the PSUs shall be subject to compliance by the
Company and the Grantee with all applicable requirements of federal and state securities laws and with all applicable requirements of any stock exchange on which the Company’s shares of Common Stock may be listed. No shares of Common Stock
shall be issued or transferred unless and until any then applicable requirements of state and federal laws and regulatory agencies have been fully complied with to the satisfaction of the Company and its counsel. 

16. Notices. Any notice required to be delivered to the Company under this Agreement shall be in writing and addressed to the Chief Legal Officer
of the Company at the Company’s principal corporate offices. Any notice required to be delivered to the Grantee under this Agreement shall be in writing and addressed to the Grantee at the Grantee’s address as shown in the records of the
Company. Either party may designate another address in writing (or by such other method approved by the Company) from time to time. 

 17. Governing Law. This Agreement will be construed and interpreted in accordance with the laws of
the State of Texas without regard to conflict of law principles. 
 18. Interpretation. Any dispute regarding the interpretation of this
Agreement shall be submitted by the Grantee or the Company to the Committee for review. The resolution of such dispute by the Committee shall be final and binding on the Grantee and the Company. 

19. PSUs Subject to Plan. This Agreement is subject to the Plan as approved by the Company’s shareholders. The terms and provisions of the
Plan, as it may be amended from time to time, are hereby incorporated herein by reference. In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan
will govern and prevail. 
 20. Successors and Assigns. The Company may assign any of its rights under this Agreement. This Agreement
will be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement will be binding upon the Grantee and the Grantee’s beneficiaries, executors,
administrators and the person(s) to whom the PSUs may be transferred by will or the laws of descent or distribution. 
 21. Severability.
The invalidity or unenforceability of any provision of the Plan or this Agreement shall not affect the validity or enforceability of any other provision of the Plan or this Agreement, and each provision of the Plan and this Agreement shall be
severable and enforceable to the extent permitted by law. 
 22. Discretionary Nature of Plan. The Plan is discretionary and may be
amended, cancelled or terminated by the Company at any time, in its discretion. The grant of the PSUs in this Agreement does not create any contractual right or other right to receive any PSUs or other Awards in the future. Future Awards, if any,
will be at the sole discretion of the Company. Any amendment, modification, or termination of the Plan shall not constitute a change or impairment of the terms and conditions of the Grantee’s employment with the Company. 

23. Amendment. The Committee has the right to amend, alter, suspend, discontinue or cancel the PSUs, prospectively or retroactively; provided,
that, no such amendment shall adversely affect the Grantee’s material rights under this Agreement without the Grantee’s consent. 

24. Section 162(m). All payments under this Agreement are intended to constitute “qualified performance-based compensation” within
the meaning of Section 162(m) of the Code. This Award shall be construed and administered in a manner consistent with such intent. 
 25.
Section 409A. This Agreement is intended to comply with Section 409A of the Code or an exemption thereunder and shall be construed and interpreted in a manner that is consistent with the requirements for avoiding additional taxes or
penalties under Section 409A of the Code. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement comply with Section 409A of the Code and in no event shall the
Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by the Grantee on account of non-compliance with Section 409A of the Code. 

 26. No Impact on Other Benefits. The value of the Grantee’s PSUs is not part of his or her
normal or expected compensation for purposes of calculating any severance, retirement, welfare, insurance or similar employee benefit. 
 27.
Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together will constitute one and the same instrument. Counterpart signature pages to this Agreement transmitted by
facsimile transmission, by electronic mail in portable document format (.pdf), or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document, will have the same effect as physical delivery of the
paper document bearing an original signature. 
 28. Acceptance. The Grantee hereby acknowledges receipt of a copy of the Plan and this
Agreement. The Grantee has read and understands the terms and provisions thereof, and accepts the PSUs subject to all of the terms and conditions of the Plan and this Agreement. The Grantee acknowledges that there may be adverse tax consequences
upon the vesting or settlement of the PSUs or disposition of the underlying shares and that the Grantee has been advised to consult a tax advisor prior to such vesting, settlement or disposition. 

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

 

			
	TEAM, INC.
		
	By:	 	 
	Name:	 	 
	Title:	 	 
	
	ACCPETED AND AGREED:
	
	GRANTEE
		
	By:	 	 
	Name:	 	 
	Date:	 	 

 Performance Share Award Agreement 

Exhibit 1 

The Committee has determined that the determination of the number of PSUs awarded shall be based upon the achievement of the Additional
Performance Goals at the end of the Performance Cycle. The Committee shall use its negative discretion to reduce the Award as follows: 
 1.
Target Award. The “Target Award” for Participant shall be [TARGET AWARD] PSUs. The actual number of PSUs received by Participant following the exercise of the Committee’s negative discretion as set forth herein will be
determined as a multiple of the Target Award level, based upon the Company’s financial performance. 
 2. Performance Cycle. For
purposes of determining the achievement of the Additional Performance Goals, the Committee will measure the Company’s financial performance during the period [ADDITIONAL PERFORMANCE PERIOD]. 

3. Additional Performance Goals. Financial performance will be measured based on the Company’s [ADDITIONAL PERFORMANCE METRIC] during the
Performance Cycle. In determining [ADDITIONAL PERFORMANCE METRIC] for this purposes, the Committee shall use [ADDITIONAL PERFORMANCE METRIC] as reported in the Company’s quarterly and annual reports filed with the Securities and Exchange
Commission which shall be adjusted to take into account income charges for restructuring, extraordinary, unusual or non-recurring items, discontinued operations and cumulative effect of accounting changes, each as defined by Generally Accepted
Accounting Principles or changes in tax laws, as identified on the face of the income statements or in the footnotes thereto, or in the Management Discussion and Analysis section of the Company’s quarterly and annual reports filed with the
Securities and Exchange Commission. 
  

	4.	Calculation of PSU Amount. The Committee shall reduce the number of PSUs subject to this Award as follows: 

A. [$ AMOUNT] shall be the “Minimum Performance Threshold” for the Performance Cycle. If the Company’s [ADDITIONAL
PERFORMANCE METRIC] is less than the Minimum Performance Threshold, no amount should be received under the Award. 
 B. If the
Minimum Performance Threshold has been met, the number of PSUs retained by Participant shall be determined based upon (i) the Target Award multiplied by (ii) the applicable percentage set forth in the Payout Range as set forth below. The
applicable Payout Range percentage shall be determined by the Committee based upon the Payout Range percentage corresponding with the Actual [ADDITIONAL PERFORMANCE METRIC] of the Company during the Performance Cycle as set forth in the following
table: 
  

					
	 Performance Level
	  	[A’DDL PERF METRIC]($MM)	  	Payout Range
	 Below Threshold level
	  		  	0
	 Threshold Level
	  	> ___ < ___	  	50 - 99%
	 Target Level
	  	> ___ < ___	  	100 - 199%
	 Above Target Level
	  	> ___ < ___	  	200 - 299%
	 Maximum Level
	  	____	  	300%

 For Actual [ADDITIONAL PERFORMANCE METRIC] that falls between two Performance Levels in the above table, the Committee
shall determine the Payout Range percentage on a pro rata basis (i.e. by interpolation). In no event will the Payout Range percentage exceed the maximum Payout Range percentage for the respective Performance Level.Exhibit 10.1

 

 

 

 

 

 

 

 

 

 

[FORM OF INCREMENTAL ASSUMPTION AGREEMENT]

 

 

 

 

 

INCREMENTAL ASSUMPTION AGREEMENT

 

 

dated as of January 6, 2015,

 

 

relating to the

 

SENIOR SECURED REVOLVING CREDIT AGREEMENT

 

 

dated as of October 17, 2014,

 

among

 

 

CAPITALA
FINANCE CORP.,

as Borrower,

 

The Lenders from Time to Time Party Thereto,

 

 

and

 

 

ING CAPITAL LLC,

as Administrative Agent,

Arranger and Bookrunner

 

 

 

 

 

    	 

    	 

    

 

INCREMENTAL ASSUMPTION
AGREEMENT, dated as of January 6, 2015 (this “Assumption Agreement”), by and among CAPITALA
FINANCE CORP. (the “Borrower”), ING CAPITAL LLC, in its capacity as Administrative Agent (the “Administrative
Agent”), and each lender set forth on Schedule 1 hereto as an “Increasing Lender” (the “Increasing
Lenders” and each an “Increasing Lender”), and each lender set forth on Schedule 1 hereto as an “Assuming
Lender” (the “Assuming Lenders” and each an “Assuming Lender” and, together with the
Increasing Lenders, the “Incremental Lenders” and each an “Incremental Lender”), relating
to the SENIOR SECURED REVOLVING CREDIT AGREEMENT dated as of October 17, 2014 (as amended, restated, supplemented or otherwise
modified from time to time, the “Credit Agreement”), among the Borrower, the Administrative Agent and the several
lenders from time to time party to the Credit Agreement.

 

A.The Borrower has
requested that each Incremental Lender provide an additional Commitment in an aggregate amount equal to the amount set forth opposite
such Incremental Lender’s name on Schedule 1 hereto (each an “Incremental Commitment”), in each case pursuant
to Section 2.06(f) of the Credit Agreement.

 

B.Each Incremental
Lender is willing to make such an Incremental Commitment to the Borrower on the terms and subject to the conditions set forth herein
and in the Credit Agreement.

 

Accordingly, in consideration
of the mutual agreements herein contained and other good and valuable consideration, the sufficiency and receipt of which are hereby
acknowledged, the parties hereto agree as follows:

 

SECTION 1. Defined
Terms; Interpretation; Etc. Capitalized terms used and not defined herein shall have the meanings assigned to such terms
in the Credit Agreement. The rules of construction set forth in Section 1.03 of the Credit Agreement shall apply equally to
this Assumption Agreement. This Assumption Agreement shall be a “Loan Document” for all purposes of the Credit Agreement
and the other Loan Documents.

 

SECTION 2. Incremental
Commitment. a) Pursuant to Section 2.06(f) of the Credit Agreement and subject to the terms and conditions hereof, each Incremental
Lender hereby agrees to make the applicable Incremental Commitment to the Borrower effective on and as of the Increase Effective
Date (as defined below). The Incremental Commitment shall constitute an additional “Commitment” and a “Commitment
Increase” for all purposes of the Credit Agreement and the other Loan Documents, and the Increase Effective Date shall be
the “Commitment Increase Date” of the Incremental Commitment for purposes of Section 2.06(f) of the Credit Agreement.

 

(b)The terms of the
Incremental Commitment shall be the same as the other Commitments made under the Credit Agreement.

 

(c)On the Increase
Effective Date, in connection with the adjustments to any outstanding Loans and participation interests contemplated by Section
2.06(f)(iv) of the Credit Agreement, each Incremental Lender shall make a payment to the Administrative Agent, for account of the
other Lenders, in an amount calculated by the Administrative Agent in accordance with such section, so that after giving effect
to such payment and to the distribution thereof to the other Lenders in accordance with such section, the Loans are held ratably
by the Lenders in accordance with the respective Commitments of such Lenders (after giving effect to the Incremental Commitment
and any other Commitment Increases, if any, occurring on the date hereof).

 

    	 

    	 

    

 

(d)As
of the Increase Effective Date, each Incremental Lender which is also designated as an “Assuming Lender” on Exhibit
1 (each an “Assuming Lender”) shall become a Lender under the Credit Agreement and shall have all rights and
obligations of a Lender under the Credit Agreement and any other documents or instruments delivered pursuant thereto.

 

SECTION 3. Conditions
Precedent to Incremental Commitment. This Assumption Agreement, and the obligations of each Incremental Lender to make its
Incremental Commitment, shall become effective on and as of the Business Day (the “Increase Effective Date”)
occurring on or before January 6, 2015, on which the following conditions precedent have been satisfied:

 

(a)the Administrative
Agent shall have received counterparts of this Assumption Agreement that, when taken together, bear the signatures of the Borrower,
the Administrative Agent and the Incremental Lenders;

 

(b)on the date hereof,
each of the conditions set forth or referred to in Section 2.06(f)(i) of the Credit Agreement shall be satisfied, and pursuant
to Section 2.06(f)(ii)(x) of the Credit Agreement the Administrative Agent shall have received a certificate of a duly authorized
officer of the Borrower dated the date hereof certifying as to the foregoing;

 

(c)the Administrative
Agent shall have received for the account of the Lenders the amounts, if any, payable under Section 2.13 of the Credit Agreement
as a result of the adjustments of Borrowings pursuant to Section 2(c) of this Assumption Agreement; and

 

(d)each Incremental
Lender shall have received all documented fees and expenses related to this Assumption Agreement owing on the date hereof, including
any upfront fees due to such Incremental Lender on the date hereof.

 

SECTION 4. Representations
and Warranties of the Borrower. To induce the other parties hereto to enter into this Assumption Agreement, the Borrower represents
and warrants to the Administrative Agent and each Incremental Lender that, as of the date hereof:

 

(a)This Assumption
Agreement has been duly authorized, executed and delivered by the Borrower, and constitutes a legal, valid and binding obligation
of the Borrower in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law).

 

    	2

    	 

    

 

(b)Each of the representations
and warranties made by the Borrower in or pursuant to the Loan Documents are true and correct in all material respects as if made
on such date (except to the extent they relate specifically to an earlier date, in which case they are true and correct in all
material respects as of such earlier date, and unless a representation or warranty is already qualified by materiality or by Material
Adverse Effect, in which case it is true and correct in all respects).

 

(c)No Default has
occurred and is continuing on the date hereof or shall result from the Incremental Commitment.

 

SECTION 5. Representations,
Warranties and Covenants of the Assuming Lenders. Each Assuming Lender (a) represents and warrants that (i) from and after
the Increase Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent
of the Incremental Commitment, shall have the obligations of a Lender thereunder, and (ii) it has received a copy of the Credit
Agreement, together with such other documents and information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Assumption Agreement and to make the Incremental Commitment on the basis of which it has made such
analysis and decision independently and without reliance on the Administrative Agent or any other Lender; and (b) agrees that (i)
it will, independently and without reliance on the Administrative Agent or any other Lender, and based on such documents and information
as it shall deem appropriate at the time, make its own credit decisions in taking or not taking action under the Loan Documents,
and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required
to be performed by it as a Lender.

 

SECTION 6. Consent
and Reaffirmation. (a)  each of the Obligors agrees that, notwithstanding the effectiveness of this Assumption Agreement,
the Guarantee and Security Agreement and each of the other Security Documents continue to be in full force and effect, (b) each
of the Obligors acknowledges that the terms “Revolving Credit Agreement Obligations,” “Guaranteed Obligations”
and “Secured Obligations” (each as defined in the Guarantee and Security Agreement) include any and all Loans made
now or in the future by the Incremental Lenders in respect of the Incremental Commitments and all interest and other amounts owing
in respect thereof under the Loan Documents (including all interest and expenses accrued or incurred subsequent to the commencement
of any bankruptcy or insolvency proceeding with respect to any Obligor, whether or not such interest or expenses are allowed as
a claim in such proceeding), and (c) each of the Obligors confirms its grant of a security interest in its assets as Collateral
for the Secured Obligations, all as provided in the Loan Documents as originally executed (and amended prior to the date hereof
and supplemented hereby).

 

SECTION 7. Notices.
All notices hereunder shall be given in accordance with the provisions of Section 9.01 of the Credit Agreement.

 

    	3

    	 

    

 

SECTION 8. Expenses.
The Borrower agrees to pay all reasonable and documented out-of-pocket expenses incurred by the Administrative Agent in connection
with this Assumption Agreement in accordance with the Credit Agreement, including the reasonable and documented fees, charges and
disbursements of one outside counsel for the Administrative Agent.

 

SECTION 9. Counterparts.
This Assumption Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but
one and the same contract. Delivery of an executed counterpart of a signature page of this Assumption Agreement by facsimile or
electronic transmission shall be as effective as delivery of a manually executed counterpart hereof.

 

SECTION 10. Applicable
Law; Jurisdiction; Consent to Service of Process; Other. THIS ASSUMPTION AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
UNDER THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF
NEW YORK. THE PROVISIONS OF SECTION 9.09 OF THE CREDIT AGREEMENT (AND ALL OTHER APPLICABLE PROVISIONS OF ARTICLE IX OF THE CREDIT
AGREEMENT) ARE HEREBY INCORPORATED BY REFERENCE.

 

SECTION 11. Headings.
The headings of this Assumption Agreement are for purposes of reference only and shall not limit or otherwise affect the meaning
hereof.

 

SECTION 12. No Third
Party Beneficiaries. This Assumption Agreement is intended to be solely for the benefit of the parties hereto and is not intended
to confer any benefits upon, or create any rights in favor of, any other person or entity. No person or entity other than the parties
hereto shall have any rights under or be entitled to rely upon this Assumption Agreement.

 

[Remainder of page intentionally left
blank]

 

    	4

    	 

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Assumption Agreement to be duly executed and delivered by their proper and duly authorized representatives
as of the day and year first above written.

 

	 	CAPITALA FINANCE CORP.,
	 	as Borrower
	 	 	 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	[Signature Page to Incremental Assumption Agreement]

    	 

    

 

	 	ING CAPITAL LLC,	 
	 	as Administrative Agent	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	By:		 	 
	 		Name:	 	 
	 	 	Title:	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	By:		 	 
	 	 	Name:	 	 
	 		Title:	 	 

 

    	[Signature Page to Incremental Assumption Agreement]

    	 

    

 

	 	EverBank Commercial Finance, Inc.,
	 	as Incremental Lender
	 	 	 
	 	 	 
	 	By	 
	 	Name:	 
	 	Title:	 

 

    	[Signature Page to Incremental Assumption Agreement]

    	 

    

 

	 	Bank of North Carolina,
	 	as Incremental Lender
	 	 	 
	 	 	 
	 	By	 
	 	Name:	 
	 	Title:	 

  

    	[Signature Page to Incremental Assumption Agreement]

    	 

    

 

	 	NewBridge bank,
	 	as Incremental Lender
	 	 	 
	 	 	 
	 	By	 
	 	Name:	 
	 	Title:	 

 

    	[Signature Page to Incremental Assumption Agreement]

    	 

    

 

	 	Park Sterling bank,
	 	as Incremental Lender
	 	 	 
	 	 	 
	 	By	 
	 	Name:	 
	 	Title:	 

 

    	[Signature Page to Incremental Assumption Agreement]

    	 

    

 

SCHEDULE 1

 

Increasing Lenders

 

	Lender	Incremental Commitment
	EverBank Commercial Finance, Inc.	$2,500,000

 

 

Assuming Lenders

 

	Lender	Incremental Commitment
	Bank of North Carolina	$10,000,000
	NewBridge Bank	$10,000,000
	Park Sterling Bank	$7,500,000

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00239-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00239-of-00352.parquet"}]]