Document:

CNL Strategic Capital, LLC S-1

Exhibit
10.6 

 

Amended and Restated Expense Support and Conditional Reimbursement Agreement

 

This
Amended and Restated Expense Support and Conditional Reimbursement Agreement (this “Agreement”) is dated
February 7, 2018 by and among CNL Strategic Capital, LLC (the “Company”), CNL Strategic Capital
Management, LLC (the “Manager”) and Levine Leichtman Strategic Capital, LLC (the
“Sub-Manager,” and together with the Manager, the “Managers”).

 

WHEREAS,
the Company and the Manager have entered into that certain Amended and Restated Management Agreement, dated as of February
7, 2018 (as it may be amended from time to time, the “Management Agreement”);

 

WHEREAS,
the Manager and the Sub-Manager have entered into that certain Amended and Restated Sub-Management Agreement, dated of even
date with the Management Agreement (as may be amended from time to time, the “Sub-Management
Agreement”);

 

WHEREAS,
the Company monitors its Available Operating Funds (as defined below), and has incurred, and continues to incur, Operating Expenses
(as defined below); and

 

WHEREAS,
the Company and the Managers have determined that it is appropriate and in the best interests of the Company to conditionally
waive Operating Expenses until the Company has achieved economies of scale sufficient to ensure that the Company is able to bear
a reasonable level of expenses relative to the value of the assets it has acquired.

 

NOW,
THEREFORE, in consideration of the promises and the mutual agreements contained herein, and for other good and valuable consideration
(the receipt and sufficiency of which are hereby acknowledged), the parties hereto agree as follows:

 

1.     Definitions.
Capitalized terms not otherwise defined herein have the meaning ascribed to them in the Management Agreement. As used herein,
the following capitalized terms shall have the following meanings:

Applicable
Calendar Month – shall have the meaning ascribed to such term in Section 2.2 of this Agreement.

 

Available
Operating Funds – shall mean net operating income, as determined under U.S. generally accepted accounting principles,
including realized capital gains and realized capital losses, but excluding Conditional Waiver Amounts, Expense Support Amounts,
interest costs, financing fees and financing costs, any non-cash income items or expenses (such as paid-in-kind interest, original
issue discount, debt issuance costs, etc.), and any ongoing shareholder servicing and distribution fees.

 

Average
Gross Assets – shall have the meaning ascribed to such term in Section 3(a) of the Management Agreement and
shall be calculated consistently with such definition.

 

Board
– shall mean the body or sole Member that has the complete and exclusive discretion to manage the business and affairs
of the Company pursuant to Article V of the Operating Agreement.

 

Business
Day – shall mean any day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which banking
institutions in New York City are authorized or required by law, regulation or executive order to close.

 

    - 1 - 

     

    

 

Commencement
Date – shall mean the date on which the Company commences investment operations.

 

Conditional
Reimbursement – shall have the meaning ascribed to such term in Section 3.1 of this Agreement.

 

Conditional
Waiver Amount – shall have the meaning ascribed to such term in Section 2.2 of this Agreement.

 

Distribution
– shall have the meaning ascribed to such term in Exhibit A.

 

Distribution
Reinvestment Plan – shall mean that certain dividend reinvestment plan as disclosed in the Company’s S-1 Registration
Statement filed with the Securities and Exchange Commission.

 

Effective
Distributions Per Share – shall mean the dollar amount of regular cash Distributions per share excluding declared
Special Dividends and Distributions, if any.

 

Equity
Shares – shall mean the outstanding Membership Interests in any of the Company’s Equity Share Classes.

 

Equity
Share Class – shall mean any of the Class A Shares, Class I Shares, Class T Shares, Class D Shares, Class FA Shares
as defined in Section 7.1 of the Operating Agreement, or any other class of common shares that the Board may authorize
from time to time pursuant to the Operating Agreement.

 

Excess
Operating Funds – shall have the meaning ascribed to such term in Section 3.1 of this Agreement.

 

Expense
Support Amount – shall have the meaning ascribed to such term in Section 2.1 of this Agreement.

 

Fees
– shall mean the amounts paid by the Company to the Manager or Sub-Manager, as applicable, pursuant to Section
3 of the Management Agreement and Section 3 of the Sub-Management Agreement.

 

Initial
Term – shall have the meaning ascribed to such term in Section 9(a) of the Management Agreement.

 

Member
– shall have the meaning ascribed to such term in Section 2.2 of the Operating Agreement.

 

Membership
Interest – shall have the meaning ascribed to such term in Section 2.2 of the Operating Agreement.

 

Notice
– shall have the meaning ascribed to such term in Section 2.2 of this Agreement.

 

Operating
Agreement – shall mean the Second Amended and Restated Limited Liability Company Operating Agreement, dated as
of December 18, 2017, as the same may be amended from time to time, by and among the Company and the Manager.

 

Operating
Expenses – shall mean all of the Company’s operating costs and expenses incurred, as determined in accordance
with U.S. generally accepted accounting principles.

 

     

     

    

 

Operating
Expense Ratio – shall have the meaning ascribed to such term in Section 3.2(b) of this Agreement.

 

Organization
and Offering Expenses –shall have the meaning ascribed to such term in Section 2(a)(i) of the Management
Agreement.

 

Other
Operating Expenses – shall mean Operating Expenses incurred by the Company, excluding Base Management Fees, Total
Return Incentive Fees, interest costs, financing fees and financing costs, any ongoing shareholder servicing and distribution
fees, any Organizational and Offering expenses, Expense Support Amounts, and brokerage commissions, as determined under U.S. generally
accepted accounting principles.

 

Reimbursable
Expenses – shall mean the sum of “Reimbursable Expenses” as defined Section 5(b) of the
Sub-Management Agreement, plus reimbursements payable to the Manager under Section 2 of the Management Agreement,
less Organization and Offering Expenses.

 

Renewal
Term – shall have the meaning ascribed to such term in Section 9(a) of the Management Agreement.

 

Shareholders
– shall mean the registered holders of the Company’s Equity Shares.

 

Special
Dividends and Distributions – shall mean any distributions declared by the Board other than monthly distributions
declared in the ordinary course of business.

 

Unreimbursed
Expense Support Amounts – shall mean the amount of Expense Support Amounts that have been reduced by the Manager
and/or Sub-Manager, as applicable, for the benefit of the Company, and for which the Company has not made Conditional Reimbursements
to the Manager and/or Sub-Manager, as applicable.

 

2.     Expense
Support.

 

2.1   Annual
Obligation. Beginning on the Commencement Date and continuing until the Agreement is terminated as provided in Section 4,
the Manager and the Sub-Manager shall provide expense support to the Company through reducing the payment of Fees and reimbursements
of Reimbursable Expenses in an amount that is equal to the annual (calendar year) excess of (a) the Distributions declared
and payable to Shareholders over (b) Available Operating Funds (the “Expense Support Amount”), provided,
however, that for the calendar year ending December 31, 2017, the Expense Support Amount may be equal to any negative Available
Operating Funds. The Expense Support Amount shall be borne equally (50%/50%) by the Manager and the Sub-Manager, and shall be
calculated as of the last Business Day of the calendar year.

 

2.2    Monthly
Conditional Waiver. Beginning on the Commencement Date and continuing until the Agreement is terminated as provided in Section
4, within fifteen (15) Business Days from the last Business Day of each full calendar month (and not any partial months) (each,
an “Applicable Calendar Month”), the Company shall deliver to the Managers a notice (the “Notice”)
specifying, on a per Equity Share Class basis for each Equity Share Class, the Conditional Waiver Amount for such Applicable Calendar
Month. Unless the Manager or Sub-Manager, as applicable, within five (5) Business Days from receipt of the Notice, objects to
the Conditional Waiver Amount included in such Notice, the Manager and Sub-Manager shall equally (50%/50%) conditionally reduce
the payment of Fees and reimbursements of Reimbursable Expenses in an amount equal to the Conditional Waiver Amount; provided,
however, that the Manager and Sub-Manager shall not reduce Fees and reimbursements of Reimbursable Expenses to the extent
that such reductions are estimated to cause the annualized (based on a 365-day year) aggregate amount of Conditional Waiver Amounts
to exceed the Expense Support Amount. For purposes of this Agreement, the “Conditional Waiver Amount” shall
mean the aggregate estimated amount of per Equity Share Class expense support required by the Company for the Applicable Calendar
Month, but in no event will exceed the excess of (a) the sum of the Distributions declared and payable to Shareholders
of each Equity Share Class over (b) the sum of the Available Operating Funds attributable each Equity Share Class for such
Applicable Calendar Month. An example of how such Conditional Waiver Amount is calculated is attached hereto as Exhibit B.

 

     

     

    

 

3.     Conditional
Reimbursement.

 

3.1    Payment
Obligation. If, on the last Business Day of the calendar year, annual (calendar year) year-to-date Available Operating Funds
exceeds the sum of the annual (calendar year) year-to-date Distributions paid per Equity Share Class (the amount of such
excess being hereafter referred to as “Excess Operating Funds”), subject to the conditions and limitations
set forth in Section 3.2 below, the Company shall use such Excess Operating Funds to pay to the Managers all or a portion
of the outstanding Unreimbursed Expense Support Amounts. Any payments required to be made by the Company pursuant to this Section
3.1 shall be referred to herein as “Conditional Reimbursements.” Any Conditional Reimbursements shall be
applied to the earlier Expense Support Amount provided by the Company; provided, however, that Conditional Reimbursements
shall be applied first, to Unreimbursed Expense Support Amounts attributable to Reimbursable Expenses of the Manager and the Sub-Manager
equally (50%/50%), and next to Unreimbursed Expense Support Amounts attributable to Fees of the Manager and the Sub-Manager equally
(50%/50%). The Company will make any Conditional Reimbursements to the Manager and the Sub-Manager equally in any combination
of cash or other immediately available funds as promptly as possible after the last Business Day of the calendar year, but in
any event no later than 90 calendar days after the last day of such calendar year.

 

3.2    Conditions.
The Company’s obligation to make Conditional Reimbursements is subject to the following conditions and limitations:

 

(a)       
The Company is required to make Conditional Reimbursements attributable to an Equity Share Class only to the extent that such
Conditional Reimbursements do not cause such Equity Share Class’s Other Operating Expenses (on an annualized basis (based
on a 365-day year) and net of any Conditional Waiver Amounts reduced by the Managers for the benefit of the Company during the
calendar year) to exceed 1.75% of Average Gross Assets attributable to such Equity Shares (on an annualized basis (based on a
365-day year)) after taking the Expense Support Amount attributable to such Equity Shares into account.

 

(b)        Notwithstanding
anything to the contrary in this Agreement, no Conditional Reimbursements attributable to an Equity Share Class shall be made
if the Operating Expense Ratio attributable to such Equity Share Class at the time of such Reimbursement Payment is less than
or equal to the Operating Expense Ratio attributable to such Equity Share Class at the time the Expense Support Amount was reduced
by the Managers, and to which such Conditional Reimbursement relates. The “Operating Expense Ratio” is calculated
by dividing the Operating Expenses, less Organizational and Offering Expenses, Base Management and Total Return Incentive Fees
owed to Managers, and interest expense, by gross assets.

 

(c)        Notwithstanding
anything to the contrary in this Agreement, no Conditional Reimbursements of the Expense Support Amount allocable to an Equity
Share Class shall be made with respect to such Equity Share Class if: the Effective Distributions Per Share declared by the Company
allocable to such Equity Share Class at the time of such Conditional Reimbursements is less than the Effective Distributions Per
Share allocable to such Equity Share Class at the time the Expense Support Amount was made to which such Conditional Reimbursement
relates.

 

     

     

    

 

(d)        The
Company’s obligation to make Conditional Reimbursements shall automatically terminate and be of no further effect three
(3) years following the date which the Expense Support Amount was provided and to which such Conditional Reimbursement relates.

 

3.3    Conditional
Reimbursement Payments. Subject to the conditions set forth in Section 3.2 and the last sentence in Section 3.1,
the Company shall make Conditional Reimbursements to the Manager and Sub-Manager equally (50% / 50%). For the avoidance of doubt,
the Conditional Reimbursement to the Manager or Sub-Manager, as applicable, shall first be applied to Unreimbursed Expenses Support
Amounts attributable to Reimbursable Expenses and then applied to Unreimbursed Expenses Support Amounts attributable to Fees.
All Unreimbursed Expense Support Amounts shall remain eligible for reimbursement subject to the conditions set forth in Sections
3.1 and 3.2.

 

4.     Term
and Termination of Agreement; Survival. This Agreement shall have the same Initial Term and Renewal Terms as the Management
Agreement or Sub-Management Agreement, as applicable to the Manager or Sub-Manager. Notwithstanding the foregoing, this Agreement
may be terminated by the Managers, acting jointly, upon written notice to the Company, except that once effective, the Managers
may not terminate their obligations under Section 2, unless any party provides one-hundred and twenty (120) days prior
written notice to the other parties. This Agreement shall automatically terminate upon (a) with respect to the Manager, the termination
by the Company of the Management Agreement, or with respect to the Sub-Manager, termination by the Company of the Sub-Management
Agreement, or (b) the dissolution or liquidation of the Company, provided that Sections 3 (with respect to any Unreimbursed
Expense Support Amounts), 4, 5, 6, 10 and 11 survive termination. Notwithstanding any provision to the contrary,
if this Agreement terminates automatically pursuant to clause (a) of this Section 4, the Company agrees to make a Conditional
Reimbursement to the Manager in an amount equal to the total amount of Unreimbursed Expense Support Amounts. Such repayment shall
be made to the Managers under the terms set forth in Section 3.3, and not later than thirty (30) days after such termination
of this Agreement.

 

5.      Titles
not to Affect Interpretation. The titles of paragraphs and subparagraphs contained in this Agreement are for convenience only,
and they neither form a part of this Agreement nor are they to be used in the construction or interpretation hereof.

 

6.       Notices.

 

All
notices, requests, claims, demands, and other communications hereunder which relate to this Agreement shall be in writing and
shall deemed to be delivered, (i) upon delivery in person, (ii) one (1) day after deposit with Federal Express or similar overnight
courier service, (iii) three (3) days after being mailed by registered or certified mail (postage prepaid, return receipt requested),
or (iv) one (1) day after sending an e-mail provided such e-mail is followed by deposit with Federal Express or similar overnight
courier no later than the following day.

 

Unless
otherwise notified in writing, all notices, request, claims, demands and other communications shall be given to the respective
parties at the following addresses or at such other address for a party as shall be specified in a notice given in accordance
with this Section 6: 

 

	To the Company:	CNL Strategic Capital LLCCNL
                                         Center at City Commons

                                         450 South Orange Avenue

                                         Orlando, Florida 32801

                                         Attn: General Counsel

E-mail:
dwolmer@llcp.com; holly.greer@cnl.com

 

     

     

    

 

	 	To the Manager:	

CNL
Strategic Capital Management, LLC

CNL Center at City Commons

450 South Orange Avenue

Orlando, Florida 32801

Attn: Chief Financial Officer and General Counsel

E-mail:
tammy.tipton@cnl.com; holly.greer@cnl.com

	 	 	 
	 	To the Sub-Manager:	Levine
    Leichtman Strategic Capital, LLC

    335 North Maple Drive, Suite 130

    Beverly Hills, CA 90210

    Attn: General Counsel

E-mail:
dwolmer@llcp.com

 

7.      Entire
Agreement; Governing Law. This Agreement contains the entire agreement of the parties and supersedes all prior agreements,
understandings and arrangements with respect to the subject matter hereof, provided that the Management Agreements shall remain
in full force and effect. Notwithstanding the place where this Agreement may be executed by any of the parties hereto, this Agreement
shall be construed in accordance with the laws of the State of New York (without giving effect to any conflict of laws provisions),
and any action brought to enforce the agreements made hereunder or any action which arises out of the relationship created hereunder
shall be brought exclusively in the federal or state courts for New York, New York. Each party hereby irrevocably waives its rights
to trial by jury in any action or proceeding arising out of this Agreement or the transactions relating to its subject matter.

 

8.      Amendment.
This Agreement shall not be amended, modified, or waived, in whole or in part, except by an instrument in writing signed by the
parties hereto, or their respective successors or permitted assignees.

 

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

 

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

 

11.    Waivers.
Neither the failure nor any delay on the part of a party to exercise any right, remedy, power, or privilege under this Agreement
shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power, or privilege preclude
any other or further exercise of the same or of any other right, remedy, power, or privilege, nor shall any waiver of any right,
remedy, power, or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power, or privilege
with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted
to have granted such waiver.

 

[Signatures
appear on the following page.]

 

     

     

    

 

IN
WITNESS WHEREOF, the parties have caused this Agreement to be signed by their respective officers thereunto duly authorized,
as of the day and year first above written. 

 

		CNL STRATEGIC CAPITAL, LLC
	 	 	 
	 	By:	 /s/ Chirag J. Bhavsar	 
	 	Name:	Chirag J. Bhavsar
	 	Title:	Chief Executive Officer

 

	 	CNL STRATEGIC CAPITAL MANAGEMENT,
    LLC
	 	 	 
	 	By:	 /s/ Chirag J. Bhavsar	 
	 	Name:	Chirag J. Bhavsar
	 	Title:	 Chief Executive Officer

 

	 	LEVINE LEICHTMAN STRATEGIC CAPITAL,
    LLC
	 	 	 
	 	By:	 	 /s/
    David I. Wolmer	 
	 	Name:	 	 	David I. Wolmer	 
	 	Title:	 	 	Authorized Person	 

 

     

     

    

 

Exhibit
A

 

Distribution
– shall have the meaning ascribed to such term in Section 2.2 of the Operating Agreement, net of
distributions reinvested pursuant to the Company’s Distribution Reinvestment Plan, provided, that Distribution shall
not include Special Dividends and Distributions. For purposes of this Agreement, the term “Distribution” shall
not include any amount that exceeds a 5% annualized (based on a 365-day year) rate of cash distributions per share, based on
a price of $25.00 per share. For the avoidance of doubt, Effective Distributions Per Share shall be calculated based on
Distributions excluding any amount that exceeds a 5% annualized (based on a 365-day year) rate of cash distributions per
share exclusive of declared Special Dividends and distributions, if any, as described above.

 

     

     

    

 

Exhibit
B

 

Examples
of Expense Support Amount 

(for
illustrative purposes only)CNL Strategic Capital, LLC S-1

Exhibit
10.7

 

FORM
OF INDEMNIFICATION AGREEMENT

 

THIS
INDEMNIFICATION AGREEMENT (the “Agreement”) is made and entered into as of the _____ day of June, 2017, by and among
CNL Strategic Capital, LLC, a Delaware limited liability company (the “Company”) and , a director and/or officer
of the Company (the “Indemnitee”).

 

WITNESSETH:

 

WHEREAS,
damages sought against directors and officers in shareholder or similar litigation by class action plaintiffs may be substantial,
and the costs of defending such actions and of judgments in favor of plaintiffs or of settlement therewith may be prohibitive
for individual directors and officers, without regard to the merits of a particular action and without regard to the culpability
of, or the receipt of improper personal benefit by, any named director or officer to the detriment of the corporation; and

 

WHEREAS,
the issues in controversy in such litigation usually relate to the knowledge, motives and intent of the director or officer, who
may be the only person with firsthand knowledge of essential facts or exculpating circumstances who is qualified to testify in
his defense regarding matters of such a subjective nature, and the long period of time which may elapse before final disposition
of such litigation may impose undue hardship and burden on a director or officer or his estate in launching and maintaining a
proper and adequate defense of himself or his estate against claims for damages; and

 

WHEREAS,
the Company is organized pursuant to, and in accordance with, the Delaware Limited Liability Company Act (6 Del. C. § 18-101
et seq.), as amended from time to time (the “Act”) by the filing of a Certificate of Formation of the
Company with the Secretary of State of the State of Delaware; and

 

WHEREAS,
pursuant to 6 Del. C. § 18-108 Indemnification, subject to such standards and restrictions, if any, as are set forth in the
Company’s limited liability company agreement, a limited liability company may, and shall have the power to, indemnify and
hold harmless any member or manager or other person from and against any and all claims and demands whatsoever; and

 

WHEREAS,
Article XVI of the Amended and Restated Limited Liability Company Agreement, as they may be amended or amended and restated from
time to time (the “LLC Agreement), provides that the Company may indemnify and hold harmless directors, officers, employees,
tax matters partner or agent of the Company, as such terms are defined in the LLC Agreement; and

 

    

     

    

 

WHEREAS,
the Board of Directors of the Company (the “Board”) has concluded that it is advisable and in the best interests of
the Company to enter into an agreement to indemnify in a reasonable and adequate manner the Indemnitee and to assume for itself
liability for expenses and damages in connection with claims lodged against the Indemnitee for the Indemnitee’s decisions
and actions as a director and/or officer of the Company or any of its Subsidiaries, or as an officer of CNL Strategic Capital
Management, LLC, a Delaware limited liability company and advisor to the Company (the “Manager”) or Levine Leichtman
Strategic Capital, LLC (the “Sub-Manager” and collectively with such Subsidiaries, the “Affiliates”).

 

NOW,
THEREFORE, in consideration of the foregoing, and of other good and valuable consideration, the receipt and sufficiency of which
is acknowledged by each of the parties hereto, the parties agree as follows:

 

I.
DEFINITIONS

 

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

 

A.       “Board”
shall have the meaning set forth in the Recitals hereof.

 

B.        “Change
in Control” shall mean a change in the possession, directly or indirectly, of the power to direct or cause the direction
of the management and policies of the Company, or any successor in interest thereto, whether through the ownership of Voting Securities,
by contract or otherwise, including but not limited to a change which would be required to be reported under Item 6(e) of Schedule
14A of Regulation 14A promulgated under the Securities Exchange Act of 1934 as in effect on the date hereof (the “Exchange
Act”) or as may otherwise be determined pursuant to a resolution of the Board.

 

C.        “Corporate
Status” shall mean: (i) the status of a person who is or was a director or officer of the Company or any of the Affiliates,
or a member of any committee of the Board; and (ii) the status of a person who, while a director or officer of the Company, is
or was serving at the request of the Company as a director, officer, partner (including service as a general partner of any limited
partnership), trustee, employee, or agent of another foreign or domestic corporation, partnership, joint venture, trust, other
incorporated or unincorporated entity or enterprise or employee benefit plan.

 

D.        “Disinterested
Director” shall mean a director of the Company who neither is nor was a party to the Proceeding with respect to which
indemnification and/or advance of Expenses is being sought by the Indemnitee.

 

E.        “Effective
Date” means the date set forth in the first paragraph of this Agreement.

 

     

     

    

 

F.        “Expenses”
shall mean expenses of Proceedings including, without limitation, all attorneys’ fees, retainers, court costs, transcript
costs, fees of experts, investigation fees and expenses, accounting and witness fees, travel expenses, duplicating costs, printing
and binding costs, telephone charges, postage, delivery service fees, federal, state, local or foreign taxes imposed on Indemnitee
as a result of the actual or deemed receipt of any payments under this Agreement, and all other disbursements or expenses of the
types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, being or preparing to
be a witness in or investigating a Proceeding. Expenses shall also include Expenses incurred in connection with any appeal resulting
from any Proceeding including, without limitation, the premium, security for and other costs relating to any cost bond, supersedeas
bond or other appeal bond or its equivalent.

 

G.        “Good
Faith Act or Omission” shall mean an act or omission of the Indemnitee reasonably believed by the Indemnitee to be in
the best interests of the Company and not: (i) one involving negligence or misconduct, or, if the Indemnitee is an independent
director, one involving gross negligence or willful misconduct; (ii) one that was material to the loss or liability and that was
committed in bad faith or that was the result of active or deliberate dishonesty; (iii) one from which the Indemnitee actually
received an improper personal benefit in money, property or services; or (iv) in the case of a criminal Proceeding, one as to
which the Indemnitee had cause to believe his or her conduct was unlawful.

 

H.        “Liabilities”
shall mean liabilities of any type whatsoever, including, without limitation, any judgments, fines, excise taxes and penalties
under the Employee Retirement Income Security Act of 1974, as amended, penalties and amounts paid in settlement (including all
interest, assessments and other charges paid or payable in connection with or with respect to such judgments, fines, penalties
or amounts paid in settlement) in connection with the investigation, defense, settlement or appeal of any Proceeding or any claim,
issue or matter therein.

 

H.       “Proceeding”
shall mean any threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation,
inquiry, administrative hearing or any other actual, threatened or completed proceeding whether civil, criminal, administrative
or investigative, or any appeal therefrom, except one pending or completed on or before the Effective Date, unless otherwise specifically
agreed in writing by the Company and Indemnitee. If Indemnitee reasonably believes that a given situation may lead to or culminate
in the institution of a Proceeding, such situation shall also be considered a Proceeding.

 

I.         “Trust”
shall have the meaning ascribed to it in Article IX herein.

 

J.         “Trustee”
shall have the meaning ascribed to it in Article IX herein.

 

K.       “Subsidiary”
shall mean any corporation, limited liability company, partnership, business trust or other entity of which the Company, directly
or indirectly, owns or controls at least fifty percent (50%) of the voting securities or economic interests.

 

L.        “Undertakings”
shall have the meaning ascribed to it in Article V herein.

 

     

     

    

 

M.       “Voting
Securities” shall mean any securities of the Company that are entitled to vote generally in the election of directors.

 

II.
TERMINATION OF AGREEMENT

 

This
Agreement shall continue until and terminate on the later of (i) the date that Indemnitee shall have ceased to serve as a director,
officer, employee or agent of the Company or as a director, trustee, officer, partner, manager, managing member, fiduciary, employee
or agent of any other foreign or domestic corporation, real estate investment trust, partnership, limited liability company, joint
venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of
the Company and (ii) the date that Indemnitee is no longer subject to any actual or possible Proceeding (including any rights
of appeal thereto and any Proceeding commenced by Indemnitee pursuant to Section 12 of this Agreement).

 

III.
SERVICE BY INDEMNITEE, NOTICE OF 

PROCEEDINGS, DEFENSE OF CLAIMS

 

A.       Notice
of Proceedings. The Indemnitee agrees to notify the Company promptly in writing upon being served with any summons, citation,
subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification
or advancement of Expenses covered hereunder. However, the Indemnitee’s failure to so notify the Company shall not relieve
the Company from any liability it may have to the Indemnitee under this Agreement, except to the extent that the Indemnitee’s
failure to so notify the Company materially prejudices the Company with respect to said Proceeding or matter.

 

B.        Defense
of Claims. The Company will be entitled to participate, at its own expense, in any Proceeding of which it has notice. The
Company jointly with any other indemnifying party similarly notified of any Proceeding will be entitled to assume the defense
of the Indemnitee therein, with counsel reasonably satisfactory to the Indemnitee; provided, however, that the Company shall not
be entitled to assume the defense of the Indemnitee in any Proceeding if there has been a Change in Control or if the Indemnitee
has reasonably concluded that there may be a conflict of interest between the Company and the Indemnitee with respect to such
Proceeding. The Company will not be liable to the Indemnitee under this Agreement for any Expenses incurred by the Indemnitee
in connection with the defense of any Proceeding, other than reasonable costs of investigation or as otherwise provided below,
after notice from the Company to the Indemnitee of its election to assume the defense of the Indemnitee therein. The Indemnitee
shall have the right to employ his own counsel in any such Proceeding, but the fees and expenses of such counsel incurred after
notice from the Company of its assumption of the defense thereof shall be at the expense of the Indemnitee unless (i) the employment
of counsel by the Indemnitee has been authorized by the Company; (ii) the Indemnitee shall have reasonably concluded that counsel
employed by the Company may not adequately represent the Indemnitee and shall have so informed the Company; or (iii) the Company
shall not in fact have employed counsel to assume the defense of the Indemnitee in such Proceeding, such counsel shall not in
fact have assumed such defense or such counsel shall not be acting, in connection therewith, with reasonable diligence. In each
such case the fees and expenses of the Indemnitee’s counsel shall be advanced by the Company in accordance with this Agreement.

 

     

     

    

 

C.        Settlement
of Claims. The Company shall not settle any Proceeding in any manner which would impose any liability, penalty or limitation
on the Indemnitee without the written consent of the Indemnitee, which consent shall not be unreasonably withheld or delayed.
The Company shall not be liable to indemnify the Indemnitee under this Agreement or otherwise for any amounts paid in settlement
of any Proceeding effected by the Indemnitee without the Company’s written consent, which consent shall not be unreasonably
withheld or delayed.

 

IV.
INDEMNIFICATION

 

A.       In
General. Upon the terms and subject to the conditions set forth in this Agreement, the Company shall hold harmless and indemnify
the Indemnitee against any and all Liabilities actually incurred by or for him or her in connection with any Proceeding (whether
the Indemnitee is or becomes a party, a witness or is otherwise a participant in any role) to the fullest extent required or permitted
by the Act and the LLC Agreement. For all matters for which the Indemnitee is entitled to indemnification under this Article IV,
the Indemnitee shall be entitled to advancement of Expenses in accordance with Article V hereof.

 

B.        Proceeding
Other Than a Proceeding by or in the Right of the Company. If the Indemnitee, by reason of his or her Corporate Status or
alleged action or inaction in such capacity, was or is a party or is threatened to be made a party to any Proceeding (whether
the Indemnitee is or becomes a party, a witness or is otherwise a participant in any role) (other than a Proceeding by or in the
right of the Company or any Affiliate), the Company shall, subject to the limitations set forth in Section IV.F below, hold harmless
and indemnify the Indemnitee against any and all Expenses and Liabilities actually and reasonably incurred by or for the Indemnitee
in connection with the Proceeding, if the act(s) or omission(s) of the Indemnitee giving rise thereto were Good Faith Act(s) or
Omission(s).

 

C.        Proceedings
by or in the Right of the Company. If the Indemnitee, by reason of his or her Corporate Status or alleged action or inaction
in such capacity, was or is a party or is threatened to be made a party to any Proceeding (whether the Indemnitee is or becomes
a party, a witness or otherwise is a participant in any role) by or in the right of the Company or any Affiliate to procure a
judgment in its favor, the Company shall, subject to the limitations set forth in Section IV.F below, hold harmless and indemnify
the Indemnitee against any and all Expenses actually incurred by or for the Indemnitee in connection with the investigation, defense,
settlement or appeal of such Proceeding, if the act(s) or omission(s) of the Indemnitee giving rise to the Proceeding were Good
Faith Act(s) or Omission(s). However, no indemnification under this Section IV.C shall be made with respect to any claim, issue
or matter as to which the Indemnitee shall have been finally judicially determined in a non-appealable judgment to be liable to
the Company or any Affiliate, unless a court of appropriate jurisdiction (including, but not limited to, the court in which such
Proceeding was brought) determines upon application that, despite the adjudication of liability but in view of all the circumstances
of the case, regardless of whether the Indemnitee’s act(s) or omission(s) were found to be a Good Faith Act(s) or Omission(s),
the Indemnitee is fairly and reasonably entitled to indemnification for such Expenses, which such court shall deem proper.

 

     

     

    

 

D.        Indemnification
of a Party Who is Wholly or Partly Successful. Notwithstanding any other provision of this Agreement, to the extent that the
Indemnitee is, by reason of the Indemnitee’s Corporate Status, a party to and is successful in, on the merits or otherwise,
any Proceeding, the Indemnitee shall be indemnified by the Company to the maximum extent consistent with the Act and the LLC Agreement
against all Expenses and Liabilities actually incurred by or for him or her in connection therewith. If the Indemnitee is not
wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims,
issues or matters in such Proceeding, the Company shall hold harmless and indemnify the Indemnitee to the maximum extent consistent
with the Act and the LLC Agreement against all Expenses and Liabilities actually and reasonably incurred by or for the Indemnitee
in connection with each successfully resolved claim, issue or matter in such Proceeding. Resolution of a claim, issue or matter
by dismissal, with or without prejudice, but except as provided in Section IV.F hereof, shall be deemed a successful result as
to such claim, issue or matter so long as there has been no finding (either adjudicated or pursuant to Article VI hereof) that
the act(s) or omission(s) of the Indemnitee giving rise thereto were not a Good Faith Act(s) or Omission(s).

 

E.        Indemnification
for Expenses as Witness. Notwithstanding any other provision of this Agreement, to the extent that the Indemnitee, by reason
of the Indemnitee’s Corporate Status, has prepared to serve or has served as a witness in any Proceeding, or has participated
in discovery proceedings or other trial preparation, the Indemnitee shall be held harmless and indemnified against all Expenses
actually and reasonably incurred by or for him or her in connection therewith.

 

F.        Specific
Limitations on Indemnification. In addition to the other limitations set forth in this Article IV and notwithstanding anything
in this Agreement to the contrary, the Company shall not be obligated under this Agreement to make any payment to the Indemnitee
for indemnification with respect to any Proceeding:

 

1.       To
the extent that payment is actually made to the Indemnitee under any insurance policy or is made on behalf of the Indemnitee by
or on behalf of the Company otherwise than pursuant to this Agreement.

 

2.       If
a court in such Proceeding has entered a judgment or other adjudication which is final and has become non-appealable and establishes
that a claim of the Indemnitee for such indemnification arose from: (i) a breach by the Indemnitee of the Indemnitee’s duty
of loyalty to the Company or its shareholders; (ii) acts or omissions of the Indemnitee for which the Indemnitee did not reasonably
believe to be in or not opposed to the best interests of the Company or the Affiliates and was: (a) an act or omission involving
negligence or misconduct, or, if the Indemnitee is an independent director, an act or omission involving gross negligence or willful
misconduct, or (b) an act or omission that was material to the loss or liability and that was committed in bad faith or that was
the result of active and deliberate dishonesty; (iii) acts or omissions of the Indemnitee which the Indemnitee had reasonable
cause to believe were unlawful; or (iv) a transaction in which the Indemnitee actually received an improper personal benefit in
money, property or services.

 

     

     

    

 

3.       If
there has been no Change in Control, for Liabilities in connection with Proceedings settled without the consent of the Company,
which consent shall not have been unreasonably withheld.

 

4.       For
any loss or liability arising from an alleged violation of federal or state securities laws unless one or more of the following
conditions are met: (i) there has been a successful adjudication in favor of the Indemnitee on the merits of each count involving
alleged securities law violations as to the Indemnitee; (ii) such claims have been dismissed with prejudice on the merits by a
court of competent jurisdiction as to the Indemnitee; or (iii) a court of competent jurisdiction approves a settlement of the
claims against the Indemnitee, finds that indemnification of the settlement and the related costs should be made, and has been
advised of the position on indemnification for violations of securities laws of (A) the Securities and Exchange Commission and
(B) any state securities regulatory authority in which securities of the Company were offered or sold.

 

5.       If
such Indemnitee is a party to such Proceeding by reason of his or her status as an officer of director of the Manager or the Sub-Manager
and such Proceeding is brought by a member of the Manager or the Sub-Manager against such Indemnitee arising from claims solely
related to the relationship of the members as members of the Manager or the Sub-Manager.

 

V.
ADVANCEMENT OF EXPENSES

 

Notwithstanding
any provision to the contrary in Article VI hereof, the Company shall advance to the Indemnitee all Expenses which, by reason
of the Indemnitee’s Corporate Status, were incurred by or for the Indemnitee in connection with any Proceeding for which
the Indemnitee is entitled to indemnification pursuant to Article IV hereof, in advance of the final disposition of such Proceeding,
provided that all of the following are satisfied: (i) the Indemnitee was made a party to the proceeding by reason of Indemnitee’s
Corporate Status; (ii) the Indemnitee provides the Company with written affirmation of the Indemnitee’s good faith belief
that the Indemnitee has met the standard of conduct necessary for indemnification by the Company pursuant to Article IV hereof;
(iii) the Indemnitee provides the Company with a written agreement (the “Undertaking”) to repay the amount paid or
reimbursed by the Company, together with the applicable legal rate of interest thereon, if it is ultimately determined that the
Indemnitee is not entitled to indemnification; and (iv) the Proceeding is initiated by a third party who is not a Member, or the
Proceeding is initiated by a Member and a count of competent jurisdiction specifically approves such advancement. The Indemnitee
shall be required to execute and submit the Undertaking to repay Expenses Advanced in the form of Exhibit A attached hereto or
in such form as may be required under applicable law as in effect at the time of execution thereof. The Undertaking shall reasonably
evidence the Expenses incurred by or for the Indemnitee and shall contain the written affirmation by the Indemnitee, described
above, of the Indemnitee’s good faith belief that the standard of conduct necessary for indemnification has been met. The
Company shall advance such expenses within five (5) business days after its receipt of the Undertaking. The Indemnitee hereby
agrees to repay any Expenses advanced hereunder if it is ultimately determined that the Indemnitee is not entitled to be indemnified
against such Expenses. Any advances and the undertaking to repay pursuant to this Article V shall be unsecured.

 

     

     

    

 

VI.
PROCEDURE FOR PAYMENT OF LIABILITIES;

DETERMINATION OF RIGHT TO INDEMNIFICATION

 

A.       Procedure
for Payment. To obtain indemnification for Liabilities under this Agreement, the Indemnitee shall submit to the Company a
written request for payment, including with such request such documentation as is reasonably available to the Indemnitee and reasonably
necessary to determine whether and to what extent the Indemnitee is entitled to indemnification and payment hereunder. The Secretary
of the Company, or such other person as shall be designated by the Board, shall promptly advise the Board in writing of such request
for indemnification. Any indemnification payment due hereunder shall be paid by the Company no later than five (5) business days
following the determination, pursuant to this Article VI, that such indemnification payment is proper hereunder.

 

B.        No
Determination Necessary when the Indemnitee was Successful. To the extent the Indemnitee has been successful, on the merits
or otherwise, in defense of any Proceeding referred to in Sections IV.B or IV.C above or in the defense of any claim, issue or
matter described therein, the Company shall indemnify the Indemnitee against Expenses actually and reasonably incurred by or for
the Indemnitee in connection with the investigation, defense or appeal of such Proceeding.

 

C.        Determination
of Good Faith Act or Omission. In the event that Section VI.B above is inapplicable, the Company shall also hold harmless
and indemnify the Indemnitee unless the Company proves by clear and convincing evidence to a forum listed in Section VI.D below
that the act(s) or omission(s) of the Indemnitee giving rise to the Proceeding were not Good Faith Act(s) or Omission(s).

 

D.        Forum
for Determination. The Indemnitee shall be entitled to select from among the following the forums in which the validity of
the Company’s claim under Section VI.C above that the Indemnitee is not entitled to indemnification will be heard:

 

1.       A
majority of the Disinterested Directors, or, if there are fewer than three (but at least one) Disinterested Directors, all of
the Disinterested Directors;

 

2.       The
shareholders of the Company;

 

3.       Legal
counsel selected by the Indemnitee, subject to the approval of the Board, which approval shall not be unreasonably delayed or
denied and which counsel shall make such determination in a written opinion; or

 

4.       A
panel of three arbitrators, one of whom is selected by the Company, another of whom is selected by the Indemnitee and the last
of whom is selected jointly by the first two arbitrators so selected.

 

     

     

    

 

As
soon as practicable, and in no event later than thirty (30) days after written notice of the Indemnitee’s choice of forum
pursuant to this Section VI.D, the Company shall, at its own expense, submit to the selected forum its claim that the Indemnitee
is not entitled to indemnification, and the Company shall act in the utmost good faith to give the Indemnitee a complete opportunity
to defend against such claim. The fees and expenses of the forum selected in connection with making the determination contemplated
hereunder shall be paid by the Company. If the Company fails to submit the matter to the selected forum within thirty (30) days
of the Indemnitee’s written notice or if the selected forum fails to make the requested determination within thirty (30)
days of the matter being submitted to it by the Company, the determination that the Indemnitee has the right to indemnification
will be made.

 

E.        Right
to Appeal. Notwithstanding a determination by any forum listed in Section VI.D above that the Indemnitee is not entitled to
indemnification with respect to a specific Proceeding, the Indemnitee shall have the right to apply to the court in which that
Proceeding is or was pending, or to any other court of competent jurisdiction, for the purpose of enforcing the Indemnitee’s
right to indemnification pursuant to this Agreement. Such enforcement action shall consider the Indemnitee’s entitlement
to indemnification de novo, and the Indemnitee shall not be prejudiced by reason of a prior determination that the Indemnitee
is not entitled to indemnification. The Company shall be precluded from asserting that the procedures and presumptions of this
Agreement are not valid, binding and enforceable. The Company further agrees to stipulate in any such judicial proceeding that
the Company is bound by all the provisions of this Agreement and is precluded from making any assertion to the contrary.

 

F.        Right
to Seek Judicial Determination. Notwithstanding any other provision of this Agreement to the contrary, at any time sixty (60)
days after a request for indemnification has been made to the Company (or upon earlier receipt of written notice that a request
for indemnification has been rejected) and before the third (3rd) anniversary of the making of such indemnification request, the
Indemnitee may petition a court of competent jurisdiction, regarding whether the court has jurisdiction over or is the forum in
which the Proceeding is pending, to determine whether the Indemnitee is entitled to indemnification hereunder, and such court
shall have the exclusive authority to make such determination, unless and until the Indemnitee’s action is dismissed or
otherwise terminated before such determination is made. The court, as petitioned, shall make an independent determination of whether
the Indemnitee is entitled to indemnification hereunder, without regard to any prior determination in any other forum.

 

G.        Expenses
under this Agreement. Notwithstanding any other provision in this Agreement to the contrary, the Company shall indemnify the
Indemnitee against all Expenses incurred by the Indemnitee in connection with any hearing or proceeding under this Article VI
involving the Indemnitee and against all Expenses incurred by the Indemnitee in connection with any other action between the Company
and the Indemnitee involving the interpretation or enforcement of the rights of the Indemnitee under this Agreement, even if it
is finally determined that the Indemnitee is not entitled to indemnification in whole or in part hereunder.

 

     

     

    

 

VII.
PRESUMPTIONS AND EFFECT

OF CERTAIN PROCEEDINGS

 

A.       Burden
of Proof. In making a determination with respect to entitlement to indemnification hereunder, the person, persons, entity
or entities making such determination shall presume that the Indemnitee is entitled to indemnification under this Agreement and
the Company shall have the burden of proof of overcoming that presumption.

 

B.        Effect
of Other Proceedings. The termination of any Proceeding or any claim, issue or matter therein by judgment, order or settlement
shall not create a presumption that the act(s) or omission(s) giving rise to the Proceeding were not Good Faith Act(s) or Omission(s).
The termination of any Proceeding by conviction, upon a plea of nolo contendere, or its equivalent, or an entry of an order of
probation prior to judgment, shall create a rebuttable presumption that the act(s) or omission(s) of the Indemnitee giving rise
to the Proceeding were not Good Faith Act(s) or Omission(s).

 

C.        Reliance
as Safe Harbor. For the purposes of any determination of whether any act or omission of the Indemnitee was a Good Faith Act
or Omission, each act of the Indemnitee shall be deemed to be a Good Faith Act or Omission if the Indemnitee’s action is
based on the records or books of accounts of the Company, including financial statements, on information supplied to the Indemnitee
by the officers of the Company in the course of their duties, on the advice of legal counsel for the Company or the independent
directors or any committee thereof, or on information or records given or reports made to the Company by an independent certified
public accountant or by an appraiser or other expert selected with reasonable care by the Company. The provisions of this Section
VII.C shall not be exclusive or deemed to limit in any way the other circumstances in which the Indemnitee may be deemed to have
met the applicable standard of conduct set forth in this Agreement or under applicable law.

 

D.        Actions
of Others. The knowledge and/or actions or failure to act of any director, officer, agent or employee of the Company shall
not be imputed to the Indemnitee for the purposes of determining the right to indemnification under this Agreement.

 

VIII.
INSURANCE

 

In
the event that the Company maintains officers’ and directors’ or similar liability insurance to protect itself and
any director or officer of the Company against any expense, liability or loss, such insurance shall cover the Indemnitee to at
least the same degree as each other director and/or officer of the Company.

 

IX.
OBLIGATIONS OF THE COMPANY

UPON A CHANGE IN CONTROL

 

In
the event of a Change in Control and upon written request of the Indemnitee, the Company shall establish a trust for the benefit
of the Indemnitee hereunder (a “Trust”), and from time to time and upon written request from the Indemnitee, shall
fund the Trust in an amount sufficient to satisfy all amounts actually paid hereunder as indemnification for Liabilities or Expenses
(including those paid in advance) or which the Indemnitee reasonably determines and demonstrates, from time to time, may be payable
by the Company hereunder. The amount or amounts to be deposited in the Trust shall be determined by legal counsel selected by
the Indemnitee and approved by the Company, which approval shall not be unreasonably withheld. The terms of the Trust shall provide
that: (i) the Trust shall not be dissolved or the principal thereof invaded without the written consent of the Indemnitee; (ii)
the trustee of the Trust (the “Trustee”) shall be selected by the Indemnitee; (iii) the Trustee shall make advances
to the Indemnitee for Expenses within ten (10) business days following receipt of a written request therefor (and the Indemnitee
hereby agrees to reimburse the Trust under the circumstances under which the Indemnitee would be required to reimburse the Company
under Article V hereof); (iv) the Company shall continue to fund the Trust from time to time in accordance with its funding obligations
hereunder; (v) the Trustee shall promptly pay to the Indemnitee all amounts as to which indemnification is due under this Agreement;
(vi) unless the Indemnitee agrees otherwise in writing, the Trust for the Indemnitee shall be kept separate from any other trust
established for any other person to whom indemnification might be owed by the Company; and (vii) all unexpended funds in the Trust
shall revert to the Company upon final, nonappealable determination by a court of competent jurisdiction that the Indemnitee has
been indemnified to the full extent required under this Agreement.

 

     

     

    

 

X.
NON-EXCLUSIVITY,

SUBROGATION AND MISCELLANEOUS

 

A.       Non-Exclusivity.
The rights of the Indemnitee hereunder shall not be deemed exclusive of any other rights to which the Indemnitee may at any time
be entitled under any provision of the Act and the LLC Agreement of the Company, as the same may be in effect from time to time,
any agreement, a vote of shareholders of the Company or a resolution of directors of the Company or otherwise. To the extent that,
during the term of this Agreement, the rights of the then-existing directors and officers of the Company are more favorable to
such directors or officers than the rights currently provided to the Indemnitee under this Agreement, the Indemnitee shall be
entitled to the full benefits of those more favorable rights.

 

No
amendment, alteration, rescission or replacement of this Agreement or any provision hereof that would limit in any way the benefits
and protections afforded to an Indemnitee by this Agreement shall be effective as to an Indemnitee with regards to any action
or inaction undertaken by such Indemnitee in the Indemnitee’s Corporate Status prior to such amendment, alteration, rescission
or replacement.

 

B.        Subrogation.
In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the
rights of recovery of the Indemnitee, who shall execute all required documents and take all action necessary to secure such rights,
including execution of documents necessary to enable the Company to bring suit to enforce such rights.

 

     

     

    

 

C.        Notices.
All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given:
(i) if delivered by hand, by courier or by telegram and receipted for by the party to whom such notice or other communication
was directed at the time indicated on such receipt; (ii) if by facsimile at the time shown on the confirmation of such facsimile
transmission; or (iii) if by U.S. certified or registered mail, with postage prepaid, on the third business day after the date
on which it is so mailed:

 

If
to the Indemnitee, as shown with the Indemnitee’s signature below.

 

If
to the Company to:

 

CNL
Strategic Capital, LLC

 

450
South Orange Avenue

Orlando,
FL 32801

Attention:
Holly J. Greer, General Counsel

Facsimile
No.: 407-540-2699

 

With
copies to:

 

CNL
Strategic Capital Management, LLC

 

c/o
CNL Financial Group, LLC

450
South Orange Avenue

Orlando,
FL 32801

Attention:
Office of General Counsel

Facsimile
No.: (407) 540-2699

 

or
to such other address as may have been furnished to the Indemnitee by the Company or to the Company by the Indemnitee, as the
case may be.

 

D.        Governing
Law. The parties agree that this Agreement shall be governed by, construed and enforced in accordance with the internal laws
of the State of Delaware, without application of the conflict of laws principles thereof.

 

E.        Binding
Effect. Except as otherwise provided in this Agreement, this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their heirs, executors, administrators, successors, legal representatives and permitted assigns. The Company
shall require any successor or assignee (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of its respective assets or business and by written agreement in form and substance reasonably satisfactory
to the Indemnitee, to expressly assume and agree to be bound by and perform this Agreement in the same manner and to the same
extent as the Company would be required to perform absent such succession or assignment.

 

F.        Waiver.
No termination, cancellation, modification, amendment, deletion, addition or other change in this Agreement or any provision hereof,
or waiver of any right or remedy herein, shall be effective for any purpose unless specifically set forth in a writing signed
by the party or parties to be bound thereby. The waiver of any right or remedy with respect to any occurrence on one occasion
shall not be deemed a waiver of such right or remedy with respect to such occurrence on any other occasion.

 

     

     

    

 

G.        Entire
Agreement. This Agreement constitutes the entire agreement and understanding among the parties hereto in reference to the
subject matter hereof; provided, however, that the parties acknowledge and agree that the Amended and Restated Limited Liability
Company Agreement of the Company contain provisions on the subject matter hereof and that this Agreement is not intended to, and
does not, limit the rights or obligations of the parties hereto pursuant to such instruments. This Agreement supersedes any prior
agreement entered into between the parties with respect to the subject matter hereof.

 

H.        Titles.
The titles to the articles and sections of this Agreement are inserted for convenience only and should not be deemed a part hereof
or affect the construction or interpretation of any provisions hereof.

 

I.         Invalidity
of Provisions. Every provision of this Agreement is severable, and the invalidity or unenforceability of any term or provision
shall not affect the validity or enforceability of the remainder of this Agreement.

 

J.         Pronouns
and Plurals. Where applicable, any pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter
forms, and the singular form of nouns, pronouns and verbs shall include the plural and vice versa.

 

K.        Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together
constitute one agreement binding on all the parties hereto.

 

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

 

	 	CNL STRATEGIC CAPITAL, LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By:	 
	 	Name:	
	 	Title:	Chief Executive Officer
	 	 	 
	 	 	 	, as INDEMNITEE
	 	Name:	
	 	Address:	
	 	 	

 

     

     

    

 

EXHIBIT
A

 

FORM
OF UNDERTAKING TO REPAY EXPENSES ADVANCED

 

The
Board of Directors of CNL Strategic Capital, LLC

 

		Re:	Undertaking
                                         to Repay Expenses Advanced

 

Ladies
and Gentlemen:

 

The
undertaking is being provided pursuant to that certain Indemnification Agreement dated the ____ day of __________, 20__, by and
between CNL Strategic Capital LLC and the undersigned Indemnitee (the “Indemnification Agreement”), pursuant to which
I am entitled to advancement of expenses in connection with [Description of Proceeding] (the “Proceeding”). Terms
used herein and not otherwise defined shall have the meanings specified in the Indemnification Agreement.

 

I
am subject to the Proceeding by reason of my Corporate Status or by reason of alleged actions or omissions by me in such capacity.
During the period of time to which the Proceeding relates I was — [name of office(s) held] of CNL Strategic Capital, LLC.
Pursuant to Article IV of the Indemnification Agreement, the Company is obligated to reimburse me for Expenses that are actually
and reasonably incurred by or for me in connection with the Proceeding, provided that I execute and submit to the Company an Undertaking
in which I: (i) undertake to repay any Expenses paid by the Company on my behalf, together with the applicable legal rate of interest
thereon, if it shall be ultimately determined that I am not entitled to be indemnified thereby against such Expenses; (ii) affirm
my good faith belief that I have met the standard of conduct necessary for indemnification; and (iii) reasonably evidence the
Expenses incurred by or for me.

 

[Description
of expenses incurred by or for Indemnitee]

 

The
letter shall constitute my undertaking to repay to the Company any Expenses paid by it on my behalf, together with the applicable
legal rate of interest thereon, in connection with the Proceeding if it is ultimately determined that I am not entitled to be
indemnified with respect to such Expenses as set forth above. I hereby affirm my good faith belief that I have met the standard
of conduct necessary for indemnification and that I am entitled to such indemnification.

	 	 
	 	[Name]
	 	 
	 	[Date]

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