Document:

EX-10.14 NON-EXCLUSIVE FINDER'S AGREEMENT

 

Exhibit 10.14

NON-EXCLUSIVE FINDER’S AGREEMENT

     This Non-Exclusive Finder’s Agreement (this “Agreement”) is made as of February 8, 2007, between
Akeena Solar, Inc., a Delaware corporation (the “Company”), and Empire Financial Group, Inc., a
Florida corporation (the “Finder”). The Finder and the Company agree:

	 	1.	 	Engagement of Finder: The Company hereby engages the Finder, and the
Finder hereby accepts such engagement, to act as the Company’s non-exclusive Finder
with respect to sales by the Company in a private placement transaction (the
“Offering”) of up to $6 million aggregate principal amount of Equity, Equity-Related or
Debt Securities (the “Securities”) of the Company to the investors during the term of
this Agreement as set forth in Section 6.
	 
	 	2.	 	Offering Procedures: The Finder will introduce the Company to
investors who the Finder reasonably believes to be “accredited investors,” as that term
is defined in Rule 501 of Regulation D promulgated under the Securities Act of 1933, as
amended (the “1933 Act”), with whom the Finder has a pre-existing substantive
relationship (the “Offerees”). The Company, however, shall have the right to accept or
reject subscriptions from Offerees, in its sole and absolute discretion, and to abandon
or terminate the Offering without any liability or obligation to the Finder.
	 
	 	3.	 	Finder’s Compensation: In consideration for the services rendered by
the Finder hereunder, the Company shall pay to the Finder, or cause the Finder to be
paid, compensation as provided in this section within 3 days of the Company’s receipt
of funds from the Offerees.

	 	(a)	 	Cash Compensation: The Company shall pay to the Finder cash
compensation equal to seven percent (7%) of the gross Offering funds received
by the Company in the Offering, payable at closing.
	 
	 	(b)	 	Warrants: The Finder shall receive three percent (3%) warrant
compensation at closing. The warrant calculation translates into 30,000
warrants per $1 million raised for either a Registered Offering or a Private
Offering. The warrants shall have an exercise price of $2.75 and an expiration
date and registration rights consistent with any warrants sold to Offerees in
the Offering, and if the Offering does not provide for the issuance of
warrants, then the warrants issued to the Finder shall have a strike price
equal to the Offering price of any Equity or Equity-Related Securities sold,
have a five-year term and cashless exercise after one year if

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	 	 	 	the underlying shares are not then registered. The warrant shares shall be subject to equitable adjustment for stock splits, stock dividends and
similar events that effect shareholders of the Company generally. The
warrant shares shall have “piggyback” registration rights in any subsequent
registration statement filed within 12 months of the final closing of the
Offering.
	 
	 	(c)	 	If, at any time prior to one year following the earlier of the
final closing on the sale of Securities pursuant to the Offering or the
termination of the Offering (the “Term”), the Company sells, in a private
transaction, any type of security to an investor with whom substantial
negotiations (not merely an introductory call but involving terms and/or
conditions, of investment) were undertaken by the Company and the investor
during the Term, the Company shall pay the Finder the compensation to which it
would be entitled under paragraph 3 if the transaction had occurred during the
Term.

	 	4.	 	For purposes of determining the Finder’s compensation under this Section 3, the
gross offering proceeds received by the Company upon closing in the Offering(s) shall
include any amounts paid to the Company by investors in respect to an exercise or
conversion of any of the Securities, including the value allocated to any Securities
not issued pursuant to a “cashless exercise” or similar provision, whenever actually
received by the Company.

Certain Matters Relating to Finder’s Duties:

	 	(a)	 	The Finder’s responsibilities shall be limited to introducing
potential investors to the Company that the Finder has ascertained to be
“accredited investors. Finder shall not use any general solicitation or general
advertising within the meaning of the applicable securities laws in connection
with any offering. The Finder shall have no responsibility to participate or
assist in any negotiations between any potential investor and the Company. The
Finder shall comply with all rules and regulations applicable to finder as a
registered broker-dealer in all jurisdictions in which the Finder undertakes
any activities on behalf of the Company. Further, the Finder shall have no
responsibility for fulfilling any SEC reporting or filing requirements that
relate to the Company; provided, however, that the Finder agrees to provide the
Company with reasonable assistance related to any registration, qualification
or other requirements of applicable securities laws and other regulatory
matters, upon request of the Company.

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	 	(b) 	 	The Finder agrees to introduce the Company to Offerees only in
states in which the Finder has been advised by the Company that offers and sales of
Securities can be legally made by the Company.

	 	(c)	 	The Finder shall perform its duties under this Agreement in a
manner consistent with, and follow all of, the instructions of the Company.
Such performance shall include, but not be limited to, the delivery to each
Offeree of a current copy of the Private Placement Memorandum, Subscription
Agreement and any Offering Questionnaire and/or similar documents provided to
the Finder by the Company, as such documents may be amended from time to time
by the Company and delivered to the Finder. The Finder shall consecutively
number each copy of the Private Placement Memorandum (which will include the
first letter of the Finder’s name or other identifying mark sufficient to
designate an Offeree introduced by the Finder); keep a log of when and to whom
each copy of the Private Placement Memorandum is given, with the Private
Placement Memorandum numbers; maintain a copy of any written information the
Finder obtains regarding the suitability of each Offeree; and only use the
Private Placement Memorandum in introducing Offerees to the Company. Finder
shall make no representations or warranties, or provide any information to
Offerees not approved or provided by the Company. The Finder shall provide
this log and all such written information to the Company at any time and
promptly upon request of the Company at the termination of this Agreement. The
Company shall, promptly following execution of this Agreement, provide the
Finder with a written list of prospective Offerees that the Company does not
want the Finder to contact. The Finder agrees to not contact the persons on
such list. The Finder shall not be entitled to the compensation set forth in
Section 3 with respect to any investment made by any investor that did not
directly derive from the Finder’s performance of its responsibilities pursuant
to this Agreement.
	 
	 	(d)	 	The Finder is and will hereafter act as an independent
contractor and not as an employee of the Company and nothing in this Agreement
shall be interpreted or construed to create any employment, partnership, joint
venture, or other relationship between the Finder and the Company. The Finder
will not hold itself out as having, and will not state to any person that the
Finder has, any relationship with the Company other than as an independent
contractor. The Finder shall have no right or power to find or create any
liability or obligation for or in the name of the Company or to sign any
documents on behalf of the Company.

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	 	5.	 	Right of First Offer. In consideration for the Finder acting as the
finder in connection with the proposed Offering and provided that there is a final closing
whereby the Finder identified investors who subscribed for at least 90% of the final
closing amount, the Company grants the Finder a right of first refusal to serve as
the Company’s non-exclusive placement agent in connection with any financial
transaction for a period of 1 year from the closing of the Offering. In the event
the Company advises the Finder that it desires to effect any offering of securities,
the Company and the Finder will negotiate in good faith the terms of the Finder’s
engagement in a separate agreement that will set forth, among other matters,
compensation for the Finder in an amount to be mutually agreed upon by the parties.

	 	6.	 	Termination of Agreement. Either party may terminate this Agreement by
notifying the other party in writing upon a material breach by that other party, unless
such breach is curable and is in fact cured within 15 days after such notice. This
Agreement will otherwise terminate upon completion or termination of the Offering. The
Company may terminate this Agreement following thirty 30 days after the date hereof
upon written notice. Notwithstanding the foregoing, all provisions of this Agreement
other than Sections 1, 2 and 3 shall survive the termination of this Agreement.
	 
	 	7.	 	Indemnification. The Company and the Finder each shall indemnify and
defend the other and the other’s affiliates, directors, officers, employees, agents,
consultants, attorneys, accountants and other representatives (each an “Indemnified
Person”) and shall hold each Indemnified Person harmless, to the fullest extent
permitted by law, from and against any and all claims, liabilities, losses, damages and
expenses (including reasonable attorney’s fees and costs), as they are incurred, in
connection with the Offering, resulting from the indemnifying party’s negligence, bad
faith or willful misconduct in connection with the Offering, any violation by the
indemnifying party (not caused by an Indemnified Person) of Federal or state securities
laws in connection with the Offering, or any breach by the indemnifying party of this
Agreement. In case any litigation or proceeding shall be brought against any
Indemnified Person under this section, the indemnifying party shall be entitled to
assume the defense of such litigation or proceeding with counsel of the indemnifying
party’s choice at its expense (in which case the indemnifying party shall not be
responsible for the fees and expenses of any separate counsel retained by such
Indemnified Person, except in the limited circumstances described below in this
section); provided, however, that such counsel shall be reasonably satisfactory to the
Indemnified Person. Notwithstanding the indemnifying party’s election to assume the
defense of such litigation or proceeding (a) such Indemnified Person shall have the
right to employ separate counsel and to participate in the defense of such litigation
or proceeding, and (b) the indemnifying party shall bear the

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	 	 	 	reasonable fees, costs and expenses of separate counsel if (but only if) the use of counsel selected by the
indemnifying party to represent such Indemnified Person would present such counsel
with a conflict of interest under applicable laws or rules of professional conduct.
An Indemnified Person shall not have the right to settle such litigation under
circumstances in which the indemnifying party does not consent to the settlement.
An indemnifying party’s obligations shall be limited to the amount of proceeds or
payments received in connection with the sale of Securities in the Offering.

	 	8.	 	Confidentiality of Offeree Information. The Company acknowledges that
the identity of the Offerees, and all confidential information about Offerees received
by the Company from an Offeree or the Finder, is confidential information of the Finder
and may not be shared with any other person without the consent of the Finder, other
than pursuant to any requirements of applicable law.
	 
	 	9.	 	Notices. Any notice, consent, authorization or other communication to
be given hereunder shall be in writing and shall be deemed duly given and received when
delivered personally, when transmitted by fax, three days after being mailed by first
class mail, or one day after being sent by a nationally recognized overnight delivery
service, charges and postage prepaid, properly addressed to the party to receive such
notice, at the following address or fax number for such party (or at such other address
or fax number as shall hereafter be specified by such party by like notice):

	 	(a)	 	If to the Company, to:

Barry Cinnamon

Chairman, Chief Exec. Officer

605 University Avenue

Los Gatos, CA 95032

Phone: (408) 395-7774

Fax: (408) 395-7979

Email: barry@akeena.net

With a copy to:

Haynes and Boone, LLP

153 East 53d Street

Suite 4900

New York, New York, 10022

Attn: Harvey J. Kesner, Esq.

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	 	(b)	 	If to the Finder, to:

Bill Corbett

Managing Director

150 California Street, 21st Floor

San Francisco, CA 94111

Phone: (415) 956-4253

Fax: (415) 956-4192

E-Mail: bcorbett@empirenow.com

	 	10.	 	Company to Control Transactions. The prices, terms and conditions
under which the Company shall offer or sell any Securities shall be determined by the
Company in its sole discretion. The Company shall have the authority to control all
discussions and negotiations regarding any proposed or actual offering or sale of
Securities. Nothing in this Agreement shall obligate the Company to actually offer or
sell any Securities or consummate any transaction. The Company may terminate any
negotiations or discussions at any time and reserves the right not to proceed with any
offering or sale of Securities. Compensation pursuant to this Agreement shall only be
paid to the Finder in the event of an actual Closing of the Offering to an Offeree
introduced by Finder.
	 
	 	11.	 	Confidentiality of Company Information. The Finder, and its officers,
directors, employees and agents shall maintain in strict confidence and not copy,
disclose or transfer to any other party (1) all confidential business and financial
information regarding the Company and its affiliates, including without limitation,
projections, business plans, marketing plans, product development plans, pricing,
costs, customer, vendor and supplier lists and identification, channels of
distribution, and terms of identification of proposed or actual contracts and (2) all
confidential technology of the Company. In furtherance of the foregoing, the Finder
agrees that it shall not transfer, transmit, distribute, download or communicate, in
any electronic, digitized or other form or media, any of the confidential technology of
the Company. The foregoing is not intended to preclude the Finder from utilizing,
subject to the terms and conditions of this Agreement, the Private Placement Memorandum
and/or other documents prepared or approved by the Company for use in the Offering.

All communications regarding any possible transactions, requests for due diligence
or other information, requests for facility tours, product demonstrations or
management meetings, will be submitted or directed to the Company, and the Finder
shall not contact any employees, customers, suppliers or contractors of the Company
or its affiliates without express permission of Company. Nothing in

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this Agreement
shall constitute a grant of authority to the Finder or any
 representatives thereof to remove, examine or copy any particular document or types
of information regarding the Company, and the Company shall retain control over the
particular documents or items to be provided, examined or copied. If the Offering is
not consummated, or if at any time the Company so requests, the Finder and its
representatives will return to the Company all copies of information regarding the
Company in their possession.

The provisions of this Section shall survive any termination of this Agreement.

	 	12.	 	Press Releases, Etc. The Company shall control all press releases or
announcements to the public. Furthermore, in advance of all communications with
Offerees with respect to the Offering, the Finder shall first obtain an appropriate
authorization from the Offeree that (a) the Offeree is willing to accept information
from an unidentified publicly traded company and (b) upon delivery of the
communication, the Offeree shall be deemed to have received confidential non-public
information and will rely only up such Offeree’s advisors for the purpose of trading in
any securities of the Company. Absent such an authorization, the Finder shall not
disclose to any third parties the fact that discussions or negotiations are taking
place concerning a possible transaction involving the Company, or the status or terms
and conditions thereof.
	 
	 	13.	 	Due Diligence: Neither the Company, nor any of its directors, officers
or shareholders, should, in any way rely on the Finder to perform any due diligence
with respect to the Company. It is expressly understood and agreed that to the extent
due diligence is conducted; it will be conducted by the investors.
	 
	 	14.	 	Expenses, Etc. The compensation described in Section 3 of this
Agreement shall be the Finder’s sole compensation for all of its services and efforts
to the Company and its affiliates, in connection with any offering or placement of
Securities. However, while the Finder shall pay all of its own costs and expenses
exceeding ten thousand ($10,000) in carrying out its activities hereunder; the Company
will reimburse the Finder for the first $10,000 of aforementioned expenses after they
have been incurred by the Finder, and an itemized accounting has been provided to the
Company. The Finder shall be responsible for any compensation, fees, commissions or
payments of its employees, agents, attorneys, representatives, co- Finders or other
persons or entities utilized by it in connection with its activities on behalf of the
Company, and the Finder will indemnify and hold harmless the Company and its affiliates
from the claims of any such persons or entities. The Finder shall not engage any
subfinder, subagents, representatives or other persons without the consent of the
Company, and the Finder shall not pay any person that is non a registered broker-dealer
any amount in connection with the offer or sale of the Securities.

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	 	15.	 	Compliance with Laws. The Finder represents and warrants that it is a
duly registered broker/dealer and in good standing with the SEC, NASD and the State of
California and has and shall maintain such registrations as well as all other necessary
licenses and permits to conduct its activities under this Agreement, which it shall
conduct in compliance with applicable federal and state laws relating to a private
placement under Regulation D of the 1933 Act. The Finder represents that it is not a
party to any other agreement, which would conflict with or interfere with the terms and
conditions of this Agreement.
	 
	 	16.	 	Assignment Prohibited. No assignment of this Agreement shall be made
without the prior written consent of the other party.
	 
	 	17.	 	Amendments. Neither party may amend this Agreement or rescind any of
its existing provisions without the prior written consent of the other party.
	 
	 	18.	 	Governing Law. This Agreement shall be deemed to have been made in the
State of California and shall be construed, and the rights and liabilities determined,
in accordance with the law of the State of California, without regard to the conflicts
of laws rules of such jurisdiction.
	 
	 	19.	 	Waiver. Neither Finder’s nor the Company’s failure to insist at any
time upon strict compliance with this Agreement or any of its terms nor any continued
course of such conduct on their part shall constitute or be considered a waiver by
Finder or the Company of any of their respective rights or privileges under this
Agreement.
	 
	 	20.	 	Severability. If any provision herein is or should become inconsistent
with any present or future law, rule or regulation of any sovereign government or
regulatory body having jurisdiction over the subject matter of this Agreement, such
provision shall be deemed to be rescinded or modified in accordance with such law, rule
or regulation. In all other respects, this Agreement shall continue to remain in full
force and effect.
	 
	 	21.	 	Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, and will become effective and
binding upon the parties at such time as all of the signatories hereto have signed a
counterpart of this Agreement. All counterparts so executed shall constitute one
Agreement binding on all of the parties hereto, notwithstanding that all of the parties
are not signatory to the same counterpart. Each of the parties hereto shall sign a
sufficient number of counterparts so that each party will receive a fully executed
original of this Agreement.

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	 	22.	 	Entire Agreement. This Agreement and all other agreements and
documents referred herein constitutes the entire agreement between the Company and the
Finder. No other agreements, covenants, representations or warranties, express or
implied, oral or written, have been made by any party hereto to any other party
concerning the subject matter hereof. All prior and contemporaneous conversations,
negotiations, possible and alleged agreements, representations, covenants and
warranties concerning the subject matter hereof are merged herein. This is an
integrated Agreement.
	 
	 	23.	 	Arbitration. The parties agree that this Agreement and all
controversies which may arise between the Finder and the Company, whether occurring
prior, on or subsequent to the date of this Agreement, will be determined by
arbitration. The parties understand that:

	 	(a)	 	Arbitration is final and binding on the parties.
	 
	 	(b)	 	The parties are waiving their right to seek remedies in court,
including the right to a jury trial.
	 
	 	(c)	 	Pre-arbitration discovery is generally more limited than and
different from court proceedings.
	 
	 	(d)	 	The arbitrators’ award is not required to include factual
findings or legal reasoning and any party’s right to appeal or to seek
modification or rulings by the arbitrators is strictly limited.
	 
	 	(e)	 	The panel of arbitrators will typically include a minority of
arbitrators who were or are affiliated with the securities industry.

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     The parties agree that any arbitration under this Agreement will be held at the facilities of
and before an Arbitration Panel appointed by the National Association of Securities Dealers, Inc.
(“NASD”), or if the NASD refuses to accept jurisdiction, then before JAMS/ENDISPUTE in San
Francisco, California. The award of the arbitrators, or of the majority of them, will be final,
and judgments upon the award may be entered in any court, state or federal, having jurisdiction.
The parties hereby submit themselves and their personal representatives to the jurisdiction of any
state or federal court for the purpose of such arbitration and entering such judgment.

     Any forbearance to enforce an agreement to arbitrate will not constitute a waiver of any
rights under this Agreement except to the extent stated herein.

     THIS AGREEMENT IS GOVERNED BY A PRE-DISPUTE ARBITRATION CLAUSE CONTAINED IN PARAGRAPH 23 OF
THIS AGREEMENT

	 	 	 	 	 
	 	Empire Financial Group, Inc. (the “Finder”)

 	 
	 	By:  	/s/ Bill Corbett
 	 
	 	 	Bill Corbett 	 
	 	 	Title:  	Managing Director 	 
	 
	 	Akeena Solar, Inc.. (the “Company”)

 	 
	 	By:  	/s/
David “Lad” Wallace
 	 
	 	 	David “Lad” Wallace 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

Page 10Exhibit 10.1

 

EXHIBIT 10.1

EMPLOYMENT AGREEMENT

          This Employment Agreement (this “Agreement”), effective as of the date of the consummation of
the initial public offering of common stock of Triangle Capital Corporation (the “Effective Date”),
is entered into by and among Triangle Capital Corporation, a Maryland corporation (the “Company”),
and Garland S. Tucker, III (the “Executive”).

W I T N E S S E T H:

          WHEREAS, the Company desires to induce the Executive to enter into an agreement of employment
with the Company for the period provided in this Agreement; and

          WHEREAS, the Executive is willing to accept such employment on a full-time basis, all in
accordance with the terms and conditions set forth below;

          NOW, THEREFORE, for and in consideration of the mutual covenants contained herein, the parties
hereto hereby covenant and agree as follows:

          1. Employment

               (a) The Company hereby agrees to employ the Executive, and the Executive hereby agrees to
accept such employment with the Company, beginning on the Effective Date and continuing for the
period set forth in Section 2 hereof, all upon the terms and conditions hereinafter set forth.

               (b) The Executive affirms and represents that as of the Effective Date, he is under no
obligation to any former employer or other party that is in any way inconsistent with or imposes
any restriction on the Executive’s acceptance of employment hereunder with the Company, the
employment of the Executive by the Company, or the Executive’s undertakings under this Agreement.

          2. Term of Employment

               (a) Unless earlier terminated as provided in this Agreement, the term of the Executive’s
employment pursuant to this Agreement shall be for a period beginning on the Effective Date and
ending on the second anniversary of the Effective Date (the “Initial Term”).

               (b) The term of the Executive’s employment under this Agreement shall be automatically renewed
for additional one-year terms (each a “Renewal Term”), unless earlier terminated as provided in
this Agreement, upon the expiration of the Initial Term or any Renewal Term unless the Company or
the Executive delivers to the other, at least three (3) months prior to the expiration of the
Initial Term or the then current Renewal Term, as the case may be, a written notice specifying that
the term of the Executive’s employment will not be renewed at the end of the Initial Term or such
Renewal Term, as the case may be. The Initial Term together with any Renewal Terms shall
hereinafter be referred to as the “Employment Term.”

 

 

          3. Duties. The Executive shall be employed as the President and Chief Executive
Officer of the Company, shall faithfully and competently perform such duties as inherent in such
position and as are specified in the Bylaws of the Company. The Executive shall perform his duties
principally at the offices of the Company in Raleigh, North Carolina, with such travel to such
other locations from time to time as the positions of President and Chief Executive Officer may
reasonably demand. Except as may otherwise be approved in advance by the Board of Directors of the
Company, and except during vacation periods and reasonable periods of absence due to sickness,
personal injury or other disability, the Executive shall devote his full business time throughout
the Employment Term to the services required of him hereunder. The Executive shall render his
business services exclusively to the Company and its subsidiaries during the Employment Term and
shall use his best efforts, judgment and energy to improve and advance the business and interests
of the Company and its subsidiaries in a manner consistent with the duties of his position.
Nothing contained in this Section 3 shall preclude the Executive from performing services for
charitable or not-for-profit community organizations, provided that such activities do not
interfere with the Executive’s performance of his duties and responsibilities under this Agreement.

          4. Salary; Bonuses; Special Bonuses.

               (a) Salary. As compensation for the performance by the Executive of the services to
be performed by the Executive hereunder during the Employment Term, the Company shall pay the
Executive a base salary at the annual rate of Two Hundred Sixty-Five Thousand Dollars ($265,000)
(said amount, together with any increases thereto as may be authorized from time to time by the
Compensation Committee of the Board of Directors of the Company in its sole discretion, being
hereinafter referred to as “Salary”). Any Salary payable hereunder shall be paid in regular
intervals in accordance with the Company’s payroll practices from time to time in effect.

               (b) Bonus. The Executive may receive bonus compensation from the Company in respect
of any fiscal year (or portion thereof) occurring during the Employment Term at the discretion of
the Compensation Committee of the Board of Directors of the Company. Any bonus or incentive
compensation payable pursuant to a plan that bases such bonus or incentive compensation on the
Executive’s salary shall be based on the Executive’s highest annual rate of Salary at any time
during such fiscal year. In no circumstance, however, shall the Executive’s cash bonus in any year
equal more than 100% of his then current Salary, not including any of the Executive’s tax
gross-ups, expense reimbursements or similar payments which have been approved by the Compensation
Committee of the Board of Directors.

          5. Other Benefits; Company Stock.

               (a) General. During the Employment Term, the Executive shall:

                (i) be eligible to participate in employee fringe benefits and pension and/or profit
sharing plans that may be provided by the Company for its senior executive employees in
accordance with the provisions of any such plans, as the same may be in effect from time to
time;

2

 

                (ii) be eligible to participate in the Company’s long-term incentive and equity plans
that may from time to time be adopted by the Company, including the Company’s 2007 Equity
Incentive Plan;

                (iii) be eligible to participate in any medical and health plans or other employee
welfare benefit plans that may be provided by the Company for its senior executive employees
in accordance with the provisions of any such plans, as the same may be in effect from time
to time;

                (iv) be entitled to the number of paid vacation days in each calendar year determined
by the Company from time to time for its senior executive officers, provided that such
number of paid vacation days in each calendar year shall not be less than twenty work days
(four calendar weeks); the Executive shall also be entitled to all paid holidays given by
the Company to its senior executive officers;

                (v) be entitled to sick leave, sick pay and disability benefits in accordance with any
Company policy that may be applicable to senior executive employees from time to time, and

                (vi) be entitled to reimbursement for all reasonable and necessary direct out-of-pocket
business expenses incurred by the Executive in the performance of his duties hereunder in
accordance with the Company’s normal policies from time to time in effect (including,
without limitation, relocation expenses).

          6. Confidential Information. The Executive hereby covenants, agrees and acknowledges
as follows:

               (a) The Executive shall not, without the prior express written consent of the Company,
directly or indirectly, use for any purpose any Confidential Information (as defined below) in any
way, or divulge, disclose or make available or accessible any Confidential Information to any
person, firm, partnership, corporation, trust or any other entity or third party unless (i) such
disclosure is reasonably necessary or appropriate in connection with the performance by the
Executive of his duties as an executive of the Company or (ii) such disclosure is required by
applicable law or (iii) the Executive is requested or required by a judicial or arbitration body or
governmental agency (by oral question, interrogatories, requests for information or documents,
subpoena, civil investigative demand or similar process) to disclose any such information, in which
case the Executive will (A) promptly notify the Company of such request or requirement, so that the
Company may seek an appropriate protective order and (B) cooperate with the Company, at its
expense, in seeking such an order.

               (b) “Confidential Information” means all information concerning the business and activities of
the Company and any of its affiliates, including, without limitation, concerning the portfolio
companies, investments, suppliers, employees, consultants, prospects, computer or other files,
projects, products, computer disks or other media, computer hardware or computer software programs,
underwriting, lending or investment standards, marketing plans, financial information,
methodologies, know-how, processes, trade secrets, policies, practices, projections, forecasts,
formats, operational methods, product development techniques, research,

3

 

strategies or information agreed to with third parties to be kept confidential by the Company
and any of its affiliates. Notwithstanding the immediately preceding sentence, Confidential
Information shall not include any information that is, or becomes, a part of the public domain or
generally available to the public (unless such availability occurs as a result of any breach by the
Executive of this Agreement) or any business knowledge and experience of the type usually acquired
by persons engaged in positions similar to the Executive’s position with the Company, to the extent
such knowledge and experience is non-Company specific and not proprietary to the Company or any of
its affiliates.

               (c) The Executive shall not disclose, use or make known for his or another’s benefit any
Confidential Information or use such Confidential Information in any way except as is in the best
interests of the Company in the performance of the Executive’s duties under this Agreement. The
Executive may disclose Confidential Information when required by a third party and applicable law
or judicial process, but only after providing immediate notice to the Company at any third party’s
request for such information, which notice shall include the Executive’s intent with respect to
such request.

               (d) The Executive agrees that upon termination of his employment with the Company for any
reason, the Executive shall forthwith return to the Company all Confidential Information in
whatever form maintained (including, without limitation, computer discs and other electronic
media).

               (e) The Executive acknowledges and agrees that a remedy at law for any breach or threatened
breach of the provisions of this Section 6 would be inadequate and, therefore, agrees that the
Company shall be entitled to injunctive relief in addition to any other available rights and
remedies in case of any such breach or threatened breach by the Executive (and the Executive hereby
waives any requirement that any of the Company provide a bond or other security in connection with
the issuance of any such injunction); provided, however, that nothing contained herein shall be
construed as prohibiting the Company from pursuing any other rights and remedies available for any
such breach or threatened breach.

               (f) The obligations of the Executive under this Section 6 shall, except as otherwise provided
herein, survive the termination of the Employment Term and the expiration or termination of this
Agreement.

               (g) Without limiting the generality of Section 9 hereof, the Executive hereby expressly agrees
that the foregoing provisions of this Section 6 shall be binding upon the Executive’s heirs,
successors and legal representatives.

          7. Termination.

               (a) The Executive’s employment hereunder shall be terminated upon the occurrence of any of the
following:

                (i) death of the Executive;

4

 

                (ii) the Executive’s inability to perform his duties on account of disability or
incapacity for a period of one hundred eighty (180) or more days, whether or not
consecutive, within any period of twelve (12) consecutive months;

                (iii) the Company giving written notice, at any time, to the Executive that the
Executive’s employment is being terminated “for cause” (as defined below);

                (iv) the Company giving written notice to the Executive that (A) the Executive’s
employment is being terminated other than during the two-year period commencing with a
“Change in Control” (as defined below) and other than pursuant to clauses (i), (ii) or (iii)
above, or (B) the Executive’s employment will not be renewed at the end of the applicable
Employment Term other than during the two-year period commencing with a “Change in Control”
and other than pursuant to clauses (i), (ii) or (iii) above;

                (v) the Company giving written notice that the Executive’s employment is being
terminated during the two-year period commencing with a Change in Control other than
pursuant to clauses (i), (ii) or (iii) above, or the Company giving written notice
specifying that the Executive’s employment will not be renewed at the end of the applicable
Employment Term falling within the two-year period commencing with a Change in Control other
than pursuant to clause (i), (ii) or (iii) above;

                (vi) the Executive resigning with “Good Reason” (as defined below) during the two-year
period commencing with a Change in Control;

                (vii) the Executive resigning for any reason whatsoever (whether by reason of
retirement, resignation or otherwise), except as set forth in clauses (vi) or (viii); or

                (viii) the Executive resigning for any reason whatsoever (whether by reason of
retirement, resignation or otherwise) during the period commencing on the three hundred
sixty-sixth (366th) day following a Change in Control and ending on the three hundred
ninety-sixth (396th) day following such Change in Control.

               (b) The following actions, failures and events by or affecting the Executive shall constitute
“cause” for termination within the meaning of clause (iii) above: (i) gross negligence by the
Executive in the performance of, or the willful disregard by the Executive of, his obligations
under this Agreement or otherwise relating to his employment, which gross negligence or willful
disregard continues unremedied for a period of fifteen (15) days after written notice thereof to
the Executive; (ii) acts of dishonesty by the Executive that are materially detrimental to one or
more of the Company or its subsidiaries; (iii) the Executive’s material breach of this Agreement;
(iv) the Executive being convicted of, or pleading guilty or no contest to, a felony or other crime
having as its predicate element fraud, dishonesty or misappropriation, or the entry of any order or
consent decree, whether or not liability is admitted or denied, by the Securities and Exchange
Commission against the

5

 

Executive in respect of charges that the Executive violated any provision of the Investment
Company Act of 1940 or the Securities Exchange Act of 1934, other than provisions requiring the
maintenance of proper books and records; or (v) failure by the Executive to obey the reasonable and
lawful orders and policies of the Board of Directors of the Company that are material to and
consistent with the terms of this Agreement, which failure continues unremedied for a period of
fifteen (15) days after written notice thereof to the Executive (provided that in the case of
clauses (ii) or (iii) above, the Executive shall have received written notice of such proposed
termination. For purposes of this definition, no act or failure to act by the Executive shall be
considered “willful” unless done or omitted to be done by the Executive in bad faith and without
reasonable belief that the Executive’s action or omission was in the best interests of the Company.

               (c) “Good Reason” shall mean, on and after a Change in Control, without the Executive’s
written consent, the occurrence of any of the following events:

                (i) (A) any change in the duties or responsibilities (including reporting
responsibilities) of the Executive that is inconsistent in any material and adverse respect
with the Executive’s position(s), duties, responsibilities or status with the Company
immediately prior to such Change in Control (including any material and adverse diminution
of such duties or responsibilities); provided, however, that Good Reason shall not be deemed
to occur upon a change in duties or responsibilities (other than reporting responsibilities)
that is solely and directly a result of the Company no longer being a publicly traded entity
and does not involve any other event set forth in this paragraph (i); or (B) a material and
adverse change in the Executive’s titles or offices with the Company as in effect
immediately prior to such Change in Control;

                (ii) a material reduction by the Company in the Executive’s rate of annual base salary
or annual target bonus opportunity (including any material and adverse change in the formula
for such annual bonus target) as in effect immediately prior to such Change in Control;

                (iii) any requirement of the Company that the Executive be based anywhere more than
thirty-five (35) miles from the office where the Executive is located at the time of such
Change in Control, if such relocation increases the Executive’s commute by more than twenty
(20) miles; or

                (iv) any failure of the Company to cause any successor entity to the Company in such
Change of Control unconditionally to assume all of the obligations of the Company under this
Agreement (except to the extent that such obligation would be assumed by operation of law)
prior to the effectiveness of such Change in Control.

In addition, if (i) the Executive resigns prior to a Change in Control under circumstances that
would have constituted a resignation by the Executive for Good Reason if such circumstances
occurred following a Change in Control; (ii) such event constituting Good Reason for such
resignation was at the request of a third party who had indicated an intention or taken steps
reasonably calculated to effect a Change in Control or was otherwise in anticipation of a Change

6

 

in Control; and (iii) a Change in Control involving such third party (or a party competing with
such third party to effectuate a Change in Control) or such anticipated Change in Control does
occur, then the date immediately prior to the date of such termination of employment shall be
treated as a Change in Control and such termination shall be treated as by the Executive for Good
Reason.

               (d) Consequences of Termination.

                (i) In the event that the Executive’s employment is terminated pursuant to clauses (i),
(ii) or (iv) of Section 7(a) above (except upon failure to renew pursuant to clause (B) of
Section 7(a)(iv) above), then (i) during the twenty-four (24) month period beginning on the
date of such termination, the Company shall pay to the Executive, as severance pay or
liquidated damages or both, monthly payments equal to one-twelfth of (x) the rate per annum
of his Salary at the time of such termination plus (y) either (A) if such termination occurs
prior to the payment of the Executive’s annual bonus in respect of the first fiscal year of
the Company ending after the Effective Date, 100% of the Executive’s highest annual rate of
Salary at any time during such fiscal year, or (B) if such termination does not occur prior
to such payment, the average annualized bonus the Executive was paid by the Company for the
fiscal years during the Initial Term or, if this Agreement has been renewed pursuant to
Section 2(b) above, the last two fiscal years ending prior to the date of such termination
(the amount described in sub-clauses (A) or (B), as applicable, the “Average Bonus”),
provided, however, that no such payments shall be required from and after the time that the
Executive fails to comply with his obligations under Section 10 below; and (ii) the Company
shall continue to provide the Executive with all benefits provided to Executive immediately
prior to such termination from the date of such termination until the earlier to occur of
(x) the second anniversary of such termination or (y) as to any particular benefit, the date
upon which the Executive becomes eligible to receive such equal benefit from another
employer; provided, however, that if the provision of any such benefit by the Company would
contravene any law or the terms of any employee benefit plan of the Company, or would result
in the loss of a tax benefit to which the Company otherwise would be entitled, the Company
shall pay to the Executive, on an after-tax basis (in respect of any benefit which would be
non-taxable to the Executive if provided directly by the Company), sufficient cash to allow
the Executive to purchase an equivalent benefit from an entity other than the Company. If
the Executive’s employment terminates due to failure to renew this Agreement pursuant to
clause (B) of Section 7(a)(iv) above, then any severance payment or benefit will be payable
at the absolute discretion of the Compensation Committee.

                (ii) In the event that the Executive resigns pursuant to clauses (vi) or (viii) of
Section 7(a) above or the Executive’s employment is terminated or not renewed by the Company
pursuant to clause (v) of Section 7(a) above, then (i) during the thirty-six (36) month
period beginning on the date of such termination or non-renewal, the Company shall pay to
the Executive, as severance pay or liquidated damages or both, monthly payments equal to
one-twelfth of (x) the rate pre annum of his Salary at the time of such termination or
non-renewal plus (y) the Average Bonus; and (ii) the Company shall continue to provide the
Executive with all the benefits provided to the Executive immediately prior to such
termination or non-renewal from the date of such termination

7

 

or non-renewal until the earlier to occur of (x) the third anniversary of such
termination or non-renewal, or (y) as to any particular benefit, the date upon which the
Executive becomes eligible to receive such equal benefit from another employer; provided,
however, that if the provision of any such benefit by the Company would contravene any law
or the terms of any employee benefit plan of the Company, or would result in the loss of a
tax benefit to which the Company otherwise would be entitled, the Company shall pay to the
Executive, on an after-tax basis (in respect of any benefit which would be non-taxable to
the Executive if provided directly by the Company), sufficient cash to allow the Executive
to purchase an equivalent benefit from an entity other than the Company.

                (iii) In the event this Agreement is terminated pursuant to clauses (iii) or (vii) of
Section 7(a) above, the Company shall pay to the Executive all accrued Salary up to the date
of such termination, and shall thereafter have no further obligation to the Executive.

               (e) Notwithstanding anything to the contrary expressed or implied herein, except as required
by applicable law and except as set forth in Section 7(d) above, the Company (and its affiliates)
shall not be obligated to make any payments to the Executive or on his behalf of whatever kind or
nature by reason of the Executive’s cessation of employment, other than (i) such amounts, if any,
of his Salary as shall have accrued and remained unpaid as of the date of said cessation and (ii)
such other amounts, if any, which may be then otherwise payable to the Executive pursuant to the
terms of the Company’s benefits plans, including all accrued and unused paid vacation days.

               (f) No interest shall accrue on or be paid with respect to any portion of any payments
hereunder.

               (g) For purposes of this Agreement, “Change in Control” means the occurrence of any one of the
following events:

                (i) any “person,” as such term is used in Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”) is or becomes the beneficial owner (as
defined in Exchange Act Rules 13d-3 and 13d-5, except that for purposes of this paragraph
(i) such person shall be deemed to have beneficial ownership of all shares that such person
has the right to acquire, whether such right is exercisable immediately or only after the
passage of time, directly or indirectly) of more than 35% of the total voting power of the
Company’s “Voting Stock” (as defined below). For purposes of this paragraph (i), such other
person shall be deemed to beneficially own any Voting Stock of a specified entity held by a
parent entity, if such other person is the beneficial owner, directly or indirectly, of more
than 35% of the voting power of the parent entity’s Voting Stock than such other person, and
do not have the right or ability, by voting power, contract or otherwise, to elect, or
designate for election, a majority of the parent entity’s board of directors;

                (ii) during any period of two consecutive years, individuals who at the beginning of
such period constituted the Board, together with any new directors whose election by the
Board or whose nomination for election by the

8

 

Company’s shareholders was approved by a vote of a majority of the Company’s directors
then still in office who were either directors at the beginning of such period or whose
election or nomination for election was previously so approved, cease for any reason to
constitute a majority of the Board then in office;

                (iii) the merger or consolidation of the Company with or into another person or the
merger of another person with or into the Company, other than a transaction following which
the holders of securities that represented 100% of the aggregate voting power of the Voting
Stock of the Company immediately prior to such transaction own, directly or indirectly, at
least a majority of the aggregate voting power of the Voting Stock of the surviving person
immediately after such transaction in substantially the same proportion that such holders
held the aggregate voting power of the Voting Stock of the Company immediately prior to such
transaction; or

                (iv) the sale of all or substantially all of the Company’s assets to another person.

          8. Reduction of Payments in Certain Cases.

               (a) For purposes of this Section 8, (i) a “Payment” shall mean any payment or distribution in
the nature of compensation to or for the benefit of the Executive, whether paid or payable pursuant
to this Agreement or otherwise; (ii) “Agreement Payment” shall mean a Payment paid or payable
pursuant to this Agreement; (iii) “Net After Tax Receipt” shall mean the “Present Value” (as
defined below) of a Payment net all of federal, state and local taxes imposed on the Executive with
respect thereto (including without limitation under Section 4999 of the Internal Revenue Code of
1986, as amended (the “Code)), determined by applying the highest marginal rates of such taxes that
applied to the Executive’s taxable income for the immediately preceding taxable year, or such other
rate(s) as the Executive shall in his sole discretion certify as likely to apply to the Executive
in the relevant tax year(s); (iv) “Present Value” shall mean such value determined in accordance
with Section 280G(d)(4) of the Code; and (v) “Reduced Amount” shall mean the smallest aggregate
amount of Agreement Payments which (A) is less than the sum of all Agreement Payments and (B)
results in aggregate Net After Tax Receipts which are equal to or greater than the Net After Tax
Receipts which would result if the aggregate Agreement Payments were any other amount less than the
sum of all Agreement Payments.

               (b) Anything in this Agreement to the contrary notwithstanding, in the event that a nationally
recognized certified public accounting firm designated by the Company (the “Accounting Firm”) shall
determine that receipt of all Payments would subject the Executive to tax under Section 4999 of the
Code, it shall determine whether some amount of Agreement Payments would meet the definition of a
“Reduced Amount.” If said firm determines that there is a Reduced Amount, the aggregate Agreement
Payments shall be reduced to such Reduced Amount.

               (c) If the Accounting Firm determines that aggregate Agreement Payments should be reduced to
the Reduced Amount, the Company shall promptly give the Executive notice to that effect and a copy
of the detailed calculation thereof, and the Executive

9

 

may then elect, in his sole discretion, which and how much of the Agreement Payments shall be
eliminated or reduced (as long as after such election the Present Value of the aggregate Agreement
Payments equals the Reduced Amount), and shall advise the Company in writing of his election within
ten (10) business days of his receipt of notice. If no such election is made by the Executive
within such ten-day period, the Company may elect which of such Agreement Payments shall be
eliminated or reduced (as long as after such election the present value of the aggregate Agreement
Payments equals the Reduced Amount) and shall notify the Executive promptly of such election. All
determinations made by the Accounting Firm under this Section 8 shall be binding upon the Company
and the Executive. As promptly as practicable following such determination, the Company shall pay
to or distribute for the benefit of the Executive such Agreement Payments as are then due to the
Executive under this Agreement and shall promptly pay to or distribute for the benefit of the
Executive in the future such Agreement Payments as become due to the Executive under this
Agreement.

               (d) While it is the intention of the Company and the Executive to reduce the amounts payable
or distributable to the Executive hereunder only if the aggregate Net After Tax Receipts to the
Executive would thereby be increased, as a result of the uncertainty in the application of Section
4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is
possible that amounts will have been paid or distributed by the Company to or for the benefit of
the Executive pursuant to this Agreement which should not have been so paid or distributed
(“Overpayment”) or that additional amounts which will have not been paid or distributed by the
Company to or for the benefit of the Executive pursuant to this Agreement could have been so paid
or distributed (“Underpayment”), in each case, consistent with the calculation of the Reduced
Amount hereunder. In the event that the Accounting Firm, based upon the assertion of a deficiency
by the Internal Revenue Service against either the Company or the Executive which the Accounting
Firm believes has a high probability of success determines that an overpayment has been made, then
the Executive shall repay any such Overpayment to the Company within ten business days of his
receipt of notice of such Overpayment. In the event the Accounting Firm, based upon controlling
precedent or substantial authority, determines that an Underpayment has occurred, any such
underpayment shall be promptly paid by the Company to or for the benefit of the Executive.

               (e) All fees and expenses of the Accounting Firm in implementing the provisions of this
Section 8 shall be borne by the Company.

          9. Non-Assignability.

               (a) Neither this Agreement nor any right or interest hereunder shall be assignable by the
Executive or his beneficiaries or legal representatives without the Company’s prior written
consent; provided, however, that nothing in this Section 9(a) shall preclude the Executive from
designating a beneficiary to receive any benefit payable hereunder upon his death or incapacity.

               (b) Except as required by law, no right to receive payments under this Agreement shall be
subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge, pledge, or
hypothecation or to exclusion, attachment, levy or similar

10

 

process or to assignment by operation of law, and any attempt, voluntary or involuntary, to
effect any such action shall be null, void and of no effect.

          10. Restrictive Covenants.

                (a) Competition. During the Employment Term and during the “Applicable Period” (as
defined below), the Executive will not directly or indirectly (as a shareholder, general partner,
member or other owner, director, officer, executive employee, manager, consultant, independent
contractor, advisor or otherwise) engage in competition with, or own any interest in, perform any
services for, participate in or be connected with any business or organization which engages in
competition with the Company within the meaning of Section 10(d); provided, however, that the
provisions of this Section 10(a) shall not be deemed to prohibit the Executive’s (i) ownership of
not more than two percent (2%) of the total shares of all classes of stock outstanding of any
publicly held company or (ii) ability to invest, as a limited partner, in any private equity,
mezzanine or similar investment fund. For purposes of this Agreement, the “Applicable Period”
shall mean the period of time following the termination of the Executive’s employment in which any
severance payments are owed to the Executive by the Company, but the Applicable Period shall in no
event exceed twenty-four (24) months.

                (b) Non-Solicitation. During the Employment Term and during the Applicable Period,
the Executive will not directly or indirectly induce or attempt to induce any management employee
of any of the Company to leave the employ of the Company, or in any way interfere with the
relationship between any of the Company and any employee thereof.

                (c) Non-Interference. During the Employment Term and during the Applicable Period,
the Executive will not directly or indirectly hire, engage, send any work to, place orders with, or
in any manner be associated with any investment bank, private equity group, financial institution
or other business relation of the Company if such action would be known by him to have a material
adverse effect on the business, assets or financial condition of the Company or materially
interfere with the relationship between any such person or entity and the Company.

                (d) Certain Definitions.

                 (i) For purposes of this Section 10, a person or entity (including, without limitation,
the Executive) shall be deemed to be engaging in competition with the Company if such person
or entity either engages primarily in the business of providing Mezzanine financing to lower
middle market companies or engages in any other type of business which comprises a
significant portion of the Company’s revenues at the time of termination of the Executive’s
employment with the Company and for which the Executive had responsibility or authority or
about which business the Executive received Confidential Information, in either case in the
geographic region encompassing the service areas in which the Company conducts, or had an
established plan to begin conducting, such businesses at the time of termination of the
Executive’s employment with the Company.

11

 

                 (ii) For purposes of this Section 10, no corporation or entity that may be deemed to be
an affiliate of the Company solely by reason of its controlling, being controlled by, or
being under common control with any Permitted Holder or any of their respective affiliates
will be deemed to be an affiliate of the Company.

                 (e) Certain Representations of the Executive. In connection with the foregoing
provisions of this Section 10, the Executive represents that his experience, capabilities and
circumstances are such that such provisions will not prevent him from earning a livelihood. The
Executive further agrees that the limitations set forth in this Section 10 (including, without
limitation, time and territorial limitations) are reasonable and properly required for the adequate
protection of the current and future businesses of the Company. It is understood and agreed that
the covenants made by the Executive in this Section 10 (and in Section 6 hereof) shall survive the
expiration or termination of this Agreement.

                 (f) Injunctive Relief. The Executive acknowledges and agrees that a remedy at law for
any breach or threatened breach of the provisions of Section 10 hereof would be inadequate and,
therefore, agrees that the Company and any of its subsidiaries or affiliates shall be entitled to
injunctive relief in addition to any other available rights and remedies in cases of any such
breach or threatened breach (and the Executive hereby waives any requirement that the Company
provide a bond or other security in connection with the issuance of any such injunction); provided,
however, that nothing contained herein shall be construed as prohibiting the Company or any of its
subsidiaries from pursuing any other rights and remedies available for any such breach or
threatened breach.

          11. Binding Effect. Without limiting or diminishing the effect of the provisions
affecting assignment of this Agreement, this Agreement shall inure to the benefit of and be binding
upon the parties hereto and their respective heirs, successors, legal representatives and permitted
assigns.

          12. Notices. All notices which are required or may be given pursuant to the terms of
this Agreement shall be in writing and shall be sufficient in all respects if given in writing and
(i) delivered personally, (ii) mailed by certified or registered mail, return receipt requested and
postage prepaid, (iii) sent via a nationally recognized overnight courier, or (iv) sent via
facsimile confirmed in writing to the recipient, if to the Company at the Company’s principal place
of business, and if to the Executive, at his home address most recently filed with the Company, or
to such other address or addresses as either party shall have designated in writing to the other
party hereto, provided, however, that any notice sent by certified or registered mail shall be
deemed delivered on the date of delivery as evidenced by the return receipt.

          13. Law Governing. This Agreement shall be governed by and construed in accordance
with the laws of the State of North Carolina, without regard to the principles of conflicts of
laws.

          14. Severability. The Executive agrees that in the event that any court of competent
jurisdiction shall finally hold that any provision of Section 6 or 10 hereof is void or constitutes
an unreasonable restriction against the Executive, the provisions of such Section 6 or

12

 

10 shall not be rendered void but shall apply with respect to such extent as such court may
judicially determine constitutes a reasonable restriction under the circumstances. If any part of
this Agreement other than Section 6 or 10 is held by a court of competent jurisdiction to be
invalid, illegal or incapable of being enforced in whole or in part by reason of any rule of law or
public policy, such part shall be deemed to be severed from the remainder of this Agreement for the
purpose only of the particular legal proceedings in question and all other covenants and provisions
of this Agreement shall in every other respect continue in full force and effect and no covenant or
provision shall be deemed dependent upon any other covenant or provision.

          15. Waiver. Failure to insist upon strict compliance with any of the terms,
covenants, or conditions hereof shall not be deemed a waiver of such term, covenant or condition,
nor shall any waiver or relinquishment of any right or power hereunder at any one or more times be
deemed a waiver or relinquishment of such right or power at any other time or times.

          16. Arbitration. With the exception of any dispute regarding the Executive’s
compliance with the provisions of Sections 6 and 10 above, any dispute relating to or arising out
of the provisions of this Agreement shall be decided by arbitration in Raleigh, North Carolina, in
accordance with the Revised Uniform Arbitration Act as in effect at the time of such dispute
pursuant to North Carolina’s Gen. Stat. § 1-569.1 et. seq., unless the Executive and the Company
mutually agree otherwise in a writing signed by both parties. The Federal Arbitration Act shall
not apply. This undertaking to arbitrate shall be specifically enforceable. The decision rendered
by the arbitrator will be final and judgment may be entered upon it in accordance with appropriate
laws in any court having jurisdiction thereof. Each of the parties shall pay his or its own legal
fees associated with such arbitration.

          17. Entire Agreement; Modifications. This Agreement constitutes the entire and final
expression of the agreement of the parties with respect to the subject matter hereof and supersedes
all prior agreements, oral and written, between the parties hereto with respect to the subject
matter hereof including, without limitation, any existing agreement regarding employment or
compensation between or among Executive and the Company. This Agreement may be modified or amended
only by an instrument in writing signed by both parties hereto.

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

13

 

     IN WITNESS WHEREOF, the Company and the Executive have duly executed and delivered this
Agreement as of the date of the consummation of the initial public offering of common stock of the
Company.

	 	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 
	 	 	TRIANGLE CAPITAL CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Garland S. Tucker, III
 

Garland S. Tucker, III
	 	 
	 

	 	Title:
	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	EXECUTIVE:	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Garland S. Tucker, III	 	 
	 	 	 	 	 
	 	 	Garland S. Tucker, III	 	 

14

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