Document:

Exhibit 10.1

 

STOCK PURCHASE AND TRANSACTION AGREEMENT

by and between

KCAP FINANCIAL, INC.

 

and

 

BC PARTNERS ADVISORS L.P.

 

_____________________

 

DATED AS OF DECEMBER 14, 2018

 

     

     

    

 

TABLE
OF CONTENTS

 

	 	 	Page
	 	 	 
	 	Article I	 
	 	DEFINED TERMS	 
	 	 	 
	1.1	Defined Terms	3
	 	 	 
	 	Article II	 
	 	TRANSACTIONS	 
	 	 	 
	2.1	Management Agreements	11
	2.2	Stockholder Payments	11
	2.3	Reinvestment of Incentive Fees	12
	2.4	Amendment of KCAP Organizational Documents	12
	2.5	Treatment of Outstanding Options and Restricted Shares	13
	2.6	Payments; Withholding Rights	14
	 	 	 
	 	Article III	 
	 	CLOSING; CLOSING DELIVERIES	 
	 	 	 
	3.1	Closing	14
	3.2	Closing Deliveries	14
	 	 	 
	 	Article IV	 
	 	REPRESENTATIONS AND WARRANTIES OF KCAP	 
	 	 	 
	4.1	Corporate Organization	15
	4.2	Capitalization	16
	4.3	Authority; KCAP Board Approval; No Violation	18
	4.4	Consents and Approvals	19
	4.5	Reports; Regulatory Matters	19
	4.6	Financial Statements	20
	4.7	Broker’s Fees	22
	4.8	Absence of Certain Changes or Events	22
	4.9	Legal Proceedings; Compliance with Law	22
	4.10	Taxes and Tax Returns	23
	4.11	Employee Matters	24
	4.12	KCAP Material Contracts	26
	4.13	Property; Investment Securities	27
	4.14	Intellectual Property	28
	4.15	State Takeover Statutes	28
	4.16	KCAP Information	28
	4.17	Insurance	29
	4.18	Related Party Transactions	29
	4.19	Investigation	29
	4.20	No Other Representations or Warranties	30

 

     i

     

    

 

	 	Article V	 
	 	REPRESENTATIONS AND WARRANTIES OF BCP	 
	 	 	 
	5.1	Corporate Organization	30
	5.2	Authority; No Violation	30
	5.3	Consents and Approvals	32
	5.4	Regulatory Matters	33
	5.5	Broker’s Fees	33
	5.6	Legal Proceedings	33
	5.7	State Takeover Statutes	34
	5.8	BCP Information	34
	5.9	No Financing Condition	34
	5.10	No Contracts with Management or Stockholders	34
	5.11	Securities Laws Matters	34
	5.12	Investigation	35
	5.13	No Other Representations or Warranties	35
	 	 	 
	 	Article VI	 
	 	COVENANTS RELATING TO CONDUCT OF BUSINESS	 
	 	 	 
	6.1	KCAP Forbearances	36
	 	 	 
	 	Article VII	 
	 	ADDITIONAL AGREEMENTS	 
	 	 	 
	7.1	Regulatory and Other Matters	39
	7.2	Access to Information; Confidentiality	41
	7.3	KCAP Stockholder Approval	41
	7.4	Post-Closing Employment Matters	43
	7.5	Indemnification; Directors’ and Officers’ Insurance	44
	7.6	Additional Agreements	44
	7.7	Advice of Changes	44
	7.8	No Solicitation	45
	7.9	Takeover Statutes	48
	7.10	Stockholder Litigation	48
	7.11	LibreMax Merger Agreement	48
	7.12	KCAP Benefit Plans	49
	7.13	Removal of Legend	49
	 	 	 
	 	Article VIII	 
	 	CONDITIONS PRECEDENT	 
	 	 	 
	8.1	Conditions to Each Party’s Obligation To Consummate the Closing	50
	8.2	Conditions to BCP’s Obligation to Consummate the Closing	50
	8.3	Conditions to KCAP’s Obligation to Consummate the Closing	51

 

     ii

     

    

 

	 	Article IX	 
	 	TERMINATION AND AMENDMENT	 
	 	 	 
	9.1	Termination	52
	9.2	Effect of Termination	53
	9.3	Fees and Expenses	53
	9.4	Expense Reimbursement.	53
	9.5	Amendment	54
	9.6	Extension; Waiver	54
	 	 	 
	 	Article X	 
	 	GENERAL PROVISIONS	 
	 	 	 
	10.1	Limited Survival of Representations, Warranties, Covenants and Agreements	54
	10.2	Notices	54
	10.3	Interpretation	55
	10.4	Counterparts	56
	10.5	Entire Agreement	56
	10.6	Governing Law; Jurisdiction	56
	10.7	Publicity	56
	10.8	Assignment; Third Party Beneficiaries	57
	10.9	Remedies	57
	10.10	Waiver of Jury Trial	58
	10.11	Severability	58
	10.12	No Suits Against Non-Parties	58

 

	Exhibits	 
	 	 
	Exhibit A	Form of Investment Advisory Agreement
	Exhibit B	Form of Administration Agreement

 

     iii

     

    

 

STOCK PURCHASE AND TRANSACTION AGREEMENT

 

STOCK PURCHASE AND TRANSACTION AGREEMENT,
dated as of December 14, 2018 (this “Agreement”), by and between KCAP Financial, Inc., a Delaware corporation
(“KCAP”), and BC Partners Advisors L.P., a Delaware limited partnership (“BCP”).
Each of KCAP and BCP may, from time to time, be referred to individually herein as a “Party” and collectively
as the “Parties.” Capitalized terms used but not otherwise defined herein shall have the meanings ascribed
to such terms in Article I.

 

RECITALS:

 

WHEREAS, KCAP is an internally managed
business development company subject to regulation under the Investment Company Act of 1940 (the “Investment Company
Act”);

 

WHEREAS, it is contemplated that, following
the date hereof but prior to the Closing, BCP will form or caused to be formed a new entity (the “Investment Adviser”)
that will be registered with the Securities and Exchange Commission (“SEC”) as an investment adviser
under the Investment Advisers Act of 1940 (the “Investment Advisers Act”);

 

WHEREAS, prior to the date hereof, (i)
KCAP and BCP Great Lakes Fund LP, a Cayman Islands exempted limited partnership (“Great Lakes”) managed
by BCP Great Lakes GP LP (“Great Lakes GP”), entered into a subscription agreement pursuant to which
KCAP has agreed to make aggregate capital contributions to Great Lakes of $25,000,000, and (ii) KCAP and Great Lakes GP entered
into a letter agreement, pursuant to which KCAP and Great Lakes GP have agreed to certain terms regarding the timing and waiver
of the management fee payable by KCAP in respect of its investment in Great Lakes;

 

WHEREAS, prior to the date hereof, KCAP
and BCP entered into a letter agreement (the “Asset Purchase Letter Agreement”) pursuant to which each
of KCAP and BCP will use its commercially reasonable efforts to effect the sale by BCP (or its Affiliates or advisory clients thereof),
in one or more transactions, of certain assets held by BCP (or its Affiliates or advisory clients thereof) that, taken together,
have an aggregate principal amount of approximately $75,000,000 less the aggregate amount of capital contributions
made by KCAP to Great Lakes;

 

WHEREAS, pursuant to that certain Agreement
and Plan of Merger (the “LibreMax Merger Agreement”) dated as of November 8, 2018 by and among KCAP,
Commodore Holdings, L.L.C., a Delaware limited liability company, Katonah Debt Advisors, L.L.C., a Delaware limited liability company
(“Katonah”), Trimaran Advisors, L.L.C., a Delaware limited liability company (“Trimaran”),
Trimaran Advisors Management, L.L.C., a Delaware limited liability (together with Katonah and Trimaran, the “Asset
Management Subsidiaries”), LibreMax Intermediate Holdings, LP, a Delaware limited partnership (“LibreMax”),
LM Rubicon Merger Sub 1, LLC, a Delaware limited liability company, LM Rubicon Merger Sub 2, LLC, a Delaware limited liability
company, and LM Rubicon Merger Sub 3, LLC, a Delaware limited liability company, LibreMax will acquire the Asset Management Subsidiaries
on the terms, and subject to the conditions, set forth therein (the “LibreMax Transaction”);

 

    	 	1	 

     

    

 

WHEREAS, the Parties desire to enter
into a series of transactions pursuant to which, among other things, (a) at the Closing, (i) KCAP and the Investment Adviser will
enter into an investment advisory agreement in the form attached hereto as Exhibit A (the “Investment Advisory
Agreement”), pursuant to which the Investment Adviser will become the investment adviser to KCAP, (ii) KCAP and BC
Partners Management LLC, an Affiliate of BCP (the “Administrator”), will enter into an administration
agreement in the form attached hereto as Exhibit B (the “Administration Agreement” and, together
with the Investment Advisory Agreement, the “Management Agreements”), pursuant to which the Administrator
will become administrator to KCAP and (iii) BCP will cause to be paid to the holders of record of KCAP Eligible Shares the Stockholder
Payments; and (b) from time to time following the Closing, BCP or an Affiliate thereof will acquire directly from KCAP shares of
common stock, par value $0.01 per share, of KCAP (“KCAP Common Stock”) in private placement transactions
exempt from registration under Section 4(a)(2) of the Securities Act, in each case on the terms and subject to the conditions set
forth herein (the foregoing (a) and (b), together with the other transactions contemplated by this Agreement, the “Contemplated
Transactions”);

 

WHEREAS, the board of directors of KCAP
(the “KCAP Board”), at a meeting duly called and held at which all members (including the independent
members) thereof were present, has duly and unanimously adopted resolutions (a) determining that this Agreement, the Management
Agreements and the Contemplated Transactions are advisable, fair to and in the best interests of KCAP and the holders of KCAP Common
Stock (the “KCAP Stockholders”); (b) directing that the Investment Advisory Agreement be submitted to
the KCAP Stockholders for approval at a special meeting of KCAP Stockholders to be duly called and held therefor (the “KCAP
Stockholder Meeting”); (c) recommending that the KCAP Stockholders so approve the Investment Advisory Agreement,
in accordance with Section 15 of the Investment Company Act, at the KCAP Stockholder Meeting (such recommendation, the “KCAP
Board Recommendation”); and (d) setting a preliminary record date in connection with the KCAP Stockholder Meeting;

 

WHEREAS, concurrently with the execution
and delivery of this Agreement, each of the members of the KCAP Board is entering into a voting and support agreement with BCP;
and

 

WHEREAS, the Parties desire to make certain
representations, warranties and agreements in connection with the Contemplated Transactions and to prescribe certain conditions
to the Contemplated Transactions.

 

NOW, THEREFORE, in consideration of
the mutual covenants, representations, warranties and agreements contained in this Agreement, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the Parties agree as follows:

 

    	 	2	 

     

    

 

Article
I

DEFINED TERMS

 

1.1       Defined
Terms. For purposes of this Agreement, the following terms shall have the meanings set forth below:

 

“Acceptable Confidentiality Agreement”
has the meaning set forth in Section 7.8(d).

 

“Administration Agreement”
has the meaning set forth in the Recitals to this Agreement.

 

“Administrator” has
the meaning set forth in the Recitals to this Agreement.

 

“Adverse Recommendation Change”
has the meaning set forth in Section 7.3(d).

 

“Affiliate” means,
with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under common control with such
Person.

 

“Affiliate Transaction”
has the meaning set forth in Section 4.21.

 

“Agreement” has the
meaning set forth in the preamble to this Agreement.

 

“Alternative Acquisition Agreement”
has the meaning set forth in Section 7.8(c)(iv).

 

“Amended and Restated KCAP Certificate”
has the meaning set forth in Section 2.4(a).

 

“Asset Management Subsidiaries”
has the meaning set forth in the Recitals to this Agreement.

 

“Asset Purchase Letter Agreement”
has the meaning set forth in the Recitals to this Agreement.

 

“Bankruptcy and Equity Exception”
has the meaning set forth in Section 4.3(a).

 

“BCP” has the meaning
set forth in the preamble to this Agreement.

 

“BCP Disclosure Schedule”
means that certain disclosure schedule of BCP attached hereto.

 

“BCP Expenses” means
an amount equal to BCP’s documented out-of-pocket costs and expenses (including legal, investment banking, accounting, tax,
regulatory, operations, advisory, management, human resources (including pension), consulting, insurance, audit, search, asset
appraisal, title, surveys, financing, filing, compensation, travel and other similar fees, costs and expenses) and incurred or
accrued by or on behalf of BCP or its Affiliates or its or their Representatives and paid or payable to a third party in connection
with this Agreement and the Contemplated Transactions including BCP’s or its Affiliates’ or its or their Representatives’
due diligence investigation of KCAP and its Subsidiaries and the preparation, negotiation, execution and delivery of definitive
agreements in connection with the Contemplated Transactions, but in all cases excluding internally allocated costs and expenses
and subject to a maximum of (i) $350,000 in the aggregate if this Agreement is terminated pursuant to Section 9.1(d) and
(ii) $750,000 in the aggregate if this Agreement is terminated pursuant to Section 9.1(g) or Section 9.1(h).

 

    	 	3	 

     

    

 

“BCP Fundamental Reps”
has the meaning set forth in Section 8.3(a)(i).

 

“BCP Material Adverse Effect”
means any occurrence, change, event, effect or development that, individually or in the aggregate, (a) has or would reasonably
be expected to have, a material adverse effect on the financial condition, results of operations, assets, liabilities or business
of the credit business of BCP and its Subsidiaries, taken as a whole (the “BCP Credit Business”) (provided,
however, that, with respect to this subsection (a) only, the determination of whether a “BCP Material Adverse Effect”
exists or has occurred shall not include effects to the extent attributable to (i) changes, after the date hereof, in GAAP, (ii)
changes, after the date hereof, in laws, rules or regulations of general applicability to companies in the industry in which the
BCP Credit Business operates, (iii) actions or omissions taken with the prior express written consent of KCAP, (iv) changes, after
the date hereof, in global or national political conditions or general economic or market conditions generally affecting other
companies in the industry in which the BCP Credit Business operates, (v) conditions arising out of acts of terrorism, war, weather
conditions or other force majeure events or (vi) the public disclosure of this Agreement or the Contemplated Transactions, except,
with respect to clauses (i), (ii), (iv) and (v), to the extent that such effects disproportionately impact the financial condition,
results of operations, assets, liabilities or business of the BCP Credit Business, as compared to other credit businesses in the
industry in which the BCP Credit Business operates); or (b) materially impairs the ability of BCP to consummate, or prevents or
materially delays, any of the Contemplated Transactions or would reasonably be expected to do so.

 

“BCP Regulatory Agreement”
has the meaning set forth in Section 5.4.

 

“BCP Regulatory Approvals”
has the meaning set forth in Section 5.3(a).

 

“BCP Related Parties”
has the meaning set forth in Section 10.12(d)(i).

 

“BDC” has the meaning
set forth in Section 2(a)(48) of the Investment Company Act.

 

“Business Day” means
a day, other than Saturday, Sunday or other day on which commercial banks in New York, New York are authorized or required by applicable
Law to close.

 

“Cancellation Acknowledgment Agreement”
has the meaning set forth in Section 2.5(a).

 

“Claim” means any
claim, action, litigation, suit, inquiry, proceeding, enforcement proceeding, audit or investigation by or before any Governmental
Entity, or any similar legal, administrative, arbitral or other proceeding or mediation, whether civil, criminal or administrative.

 

“Closing” has the
meaning set forth in Section 3.1.

 

“Closing Date” has
the meaning set forth in Section 3.1.

 

“Closing Payment”
means an amount equal to $25,000,000.

 

    	 	4	 

     

    

 

“COBRA” has the meaning
set forth in Section 7.12(a).

 

“COBRA Plans” has
the meaning set forth in Section 7.12(a).

 

“Code” means the United
States Internal Revenue Code of 1986.

 

“Competing Proposal”
means any inquiry, proposal, offer, indication, interest, request, discussions, negotiations or other form of communication, whether
oral or written, formal or informal, public or non-public or otherwise (any “Proposal”), to effect, or
which could reasonably be expected to lead to or result in a Proposal to effect, any of the following:

 

(a)       a
purchase or other acquisition, directly or indirectly, in one transaction or a series of transactions, and whether through any
merger, reorganization, consolidation, tender offer, self-tender, exchange offer, stock acquisition, asset acquisition, binding
share exchange, business combination, recapitalization, liquidation, dissolution, joint venture or similar transaction, or otherwise,
of (i) 10% or more of any class of capital stock, other equity securities or voting power of KCAP or any resulting parent company
of KCAP, or (ii) assets or businesses of KCAP or its Subsidiaries that generate 10% or more of the net revenues or net income (for
the 12-month period ending on the last day of KCAP’s most recently completed fiscal quarter) or that represent 10% or more
of the total assets (based on fair market value) of KCAP and its Subsidiaries, taken as a whole, immediately prior to such purchase
or other acquisition;

 

(b)       any
other direct or indirect transaction or series of transactions that would result in KCAP converting from an internally managed
BDC to an externally managed BDC; or

 

(c)       any
voluntary or involuntary liquidation, bankruptcy, dissolution or winding up of KCAP,

in each case, other than the LibreMax Transaction (in the form contemplated by the LibreMax Merger Agreement as in effect on the
date hereof) and the Contemplated Transactions.

 

“Confidentiality Agreement”
has the meaning set forth in Section 7.2(c).

 

“Contemplated Transactions”
has the meaning set forth in the Recitals to this Agreement.

 

“Continuing Company Employees”
has the meaning set forth in Section 7.4(a).

 

“Contract” has the
meaning set forth in Section 4.3(c).

 

“Delaware Courts”
has the meaning set forth in Section 10.6.

 

“Designated Directors” has
the meaning set forth in Section 2.4(b)(ii).

 

“DGCL” has the meaning
set forth in Section 4.15.

 

“Employment Agreements”
has the meaning set forth in Section 4.11(a).

 

“ERISA” means the
Employee Retirement Income Security Act of 1974.

 

    	 	5	 

     

    

 

“ERISA Affiliate”
has the meaning set forth in Section 4.11(a).

 

“Exchange Act” means
the Securities Exchange Act of 1934.

 

“Fraud” means, solely
with respect to the representations and warranties contained in Article IV or V, as applicable, or in any certificate
delivered pursuant to this Agreement, intentional or willful misrepresentation of material facts included in such representations
or warranties which constitute common law fraud under applicable Law.

 

“GAAP” means United
States generally accepted accounting principles consistently applied during the periods involved.

 

“Governmental Entity” means
any federal, state, local or foreign government or subdivision thereof, or any other governmental, administrative, judicial, arbitral,
legislative, executive, regulatory or self-regulatory authority, instrumentality, agency, commission or body, or any SRO.

 

“Health Insurance Reimbursement”
has the meaning set forth in Section 7.12(a).

 

“Indebtedness” means,
with respect to any Person, (i) all obligations of such Person for borrowed money, or with respect to unearned advances of any
kind to such Person, (ii) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, (iii) all
capitalized lease obligations of such Person, (iv) all obligations of such Person under installment sale contracts, (v) all guarantees
and arrangements having the economic effect of a guarantee of such Person of any Indebtedness of any other Person, and (vi) all
obligations or undertakings of such Person to maintain or cause to be maintained the financial position of others or to purchase
the obligations of others;

 

“Intellectual Property” means
all intellectual property and proprietary rights, including patents, copyrights, trade secrets, algorithms, methods, processes,
inventions, know-how and trademarks, service marks, trade, corporate or d/b/a names, domain names and social or mobile media identifiers
and other source indicators and all goodwill symbolized thereby.

 

“Investment Adviser”
has the meaning set forth in the Recitals to this Agreement.

 

“Investment Advisers Act”
has the meaning set forth in the Recitals to this Agreement.

 

“Investment Advisory Agreement”
has the meaning set forth in the Recitals to this Agreement.

 

“Investment Assets”
means KCAP’s debt and equity investments in Portfolio Companies.

 

“Investment Company Act”
has the meaning set forth in the Recitals to this Agreement.

 

“IRS” means the United
States Internal Revenue Service.

 

“IT Assets” means
hardware, software, code, systems, networks, websites, databases, applications and other information technology assets and equipment
and the data stored therein or processed thereby.

 

    	 	6	 

     

    

 

“Katonah” has the
meaning set forth in the Recitals to this Agreement.

 

“KCAP” has the meaning
set forth in the preamble to this Agreement.

 

“KCAP Benefit Plans”
has the meaning set forth in Section 4.11(a).

 

“KCAP Board” has the
meaning set forth in the Recitals to this Agreement.

 

“KCAP Board Recommendation”
has the meaning set forth in the Recitals to this Agreement.

 

“KCAP Bylaws” means
the bylaws of KCAP, as of the date hereof.

 

“KCAP Certificate”
means the certificate of incorporation of KCAP, as of the date hereof.

 

“KCAP Common Stock”
has the meaning set forth in the Recitals to this Agreement.

 

“KCAP Debt Documents”
means, collectively, (i) the KCAP JV Financing Documents, (ii) the KCAP Revolving Credit Facility, and (iii) the KCAP Retail Notes
Documents.

 

“KCAP Disclosure Schedule”
means that certain disclosure schedule of KCAP attached hereto.

 

“KCAP Eligible Share”
has the meaning set forth in Section 2.2(a).

 

“KCAP Employees” has
the meaning set forth in Section 4.11(a).

 

“KCAP JV Financing Documents”
means the Indenture, dated as of October 24, 2017, by and between KCAP F3C Senior Funding, LLC and U.S. Bank National Association.

 

“KCAP Material Adverse Effect”
means any occurrence, change, event, effect or development that, individually or in the aggregate, (a) has or would reasonably
be expected to have, a material adverse effect on the financial condition, results of operations, assets, liabilities, or business
of KCAP and its Subsidiaries, taken as a whole (provided, however, that, with respect to this subsection (a) only,
the determination of whether a “KCAP Material Adverse Effect” exists or has occurred shall not include effects to the
extent attributable to (i) changes, after the date hereof, in GAAP, (ii) changes, after the date hereof, in laws, rules or regulations
of general applicability to companies in the industry in which KCAP and its Subsidiaries operate, (iii) actions or omissions taken
with the prior express written consent of BCP, (iv) changes, after the date hereof, in global or national political conditions
or general economic or market conditions generally affecting other companies in the industry in which KCAP and its Subsidiaries
operate, (v) conditions arising out of acts of terrorism, war, weather conditions or other force majeure events, (vi) the public
disclosure of this Agreement or the Contemplated Transactions, or (vii) the sale of the Asset Management Subsidiaries on the terms
set forth in the LibreMax Merger Agreement as in effect on the date hereof, except, with respect to clauses (i), (ii), (iv) and
(v), to the extent that such effects disproportionately impact the financial condition, results of operations, assets, liabilities
or business of KCAP and its Subsidiaries, taken as a whole, as compared to other companies in the industry in which KCAP and its
Subsidiaries operate); or (b) materially impairs the ability of KCAP to consummate, or prevents or materially delays, any of the
Contemplated Transactions or would reasonably be expected to do so.

 

    	 	7	 

     

    

 

“KCAP Material Contracts”
has the meaning set forth in Section 4.13(a).

 

“KCAP Regulatory Agreement”
has the meaning set forth in Section 4.5(e).

 

“KCAP Regulatory Approvals”
has the meaning set forth in Section 4.5(d).

 

“KCAP Related Parties”
has the meaning set forth in Section 10.12(d)(ii).

 

“KCAP Restricted Shares”
means the shares of KCAP Common Stock awarded under the KCAP Stock Plan that are outstanding and have not previously been forfeited.

 

“KCAP Retail Notes Documents”
means, collectively, (i) the Base Indenture dated as of October 10, 2012 between KCAP and U.S. Bank National Association relating
to the 7.375% Senior Notes Due 2019; and (ii) the Second Supplemental Indenture dated as of August 14, 2017, between KCAP and U.S.
Bank National Association relating to the 6.125% Senior Notes Due 2022.

 

“KCAP Revolving Credit Facility”
means the revolving credit facility evidenced by that certain Loan and Security Agreement, dated as of March 1, 2018, by and among
KCAP Funding I, LLC, KCAP, the financial institutions party thereto from time to time as lenders and State Bank and Trust Company,
as amended by that certain First Amendment to Loan Security Agreement, dated as of June 4, 2018, by and among the above-named parties.

 

“KCAP SEC Reports”
has the meaning set forth in Section 4.5(a).

 

“KCAP Severance Benefits”
has the meaning set forth in Section 7.4(a).

 

“KCAP Stock Option”
has the meaning set forth in Section 2.5(a).

 

“KCAP Stock Plan”
means the KCAP Financial, Inc. 2017 Equity Incentive Plan (as Amended and Restated Effective May 4, 2017).

 

“KCAP Stockholder Approval”
has the meaning set forth in Section 4.3(a).

 

“KCAP Stockholder Meeting”
has the meaning set forth in Section 4.3(a).

 

“KCAP Stockholders”
has the meaning set forth in the Recitals to this Agreement.

 

“KCAP Voting Debt”
means bonds, debentures, notes or other indebtedness of KCAP having the right to vote on any matters on which shareholders of KCAP
may vote.

 

“Law” means any federal,
state, local, municipal, or foreign law, constitution, treaty, statute, code, ordinance, rule, administrative interpretation, regulation,
directive (including those of any SRO), approval, judgment, order, writ, decree or injunction, in each case of any Governmental
Entity.

 

    	 	8	 

     

    

 

“LibreMax” has the
meaning set forth in the Recitals to this Agreement.

 

“LibreMax Merger Agreement”
has the meaning set forth in the Recitals to this Agreement.

 

“LibreMax Transaction”
has the meaning set forth in the Recitals to this Agreement.

 

“Liens” means, collectively,
pledges, claims, liens, charges, options, rights of first refusal, encumbrances and security interests of any kind or nature whatsoever
(including any limitation on voting, sale, transfer or other disposition or exercise of any attribute of ownership).

 

“Management Agreements”
has the meaning set forth in the Recitals to this Agreement.

 

“NASDAQ” means the
Nasdaq National Market System.

 

“No MAE Rep” has the
meaning set forth in Section 8.2(a)(i).

 

“Non-Continuing Company Employee”
has the meaning set forth in Section 7.4(a).

 

“Notice of Adverse Recommendation”
has the meaning set forth in Section 7.8(f).

 

“Notice of Superior Proposal”
has the meaning set forth in Section 7.8(f).

 

“Option Cancellation Payment”
has the meaning set forth in Section 2.5(a).

 

“Organizational Documents”
means, with respect to a Person other than a natural person, (i) the articles or certificate of incorporation and the bylaws of
a corporation; (ii) the certificate of formation and operating agreement of a limited liability company, (iii) the partnership
agreement and any statement of partnership of a general partnership; (iv) the limited partnership agreement and the certificate
of limited partnership of a limited partnership; (v) any charter or similar document adopted or filed in connection with the creation,
formation, or organization of any other Person; (vi) any stockholder or similar agreement among holders of securities of an issuer,
and (vii) any amendment to any of the foregoing.

 

“Outgoing KCAP Person” has
the meaning set forth in Section 2.4(b)(ii).

 

“Outside Date” has
the meaning set forth in Section 9.1(c).

 

“Party” and “Parties”
have the meaning set forth in the preamble to this Agreement.

 

“Payment Agent” has
the meaning set forth in Section 2.2(b).

 

“Payment Fund” has
the meaning set forth in Section 2.2(b).

 

“Permit” means any
license, permit, variance, exemption, franchise, consent, approval, authorization, qualification, or order of any Governmental
Entity.

 

    	 	9	 

     

    

 

“Permitted Liens”
means (i) Liens for current Taxes and assessments not yet past due or the amount or validity of which is being contested in good
faith by appropriate proceedings, (ii) Liens arising under the KCAP Loan Documents, (iii) mechanics’, workmen’s, repairmen’s,
warehousemen’s and carriers’ Liens arising in the ordinary course of business consistent with past practice and (iv)
any such matters of record, Liens and other imperfections of title that do not, individually or in the aggregate, materially impair
the continued ownership, use and operation of the assets to which they relate in the business of KCAP and its Subsidiaries as currently
conducted.

 

“Person” means an
individual, corporation, partnership, limited liability company, association, joint venture, estate, trust, sole proprietorship,
unincorporated organization, other entity, organization, group (as defined in Section 13(d) of the Exchange Act), or any other
business entity or any Governmental Entity, including a government or political subdivision or an agency or instrumentality thereof.

 

“Portfolio Company”
means any entity in which KCAP or any of its Subsidiaries has made, makes or proposes to make a debt or equity investment that
is or would be reflected in the Schedule of Investments included in KCAP’s quarterly or annual reports.

 

“Proxy Statement”
has the meaning set forth in Section 4.18.

 

“Representatives”
means, with respect to any Person, the employees, officers, directors, principals, bankers (including investment bankers), financial
advisors, attorneys, accountants, auditors or other advisors, agents or representatives of such Person.

 

“Related Party” has
the meaning set forth in Section 4.20.

 

“Sarbanes-Oxley Act”
means the Sarbanes-Oxley Act of 2002.

 

“SEC” has the meaning
set forth in the Recitals to this Agreement.

 

“Securities Act” means
the Securities Act of 1933.

 

“SRO” has the meaning
set forth in Section 4.4(a).

 

“Stock Purchase” has
the meaning set forth in Section 2.3(a).

 

“Stockholder Payment”
has the meaning set forth in Section 2.2(a).

 

“Subsidiary”, when
used with respect to a Person, means any corporation, partnership, limited liability company or other organization, whether incorporated
or unincorporated, that is required to be consolidated with such Person for financial reporting purposes under GAAP.

 

    	 	10	 

     

    

 

“Superior Proposal”
means any unsolicited, bona fide, written and binding Competing Proposal of a type contemplated by clause (a) of the definition
thereof (regardless of whether such Competing Proposal would also result in the occurrence of a transaction under clause (b) of
the definition thereof) that is fully financed or has fully committed financing, that provides for payment by the Person making
such Competing Proposal of substantially all-cash consideration to the KCAP Stockholders, and that the KCAP Board determines in
good faith (after consultation with outside counsel and its financial advisor), taking into account all legal, financial, regulatory
and other aspects of such Competing Proposal and the Person making such Competing Proposal, (i) is more favorable to the KCAP Stockholders
from a financial point of view than the Contemplated Transactions (including any adjustment to the terms and conditions proposed
by BCP in response to such Competing Proposal), and (ii) is reasonably likely to be completed on the terms proposed on a timely
basis; provided, that for purposes of this definition of “Superior Proposal”, references in the term “Competing
Proposal” to “10%” shall be deemed to be references to “70%”.

 

“Takeover Statutes”
has the meaning set forth in Section 4.17.

 

“Tax” or “Taxes”
means (i) all federal, state, local, and foreign income, excise, gross receipts, gross income, ad valorem, profits,
gains, property, capital, sales, transfer, use, payroll, employment, severance, withholding, duties, intangibles, franchise, backup
withholding, value added and other taxes, charges, levies or like assessments together with all penalties and additions to tax
and interest thereon and (ii) any liability for Taxes of another Person described in clause (i) above under Treasury Regulation
Section 1.1502-6 (or any similar provision of state, local or foreign law), as transferee or successor by contract or otherwise.

 

“Tax Return” means,
with respect to a Person, a report, return or other information (including any amendments) required to be supplied to a Governmental
Entity with respect to Taxes including, where permitted or required, combined or consolidated returns for any group of entities
that includes the Person or any of its Subsidiaries.

 

“Taxing Authority”
means any Governmental Entity having jurisdiction over the assessment, determination, collection, or imposition of any Taxes.

 

“Trimaran” has the
meaning set forth in the Recitals to this Agreement.

 

“Welfare Plan” has
the meaning set forth in Section 4.11(f).

 

Article
II

TRANSACTIONS

 

2.1          Management
Agreements. At the Closing, (i) KCAP shall, and BCP shall cause the Investment Adviser to, enter into the Investment Advisory
Agreement and (ii) KCAP shall, and BCP shall cause the Administrator to, enter into the Administration Agreement.

 

2.2          Stockholder
Payments.

 

(a)       In
consideration of the consummation of the Contemplated Transactions, each share of KCAP Common Stock issued and outstanding as of
immediately prior to the Closing (including each KCAP Restricted Share that becomes fully vested immediately prior to the Closing
in accordance with Section 2.5(b)), other than any such shares that are (i) owned or held, directly or indirectly, by any
Subsidiary of KCAP or by BCP or (ii) held in treasury by KCAP (each such share, after giving effect to the exclusions in clauses
(i) and (ii), a “KCAP Eligible Share”), shall be entitled to receive, subject to and in accordance with
Section 2.2(c), an amount in cash equal to (A) the Closing Payment divided by (B) the aggregate number of KCAP Eligible
Shares (the “Stockholder Payment”).

 

    	 	11	 

     

    

 

(b)       Prior
to the Closing, BCP shall appoint KCAP’s transfer agent to act as payment agent (the “Payment Agent”),
pursuant to a payment agent agreement to be entered into between BCP and the Payment Agent prior to the Closing, to make the Stockholder
Payments. At or prior to the Closing, BCP shall deposit, or cause to be deposited, with the Payment Agent the Closing Payment (such
cash deposit, plus any interest or other income earned thereon, the “Payment Fund”). The Payment Fund
shall not be used for any purpose other than to fund payments pursuant to this Section 2.2.

 

(c)       Promptly
following the Closing, BCP shall instruct the Payment Agent to promptly deliver to each holder of record of KCAP Eligible Shares
the Stockholder Payment for each such KCAP Eligible Share held of record by such holder (subject to deduction for any required
withholding Tax). The Payment Agent may condition such payment upon receipt of such information from such holder as is required
by applicable Law or the Payment Agent’s internal processes. No interest will be paid or accrued for the benefit of holders
of record of KCAP Eligible Shares on their respective Stockholder Payments.

 

(d)       Holders
of record of KCAP Eligible Shares, in their capacities as such, shall have no rights under this Agreement other than the right
to receive their respective Stockholder Payments pursuant to Section 2.2(c). No other holders of capital stock, other securities
or voting power of KCAP, in their capacities as such, shall have any rights to receive any Stockholder Payments or other payments
pursuant to this Section 2.2 or otherwise.

 

2.3          Reinvestment
of Incentive Fees. Following the Closing and until the second anniversary thereof, BCP shall cause the first $10,000,000 of
incentive fees actually received in cash by the Investment Adviser from KCAP under the Investment Advisory Agreement (“Incentive
Fees”) during such period to be used by the equity holders of the Investment Adviser (or Affiliates of such equity
holders) to purchase shares of KCAP Common Stock from KCAP (such purchases, “Stock Purchases”). The purchase
price per share for each Stock Purchase shall be the net asset value per share of KCAP Common Stock, as reported by KCAP in its
then-most recent Form 10-K or Form 10-Q (as applicable), and the Stock Purchases shall (i) occur as soon as reasonably practicable
following receipt of such incentive fees (i.e., during an open trading window and giving effect to any “blackout”
period on trading, and otherwise in compliance with applicable Law and KCAP policies) and (ii) otherwise be on terms and conditions
(including with respect to registration rights) customary for transactions of their nature. The Stock Purchases shall be funded
using solely cash actually received from KCAP as Incentive Fees, and in no event shall BCP or its Affiliates or any other equity
holder (or any Affiliates thereof) of the Investment Adviser be required to fund Stock Purchases using cash from any other source.

 

2.4          Amendment
of KCAP Organizational Documents; Directors and Officers.

 

(a)       Prior
to the Closing, the KCAP Board shall adopt resolutions, in accordance with Section 242 of the General Corporation Law of the State
of Delaware, to amend and restate the KCAP Certificate (as so amended and restated, the “Amended and Restated KCAP
Certificate”) so that, effective upon the Closing, KCAP’s name is changed to a name to be designated in writing
by BCP to KCAP during the Interim Period.

 

    	 	12	 

     

    

 

(b)       Prior
to the Closing, the KCAP Board shall take all action necessary so that, effective upon the Closing:

 

              (i)       the
size of the KCAP Board is increased to eight members;

              

              (ii)       each of the Persons set forth
on Section 2.4(c)(ii) of the KCAP Disclosure Schedule (each, an “Outgoing KCAP Person”) resigns
as a member of the KCAP Board or as an officer of KCAP, as applicable; and

 

(iii)       each
of the Persons set forth on Section 2.4(c)(iii) of the KCAP Disclosure Schedule (each, a “Designated Director”)
is appointed as a member of the KCAP Board, and is further designated as a member of the class of the KCAP Board set forth next
to his name in such section of the KCAP Disclosure Schedule.

 

(c)       If,
prior to the Closing, any Designated Director is unwilling or unable to serve as a member of the KCAP Board (whether due to death,
disability or any other reason), then BCP may designate a replacement for any such Person by written notice to KCAP, and any such
replacement Person shall be treated as a Designated Director for all purposes of this Agreement.

 

2.5          Treatment
of Outstanding Options and Restricted Shares.

 

(a)       Immediately
prior to the Closing, by virtue of the Closing and subject to the execution of an option cancellation agreement (the “Cancellation
Acknowledgment Agreement”), in a form reasonably agreed to by BCP, by the applicable holder thereof, each option
to purchase shares of KCAP Common Stock granted under the KCAP Stock Plan that is outstanding immediately prior to the Closing
(each, a “KCAP Stock Option”) shall be cancelled in accordance with Section 2.5(a) of the KCAP
Disclosure Schedule.

 

(b)       Immediately
prior to the Closing, each KCAP Restricted Share outstanding and not previously forfeited under the KCAP Stock Plan shall become
fully vested and all restrictions with respect to such KCAP Restricted Shares shall lapse. In the event that the relevant holder
of the KCAP Restricted Shares has so requested (in accordance with the KCAP Stock Plan and relevant restricted share award agreement),
KCAP shall, in accordance with the procedures adopted by KCAP, withhold a number of KCAP Restricted Shares having a fair market
value (determined on the date such shares are withheld) equal to the aggregate amount required to be deducted and withheld under
the Code and any applicable state or local Tax law with respect to the lapsing of restrictions on all KCAP Restricted Shares held
by the relevant holder, and KCAP shall pay over to the appropriate taxing authorities a corresponding amount of cash in satisfaction
of such Tax liabilities.

 

(c)       KCAP
shall take all actions necessary to terminate the KCAP Stock Plan on the later of (i) immediately prior to the Closing and (ii)
the date no KCAP Stock Option remains outstanding.

 

    	 	13	 

     

    

 

2.6          Payments;
Withholding Rights.

 

(a)       Except
as contemplated by Section 2.2(c) or Section 2.5(a), all payments hereunder shall be made by wire transfer of immediately
available funds in United States dollars to such account or accounts as may be designated to the payor by or on behalf of the payee
at least two Business Days prior to the applicable payment date.

 

(b)       BCP,
KCAP, the Payment Agent and any other Person making payments contemplated by this Agreement shall each be entitled to deduct and
withhold, or cause to be deducted and withheld, from the consideration otherwise payable such amounts as such Person determines
it is required to deduct and withhold under the Code or any provision of state, local or foreign Tax Law. To the extent that amounts
are so deducted and withheld, such amounts shall be treated for all purposes of this Agreement as having been paid to the Person
in respect of whom such deduction and withholding was made.

 

Article
III

CLOSING; CLOSING DELIVERIES

 

3.1          Closing.
On the terms and subject to the conditions set forth in this Agreement, the closing of the Contemplated Transactions (the “Closing”)
shall take place (i) at the offices of Eversheds Sutherland (US) LLP, The Grace Building, 40th Floor, 1114 Avenue of the Americas,
New York, NY 10036, on the third Business Day after the satisfaction or (subject to applicable Law) waiver of all of the conditions
set forth in Sections 8.1, 8.2 and 8.3 (other than those conditions that by their nature are to be satisfied
or waived at the Closing, but subject to the satisfaction or waiver of those conditions); or (ii) at such other place, date or
time as the Parties may mutually agree in writing. The date on which the Closing occurs is referred to herein as the “Closing
Date”.

 

3.2          Closing
Deliveries. At the Closing:

 

(a)         BCP
shall deliver or cause to be delivered:

 

(i)       to
KCAP, a counterpart to the Investment Advisory Agreement, duly executed by the Investment Adviser;

 

(ii)       to
KCAP, a counterpart to the Administration Agreement, duly executed by the Administrator;

 

(iii)       to
KCAP, the officer’s certificate required by Section 8.3(d); and

 

(iv)       to
the Payment Agent, the Closing Payment.

 

(b)         KCAP
shall:

 

(i)       deliver
or cause to be delivered to BCP a counterpart to the Investment Advisory Agreement, duly executed by the KCAP;

 

(ii)       deliver
or cause to be delivered to BCP a counterpart to the Administration Agreement, duly executed by KCAP;

 

    	 	14	 

     

    

 

(iii)       deliver
or cause to be delivered to BCP a copy of a resignation letter duly executed by each Outgoing KCAP Person;

 

(iv)       deliver
to BCP the officer’s certificate required by Section 8.2(e);

 

(v)       deliver
or cause to be delivered to BCP an executed and effective Option Cancellation Agreement with each Person set forth on Section
2.5(a) of the KCAP Disclosure Schedule; and

 

(vi)       file
or cause to be filed with the Office of the Secretary of State of the State of Delaware the Amended and Restated KCAP Certificate.

 

Article
IV

REPRESENTATIONS AND WARRANTIES OF KCAP

 

Except as disclosed in (i) the KCAP SEC Reports
(as defined in Section 4.5(c) below) filed at least two Business Days prior to the date of this Agreement (other than any
disclosures set forth in any risk factor section or in any section relating to forward looking statements and any other disclosures
included therein to the extent they are predictive, cautionary or forward-looking in nature); provided, that any matter
disclosed in the KCAP SEC Reports shall not be deemed disclosed for purposes of the representations and warranties set forth in
Section 4.1(a), Section 4.3(a), Section 4.3(b)(i) and Section 4.7 (collectively, the “KCAP
Fundamental Reps”); or (ii) the KCAP Disclosure Schedule, KCAP hereby represents and warrants to BCP as follows:

 

4.1          Corporate
Organization.

 

(a)       KCAP
is a corporation duly incorporated, validly existing and in good standing under the Laws of the State of Delaware. KCAP has the
requisite corporate power and corporate authority to own, lease and operate all of its properties and assets and to carry on its
business as it is now being conducted.

 

(b)       KCAP
is duly licensed or qualified to do business and is in good standing in each jurisdiction in which the nature of the business conducted
by it or the character or location of the properties and assets owned or leased by it makes such licensing or qualification necessary,
except where the failure to be so licensed or qualified or in good standing would not have a KCAP Material Adverse Effect.

 

(c)       True,
complete and correct copies of the KCAP Certificate and the KCAP Bylaws are set forth on Section 4.1(c) of the KCAP Disclosure
Schedule, and each as so set forth is in full force and effect as of the date hereof. As of the date hereof, KCAP is not, and at
Closing will not be, in violation of any provision of the KCAP Certificate or the KCAP Bylaws.

 

(d)       KCAP
has made available to BCP true and complete copies of the minutes (or, in the case of draft minutes, the most recent drafts thereof
as of the date of this Agreement) of all meetings of the KCAP Board and each committee thereof held since January 1, 2017 (in each
case redacted as necessary to preserve attorney-client privilege, to comply with applicable confidentiality restrictions or to
protect commercially sensitive information, including the identity of any potential acquirer or strategic partner and the terms
of any such proposal).

 

    	 	15	 

     

    

 

(e)       Except
as set forth in Section 4.1(e) of KCAP Disclosure Schedule, KCAP has no Subsidiaries. Each of the Subsidiaries of KCAP (i)
is duly formed and validly existing and in good standing under the laws of the jurisdiction of its formation, (ii) has the requisite
limited liability company or similar organizational power and authority to own, lease and operate its properties and assets and
to carry on its business as it is now being conducted and (iii) is duly licensed or qualified to do business and is in good standing
in each jurisdiction in which the nature of the business conducted by it or the character or location of the properties and assets
owned or leased by it makes such licensing or qualification necessary, except where the failure to be so licensed or qualified
or in good standing would not have a KCAP Material Adverse Effect. True, complete and correct copies of the Organizational Documents
of each Subsidiary of KCAP have previously been made available to BCP, and each as so delivered is in full force and effect. No
Subsidiary of KCAP is in violation of any provision of its Organizational Documents.

 

(f)       Except
for the capital stock of, or other equity or voting interests in, its Subsidiaries and the Portfolio Companies, KCAP does not own,
directly or indirectly, any equity, membership interest, partnership interest, joint venture interest, or other equity or voting
interest in, or any interest convertible into, exercisable or exchangeable for any of the foregoing, nor is it under any current
or prospective obligation to form or participate in, provide funds to, make any loan, capital contribution, guarantee, credit enhancement
or other investment in, or assume any liability or obligation of, any Person.

 

4.2          Capitalization.

 

(a)       The
authorized capital stock of KCAP consists of (i) 100,000,000 shares of KCAP Common Stock, of which, as of the date of this Agreement,
(A) 37,366,953 shares, including all KCAP Restricted Shares but excluding treasury shares and shares held by Subsidiaries of KCAP,
were issued and outstanding, (B) 194,859 shares were held by KCAP in treasury and (C) no shares were held by Subsidiaries of KCAP,
and (ii) 5,000,000 shares of preferred stock, par value $0.01 per share, of which, as of the date of this Agreement, none were
issued and outstanding. As of the date of this Agreement, 164,060 KCAP Restricted Shares were issued and outstanding and subject
to restrictions and no shares of KCAP Common Stock were reserved for issuance except for 944,595 shares of KCAP Common Stock reserved
for issuance under the KCAP Stock Plan or upon the exercise of KCAP Stock Options. All of the issued and outstanding shares of
KCAP Common Stock are, and all such shares reserved for issuance will be when issued, duly authorized, validly issued, fully paid,
nonassessable and free of preemptive rights, with no personal liability attaching to the ownership thereof. No KCAP Voting Debt
is issued or outstanding. Except as set forth in this Section 4.2(a), pursuant to Section 2.3 or as relates to the
cashless settlement of KCAP Restricted Shares to satisfy applicable tax withholding requirements related to the vesting thereof,
there are no outstanding (I) shares of capital stock or other voting securities or equity interests of KCAP; (II) securities of
KCAP or any of its Subsidiaries convertible into or exchangeable or exercisable for shares of capital stock of KCAP or other voting
securities or equity interests of KCAP or any of its Subsidiaries; (III) stock appreciation rights, “phantom” stock
rights, performance units, interests in or rights to the ownership or earnings of KCAP or any of its Subsidiaries or other equity
equivalent or equity-based awards or rights; (IV) subscriptions, options, warrants, calls, commitments, Contracts or other rights
to acquire from KCAP or any of its Subsidiaries, or obligations of KCAP or any of its Subsidiaries to issue, any shares of capital
stock of KCAP or any of its Subsidiaries, voting securities, equity interests or securities convertible into or exchangeable or
exercisable for capital stock or other voting securities or equity interests of KCAP or any of its Subsidiaries or rights or interests
described in the preceding clause (III); (V) obligations of KCAP or any of its Subsidiaries to repurchase, redeem or otherwise
acquire any such securities or to issue, grant, deliver or sell, or cause to be issued, granted, delivered or sold, any such securities;
or (VI) obligations pursuant to which KCAP or any of its Subsidiaries could be required to register shares of KCAP capital stock
or other securities under the Securities Act. There are no stockholder agreements, voting trusts or other agreements or understandings
to which KCAP or any of its Subsidiaries is a party with respect to the holding, voting, registration, redemption, repurchase or
disposition of, or that restrict the transfer of, any capital stock or other voting securities or equity interests of KCAP or any
of its Subsidiaries.

 

    	 	16	 

     

    

 

(b)       Except
as set forth in Section 4.2(b) of the KCAP Disclosure Schedule, all of the issued and outstanding shares of capital stock
or other voting securities or equity interests of each Subsidiary of KCAP are owned, directly or indirectly, by KCAP, free and
clear of any Liens, and all of such shares or voting securities or equity interests are duly authorized and validly issued and
are fully paid, nonassessable and free of preemptive rights. No Subsidiary of KCAP has or is bound by any outstanding subscriptions,
options, warrants, calls, commitments or agreements of any character calling for the purchase or issuance of any shares of capital
stock or any other equity security of such Subsidiary or any securities representing the right to purchase or otherwise receive
any shares of capital stock or any other equity security of such Subsidiary.

 

(c)       Section
4.2(c) of the KCAP Disclosure Schedule sets forth a true and complete list of all holders, as of the date hereof, of KCAP Restricted
Shares and other similar rights to purchase or receive shares of KCAP Common Stock or similar rights granted under the KCAP Equity
Plan or otherwise (collectively, “KCAP Stock Awards”), indicating as applicable, with respect to each
KCAP Stock Award, the type of award granted, the number of shares of KCAP Common Stock subject to such KCAP Stock Award, the name
of the plan under which such KCAP Stock Award was granted, the date of grant, exercise or purchase price, vesting schedule, payment
schedule (if different from the vesting schedule) and expiration thereof, and whether (and to what extent) the vesting of such
KCAP Stock Award will be accelerated or otherwise adjusted in any way or any other terms that will be triggered or otherwise adjusted
in any way by the consummation of the Contemplated Transactions or by the termination of employment or engagement or change in
position of any holder thereof following the consummation of, or in connection, with the Contemplated Transactions. KCAP has made
available to BCP true and complete copies of all KCAP equity plans and the forms of all restricted shares agreements evidencing
the KCAP Restricted Shares. As of the date hereof, each KCAP Stock Option has an exercise price at or above the fair market value
of a share of KCAP Common Stock.

 

(d)       Except
for the amounts outstanding under the KCAP Debt Documents, neither KCAP nor its Subsidiaries has any indebtedness for borrowed
money.

 

    	 	17	 

     

    

 

4.3          Authority;
KCAP Board Approval; No Violation.

 

(a)       KCAP
has full corporate power and authority to execute, deliver and perform its obligations under this Agreement and the Management
Agreements and to consummate the Contemplated Transactions. The KCAP Board, at a meeting duly called and held at which all members
(including the independent members) thereof were present, duly and unanimously adopted resolutions (i) determining that this Agreement,
the Management Agreements and the Contemplated Transactions are advisable, fair to and in the best interests of KCAP and the KCAP
Stockholders; (ii) duly and validly authorizing and approving the execution, delivery and performance of this Agreement and the
Management Agreements by KCAP and the consummation by KCAP of the Contemplated Transactions; (iii) directing that the Investment
Advisory Agreement be submitted to the KCAP Stockholders for approval at the KCAP Stockholder Meeting; (iv) issuing the KCAP Board
Recommendation; and (v) setting a preliminary record date in connection with the KCAP Stockholder Meeting. Such resolutions have
not been rescinded, modified or withdrawn in any manner. Except for the approval of the Investment Advisory Agreement by the affirmative
vote of the holders of the lesser of (A) 67% or more of the shares present (either in person or by proxy) at the KCAP Stockholder
Meeting and entitled to vote thereat and (B) a majority of the outstanding shares of KCAP Common Stock (such approval, the “KCAP
Stockholder Approval”), no other corporate proceedings on the part of KCAP (whether in the nature of a KCAP Board
approval, a KCAP security holder vote or otherwise) are necessary to approve this Agreement, the Management Agreements or the Contemplated
Transactions. This Agreement has been, and at the Closing each of the Management Agreements will be, duly and validly executed
and delivered by KCAP and (assuming due and valid authorization, execution and delivery by BCP, the Investment Adviser or the Administrator,
as applicable) this Agreement constitutes, and at the Closing each of the Management Agreements will constitute, the valid and
binding obligation of KCAP, enforceable against KCAP in accordance with its terms, except as may be limited by bankruptcy, insolvency,
fraudulent transfer, moratorium, reorganization or similar Laws of general applicability relating to or affecting the rights of
creditors generally and subject to general principles of equity (the “Bankruptcy and Equity Exception”).

 

(b)       Neither
the execution and delivery of this Agreement or the Management Agreement by KCAP, nor the consummation by KCAP of the Contemplated
Transactions, nor the performance by KCAP of this Agreement or the Management Agreements, will (i) violate any provision of any
Organizational Documents of KCAP or any of its Subsidiaries, or (ii) assuming that the consents, approvals and filings referred
to in Section 4.4 are duly obtained or made, (A) violate any Law applicable to KCAP or any of its Subsidiaries or by which
KCAP or any of its Subsidiaries is bound, or (B) except as would not have a KCAP Material Adverse Effect, violate, conflict with,
result in a breach of any provision of or the loss of any benefit under, constitute a default (or an event which, with notice or
lapse of time, or both, would constitute a default) under, result in the termination of or a right of termination or cancellation
under, accelerate the performance required by, or result in the creation of any Lien upon any of the respective properties or assets
or rights of KCAP or any of its Subsidiaries under, or give rise to any increased, additional, accelerated or guaranteed rights
or entitlements under, or require any consent, waiver or approval of any Person pursuant to, any provision of (I) the Organizational
Documents of KCAP or any of its Subsidiaries, (II) any bond, debenture, note, mortgage, indenture, deed of trust, guarantee, license,
lease, franchise, purchase or sale order or other contract, commitment, agreement, instrument, obligation, arrangement, understanding,
undertaking, permit or concession, whether oral or written (each, a “Contract”) to which KCAP or any
of its Subsidiaries is a party or by which KCAP or any of its Subsidiaries or any of their respective properties or assets is bound.

 

    	 	18	 

     

    

 

4.4          Consents
and Approvals.

 

(a)       Except
for (i) the filing with the SEC of the Proxy Statement, (ii) any notices, consents, authorizations, approvals, filings or exemptions
in connection with compliance with the rules and regulations of NASDAQ, or any other applicable self-regulatory organization (“SRO”),
(iii) such filings and approvals as are required to be made or obtained under the securities or “Blue Sky” laws of
various states in connection with the issuance of shares of KCAP Common Stock pursuant to this Agreement, (iv) compliance with
the Investment Company Act, and the rules and regulations promulgated thereunder, or (v) as set forth on Section 4.4(a)
of KCAP Disclosure Schedule (the foregoing (i) through (v) referred to collectively as the “KCAP Regulatory Approvals”),
no consents, authorizations, approvals, or exemptions from, or notices to, or filings with, any Governmental Entity are necessary
in connection with the execution, delivery and performance by KCAP of this Agreement or the Management Agreements or the consummation
by KCAP of Contemplated Transactions.

 

(b)       Except
for (i) receipt of the KCAP Stockholder Approval, (ii) consents under Contracts set forth on Section 4.4(b) of the KCAP
Disclosure Schedule, and (iii) matters covered in the immediately preceding Section 4.4(a), no consents or approvals of
any Person are necessary in connection with the execution, delivery and performance by KCAP of this Agreement or the Management
Agreements or the consummation by KCAP of the Contemplated Transactions.

 

4.5          Reports;
Regulatory Matters.

 

(a)       KCAP
and each of its Subsidiaries have timely filed or furnished true and complete copies of all reports, registration statements and
certifications, together with any amendments or supplements required to be made with respect thereto, that they were required to
file or furnish since December 31, 2017 with (i) the SEC, (ii) NASDAQ, and (iii) any other applicable SRO or other Governmental
Entity, and all other reports and statements required by applicable Law to be filed by them since December 31, 2017, and have paid
all fees and assessments due and payable in connection therewith. Except for routine examinations of KCAP and its Subsidiaries
conducted by an SRO or other Governmental Entity in the ordinary course of the business, no SRO or other Governmental Entity has,
since December 31, 2017, initiated any actual or, to the knowledge of KCAP, threatened Claim regarding the business, disclosures
or operations of KCAP or any of its Subsidiaries. Except as set forth in Section 4.5(a) of KCAP Disclosure Schedule, since
December 31, 2017, no SRO or Governmental Entity has resolved any actual or, to the knowledge of KCAP, threatened Claim regarding
the business, disclosures or operations of KCAP or any of its Subsidiaries. There is no unresolved, or, to KCAP’s knowledge,
threatened comment or stop order by any SRO or Governmental Entity with respect to any report or statement relating to any examinations
or inspections of KCAP or any of its Subsidiaries.

 

(b)       Neither
KCAP nor any of its Subsidiaries is subject to any cease-and-desist or other order or enforcement action issued by, or is a party
to any written agreement, consent agreement or memorandum of understanding with, or is a party to any commitment letter or similar
undertaking to, or is subject to any order or directive by, any SRO or other Governmental Entity that restricts in any material
respect the conduct of its business, or that in any material respect relates to its credit, risk management or compliance policies,
its internal controls, its management or its business (each item in this sentence, a “KCAP Regulatory Agreement”),
nor has KCAP or any of its Subsidiaries been advised since December 31, 2017 by any SRO or other Governmental Entity that it is
considering issuing, initiating, ordering, or requesting any such KCAP Regulatory Agreement.

 

    	 	19	 

     

    

 

(c)       KCAP
has timely filed or furnished on the SEC’s EDGAR system true and complete copies of each (i) registration statement, prospectus,
report, schedule, proxy statement and other document or report required to be filed with or furnished to the SEC by KCAP or any
of its Subsidiaries pursuant to applicable Law since December 31, 2017 (collectively, the “KCAP SEC Reports”)
and (ii) communication mailed by KCAP to KCAP Stockholders since December 31, 2017. No such KCAP SEC Report or communication, at
the time filed, furnished or communicated (and, in the case of registration statements and proxy statements, on the dates of effectiveness
and the dates of the relevant meetings, respectively), contained any untrue statement of a material fact or omitted to state any
material fact required to be stated therein or necessary in order to make the statements made therein, in light of the circumstances
under which they were made, not misleading. As of their respective dates, all KCAP SEC Reports complied as to form in all material
respects with applicable Law. No executive officer of KCAP has failed in any respect to make the certifications required of him
or her under Section 302 or 906 of the Sarbanes-Oxley Act. As of the date of this Agreement, there are no outstanding or unresolved
comments from the SEC with respect to any KCAP SEC Report and, as of the date of this Agreement, no KCAP SEC Report is subject
to any ongoing review by the SEC.

 

4.6          Financial
Statements.

 

(a)       The
consolidated financial statements of KCAP and its Subsidiaries included in the KCAP SEC Reports (including the related notes and
schedules included therein) (i) have been prepared from, and are in accordance with, the books and records of KCAP and its Subsidiaries,
(ii) fairly present in all material respects the consolidated results of operations, cash flows, changes in stockholders’
equity and consolidated financial position of KCAP and its Subsidiaries for the respective fiscal periods or as of the respective
dates therein set forth (subject, in the case of unaudited statements, to normal and recurring year-end audit adjustments immaterial
in nature and amount), (iii) complied, as to form, as of their respective dates of filing with the SEC, in all material respects
with applicable accounting requirements and with the published rules and regulations of the SEC with respect thereto, and (iv)
have been prepared in accordance with GAAP consistently applied during the periods involved, except, in each case, as indicated
in such statements or in the notes thereto. Since December 31, 2017, KCAP has not made any change in the accounting practices or
policies applied in the preparation of its financial statements, except as required by GAAP, SEC rule or policy or applicable Law.
The books and records of KCAP and its Subsidiaries have been, and are being, maintained in all material respects in accordance
with GAAP (to the extent applicable) and any other applicable legal and accounting requirements and reflect only bona fide transactions.

 

(b)       Neither
KCAP nor any of its Subsidiaries has any liability or obligation of any nature whatsoever, required by GAAP to be reserved for
in a consolidated balance sheet prepared in accordance with GAAP, whether absolute, accrued, contingent or otherwise, whether known
or unknown, or whether due or to become due, except for those liabilities and obligations (i) that are reflected or reserved against
on the consolidated balance sheet of KCAP and its Subsidiaries included in KCAP’s Quarterly Report on Form 10-Q for the period
ended September 30, 2018 (including any notes thereto), (ii) for performance under Contracts (but not the breach thereof) or (iii)
incurred in the ordinary course of business consistent with past practice since the date of such balance sheet that are not material
to KCAP and its Subsidiaries, taken as a whole.

 

    	 	20	 

     

    

 

(c)       KCAP
has implemented and maintains disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act) to ensure that
information relating to KCAP, including its consolidated Subsidiaries, required to be disclosed by KCAP in the reports that it
files under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and
regulations of the SEC, and that all such information is accumulated and communicated to the “principal executive officer”
and the “chief financial officer” (each as defined in the Sarbanes-Oxley Act) of KCAP by others within those entities
in connection with the reports KCAP files under the Exchange Act to allow timely decisions regarding required disclosure and to
make the certifications required pursuant to Sections 302 and 906 of the Sarbanes Oxley Act.

 

(d)       KCAP
has established and maintains a system of internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange
Act) which is effective in providing reasonable assurance regarding the reliability of KCAP’s financial reporting and the
preparation of KCAP’s financial statements for external purposes in accordance with GAAP. KCAP has disclosed, based on its
most recent evaluation of its internal control over financial reporting prior to the date hereof, to its auditors and the audit
committee of the KCAP Board (i) any significant deficiencies or material weaknesses in the design or operation of KCAP’s
internal control over financial reporting which are reasonably likely to adversely affect KCAP’s ability to record, process,
summarize and report financial information and (ii) any fraud, whether or not material, that involves management or other
employees who have a significant role in KCAP’s internal control over financial reporting.

 

(e)       Since
December 31, 2017, the principal executive officer and the principal financial officer of KCAP have complied in all material respects
with (i) the applicable provisions of the Sarbanes-Oxley Act and under the Exchange Act and (ii) the applicable listing and corporate
governance rules and regulations of NASDAQ. The principal executive officer and the principal financial officer of KCAP have made
all certifications required by Sections 302 and 906 of the Sarbanes-Oxley Act with respect to each KCAP SEC Document filed by KCAP.

 

(f)       Since
December 31, 2017, (i) neither KCAP nor any of its Subsidiaries nor, to the knowledge of KCAP, any Representative of KCAP
or any of its Subsidiaries, has received or otherwise had or obtained knowledge of any material complaint, allegation, assertion
or claim, whether written or oral, regarding the accounting or auditing practices, procedures, methodologies or methods of KCAP
or any of its Subsidiaries or their respective internal accounting controls, including any material complaint, allegation, assertion
or claim that KCAP or any of its Subsidiaries has engaged in questionable accounting or auditing practices and (ii) no attorney
representing KCAP or any of its Subsidiaries, whether or not employed by KCAP or any of its Subsidiaries, has reported evidence
of a material violation of securities Laws, breach of fiduciary duty or similar violation by KCAP or any of its Subsidiaries or
any of their respective officers, directors, employees or agents to the KCAP Board or any committee thereof or to any director
or officer of KCAP or any of its Subsidiaries.

 

    	 	21	 

     

    

 

(g)       Neither
KCAP nor any of its Subsidiaries is a party to, or has any commitment to become a party to, any joint venture, off balance sheet
partnership or any similar Contract (including any Contract or arrangement relating to any transaction or relationship between
or among KCAP and any of its Subsidiaries, on the one hand, and any unconsolidated Affiliate, including any structured finance,
special purpose or limited purpose entity or Person, on the other hand, or any “off balance sheet arrangements” (as
defined in Item 303(a) of Regulation S K under the Exchange Act)), where the result, purpose or intended effect
of such Contract is to avoid disclosure of any material transaction involving, or material liabilities of, KCAP or any of its Subsidiaries
in the KCAP SEC Reports.

 

(h)       No
Subsidiary of KCAP is required to file any form, report, schedule, statement or other document with the SEC.

 

4.7          Broker’s
Fees. Except for the fees of Keefe, Bruyette & Woods pursuant to a Contract previously made available to BCP (which fees
will be paid by KCAP at or immediately following the Closing), neither KCAP nor any of its Subsidiaries has utilized any broker,
finder or financial advisor or incurred any liability for any broker’s fees, commissions or finder’s fees in connection
with the Contemplated Transactions.

 

4.8          Absence
of Certain Changes or Events. Except as set forth in Section 4.8 of the KCAP Disclosure Schedule, since December 31,
2017 and through the date hereof, (a) the respective businesses of KCAP and its Subsidiaries have been conducted only in the ordinary
course of business consistent with past practice, (b) neither KCAP nor any of its Subsidiaries has taken any action that, if taken
after the date of this Agreement, would constitute a breach of any of the covenants set forth in Section 6.1 and (c) there
has not been any KCAP Material Adverse Effect.

 

4.9          Legal
Proceedings; Compliance with Law.

 

(a)       Except
as set forth in Section 4.9 of KCAP Disclosure Schedule and except as would not, individually or in the aggregate, be material
to KCAP and its Subsidiaries, taken as a whole, neither KCAP nor any of its Subsidiaries is a party to any, and there are no pending
or, to KCAP’s knowledge, threatened, Claims of any nature by or against KCAP or any of its Subsidiaries or to which any of
their assets are subject or by or against any officers or directors of KCAP or its Subsidiaries in their capacities as such.

 

(b)       Except
as would not, individually or in the aggregate, be material to KCAP and its Subsidiaries, taken as a whole, there is no Law (other
than those of general application that apply to similarly situated companies or their Subsidiaries) imposed upon KCAP or any of
its Subsidiaries or the assets of KCAP or any of its Subsidiaries.

 

(c)       KCAP
and each of its Subsidiaries hold all Permits necessary for the lawful conduct of their respective businesses and operations, and
have complied with and are not in default in any respect under any, any such Permits, except for such failures to hold, instances
of non-compliance or defaults that would not have a KCAP Material Adverse Effect.

 

(d)       KCAP
and each of its Subsidiaries have complied in all materials respects with all, and are not in default in any material respect under
any, applicable Laws or company policies with respect to privacy, personal information and data and system security (“Privacy
Policies”).

 

    	 	22	 

     

    

 

4.10       Taxes
and Tax Returns.

 

(a)       Each
of KCAP and its Subsidiaries (i) has duly and timely filed (including all applicable extensions) all federal, state, local and
foreign income and other material Tax Returns required to be filed by it on or prior to the date of this Agreement and all such
Tax Returns are accurate and complete, (ii) has paid all Taxes whether or not shown thereon as due and (iii) has duly paid or made
provision for the payment of all Taxes that have been incurred or are due or claimed to be due from it by the IRS or any other
federal, state, foreign or local taxing authorities other than Taxes that are not yet delinquent or are being contested in good
faith, have not been finally determined and have been adequately reserved against under GAAP. There are no material disputes pending,
or written claims asserted, for Taxes or assessments upon KCAP or any Subsidiary for which KCAP does not have reserves that are
adequate under GAAP. Neither KCAP nor any Subsidiary is a party to or is bound by any Tax sharing, allocation or indemnification
agreement or arrangement or similar contract or arrangement (other than such an agreement or arrangement exclusively between or
among KCAP and its Subsidiaries as described in Section 4.10(a) of the KCAP Disclosure Schedule). No claim has ever been
made by a Taxing Authority in a jurisdiction where KCAP or any Subsidiary does not file Tax Returns that such entity is or may
be subject to taxation by, or required to file Tax Returns in, that jurisdiction, and, to KCAP’s knowledge, there is no basis
for any such claim to be made.

 

(b)       KCAP
previously made a valid election under Subchapter M of Chapter 1 of the Code to be taxed as a regulated investment company beginning
with its taxable year ended 2006. KCAP has qualified as a regulated investment company at all times subsequent to such election,
and expects to qualify as such for its current taxable year. With respect to each taxable year, KCAP has satisfied the distribution
requirements imposed on a regulated investment company under Section 852 of the Code and will satisfy the distribution requirements
for its current taxable year.

 

(c)       KCAP
and its Subsidiaries have complied in all material respects with all Laws relating to the payment and withholding of Taxes and
have, within the time and in the manner prescribed by such Laws, withheld from and paid over all amounts required to be so withheld
and paid over under such Laws.

 

(d)       There
are no Liens for Taxes upon the assets of KCAP or any of the Subsidiaries, except for Liens for Taxes not yet due and payable and
Liens for Taxes that are both being contested in good faith and adequately reserved for in accordance with GAAP.

 

(e)       Neither
KCAP nor any Subsidiary has granted any waiver, extension, or comparable consent regarding the application of the statute of limitations
with respect to any Taxes or Tax Return that is outstanding, nor any request for such waiver or consent has been made.

 

(f)       No
Subsidiary of KCAP is a “specified foreign corporation” as defined in Section 965(e) of the Code.

 

    	 	23	 

     

    

 

(g)       KCAP
does not have any liability for the Taxes of any other Person under Treas. Reg. § 1.1502-6 (or any similar provision of state,
local or foreign Law), as a transferee or successor, by contract or otherwise.

 

4.11       Employee
Matters.

 

(a)       Section
4.11(a) of KCAP Disclosure Schedule sets forth a true, complete and correct list of each “employee benefit plan”
as defined in Section 3(3) of ERISA, and each incentive, deferred compensation, paid-time-off, equity-based, phantom equity, severance,
separation, termination, retention, change-of-control, pension, profit-sharing, retirement, leave of absence, layoff, vacation,
day or dependent care, legal services, cafeteria, life, health, medical, dental, vision, welfare, accident, disability, workmen’s
compensation or other insurance, collective bargaining, material fringe benefit, or other similar plan, program, agreement, practice,
policy, arrangement or commitment for the benefit of any employee, former employee, director or former director, independent contractor
or former independent contractor of KCAP or any of its Subsidiaries (collectively, “KCAP Employees”),
entered into, maintained or contributed to, or required to be maintained or contributed to by KCAP, any of its Subsidiaries or
any Person that, together with KCAP or any of its Subsidiaries, is treated as a single employer or members of a controlled group
under Section 4001 of ERISA or Section 414(b), (c), (m) or (o) of the Code, (each such Person, an “ERISA Affiliate”)
or pursuant to which KCAP or any of its Subsidiaries or ERISA Affiliates could have any actual or contingent liability, whether
written or oral, and whether or not subject to ERISA (such plans, programs, agreements, practices, policies, arrangements and commitments,
herein referred to as the “KCAP Benefit Plans”). In addition, Section 4.11(a) of KCAP Disclosure
Schedule sets forth a true, complete and correct list of each employment agreement or independent contractor agreement for substantial
personal services, other than oral agreements that can be terminated on prior notice of 30 days’ or less, without continuing
obligation or penalty (such agreements herein referred to as the “Employment Agreements”).

 

(b)       With
respect to each KCAP Benefit Plan, KCAP has made available to BCP true, complete and correct copies of the following (as applicable):
(i) the written document evidencing such KCAP Benefit Plan (including any related trust agreements or other funding arrangements)
and any amendment thereto or, with respect to any such plan that is not in writing, a written description of the material terms
thereof, (ii) the current summary plan description, and all summaries of material modifications thereto, (iii) the two (2) most
recent Form 5500s, annual reports, financial statements and/or actuarial reports, (iv) the most recent IRS determination, opinion
or advisory letter, and (v) all material written communications provided to employees in the last twelve (12) months relating to
such KCAP Benefit Plans and all other material written communications with any governmental agency in the last thirty-six (36)
months relating to such KCAP Benefit Plans, including any materials relating to any government investigation or audit or any submissions
under any voluntary compliance procedure. KCAP has made available to BCP true, complete and correct copies of any written Employment
Agreements including all amendments thereto and, with respect to any Employment Agreement that is not in writing, a written description
of the material terms thereof.

 

    	 	24	 

     

    

 

(c)       (i)
Each KCAP Benefit Plan (including any related trust) has been maintained, operated and administered (including with respect to
reporting and disclosure) in accordance with its terms in all material respects, (ii) all KCAP Benefit Plans and Employment Agreements
are in compliance with the applicable provisions of ERISA, the Code and all other applicable Laws, including Section 409A of the
Code, in each case in all material respects, (iii) to KCAP’s knowledge no non-exempt “prohibited transaction”
(as defined in Section 4975 of the Code or Section 406 of ERISA) has occurred with respect to any KCAP Benefit Plan which would
result in a material penalty, (iv) all contributions to, and payments from, KCAP Benefit Plans have been made in accordance with
the terms of KCAP Benefit Plans, ERISA, the Code and all other applicable Laws in all material respects, (v) there are no current
or, to KCAP’s knowledge, threatened investigations by any Governmental Entity, termination proceedings, or other claims by
any Person (except routine claims for benefits) with respect to KCAP Benefit Plans or, to KCAP’s knowledge, any fiduciary
thereof. No KCAP Benefit Plan is, and neither KCAP nor any ERISA Affiliate has ever sponsored or maintained or contributed to any
benefit plan, subject to Title IV or Section 302 of ERISA or a “multiemployer plan” as defined in Section 4001(a)(3)
of ERISA.

 

(d)       Except
as set forth in Section 4.11(d) of KCAP Disclosure Schedule, (i) KCAP and each of its Subsidiaries and, to KCAP’s
knowledge, each other party to each Employment Agreement has duly performed all obligations required to be performed by it to date
under such agreement, and (ii) no event or condition exists that constitutes or, after notice or lapse of time or both, will constitute,
a breach, violation or default on the part of KCAP or any of its Subsidiaries or, to KCAP’s knowledge, any other party thereto
under any such Employment Agreement.

 

(e)       Each
KCAP Benefit Plan intended to be qualified under Section 401(a) of the Code (including each related trust intended to be exempt
from taxation under Section 501(a) of the Code) has received an IRS determination letter or is comprised of a master and prototype
or volume submitter plan that has received a favorable opinion or advisory letter from the IRS. Since the date of each such determination,
opinion or advisory letter, no event has occurred and no condition exists that would result in the revocation of any such determination,
opinion or advisory letter or that would adversely affect the qualified status of any such KCAP Benefit Plan (or the tax-exempt
status of any such trust).

 

(f)       Except
as set forth on Section 4.11(f) of KCAP Disclosure Schedule, no KCAP Benefit Plan that is a “welfare benefit plan”
as defined in Section 3(1) of ERISA (each, a “Welfare Plan”) or Employment Agreement provides for continuing
benefits or coverage for any participant or beneficiary or covered dependent of a participant after such participant’s termination
of employment, except to the extent required by law. Each Welfare Plan which provides medical, dental, health or long-term disability
benefits (except a flexible spending account) is fully insured and claims with respect to any participant or covered dependent
under such Welfare Plan could not result in any uninsured liability to KCAP, any Subsidiary or BCP (except a flexible spending
account).

 

(g)       Except
as set forth in Section 4.11(g)(i) of KCAP Disclosure Schedule, neither the execution of this Agreement nor the Contemplated
Transactions (either alone or upon the occurrence of any additional or subsequent event) (i) will accelerate the time of payment
or vesting or funding or increase benefits or the amount payable or funding of any benefits to any KCAP Employees or under any
KCAP Benefit Plan, (ii) will result in any payment becoming due to any KCAP Employees, (iii) will cause or result in any limitation
on the right of KCAP or any of its Subsidiaries to amend, merge or terminate any KCAP Benefit Plan or (iv) will or may result in
any “parachute payment” (as defined in Section 280G of the Code). Except as set forth on Section 4.11(g)(ii)
of the KCAP Disclosure Schedule, no KCAP Benefit Plan or Employment Agreement provides for the payment of severance, termination,
change-in-control or any similar type of payments or benefits.

 

    	 	25	 

     

    

 

4.12       KCAP
Material Contracts.

 

(a)       Except
as set forth in Section 4.12 of the KCAP Disclosure Schedule, and excluding Contracts relating to Investment Securities,
neither KCAP nor any of its Subsidiaries is a party to or bound by any Contract that is:

 

   (i)       a
Contract that would be required to be filed by KCAP as a “material contract” (as such term is defined in Item 601(b)(10)
of Regulation S-K under the Securities Act) or disclosed by KCAP on a Current Report on Form 8-K;

 

   (ii)       any
Contract that limits the ability of KCAP or any of its Subsidiaries (or, following the consummation of the Contemplated Transactions,
would limit the ability of BCP or any of its Affiliates) to compete in any line of business or with any Person or in any geographic
area, or that restricts the right (or, following the consummation of the Contemplated Transactions, would restrict the right of
BCP or any of its Affiliates), to acquire or dispose of its interests in any Portfolio Company, to sell to or purchase from any
Person or to hire any Person, or that grants the other party or any third Person “most favored nation” status or any
type of special discount rights;

 

   (iii)       any
Contract with respect to the formation, creation, operation, management or control of a joint venture, partnership or similar agreement
or arrangement;

 

   (iv)       any
Contract relating to Indebtedness and having an outstanding principal amount in excess of $5,000,000;

 

   (v)       any
Contract that by its terms calls for aggregate payment or receipt by KCAP and its Subsidiaries on or after the date under such
Contract of more than $250,000 on or after the date of this Agreement, in each case, excluding payments received related to Portfolio
Company investments;

 

   (vi)       any
Contract involving the acquisition or disposition, directly or indirectly (by merger, sale of stock, sale of assets or otherwise)
prior to the date hereof, of assets or other equity interests for aggregate consideration (in one or a series of transactions)
under such Contract of $5,000,000 or more and other than acquisitions or disposition of inventory in the ordinary course of business
consistent with past practice);

 

   (vii)       any
Contract pursuant to which KCAP or any of its Subsidiaries has continuing indemnification, guarantee, “earn-out”, or
other contingent payment obligations, in each case that could result in payments in excess of $1,000,000;

 

    	 	26	 

     

    

 

   (viii)       any
material Contract relating to Intellectual Property or IT Assets, other than non-exclusive license agreements for software that
is generally commercially available and have annual fees of less than $25,000;

 

   (ix)       any
Contract that provides for any confidentiality, standstill or similar obligations;

 

   (x)       any
Contract that obligates KCAP or any of its Subsidiaries to make any capital commitment, loan or expenditure in an amount in excess
of $1,000,000;

 

   (xi)       any
Contract entered into between KCAP or any of its Subsidiaries, on the one hand, and any Affiliate thereof other than any Subsidiary
of KCAP, on the other hand;

 

   (xii)       any
Contract with any Governmental Entity; or

 

   (xiii)       any
Contract that requires a consent to or otherwise contains a provision relating to a “change of control,” or that would
or would reasonably be expected to prevent, materially delay or impair the consummation of the Contemplated Transactions.

 

Each Contract of the type described in clauses (i) through
(xiii), is referred to herein as a “KCAP Material Contract”.

 

(b)       Except
as set forth in Section 4.12(b) of the KCAP Disclosure Schedule, (i) each KCAP Material Contract is valid and binding
on KCAP or its applicable Subsidiary and, to the knowledge of KCAP, the other parties thereto, enforceable against it (and, to
KCAP’s knowledge, the other parties thereto) in accordance with its terms (subject, in each case, to the Bankruptcy and Equity
Exception), and is in full force and effect, (ii) KCAP and each of its Subsidiaries and, to KCAP’s knowledge, each other
party thereto, has duly performed all obligations required to be performed by it to date under each KCAP Material Contract and
(iii) no event or condition exists that constitutes or, after notice or lapse of time or both, would constitute, a breach, violation
or default on the part of KCAP or any of its Subsidiaries or, to KCAP’s knowledge, any other party thereto under any such
KCAP Material Contract. KCAP has made available to BCP true and complete copies of all KCAP Material Contracts.

 

4.13       Property;
Investment Securities.

 

(a)       Except
as set forth on Section 4.13(a) of the KCAP Disclosure Schedule, KCAP or one of its Subsidiaries (a) has good and marketable
title to all the properties and assets reflected in the latest audited balance sheet included in such KCAP SEC Reports as being
owned by KCAP or one of its Subsidiaries or acquired after the date thereof (except properties sold or otherwise disposed of since
the date thereof in the ordinary course of business), free and clear of all Liens of any nature whatsoever, except Permitted Liens,
and (b) is the lessee of all leasehold estates reflected in the latest audited financial statements included in such KCAP SEC Reports
or acquired after the date thereof (except for leases that have expired by their terms since the date thereof), free and clear
of all Liens of any nature whatsoever, except for Permitted Liens, and is in possession of the properties purported to be leased
thereunder, and each such lease is valid without default thereunder by the lessee or, to KCAP’s knowledge, the lessor. Each
of KCAP and its Subsidiaries has complied in all material respects with the terms of all leases covered by this Section 4.13(a).

 

    	 	27	 

     

    

 

(b)       Without
limiting the foregoing Section 4.13(a), each of KCAP and its Subsidiaries has good and valid title to all Investment Securities
owned by it, free and clear of any Liens, except (a) for those Liens arising under the Organizational Documents of the issuers
of such securities, (b) to the extent such securities or investment assets are pledged in connection with KCAP Debt Documents or
(c) for restrictions on transferability arising under federal or state securities laws.

 

4.14       Intellectual
Property. Except as would not be material to KCAP and its Subsidiaries, taken as a whole, (i) either KCAP or a Subsidiary exclusively
owns its material proprietary Intellectual Property, free and clear of all Liens, (ii) the conduct of the businesses of KCAP and
its Subsidiaries does not infringe, misappropriate or dilute (“Infringe”) any Intellectual Property of any Person,
and to KCAP’s knowledge, no Person is Infringing any of their Intellectual Property; (iii) KCAP and its Subsidiaries take
reasonable actions to protect their trade secrets and the security, integrity and continuous operation of the IT Assets used in
their business, and there have been no violations, breaches or outages of same (other than those that were resolved without material
cost or liability or the duty to notify any Person).

 

4.15       State
Takeover Statutes. The KCAP Board has taken all actions so that, in each case assuming the accuracy of BCP’s representations
and warranties set forth in Section 5.7, (i) the restrictions applicable to business combinations contained in Section
203 of the General Corporation Law of the State of Delaware (the “DGCL”) are, and will be, inapplicable
to the execution, delivery and performance of this Agreement and the Management Agreements and the timely consummation of the
Contemplated Transactions and will not restrict, impair or delay the ability of BCP or any of its Affiliates, after the Closing,
to vote or otherwise exercise all rights as a KCAP Stockholder or under the Management Agreements, as applicable, and (ii) no
other “moratorium,” “fair price,” “business combination,” “control share acquisition”
or similar provision of any state anti-takeover Law (together with the restrictions contained in Section 203 of the DGCL, the
“Takeover Statutes”) or any similar anti-takeover provision in the KCAP Certificate or KCAP Bylaws is
applicable to this Agreement, the Management Agreements or the Contemplated Transactions. There is no stockholder rights plan,
“poison pill” anti-takeover plan or other similar device in effect to which KCAP is a party or is otherwise bound.

 

4.16       KCAP
Information. Except with respect to any BCP Information (as to which KCAP makes no representation or warranty), (i) the Proxy
Statement and any application, notification or other document filed with any other SRO or Governmental Entity in connection with
the Contemplated Transactions will not contain any untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary to make the statements therein, in light of the circumstances in which they are made, not misleading,
and (ii) the Proxy Statement will comply as to form in all material respects with the provisions of the Exchange Act. For purposes
of this Agreement, the letter to KCAP Stockholders, notice of meeting, proxy statement and form of proxy to be distributed to KCAP
Stockholders in connection with the KCAP Stockholder Meeting (including any amendments or supplements thereto) are collectively
referred to as the “Proxy Statement”.

 

    	 	28	 

     

    

 

 

4.17       Insurance.
KCAP and its Subsidiaries maintain, or are covered by, policies of insurance in such amounts and against such risks as are customary
in the industries in which KCAP and its Subsidiaries operate. KCAP and its Subsidiaries have paid, or caused to be paid, all premiums
due under all insurance policies of KCAP and its Subsidiaries and have not received written notice that they are in default in
any material respect under such policies. None of KCAP nor any of its Subsidiaries has received any written notice of cancellation
or termination with respect to any existing material insurance policy that is held by, or for the benefit of, KCAP or its Subsidiaries.

 

4.18       Related
Party Transactions. No KCAP Related Party or any immediate family member thereof is a party to any Contract with or binding
upon KCAP or any of its Subsidiaries or any of their respective properties or assets or has any interest in any property owned
by KCAP or any of its Subsidiaries or has engaged in any transaction with any of the foregoing within the last 12 months, in each
case, that is of a type that would be required to be disclosed in the KCAP SEC Reports pursuant to Item 404 of Regulation S K (an
“Affiliate Transaction”) that has not been so disclosed. Any Affiliate Transaction as of the time it
was entered into and as of the time of any amendment or renewal thereof contained such terms, provisions and conditions as were
at least as favorable to KCAP or any of its Subsidiaries as would have been obtainable by KCAP in a similar transaction with an
unaffiliated third party. No KCAP Related Party or any immediate family member thereof owns, directly or indirectly, on an individual
or joint basis, any interest in, or serves as an officer or director or in another similar capacity of, any supplier or other independent
contractor of KCAP or any of its Subsidiaries, or any entity which is party to a Contract with KCAP or any of its Subsidiaries.

 

4.19       Investigation.
KCAP has conducted its own independent review and analysis of the businesses, assets, condition, operations and prospects of BCP
and its Subsidiaries and has been provided access to certain of the properties, premises and records of BCP and its Subsidiaries
for this purpose. In entering into this Agreement, KCAP acknowledges that, except for the representations and warranties of BCP
contained in Article V, or in any certificate delivered pursuant to this Agreement, none of BCP or its Subsidiaries nor
any of their respective officers, directors, employees, agents or representatives makes, and KCAP has not relied on, any representation
or warranty, either express or implied, as to the accuracy or completeness of any of the information provided or made available
to KCAP or its officers, directors, employees, agents or representatives. Without limiting the generality of the foregoing, KCAP
acknowledges that none of BCP or its Subsidiaries nor any of their respective officers, directors, employees, agents or representatives
or any other Person has made, and KCAP has not relied on, a representation or warranty to KCAP or its officers, directors, employees,
agents or representatives with respect to (a) any projections, estimates or budgets for BCP or its Subsidiaries or (b) any material,
documents or information relating to BCP or its Subsidiaries made available to KCAP or its officers, directors, employees, agents
or representatives in any “data room,” confidential information memorandum or otherwise, in each case except as expressly
and specifically covered by a representation or warranty in Article V or in any certificate delivered pursuant to this
Agreement. Notwithstanding anything to the contrary contained in this Section 4.19, nothing in this Section 4.19
shall apply to or limit any claim for Fraud.

 

    	 	29	 

     

    

 

4.20       No
Other Representations or Warranties. Except for the representations and warranties contained in this Article IV or
any certificate delivered pursuant to this Agreement, neither KCAP nor any other Person on behalf of KCAP makes, and BCP has not
relied on, any express or implied representation or warranty with respect to KCAP, any of its Subsidiaries, any investment assets
or Portfolio Company, or any other information provided to BCP in connection with the Contemplated Transactions, including the
accuracy, completeness or timeliness thereof. Without limiting the generality of the foregoing, neither KCAP nor any other Person
on behalf of KCAP makes, and BCP has not relied on, any express or implied representation or warranty with respect to any information,
documents, projections, estimates, forecasts or other material made available to BCP for purposes of the Contemplated Transactions
or management presentations delivered in connection with the Contemplated Transactions, in each case unless and to the extent
any such information is expressly covered by a representation or warranty contained in this Article IV or in any certificate
delivered pursuant to this Agreement, and neither KCAP nor any other Person will have or be subject to any claim, liability or
obligation to BCP or any other Person resulting from the distribution or failure to distribute to BCP, or BCP’s use of,
any such information. Notwithstanding anything to the contrary contained in this Section 4.20, nothing in this Section
4.20 shall apply to or limit any claim for Fraud.

 

Article
V

REPRESENTATIONS AND WARRANTIES OF BCP

 

Except as disclosed in the BCP Disclosure Schedule,
BCP hereby represents and warrants to KCAP as follows:

 

5.1          Corporate
Organization.

 

(a)       BCP
is a corporation duly formed, validly existing and in good standing under the Laws of the State of Delaware. BCP has the requisite
power and authority to own, lease and operate its properties and assets and to carry on its business as it is now being conducted.

 

(b)       BCP
is duly licensed or qualified to do business and is in good standing in each jurisdiction in which the nature of the business conducted
by it or the character or location of the properties and assets owned or leased by it makes such licensing or qualification necessary,
except where the failure to be so licensed or qualified or in good standing would not have a BCP Material Adverse Effect.

 

5.2          Authority;
No Violation.

 

(a)       Authority.

 

   (i)       BCP
has full power and authority to execute, deliver and perform its obligations under this Agreement and to consummate the Contemplated
Transactions. The execution, delivery and performance of this Agreement by BCP and the consummation by BCP of the Contemplated
Transactions have been duly and validly approved by the BCP Board. No other corporate proceedings on the part of BCP are necessary
to approve this Agreement or the Contemplated Transactions. This Agreement has been duly and validly executed and delivered by
BCP and (assuming due and valid authorization, execution and delivery by KCAP) constitutes the valid and binding obligation of
BCP, enforceable against BCP in accordance with its terms (subject to the Bankruptcy and Equity Exception).

 

    	 	30	 

     

    

 

(ii)         As
of the Closing, the Investment Adviser will have full power and authority to execute, deliver and perform its obligations under
the Investment Advisory Agreement and to consummate the transactions contemplated thereby. The execution, delivery and performance
of the Investment Advisory Agreement by the Investment Adviser and the consummation by the Investment Adviser of the transactions
contemplated thereby have been duly and validly approved by the BCP Board. No other corporate proceedings on the part of the Investment
Adviser are necessary to approve the Investment Advisory Agreement or the transactions contemplated thereby. As of the Closing,
the Investment Advisory Agreement will be duly and validly executed and delivered by the Investment Adviser and (assuming due and
valid authorization, execution and delivery by KCAP) will constitute the valid and binding obligation of KCAP, enforceable against
KCAP in accordance with its terms (subject to the Bankruptcy and Equity Exception).

 

(iii)        The
Administrator has full power and authority to execute, deliver and perform its obligations under the Administration Agreement and
to consummate the transactions contemplated thereby. The execution, delivery and performance of the Administration Agreement by
the Administrator and the consummation by the Administrator of the transactions contemplated thereby have been duly and validly
approved by the BCP Board. No other corporate proceedings on the part of the Administrator are necessary to approve the Administration
Agreement or the transactions contemplated thereby. As of the Closing, the Administration Agreement will be duly and validly executed
and delivered by the Administrator and (assuming due and valid authorization, execution and delivery by KCAP) will constitute the
valid and binding obligation of KCAP, enforceable against KCAP in accordance with its terms (subject to the Bankruptcy and Equity
Exception).

 

(b)          No
Violation.

 

(i)          Neither
the execution and delivery of this Agreement by BCP, nor the consummation by BCP of the Contemplated Transactions, nor the performance
by BCP of this Agreement, will (A) violate any provision of any Organizational Documents of BCP, or (B) assuming that the consents,
approvals and filings referred to in Section 5.3 are duly obtained or made, (I) violate any Law applicable to BCP or by
which BCP is bound, or (II) except as would not have a BCP Material Adverse Effect, violate, conflict with, result in a breach
of any provision of or the loss of any benefit under, constitute a default (or an event which, with notice or lapse of time, or
both, would constitute a default) under, result in the termination of or a right of termination or cancellation under, accelerate
the performance required by, or result in the creation of any Lien upon any of the respective properties or assets of BCP under
any Contract to which BCP or any of its Subsidiaries is a party or by which BCP or any of its Subsidiaries or any of their respective
properties or assets is bound.

 

    	 	31	 

     

    

 

(ii)         In
each case as of the Closing, neither the execution and delivery of the Investment Advisory Agreement by the Investment Adviser,
nor the consummation by the Investment Adviser of the transactions contemplated thereby, nor the performance by the Investment
Adviser of the Investment Advisory Agreement, will (A) violate any provision of any Organizational Documents of the Investment
Adviser, or (B) assuming that the consents, approvals and filings referred to in Section 5.3 are duly obtained or made,
(I) violate any Law applicable to the Investment Adviser or by which the Investment Adviser is bound, or (II) except as would not
have a BCP Material Adverse Effect, violate, conflict with, result in a breach of any provision of or the loss of any benefit under,
constitute a default (or an event which, with notice or lapse of time, or both, would constitute a default) under, result in the
termination of or a right of termination or cancellation under, accelerate the performance required by, or result in the creation
of any Lien upon any of the respective properties or assets of the Investment Adviser under any Contract to which the Investment
Adviser or any of its Subsidiaries is a party or by which the Investment Adviser or any of its Subsidiaries or any of their respective
properties or assets is bound.

 

(iii)        In
each case as of the Closing, neither the execution and delivery of the Administration Agreement by the Administration, nor the
consummation by the Administrator of the transactions contemplated thereby, nor the performance by the Administrator of the Administration
Agreement, will (A) violate any provision of any Organizational Documents of the Administrator, or (B) assuming that the consents,
approvals and filings referred to in Section 5.3 are duly obtained or made, (I) violate any Law applicable to the Administrator
or by which the Administrator is bound, or (II) except as would not have a BCP Material Adverse Effect, violate, conflict with,
result in a breach of any provision of or the loss of any benefit under, constitute a default (or an event which, with notice or
lapse of time, or both, would constitute a default) under, result in the termination of or a right of termination or cancellation
under, accelerate the performance required by, or result in the creation of any Lien upon any of the respective properties or assets
of the Administrator under any Contract to which the Administrator or any of its Subsidiaries is a party or by which the Administrator
or any of its Subsidiaries or any of their respective properties or assets is bound.

 

5.3          Consents
and Approvals.

 

(a)          Except
for (i) the filing with the SEC of the Proxy Statement, (ii) any notices, consents, authorizations, approvals, filings or exemptions
in connection with compliance with the rules and regulations of NASDAQ or any other SRO, (iii) and compliance with the Investment
Company Act and the rules and regulations promulgated thereunder (the foregoing (i) through (iii) referred to collectively as the
“BCP Regulatory Approvals”), no consents, authorizations, approvals, or exemptions from, or notices to,
or filings with, any Governmental Entity are necessary in connection with (A) the execution, delivery and performance by BCP of
this Agreement or the consummation by BCP of the Contemplated Transactions, (B) the execution, delivery and performance by the
Investment Adviser of the Investment Advisory Agreement or the consummation by the Investment Adviser of the transactions contemplated
thereby or (C) the execution, delivery and performance by the Administrator of the Administration Agreement or the consummation
by the Administrator of the transactions contemplated thereby.

 

    	 	32	 

     

    

 

(b)          Except
for matters covered in the immediately preceding Section 5.3(a), no consents or approvals of any Person are necessary in
connection with (A) the execution, delivery and performance by BCP of this Agreement or the consummation by BCP of the Contemplated
Transactions, (B) the execution, delivery and performance by the Investment Adviser of the Investment Advisory Agreement or the
consummation by the Investment Adviser of the transactions contemplated thereby or (C) the execution, delivery and performance
by the Administrator of the Administration Agreement or the consummation by the Administrator of the transactions contemplated
thereby.

 

5.4          Regulatory
Matters.

 

(a)          BCP
is not subject to any cease-and-desist or other order or enforcement action issued by, nor is it a party to any written agreement,
consent agreement or memorandum of understanding with, nor is it a party to any commitment letter or similar undertaking to, nor
is it subject to any order or directive by, any SRO or other Governmental Entity that restricts, or any proceeding that seeks to
restrict, in any material respect the conduct of its business, or would in any way adversely affect the Contemplated Transactions,
or that in any material respect relates to its credit, risk management or compliance policies, its internal controls, its management
or its business (each item in this sentence, a “BCP Regulatory Agreement”), nor has BCP been advised
since December 31, 2017 by any SRO or other Governmental Entity that it is considering issuing, initiating, ordering, or requesting
any such BCP Regulatory Agreement.

 

(b)          At
Closing, the Investment Adviser will be duly registered with the SEC as an investment adviser under the Investment Advisers Act
and will not be prohibited by such act or the Investment Company Act from acting as the investment adviser of KCAP under the Investment
Advisory Agreement. There does not exist any proceeding or, to BCP’s knowledge, any facts or circumstances the existence
of which would be reasonably adversely affect the registration of the Investment Adviser with the SEC or the ability of BCP to
perform its obligations under the Investment Advisory Agreement or Administration Agreement.

 

(c)          No
“affiliated person” (as defined under the Investment Company Act) of BCP has been subject to disqualification to serve
in any capacity contemplated by the Investment Company Act under Sections 9(a) and 9(b) of the Investment Company Act, unless,
in each case, such Person has received exemptive relief from the SEC with respect to any such disqualification.

 

(d)          BCP
is not relying on Section 3(c)(1) or Section 3(c)(7) of the 1940 Act for an exclusion from the definition of “investment
company” under the 1940 Act.

 

5.5          Broker’s
Fees. Except for the fees of UBS Securities LLC pursuant a Contract previously made available to KCAP (which fees will be
paid by BCP at or immediately following the Closing), none of BCP or any of its Subsidiaries, nor any of their respective officers
or directors, has employed any broker or finder or incurred any liability for any broker’s fees, commissions or finder’s
fees in connection with the Contemplated Transactions.

 

5.6         Legal
Proceedings. Except as would not have a BCP Material Adverse Effect, as of the date hereof, (i) neither BCP nor any of its
Subsidiaries is a party to any, and there are no pending or, to BCP’s knowledge, threatened, Claims of any nature by or against
BCP or any of its Subsidiaries or to which its assets are subject, and (ii) there is no Law (other than those of general application
that apply to similarly situated companies or their Subsidiaries) imposed upon BCP or any of its Subsidiaries or the assets of
BCP or any of its Subsidiaries.

 

    	 	33	 

     

    

 

5.7          State
Takeover Statutes. Neither BCP nor any funds that BCP directly advises or manages owns any KCAP Common Stock. Assuming the
accuracy of KCAP’s representations and warranties set forth in Section 4.15, no Takeover Statute under the Laws of
the State of Delaware applies to BCP in connection with the Contemplated Transactions.

 

5.8          BCP
Information. 

 

(a)          None
of the information supplied by or on behalf of BCP to the KCAP Board in connection with the KCAP Board’s evaluation process
pursuant to Section 15(c) of the Investment Company Act, at the time it was provided, contained any material or intentional misstatements
or statements made with reckless disregard as to their accuracy.

 

(b)          None
of the information supplied or to be supplied by or on behalf of BCP specifically for inclusion in the Proxy Statement (“BCP
Information”) will, at the time it is first published, distributed or disseminated to the KCAP Stockholders, at the
time of any amendments or supplements thereto or at the time of the KCAP Stockholders Meeting, contain any untrue statement of
a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they are made, not misleading.

 

5.9          No
Financing Condition. At the Closing, BCP will have sufficient immediately available funds in cash or cash equivalents, or available
under lines of credit in effect as of the Closing, in each case as necessary to pay the full amount of the Stockholder Payments
and all other amounts required to be paid by BCP under this Agreement.

 

5.10        No
Contracts with Management or Stockholders. Other than this Agreement, as of the date hereof, there are no legally binding and
enforceable Contracts between BCP or any of its Affiliates, on the one hand, and any member of KCAP’s management or the KCAP
Board, or any KCAP Stockholder, on the other hand, relating to the Contemplated Transactions or the operations of KCAP following
the Closing.

 

5.11        Securities
Laws Matters.

 

(a)          BCP
is an “accredited investor” (as defined in Rule 501(a) under the Securities Act). The shares of KCAP Common Stock to
be acquired by BCP pursuant to the Stock Purchases (the “BCP Acquired Shares”) will be acquired by BCP
for its own account, not as a nominee or agent, and not with a view to or in connection with the public sale or public distribution
of any BCP Acquired Shares. BCP is not acting as an agent, representative, intermediary, nominee, derivative counterparty or in
a similar capacity for any other Person, nominee account or beneficial owner.

 

(b)          BCP
understands that the BCP Acquired Shares are restricted securities within the meaning of Rule 144 under the Securities Act and
that the BCP Acquired Shares are not registered and must be held indefinitely unless they are subsequently registered or an exemption
from such registration is available.

 

    	 	34	 

     

    

 

(c)          BCP
further understands that each certificate representing the BCP Acquired Shares shall be stamped or otherwise imprinted with a legend
substantially in the following form:

 

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF ANY STATES. THESE SECURITIES
ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND NEITHER THE SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD,
TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT AS PERMITTED UNDER THE ACT AND THE APPLICABLE STATE SECURITIES LAWS.

 

5.12        Investigation.
BCP has conducted its own independent review and analysis of the businesses, assets, condition, operations and prospects of KCAP
and its Subsidiaries and has been provided access to certain of the properties, premises and records of KCAP and its Subsidiaries
for this purpose. In entering into this Agreement, BCP acknowledges that, except for the representations and warranties of KCAP
contained in Article IV and in any certificate delivered pursuant to this Agreement, none of KCAP or its Subsidiaries nor
any of their respective officers, directors, employees, agents or representatives makes, and BCP has not relied on, any representation
or warranty, either express or implied, as to the accuracy or completeness of any of the information provided or made available
to BCP or its officers, directors, employees, agents or representatives. Without limiting the generality of the foregoing, BCP
acknowledges that none of KCAP or its Subsidiaries nor any of their respective officers, directors, employees, agents or representatives
or any other Person has made, and BCP has not relied on, a representation or warranty to BCP or its officers, directors, employees,
agents or representatives with respect to (a) any projections, estimates or budgets for KCAP or its Subsidiaries or (b) any material,
documents or information relating to KCAP or its Subsidiaries made available to BCP or its officers, directors, employees, agents
or representatives in any “data room,” confidential information memorandum or otherwise, in each case except as expressly
and specifically covered by a representation or warranty in Article IV or in any certificate delivered pursuant to this
Agreement. Notwithstanding anything to the contrary contained in this Section 5.12, nothing in this Section 5.12
shall apply to or limit any claim for Fraud.

 

5.13        No
Other Representations or Warranties. Except for the representations and warranties contained in this Article V or any
certificate delivered pursuant to this Agreement, neither BCP nor any other Person on behalf of BCP makes, and KCAP has not relied
on, any express or implied representation or warranty with respect to BCP, any of its Subsidiaries, or any other information provided
to KCAP in connection with the Contemplated Transactions, including the accuracy, completeness or timeliness thereof. Without limiting
the generality of the foregoing, neither BCP nor any other Person on behalf of BCP makes, and KCAP has not relied on, any express
or implied representation or warranty with respect to any information, documents, projections, estimates, forecasts or other material
made available to KCAP in connection with the Contemplated Transactions or management presentations delivered in connection with
the Contemplated Transactions, in each case unless and to the extent any such information is expressly covered by a representation
or warranty contained in this Article V or in any certificate delivered pursuant to this Agreement, and neither BCP nor
any other Person will have or be subject to any claim, liability or obligation to KCAP or any other Person resulting from the distribution
or failure to distribute to KCAP, or KCAP’s use of, any such information. Notwithstanding anything to the contrary contained
in this Section 5.13, nothing in this Section 5.13 shall apply to or limit any claim for Fraud.

 

    	 	35	 

     

    

 

Article
VI

COVENANTS RELATING TO CONDUCT OF BUSINESS

 

6.1          KCAP
Forbearances. Except with the prior written consent of BCP, during the period from the date of this Agreement to the earlier
of the termination of this Agreement and the Closing (such period, the “Interim Period”), KCAP shall,
and shall cause each of its Subsidiaries to, (i) except as explicitly required by the LibreMax Merger Agreement, conduct its business
in the ordinary course consistent with past practice in all material respects, (ii) except as explicitly required by the LibreMax
Merger Agreement, use reasonable best efforts to maintain and preserve intact its business organization, assets and business relationships
(including such relationships with customers and suppliers) and retain the services of its officers and key employees, (iii) continue
to meet all requirements necessary to qualify as a regulated investment company, including satisfying the distribution requirements
imposed on a regulated investment company under Section 852 of the Code and (iv) not take or omit to take any action that would
reasonably be expected to have a KCAP Material Adverse Effect. Without limiting the generality of the foregoing, during the Interim
Period, except as expressly permitted by this Agreement, as required by applicable Law or as expressly permitted by Section
6.1 of the KCAP Disclosure Schedule, KCAP shall not, and shall cause each of its Subsidiaries not to, without the prior written
consent of BCP:

 

(a)          incur,
create, assume or otherwise become liable for any Indebtedness, other than as permitted under any KCAP Debt Documents as in effect
on the date hereof, or (ii) other than in the ordinary course of business consistent with past practice, make any loan or advance
or capital contribution to, or investment in, any Person;

 

(b)          adjust,
split, combine, reclassify or otherwise amend the terms of any of its capital stock or issue or authorize the issuance of any other
securities in respect of, in lieu of or in substitution for shares of its capital stock;

 

(c)          make,
declare, set aside or pay any dividend, other than (i) KCAP’s regularly quarterly dividend in an amount not to exceed the
greater of (A) $0.10 per share of KCAP Common Stock and (B) an amount per share of KCAP Common Stock sufficient to satisfy the
distribution requirements imposed on a regulated investment company under Section 852 of the Code, (ii) dividends paid by any Subsidiaries
of KCAP to KCAP or to any of its wholly-owned Subsidiaries and (iii) dividends, if any, required to be made by the KCAP JV;

 

(d)          make
any other distribution (whether in cash, stock or property) on, or directly or indirectly redeem, purchase or otherwise acquire,
any shares of its capital stock or any securities or obligations convertible (whether currently convertible or convertible only
after the passage of time or the occurrence of certain events) into or exchangeable for any shares of its capital stock;

 

    	 	36	 

     

    

 

(e)          except
as explicitly required by the LibreMax Merger Agreement, issue, deliver, sell, grant, pledge or otherwise subject to any Lien any
shares of its capital stock or other equity interests or any securities convertible into, exchangeable for or exercisable for any
such shares or other equity interests, or any shares of restricted stock or other rights, stock appreciation rights, phantom units,
performance units, warrants or stock options, under the KCAP Stock Plan or otherwise (in each case excluding, for the avoidance
of doubt, the vesting of restrictions on KCAP Restricted Shares or the vesting of KCAP Stock Options, in each case pursuant to
their respective terms as of the date hereof or as contemplated by this Agreement);

 

(f)           except
as explicitly required by the LibreMax Merger Agreement, (i) grant or pay any increase in compensation, bonus or benefits to any
of KCAP Employee, or otherwise pay any bonus of any kind or amount to any KCAP Employee, (ii) grant or pay to any KCAP Employee
any severance, change in control or termination payment, or modifications thereto or increases therein, (iii) except as required
under any KCAP Benefit Plan existing as of the date hereof or any applicable Law, pay any benefit or grant or amend any award (including
in respect of stock options, stock appreciation rights, performance units, restricted stock or other stock-based awards or the
removal or modification of any restrictions in any KCAP Benefit Plan or KCAP Stock Plan or awards made thereunder), (iv) except
as required by applicable Law, become a party to, establish, amend, commence participation in, terminate or commit itself to the
adoption of any KCAP Benefit Plan or plan, agreement or arrangement which would be a KCAP Benefit Plan if in effect on the date
hereof, or (v) hire or engage any person who would qualify as a “KCAP Employee” under this Agreement or terminate the
employment or engagement of any KCAP Employee other than for cause;

 

(g)          other
than in the ordinary course of business consistent with past practice or pursuant to the explicit requirements of the LibreMax
Merger Agreement or any other Contracts in effect as of the date of this Agreement and previously made available to BCP, directly
or indirectly sell, transfer, subject to a Lien, lease, license, abandon, allow to lapse or otherwise dispose of, in whole or in
part, any of its properties, rights or assets (including pursuant to securitizations) to any Person other than a KCAP Subsidiary
or cancel, release or assign any amount of Indebtedness to any such Person or any claims held by any such Person;

 

(h)          other
than in the ordinary course of business consistent with past practice, directly or indirectly acquire or agree to acquire (i) by
merging or consolidating with, purchasing an equity interest in or a portion of the assets of, making an investment in or loan
or capital contribution to or in any other manner, any Person or division thereof, or (ii) any assets that are otherwise material
to KCAP and its Subsidiaries, taken as a whole;

 

(i)           amend
the KCAP Certificate or the KCAP Bylaws or, except as explicitly required by the LibreMax Merger Agreement, the Organizational
Documents of any Subsidiary of KCAP, or take any action to exempt any person or entity (other than BCP or its Subsidiaries) or
any action taken by any person or entity (other than BCP or its Subsidiaries) from any Takeover Statute or similarly restrictive
provisions of its Organizational Documents;

 

    	 	37	 

     

    

 

(j)            except
as explicitly required by the LibreMax Merger Agreement, adopt or enter into a plan of complete or partial liquidation, dissolution,
restructuring, recapitalization or other reorganization;

 

(k)           take
any action or fail to take any action that is intended or may reasonably be expected to result in any of the conditions to the
Contemplated Transactions set forth in Article VIII not being satisfied;

 

(l)            incur
or commit to incur any capital expenditures that would exceed $100,000 individually or $500,000 in the aggregate;

 

(m)          commence
any Claim (other than a Claim as a result of a Claim commenced against KCAP or any of its Subsidiaries), or compromise, settle
or agree to settle any Claim (including any Claim relating to this Agreement or the Contemplated Transactions), other than compromises,
settlements or agreements in the ordinary course of business consistent with past practice that involve only the payment of money
damages not in excess of $100,000 individually or $250,000 in the aggregate, in any case without the imposition of any equitable
relief on, or the admission of wrongdoing by, KCAP or any of its Subsidiaries;

 

(n)          (i)
pay, discharge, settle or satisfy any claims, liabilities or obligations (whether absolute, accrued, asserted or unasserted, contingent
or otherwise), other than the payment, discharge or satisfaction in the ordinary course of business consistent with past practice
or as required by their terms as in effect on the date of this Agreement of claims, liabilities or obligations reflected or reserved
against in the most recent audited financial statements (or the notes thereto) of KCAP included in the KCAP SEC Reports filed at
least two Business Days prior to the date hereof (for amounts not in excess of such reserves) or incurred since the date of such
financial statements in the ordinary course of business consistent with past practice, (ii) cancel any Indebtedness owed to KCAP
or any of its Subsidiaries, or (iii) waive, release, grant or transfer any right of material value;

 

(o)          (i)
modify, amend, terminate, cancel, renew, fail to renew or agree to any amendment of, or change in or waiver under, any KCAP Material
Contract (excluding the LibreMax Merger Agreement, which is addressed in Section 7.11), or (ii) enter into any Contract
that if in effect on the date hereof would be a KCAP Material Contract;

 

(p)          make
any material change to its principles, practices or methods of accounting, except (i) as required by GAAP or (ii) as required by
a change in applicable Law;

 

(q)          change
its fiscal year;

 

(r)           enter
into any new line of business outside its existing business;

 

(s)           enter
into any new, or amend the terms of any existing, lease of real property;

 

(t)           except
as explicitly required by the LibreMax Merger Agreement, fail to keep in force insurance policies or replacement or revised provisions
regarding insurance coverage with respect to the assets, operations and activities of KCAP and its Subsidiaries as currently in
effect;

 

    	 	38	 

     

    

 

(u)           make,
change, or revoke any material Tax election, change any material method of Tax accounting, file any material amended Tax Return,
enter into any “closing agreement” within the meaning of Section 7121 of the Code (or any similar provision of state,
local or non-U.S. Law) or surrender any right to claim a material Tax refund;

 

(v)          modify
its Privacy Policies or the operation or security of the IT Assets used in their business in any adverse manner, except as required
by applicable Law;

 

(w)          enter
into any material transaction other than in the ordinary course of business consistent with past practice; or

 

(x)           authorize,
agree, resolve to or commit to do, or publicly announce an intention to do, any of the foregoing.

 

Article
VII

ADDITIONAL AGREEMENTS

 

7.1          Regulatory
and Other Matters.

 

(a)          In
General. During the Interim Period, the Parties shall reasonably cooperate with each other and use their respective reasonable
best efforts to take, or cause to be taken, all appropriate action to do, or cause to be done, all things necessary, proper or
advisable under applicable Law or otherwise to consummate the Contemplated Transactions as promptly as practicable, including to
(i) promptly prepare and file all necessary documentation, (ii) effect all applications, notices, petitions and filings, (iii)
obtain as promptly as practicable all Permits of all third parties and Governmental Entities that are necessary or advisable to
consummate the Contemplated Transactions, (iv) defend any Claims challenging this Agreement or the consummation of the Contemplated
Transactions and (v) comply with the terms and conditions of all such Permits of all such third parties or Governmental Entities.
KCAP and BCP shall have the right to review in advance, and, to the extent practicable, each will consult with the other on, in
each case subject to applicable Laws (including those relating to the confidentiality of information), all information relating
to KCAP or BCP, as the case may be, and any of their respective Subsidiaries, that appear in any filing made with, or written materials
submitted to, any third party or any Governmental Entity in connection with the Contemplated Transactions. In exercising the foregoing
right, each of the Parties shall act reasonably and as promptly as reasonably practicable. The Parties shall consult with each
other with respect to the obtaining of all Permits of all third parties and Governmental Entities necessary or advisable to consummate
the Contemplated Transactions and each Party will keep the other apprised of the status of matters relating to completion of the
Contemplated Transactions, in each case subject to applicable Law.

 

    	 	39	 

     

    

 

(b)         Proxy
Statement.

 

(i)          KCAP
shall file or cause to be filed the Proxy Statement with the SEC as soon as reasonably practicable following the date hereof, but
in no event later than December 21, 2018; provided that KCAP’s failure to file or cause to be filed the Proxy Statement
by such date shall not constitute a breach of this Section 7.1(b)(i) unless and until BCP delivers to KCAP written notice
of such breach. Subject to Section 7.1(b)(ii), KCAP shall thereafter respond as promptly as practicable to any comments
of the SEC or its staff regarding the Proxy Statement.

 

(ii)         KCAP
shall (A) advise BCP and its counsel promptly after it receives any oral or written request by the SEC or its staff for amendment
of the Proxy Statement or comments thereon and responses thereto or requests by the SEC or its staff for additional information,
(B) promptly provide BCP and its counsel with copies of any written communication and summaries of any oral communication, in each
case from the SEC or its staff or any state securities commission and related to the Proxy Statement, (C) give BCP and its counsel
a reasonable opportunity to participate in the responses thereto, including by considering their comments and suggested revisions
in good faith, and (D) promptly coordinate the submission to the SEC or its staff or any state securities commission of any such
responses.

 

(iii)        BCP
shall have the right to review and approve (such approval not to be unreasonably withheld) any amendment or supplement to the Proxy
Statement. In connection with the foregoing, each of BCP and KCAP shall, upon request, furnish, and cause its accountants and other
agents and service providers to furnish to the other and the other’s agents, all information concerning itself, its Subsidiaries,
directors, officers and stockholders and such other matters as may be reasonably necessary or advisable in connection with the
Proxy Statement.

 

(iv)        If,
at any time prior to obtaining the KCAP Stockholder Approval, any information relating to KCAP or BCP, or any of their respective
Affiliates, officers or directors, should be discovered by KCAP or BCP that should be set forth in an amendment or supplement to
the Proxy Statement, so that the Proxy Statement would not contain any misstatement of a material fact or omit to state any material
fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, the Party
that discovers such information shall promptly notify the other Party hereto and KCAP shall promptly file an appropriate amendment
or supplement describing such information with the SEC and, to the extent required under applicable Law, disseminate such amendment
or supplement to KCAP Stockholders.

 

(c)         NASDAQ
Approvals. During the Interim Period, KCAP and BCP shall cooperate and use reasonable best efforts to obtain the approval of
The Nasdaq Stock Market LLC to any supplemental listing application with respect to the current listing of shares of KCAP Common
Stock on NASDAQ as required under the applicable rules thereof as a result of the transactions contemplated hereby, including any
such application required to change the name and ticker symbol of KCAP in connection with the Contemplated Transactions.

 

(d)         Communications.
Subject to applicable Law, each of BCP and KCAP shall promptly advise the other upon receiving any communication from (i) any Governmental
Entity the consent or approval of which is required for consummation of the Contemplated Transactions that causes such Party to
believe that there is a reasonable likelihood that any BCP Regulatory Approval or KCAP Regulatory Approval, as applicable, will
not be obtained or that the receipt of any such approval may be materially delayed, or (ii) any Governmental Entity or other third
Person asserting that the consent of such Governmental Entity or third Person, as applicable, is required for consummation of the
Contemplated Transactions.

 

    	 	40	 

     

    

 

7.2          Access
to Information; Confidentiality.

 

(a)           Upon
reasonable notice, KCAP shall, and shall cause each of its Subsidiaries to, afford to BCP and its Representatives reasonable access,
during normal business hours, during the Interim Period, to all of its properties, assets, books, contracts, commitments, personnel
and records, and, during the Interim Period, KCAP shall, and shall cause each of its Subsidiaries to, promptly make available to
BCP (i) a copy of each report, schedule, registration statement and other document filed or received by it during the Interim Period
pursuant to the requirements of federal or state securities Laws and (ii) all other information concerning its business, properties
and personnel as BCP may reasonably request. Notwithstanding the foregoing, neither KCAP nor any of its Subsidiaries shall be required
to provide access to or to disclose information where such access or disclosure would jeopardize the attorney-client privilege
of KCAP or its Subsidiaries or contravene any applicable Law. The Parties shall make appropriate substitute disclosure arrangements
under circumstances in which the restrictions of the preceding sentence apply.

 

(b)           KCAP
shall file all periodic reports required to be filed by it during the Interim Period. Each such filing shall be prepared in accordance
with the applicable forms, rules and regulations of the SEC and shall satisfy the standard set forth in Section 4.5(c) for
KCAP SEC Reports.

 

(c)           All
information and materials provided pursuant to this Agreement shall be subject to the provisions of the Mutual Nondisclosure Agreement
entered into between the Parties as of September 12, 2018 (the “Confidentiality Agreement”).

 

7.3          KCAP
Stockholder Approval.

 

(a)           On
the date hereof, KCAP shall commence a broker search pursuant to Rule 14a-13 under the Exchange Act in connection with the KCAP
Stockholder Meeting.

 

(b)           Subject
to the earlier termination of this Agreement in accordance with Article IX, no later than two Business Days following KCAP’s
receipt of notice from the SEC that the SEC has completed its review of the Proxy Statement (or, if the SEC does not inform KCAP
that it intends to review the Proxy Statement on or before the 10th day following the filing of the preliminary Proxy Statement
pursuant to Rule 14a-6 under the Exchange Act, no later than two Business Days following such 10th day), KCAP shall file or cause
to be filed with the SEC, and mail or cause to be mailed to the KCAP Stockholders, the Proxy Statement in definitive form. The
notice of the KCAP Stockholder Meeting contained in the definitive Proxy Statement shall provide that the KCAP Stockholder Meeting
will be held on the 35th day following the date of such notice, and subject to Section 7.3(c), unless this Agreement is
sooner terminated under Section 9.1, KCAP shall convene and hold the KCAP Stockholder Meeting, solely for the purpose of
obtaining the KCAP Stockholder Approval, on the date provided for in such notice.

 

    	 	41	 

     

    

 

(c)           KCAP
shall be permitted to adjourn or postpone the KCAP Stockholder Meeting in accordance with applicable Law (i) with BCP’s prior
written consent or (ii) to the extent necessary (but not beyond the Outside Date) to allow reasonable additional time (not to exceed
10 days) for the filing and mailing and subsequent review by KCAP Stockholders of any supplemental or amended disclosure which
the KCAP Board has determined in good faith after consultation with its outside counsel and BCP is necessary under applicable Law
to be so disseminated. In addition to the foregoing, KCAP shall be required to adjourn or postpone the KCAP Stockholder Meeting
in accordance with applicable Law up to two times (but in no event past the Outside Date) (A) if there are insufficient shares
of KCAP Common Stock represented (either in person or by proxy) to constitute a quorum necessary to conduct the business of the
KCAP Stockholder Meeting or (B) to allow reasonable additional time to solicit additional proxies to the extent the KCAP Board
or any committee thereof or BCP reasonably believes necessary in order to obtain the KCAP Stockholder Approval.

 

(d)           Subject
to Section 7.8(e), KCAP and the KCAP Board shall (i) make the KCAP Board Recommendation, (ii) include the KCAP Board Recommendation
in the Proxy Statement and (iii) publicly reaffirm the KCAP Board Recommendation within 24 hours after any reasonable request to
do so by BCP (which such request shall not be made more than twice).

 

(e)           KCAP
shall use its reasonable best efforts to solicit from KCAP Stockholders proxies in favor of the KCAP Stockholder Approval and take
all other action necessary or advisable to secure the KCAP Stockholder Approval as promptly as practicable after the date hereof;
provided, however, that if the KCAP Board shall have made an Adverse Recommendation Change in compliance with the terms of this
Agreement, and this Agreement has not been terminated pursuant to Section 9.1, KCAP need only solicit proxies in order to
obtain a quorum at the KCAP Stockholder Meeting, and need not attempt to obtain the KCAP Stockholder Approval.

 

(f)           Notwithstanding
anything to the contrary contained in this Agreement, unless this Agreement has been terminated pursuant to Section 9.1,
KCAP’s obligations pursuant to this Section 7.3 shall not be diminished or otherwise affected by any Competing Proposal,
Superior Proposal, Adverse Recommendation Change or other occurrence, change, event, effect or development relating to KCAP or
any of its Subsidiaries, BCP or any of its Subsidiaries, any of their respective businesses, assets or operations, or otherwise.

 

    	 	42	 

     

    

 

7.4          Post-Closing
Employment Matters.

 

(a)          Immediately
prior to the Closing Date, KCAP shall terminate, or cause to be terminated, the employment of each active KCAP Employee. As promptly
as practicable (but no later than 30 days) following the date hereof, BCP shall deliver to KCAP a schedule setting forth the name
of each KCAP Employee it intends to make an offer of employment to. During the Interim Period, BCP shall use reasonable best efforts
to cause one of its Affiliates, not later than five days prior to the Closing, to offer employment, commencing as of and contingent
upon the Closing, to each KCAP Employee set forth on such schedule (each such KCAP Employee who accepts such an offer of employment,
a “Continuing Company Employee”); provided that such offer of employment shall be contingent upon
the applicable KCAP Employee agreeing to waive any severance compensation or benefits such KCAP Employee would be entitled to under
any KCAP Benefit Plan, Contract or otherwise as a result of the KCAP Employee’s termination of employment with KCAP. KCAP
shall take all actions reasonably necessary to assist BCP and its Affiliates in making the offers contemplated hereby (including
commercially reasonable efforts to encourage KCAP Employees to accept such offers, which for the avoidance of doubt shall not require
the payment of additional compensation). BCP shall keep KCAP reasonably informed of all offers and acceptances referred to above
on a timely basis. All aspects of such position may be modified by BCP or its Affiliates at any time after the Closing. To the
extent (x) a KCAP Employee (i) does not accept an offer of employment or waiver of severance compensation and benefits or (ii)
does not receive an offer of employment from BCP (a KCAP Employee covered by clauses (i) or (ii), a “Non-Continuing
Company Employee”) and (y) severance compensation or benefits are due and payable to such Non-Continuing Company
Employee (including vacation, personal days, sick pay or other paid time off, benefits or benefit claims, severance or termination
or indemnity pay (including any employer side Taxes or other payments related thereto), notice and benefits under all applicable
Law), KCAP shall be liable for such costs and expenses (the aggregate amount of all such costs and expenses due to all Non-Continuing
Company Employees, “KCAP Severance Benefits”). KCAP shall pay all such KCAP Severance Benefits to Non-Continuing
Company Employees on the date immediately prior to the Closing Date in accordance with Section 7.4(a) of the KCAP Disclosure
Schedule.

 

(b)          For
a period of twelve (12) months following the Closing Date, while employed by BCP or its Affiliates, BCP or its Affiliates shall
provide Continuing Company Employees with retirement, health and welfare benefits, in the aggregate, that are no less favorable
than the employee benefits provided to current employees of BCP and its Affiliates of similar rank and pay grade; provided,
that for purposes of this covenant, defined benefit pension benefits, retiree medical benefits, stock options, other equity or
equity-based, retention or change in control payments or awards shall be disregarded, except as otherwise required by applicable
Law.

 

(c)          With
respect to any BCP benefit plan in which such Continuing Company Employee will participate, including for purposes of paid time
off and severance, effective as of the Closing Date (but subject to any otherwise applicable right thereafter to amend or terminate
the plan), BCP shall recognize, for vesting and eligibility purposes, and, in the case of severance and paid time-off, for accrual
purposes (but, for the avoidance of doubt, not for purposes of any equity incentive plan and not for the purpose of benefit accruals
under any defined benefit plan), all years of service of the Continuing Company Employees with KCAP and its Subsidiaries as if
such service were service with BCP.

 

(d)          Following
the date of this Agreement, KCAP and BCP shall reasonably cooperate and use good faith efforts in all matters reasonably necessary
to effect the transactions contemplated by this Section 7.4, including exchanging information and data and making any and
all required communications with KCAP Employees.

 

(e)          The
provisions of this Section 7.4 are for the sole benefit of the Parties and nothing herein, express or implied, is intended
or shall be construed to confer upon or give to any Person (including any KCAP Employee), other than the Parties and their respective
successors and permitted assigns, any legal or equitable or other rights or remedies under or by reason of any provision of this
Section 7.4. Nothing contained herein, express or implied: (a) shall be construed to establish, amend, or modify any benefit
plan, program, agreement or arrangement (including any KCAP Benefit Plan); (b) shall alter or limit BCP’s ability to amend,
modify or terminate any benefit plan, program, agreement or arrangement; or (c) is intended to confer upon any KCAP Employee any
right to employment or continued employment for any period of time by reason of this Agreement, or any right to a particular term
or condition of employment.

 

    	 	43	 

     

    

 

7.5          Indemnification;
Directors’ and Officers’ Insurance.

 

(a)          All
rights to indemnification and exculpation from liabilities for acts or omissions occurring at or prior to the Closing (including
with respect to acts or omissions to the extent related to the review and approval of this Agreement or the LibreMax Merger Agreement)
now existing in favor of each individual who is now, or has been at any time prior to the date of this Agreement, a director or
officer of KCAP or any of its Subsidiaries or who is or was serving at the request of KCAP or any of its Subsidiaries as a director
or officer of another Person (each, an “Indemnified Party”), in each case as provided in the Organizational
Documents of KCAP or its Subsidiaries or in any indemnification agreements set forth on Section 7.5(a) of the KCAP Disclosure
Schedule, shall continue in full force and effect in accordance with their terms for a period of not less than six years following
the Closing Date, and during such period shall not be amended, repealed or otherwise modified in any manner that would adversely
affect the rights thereunder of such Indemnified Parties, except as otherwise required by Law (it being understood that nothing
in this sentence shall require any amendment to the Organizational Documents of BCP, KCAP or any of their respective Subsidiaries
or Affiliates).

 

(b)          KCAP
shall, at its sole cost and expense, cause the Indemnified Parties who are covered by the directors’ and officers’
liability insurance policy maintained by KCAP as of the date hereof, in the form previously made available to BCP, to be covered
for a period of six years from the Closing by such policy through the purchase of so-called “tail” insurance with respect
to acts or omissions occurring at or prior to the Closing (including with respect to acts or omissions to the extent related to
the review and approval of this Agreement or the LibreMax Merger Agreement) that were actually or allegedly committed by such Indemnified
Parties in their capacities as such.

 

(c)          The
provisions of this Section 7.5 shall survive the Closing and are intended to be for the benefit of, and shall be enforceable
by, each Indemnified Party and his or her heirs and legal representatives.

 

7.6          Additional
Agreements. In case at any time after the Closing any further action is necessary or desirable to carry out the purposes of
this Agreement, the proper officers and directors of each Party and their respective Subsidiaries shall take all such necessary
action as may be reasonably requested by BCP.

 

7.7          Advice
of Changes. During the Interim Period, each of BCP and KCAP shall promptly advise the other of (i) any BCP Material Adverse
Effect or KCAP Material Adverse Effect (as applicable); (ii) any change or event that it believes would or would be reasonably
likely to cause or constitute a breach of any of its representations, warranties, covenants or agreements contained in this Agreement
that would result in any of the conditions set forth in Article VIII not being satisfied; or (iii) with respect to KCAP,
any change or event that it believes would or would be reasonably likely to cause or constitute a breach of any representations,
warranties or covenants contained in the LibreMax Merger Agreement that would result in any of the conditions to closing under
the LibreMax Merger Agreement not being satisfied.

 

    	 	44	 

     

    

 

7.8          No
Solicitation.

 

(a)          Subject
to Section 7.8(d), KCAP shall, and shall cause each of its Subsidiaries and its and their respective Representatives to,
(i) immediately cease and cause to be terminated any existing solicitation of, or discussions or negotiations with, any Person
relating to any Competing Proposal, (ii) immediately terminate any physical or electronic data room access (or other access to
diligence) previously granted to any such Person, (iii) promptly request the prompt return or destruction of all confidential information
previously furnished with respect to any Competing Proposal and (iv) not terminate, waive, amend, release or modify any provision
of any confidentiality or standstill agreement to which it or any of its Affiliates or Representatives is a party, and shall enforce
the provisions of any such agreement, which shall include seeking any injunctive relief available to enforce such agreement; provided
however, that KCAP may grant a waiver of, or terminate, any “standstill” or similar obligation of any Person to allow
such Person to confidentially submit a Competing Proposal to the KCAP Board.

 

(b)          During
the Interim Period, KCAP shall, as promptly as reasonably practicable following (and, in any event, within 24 hours of) receipt
by KCAP or any of its Subsidiaries or any of its or their respective Representatives of any Competing Proposal, deliver to BCP
a written notice setting forth: (A) the identity of the Person making such Competing Proposal and (B) a description of the material
terms and conditions of and facts surrounding any such Competing Proposal. KCAP shall deliver to BCP concurrently with such notice
unredacted copies of any documents (including any indication of interest, transaction agreement or the like) in connection with
such Competing Proposal. KCAP shall keep BCP reasonably informed of the status and details of such Competing Proposal on a prompt
basis, and in any event within 24 hours after the occurrence of any amendment, modification, development, discussion or negotiation
of any such Competing Proposal, and in connection therewith shall deliver to BCP copies of any documents in connection with such
developments or changes. Without limiting any of the foregoing, KCAP shall promptly (and in any event within 24 hours) notify BCP
orally and in writing if it determines to begin providing information or to engage in discussions or negotiations concerning a
Competing Proposal, and shall in no event begin providing such information or engaging in such discussions or negotiations prior
to providing such notice. KCAP shall provide BCP with at least 24 hours prior written notice (or such shorter notice as may be
provided to the KCAP Board) of a meeting of the KCAP Board at which the KCAP Board is reasonably expected to consider a Competing
Proposal.

 

(c)          Except
as otherwise provided in Section 7.8(d), during the Interim Period, KCAP shall not, and shall cause each of its Subsidiaries
and its and their respective Representatives not to, directly or indirectly, (i) initiate, solicit, endorse, propose, induce, knowingly
encourage, facilitate or assist the making of any Competing Proposal, (ii) enter into, continue or otherwise engage in negotiations
or discussions with, or furnish any information to, any Person relating to a Competing Proposal, (iii) approve, endorse or recommend,
whether publicly or non-publicly, any Competing Proposal, (iv) cause or permit KCAP or any of its Subsidiaries to enter into any
letter of intent, memorandum of understanding, agreement in principle, acquisition agreement, merger agreement, option agreement,
joint venture agreement, partnership agreement or other Contract, except for an Acceptable Confidentiality Agreement (each, an
“Alternative Acquisition Agreement”), in each case constituting or related to, or which is intended to
or is reasonably likely to lead to, any Competing Proposal, or (v) resolve, agree or propose, whether publicly or non-publicly,
to do any of the foregoing; provided, however, that notwithstanding the foregoing, KCAP may inform Persons of the
provisions contained in this Section 7.8.

 

    	 	45	 

     

    

 

(d)          Notwithstanding
anything to the contrary contained in this Agreement, at any time prior to the date that the KCAP Stockholder Approval is obtained,
in the event that KCAP (or its Representatives on KCAP’s behalf) receives a written Competing Proposal from any Person, (i)
KCAP and its Representatives may contact such Person, without the KCAP Board being required to make the determination in clause
(ii) of this Section 7.8(d), solely to determine whether such Competing Proposal is bona fide or to clarify any ambiguity
in the Competing Proposal, and (ii) KCAP and the KCAP Board and its Representatives may engage in negotiations or substantive discussions
with, or furnish any information and other access to, such Person making such Competing Proposal and its Representatives if the
KCAP Board determines in good faith (after consultation with its outside financial advisors and outside legal counsel) that (A)
such Competing Proposal is bona fide and was made in good faith by the Person delivering it, (B) either constitutes a Superior
Proposal or is reasonably likely to lead to a Superior Proposal and (C) the failure to so engage in negotiations or discussions
or furnish information or access would reasonably be expected to constitute a breach of its fiduciary duties to the KCAP Stockholders
under Delaware Law; provided, that (x) such Competing Proposal was unsolicited and did not otherwise result from any breach
of any of the provisions set forth in this Section 7.8, (y) prior to furnishing any information concerning KCAP or any of
its Subsidiaries, KCAP and such Person execute, to the extent such Person is not already subject to an Acceptable Confidentiality
Agreement, a confidentiality agreement containing terms, including “standstill provisions,” that are no less favorable
to KCAP than those contained in the Confidentiality Agreement (an “Acceptable Confidentiality Agreement”)
and (z) KCAP shall promptly provide or make available to BCP (I) any non-public information that it provides to such Person that
was not previously made available to BCP or its Representatives, concurrently with the delivery of such non-public information
to such Person, and (II) a non-redacted copy of each such Acceptable Confidentiality Agreement.

 

(e)          Except
as provided in this Section 7.8(e), neither KCAP nor the KCAP Board nor any committee thereof shall (i) (A) withdraw (or
modify or qualify in any manner) the KCAP Board Recommendation, (B) recommend or otherwise declare advisable the approval by the
KCAP Stockholders of any Competing Proposal, (C) fail to publicly reaffirm the KCAP Board Recommendation within 24 hours after
any reasonable request to do so by BCP (which such request shall not be made more than twice) or (D) resolve, agree or publicly
propose to take any such actions prohibited by clauses (A) through (C) (the matters described in the foregoing clauses (A) through
(D), an “Adverse Recommendation Change”), or (ii) approve or recommend a Competing Proposal, or cause
or permit KCAP or any of its Subsidiaries to execute or enter into any Alternative Acquisition Agreement (other than an Acceptable
Confidentiality Agreement), or resolve, agree or propose to take any such actions; provided, however, that notwithstanding
anything in this Section 7.8(e) to the contrary, at any time prior to the receipt of the KCAP Stockholder Approval, the
KCAP Board may, after complying with Section 7.8(f), if the KCAP Board determines in good faith (after consultation with
its outside legal counsel) that the failure to do so would reasonably be expected to constitute a breach of its fiduciary duties
to the KCAP Stockholders under Delaware Law, (I) make an Adverse Recommendation Change if the KCAP Board determines in good faith
(after consultation with its outside financial advisor and outside legal counsel) that the condition set forth in Section 8.3(c)
will not be, or is not reasonably expected to be, satisfied by the Outside Date, or (II) solely in response to a Superior Proposal
received after the date hereof that was unsolicited and did not otherwise result from a breach of this Section 7.8, cause
KCAP to terminate this Agreement in accordance with Section 9.1(h) and concurrently enter into a binding Alternative Acquisition
Agreement with respect to such Superior Proposal.

 

 

    	 	46	 

     

    

 

(f)          Notwithstanding
anything to the contrary in this Agreement, no Adverse Recommendation Change may be made pursuant to Section 7.8(e) and
no termination of this Agreement pursuant to Sections 7.8(e) or 9.1(h) may be effected, in each case until 5:00 p.m.
on the 5th Business Day following receipt of written notice from KCAP to BCP advising BCP that KCAP intends to make an Adverse
Recommendation Change (a “Notice of Adverse Recommendation”) or terminate this Agreement pursuant to
Section 9.1(h) (a “Notice of Superior Proposal”) and specifying the reasons therefor, including,
if the basis of the proposed action is a Superior Proposal, the material terms and conditions of any such Superior Proposal, and
the identity of the Person making such Superior Proposal, and contemporaneously furnishes a copy of the proposed Alternative Acquisition
Agreement and any other relevant transaction documents. At the option of BCP, the Parties shall, and shall cause their respective
Representatives to, negotiate in good faith during such period (i) in the case of a Superior Proposal, to amend this Agreement
in such a manner that the offer that was determined to constitute a Superior Proposal no longer constitutes a Superior Proposal,
or (ii) in the case of an Adverse Recommendation Change, regarding the basis for such proposed Adverse Recommendation Change. In
determining whether to make an Adverse Recommendation Change or in determining whether a Competing Proposal constitutes a Superior
Proposal, the KCAP Board shall take into account any revisions to the terms of this Agreement in response to a Notice of Adverse
Recommendation, a Notice of Superior Proposal or otherwise. Any amendment to such Superior Proposal shall require a new Notice
of Superior Proposal and KCAP shall be required to comply again with the requirements of this Section 7.8(f); provided,
however, that the five (5) Business Day requirement shall be changed to three (3) Business Days (unless doing so would shorten
a then-existing five (5) Business Day negotiation period). If, after compliance with this Section 7.8(f), the KCAP Board
continues to determine in good faith (after consultation with its outside financial advisor and outside counsel) that the failure
to make an Adverse Recommendation Change or to terminate this Agreement pursuant to Section 9.1(h), as applicable, would
reasonably be expected to constitute a breach of its fiduciary duties to the KCAP Stockholders under Delaware Law, then the KCAP
Board may take such action.

 

(g)          Notwithstanding
the foregoing, nothing in this Agreement shall restrict KCAP from taking and disclosing a position contemplated by Rules 14d-9
or 14e-2(a) under the Exchange Act (it being agreed that a “stop, look and listen” communication by the KCAP Board
to KCAP Stockholders pursuant to Rule 14d-9(f) under the Exchange Act or a factually accurate public statement by KCAP that describes
KCAP’s receipt of a Competing Proposal and the operation of this Agreement with respect thereto, as applicable, shall not
be deemed to violate this Section 7.8).

 

    	 	47	 

     

    

 

(h)          Notwithstanding
anything to the contrary contained in this Agreement, (i) any violation of the restrictions or obligations set forth in this Section
7.8 by any Subsidiary of KCAP or any Representative of KCAP or any of its Subsidiaries, whether or not such Person is purporting
to act on behalf of KCAP or any of its Subsidiaries or otherwise, shall constitute a breach of this Section 7.8 by KCAP,
and (ii) KCAP shall not, and shall cause its Subsidiaries not to, enter into any confidentiality agreement with any Person following
the date hereof that would restrict KCAP’s ability to comply with any of the terms of this Section 7.8.

 

7.9          Takeover
Statutes. During the Interim Period, KCAP and the KCAP Board shall take no action to cause any Takeover Statute to become applicable
to this Agreement or the Contemplated Transactions. If any Takeover Statute is or becomes applicable to this Agreement or the Management
Agreements or the Contemplated Transactions, KCAP and the KCAP Board shall take all action necessary to ensure that the Contemplated
Transactions may be consummated as promptly as practicable on the terms contemplated by this Agreement and otherwise to elimination
or minimize the effect of such Takeover Statute with respect to this Agreement or the Management Agreements or the Contemplated
Transactions, as applicable.

 

7.10        Stockholder
Litigation. During the Interim Period, KCAP shall (i) provide prompt written notice to BCP of all stockholder litigation relating
to this Agreement or the Contemplated Transactions, (ii) give BCP the opportunity to participate in the defense or settlement of
any such stockholder litigation and (iii) not enter into any settlement agreement in respect of any such stockholder litigation
without BCP’s prior written consent (such consent not to be unreasonably withheld).

 

7.11        LibreMax
Merger Agreement.

 

(a)          During
the Interim Period, KCAP shall not, without obtaining the express prior written consent of BCP, approve any waiver, amendment,
consent, approval or other modification of the LibreMax Merger Agreement that would reasonably be expected to adversely affect
the value of KCAP or the investment advisory rights set forth in the Investment Advisory Agreement or the consummation, timing
or certainty of the Contemplated Transactions.

 

(b)          KCAP
shall (i) comply with all of the terms and conditions of the LibreMax Merger Agreement, (ii) enforce the LibreMax Merger Agreement
and (iii) use its reasonable best efforts to consummate the closing under the LibreMax Merger Agreement as promptly as practicable.

 

    	 	48	 

     

    

 

7.12        KCAP
Benefit Plans.

 

(a)          On
or prior to the date immediately prior to the Closing Date, except as otherwise requested by BCP at least ten days prior to the
Closing Date, KCAP shall, or shall cause an Affiliate to, take all actions necessary to terminate each KCAP Benefit Plan and all
KCAP Employees shall cease to be participants in such KCAP Benefit Plans, including any KCAP Benefit Plan that is a health or welfare
plan pursuant to which KCAP would otherwise be obligated to provide benefits under the Consolidated Omnibus Budget Reconciliation
Act (“COBRA”, and such plans collectively, the “COBRA Plans”). To the extent
any KCAP Employee who is not a Continuing Company Employee would have been a COBRA “Qualified Beneficiary” if such
COBRA Plans had not been terminated is entitled to COBRA continuation coverage, KCAP shall reimburse such KCAP Employee for the
insurance premiums actually incurred by such KCAP Employee for individual (or family, if immediately prior to the termination date,
such KCAP Employee received family coverage under the COBRA Plan) coverage purchased in the individual insurance market through
the earlier of (A) the date that is six (6) months following the Closing Date (or, the period of time such KCAP Employee was entitled
to COBRA premiums under any “Employment Agreement” set forth on Schedule 4.11(a) of the KCAP Disclosure Schedule,
if longer) and (B) the date such KCAP Employee becomes eligible for health insurance from a subsequent employer, provided the monthly
reimbursement shall be limited to 125% of the amount of monthly premium KCAP was paying for such KCAP Employee’s health insurance
(for family or individual coverage, as applicable) immediately prior to the Closing (the “Health Insurance Reimbursement”).
Notwithstanding the foregoing, in the event the payment of the Health Insurance Reimbursement is prohibited by applicable Law or
could result in a fine, penalty or excise tax to KCAP or BCP or any of their respective Affiliates, the Health Insurance Reimbursement
shall not be paid and the Parties shall cooperate, in good faith, to cause a reasonable substitute to be provided to applicable
KCAP Employees. KCAP shall be solely liable for any liabilities arising pursuant to the termination of the KCAP Benefit Plans.

 

(b)          Each
KCAP Employee who has an account under the KCAP Financial, Inc. Employee Savings and Profit Sharing Plan (the “KCAP
401(k) Plan”) shall be eligible to receive an immediate distribution from the KCAP 401(k) Plan upon the termination
of the KCAP 401(k) Plan in accordance with the terms thereof. Any defined contribution plan designed by BCP may, at the sole election
of BCP and subject to any applicable restrictions under such plan, accept the rollover of any “eligible rollover distribution”
(within the meaning of Section 402(c)(4) of the Code) from the KCAP 401(k) Plan, including plan loans.

 

(c)          KCAP
shall deliver evidence reasonably satisfactory to BCP that each KCAP Benefit Plan, other than the COBRA Plans, has been terminated
effective as of immediately prior to the Closing.

 

(d)          KCAP
shall pay all Continuing Company Employees for all accrued wages and paid time off accrued through the Closing.

 

7.13        Removal
of Legend. Should BCP or any of its Affiliates propose to sell any BCP Acquired Shares in any offering pursuant to a registration
statement under the Securities Act or a transaction exempt from registration under the Securities Act, KCAP shall remove from any
certificates evidencing any such BCP Acquired Shares the legend contemplated by Section 5.11(c) upon delivery by BCP to
KCAP of an opinion by counsel, reasonably satisfactory to KCAP, that a registration statement under the Securities Act is at that
time in effect with respect to such BCP Acquired Shares or that such BCP Acquired Shares can be freely transferred in a public
sale without such a registration statement being in effect and that such transfer will not jeopardize the exemption or exemptions
from registration pursuant to which KCAP issued the BCP Acquired Shares.

 

    	 	49	 

     

    

 

Article
VIII

CONDITIONS PRECEDENT

 

8.1          Conditions
to Each Party’s Obligation To Consummate the Closing. The respective obligations of the Parties to consummate the Closing
shall be subject to the satisfaction or (subject to applicable Law) waiver, at or prior to the Closing, of each of the following
conditions:

 

(a)          KCAP
Stockholder Approval. The KCAP Stockholder Approval shall have been obtained.

 

(b)          Regulatory
Approvals. Each KCAP Regulatory Approval and each BCP Regulatory Approval shall have been obtained and shall remain in full
force and effect and all statutory waiting periods in respect thereof shall have expired.

 

(c)          Registered
Investment Adviser. The Investment Adviser shall be registered as an investment adviser under the Investment Advisers Act and
shall not be prohibited by the Investment Advisers Act or the Investment Company Act from acting as the investment adviser of KCAP
under the Investment Advisory Agreement.

 

(d)          No
Injunctions or Restraints; Illegality. No Law issued by any Governmental Entity preventing or making illegal the consummation
of the Closing shall be in effect.

 

(e)          LibreMax
Transaction. The closing under the LibreMax Merger Agreement shall have occurred.

 

8.2          Conditions
to BCP’s Obligation to Consummate the Closing. The obligation of BCP to consummate the Closing is also subject to the
satisfaction, or waiver by BCP, at or prior to the Closing, of each of the following conditions: 

 

(a)          Representations
and Warranties.

 

(i)       The
representations and warranties set forth in Article IV (other than the KCAP Fundamental Reps and the representation and
warranty set forth in Section 4.8(c) (the “No MAE Rep”)) shall be true and correct in all respects
as of the date of this Agreement and, except to the extent such representations and warranties relate solely to the Asset Management
Subsidiaries, as of the Closing Date as though then made (except to the extent such representations and warranties address matters
as of particular dates, in which case such representations and warranties shall be true and correct in all respects as of such
dates), except, in each case, where the failure of such representations and warranties to be so true and correct has not had a
KCAP Material Adverse Effect (without giving effect to any “material,” “KCAP Material Adverse Effect” or
similar materiality qualifiers in such representations and warranties).

 

    	 	50	 

     

    

 

(ii)         The
KCAP Fundamental Reps shall be true and correct in all but de minimis respects as of the date of this Agreement and, except
to the extent such representations and warranties relate solely to the Asset Management Subsidiaries, as of the Closing Date as
though then made (except to the extent such representations and warranties address matters as of particular dates, in which case
such representations and warranties shall be true and correct in all but de minimis respects as of such dates).

 

(iii)        The
No MAE Rep shall be true and correct in all respects as of the date of this Agreement.

 

(b)          Performance
of Covenants and Agreements of KCAP. KCAP shall have performed in all material respects all covenants and agreements required
to be performed by it under this Agreement at or prior to the Closing.

 

(c)          No
KCAP Material Adverse Effect. From the date of this Agreement to the Closing, there shall not have occurred a KCAP Material
Adverse Effect.

 

(d)          Cancellation
of KCAP Stock Options. All of the KCAP Stock Options shall have been cancelled in exchange for the payment in cash by KCAP
to the holders thereof that does not, in the aggregate, exceed the amount set forth on Section 8.2(d) of the KCAP Disclosure
Schedule.

 

(e)          Certificate.
BCP shall have received a certificate signed on behalf of KCAP by a duly authorized officer thereof stating that each of the conditions
set forth in Section 8.2(a), Section 8.2(b), Section 8.2(c) and Section 8.2(d) has been satisfied.

 

8.3          Conditions
to KCAP’s Obligation to Consummate the Closing. The obligation of KCAP to consummate the Closing is also subject to
the satisfaction, or waiver by KCAP, at or prior to the Closing, of each the following conditions:

 

(a)          Representations
and Warranties.

 

(i)          The
representations and warranties set forth in Article V (other than the representations and warranties set forth in Section
5.1(a), Section 5.2(a), Section 5.2(b)(i)(A), Section 5.2(b)(ii)(A), Section 5.2(b)(iii)(A) and
Section 5.5 (collectively, the “BCP Fundamental Reps”)) shall be true and correct in all respects
as of the date of this Agreement and as of the Closing Date as though then made (except to the extent such representations and
warranties address matters as of particular dates, in which case such representations and warranties shall be true and correct
in all respects as of such dates), except, in each case, where the failure of such representations and warranties to be so true
and correct has not had a BCP Material Adverse Effect (without giving effect to any “material,” “BCP Material
Adverse Effect” or similar materiality qualifiers in such representations and warranties).

 

(ii)         The
BCP Fundamental Reps shall be true and correct in all but de minimis respects as of the date of this Agreement and as of
the Closing Date as though then made (except to the extent such representations and warranties address matters as of particular
dates, in which case such representations and warranties shall be true and correct in all but de minimis respects as of
such dates).

 

    	 	51	 

     

    

 

(b)          Performance
of Covenants and Agreements of BCP. BCP shall have performed in all material respects all covenants and agreements required
to be performed by it under this Agreement at or prior to the Closing.

 

(c)          No
BCP Material Adverse Effect. From the date of this Agreement to the Closing, there shall not have occurred a BCP Material Adverse
Effect.

 

(d)          Certificate.
KCAP shall have received a certificate signed on behalf of BCP by a duly authorized officer thereof stating that each of the conditions
set forth in Section 8.3(a), Section 8.3(b) and Section 8.3(c) has been satisfied.

 

Article
IX

TERMINATION AND AMENDMENT

 

9.1          Termination.
This Agreement may be terminated at any time prior to the Closing, whether before or after receipt of the KCAP Stockholder Approval,
except that termination pursuant to Section 9.1(g) or Section 9.1(h) may only occur prior to receipt of the KCAP
Stockholder Approval:

 

(a)          by
mutual consent of KCAP and BCP, in a written instrument duly executed by KCAP and BCP;

 

(b)          by
either KCAP or BCP, if any Law issued by any Governmental Entity preventing or making illegal the consummation of the Closing shall
have become final and nonappealable;

 

(c)          by
either KCAP or BCP, if the Closing shall not have been consummated on or before June 30, 2019 (the “Outside Date”),
unless the failure of the Closing to occur on or before the Outside Date shall be due to the material breach of this Agreement
by the Party seeking to terminate the Agreement pursuant to this Section 9.1(c);

 

(d)          by
either KCAP or BCP, if the KCAP Stockholder Approval shall not have been obtained at the KCAP Stockholder Meeting (or at any adjournment
or postponement thereof) duly convened therefor at which a vote on the Investment Advisory Agreement is actually taken;

 

(e)          by
either KCAP or BCP (provided that the terminating Party is not then in material breach of this Agreement), if there shall
have been a material breach of this Agreement by KCAP (in the case of a termination by BCP) or BCP (in the case of a termination
by KCAP) which, either individually or in the aggregate with other material breaches of the breaching Party, would result in, if
occurring or continuing on the Closing Date, the failure of any of the conditions set forth in Sections 8.1 or 8.2
(in the case of a termination by BCP) or Sections 8.1 or 8.3 (in the case of a termination by KCAP) to be satisfied,
and which is not cured within 30 days following written notice to the breaching Party or by its nature or timing cannot be cured
within such time period;

 

(f)          by
either KCAP or BCP, if the LibreMax Merger Agreement shall have been terminated;

 

    	 	52	 

     

    

 

(g)          by
BCP, if an Adverse Recommendation Change shall have occurred (whether or not in compliance with the terms of this Agreement); or

 

(h)          by
KCAP, (i) in the event that the KCAP Board has made an Adverse Recommendation Change in compliance with the terms of this Agreement,
or (ii) in order to accept a Superior Proposal in accordance with Section 7.8(e); provided, that in the case of any
termination under this clause (ii), KCAP shall have (A) simultaneously with such termination entered into the associated Alternative
Acquisition Agreement, (B) otherwise complied with all provisions of Section 7.8 and (C) paid any amounts due pursuant to
Section 9.4.

 

The Party desiring to terminate this Agreement
pursuant to clause (b), (c), (d), (e), (f), (g) or (h), as applicable, of this Section 9.1 shall give written notice of
such termination to the other Parties in accordance with Section 10.2, specifying the provision or provisions hereof pursuant
to which such termination is effected.

 

9.2          Effect
of Termination. In the event of a termination of this Agreement by either KCAP or BCP, as provided in Section 9.1,
this Agreement shall become void and have no further effect, and none of KCAP, BCP, any of their respective Subsidiaries or any
of the officers or directors of any of them shall have any liability of any nature whatsoever under this Agreement, or in connection
with the Contemplated Transactions, except that (i) Section 7.2(c), this Section 9.2, Section 9.3, Section
9.4 and Article X shall survive such termination, and (ii) subject to clause (ii) of Section 9.4(c), neither
KCAP nor BCP shall be relieved or released from any liabilities or damages arising out of its Fraud or pre-termination breach
of any provision of this Agreement.

 

9.3          Fees
and Expenses. Subject to Section 9.4, all fees and expenses incurred in connection with the Contemplated Transactions
shall be paid by the Party incurring such fees or expenses; provided, that the fees and expenses of one proxy solicitor
engaged by KCAP to solicit proxies in favor of the KCAP Stockholder Approval shall be split equally by KCAP and BCP, up to a cap
of $125,000, after which KCAP shall pay all such fees and expenses.

 

9.4          Expense
Reimbursement.

 

(a)          In
the event this Agreement is terminated in accordance with Section 9.1(d), Section 9.1(g) or Section 9.1(h),
KCAP shall pay to BCP, within two (2) Business Days of such termination (or in the event of a termination under Section 9.1(h)(ii),
prior to such termination), an amount in cash equal to the BCP Expenses.

 

(b)          In
no event shall KCAP be required to pay the BCP Expenses on more than one occasion.

 

(c)          Each
of the Parties acknowledges that (i) the agreements contained in this Section 9.4 are an integral part of the Contemplated
Transactions, (ii) except with respect to Claims based upon KCAP’s (A) breach of a covenant, where KCAP both (I) intended
to take the action or non-action that resulted in or constituted breach and (II) had actual knowledge that such action or non-action
would result in or constitute breach, or (B) Fraud, in the event this Agreement is terminated pursuant to Section 9.1(d),
Section 9.1(g) or Section 9.1(h) and the BCP Expenses are actually paid to and accepted by BCP, such BCP Expenses
shall be BCP’s sole remedy in connection with such termination, (iii) without these agreements, the Parties would not enter
into this Agreement, and (iv) in the event that KCAP shall fail to pay the BCP Expenses pursuant to this Section 9.4 when
due, and, in order to obtain such payment, BCP commences a suit that results in a final, non-appealable judgment against KCAP,
KCAP shall pay to BCP costs and expenses (including attorneys’ fees) in connection with such suit, together with interest
on the Buyer Expenses at a rate equal to five percent (5%) commencing on the date such payment was required to be made through
the date of payment.

 

    	 	53	 

     

    

 

9.5          Amendment.
This Agreement may be amended by the Parties, by action taken or authorized by the BCP Board and KCAP Board, at any time before
or after receipt of the KCAP Stockholder Approval; provided, however, that after receipt of the KCAP Stockholder
Approval, there may not be, without further approval of the KCAP Stockholders, any amendment of this Agreement that would require
further approval of the KCAP Stockholders under applicable Law. This Agreement may not be amended except by an instrument in writing
signed on behalf of each of the Parties.

 

9.6          Extension;
Waiver. At any time prior to the Closing, the Parties, by action taken or authorized by the BCP Board and the KCAP Board, may,
to the extent legally allowed, (a) extend the time for the performance of any of the obligations or other acts of the other Parties,
(b) waive any inaccuracies in the representations and warranties contained in this Agreement or (c) waive compliance with any of
the agreements or conditions contained in this Agreement. Any agreement on the part of a Party to any such extension or waiver
shall be valid only if set forth in a written instrument signed on behalf of such Party, but such extension or waiver or failure
to insist on strict compliance with an obligation, covenant, agreement or condition shall not operate as a waiver of, or estoppel
with respect to, any subsequent or other failure.

 

Article
X

GENERAL PROVISIONS

 

10.1        Limited
Survival of Representations, Warranties, Covenants and Agreements. None of the representations, warranties, covenants or agreements
set forth in this Agreement or in any certificate delivered pursuant to this Agreement shall survive the Closing; provided,
however, that (i) all representations, warranties, covenants and other agreements set forth in this Agreement or in any
certificate delivered pursuant to this Agreement shall survive the Closing with respect to, and solely with respect to, Claims
based upon Fraud and (ii) all covenants and agreements contained in this Agreement that by their terms apply or are to be performed
in whole or in part after the Closing (including those set forth in Section 7.5) shall survive the Closing in accordance
with their respective terms.

 

10.2         Notices.
All notices and other communications in connection with this Agreement shall be in writing and shall be deemed given if delivered
personally, sent via facsimile (with confirmation), sent via email, mailed by registered or certified mail (return receipt requested)
or delivered by an express courier (with confirmation) to the Parties at the following addresses (or at such other address for
a Party as shall be specified by like notice):

 

    	 	54	 

     

    

 

(a)          if
to KCAP, to:

 

KCAP Financial, Inc.

295 Madison Avenue - 6th Floor

New York, NY 10017

Attention: Dayl W. Pearson

e-mail: pearson@kcapinc.com

 

with a copy to:

 

Eversheds Sutherland (US) LLP

700 Sixth St., NW

Washington, DC 20001

Attention: Steven B. Boehm, Esq.

e-mail: stevenboehm@eversheds-sutherland.com

 

(b)          if
to BCP, to:

 

BC Partners Advisors L.P.

650 Madison Avenue, 23rd Floor

New York, NY 10022

Attention: Edward Goldthorpe

e-mail: ted.goldthorpe@bcpartners.com

Attention: Patrick Schafer

e-mail: patrick.schafer@bcpartners.com

 

with a copy to:

 

Simpson Thacher & Bartlett LLP

900 G Street NW

Washington, DC 20001

Attention: Rajib Chanda, Esq.

e-mail: rajib.chanda@stblaw.com

Attention: Jonathan L. Corsico, Esq.

e-mail: jonathan.corsico@stblaw.com

 

10.3        Interpretation.
When a reference is made in this Agreement to Articles, Sections, Exhibits or Schedules, such reference shall be to an Article
or Section of or Exhibit or Schedule to this Agreement unless otherwise indicated. The table of contents and headings contained
in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.
Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall
be deemed to be followed by the words “without limitation.” The KCAP Disclosure Schedule and the BCP Disclosure Schedule,
as well as all other schedules and all exhibits hereto, shall be deemed part of this Agreement and included in any reference to
this Agreement. All words used in this Agreement will be construed to be of such gender or number as the circumstances require.
The words “hereof,” “herein” and “hereunder” and words of similar import when used in this
Agreement shall refer to the Agreement as a whole and not to any particular provision in this Agreement. The term “or”
is not exclusive. The word “will” shall be construed to have the same meaning and effect as the word “shall.”
References to days mean calendar days unless otherwise specified. Any Contract, instrument or Law defined or referred to herein
means such Contract, instrument or Law as from time to time amended, modified or supplemented, unless otherwise specifically indicated.
References to any Law include references to any associated rules or regulations promulgated thereunder and any official guidance
with respect thereto. References to a Person are also to its predecessors, successors and assigns. Unless otherwise specifically
indicated, all references to “dollars” and “$” are references to the lawful money of the United States
of America. All times of day are references to New York, New York time of day unless otherwise specified.

 

    	 	55	 

     

    

 

10.4        Counterparts.
This Agreement may be executed in two or more counterparts, all of which shall be considered one and the same agreement and shall
become effective when counterparts have been signed by each of the Parties and delivered to the other Parties, it being understood
that each Party need not sign the same counterpart.

 

10.5        Entire
Agreement. This Agreement (including the documents and the instruments referred to in this Agreement), together with the Investment
Advisory Agreement, the Administration Agreement, and Confidentiality Agreement, constitutes the entire agreement and supersedes
all prior agreements and understandings, both written and oral, between the Parties with respect to the subject matter of this
Agreement.

 

10.6        Governing
Law; Jurisdiction. This Agreement shall be governed and construed in accordance with the internal laws of the State of Delaware,
without regard to any applicable conflicts of law principles. Each of the Parties hereby irrevocably and unconditionally submits,
for itself and its property, to the exclusive jurisdiction of the Delaware Court of Chancery, or, if (and only if) such court lacks
subject matter jurisdiction, any Federal court of the United States of America sitting in the State of Delaware, and the respective
appellate courts from the foregoing (all of the foregoing, collectively, the “Delaware Courts”), in any
action or proceeding arising out of or relating to this Agreement or the agreements delivered in connection herewith or the transactions
contemplated hereby or thereby or for recognition or enforcement of any judgment relating thereto, and each of the Parties hereby
irrevocably and unconditionally (i) agrees not to commence any such action or proceeding except in the applicable Delaware Court,
(ii) agrees that any claim in respect of any such action or proceeding may be heard and determined in the applicable Delaware Court,
(iii) waives, to the fullest extent it may legally and effectively do so, any objection that it may now or hereafter have to the
laying of venue of any such action or proceeding in the applicable Delaware Court, and (iv) waives, to the fullest extent permitted
by Applicable Law, the defense of an inconvenient forum to the maintenance of such action or proceeding in the applicable Delaware
Court. Each of the Parties agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced
in other jurisdictions by suit on the judgment or in any other manner provided by Applicable Law. Each of the Parties further agrees
that notice as provided herein shall constitute sufficient service of process and the Parties further waive any argument that such
service is insufficient.

 

10.7        Publicity.
Neither KCAP nor BCP shall, nor shall they permit any of their respective Subsidiaries to, issue or cause the publication of any
press release or other public announcement with respect to, or otherwise make any public statement concerning, the Contemplated
Transactions without the prior consent (which consent shall not be unreasonably withheld) of BCP, in the case of a proposed announcement
or statement by KCAP, or KCAP, in the case of a proposed announcement or statement by BCP; provided, however, that
any Party may, without the prior written consent of the other Party (but after prior consultation with the other Party to the
extent practicable under the circumstances) issue or cause the publication of any press release or other public announcement to
the extent required by Law or by the rules and regulations of NASDAQ or any other applicable securities exchange.

 

    	 	56	 

     

    

 

10.8        Assignment;
Third Party Beneficiaries. Neither this Agreement nor any of the rights, interests or obligations under this Agreement shall
be assigned by any Party (whether by operation of law or otherwise) without the prior written consent of the other Party. Subject
to the preceding sentence, this Agreement shall be binding upon, inure to the benefit of and be enforceable by each of the Parties
and their respective successors and assigns. Except as otherwise specifically provided in Section 7.5, this Agreement (including
the documents and instruments referred to in this Agreement) is not intended to and does not confer upon any person other than
the Parties any rights or remedies under this Agreement. BCP and KCAP hereby agree that their respective representations warranties
set forth therein and, except as provided in Section 7.5, their respective covenants and agreements set forth herein, are
solely for the benefit of the Parties, in accordance with and subject to the terms of this Agreement, and this Agreement is not
intended to, and does not, confer upon any person other than the Parties any rights or remedies hereunder, including, without limitation,
the right to rely upon such representations and warranties set forth herein. The Parties further agree that the rights of third
party beneficiaries under Section 7.5 shall not arise unless and until the Closing occurs. The representations and warranties
in this Agreement are the product of negotiations among the Parties and are for the sole benefit of the Parties, and may represent
an allocation among the Parties of risks associated with particular matters regardless of the knowledge of any of the Parties.
Consequently, Persons other than the Parties may not rely upon the representations and warranties in this Agreement as characterizations
of actual facts or circumstances as of the date of this Agreement or as of any other date.

 

10.9        Remedies.

 

(a)          Except
as otherwise provided in this Agreement (including without limitation Section 9.4(c)), any and all remedies herein expressly
conferred upon a Party will be deemed cumulative with and not exclusive of any other remedy conferred hereby, or by law or equity
upon such Party, and the exercise by a Party of any one remedy will not preclude the exercise of any other remedy.

 

(b)          The
Parties hereby agree that irreparable damage could occur in the event that any provision of this Agreement was not performed in
accordance with its specific terms or was otherwise breached, and that money damages or other legal remedies may not be an adequate
remedy for any such damages. Accordingly, the Parties acknowledge and hereby agree that in the event of any breach or threatened
breach of any covenants or agreements set forth in this Agreement, each Party shall be entitled to an injunction or injunctions
to prevent or restrain breaches or threatened breaches of this Agreement and to specifically enforce the terms and provisions of
this Agreement to prevent breaches or threatened breaches of, or to enforce compliance with, the covenants and agreements of the
other Party under this Agreement. Each Party hereby agrees not to raise any objections to the availability of the equitable remedy
of specific performance to prevent or restrain breaches or threatened breaches of this Agreement, and to specifically enforce the
terms and provisions of this Agreement to prevent breaches or threatened breaches of, or to enforce compliance with, the covenants
and obligations under this Agreement. The Parties further agree that (i) by seeking the remedies provided for in this Section
10.9(b), neither Party shall in any respect waive its right to seek any other form of relief that may be available to such
Party under this Agreement (including monetary damages) in the event that this Agreement has been terminated or in the event that
the remedies provided for in this Section 10.9(b) are not available or otherwise are not granted, and (ii) nothing set forth
in this Section 10.9(b) shall require either Party to institute any proceeding for (or limit such Party’s right to
institute any proceeding for) specific performance under this Section 10.9(b) prior or as a condition to exercising any
termination right under Article IX (and pursuing damages after such termination), nor shall the commencement of any legal
proceeding pursuant to this Section 10.9(b) or anything set forth in this Section 10.9(b) restrict or limit either
Party’s right to terminate this Agreement in accordance with Article IX or pursue any other remedies under this Agreement
that may be available then or thereafter.

 

    	 	57	 

     

    

 

10.10      Waiver
of Jury Trial. Each Party acknowledges and agrees that any Claim which may arise under this Agreement is likely to involve
complicated and difficult issues, and therefore each such Party hereby irrevocably and unconditionally waives any right such Party
may have to a trial by jury in respect of any Claim directly or indirectly arising out of or relating to this Agreement or the
Contemplated Transactions. Each Party certifies and acknowledges that (i) no representative, agent or attorney of any other Party
has represented, expressly or otherwise, that such other Parties would not, in the event of any Claim, seek to enforce the foregoing
waiver, (ii) each Party understands and has considered the implications of this waiver, (iii) each Party makes this waiver voluntarily
and (iv) each Party has been induced to enter into this Agreement by, among other things, the mutual waivers and certifications
in this Section 10.10. 

 

10.11      Severability.
Whenever possible, each provision or portion of any provision of this Agreement shall be interpreted in such manner as to be effective
and valid under applicable Law, but if any provision or portion of any provision of this Agreement is held to be invalid, illegal
or unenforceable applicable Law, such invalidity, illegality or unenforceability shall not affect any other provision or portion
of any provision of this Agreement, and this Agreement shall be reformed, construed and enforced as if such invalid, illegal or
unenforceable provision or portion of any provision had never been contained herein. 

 

10.12      No
Suits Against Non-Parties.

 

(a)          Subject
to Section 10.12(d), this Agreement may only be enforced against, and any claim or cause of action based upon, arising
out of, or related to this Agreement may only be brought against, the respective Parties, and then only with respect to the specific
obligations set forth herein with respect to such Parties.

 

(b)          In
furtherance of Section 10.12(a), but subject to Section 10.12(d), KCAP hereby agrees that (i) no KCAP Related Party
will bring or support any action, cause of action, Claim, cross-claim or third-party claim of any kind or description, whether
in law or in equity, whether in contract or in tort or otherwise, against any BCP Related Party (other than BCP), in any way relating
to this Agreement or the Contemplated Transactions, and (ii) no BCP Related Party (other than BCP) shall have any liability (whether
in contract or in tort, in law or in equity, or based upon any theory that seeks to impose liability of an entity party against
its owners or Affiliates) to any KCAP Related Party for any obligations or liabilities of any BCP Related Party under this Agreement
or for any claim based on, in respect of, or by reason of, the Contemplated Transactions or in respect of any oral representations
made or alleged to have been made in connection herewith.

 

    	 	58	 

     

    

 

(c)          In
furtherance of Section 10.12(a), but subject to Section 10.12(d), BCP hereby agrees that (i) no BCP Related Party
will bring or support any action, cause of action, Claim, cross-claim or third-party claim of any kind or description, whether
in law or in equity, whether in contract or in tort or otherwise, against any KCAP Related Party (other than KCAP), in any way
relating to this Agreement or the Contemplated Transactions, and (ii) no KCAP Related Party (other than KCAP) shall have any liability
(whether in contract or in tort, in law or in equity, or based upon any theory that seeks to impose liability of an entity party
against its owners or Affiliates) to any BCP Related Party for any obligations or liabilities of any KCAP Related Party under this
Agreement or for any claim based on, in respect of, or by reason of, the Contemplated Transactions or in respect of any oral representations
made or alleged to have been made in connection herewith.

 

(d)          Notwithstanding
anything in this Section 10.12 to the contrary, nothing in this Section 10.12 shall limit (i) the ability of an Indemnified
Party to bring a claim for indemnification in accordance with Section 7.5, or (ii) the rights of parties under the Investment
Advisory Agreement, the Administration Agreement, the Great Lakes subscription agreement or related letter agreement, or the Asset
Purchase Letter Agreement to bring claims under any such agreements, in each case solely against any other Persons who are expressly
parties thereto.

 

(e)          For
purposes of this Agreement:

 

(i)          “BCP
Related Parties” means BCP and its former, current and future equityholders, controlling persons, directors, officers,
employees, agents, general or limited partners, managers, management companies, members, stockholders, Affiliates, Representatives
or assignees and any and all former, current and future equity holders, controlling persons, directors, officers, employees, agents,
general or limited partners, managers, management companies, members, stockholders, Affiliates, Representatives or assignees of
any of the foregoing, and any and all former, current and future heirs, executors, administrators, trustees, successors or assigns
of any of the foregoing; and

 

(ii)         “KCAP
Related Parties” means KCAP and its former, current and future equityholders, controlling persons, directors, officers,
employees, agents, general or limited partners, managers, management companies, members, stockholders, Affiliates, Representatives
or assignees and any and all former, current and future equity holders, controlling persons, directors, officers, employees, agents,
general or limited partners, managers, management companies, members, stockholders, Affiliates, Representatives or assignees of
any of the foregoing, and any and all former, current and future heirs, executors, administrators, trustees, successors or assigns
of any of the foregoing.

 

    	 	59	 

     

    

 

IN WITNESS WHEREOF, the undersigned Parties
have caused this Agreement to be executed by their respective officers thereunto duly authorized as of the date first above written.

 

	 	KCAP FINANCIAL, INC.
	 	 	 
	 	By:	/s/ Dayl W. Pearson
	 	 	Name: Dayl W. Pearson
	 	 	Title: Chief Executive Officer
	 	 	 
	 	BC PARTNERS ADVISORS L.P.
	 	 	 
	 	By:	BC Partners (GP) LLC
	 	Its:	General Partner
	 	 	 
	 	By:	/s/ Edward Goldthorpe
	 	 	Name: Edward Goldthorpe
	 	 	Title: Partner

 

Signature PageExhibit 10.2

 

FORM OF VOTING AND SUPPORT AGREEMENT

 

VOTING AND SUPPORT AGREEMENT, dated as of December
14, 2018 (this “Agreement”), between BC Partners Advisors L.P., a Delaware limited partnership (“BCP”),
and [the Stockholder] (the “Stockholder”). Capitalized terms used but not defined herein shall have the meanings
ascribed to them in the Stock Purchase and Transaction Agreement (as defined below).

 

RECITALS

 

WHEREAS, concurrently herewith, BCP and KCAP
Financial Inc., a Delaware corporation (“KCAP”), are entering into that certain Stock Purchase and Transaction
Agreement (the “Stock Purchase and Transaction Agreement”), pursuant to which, among other things, KCAP and
the Investment Adviser will enter into the Investment Advisory Agreement;

 

WHEREAS, one of the conditions to KCAP and the
Investment Adviser entering into the Investment Advisory Agreement is the approval thereof by the stockholders of KCAP;

 

WHEREAS, the Stockholder is a member of the
Board of Directors of KCAP and is the record or beneficial owner of the number and type of equity interests of KCAP (the “Shares”)
set forth on Schedule A hereto (the Shares listed on Schedule A, together with any additional Shares or other voting
securities of KCAP that the Stockholder owns of record or beneficially as of the date hereof or acquires after the date hereof
record or beneficial ownership, including by purchase, as a result of a stock dividend, stock split, recapitalization, combination,
reclassification, redesignation or exchange, upon exercise or conversion of any options, warrants or other securities, or otherwise,
the “Covered Shares”);

 

WHEREAS, pursuant to the Stock Purchase and
Transaction Agreement, holders of KCAP Stock Options shall execute a Cancellation Acknowledgement Agreement, pursuant to which
each KCAP Stock Option shall be cancelled immediately prior to the Closing;

 

WHEREAS, the Stockholder currently holds the
KCAP Stock Options set forth on Schedule B, which the Stockholder agrees shall be cancelled immediately prior to the Closing in
accordance with this Agreement; and

 

WHEREAS, as a condition and inducement to BCP’s
willingness to enter into the Stock Purchase and Transaction Agreement and to consummate the transactions contemplated thereby,
BCP and the Stockholder are entering into this Agreement.

 

NOW, THEREFORE, in consideration of the foregoing
and the mutual covenants and agreements herein contained, and intending to be legally bound hereby, BCP and the Stockholder hereby
agree as follows:

 

    	 		 

     

    

 

AGREEMENT

 

1.           Agreement
to Vote. Prior to the Termination (as defined below), the Stockholder irrevocably and unconditionally agrees that he shall
at any meeting of the stockholders of the KCAP (whether annual, special or otherwise and whether or not an adjourned or postponed
meeting), however called, or in connection with any written consent of the stockholders of KCAP, however proposed: (a) when a meeting
is held, appear at such meeting or otherwise cause all of the Covered Shares to be counted as present thereat for the purpose of
establishing a quorum, and when a written consent is proposed, respond to each request by KCAP for written consent, and (b) vote
or consent, or cause to be voted at such meeting or cause such consent to be granted with respect to, all of the Covered Shares
(i) in favor of the approval of the Investment Advisory Agreement and any other matters necessary for consummation of the other
transactions contemplated by the Stock Purchase and Transaction Agreement and any other action reasonably requested by BCP in furtherance
thereof and (ii) against (A) any proposal for any advisory agreement, recapitalization, reorganization, liquidation, dissolution,
amalgamation, merger, sale of assets or other business combination between or involving KCAP and any other Person that would reasonably
be expected to impede, interfere with, delay, postpone or adversely affect the Transaction or any of the other transactions contemplated
by the Stock Purchase and Transaction Agreement or this Agreement, (B) any other action that would reasonably be expected to impede,
interfere with, delay, postpone or adversely affect the approval of the Investment Advisory Agreement or any of the other transactions
contemplated by the Stock Purchase and Transaction Agreement or this Agreement, (C) any action or transaction that would result
in a breach of any covenant, representation or warranty or other obligation or agreement of KCAP or any of its Subsidiaries contained
in the Stock Purchase and Transaction Agreement, or of the Stockholder contained in this Agreement, (D) any amendment or other
change to KCAP’s certificate of incorporation or bylaws, and (E) any other material change in KCAP’s corporate structure
or business.

 

2.           No
Inconsistent Agreements. The Stockholder hereby represents, warrants, covenants and agrees that, except as contemplated by
this Agreement, he (a) has not entered into, and shall not enter into at any time prior to the Termination, any voting agreement,
voting trust or other agreement that directly or indirectly addresses voting with respect to any Covered Shares and (b) has not
granted, and shall not grant at any time prior to the Termination, a proxy or power of attorney with respect to any Covered Shares,
in either case, which is inconsistent with this Agreement.

 

3.           Termination.
This Agreement shall terminate upon the earliest to occur of (a) the Closing, (b) the termination of the Stock Purchase and Transaction
Agreement and (c) June 30, 2019 (the “Termination”); provided, that the provisions set forth in Sections
10 through 22 shall survive any such Termination; provided further, that any such Termination shall not relieve either party
hereto for any pre-Termination breach of this Agreement.

 

4.           KCAP
Stock Options. All KCAP Stock Options held by the Stockholder, whether vested or unvested, shall be cancelled immediately prior
to the Closing in exchange for the right to receive a one-time cash payment of $6,000 (the “Consideration”)
from KCAP in respect of all such cancelled KCAP Stock Options. Such payment shall be conditioned on, and shall be made promptly
following, the Stockholder’s execution of a standard general release of claims, in a form reasonably satisfactory to BCP.
Upon such cancellation, all of Stockholder’s rights and all obligations of KCAP (or any successor, subsidiary or affiliate)
with respect to the KCAP Stock Options will be extinguished, except for Stockholder’s right to receive the Consideration.

 

    	 	2	 

     

    

 

5.           Representations
and Warranties of the Stockholder. The Stockholder hereby represents and warrants to BCP as follows:

 

(a)       Schedule
A lists all shares of capital stock and other equity interests owned of record or beneficially by the Stockholder in KCAP,
designating any such shares or other equity interests that are restricted or otherwise subject to vesting requirements. Schedule
A lists all options, warrants and other securities convertible into or exercisable or exchangeable for shares of capital stock
and other equity interests in KCAP owned of record or beneficially by the Stockholder. Except as set forth on Schedule A,
the Stockholder does not own of record or beneficially any voting securities or other equity interests in KCAP or any securities
convertible into or exercisable or exchangeable for any such voting securities or other equity interests. The Stockholder does
not own of record any Shares which are beneficially owned by a third Person.

 

(b)       The
Stockholder is the record or beneficial owner of, and has good and valid title to, all Covered Shares of the Stockholder, free
and clear of all liens, pledges, restrictions and other encumbrances (each, a “Lien”), other than as created
by this Agreement. The Stockholder has sole voting power, sole power of disposition and sole power to agree to all of the matters
set forth in this Agreement, in each case with respect to all of such Covered Shares, with no limitations, qualifications or restrictions
on such rights. Such Covered Shares are not subject to any voting trust agreement or other Contract to which the Stockholder is
a party restricting or otherwise relating to the voting or Transfer (as defined below) of such Covered Shares. The Stockholder
has not appointed or granted any proxy or power of attorney that is still in effect with respect to such Covered Shares, except
as contemplated by this Agreement.

 

(c)       The
Stockholder has full legal power and capacity to execute and deliver this Agreement and to perform his obligations hereunder. The
execution, delivery and performance of this Agreement by the Stockholder and the consummation by the Stockholder of the transactions
contemplated hereby have been duly and validly authorized by the Stockholder and no other actions or proceedings on the part of
the Stockholder are necessary to authorize the execution and delivery by the Stockholder of this Agreement, the performance by
the Stockholder of his obligations hereunder or the consummation by the Stockholder of the transactions contemplated hereby, in
each case on a timely basis. This Agreement has been duly and validly executed and delivered by the Stockholder and, assuming due
authorization, execution and delivery by BCP, constitutes a legal, valid and binding obligation of the Stockholder, enforceable
against the Stockholder in accordance with its terms, except as enforcement may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting creditors’ rights generally and by general principles of equity (regardless
of whether considered in a proceeding in equity or at law). If the Stockholder is married, and any of the Covered Shares of the
Stockholder constitute community property or otherwise need spousal or other approval for this Agreement to be legal, valid and
binding, this Agreement has been duly and validly executed and delivered by the Stockholder’s spouse and, assuming due authorization,
execution and delivery by BCP, constitutes a legal, valid and binding obligation of the Stockholder’s spouse, enforceable
against the Stockholder’s spouse in accordance with its terms, except as enforcement may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and by general principles of
equity (regardless of whether considered in a proceeding in equity or at law).

 

    	 	3	 

     

    

 

(d)       Except
for the applicable requirements of the Exchange Act, (i) no filing with, and no permit, authorization, consent or approval of,
any Governmental Entity is necessary on the part of the Stockholder for the execution, delivery and performance of this Agreement
by the Stockholder or the consummation by the Stockholder of the transactions contemplated hereby and (ii) neither the execution,
delivery or performance of this Agreement by the Stockholder nor the consummation by the Stockholder of the transactions contemplated
hereby nor compliance by the Stockholder with any of the provisions hereof shall (A) result in any breach or violation of, or constitute
a default (or an event which, with notice or lapse of time or both, would become a default) under, or give to others any rights
of termination, amendment, acceleration or cancellation of, or result in the creation of a Lien on any property or asset of the
Stockholder pursuant to, any Contract to which the Stockholder is a party or by which the Stockholder or any property or asset
of the Stockholder is bound or affected or (B) violate any Law applicable to the Stockholder or any of the Stockholder’s
properties or assets except, for breaches, violations or defaults that would not, individually or in the aggregate, materially
impair the ability of the Stockholder to perform his obligations hereunder on a timely basis.

 

(e)       There
is no Claim pending against the Stockholder or, to the knowledge of the Stockholder, any other Person or, to the knowledge of the
Stockholder, threatened against the Stockholder or any other Person that restricts or prohibits (or, if successful, would restrict
or prohibit) the exercise by either party of its rights under this Agreement or the performance by either party of its obligations
under this Agreement on a timely basis.

 

(f)       The
Stockholder understands and acknowledges that BCP is entering into the Stock Purchase and Transaction Agreement in reliance upon
the Stockholder’s execution and delivery of this Agreement and the representations, warranties, covenants and agreements
of the Stockholder contained herein and would not enter into the Stock Purchase and Transaction Agreement if the Stockholder did
not enter into this Agreement.

 

6.           Certain
Covenants of the Stockholder. The Stockholder hereby covenants and agrees as follows:

 

(a)       Except
as contemplated hereby, the Stockholder shall not, between the date hereof and the date on which a vote is taken on the Investment
Advisory Agreement, (i) tender into any tender or exchange offer, (ii) sell (constructively or otherwise), transfer, pledge, hypothecate,
grant, gift, encumber, assign or otherwise dispose of (collectively “Transfer”), or enter into any Contract
with respect to the Transfer of, any of the Covered Shares or beneficial ownership or voting power thereof or therein (including
by operation of law), (iii) grant any proxies or powers of attorney, deposit any Covered Shares into a voting trust or enter into
a voting agreement with respect to any Covered Shares or (iv) take any action that would make any representation or warranty of
the Stockholder contained herein untrue or incorrect or have the effect of preventing or disabling the Stockholder from performing
its covenants or agreements under this Agreement. Any Transfer in violation of this provision shall be void and of no force or
effect.

 

    	 	4	 

     

    

 

(b)       In
the event that the Stockholder acquires record or beneficial ownership of, or the power to vote or direct the voting of, any additional
Shares or other voting interests with respect to KCAP, such Shares or voting interests shall, without further action of the parties,
be deemed Covered Shares and subject to the provisions of this Agreement, and the number of Shares held by the Stockholder set
forth on Schedule A hereto will be deemed amended accordingly and such Shares or voting interests shall automatically become
subject to the terms of this Agreement. The Stockholder shall promptly notify BCP and KCAP of any such event.

 

7.           Stockholder
Capacity. This Agreement is being entered into by the Stockholder solely in his capacity as a stockholder of KCAP, and nothing
in this Agreement shall restrict or limit the ability of the Stockholder who is also a director or officer of KCAP to take any
action in his capacity as a director or officer (as applicable) of KCAP or from fulfilling the duties and obligations of such office,
whether relating to the Stock Purchase and Transaction Agreement or otherwise, and such actions shall not be deemed to be a breach
of this Agreement.

 

8.           Disclosure.
The Stockholder hereby authorizes each of BCP and KCAP to publish and disclose in any announcement or disclosure required by Law
the Stockholder’s identity and ownership of the Covered Shares and the nature of the Stockholder’s obligations under
this Agreement, and to disclose a copy of this Agreement.

 

9.           Further
Assurances. From time to time, at the request of BCP and without the payment of any consideration, the Stockholder shall take
such further action as may reasonably be deemed by BCP to be necessary or desirable to consummate and make effective the transactions
contemplated by this Agreement.

 

10.         Amendment
or Supplement. This Agreement may not be amended, modified or supplemented in any manner, whether by course of conduct or otherwise,
except by an instrument in writing specifically designated as an amendment hereto, signed on behalf of each party hereto.

 

11.         Waiver.
No failure or delay of either party in exercising any right or remedy hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such right or power,
or any course of conduct, preclude any other or further exercise thereof or the exercise of any other right or power. The rights
and remedies of the parties hereunder are cumulative and are not exclusive of any rights or remedies which they would otherwise
have hereunder. Any agreement on the part of a party to any such waiver shall be valid only if set forth in a written instrument
executed and delivered by such party or by a duly authorized officer on behalf of such party.

 

    	 	5	 

     

    

 

12.         Interpretation.
When a reference is made in this Agreement to a Section, paragraph, clause or Schedule, such reference shall be to a Section, paragraph,
clause or Schedule of this Agreement unless otherwise indicated. The headings contained in this Agreement are for convenience of
reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. All words used in this
Agreement will be construed to be of such gender as the circumstances require, and in the singular or plural as the circumstances
require. The word “including” and words of similar import when used in this Agreement shall mean “including,
without limitation,” unless otherwise specified. The words “hereof,” “hereto,” “hereby,”
“herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement
as a whole and not to any particular provision of this Agreement. The word “or” is not exclusive. The word “extent”
in the phrase “to the extent” shall mean the degree to which a subject or other thing extends, and such phrase shall
not mean simply “if.” The word “will” shall be construed to have the same meaning and effect as the word
“shall.” References in this Agreement to “vote”, “voting”, “voted” and likewise
shall refer to shares being voted or otherwise tabulated in any manner possible, whether in person at a meeting, by written consent,
by proxy or otherwise. A Person shall be deemed the “beneficial” owner of, shall be deemed to have “beneficial”
ownership of, and shall be deemed to “beneficially” own any securities which such Person or any of such Person’s
Affiliates (a) beneficially owns as determined pursuant to Rule 13d-3 under the Exchange Act as in effect on the date of this Agreement,
(b) has the right to acquire (whether such right is exercisable immediately or only after the passage of time), or (c) has the
right to vote or dispose of, directly or indirectly. Any agreement, instrument or law defined or referred to herein means such
agreement, instrument or law as from time to time amended, modified or supplemented, unless otherwise specifically indicated. References
to any law include references to any associated rules, regulations and official guidance with respect thereto. References to a
Person are also to its predecessors, successors and assigns. Unless otherwise specifically indicated, all references to “dollars”
and “$” are references to the lawful money of the United States of America. References to “days” mean calendar
days unless otherwise specified. Each of the parties to this Agreement acknowledges that it has been represented by counsel in
connection with this Agreement and the transactions contemplated by this Agreement. Accordingly, any rule of law or any legal doctrine
that would require interpretation of any claimed ambiguities in this Agreement against the drafting party has no application and
is expressly waived.

 

13.         Notices.
All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been
duly given (i) on the date of service or delivery if served personally on the party to whom notice is to be given, (ii) on the
day after delivery to Federal Express or similar overnight courier to the party as follows or (iii) on the date sent by e-mail
of a “portable document format” (.pdf) document (without receipt of a delivery failure message) if sent during normal
business hours of the recipient, and on the next business day if sent after normal business hours of the recipient:

 

(i)        If
to the Stockholder,

KCAP Financial, Inc.

295 Madison Avenue - 6th Floor

New York, NY 10017

Attn:          [Stockholder]

 

with copies to (which shall not constitute notice):

 

    	 	6	 

     

    

 

Eversheds Sutherland (US) LLP

700 Sixth St., NW

Washington, DC 20001

Attn:          Steven B. Boehm

Email:        stevenboehm@eversheds-sutherland.com

 

(ii)       If
to BCP:

 

BC Partners Advisors L.P.

650 Madison Avenue, 23rd Floor

New York, NY 10022

Attn:         Edward Goldthorpe

Email:       Ted.Goldthorpe@bcpartners.com

Attn:          Patrick Schafer

Email:        patrick.schafer@bcpartners.com

 

with copies to (which shall not constitute notice):

 

Simpson Thacher & Bartlett LLP

900 G Street, N.W.

Washington, D.C. 20001

Attn:          Rajib Chanda

                  Jonathan L. Corsico

Email:        Rajib.Chanda@stblaw.com

                  Jonathan.Corsico@stblaw.com

 

14.         Entire
Agreement. This Agreement and the Stock Purchase and Transaction Agreement (including the Exhibits and Disclosure Schedules
thereto) constitute the entire agreement, and supersede all prior written agreements, arrangements, communications and understandings
and all prior and contemporaneous oral agreements, arrangements, communications and understandings between the parties with respect
to the subject matter hereof.

 

15.         No
Third-Party Beneficiaries. Nothing in this Agreement, express or implied, is intended to or shall confer upon any Person other
than the parties and their respective successors and permitted assigns any legal or equitable right, benefit or remedy of any nature
under or by reason of this Agreement.

 

16.         Governing
Law. This Agreement, and all legal proceedings (whether in contract, tort or otherwise) that may be based upon, arise out of
or relate to this Agreement, or the negotiation, execution or performance of this Agreement shall be governed by and construed
in accordance with, the laws of the State of Delaware, without giving effect to any choice of law or conflict of law rules or provisions
(whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other
than the State of Delaware.

 

    	 	7	 

     

    

 

17.         Submission
to Jurisdiction. Each of the parties irrevocably agrees that any legal action or proceeding arising out of or relating to this
Agreement brought by either party or its Affiliates against any other party or its Affiliates shall be brought and determined exclusively
in the Court of Chancery of the State of Delaware, provided that if jurisdiction is not then available in the Court of Chancery
of the State of Delaware, then any such legal action or proceeding shall be brought exclusively in any federal court located in
the State of Delaware. Each of the parties hereby irrevocably submits to the jurisdiction of the aforesaid courts for itself and
with respect to its property, generally and unconditionally, with regard to any such action or proceeding arising out of or relating
to this Agreement and the transactions contemplated hereby. Each of the parties agrees not to commence any action, suit or proceeding
relating thereto except in the courts described above in Delaware, other than actions in any court of competent jurisdiction to
enforce any judgment, decree or award rendered by any such court in Delaware. Each of the parties further agrees that notice as
provided herein shall constitute sufficient service of process and the parties further waive any argument that such service is
insufficient. Each of the parties hereby irrevocably and unconditionally waives, and agrees not to assert, by way of motion or
as a defense, counterclaim or otherwise, in any action or proceeding arising out of or relating to this Agreement or the transactions
contemplated hereby (a) any claim that it is not personally subject to the jurisdiction of the courts in Delaware as described
herein for any reason, (b) that it or its property is exempt or immune from jurisdiction of any such court or from any legal process
commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment,
execution of judgment or otherwise) and (c) that (i) the suit, action or proceeding in any such court is brought in an inconvenient
forum, (ii) the venue of such suit, action or proceeding is improper or (iii) this Agreement, or the subject matter hereof, may
not be enforced in or by such courts.

 

18.         Assignment;
Successors. Neither this Agreement nor any of the rights, interests or obligations under this Agreement may be assigned or
delegated, in whole or in part, by operation of law or otherwise, by either party without the prior written consent of the other
party, and any such assignment without such prior written consent shall be null and void. Subject to the preceding sentence, this
Agreement will be binding upon, inure to the benefit of, and be enforceable by, the parties and their respective successors and
assigns.

 

19.         Enforcement.
The parties agree that irreparable damage, for which monetary damages (even if available) would not be an adequate remedy, would
occur if the parties hereto do not perform the provisions of this Agreement (including failing to take such actions as are required
of them hereunder to consummate the transactions contemplated hereby) in accordance with its specified terms or otherwise breach
such provisions. Accordingly, the parties acknowledge and agree that the parties shall be entitled to an injunction, specific performance
or other equitable relief to prevent breaches of this Agreement and to enforce specifically the terms and provisions hereof, in
addition to any other remedy to which they are entitled at law or in equity. Each of the parties agrees that it shall not oppose
the granting of an injunction, specific performance or other equitable relief on the basis that any other party has an adequate
remedy at law or that any award of an injunction, specific performance or other equitable relief is not an appropriate remedy for
any reason at law or in equity. Either party entitled to (i) an injunction or injunctions to prevent breaches of this Agreement,
(ii) enforce specifically the terms and provisions of this Agreement or (iii) other equitable relief, in each case, shall not be
required to show proof of actual damages or to provide any bond or other security in connection with any such remedy.

 

    	 	8	 

     

    

 

20.         Severability.
If any term or other provision of this Agreement is held to be invalid, illegal or incapable of being enforced by any rule of law,
or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long
as either the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse
to either party or such party waives its rights under this Section with respect thereto. Upon such determination that any term
or other provision is invalid, illegal or incapable of being enforced, the parties shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner to the end that the
transactions contemplated hereby are fulfilled to the extent possible.

 

21.         Waiver
of Jury Trial. EACH PARTY TO THIS AGREEMENT HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO TRIAL BY JURY
OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (A) ARISING UNDER THIS AGREEMENT OR (B) IN ANY WAY CONNECTED WITH OR RELATED OR
INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO IN RESPECT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS RELATED HERETO, IN EACH
CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY OR OTHERWISE. EACH PARTY TO THIS AGREEMENT
HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY,
AND THAT THE PARTIES TO THIS AGREEMENT MAY FILE A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE
PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

 

22.         Counterparts.
This Agreement may be executed in two or more counterparts, all of which shall be considered one and the same instrument and shall
become effective when one or more counterparts have been signed by each of the parties and delivered to each other party. Delivery
of an executed counterpart of this Agreement by facsimile or other electronic image scan transmission shall be effective as delivery
of an original counterpart hereof.

 

[The remainder of this page is intentionally
left blank; signature page follows.]

 

    	 	9	 

     

    

 

IN WITNESS WHEREOF, BCP and the Stockholder
have caused to be executed or executed this Agreement as of the date first written above.

 

	 	[BCP]
	 	 
	 	 
	 	Name:
	 	Title:

 

Signature
Page to Voting and Support  Agreement

 

    	 		 

     

    

 

	 	[Stockholder]
	 	 
	 	 
	 	Name:
	 	Title:

 

Signature
Page to Voting and Support Agreement

 

    	 		 

     

    

 

SCHEDULE A

 

	Stockholder	 	Shares of
 Common Stock
 Owned
 Beneficially	 	 	Shares of
 Special Voting
 Preferred Stock
 Owned
 Beneficially	 	 	Shares of
 Special
 Voting
 Preferred
 Stock
 Owned of
 Record	 	 	Other
 Equity

    Securities
 Owned
 Beneficially
 or of
 Record	 
	[•]	 	 	[•]	 	 	 	—	 	 	 	—	 	 	 	—	 

 

    	 		 

     

    

 

SCHEDULE B

 

	Stockholder	 	KCAP Stock Options
 Held	 
	[•]	 	 	[•]	 

 

    	 	13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00290-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00290-of-00352.parquet"}]]