Document:

Exhibit 10.4(c)

 

SUBSCRIPTION
RIGHT

 

THE
SECURITIES REPRESENTED HEREBY (AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF) HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”) OR U.S. STATE SECURITIES LAWS. THESE SECURITIES MAY
NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, DIRECTLY OR INDIRECTLY, UNLESS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE U.S. SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN COMPLIANCE WITH AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS
UNDER THE U.S. SECURITIES ACT PROVIDED THAT THE HOLDER HAS, PRIOR TO SUCH TRANSFER, FURNISHED TO THE SHARE OPTION GRANTOR AN OPINION
OF COUNSEL IN A FORM SATISFACTORY TO THE SHARE OPTION GRANTOR.

 

Unless
permitted under securities legislation, the holder of this security must not trade the security before DECEMBER 18, 2021.

 

THE
SUBSCRIPTION RIGHTS REPRESENTED BY THIS CERTIFICATE WILL BE VOID AND OF NO VALUE UNLESS EXERCISED BY 5:00 P.M. (PACIFIC TIME), ON DECEMBER
31, 2021,AFTER WHICH TIME THE SUBSCRIPTION RIGHTS EVIDENCED HEREBY SHALL BE NULL AND VOID AND OF NO FURTHER FORCE AND EFFECT.

 

	Subscription
    Right Certificate No.: ●	August
    17, 2021

 

MEDMEN
ENTERPRISES INC., as Unit Option Grantor

 

and

 

MEDMEN
ENTERPRISES INC. and MM Can USA, Inc., as Note Option Grantors

 

THIS
CERTIFIES THAT, for value received:

 

		(a)	the
                                            Unit Option Grantor hereby grants to the Option Holder, subject to the terms and conditions
                                            hereof, the right to subscribe for and purchase at any time during the Exercise Period, its
                                            portion of units of the Unit Option Grantor (“Units”) consisting of (x)
                                            one (1) Share (as defined herein) and (y) one-quarter (1/4) of a Warrant (as defined herein),
                                            at an exercise price of $0.24 per Unit (the “Exercise Price”) (subject
                                            to any adjustment as contemplated herein) for aggregate gross proceeds of $30,000,000 from
                                            all Option Holders (the “Unit Option”) in accordance with Section 2 hereof.

 

		(b)	the
                                            Note Option Grantors hereby grant to the Option Holder, subject to the terms and conditions
                                            hereof, the right to subscribe for and purchase its portion of $30,000,000 principal amount
                                            of Notes, at par, to be issued by the Note Option Grantors (the “Note Option”)
                                            as a new tranche of convertible notes pursuant to the Securities
                                            Purchase Agreement and in accordance with Section 2 hereof.

 

     

     

    

 

Each
of the parties hereto acknowledges and agrees that the Option Holder must either elect to exercise the Unit Option or the Note Option,
and that in no circumstances may both options be exercised and that, upon exercise of either option, the unexercised option shall terminate
and be of no further force or effect. After the Expiry Time, all Subscription Rights evidenced hereby, in respect of which the right
of subscription and purchase herein provided for shall not theretofore have been exercised, shall wholly cease and terminate and such
Subscription Right and this Subscription Right Certificate shall be void and of no value or effect.

 

		1.	Definitions

 

The
following terms shall have the following meanings:

 

“Current
Market Price” at any date, means the weighted average of the sale prices per Share at which the Shares have traded on the Canadian
Securities Exchange, or, if the Shares in respect of which a determination of Current Market Price is being made are not listed thereon,
on such stock exchange on which such shares are listed as may be selected for such purpose by the directors of the Unit Option Grantor,
or, if the Shares are not listed on any stock exchange, then on the over-the-counter market, for 30 consecutive trading days ending before
such date, or in the event that at any date the Shares are not listed on any exchange or on the over-the-counter market, the Current
Market Price shall be as determined by the directors of the Unit Option Grantor or such firm of independent chartered accountants as
may be selected by the directors of the Unit Option Grantor acting reasonably and in good faith in their sole discretion; for these purposes,
the weighted average price for any period shall be determined by dividing the aggregate sale prices of all Shares sold during such period
by the total number of Shares sold during such period;

 

“Deposit
Instructions” means the written instructions provided by the Unit Option Grantor and the Note Option Grantor to the Option
Holder as to the deposit of the funds required to exercise the Unit Option or the Note Option, as such instructions may be amended from
time to time;

 

“Equity
Shares” means the Shares and any shares of any other class or series of the Unit Option Grantor which may from time to time
be authorized for issue if by their terms such shares confer on the holders hereof the right to participate in the distribution of assets
upon the voluntary or involuntary liquidation, dissolution or winding up of the Unit Option Grantor beyond a fixed sum or a fixed sum
plus accrued dividends;

 

“Exercise
Period” means the period commencing on the date hereof (the “Effective Date”) and ending at the Expiry Time on
the Expiry Date;

 

“Expiry
Date” means December 31, 2021;

 

“Expiry
Time” means 5:00 pm (Pacific time) on the Expiry Date;

 

“Hankey
Loan” means that certain Senior Secured Commercial Loan Agreement dated as of October 1, 2018, as amended by that certain First
Modification to Senior Secured Commercial Loan Agreement dated April 8, 2019 and further amended by that certain Second Modification
to Senior Secured Commercial Loan Agreement dated January 13, 2020 and further amended by that certain Third Modification to Senior Secured
Commercial Loan Agreement dated July 2, 2020, further amended by that certain Fourth Modification to Senior Secured Commercial Loan Agreement
dated September 14, 2020 and further amended by that certain Fifth Modification to Senior Secured Commercial Loan Agreement dated May
11, 2021, each by and between Hankey Capital, LLC and MM CAN USA, Inc., and all other agreements, instruments and documents entered into
in connection therewith, as the same may be amended, restated, amended and restated, supplemented or modified or terms waived from time
to time.

 

    	 	- 2 -	 

     

    

 

“Notes”
means a new series of Notes (as defined in the Securities Purchase Agreement) to be issued under the
Securities Purchase Agreement having the same terms and conditions of the Tranche 4 Notes (as defined in the Securities Purchase Agreement),
except for the Conversion Price which shall be $0.24 (as may be adjusted pursuant to the terms of the Notes);

 

“Note
Option Grantors” means, collectively MedMen Enterprises Inc., a corporation incorporated under the laws of the Province of
British Columbia and MM Can USA, Inc., a California corporation and, individually, each of them;

 

“Option
Holder” means [Serruya Investor];1

 

“person”
means any natural person, individual, body corporate, firm, general partnership, limited partnership, limited liability company, syndicate
or other form of unincorporated association, trust, trustee, executor, administrator, legal personal representative, group, organization,
government and its agencies or instrumentalities, any entity or group whether or not having legal personality;

 

“Securities
Purchase Agreement” means the Fourth Amended and Restated Securities Purchase Agreement, dated as of August 17, 2021 (as amended,
restated, amended and restated, supplemented or otherwise modified from time to time) by and among the Note Option Grantors, each other
Credit Party thereto, each Purchaser (as defined therein) and the Collateral Agent named therein;

 

“Share”
means a Class B Subordinate voting share of the Unit Option Grantor.

 

“Unit
Option” shall have the meaning ascribed to such term in Section 3 hereof;

 

“Unit
Option Grantor” means MedMen Enterprises Inc., a corporation incorporated under the laws of the Province of British Columbia.

 

“Warrant”
means a share purchase warrant, exercisable to purchase one Share at an exercise price of US$0.288 per Share (as may be adjusted pursuant
to the terms of the Warrant) for a period of five (5) years from the date of issuance.

 

		2.	Exercise
                                            of Subscription Rights; Use of Proceeds

 

In
order to exercise the Unit Option or the Note Option, the Option must, prior to the Expiry Time:

 

		(a)	provide
                                            written notice to the Unit Option Grantor or the Note Option Grantors, as the case may be,
                                            of its election pursuant to this Section, together with an executed copy of the Unit Subscription
                                            Agreement in the form attached hereto as Schedule A, or a joinder agreement to the Securities
                                            Purchase Agreement, which joinder agreement shall be reasonably acceptable to the parties;
                                            and

 

 

 

 

		1	To
insert legal name of applicable Serruya investment entity. Each of the four Serruya investment entities will get their own Subscription
Right.

 

    	 	- 3 -	 

     

    

 

		(b)	cause
                                            to be deposited with the Unit Option Grantor or the Note Option Grantors in accordance with
                                            the Deposit Instructions for value on or before the proposed issue date, $7,500,000 in United
                                            States dollars.

 

The
Unit Option Grantor or the Note Option Grantors, as the case may be, shall use the proceeds from exercise of the Unit Option or the Note
Option, as applicable, less fees and expenses, to repay indebtedness under the Hankey Loan or, in the event there is no indebtedness
outstanding under the Hankey Loan, for general corporate purposes.

 

		3.	No
                                            Partial Exercise/Fractional Shares

 

The
Unit Option or the Note Option, if exercised, must be exercised in full.

 

The
Unit Option Grantor shall not be required upon the exercise of any Subscription Rights to issue fractional Shares in satisfaction of
its obligations hereunder and, in any such case, the number of Shares issuable upon the exercise of any Subscription Rights shall be
rounded up to the nearest whole number. The Unit Option Grantor shall not be required to make any payment to the Option Holder who, absent
this Section 3, would otherwise have been entitled to receive a fractional Share.

 

		4.	Option
                                            Holder not a Shareholder

 

Nothing
contained in this Subscription Right shall be construed as conferring upon the Option Holder any right or interest as a holder of Shares
or any other right or interest other than those expressly provided herein, until the Unit Option is exercised. Without limiting the foregoing,
except as expressly provided under this Subscription Right, the Option Holder shall not be entitled to vote or receive dividends or be
deemed the holder of Shares for any purpose, nor shall anything contained in this Subscription Right be construed to confer upon the
Option Holder, as such, any of the rights of a shareholder of the Unit Option Grantor or any right to vote, give or withhold consent
to any corporate action (whether any reorganization, issue of Shares, reclassification of Shares, consolidation, merger, amalgamation,
arrangement (unless permitted by court order), conveyance or otherwise), receive notice of meetings, receive dividends or subscription
rights, or otherwise. In addition, nothing contained in this Subscription Right shall be construed as imposing any liabilities on the
Option Holder to purchase any securities or as a shareholder of the Unit Option Grantor , whether such liabilities are asserted by the
Unit Option Grantor or by creditors of the Unit Option Grantor.

 

		5.	Option
                                            Holder not a Creditor

 

Nothing
contained in this Subscription Right shall be construed as conferring upon the Option Holder any right or interest as a creditor of the
Note Option Grantors or any other right or interest other than those expressly provided herein, until the Note Option is exercised. Without
limiting the foregoing, except as expressly provided under this Subscription Right, nothing contained in this Subscription Right shall
be construed to confer upon the Option Holder, as such, any of the rights of a creditor of the Note Option Grantors. In addition, nothing
contained in this Subscription Right shall be construed as imposing any liability on the Option Holder to purchase any securities of
the Note Option Grantors, whether such liability is asserted by the Note Option Grantors or by creditors of the Note Option Grantors.

 

    	 	- 4 -	 

     

    

 

		6.	Compliance
                                            with Securities Laws; Legends

 

		(a)	Agreement
                                            to Comply with Securities Laws; Legends. The Option Holder, by acceptance of this Subscription
                                            Right, agrees to comply in all respects with the provisions of this Section and the restrictive
                                            legend requirements set forth on the face of this Subscription Right and further agrees that
                                            the Option Holder shall not offer, sell or otherwise dispose of this Subscription Right or
                                            any Units or Notes to be issued upon exercise hereof except under circumstances that will
                                            not result in a violation of the applicable securities laws. Any certificate representing
                                            Units or Notes issued upon the exercise of this Subscription Right will bear the following
                                            legends:

 

“THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
“U.S. SECURITIES ACT”) OR U.S. STATE SECURITIES LAWS. THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED,
DIRECTLY OR INDIRECTLY, UNLESS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN COMPLIANCE WITH AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS UNDER THE U.S. SECURITIES ACT PROVIDED THAT THE
HOLDER HAS, PRIOR TO SUCH TRANSFER, FURNISHED TO THE COMPANY AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY.”

 

Unless
permitted under securities legislation, the holder of this security must not trade the security before DECEMBER 18, 2021.

 

		(b)	Representations
                                            of the Option Holder. In connection with the issuance of this Subscription Right, the
                                            Option Holder specifically represents, as of the Effective Date, to the Unit Option Grantor
                                            and Note Option Grantors, by acceptance of this Subscription Right as follows:

 

		(i)	The
                                            Option Holder is a resident in and/or maintains its head office in, as the case may be, the
                                            jurisdiction set out next to the Option Holder’s name in Section 9 and such address
                                            was not created and is not solely used for the purpose of acquiring this Subscription Right.
                                            The Option Holder is subject to the applicable securities laws of such jurisdiction and has
                                            and will comply with such applicable securities laws in respect of this Subscription Right,
                                            including with respect to transfer and resale restrictions.

 

		(ii)	The
                                            Option Holder has been duly incorporated or created and is validly subsisting under the laws
                                            of its jurisdiction of incorporation or creation, and the Subscriber is not resident in Canada
                                            and is not acquiring the Subscription Right for the account or benefit of a person in Canada
                                            and the Subscription Right will not be beneficially owned or controlled or directed by a
                                            person in Canada.

 

		7.	Representations,
                                            Warranties and Covenants of the Unit Option Grantor and the Note Option Grantors

 

		(a)	Representations
                                            of the Unit Option Grantor and the Note Option Grantors. In connection with the issuance
                                            of this Subscription Right, the Unit Option Grantor and the Note Option Grantors each severally
                                            represent, as of the Effective Date, by issuance of this Subscription Right that this Subscription
                                            Right has been duly authorized, executed and delivered by it and is validly issued.

 

    	 	- 5 -	 

     

    

 

		(b)	Covenants
                                            of the Unit Option Grantor. In connection with the issuance of this Subscription Right,
                                            the Unit Option Grantor covenants to the Option Holder by issuance of this Subscription Right
                                            that all Units issuable upon the exercise of this Subscription Right pursuant to the terms
                                            hereof and the Units Subscription Agreement shall be, upon issuance, and the Unit Option
                                            Grantor shall take all such actions as may be necessary or appropriate in order that such
                                            Units are, validly issued, fully paid and non-assessable, free and clear of all taxes, liens
                                            and charges.

 

		(c)	Covenants
                                            of the Note Option Grantors. In connection with the issuance of this Subscription Right,
                                            the Note Option Grantors severally covenant to the Option Holder by issuance of this Subscription
                                            Right that all Notes issuable upon the exercise of this Subscription Right pursuant to the
                                            terms hereof, the Securities Purchase Agreement shall be, upon issuance, and the legal valid
                                            and binding obligations of the Note Option Grantors, enforceable against the Note Option
                                            Grantors in accordance with their terms, subject to applicable bankruptcy and insolvency
                                            laws.

 

		8.	No
                                            U.S. Registration; Registration Rights

 

Neither
this Subscription Right nor the Units or Notes issuable upon exercise of this Subscription Right have been or will be registered under
the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or under the securities laws
of any state of the United States. This Subscription Right and the Units or Notes issuable hereunder shall not be exercised or transferred
within the United States unless this Subscription Right and/or the Units or Notes, as applicable, have been registered under the U.S.
Securities Act or are exempt from registration thereunder. The Option Holder acknowledges that a legend to that effect may be placed
on any certificates representing the Units or Notes issued on exercise of the rights represented by this Subscription Right. The Option
Holder upon execution of a Units Subscription Agreement in the form attached hereto as Schedule A, or a joinder to the Securities Purchase
Agreement, as the case may be, will have the registration rights provided therein and subject to the terms and conditions therein.

 

		9.	Adjustment
                                            to Unit Option Exercise Price

 

The
adjustments to the Shares and Warrants comprising the Units shall be treated separately. Other than pursuant to Section 9(d) below, any
and all adjustments in connection with the exercise price of the Warrants or the number or type of securities issuable upon the exercise
of the Warrants shall be made in accordance with the terms set forth in the attached form of Warrant, attached on the same basis as if
it had been issued as of the date of such adjusting event.

 

The
Exercise Price in effect at any time is subject to adjustment from time to time in the events and in the manner provided as follows:

 

		(a)	If
                                            and whenever at any time after the date hereof the Unit Option Grantor:

 

		(i)	issues
                                            Shares or securities exchangeable for or convertible into Shares to all or substantially
                                            all the holders of the Shares as a stock dividend; or

 

		(ii)	makes
                                            a distribution on its outstanding Shares payable in Shares or securities exchangeable for
                                            or convertible into Shares; or

 

		(iii)	subdivides
                                            its outstanding Shares into a greater number of shares; or

 

		(iv)	consolidates
                                            its outstanding Shares into a smaller number of shares;

 

    	 	- 6 -	 

     

    

 

(any
of such events being called a “Share Reorganization”), then the Exercise Price will be adjusted effective immediately
after the effective date or record date for the happening of a Share Reorganization, as the case may be, at which the holders of Shares
are determined for the purpose of the Share Reorganization by multiplying the Exercise Price in effect immediately prior to such effective
date or record date by a fraction, the numerator of which is the number of Shares outstanding on such effective date or record date before
giving effect to such Share Reorganization and the denominator of which is the number of Shares outstanding immediately after giving
effect to such Share Reorganization (including, in the case where securities exchangeable for or convertible into Shares are distributed,
the number of Shares that would have been outstanding had all such securities been exchanged for or converted into Shares on such effective
date or record date).

 

		(b)	If
                                            and whenever at any time after the date hereof the Unit Option Grantor fixes a record date
                                            for the issue of rights (excluding rights issued pursuant to a shareholder rights plan),
                                            options or warrants to the holders of all or substantially all of its outstanding Shares
                                            under which such holders are entitled to subscribe for or purchase Shares or securities exchangeable
                                            for or convertible into Shares, where:

 

		(i)	the
                                            right to subscribe for or purchase Shares, or the right to exchange securities for or convert
                                            securities into Shares, expires not more than 45 days after the date of such issue (the period
                                            from the record date to the date of expiry being herein in this Section 9 called the “Rights
                                            Period”), and

 

		(ii)	the
                                            cost per Share during the Rights Period (inclusive of any cost of acquisition of securities
                                            exchangeable for or convertible into Shares in addition to any direct cost of Shares) (herein
                                            in this Section 9 called the “Per Share Cost”) is less than 95% of the
                                            Current Market Price of the Shares on the record date,

 

(any
of such events being called a “Rights Offering”), then the Exercise Price will be adjusted effective immediately after
the end of the Rights Period to a price determined by multiplying the Exercise Price in effect immediately prior to the end of the Rights
Period by a fraction:

 

		(A)	the
                                            numerator of which is the aggregate of:

 

		(I)	the
                                            number of Shares outstanding as of the record date for the Rights Offering; and

 

		(II)	a
                                            number determined by dividing the product of the Per Share Cost and:

 

		(1)	where
                                            the event giving rise to the application of this subsection 9(b) was the issue of rights,
                                            options or warrants to the holders of Shares under which such holders are entitled to subscribe
                                            for or purchase additional Shares, the number of Shares so subscribed for or purchased during
                                            the Rights Period, or

 

    	 	- 7 -	 

     

    

 

		(2)	where
                                            the event giving rise to the application of this subsection 9(b) was the issue of rights,
                                            options or warrants to the holders of Shares under which such holders are entitled to subscribe
                                            for or purchase securities exchangeable for or convertible into Shares, the number of Shares
                                            for which those securities so subscribed for or purchased during the Rights Period could
                                            have been exchanged or into which they could have been converted during the Rights Period,

 

by
the Current Market Price of the Shares as of the record date for the Rights Offering; and

 

		(B)	the
                                            denominator of which is:

 

		(I)	in
                                            the case described in subparagraph 9(b)(A)(II)(1), the number of Shares outstanding, or

 

		(II)	in
                                            the case described in subparagraph 9(b)(A)(II)(2), the number of Shares that would be outstanding
                                            if all the Shares described in subparagraph 9(b)(A)(II)(2) had been issued,

 

as
at the end of the Rights Period.

 

Any
Shares owned by or held for the account of the Unit Option Grantor or any subsidiary or affiliate (as defined in the Securities Act
(Ontario)) of the Unit Option Grantor will be deemed not to be outstanding for the purpose of any such computation.

 

If
by the terms of the rights, options or warrants referred to in this Section 9, there is more than one purchase, conversion or exchange
price per Share, the aggregate price of the total number of additional Shares offered for subscription or purchase, or the aggregate
conversion or exchange price of the convertible securities so offered, will be calculated for purposes of the adjustment on the basis
of:

 

		(1)	the
                                            lowest purchase, conversion or exchange price per Share, as the case may be, if such price
                                            is applicable to all Shares which are subject to the rights, options or warrants, and

 

		(2)	the
                                            average purchase, conversion or exchange price per Share, as the case may be, if the applicable
                                            price is determined by reference to the number of Shares acquired.

 

To
the extent that any adjustment in the Exercise Price occurs pursuant to this Section 9 as a result of the fixing by the Unit Option Grantor
of a record date for the distribution of rights, options or warrants referred to in this Section 9, the Exercise Price will be readjusted
immediately after the expiration of any relevant exchange, conversion or exercise right to the Exercise Price which would then be in
effect based upon the number of Shares actually issued and remaining issuable after such expiration, and will be further readjusted in
such manner upon expiration of any further such right.

 

    	 	- 8 -	 

     

    

 

If
the Option Holder has exercised the Unit Option in accordance herewith during the period beginning immediately after the record date
for a Rights Offering and ending on the last day of the Rights Period therefor, the Option Holder will, in addition to the Shares to
which it is otherwise entitled upon such exercise, be entitled to that number of additional Shares equal to the result obtained when
the Exercise Price in effect immediately prior to the end of such Rights Offering pursuant to this subsection is multiplied by the number
of Shares received upon the exercise of the Unit Option during such period, and the resulting product is divided by the Exercise Price
as adjusted for such Rights Offering pursuant to this subsection; provided that the provisions of Section 3 will be applicable to any
fractional interest in a Share to which such Holder might otherwise be entitled. Such additional Shares will be deemed to have been issued
to the Option Holder immediately following the end of the Rights Period and a certificate for such additional Shares will be delivered
to the Option Holder within ten (10) Business Days following the end of the Rights Period.

 

		(c)	If
                                            and whenever at any time after the date hereof the Unit Option Grantor fixes a record date
                                            for the issue or the distribution to the holders of all or substantially all of the outstanding
                                            Shares of:

 

		(i)	shares
                                            of the Unit Option Grantor of any class other than Shares;

 

		(ii)	rights,
                                            options or warrants to acquire shares or securities exchangeable for or convertible into
                                            Shares or property or other assets of the Unit Option Grantor;

 

		(iii)	evidence
                                            of indebtedness of the Unit Option Grantor; or

 

		(iv)	any
                                            property or other assets of the Unit Option Grantor,

 

and
if such issuance or distribution does not constitute (A) a Share Reorganization, (B) a Rights Offering or (C) the issue of rights, options
or warrants to the holders of all or substantially all of its outstanding Shares under which such holders are entitled to subscribe for
or purchase Shares or securities exchangeable for or convertible into Shares, where:

 

		(x)	the
                                            right to subscribe for or purchase Shares, or the right to exchange securities for or convert
                                            securities into Shares, expires not more than 45 days after the date of such issue, and

 

		(y)	the
                                            cost per Share during the Rights Period, inclusive of the Per Share Cost, is 95% or more
                                            than the Current Market Price of the Shares on the record date

 

(any
of such non-excluded events being called a “Special Distribution”), the Exercise Price will be adjusted effective
immediately after such record date to a price determined by multiplying the Exercise Price in effect on such record date by a fraction:

 

		(A)	the
                                            numerator of which is:

 

		(I)	the
                                            product of the number of Shares outstanding on such record date and the Current Market Price
                                            of the Shares on such record date; less

 

    	 	- 9 -	 

     

    

 

		(II)	the
                                            aggregate fair market value (as determined by action by the directors of the Unit Option
                                            Grantor, subject, however, to the prior written consent of the applicable stock exchange,
                                            where required) to the holders of the Shares of such securities or property or other assets
                                            so issued or distributed in the Special Distribution; and

 

		(B)	the
                                            denominator of which is the number of Shares outstanding on such record date multiplied by
                                            the Current Market Price of the Shares on such record date.

 

Any
Shares owned by or held for the account of the Unit Option Grantor or any subsidiary or affiliate (as defined in the Securities Act
(Ontario)) of the Unit Option Grantor will be deemed not to be outstanding for the purpose of any such computation.

 

		(d)	If
                                            and whenever at any time after the date hereof there is a Share Reorganization, a Rights
                                            Offering, a Special Distribution, a reclassification or redesignation of the Shares outstanding
                                            at any time or change of the Shares into other shares or into other securities (other than
                                            a Share Reorganization), or a consolidation, amalgamation or merger of the Unit Option Grantor
                                            with or into any other corporation or other entity (other than a consolidation, amalgamation
                                            or merger which does not result in any reclassification or redesignation of the outstanding
                                            Shares or a change of the Shares into other shares), or a transfer of the undertaking or
                                            assets of the Unit Option Grantor as an entirety or substantially as an entirety to another
                                            corporation or other entity (any of such events being called a “Capital Reorganization”),
                                            the Option Holder, upon exercising this Unit Option after the effective date of such Capital
                                            Reorganization, will be entitled to receive in lieu of the number of Shares and Warrants
                                            to which such Option Holder was theretofore entitled under this Subscription Right upon such
                                            exercise, the aggregate number of shares, other securities or other property which such Option
                                            Holder would have been entitled to receive as a result of such Capital Reorganization if,
                                            on the effective date thereof, the Option Holder had been the registered holder of the number
                                            of Shares to which such Option Holder was theretofore entitled upon exercise of the Unit
                                            Option. If determined appropriate by action of the directors of the Unit Option Grantor,
                                            appropriate adjustments will be made as a result of any such Capital Reorganization in the
                                            application of the provisions set forth in this Section 9 with respect to the rights and
                                            interests thereafter of the Option Holder to the end that the provisions set forth in this
                                            Section 9 will thereafter correspondingly be made applicable as nearly as may reasonably
                                            be in relation to any shares, other securities or other property thereafter deliverable upon
                                            the exercise hereof. Any such adjustment must be made by and set forth in an amendment to
                                            this Subscription Right approved by action by the directors of the Unit Option Grantor and
                                            will for all purposes be conclusively deemed to be an appropriate adjustment.

 

		(e)	If
                                            at any time after the date hereof and prior to the Expiry Time any adjustment in the Exercise
                                            Price shall occur as a result of:

 

		(i)	an
                                            event referred to in subsection 9(a);

 

    	 	- 10 -	 

     

    

 

		(ii)	the
                                            fixing by the Unit Option Grantor of a record date for an event referred to in subsection
                                            9(b); or

 

		(iii)	the
                                            fixing by the Unit Option Grantor of a record date for an event referred to in subsection
                                            9(c) if such event constitutes the issue or distribution to the holders of all or substantially
                                            all of its outstanding Shares of (A) Equity Shares, or (B) securities exchangeable for or
                                            convertible into Equity Shares at an exchange or conversion price per Equity Share less than
                                            the Current Market Price on such record date or (C) rights, options or warrants to acquire
                                            Equity Shares at an exercise, exchange or conversion price per Equity Share less than the
                                            Current Market Price on such record date,

 

then,
where required, the number of Units purchasable upon the subsequent exercise of the Unit Option shall be simultaneously adjusted by multiplying
the number of Units purchasable upon the exercise of the Unit Option immediately prior to such adjustment by a fraction which shall be
the reciprocal of the fraction employed in the adjustment of the Exercise Price. To the extent any adjustment in subscription rights
occurs pursuant to this subsection 9(e) as a result of a distribution of exchangeable or convertible securities other than Equity Shares
referred to in subsection 9(a) or as a result of the fixing by the Unit Option Grantor of a record date for the distribution of rights,
options or warrants referred to in subsection 9(b), the number of Units purchasable upon exercise of the Unit Option shall be readjusted
immediately after the expiration of any relevant exchange, conversion or exercise right to the number of Units which would be purchasable
based upon the number of Equity Shares actually issued and remaining issuable immediately after such expiration, and shall be further
readjusted in such manner upon expiration of any further such right. To the extent that any adjustment in subscription rights occurs
pursuant to this subsection 9(e) as a result of the fixing by the Unit Option Grantor of a record date for the distribution of exchangeable
or convertible securities other than Equity Shares or rights, options or warrants referred to in subsection 9(c), the number of Units
purchasable upon exercise of the Unit Option shall be readjusted immediately after the expiration of any relevant exchange, conversion
or exercise right to the number which would be purchasable pursuant to this subsection 9(e) if the fair market value of such securities
or such rights, options or warrants had been determined for purposes of the adjustment pursuant to this subsection 9(e) on the basis
of the number of Equity Shares issued and remaining issuable immediately after such expiration, and shall be further readjusted in such
manner upon expiration of any further such right.

 

		10.	Rules
                                            Regarding Calculation of Adjustment of Unit Option Exercise Price

 

		(a)	The
                                            adjustments provided for in Section 9 are cumulative and will, in the case of adjustments
                                            to the Exercise Price, be computed to the nearest one-tenth of one cent and will be made
                                            successively whenever an event referred to therein occurs, subject to the following subsections
                                            of this Section 14.

 

		(b)	No
                                            adjustment in the Exercise Price is required to be made unless such adjustment would result
                                            in a change of at least 1% in the prevailing Exercise Price; provided, however, that any
                                            adjustments which, except for the provisions of this subsection, would otherwise have been
                                            required to be made, will be carried forward and taken into account in any subsequent adjustments.

 

    	 	- 11 -	 

     

    

 

		(c)	No
                                            adjustment in the Exercise Price will be made in respect of any event described in Section
                                            9, other than the events referred to in clauses 9(a)(iii) and (iv), if the Option Holder
                                            is entitled to participate in such event on the same terms, mutatis mutandis, as if
                                            the Option Holder had exercised the Unit Option prior to or on the effective date or record
                                            date of such event.

 

		(d)	No
                                            adjustment in the Exercise Price will be made under Section 9 in respect of the issue from
                                            time to time of Shares issuable from time to time as dividends paid in the ordinary course
                                            to holders of Shares who exercise an option or election to receive substantially equivalent
                                            dividends in Shares in lieu of receiving a cash dividend, and any such issue will be deemed
                                            not to be a Share Reorganization.

 

		(e)	If
                                            at any time a dispute arises with respect to adjustments provided for in Section 9, such
                                            dispute will be conclusively determined by the auditors of the Unit Option Grantor or if
                                            they are unable or unwilling to act, by such other firm of independent chartered accountants
                                            as may be selected by action by the directors of the Unit Option Grantor and any such determination,
                                            where required, will be binding upon the Unit Option Grantor, the Option Holder and shareholders
                                            of the Unit Option Grantor. The Unit Option Grantor will provide such auditors or accountants
                                            with access to all necessary records of the Unit Option Grantor.

 

		(f)	In
                                            case the Unit Option Grantor after the date of issuance of this Unit Option takes any action
                                            affecting the Shares, other than action described in Section 9, which in the opinion of the
                                            board of directors of the Unit Option Grantor would materially affect the rights of the Option
                                            Holder, the Exercise Price will be adjusted in such manner, if any, and at such time, by
                                            action by the directors of the Unit Option Grantor but subject in all cases to the prior
                                            written consent of the Canadian Securities Exchange, where required, and any necessary regulatory
                                            approval. Failure of the taking of action by the directors of the Unit Option Grantor so
                                            as to provide for an adjustment on or prior to the effective date of any action by the Unit
                                            Option Grantor affecting the Shares will be conclusive evidence that the board of directors
                                            of the Unit Option Grantor has determined that it is equitable to make no adjustment in the
                                            circumstances.

 

		(g)	If
                                            the Unit Option Grantor sets a record date to determine the holders of the Shares for the
                                            purpose of entitling them to receive any dividend or distribution or sets a record date to
                                            take any other action and, thereafter and before the distribution to such shareholders of
                                            any such dividend or distribution or the taking of any other action, decides not to implement
                                            its plan to pay or deliver such dividend or distribution or take such other action, then
                                            no adjustment in the Exercise Price will be required by reason of the setting of such record
                                            date.

 

		(h)	In
                                            the absence of a resolution of the directors of the Unit Option Grantor fixing a record date
                                            for a Special Distribution or Rights Offering, the Unit Option Grantor will be deemed to
                                            have fixed as the record date therefor the date on which the Special Distribution or Rights
                                            Offering is effected.

 

    	 	- 12 -	 

     

    

 

		(i)	As
                                            a condition precedent to the taking of any action which would require any adjustment to this
                                            Unit Option, including the Exercise Price, the Unit Option Grantor must take any corporate
                                            action which may be necessary in order that the Unit Option Grantor have unissued and reserved
                                            in its authorized capital and may validly and legally issue as fully paid and non-assessable
                                            all the shares or other securities which the Option Holder is entitled to receive on the
                                            full exercise thereof in accordance with the provisions hereof.

 

		(j)	The
                                            Unit Option Grantor will from time to time, immediately after the occurrence of any event
                                            which requires an adjustment or readjustment as provided in Section 9, forthwith give notice
                                            to the Option Holder specifying the event requiring such adjustment or readjustment and the
                                            results thereof, including the resulting Exercise Price.

 

		(k)	The
                                            Unit Option Grantor covenants to and in favor of the Option Holder that so long as the Unit
                                            Option remains outstanding, it will give notice to the Option Holder of its intention to
                                            fix a record date for any event referred to in subsections 9(a), (b) or (c) (other than the
                                            subdivision or consolidation of the Shares) which may give rise to an adjustment in the Exercise
                                            Price, and, in each case, such notice must specify the particulars of such event and the
                                            record date and the effective date for such event; provided that the Unit Option Grantor
                                            is only required to specify in such notice such particulars of such event as have been fixed
                                            and determined on the date on which such notice is given. Such notice shall be given not
                                            less than 14 days prior to each such applicable record date or effective date.

 

		11.	Consolidation
                                            and Amalgamation

 

		(a)	Neither
                                            the Unit Option Grantor nor the Note Option Grantors shall enter into any transaction whereby
                                            all or substantially all of their undertaking, property and assets would become the property
                                            of any other corporation (herein called a “successor corporation”) whether
                                            by way of reorganization, reconstruction, consolidation, amalgamation, merger, transfer,
                                            sale, disposition or otherwise, unless prior to or contemporaneously with the consummation
                                            of such transaction the Unit Option Grantor or Note Option Grantor, as applicable, and the
                                            successor corporation shall have executed such instruments and done such things as, in the
                                            opinion of counsel to the Option Holder, are necessary or advisable to establish that upon
                                            the consummation of such transaction:

 

		(i)	the
                                            successor corporation will have assumed all the covenants and obligations of the Unit Option
                                            Grantor or Note Option Grantor, as applicable, under the Unit Option or Note Option, as applicable,
                                            and

 

		(ii)	the
                                            Unit Option or Note Option, as applicable, will be a valid and binding obligation of the
                                            successor corporation entitling the Option Holder, as against the successor corporation,
                                            to all the rights of the Option Holder hereunder.

 

		(b)	Whenever
                                            the conditions of subsection 11(a) shall have been duly observed and performed the successor
                                            corporation shall possess, and from time to time may exercise, each and every right and power
                                            of the Unit Option Grantor or Note Option Grantor, as applicable, under this certificate
                                            in the name of the Unit Option Grantor or Note Option Grantor, as applicable, or otherwise
                                            and any act or proceeding by any provision hereof required to be done or performed by any
                                            director or officer of the Unit Option Grantor or Note Option Grantor, as applicable, may
                                            be done and performed with like force and effect by the like directors or officers of the
                                            successor corporation.

 

    	 	- 13 -	 

     

    

 

		(c)	The
                                            provisions of this Section 11 shall similarly apply to successive reorganizations, reconstructions,
                                            consolidations, amalgamations, mergers, transfers, sales or dispositions.

 

		12.	Cannabis
                                            Law Limitations

 

Notwithstanding
anything in this Subscription Right or any other agreement executed in connection herewith to the contrary, (i) the Unit Option Grantor
shall not be obligated to issue any Shares upon a purported exercise of the Unit Option if such issuance would result in a violation
of any U.S. Cannabis Law or the Unit Option Grantor or any of its subsidiaries would be subject to any sanction or penalty if such shares
were issued prior to obtaining any applicable approval under U.S. Cannabis Law and any request to so convert or exercise shall be void
ab initio, (ii) neither the Option Holder nor any beneficial owner of Unit Option shall seek to exercise the Unit Option if the issuance
of Shares on such conversion or exercise would result in a violation of any U.S. Cannabis Law or the Unit Option Grantor or any of its
subsidiaries would be subject to any sanction or penalty if such shares were issued prior to obtaining any applicable approval under
U.S. Cannabis Law by or in relation to such Option Holder and such request to convert or exercise shall be void ab initio, (iii) no provision
of this Subscription Right or any other agreement executed in connection herewith shall be construed such that, or effective to the extent
that, it or any other provision would be in violation of U.S. Cannabis Law, including for the avoidance of doubt any aspect of U.S. Cannabis
Law that requires approval by a regulator or regulatory body for acquisitions of, or possession of, the Unit Option Grantor or any of
its subsidiaries, and (iv) no exercise of any remedy or right of the Option Holder in respect hereof shall be effective to the extent
that such exercise would be in violation of U.S. Cannabis Law.

 

		13.	Notices

 

Any
notice, document or communication required or permitted by this Subscription Right Certificate to be given by a party hereto shall be
in writing and is sufficiently given if delivered personally, or if sent by prepaid registered mail, or if transmitted by any form of
recorded telecommunication tested prior to transmission, to such party addressed as follows:

 

If
to the Unit Option Grantor:

 

MedMen
Enterprises Inc.

10115 Jefferson Boulevard

Culver City, California 90232

 

Attention:
Reece Fulgham

Email: reece.fulgham@medmen.com

 

with
a copy to (which shall not constitute notice to the Unit Option Grantor):

 

Cassels
Brock & Blackwell LLP

Suite 2100, Scotia Plaza, 40 King St. W.

Toronto, ON M5H 3C2 Canada

 

Attention:
Greg Hogan

Email: ghogan@cassels.com

 

Weil,
Gotshal & Manges LLP

767 Fifth Avenue

New York, NY 10153

 

Attention:
Alexander Welch

Email: alexander.welch@weil.com

 

    	 	- 14 -	 

     

    

 

If
to the Note Option Grantor:

 

MedMen
Enterprises Inc.

MM Can USA, Inc.

 

10115
Jefferson Boulevard

Culver City, California 90232

 

Attention:
Reece Fulgham

Email: reece.fulgham@medmen.com

 

with
a copy to (which shall not constitute notice to the Note Option Grantor):

 

Cassels
Brock & Blackwell LLP

Suite 2100, Scotia Plaza, 40 King St. W.

Toronto, ON M5H 3C2 Canada

 

Attention:
Greg Hogan

Email: ghogan@cassels.com

 

Weil,
Gotshal & Manges LLP

767 Fifth Avenue

New York, NY 10153

 

Attention:
Alexander Welch

Email: alexander.welch@weil.com

 

If
to the Option Holder:

 

Serruya
Private Equity

210 Shields Court

Markham, ON L3R 8V2 Canada

 

Attention:
Daniel J. Kumer

Email: daniel@serruyaequity.com

 

		14.	Lost,
                                            Stolen, Mutilated or Destroyed Subscription Right

 

If
this Subscription Right is lost, stolen, mutilated or destroyed, the Unit Option Grantor may, on such terms as to indemnify the Unit
Option Grantor or otherwise as it may in its discretion reasonably impose (which shall, in the case of a mutilated certificate, include
the surrender thereof), issue a new certificate representing this Subscription Right of like denomination and tenor as the certificate
so lost, stolen, mutilated or destroyed. Any such new certificate shall constitute an original contractual obligation of the Unit Option
Grantor , whether or not the allegedly lost, stolen, mutilated, or destroyed Subscription Right shall be at any time enforceable by anyone.

 

		15.	Cumulative
                                            Remedies

 

Except
to the extent expressly provided in to the contrary, the rights and remedies provided in this Subscription Right are cumulative and are
not exclusive of, and are in addition to, and not in substitution for, any other rights or remedies available at law, in equity or otherwise.

 

    	 	- 15 -	 

     

    

 

		16.	Equitable
                                            Relief

 

Each
of the Unit Option Grantor, each of the Note Option Grantors, and the Option Holder acknowledges that a breach or threatened breach by
such party of any of its obligations under this Subscription Right would give rise to irreparable harm to the other party hereto for
which monetary damages would not be an adequate remedy and hereby agrees that in the event of a breach or a threatened breach by such
party of any such obligations, the other party hereto shall, in addition to any and all other rights and remedies that may be available
to it in respect of such breach, be entitled to equitable relief, including a restraining order, an injunction, specific performance
and any other relief that may be available from a court of competent jurisdiction.

 

		17.	Entire
                                            Agreement

 

This
Subscription Right constitutes the sole and entire agreement of the parties to this Subscription Right with respect to the subject matter
contained herein, and supersedes all prior and contemporaneous understandings and agreements, both written and oral, with respect to
such subject matter.

 

		18.	No
                                            Third-Party Beneficiaries

 

This
Subscription Right is for the sole benefit of the Unit Option Grantor, the Note Option Grantor, and the Option Holder and nothing in
this Subscription Right, express or implied, is intended to or shall confer upon any other person any legal or equitable right, benefit
or remedy of any nature whatsoever, under or by reason of this Subscription Right.

 

		19.	Headings

 

The
headings in this Subscription Right are for reference only and shall not affect the interpretation of this Subscription Right.

 

		20.	Amendment
                                            and Modification; Waiver

 

Except
as otherwise provided herein, this Subscription Right may only be amended, modified or supplemented by an agreement in writing signed
by each party hereto. No waiver by any party hereto of any of the provisions hereof shall be effective unless explicitly set forth in
writing and signed by the party so waiving. No waiver by any party shall operate or be construed as a waiver in respect of any failure,
breach or default not expressly identified by such written waiver, whether of a similar or different character, and whether occurring
before or after that waiver. No failure to exercise, or delay in exercising, any rights, remedy, power or privilege arising from this
Subscription Right shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy,
power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

 

		21.	No
                                            Assignment or Transfer

 

Neither
this Subscription Right nor any of the rights, interests or obligations hereunder may be assigned or transferred by the Option Holder
or any successors thereof, in whole or in part, by operation of law or otherwise, without the prior written consent of the Unit Option
Grantor and the Note Option Grantors. Any purported transfer or assignment in contravention of this Section 17 shall be void and of no
force or effect.

 

    	 	- 16 -	 

     

    

 

		22.	Binding
                                            Effect

 

This
Subscription Right and all of its provisions shall inure to the benefit of, and shall be binding upon, the Option Holder, the Note Option
Grantor and the Unit Option Grantor.

 

		23.	Severability

 

If
any one or more of the provisions or parts thereof contained in this Subscription Right should be or become invalid, illegal or unenforceable
in any respect in any jurisdiction, the remaining provisions or parts thereof contained herein shall be and shall be conclusively deemed
to be, as to such jurisdiction, severable therefrom and:

 

		(a)	the
                                            validity, legality or enforceability of such remaining provisions or parts thereof shall
                                            not in any way be affected or impaired by the severance of the provisions or parts thereof
                                            severed; and

 

		(b)	the
                                            invalidity, illegality or unenforceability of any provision or part thereof contained in
                                            this Subscription Right in any jurisdiction shall not affect or impair such provision or
                                            part thereof or any other provisions of this Subscription Right in any other jurisdiction.

 

		24.	Governing
                                            Law and Submission to Jurisdiction

 

In
all respects, including all matters of construction, validity and performance, this agreement and all disputes, claims and proceedings
in connection herewith shall be governed by, and construed and enforced in accordance with, the internal laws of the state of California
applicable to contracts made and performed in that state (without regard to the choice of law or conflicts of law provisions thereof)
and any applicable laws of the United States of America. Each of the parties hereto hereby consents and agrees that the Superior Court
of Los Angeles County, California, or, at any party’s option, the United States District Court for the Central District of California,
shall have exclusive jurisdiction to hear and determine any claims or disputes among the parties hereto pertaining to this Agreement
or to any matter arising out of or related to this Agreement. Each party hereby expressly submits and consents in advance to such jurisdiction
in any action or suit commenced in any such court, and such persons hereby waive any objection which they may have based upon lack of
personal jurisdiction, improper venue or forum non conveniens and hereby consent to the granting of such legal or equitable relief
as is deemed appropriate by such court.

 

		25.	Protection
                                            of Shareholders, Directors and Officers

 

Subject
as herein provided, all or any of the rights conferred upon the Option Holder may be enforced by such holder by appropriate legal proceedings.
No recourse under or upon any obligation, covenant or agreement herein contained or in any of the Subscription Rights represented hereby
shall be taken against any shareholder, officer or director of the Unit Option Grantor or the Note Option Grantor, either directly or
through the Unit Option Grantor or the Note Option Grantor , it being expressly agreed and declared that the obligations under the Subscription
Rights evidenced hereby, are solely corporate obligations of the Unit Option Grantor or the Note Option Grantor, as the case may be,
and that no personal liability whatever shall attach to or be incurred by the shareholders, officers, or directors of the Unit Option
Grantor or the Note Option Grantor or any of them in respect thereof, any and all rights and claims against every such shareholder, officer
or director being hereby expressly waived as a condition of and as a consideration for the issue of the Subscription Rights evidenced
hereby.

 

    	 	- 17 -	 

     

    

 

		26.	Waiver
                                            of Jury Trial

 

Each
party acknowledges and agrees that any controversy which may arise under this Subscription Right is likely to involve complicated and
difficult issues and, therefore, each such party irrevocably and unconditionally waives any right it may have to a trial by jury in respect
of any legal action arising out of or relating to this Subscription Right or the transactions contemplated hereby.

 

		27.	Time
                                            of the Essence

 

Time
shall be of the essence hereof.

 

		28.	Counterparts

 

This
Subscription Right may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed
to be one and the same agreement. A signed copy of this Subscription Right delivered by facsimile, e-mail or other means of electronic
transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Subscription Right.

 

		29.	No
                                            Strict Construction

 

This
Subscription Right shall be construed without regard to any presumption or rule requiring construction or interpretation against the
party drafting an instrument or causing any instrument to be drafted.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	 	- 18 -	 

     

    

 

IN
WITNESS WHEREOF, the Unit Option Grantors and the Note Option Grantors have duly executed this Subscription Right on August 17, 2021,
2021.

 

	 	MEDMEN ENTERPRISES INC., as Unit Option Grantor
	 	 
	 	By:	 
	 	 	Name: 	 
	 	 	Authorized Signatory
	 	 
	 	MEDMEN ENTERPRISES INC., as Note Option Grantor
	 	 
	 	By:  	 
	 	 	Name: 	 
	 	 	Authorized Signatory
	 	 
	 	MM CAN USA, INC., as Note Option Grantor.
	 	 
	 	By:  	 
	 	 	Name: 	 
	 	 	Authorized Signatory

 

     

     

    

 

Schedule “A”

FORM OF SHARE SUBSCRIPTION AGREEMENTExhibit 10.1

 

INVESTMENT ADVISORY
AGREEMENT

BETWEEN

lafayette square
SOUTHEAST bdc, inc.

AND

LS BDC ADVISER, LLC

 

This Investment Advisory Agreement
(this “Agreement”) is made on [●], 2021, by and between Lafayette Square Southeast BDC, Inc., a Delaware corporation
(the “Company”), and LS BDC Adviser, LLC, a Delaware limited liability company (the “Adviser”).

 

WHEREAS, the Company is a
newly organized, non-diversified, closed-end management investment company that has elected to be regulated as a business development
company (“BDC”) under the Investment Company Act of 1940, as amended (together with the rules promulgated thereunder,
the “Investment Company Act”);

 

WHEREAS, the Adviser is registered
as an investment adviser under the Investment Advisers Act of 1940, as amended (together with the rules promulgated thereunder, the “Advisers
Act”); and

 

WHEREAS, the Company desires
to retain the Adviser to provide investment advisory services to the Company in the manner and on the terms and conditions hereinafter
set forth, and the Adviser wishes to be retained to provide such services.

 

NOW, THEREFORE, in consideration
of the premises and the covenants hereinafter contained and for other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the Company and the Adviser hereby agree as follows:

 

Section 1.               
Duties of the Adviser.

 

(a)                              
Retention of Adviser. The Company hereby appoints the Adviser to act as the investment adviser to the Company and to manage
the investment and reinvestment of the assets of the Company, subject to the supervision of the board of directors of the Company (the
 “Board”), for the period and upon the terms herein set forth in accordance with:

 

(i)                
the investment objectives, policies and restrictions that are set forth in the Company’s Registration Statement on Form 10
filed with the Securities and Exchange Commission (the “SEC”), as supplemented, amended or superseded from time to
time, and in the Company’s confidential private placement memorandum dated [●], 2021, as amended from time to time or as may
otherwise be set forth in the Company’s reports or registration statements filed in compliance with the Securities Exchange Act
of 1934, as amended, as applicable;

 

(ii)              
during the term of this Agreement, all other applicable federal and state laws, rules and regulations, and the Company’s
certificate of incorporation and bylaws, as they may be amended from time to time (the “Organizational Documents”);

 

(iii)              
such investment policies, directives, regulatory restrictions as the Company may from time to time establish or issue and communicate
to the Adviser in writing; and

 

     

     

    

 

(iv)            
 the Company’s compliance policies and procedures as applicable to the Adviser and as administered by the Company’s
chief compliance officer.

 

(b)              
Responsibilities of Adviser. Without limiting the generality of the foregoing, the Adviser shall, during the term and subject
to the provisions of this Agreement:

 

(i)            
determine the composition and allocation of the Company’s investment portfolio, the nature and timing of any changes therein
and the manner of implementing such changes;

 

(ii)            
identify, evaluate and negotiate the structure of the investments made by the Company;

 

(iii)           
perform due diligence on prospective portfolio companies;

 

(iv)          
execute, close, monitor and service the Company’s investments;

 

(v)           
determine the securities and other assets that the Company shall purchase, retain or sell;

 

(vi)          
arrange financings and borrowing facilities for the Company; and

 

(vii)         
provide the Company with such other investment advisory, research and related services as the Company may, from time to time, reasonably
require for the investment of its funds.

 

(c)               Power
and Authority. To facilitate the Adviser’s performance of these undertakings, but subject to the restrictions contained
herein, the Company hereby delegates to the Adviser (which power and authority may be delegated by the Adviser to one or more
Sub-Advisers), and the Adviser hereby accepts, the power and authority to act on behalf of and in the name of the Company to
effectuate investment decisions for the Company, including the negotiation, execution and delivery of all documents relating to the
acquisition and disposition of the Company’s investments, the placing of orders for other purchase or sale transactions on
behalf of the Company or any entity in which the Company has a direct or indirect ownership interest, including any interest rate,
currency or other derivative instruments, and the engagement of any services providers deemed necessary or appropriate by the
Adviser to the exercise of such power and authority. In the event that the Company determines to incur or arrange debt or other
financing (or to refinance existing debt or other financing), the Adviser shall use commercially reasonable efforts to arrange for
such financing on the Company’s behalf, subject to the oversight and approval of the Board. If it is necessary for the Adviser
to make investments or obtain financing on behalf of the Company through a special purpose vehicle or a special tax blocker vehicle,
the Adviser shall have authority to create, or arrange for the creation of, such special purpose vehicles and to make investments or
obtain financing through such special purpose vehicles in accordance with applicable law. In connection with providing significant
managerial assistance, the Adviser may contract service providers to provide services to portfolio companies’ employees. The
Company also grants to the Adviser power and authority to engage in all activities and transactions (and anything incidental
thereto) that the Adviser deems, in its sole discretion, appropriate, necessary or advisable to carry out its duties pursuant to
this Agreement, including the authority to open accounts and deposit, maintain and withdraw funds of the Company or any of its
subsidiaries in any bank, savings and loan association, brokerage firm or other financial institution.

 

(d)              
Acceptance of Appointment. The Adviser hereby accepts such appointment and agrees during the term hereof to render the services
described herein for the compensation provided herein, subject to the limitations contained herein. Unless
and until it resigns or is removed as investment adviser to the Company in accordance with this Agreement, the Adviser, to the extent
of its powers as set forth in this Agreement, shall be an agent of the Company for the purpose of the Company’s business, and action
taken by the Adviser in accordance with such powers shall bind the Company. 

 

    - 2 -

     

    

 

(e)              
Sub-Advisers. The Adviser is hereby authorized to enter into one or more sub-advisory agreements (each a “Sub-Advisory
Agreement”) with other investment advisers (each a “Sub-Adviser”) pursuant to which the Adviser may obtain
the services of the Sub-Adviser(s) to assist the Adviser in fulfilling its responsibilities hereunder, subject to the oversight of the
Adviser and/or the Company, with the scope of such services and oversight to be set forth in each Sub-Advisory Agreement.

 

(i)             
The Adviser and not the Company shall be responsible for any compensation payable to any Sub-Adviser; provided, however, that the
Adviser shall have the right to direct the Company to pay directly any Sub-Adviser the amounts due and payable to such Sub-Adviser from
the fees and expenses otherwise payable to the Adviser under this Agreement.

 

(ii)           
Any Sub-Advisory Agreement entered into by the Adviser shall be in accordance with the requirements of the Investment Company Act
and the Advisers Act, including without limitation, the requirements of the Investment Company Act relating to Board and Company stockholder
approval thereunder, and other applicable federal and state law.

 

(iii)          
Any Sub-Adviser shall be subject to the same fiduciary duties as are imposed on the Adviser pursuant to this Agreement, the Investment
Company Act and the Advisers Act, as well as other applicable federal and state law.

 

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

 

(g)               Record
Retention. Subject to review by and the overall control of the Board, the Adviser shall maintain and keep all books, accounts
and other records of the Adviser that relate to activities performed by the Adviser hereunder as required under the Investment
Company Act and the Advisers Act. The Adviser agrees that all records that it maintains and keeps for the Company shall at all times
remain the property of the Company, shall be readily accessible during normal business hours, and shall be promptly surrendered to
the Company upon the termination of this Agreement or otherwise on written request by the Company. The Adviser further agrees that
the records that it maintains and keeps for the Company shall be preserved in the manner and for the periods prescribed by the
Investment Company Act, unless any such records are earlier surrendered as provided above. The Adviser shall have the right to
retain copies, or originals where required by Rule 204-2 promulgated under the Advisers Act, of such records to the extent required
by applicable law. The Adviser shall maintain records of the locations where books, accounts and records are maintained among the
persons and entities providing services directly or indirectly to the Adviser or the Company.

 

Section 2.               
Expenses Payable by the Company.

 

(a)           
Adviser Personnel. All investment personnel of the Adviser, when and to the extent engaged in providing investment advisory
services hereunder, and the compensation and routine overhead expenses of such personnel allocable to such services, shall be provided
and paid for by the Adviser and not by the Company.

 

    - 3 -

     

    

 

(b)               Company’s
Costs. Subject to the limitations on expense reimbursement of the Adviser as set forth in Sections 2(a) and (c), the Company,
either directly or through reimbursement to the Adviser, shall bear all out-of-pocket costs and expenses of its operations and its
transactions, including, but not limited to, expenses incurred by the Adviser and payable to third parties, including agents,
consultants and other advisors, in monitoring the financial and legal affairs of the Company, news and quotation subscriptions, and
market or industry research expenses; the cost of calculating the Company’s net asset value; the cost of effecting sales and
repurchases of shares of the Company’s common stock and other securities; management and incentive fees payable pursuant to
this Agreement; fees payable to third parties, including agents, consultants and other advisors, relating to, or associated with,
making investments, and, if necessary, enforcing its rights, and valuing investments (including third-party valuation firms);
expenses related to consummated or unconsummated investments, including out-of-pocket due diligence expenses and dead deal or broken
deal expenses; rating agency expenses; fees to arrange debt financings for the Company; distributions on the Company’s shares;
administration fees payable under the administration agreement (the “Administration Agreement”), by and between
the Company and LS Administration LLC, a Delaware limited liability company (the “Administrator”); the allocated
costs incurred by the Administrator in providing managerial assistance to those portfolio companies that request it, including the
allocated costs of providing services to portfolio companies’ employees (including cost incurred by service providers);
transfer agent and custodial fees; fees and expenses associated with marketing efforts (including attendance at investment
conferences and similar events); accounting, audit and tax preparation expenses; federal and state registration fees; any exchange
listing fees; federal, state, local, and other taxes; costs and expenses incurred in relation to compliance with applicable laws and
regulations and the operation and administration of the Company generally; independent directors’ fees and expenses, including
any legal counsel or other advisors retained by, or at the discretion or for the benefit of, the independent directors; brokerage
commissions; costs of proxy statements, stockholders’ reports and notices; costs of preparing government filings, including
periodic and current reports with the SEC; the Company’s fidelity bond, directors and officers/errors and omissions liability
insurance, and any other insurance premiums; indemnification payments; expenses relating to the development and maintenance of the
Company’s website; other operations and technology costs; direct costs and expenses of administration, including printing,
mailing, copying, telephone, fees of independent accountants and outside legal costs; and all other expenses incurred by the Company
or the Administrator in connection with administering the Company’s business, including, but not limited to, payments under
the Administration Agreement based upon the Company’s allocable portion of the Administrator’s overhead in performing
its obligations under the Administration Agreement, including rent, travel and the allocable portion of the cost of the
Company’s chief compliance officer and chief financial officer and their respective staffs, including operations and tax
professionals, and administrative staff providing support services in respect of the Company.

 

For avoidance of doubt, it is
agreed and understood that, from time to time, the Adviser or its affiliates may pay amounts or bear costs properly constituting Company
expenses as set forth herein or otherwise and that the Company shall reimburse the Adviser or its affiliates for all such costs and expenses
that have been paid by the Adviser or its affiliates on behalf of the Company.

 

(c)              
Portfolio Company’s Compensation. In certain circumstances the Adviser, any Sub-Adviser, or any of their respective
Affiliates (as defined below), may receive compensation from a portfolio company, in connection with the Company’s investment in
such portfolio company. Any compensation received by the Adviser, Sub-Adviser, or any of their respective Affiliates, attributable to
the Company’s investment in any portfolio company, in excess of any of the limitations in or exemptions granted from the Investment
Company Act, any interpretation thereof by the staff of the SEC, or the conditions set forth in any exemptive relief granted to the Adviser,
any Sub-Adviser or the Company by the SEC, shall be delivered promptly to the Company, and the Company will retain such excess compensation
for the benefit of its stockholders.

 

Section 3.               
Compensation of the Adviser.

 

The Company agrees to pay,
and the Adviser agrees to accept, as compensation for the services provided by the Adviser hereunder, a base management fee (“Base
Management Fee”) and an incentive fee (“Incentive Fee”) as hereinafter set forth. Any of the fees payable
to the Adviser under this Agreement for any partial calendar quarter shall be appropriately prorated based on the actual number of days
elapsed during such partial quarter as a fraction of the number of days in the relevant calendar year.

 

(a)              
Base Management Fee. The Base Management Fee is payable quarterly in arrears. The Base
Management Fee shall be based on the average value of the Company’s gross assets at the end of the two most recently completed calendar
quarters (the “Average Gross Assets”). For periods ending on or prior to the date of the closing of (i) a quotation
or listing of shares of common stock on a national securities exchange, including an initial public offering, (ii) the sale of all or
substantially all of the Company’s capital stock or assets to, or another liquidity event with, another entity or (iii) a transaction
or series of transactions, including by way of merger, consolidation, recapitalization, reorganization, or sale of stock in each case
for consideration of either cash and/or publicly listed securities of the acquirer (each, a “Liquidity Event”), the Base Management
Fee shall be calculated at an annual rate of 0.75% of the Average Gross Assets. 

 

    - 4 -

     

    

 

(b)              
Incentive Fee. The Incentive Fee shall consist of two parts, as follows:

 

(i)               The
first part, referred to as the “Incentive Fee on Income,” shall be calculated and payable quarterly in arrears based on the
Company’s “Pre-Incentive Fee Net Investment Income” for the immediately preceding quarter. “Pre-Incentive
Fee Net Investment Income” means interest income, dividend income and any other income (including any other fees, other than
fees for providing managerial assistance, such as commitment, origination, structuring, diligence and consulting fees or other fees that
the Company receives from portfolio companies) accrued during the calendar quarter, minus the Company’s operating expenses for
the quarter (including the Base Management Fee, expenses payable under the Administration Agreement and any interest expense and dividends
paid on any issued and outstanding preferred stock, but excluding the incentive fee). Pre-Incentive Fee Net Investment Income includes,
in the case of investments with a deferred interest feature (such as original issue discount debt instruments with payment-in-kind (“PIK”)
interest and zero coupon securities), accrued income that the Company has not yet received in cash. Pre-Incentive Fee Net Investment
Income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. For purposes
of computing the Company’s Pre-Incentive Fee Net Investment Income, the calculation methodology will look through total return
swaps as if the Company owned the referenced assets directly. The payment of the Incentive Fee on Income shall be subject to payment
of a preferred return to investors each quarter, expressed as a quarterly rate of return on the value of the Company’s net assets
at the end of the most recently completed calendar quarter, subject to a “catch up” feature (as described below).

 

(1)          
For periods ending on or prior to the date of the closing of a Liquidity Event, the calculation of the Incentive Fee on Income
is as follows:

 

(A)      
No Incentive Fee on Income shall be payable to the Adviser in any calendar quarter in which the Company’s Pre-Incentive Fee
Net Investment Income does not exceed the preferred return rate of 1.25% per quarter (or 5.00% annualized) (the “Hurdle Rate
Return”) on net assets;

 

(B)       
100% of the Company’s Pre-Incentive Fee Net Investment Income, if any, that exceeds the Hurdle Rate Return but is less than
or equal to 1.47% in any calendar quarter (or 5.88% annualized) shall be payable to the Adviser. This portion of the Incentive Fee on
Income is referred to as the “catch up” and is intended to provide the Adviser with an incentive fee of 15.0% on all of the
Company’s Pre-Incentive Fee Net Investment Income when the Company’s Pre-Incentive Fee Net Investment Income reaches 1.47%
(or 5.88% annualized) in any calendar quarter; and

 

(C)       
For any quarter in which the Company’s Pre-Incentive Fee Net Investment Income exceeds 1.47% in any calendar quarter (or
5.88% annualized), the Incentive Fee on Income shall equal 15.0% of the amount of the Company’s Pre-Incentive Fee Net Investment
Income as the Hurdle Rate Return and catch up will have been achieved.

 

(2)          
For any period ending after the closing of a Liquidity Event, the calculation of the Incentive Fee on Income is as follows:

 

(A)      
No Incentive Fee on Income shall be payable to the Adviser in any calendar quarter in which the Company’s Pre-Incentive Fee
Net Investment Income does not exceed the Hurdle Rate Return on net assets

 

(B)       
 100% of the Company’s Pre-Incentive Fee Net Investment Income, if any, that exceeds the Hurdle Rate Return but is less than
or equal to 1.47% in any calendar quarter (or 5.88% annualized) shall be payable to the Adviser. This portion of the Incentive Fee on
Income is referred to as the “catch up” and is intended to provide the Adviser with an incentive fee of 17.5% on all of the
Company’s Pre-Incentive Fee Net Investment Income when the Company’s Pre-Incentive Fee Net Investment Income reaches 1.47%
(or 5.88% annualized) in any calendar quarter; and

 

    - 5 -

     

    

 

(C)       
For any quarter in which the Company’s Pre-Incentive Fee Net Investment Income exceeds 1.47% in any calendar quarter (or
5.88% annualized), the Incentive Fee on Income shall equal 17.5% of the amount of the Company’s Pre-Incentive Fee Net Investment
Income as the Hurdle Rate Return and catch up will have been achieved.

 

(ii)             
The second part of the incentive fee, referred to as the “Incentive Fee on Capital Gains,” shall be determined and
payable in arrears as of the end of each calendar year (or upon termination of this Agreement, if earlier). The Incentive Fee on Capital
Gains shall be calculated based on the Company’s “incentive fee capital gains,” which shall equal the Company’s
realized capital gains on a cumulative basis from the date of the Company’s election to be regulated as a business development company,
as of the end of each calendar year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis,
less the aggregate amount of any previously paid Incentive Fee on Capital Gains. For the purpose of computing the Incentive Fee on Capital
Gains, the calculation methodology will look through derivative financial instruments or swaps as if the Company owned the reference assets
directly. Therefore, realized gains and realized losses on the disposition of any reference assets, as well as unrealized depreciation
on reference assets retained in the derivative financial instrument or swap, will be included on a cumulative basis in the calculation
of the Incentive Fee on Capital Gains. For periods ending on or prior to the closing of a Liquidity Event, the Incentive Fee on Capital
Gains shall equal 15.0% of the Company’s incentive fee capital gains, and for periods ending after the date of the closing of a
Liquidity Event, the Incentive Fee on Capital Gains shall equal 17.5% of the Company’s incentive fee capital gains.

 

Section 4.           
Covenant of the Adviser.

 

The Adviser covenants that
it is registered as an investment adviser under the Advisers Act on the effective date of this Agreement, and shall maintain such registration
until the expiration or termination of this Agreement. The Adviser agrees that its activities shall at all times be in compliance in all
material respects with all applicable federal and state laws governing its operations and investments, except to the extent that any such
noncompliance would not reasonably be expected to have a material adverse effect on the ability of the Adviser to fulfill its obligations
under this Agreement. The Adviser agrees to observe and comply with applicable provisions of the code of ethics adopted by the Company
pursuant to Rule 17j-1 under the Investment Company Act, as such code of ethics may be amended from time to time.

 

Section 5.           
Brokerage Commissions.

 

The Adviser is hereby authorized,
to the fullest extent now or hereafter permitted by law, to cause the Company to pay a member of a national securities exchange, broker
or dealer an amount of commission for effecting a securities transaction in excess of the amount of commission another member of such
exchange, broker or dealer would have charged for effecting that transaction, if the Adviser determines in good faith, taking into account
factors, including without limitation, price (including the applicable brokerage commission or dealer spread), size of order, difficulty
of execution, and operational facilities of the firm and the firm’s risk and skill in positioning blocks of securities, that such
amount of commission is reasonable in relation to the value of the brokerage and/or research services provided by such member, broker
or dealer, viewed in terms of either that particular transaction or its overall responsibilities with respect to the Company’s portfolio,
and is consistent with the Adviser’s duty to seek the best execution on behalf of the Company. Notwithstanding the foregoing, with
regard to transactions with or for the benefit of the Company, the Adviser may not pay any commission or receive any rebates or give-ups,
nor participate in any business arrangements which would circumvent this restriction.

 

Section 6.           
Other Activities of the Adviser.

 

The services of the Adviser
to the Company are not exclusive, and the Adviser may engage in any other business or render similar or different services to others including,
without limitation, the direct or indirect sponsorship or management of other investment-based accounts or commingled pools of capital,
however structured, having investment objectives similar to those of the Company, so long as its services to the Company hereunder are
not impaired thereby, and nothing in this Agreement shall limit or restrict the right of any manager, partner, member (including its members
and the owners of its members), officer or employee of the Adviser to engage in any other business or to devote his or her time and attention
in part to any other business, whether of a similar or dissimilar nature, or to receive any fees or compensation in connection therewith
(including fees for serving as a director of, or providing consulting services to, one or more of the Company’s portfolio companies,
subject to applicable law). The Adviser assumes no responsibility under this Agreement other than to render the services called for hereunder.

 

    - 6 -

     

    

 

Section 7.           
Responsibility of Dual Directors, Officers and/or Employees.

 

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

 

Section 8.           
Indemnification.

 

Subject to
Section 9, the Adviser, any Sub-Adviser, each of their respective directors, trustees, officers, managers, partners,
stockholders or members (and their stockholders or members, including the owners of their stockholders or members), agents,
employees, controlling persons (as determined under the Investment Company Act (“Controlling Persons”)), any
other person or entity Affiliated with the Adviser or Sub-Adviser (including each of their respective directors, trustees, officers,
stockholders or members (and their stockholders or members, including the owners of their stockholders or members), agents,
employees or Controlling Persons) and any other person or entity acting on behalf of, the Adviser or Sub-Adviser (each an
 “Indemnified Party” and, collectively, the “Indemnified Parties”) shall not be liable to the
Company or any stockholder thereof for any action taken or omitted to be taken by the Adviser or any Sub-Adviser in connection with
the performance of any of their duties or obligations under this Agreement or otherwise as an investment adviser of the Company
(except to the extent specified in Section 36(b) of the Investment Company Act concerning loss resulting from a breach of
fiduciary duty with respect to the receipt of compensation for services), and the Company shall indemnify, defend and protect the
Indemnified Parties (each of whom shall be deemed a third party beneficiary hereof) and hold them harmless from and against all
losses, damages, liabilities, costs and expenses (including reasonable attorneys’ fees and amounts reasonably paid in
satisfaction of judgments, in compromises and settlement, as fines and penalties and legal or other costs and reasonable expenses of
investigating or defending against any claim or alleged claim) of any nature whatsoever, known or unknown, liquidated or
unliquidated) (“Losses”) incurred by the Indemnified Parties in or by reason of any pending, threatened or
completed action, suit, investigation or other proceeding (including an action or suit by or in the right of the Company or its
security holders) arising out of or otherwise based upon the performance of any of the Indemnified Parties’ duties or
obligations under this Agreement, any Sub-Advisory Agreement, or otherwise as an investment adviser of the Company to the extent
such Losses are not fully reimbursed by insurance and otherwise to the fullest extent such indemnification would not be inconsistent
with the Organizational Documents, the Investment Company Act, the laws of the State of New York and other applicable law.

 

For purposes of this Agreement,
 “Affiliate” or “Affiliated” or any derivation thereof means with respect to any individual, corporation,
partnership, trust, joint venture, limited liability company or other entity or association (“Person”): (a) any
Person directly or indirectly owning, controlling, or holding, with the power to vote, 10% or more of the outstanding voting securities
of such other Person; (b) any Person 10% or more of whose outstanding voting securities are directly or indirectly owned, controlled
or held, with the power to vote, by such other Person; (c) any Person directly or indirectly controlling, controlled by or under
common control with such other Person; (d) any executive officer, director, trustee or general partner of such other Person; or (e) any
legal entity for which such Person acts as an executive officer, director, trustee or general partner.

 

Section 9.           
Limitation on Indemnification.

 

Notwithstanding anything
in Section 8 to the contrary, nothing contained herein shall protect or be deemed to protect any of the Indemnified
Parties against, or entitle or be deemed to entitle any of the Indemnified Parties to indemnification in respect of, any Losses to
the Company or its security holders to which the Indemnified Parties would otherwise be subject primarily attributable to the
willful misfeasance, bad faith or gross negligence in the performance of the Adviser’s or Sub-Adviser’s duties or by
reason of the reckless disregard of the Adviser’s or Sub-Adviser’s duties and obligations under this Agreement or any
Sub-Advisory Agreement (to the extent applicable, as the same shall be determined in accordance with the Investment Company Act and
any interpretations or guidance by the SEC or its staff thereunder).

 

    - 7 -

     

    

 

In addition, notwithstanding
any of the foregoing to the contrary, the provisions of Section 8 and this Section 9 shall not be construed so as to provide
for the indemnification of any Indemnified Party for any liability (including liability under federal securities laws which, under certain
circumstances, impose liability even on persons that act in good faith), to the extent (but only to the extent) that such indemnification
would be in violation of applicable law, but shall be construed so as to effectuate the provisions of Section 8 and this Section 9
to the fullest extent permitted by law.

 

Section 10.         
Effectiveness, Duration and Termination of Agreement.

 

(a)              
Term and Effectiveness. This Agreement shall become effective as of the date first
written above. This Agreement shall remain in effect for two years, and thereafter shall continue automatically for successive
one-year periods; provided that such continuance is specifically approved at least annually by: (i) the vote of the Board, or by the vote
of a majority of the outstanding voting securities of the Company and (ii) the vote of a majority of the Independent Directors, in accordance
with the requirements of the Investment Company Act, or as otherwise permitted under Section 15 of the Investment Company Act.

 

(b)              
Termination. This Agreement may be terminated at any time, without the payment of any penalty, (i) by the Company upon 60
days’ prior written notice to the Adviser: (A) upon the vote of a majority of the outstanding voting securities of the Company
(as “majority of the outstanding voting securities” is defined in Section 2(a)(42) of the Investment Company Act)
or (B) by the vote of the Independent Directors; or (ii) by the Adviser upon not less than 60 days’ prior written notice to
the Company. This Agreement shall automatically terminate in the event of its “assignment” (as such term is defined
for purposes of construing Section 15(a)(4) of the Investment Company Act). The provisions of Sections 8 and 9 shall remain
in full force and effect, and the Adviser shall remain entitled to the benefits thereof, notwithstanding any termination of this Agreement.
Further, notwithstanding the termination or expiration of this Agreement as aforesaid, the Adviser shall be entitled to any amounts owed
to it under Section 3 through the date of termination or expiration and Sections 8 and 9 shall continue in force and effect and apply
to the Adviser and its representatives as and to the extent applicable.

 

(c)              
Duties of Adviser Upon Termination. The Adviser shall promptly upon termination:

 

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

 

(ii)             
deliver to the Board all assets and documents of the Company then in custody of the Adviser; and

 

(iii)            
 cooperate with the Company to provide an orderly transition of services.

 

Section 11.         
Notices.

 

Any notice under this Agreement
shall be given in writing, addressed and delivered or mailed, postage prepaid, to the other party at the address listed below or at such
other address for a party as shall be specified in a notice given in accordance with this Section.

 

Section 12.         
Amendments.

 

This Agreement may be amended
by mutual written consent of the parties; provided that the consent of the Company is required to be obtained in conformity with the requirements
of the Investment Company Act.

 

Section 13.         
Severability.

 

    - 8 -

     

    

 

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

 

Section 14.         
Counterparts.

 

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

 

Section 15.         
Governing Law.

 

Notwithstanding the place
where this Agreement may be executed by any of the parties hereto and the provisions of Sections 8 and 9, this Agreement shall be construed
in accordance with the laws of the State of New York. For so long as the Company is regulated as a BDC under the Investment Company Act,
this Agreement shall also be construed in accordance with the applicable provisions of the Investment Company Act and the Advisers Act.
In such case, to the extent the applicable laws of the State of New York or any of the provisions herein conflict with the provisions
of the Investment Company Act or the Advisers Act, the Investment Company Act and the Advisers Act shall control.

 

Section 16.         
Third Party Beneficiaries.

 

Except for any Sub-Adviser
and any Indemnified Party, such Sub-Adviser and the Indemnified Parties each being an intended beneficiary of this Agreement, this Agreement
is for the sole benefit of the parties hereto and their permitted assigns and nothing herein express or implied shall give or be construed
to give to any person, other than the parties hereto and such assigns, any legal or equitable rights hereunder.

 

Section 17.         
Entire Agreement.

 

This Agreement contains the
entire agreement of the parties and supersedes all prior agreements, understandings and arrangements with respect to the subject matter
hereof.

 

Section 18.         
Insurance.

 

The Company shall acquire
and maintain a directors and officers liability insurance policy or similar insurance policy, which may name the Adviser and any Sub-Adviser
each as an additional insured party (each an “Additional Insured Party” and collectively the “Additional Insured
Parties”). Such insurance policy shall include reasonable coverage from a reputable insurer. The Company shall make all premium
payments required to maintain such policy in full force and effect; provided, however, each Additional Insured Party, if any, shall pay
to the Company, in advance of the due date of such premium, its allocated share of the premium. Irrespective of whether the Adviser and
any Sub-Adviser is a named Additional Insured Party on such policy, the Company shall provide the Adviser and any Sub-Adviser with written
notice upon receipt of any notice of: (a) any default under such policy; (b) any pending or threatened termination, cancellation
or non-renewal of such policy or (c) any coverage limitation or reduction with respect to such policy. The foregoing provisions of
this Section 18 notwithstanding, the Company shall not be required to acquire or maintain any insurance policy to the extent that
the same is not available upon commercially reasonable pricing terms or at all, as determined in good faith by the required majority (as
defined in Section 57(o) of the Investment Company Act) of the Board.

 

(signature page follows)

 

    - 9 -

     

    

 

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

 

	 	LAFAYETTE SQUARE SOUTHEAST BDC, INC.
	 	a Delaware corporation
	 	 

	 	 By:	 
	 	 Name:	 
	 	 Title:	 
	 	 	 

	 	 LS BDC ADVISER, LLC
	 	a Delaware limited liability company
	 	 

	 	 By:	 
	 	 Name:	 
	 	 Title:	 

 

[Signature Page to Investment Advisory Agreement]

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