Document:

Exhibit 10.1

 

AGREEMENT

 

This Agreement (“Agreement”) is made this 9th day of May 2016, by Michael V Marrale (“Employee”, “I” or “me”, as used herein).

 

In connection with the sale of ITG Investment Research, LLC (“ITG IR”) to Leucadia National Corporation or one of its wholly owned subsidiaries (the “Purchaser”), Investment Technology Group, Inc.  (“ITG”) has agreed to compensate, subject to the conditions described herein, Employee for (a) Employee’s unvested Restricted Stock Units (“RSU’s”) of ITG that Employee will, upon and following consummation of such sale and termination of employment with ITG Inc., forfeit and (b) the 2016 bonus to which  the Employee will, upon and following consummation of such sale and termination of employment with ITG Inc., cease to be entitled.  For the avoidance of doubt and for purposes of this Agreement, the Employee’s termination of employment with ITG Inc. is contingent on and subject to his commencing employment with the Purchaser or one of its affiliates on the Closing Date.  If Employee executes and returns this Agreement to ITG, subject to the terms in this Agreement, remains an employee in Good Standing of ITG Inc. until the effective time of the closing on the closing date of the sale (the “Closing Date”) and commences employment with the Purchaser or one of its affiliates on the Closing Date, then ITG will, or will cause one of its affiliates to, pay Employee the total amount of $1,915,362.40 for the RSU’s and in respect of the 2016 bonus to which the Employee would not otherwise be entitled, net of applicable income and employment taxes (the “Proceeds”). The Proceeds will be paid to Employee in cash no later than 15 days after the  Closing Date and are subject to repayment by Employee to ITG IR (or any successor thereto) under the conditions set forth below.  A further condition of ITG’s obligation to pay the Proceeds is the closing of the sale pursuant to the material terms as currently reflected in the Membership Interests Purchase Agreement, dated as of May 9, 2016, by and among Investment Technology Group, Inc., ITG Solutions Network, Inc., Leucadia National Corporation and M Science Holdings LLC.

 

For good and valuable consideration in receiving the Proceeds, I hereby agree to the following terms and conditions pursuant to which I will receive payment of the Proceeds:

 

I.                Repayment of the Proceeds

 

1.              I shall repay immediately to ITG IR (or any successor thereto) the gross, pre-withholding amount of the Proceeds in accordance with the schedule below if: (a) I give notice of my intent to resign and engage in Competitive Activity (as defined below); (b) even if I resign and do not immediately engage in Competitive Activity, I later engage in Competitive Activity during the period prior to the anniversary dates set forth in the schedule below; or (c) the Purchaser or one of its affiliates (the Purchaser together with its affiliates, collectively the “Company”) terminates my employment for Cause.

 

	
On or prior to the   first anniversary of the Closing Date
    	
 
    	
100%
    	
 
    
	
After the first anniversary of the Closing Date and   on or prior to the second anniversary
    	
 
    	
50%
    	
 
    
	
After the second anniversary of the Closing Date
    	
 
    	
Zero
    	
 
    

 

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2.              If the Company terminates my employment without Cause on or prior to the anniversary dates set forth in the schedule above, I will not be required to repay any unvested portion of the Proceeds if I sign (and do not revoke, if applicable) a release agreement in the form requested by the Company.  Any restrictive covenants in the release agreement will be no more restrictive than those contained in my employment agreement.

 

II.           Notice of Resignation and Competitive Activity

 

1.              If I resign or give notice of my intent to resign on or prior to the anniversary dates set forth in Section I.1, I will advise the Company in my letter of resignation of the name of the employer or entity I intend to join.  If I do not provide this information to the Company within five (5) business days, I will repay the Proceeds as if I had engaged in Competitive Activity.  Further, I will keep the Company apprised of changes to my contact information or the identity of my employer during the period prior to the anniversary dates set forth in the schedule set forth in Section I.1.

 

2.              If I resign on or prior to the anniversary dates set forth in Section I.1 and do not engage in Competitive Activity, I will execute and return to the Company an annual affidavit on either the first or second anniversary of the Payment Date, as applicable, attesting that I have not engaged Competitive Activity during the prior year.  The Company will provide or make available the affidavit to me prior to the applicable anniversary dates set forth in Section I.1.  If the Company fails to receive the affidavit within 30 days after it is sent to me, I will repay the Proceeds as if I had engaged in Competitive Activity.

 

3.              “Competitive Activity” means that I, whether acting alone or in conjunction with others (a) directly or indirectly render services for any organization or engage (either as owner, investor, partner, stockholder, employer, employee, consultant, advisor, or director), in any business which is or becomes competitive with the business of ITG IR (or any successor thereto), its subsidiaries or Jefferies LLC (together the “Companies”); (b) induce any customer of the Companies  to curtail, limit, or cancel its business with the  Companies or solicit a customer or client of the Companies to transact business with a person, business or enterprise other than the  Companies that is in direct competition with the Companies; or (c) induce or attempt to influence any employee or contractor of the Companies to terminate employment or services with the Companies or solicit or assist any third party in the solicitation of any employee or contractor of the Companies to provide services to a person, business or enterprise other than the  Companies. I acknowledge and agree that given the global nature of the Companies’ business, the prohibition on engaging in Competitive Activity shall be global in geographic scope.

 

III.                              Miscellaneous

 

1.              “Good Standing” means I remain employed at  ITG Inc. and have not been terminated for Cause, have not resigned or given notice of resignation other than in connection with an offer of employment by the Company, am not under investigation for conduct that could result in termination for Cause, and to the extent permitted by law, am not on leave.

 

2.              The Company in its sole discretion may terminate my employment for “cause”. “Cause” shall mean my: (a) material breach of  any  written agreement between the Company and me, its parent,

 

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subsidiaries or affiliates; (b) material violation of any policy or procedure of the  Company, including, but not limited to the Company’s or its parent’s Code of Ethics, that could result in harm to the Company, its employees or its or their reputation; (c) violation of any of the Company’s policy against discrimination or harassment; (d) violation of any federal, state, local, or foreign securities law, rule, or regulation or any rule or regulation of any securities exchange or association or other regulatory or self-regulatory body or agency; (e) arrest for, conviction of, or plea of guilty or nolo contendere to, a crime that could result in harm to the Company, its reputation, or employees; (f) engaging in criminal, illegal, dishonest, immoral, or unethical conduct related to my  employment at the Company; (g) failure to obtain or maintain any registration, license, or other authorization or approval reasonably required by the Company; (h) engaging in any act constituting a material breach of fiduciary duty, gross negligence, or willful misconduct in connection with my employment; or (i) refusal or failure to comply with any of the reasonable directions of or procedures established by  the Board of Directors of the Company’s parent, the Company’s Executive Committee, or my supervisor (unless such directions would result in the commission of an act that is illegal or unethical).  If the Company determines, in its sole and exclusive discretion, that the conduct giving rise to Cause is capable of being cured, the Company will give me written notice that conditions giving rise to termination of  my employment for Cause exist under (a), (b) or (i) above, and no Cause will exist if I have cured the conditions within ten (10) business days of such notice.  If conditions giving rise to termination of my employment for Cause exist under (g), above, the Company shall give me notice of the registration, license or other authorization or approval that I must obtain and a reasonable period of time to obtain it.  For purposes of this definition of “cause”, with respect to the period prior to the Closing, the term Company shall mean ITG and its affiliates and with respect to the period after the Closing, the term Company shall mean the Purchaser and its affiliates.

 

3.              This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York, without giving effect to its principles or rules of conflicts of laws, to the extent that such principles or rules would require or permit the application of the law of another jurisdiction.  I hereby consent that any court proceeding brought with respect to matters related to this Agreement shall be brought in the Borough of Manhattan in the State of New York.  Further, to the extent a party may avail itself of state or federal court to enforce this Agreement, I hereby consent to the personal jurisdiction of the state and federal courts sitting in the City and State of New York.

 

4.              I shall pay all costs of enforcement of this Agreement and collection of any amounts due under this Agreement, including reasonable attorney’s fees and indemnify the Company and ITG and its affiliates for any liabilities, taxes, costs, and expenses of any kind that they may incur in connection with the exercise of their rights under this Agreement and any matter relating thereto. Further, I will not assert any defenses, rights of set-off, or counterclaims as a reason for not fully repaying the amounts due under this Agreement.

 

5.              Nothing in this Agreement shall create a contract of employment between the Company and me for a specific term or guarantee of employment.  My employment with the Company is and shall remain employment at will.

 

6.              If any part of this Agreement is held invalid, the balance of this Agreement shall remain valid and in effect if the balance continues to conform to the requirements of applicable law.

 

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7.              The Company may assign this Agreement with the consent of ITG and the rights of the Company under this Agreement shall inure to the benefit of the successors and assigns of the Company.  This Agreement is not assignable by me.

 

8.              The waiver by the Company of a breach of any provision of this Agreement shall not be taken or held to be a waiver of any succeeding breach of that provision or as a waiver of the provision itself.  Any waiver under this Agreement must be in writing and signed by the Company.  Accordingly, the acceptance by the Company of partial or delinquent payments by me of amounts due under this Agreement, or the failure of the Company to exercise any rights under this Agreement, shall not waive any other breach (similar or otherwise) of this Agreement by me.

 

9.              This Agreement constitutes the entire agreement among ITG and its affiliates, the Company and me with respect to repayment of the Proceeds and the matters contemplated hereby.  This Agreement may not be changed, modified, or terminated orally, but only by a written agreement signed by the ITG, the Company and me.

 

10.       The type and periods of restriction imposed by Agreement are fair and reasonable. I have read and understand this Agreement, and voluntarily agree to the terms and conditions in this Agreement.  I acknowledge that I have been provided with the opportunity to consult with independent legal counsel of my choice.

 

 

	
/s/ Michael V. Marrale
    	
 
    	
Dated:
    	
5/9/2016
    
	
NAME:   Michael V. Marrale
    	
 
    	
 
    

 

4EXHIBIT 10.1

 

Third AMENDED AND
RESTATED INVESTMENT ADVISORY aGREEMENT

 

by and BETWEEN

 

Garrison capital
Inc.

 

AND

 

garrison capital
advisers LLC

 

This Third Amended and Restated Investment Advisory Agreement made
this 5th day of August 2016 (this “Agreement”), by and between GARRISON CAPITAL INC., a Delaware
corporation (the “Corporation”), and GARRISON CAPITAL ADVISERS LLC, a Delaware limited liability company (the
“Adviser”).

 

WHEREAS, the Corporation operates as a closed-end, non-diversified
management investment company;

 

WHEREAS, the Corporation has elected to be treated as a business development
company under the Investment Company Act of 1940, as amended (the “Investment Company Act”);

 

WHEREAS, the Adviser is registered as an investment adviser under the
Investment Advisers Act of 1940, as amended (the “Investment Advisers Act”);

 

WHEREAS, the Corporation and the Adviser are party to that certain
second amended and restated investment advisory agreement dated May 6, 2014 by and between the Corporation and the Adviser (the
“Prior Agreement”); and

 

WHEREAS, the Corporation and the Adviser desire to amend and restate
the Prior Agreement to set forth the terms and conditions for the continued provision by the Adviser of investment advisory services
to the Corporation, and the stockholders of the Corporation approved this Agreement at a meeting held on May 1, 2015.

 

NOW, THEREFORE, in consideration of the premises and for other good
and valuable consideration, the parties hereby agree as follows:

 

1.                 
Duties of the Adviser.

 

(a)               
The Corporation hereby employs the Adviser to act as the investment adviser to the Corporation and to manage the investment
and reinvestment of the assets of the Corporation, subject to the supervision of the board of directors of the Corporation (the
“Board of Directors”), for the period and upon the terms herein set forth, (i) in accordance with the investment
objective, policies and restrictions that are set forth in the Corporation’s filings with the Securities and Exchange Commission,
as the same may be amended from time to time, (ii) in accordance with the Investment Company Act, the Investment Advisers Act and
all other applicable federal and state law and (iii) in accordance with the Corporation’s certificate of incorporation and
bylaws, each as amended from time to time.

 

     

     

    

Without limiting the generality of the foregoing, the Adviser shall,
during the term and subject to the provisions of this Agreement, (i) determine the composition of the portfolio of the Corporation,
the nature and timing of the changes therein and the manner of implementing such changes; (ii) identify, evaluate and negotiate
the structure of the investments made by the Corporation (including performing due diligence on prospective portfolio companies);
(iii) execute, close, service and monitor the Corporation’s investments; (iv) determine the securities and other assets that
the Corporation will purchase, retain or sell; and (v) provide the Corporation with such other investment advisory, research and
related services as the Corporation may, from time to time, reasonably require for the investment of its funds. The Adviser shall
have the power and authority on behalf of the Corporation to effectuate its investment decisions for the Corporation, including
the execution and delivery of all documents relating to the Corporation’s investments and the placing of orders for other
purchase or sale transactions on behalf of the Corporation.

 

In the event that the Corporation determines to acquire debt financing
or to refinance existing debt financing, the Adviser shall arrange for such financing on the Corporation’s behalf, subject
to the oversight and approval of the Board of Directors.

 

If it is necessary for the Adviser to make investments on behalf
of the Corporation through a subsidiary or special purpose vehicle, the Adviser shall have authority to create or arrange for the
creation of such subsidiary or special purpose vehicle and to make such investments through such subsidiary or special purpose
vehicle in accordance with the Investment Company Act.

 

(b)              
The Adviser hereby accepts such employment and agrees during the term hereof to render the services described herein for
the amounts of compensation provided herein.

 

(c)               
Subject to the requirements of the Investment Company Act, the Adviser is hereby authorized, but not required, to enter
into one or more sub-advisory agreements with other investment advisers (each, a “Sub-Adviser”) pursuant to
which the Adviser may obtain the services of the Sub-Adviser(s) to assist the Adviser in fulfilling its responsibilities hereunder.
Specifically, the Adviser may retain a Sub-Adviser to recommend specific securities or other investments based upon the Corporation’s
investment objective and policies, and work, along with the Adviser, in structuring, negotiating, arranging or effecting the acquisition
or disposition of such investments and monitoring investments on behalf of the Corporation, subject in all cases to the oversight
of the Adviser and the Corporation. The Adviser, and not the Corporation, shall be responsible for any compensation payable to
any Sub-Adviser. Any sub-advisory agreement entered into by the Adviser shall be in accordance with the requirements of the Investment
Company Act, the Investment Advisers Act and other applicable federal and state law.

 

(d)              
For all purposes herein provided, the Adviser shall be deemed to be an independent contractor and, except as expressly provided
or authorized herein, shall have no authority to act for or represent the Corporation in any way or otherwise be deemed an agent
of the Corporation.

 

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(e)               
The Adviser shall keep and preserve, in the manner and for the period that would be applicable to investment companies registered
under the Investment Company Act, any books and records relevant to the provision of its investment advisory services to the Corporation,
shall specifically maintain all books and records with respect to the Corporation’s portfolio transactions and shall render
to the Board of Directors such periodic and special reports as the Board of Directors may reasonably request. The Adviser agrees
that all records that it maintains for the Corporation are the property of the Corporation and shall surrender promptly to the
Corporation any such records upon the Corporation’s request, provided that the Adviser may retain a copy of such records.

 

2.                 
Corporation’s Responsibilities and Expenses Payable by the Corporation. All investment professionals of the
Adviser and their respective staffs, when and to the extent engaged in providing investment advisory and management services hereunder,
and the compensation and routine overhead expenses of such personnel allocable to such services, shall be provided and paid for
by the Adviser and not by the Corporation.

 

The Corporation shall bear all other costs and expenses of its operations
and transactions, including those relating to: (a) organization; (b) calculating the Corporation’s net asset value (including
the cost and expenses of any independent valuation firm); (c) fees and expenses, including travel expenses, incurred by the Adviser
or payable to third parties in performing due diligence on prospective portfolio companies, monitoring the Corporation’s
investments and, if necessary, enforcing the Corporation’s rights; (d) interest payable on debt, if any, incurred to finance
the Corporation’s investments; (e) costs of offerings of the Corporation’s common stock and other securities; (f) the
base management fee and any incentive fee; (g) distributions on the Corporation’s common stock; (h) administration fees payable
to the Garrison Capital Administrator LLC (the “Administrator”) under the administration agreement dated as
of October 9, 2012 (as amended from time to time, the “Administration Agreement”); (i) transfer agent and custody
fees and expenses; (j) the allocated costs incurred by the Administrator in providing managerial assistance to those portfolio
companies that request it; (k) amounts payable to third parties relating to, or associated with, evaluating, making and disposing
of investments; (l) brokerage fees and commissions; (m) registration fees; (n) listing fees; (o) taxes; (p) independent director
fees and expenses; (q) costs associated with the Corporation’s reporting and compliance obligations under the Investment
Company Act and applicable U.S. federal and state securities laws; (r) the costs of any reports, proxy statements or other notices
to the Corporation’s stockholders, including printing costs; (s) costs of holding stockholder meetings; (t) the Corporation’s
fidelity bond; (u) directors and officers/errors and omissions liability insurance, and any other insurance premiums; (v) litigation,
indemnification and other non-recurring or extraordinary expenses; (w) direct costs and expenses of administration and operation,
including audit and legal costs; (x) fees and expenses associated with marketing efforts; (y) dues, fees and charges of any trade
association of which the Corporation is a member; and (z) all other expenses reasonably incurred by the Corporation or the Administrator
in connection with administering the Corporation’s business, such as the allocable portion of overhead under the Administration
Agreement, including rent and the Corporation’s allocable portion of the costs and expenses of its chief compliance officer,
chief financial officer and their respective staffs.

 

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3.                 
Compensation of the Adviser. The Corporation agrees to pay, and the Adviser agrees to accept, as compensation for
the investment advisory and management services provided by the Adviser hereunder, a fee consisting of two components: a base management
fee (the “Base Management Fee”) and an incentive fee (the “Incentive Fee”), each as hereinafter
set forth. The Corporation shall make any payments due hereunder to the Adviser or to the Adviser’s designee as the Adviser
may otherwise direct. To the extent permitted by applicable law, the Adviser may elect, or adopt a deferred compensation plan pursuant
to which it may elect to defer all or a portion of its fees hereunder for a specified period of time.

 

(a)               
The Base Management Fee shall be calculated at an annual rate equal to 1.75% of the gross assets of the Corporation, excluding
cash and cash equivalents but including assets purchased with borrowed funds. For services rendered under this Agreement, the Base
Management Fee shall be payable quarterly in arrears. The Base Management Fee shall be calculated based on the average carrying
value of the gross assets of the Corporation at the end of the two most recently completed calendar quarters. Such amount shall
be appropriately adjusted (based on the actual number of days elapsed relative to the total number of days in such calendar quarter)
for any share issuances or repurchases during a calendar quarter. The Base Management Fee for any partial month or quarter shall
be appropriately pro-rated (based on the number of days actually elapsed at the end of such partial month or quarter relative to
the total number of days in such month or quarter). For purposes of this Agreement, cash equivalents shall mean U.S. government
securities and commercial paper instruments maturing within 270 days of the date of purchase of such instrument by the Corporation.
Notwithstanding anything herein to the contrary, to the extent that the Adviser or an affiliate of the Adviser provides investment
advisory, collateral management or other similar services to a subsidiary of the Corporation, the Base Management Fee shall be
reduced by an amount equal to the product of (a) the total fees paid to the Adviser by such subsidiary for such services and (b)
the percentage of such subsidiary’s total equity that is owned, directly or indirectly, by the Corporation.

 

(b)              
The Incentive Fee, which is subject to the Incentive Fee Cap and Deferral Mechanism (as defined under Section 3(c) below),
shall consist of two parts, as follows:

 

		(i)	One part will be calculated and payable quarterly in arrears based on the Pre-Incentive Fee Net Investment Income for the immediately
preceding calendar quarter, subject to the Incentive Fee Cap and Deferral Mechanism. For this purpose, Pre-Incentive Fee Net Investment
Income means interest income, distribution income and any other income (including any other fees (other than fees for providing
managerial assistance), such as commitment, origination, structuring, diligence and consulting fees and fees for providing significant
managerial assistance or other fees that the Corporation receives from portfolio companies) accrued during the calendar quarter,
minus the Corporation’s operating expenses for the quarter (including the Base Management Fee, expenses payable under the
Administration Agreement and any interest expense and dividends paid on any issued and outstanding preferred stock, but excluding
the Incentive Fee). Pre-Incentive Fee Net Investment Income includes, in the case of investments with a deferred interest feature
(such as original issue discount, debt instruments payment-in-kind interest and zero coupon securities), accrued income that the
Corporation has not yet received in cash. Pre-Incentive Fee Net Investment Income does not include any realized capital gains,
realized capital losses or unrealized capital appreciation or depreciation.

 

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Pre-Incentive Fee Net Investment Income, expressed as a
rate of return on the value of the Corporation’s net assets at the end of the immediately preceding calendar quarter, will
be compared to a “hurdle rate” of 2.00% per quarter (8.00% annualized). The Corporation will pay the Adviser an Incentive
Fee with respect to the Corporation’s Pre-Incentive Fee Net Investment Income in each calendar quarter as follows; (1) no
Incentive Fee in any calendar quarter in which the Corporation’s Pre-Incentive Fee Net Investment Income does not exceed
the hurdle rate; (2) 100% of the Corporation’s Pre-Incentive Fee Net Investment Income with respect to that portion of such
Pre-Incentive Fee Net Investment Income, if any, that exceeds the hurdle rate but is less than 2.50% in any calendar quarter; and
(3) 20% of the amount of the Corporation’s Pre-Incentive Fee Net Investment Income, if any, that exceeds 2.50% in any calendar
quarter.

 

The portion of such Incentive Fee that is attributable to
deferred interest (such as payment-in-kind interest or original issue discount) will be paid to the Adviser, together with any
other interest accrued on the loan from the date of deferral to the date of payment, only if and to the extent the Corporation
actually receives such interest in cash, and any accrual thereof will be reversed if and to the extent such interest is reversed
in connection with any write-off or similar treatment of the investment giving rise to any deferred interest accrual.

 

These calculations will be appropriately pro rated for any
period of less than three months and adjusted for any share issuances or repurchases during the current quarter.

 

		(ii)	The second part of the Incentive Fee (the “Capital Gains Fee”) will be determined and payable in arrears
as of the end of each calendar year (or upon termination of this Agreement as set forth below), commencing on December 31, 2013,
and will equal 20.0% of the Corporation’s cumulative aggregate realized capital gains from April 1, 2013 through the end
of that calendar year, computed net of the Corporation’s aggregate cumulative realized capital losses and the Corporation’s
aggregate cumulative unrealized capital depreciation through the end of such year, less the aggregate amount of any previously
paid Capital Gains Fees and subject to the Incentive Fee Cap and Deferral Mechanism. In the event that this Agreement shall terminate
as of a date that is not a calendar year end, the termination date shall be treated as though it were a calendar year end for purposes
of calculating and paying a Capital Gains Fee.

 

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The Corporation shall accrue the Capital Gains Fee if, on
a cumulative basis, the sum of net realized gains/(losses) plus net unrealized appreciation/ (depreciation) is positive. The Capital
Gains Fee excludes any portion of realized gains/(losses) that are associated with the reversal of any portion of unrealized appreciation/depreciation
attributable to periods prior to April 1, 2013.

 

(c)               
No Incentive Fee shall be paid to the Adviser for any fiscal quarter if, after such payment, the cumulative incentive fees
paid to the Adviser for the period that includes the such quarter and the 11 full preceding fiscal quarters (the “Incentive
Fee Look-back Period”) would exceed 20.0% of the Corporation’s Cumulative Pre-Incentive Fee Net Return (as defined
below) during the Incentive Fee Look-back Period. Each quarterly Incentive Fee is subject to a cap (the “Incentive Fee
Cap”) and a deferral mechanism through which the Adviser may recoup a portion of such deferred incentive fees (collectively,
the “Incentive Fee Cap and Deferral Mechanism”). The Incentive Fee Look-back Period will commence on April 1,
2013 and may be a total of less than 12 full fiscal quarters. The “Incentive Fee Cap” is equal to (a) 20.0%
of Cumulative Pre-Incentive Fee Net Return during the Incentive Fee Look-back Period less (b) cumulative incentive fees of any
kind paid to the Adviser during the Incentive Fee Look-back Period. To the extent the Incentive Fee Cap is zero or a negative value
in any quarter, the Corporation shall pay no Incentive Fee to the Adviser in that quarter. To the extent that the payment of Incentive
Fees is limited by the Incentive Fee Cap, the payment of such fees shall be deferred and paid in subsequent quarters up to three
years after their date of deferment, subject to applicable limitations included herein. The Corporation shall only pay Incentive
Fees to the extent allowed by the Incentive Fee Cap and Deferral Mechanism. “Cumulative Pre-Incentive Fee Net Return”
during any Incentive Fee Look-back Period means the sum of (a) Pre-Incentive Fee Net Investment Income for each quarter during
the Incentive Fee Look-back Period and (b) the sum of cumulative realized capital gains, cumulative realized capital losses, cumulative
unrealized capital depreciation and cumulative unrealized capital appreciation during the applicable Incentive Fee Look-back Period.

 

4.                 
Covenants of the Adviser. The Adviser hereby covenants that it is registered as an investment adviser under the Investment
Advisers Act. The Adviser hereby agrees that its activities shall at all times be in compliance in all material respects with all
applicable federal and state laws governing its operations and investments.

 

5.                 
Excess Brokerage Commissions. The Adviser is hereby authorized, to the fullest extent now or hereafter permitted
by law, to cause the Corporation to pay a member of a national securities exchange, broker or dealer an amount of commission for
effecting a securities transaction in excess of the amount of commission another member of such exchange, broker or dealer would
have charged for effecting such transaction if the Adviser determines, in good faith and taking into account such factors as price
(including the applicable brokerage commission or dealer spread), size of order, difficulty of execution, and operational facilities
of the firm and the firm’s risk and skill in positioning blocks of securities, that the amount of such commission is reasonable
in relation to the value of the brokerage and/or research services provided by such member, broker or dealer, viewed in terms of
either that particular transaction or its overall responsibilities with respect to the Corporation’s portfolio, and constitutes
the best net result for the Corporation.

 

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6.                 
Proxy Voting. The Adviser shall be responsible for voting any proxies solicited by an issuer of securities held by the
Corporation in the best interest of the Corporation and in accordance with the Adviser’s proxy voting policies and procedures,
as any such proxy voting policies and procedures may be amended from time to time. The Corporation has been provided with a copy
of the Adviser’s proxy voting policies and procedures and has been informed as to how it can obtain further information from
the Adviser regarding proxy voting activities undertaken on behalf of the Corporation. The Adviser shall be responsible for reporting
the Corporation’s proxy voting activities, as required, through periodic filings on Form N-PX.

 

7.                 
Limitations on the Employment of the Adviser. The services of the Adviser to the Corporation are not, and shall not
be, exclusive. The Adviser may engage in any other business or render similar or different services to others including, without
limitation, the direct or indirect sponsorship or management of other investment based accounts or commingled pools of capital,
however structured, having investment objectives similar to those of the Corporation; provided that its services to the Corporation
hereunder are not impaired thereby. Nothing in this Agreement shall limit or restrict the right of any manager, partner, officer
or employee of the Adviser to engage in any other business or to devote his or her time and attention in part to any other business,
whether of a similar or dissimilar nature, or to receive any fees or compensation in connection therewith (including fees for serving
as a director of, or providing consulting services to, one or more of the portfolio companies of the Corporation, subject at all
times to applicable law). So long as this Agreement or any extension, renewal or amendment hereof remains in effect, the Adviser
shall be the only investment adviser for the Corporation, subject to the Adviser’s right to enter into sub-advisory agreements.
The Adviser assumes no responsibility under this Agreement other than to render the services called for hereunder. It is understood
that directors, officers, employees and stockholders of the Corporation are or may become interested in the Adviser and its affiliates,
as directors, officers, employees, partners, stockholders, members, managers or otherwise, and that the Adviser and directors,
officers, employees, partners, stockholders, members and managers of the Adviser and its affiliates are or may become similarly
interested in the Corporation as stockholders or otherwise.

 

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Subject to any restrictions prescribed by law, by the provisions of
the Code of Ethics of the Corporation and the Adviser and by the Adviser’s Allocation Policy, the Adviser and its members,
officers, employees and agents shall be free from time to time to acquire, possess, manage and dispose of securities or other investment
assets for their own accounts, for the accounts of their family members, for the account of any entity in which they have a beneficial
interest or for the accounts of others for whom they may provide investment advisory, brokerage or other services (collectively,
“Managed Accounts”), in transactions that may or may not correspond with transactions effected or positions
held by the Corporation or to give advice and take action with respect to Managed Accounts that differs from advice given to, or
action taken on behalf of, the Corporation; provided that the Adviser allocates investment opportunities to the Corporation, over
a period of time on a fair and equitable basis compared to investment opportunities extended to other Managed Accounts. The Adviser
is not, and shall not be, obligated to initiate the purchase or sale for the Corporation of any security that the Adviser and its
members, officers, employees or agents may purchase or sell for its or their own accounts or for the account of any other client
if, in the opinion of the Adviser, such transaction or investment appears unsuitable or undesirable for the Corporation. Moreover,
it is understood that when the Adviser determines that it would be appropriate for the Corporation and one or more Managed Accounts
to participate in the same investment opportunity, the Adviser shall seek to execute orders for the Corporation and for such Managed
Account(s) on a basis that the Adviser considers to be fair and equitable over time. In such situations, the Adviser may (but is
not required to) place orders for the Corporation and each Managed Account simultaneously or on an aggregated basis. If all such
orders are not filled at the same price, the Adviser may cause the Corporation and each Managed Account to pay or receive the average
of the prices at which the orders were filled for the Corporation and all relevant Managed Accounts on each applicable day. If
all such orders cannot be fully executed under prevailing market conditions, the Adviser may allocate the investment opportunities
among participating accounts in a manner that the Adviser considers equitable, taking into account, among other things, the size
of each account, the size of the order placed for each account and any other factors that the Adviser deems relevant.

 

8.                 
Responsibility of Dual Directors, Officers and/or Employees. If any person who is a manager, member, partner, officer
or employee of the Adviser or the Administrator is or becomes a director, officer and/or employee of the Corporation and acts as
such in any business of the Corporation, then such manager, member, partner, officer and/or employee of the Adviser or the Administrator
shall be deemed to be acting in such capacity solely for the Corporation and not as a manager, member, partner, officer and/or
employee of the Adviser or the Administrator or under the control or direction of the Adviser or the Administrator, even if paid
by the Adviser or the Administrator.

 

    	8

     

    

9.                 
Limitation of Liability of the Adviser; Indemnification. The Adviser (and its officers, managers, partners, agents,
employees, controlling persons, members and any other person or entity affiliated with the Adviser, including its managing member
and the Administrator) shall not be liable to the Corporation for any action taken or omitted to be taken by the Adviser in connection
with the performance of any of its duties or obligations under this Agreement or otherwise as an investment adviser of the Corporation,
except to the extent specified in Section 36(b) of the Investment Company Act concerning loss resulting from a breach of fiduciary
duty (as the same is finally determined by judicial proceedings) with respect to the receipt of compensation for services, and
the Corporation shall indemnify, defend and protect the Adviser (and its officers, managers, partners, agents, employees, controlling
persons, members and any other person or entity affiliated with the Adviser, including without limitation its managing member and
the Administrator, each of whom shall be deemed a third party beneficiary hereof) (collectively, the “Indemnified Parties”)
and hold them harmless from and against all damages, liabilities, costs and expenses (including reasonable attorneys’ fees
and amounts reasonably paid in settlement) incurred by the Indemnified Parties in or by reason of any pending, threatened or completed
action, suit, investigation or other proceeding (including an action or suit by or in the right of the Corporation or its security
holders) arising out of or otherwise based upon the performance of any of the Adviser’s duties or obligations under this
Agreement or otherwise as an investment adviser of the Corporation. Notwithstanding the preceding sentence of this Section 9 to
the contrary, nothing contained herein shall protect or be deemed to protect the Indemnified Parties against or entitle or be deemed
to entitle the Indemnified Parties to indemnification in respect of, any liability to the Corporation or its security holders to
which the Indemnified Parties would otherwise be subject by reason of willful misfeasance, bad faith or gross negligence in the
performance of the Adviser’s duties or by reason of the reckless disregard of the Adviser’s duties and obligations
under this Agreement (as the same shall be determined in accordance with the Investment Company Act and any interpretations or
guidance by the Securities and Exchange Commission or its staff thereunder).

 

10.             
Effectiveness, Duration and Termination of Agreement. This Agreement shall become effective as of the first date
above written. This Agreement shall continue automatically for successive annual periods, provided that such continuance is specifically
approved at least annually by (a) the vote of the Corporation’s Board of Directors, or by the vote of a majority of the outstanding
voting securities of the Corporation and (b) the vote of a majority of the Corporation’s Directors who are not parties to
this Agreement or “interested persons” (as such term is defined in Section 2(a)(19) of the Investment Company Act)
of any such party, in accordance with the requirements of the Investment Company Act.

 

This Agreement may be terminated at any time, without the payment
of any penalty, upon not less than 60 days’ written notice, by the vote of a majority of the outstanding voting securities
of the Corporation, or by the vote of the Corporation’s Directors or by the Adviser.

 

This Agreement shall automatically terminate in the event of its
“assignment” (as such term is defined for purposes of Section 15(a)(4) of the Investment Company Act). The provisions
of Section 9 of this Agreement shall remain in full force and effect, and the Adviser shall remain entitled to the benefits thereof,
notwithstanding any termination of this Agreement. Further, notwithstanding the termination or expiration of this Agreement as
aforesaid, the Adviser shall be entitled to any amounts owed under Section 3 through the date of termination or expiration and
Section 9 shall continue in force and effect and apply to the Adviser and its representatives as and to the extent applicable.

 

11.             
Notices. Any notice under this Agreement shall be given in writing, addressed and delivered or mailed, postage prepaid,
to the other party at its principal office.

 

    	9

     

    

12.             
Amendments. This Agreement may be amended by mutual consent, but the consent of the Corporation must be obtained
in conformity with the requirements of the Investment Company Act.

 

13.             
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. This Agreement shall be construed in accordance
with the laws of the State of New York and the applicable provisions of the Investment Company Act. To the extent the applicable
laws of the State of New York, or any of the provisions herein, conflict with the provisions of the Investment Company Act, the
latter shall control.

*          *          *          *

 

 

 

 

 

 

    	10

     

    

 

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

 

	 	GARRISON CAPITAL Inc.	 
	 	 	 
		 	 	 
	 	By:	/s/ Joseph Tansey	 
	 	 	Name:  Joseph Tansey	 
	 	 	Title:  Chief Executive Officer
	 	 	 	 
		 	 	 

	GARRISON CAPITAL ADVISERS LLC	 	 
	 	 	 
	By: Garrison Capital Advisers MM LLC,	 	 
	its managing member	 	 
	 	 	 
	By: 	/s/ Michael Butler	 	 
	 	Name:   Michael Butler	 	 
	 	Title:  Authorized Signatory	 	 
	 	 	 

 

 

 

 

 

 

 

[Signature Page to Third Amended and Restated
Investment Advisory Agreement]

 

11

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