Document:

Exhibit

Exhibit 10.1
Kemper Corporation 2011 Omnibus Equity Plan
NON-EMPLOYEE DIRECTOR RESTRICTED STOCK UNIT AWARD AGREEMENT
This NON-EMPLOYEE DIRECTOR RESTRICTED STOCK UNIT AWARD AGREEMENT (“Agreement”) is made as of this ______ day of _________________, 20__ (“Grant Date”) between KEMPER CORPORATION, a Delaware corporation (“Company”), and «name» (“Participant”) for an Award of  restricted stock units (“RSUs”), each representing the right to receive one share of the Company’s common stock (“Common Stock”) on the terms and conditions set forth in this Agreement.
SIGNATURES
As of the date set forth above, the parties have accepted the terms of this Agreement by signing this Agreement by an electronic signature, and each party agrees that such signature shall not be denied legal effect, validity or enforceability solely because it was submitted or executed electronically.
KEMPER CORPORATION                                       PARTICIPANT
By:   ____________________________________        _____________________________
«CEO or Chairman of the Board Signature and Title»    «Name»
RECITALS
A.The Board of Directors of the Company (“Board”) has adopted the Kemper Corporation 2011 Omnibus Equity Plan (“Plan”), including all amendments to date, to be administered by the Compensation Committee of the Board or any subcommittee thereof, or any other committee designated by the Board to administer the Plan (“Committee”). Capitalized terms that are not defined herein shall be defined in accordance with the Plan.
B.The Plan provides, among other things, for grants of awards to non-employee Directors of the Company, of the type, in the amounts and subject to such terms as shall be determined from time to time by the Board after considering any recommendation by the Committee.
C.The Committee has adopted Rules and Procedures for Deferral of Non-Employee Director Restricted Stock Unit Awards that permit a non-employee Director to defer the date on which an RSU granted to a non-employee Director is converted into Common Stock (“Deferral Rules and Procedures”).
NOW, THEREFORE, the parties hereto agree as follows:
1.    Grant.  The Company grants an aggregate of «shares» («shares») RSUs, which represent the Company’s unfunded and unsecured promise to issue shares of Common Stock, to the Participant, subject to the terms and conditions set forth in this Agreement.  The RSUs shall 

As of 5-1-19

not entitle the Participant to any rights of a shareholder of Common Stock and the Participant has no rights with respect to the Award other than rights as a general creditor of the Company.
2.    Governing Plan.  This Award is granted pursuant to the Plan, which is incorporated herein for all purposes.  The Participant agrees to be bound by the terms and conditions of the Plan, which controls in case of any conflict with this Agreement, except as otherwise provided for in the Plan.  No amendment of the Plan shall adversely affect this Award in any material way without the written consent of the Participant.
3.    Restrictions on Transfer.  The RSUs shall be restricted during a period (“Restricted Period”) beginning on the Grant Date and expiring on the Vesting Date (as defined in Section 4 below). During the Restricted Period, neither this Agreement, the RSUs nor any rights and privileges granted hereby may be transferred, assigned, pledged or hypothecated in any way, whether by operation of the law or otherwise (any such disposition being referred to herein as a “Transfer”), except by will or the laws of descent and distribution.  Without limiting the generality of the preceding sentence, no rights or privileges granted hereby may be Transferred during the Restricted Period to the spouse or former spouse of the Participant pursuant to any divorce proceedings, settlement or judgment.  Any attempt to Transfer this Agreement, the RSUs or any other rights or privileges granted hereby contrary to the provisions hereof shall be null and void and of no force or effect, and the Company shall not recognize or give effect to any such Transfer on its books and records or recognize the person to whom such purported Transfer has been made as the legal or beneficial holder of such RSUs.
4.    Vesting and Forfeiture.
(a)    Vesting.  To the extent not previously forfeited, the RSUs shall fully vest on the earliest to occur of the following (“Vesting Date”), except as otherwise provided herein:
(i)    the first anniversary of the Grant Date, if the Participant continues in Service through such anniversary date;
(ii)    the date of the Participant’s death, if the Participant dies while in Service;
(iii)    the date of the Participant’s Disability, if the Participant becomes Disabled while in Service; 
(iv)    the date of a Change of Control after which the Director ceases to serve as a Director or as a member of the board of directors of any successor to the Company, unless such cessation is due to the Director’s voluntary resignation; 
(v)    the expiration of the annual term of the Participant if the Participant elects not to stand for re-election as a Director; or
(vi)    any date upon which vesting is accelerated by the Committee in its discretion in accordance with the terms of the Plan.

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Notwithstanding the foregoing, if the Participant makes a deferral election pursuant to the Deferral Rules and Procedures on or after the first day of the calendar year in which the RSU is awarded (as permitted by Section 409A with respect to certain forfeitable rights), such Participant may be vested only upon a date or event described in Section 4(a)(i) through (iv) and if such event is a Change of Control, only if such Change of Control is a change in control event described in Treas. Reg. §1.409A-3(i)(5).
(b)    Termination of Service.  If the Participant ceases to be in Service for reasons other than the Participant’s death or Disability, then all unvested RSUs shall be forfeited to the Company on the date of such cessation of Service.
(c)    Certain Definitions.
(i)    “Service” means the period during which the Participant is a Director.
(ii)    “Disabled” or “Disability” means that the Participant either:
(A)    is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months; or
(B)    is determined to be totally disabled by the Social Security Administration or Railroad Retirement Board.
5.    Dividend Equivalents.  If a cash dividend is declared and paid by the Company with respect to the Common Stock during the Restricted Period, the Participant shall be eligible to receive a cash payment equal to the total cash dividend the Participant would have received had the RSUs been actual shares of Common Stock (“Dividend Equivalents”), provided that the Participant vests in the RSUs.  Any such cash payment shall be made on the Vesting Date.  After the Vesting Date and prior to the settlement date, as defined in Section 6 (the “Settlement Date”), the Participant shall be entitled to receive payment of Dividend Equivalents on the date that the dividends are payable to holders of the Company’s Common Stock.
6.    Conversion of RSUs; Issuance of Common Stock. Except as otherwise provided in Section 10, the Company shall cause one share of Common Stock to be issued for each vested RSU on the Settlement Date, as defined below:
(a)    For a Participant who does not elect to defer the Settlement Date pursuant to the Deferral Rules and Procedures, the Settlement Date shall be the Vesting Date or any date after the Vesting Date which is no later than the first to occur of (a) March 15th following the calendar year in which the Vesting Date occurred, or (b) 90 days following the Vesting Date; and
(b)    For a Participant who elects to defer the Settlement Date pursuant to the Deferral Rules and Procedures, the Settlement Date shall be such date as the Participant elected, in accordance with such procedures, to have the RSUs converted to shares of 

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Common Stock, except that in the event the Vesting Date is accelerated due to the Participant’s death, Disability or pursuant to a Change of Control, the Settlement Date shall be the date described in Section 6(a) if the Participant’s deferral election was permitted pursuant to Treas. Reg. §1.409A-2(a)(5) (relating to initial deferral elections with respect to certain forfeitable rights) and was not otherwise permissible under Treas. Reg. §1.409A-2.
Any issuance of Common Stock shall be in book-entry form, registered in the Participant’s name (or in the name of the Participant’s Representative, as the case may be), in payment of whole RSUs.  Any fractional shares of Common Stock that would otherwise be issued to the Participant shall instead be paid in the form of cash.  
7.    Fair Market Value of Common Stock.  The fair market value (“Fair Market Value”) of a share of Common Stock shall be determined for purposes of this Agreement by reference to the closing price of a share of Common Stock as reported by the New York Stock Exchange (or such other exchange on which the shares of Common Stock are primarily traded) for the applicable date or if no prices are reported for that day, the last preceding day on which such prices are reported (or, if for any reason no such price is available, in such other manner as the Committee in its sole discretion may deem appropriate to reflect the fair market value thereof).
8.    Section 409A.  The Company intends that the Award hereunder shall either be exempt from the application of, or compliant with, the requirements of Section 409A and this Award Agreement shall be interpreted and administered in accordance with such intent.  In no event shall the Company and/or its Affiliates be liable for any tax, interest or penalties that may be imposed on the Participant (or the Participant’s estate) under Section 409A.
9.    Shares to be Issued in Compliance with Federal Securities Laws and Other Rules.  No shares of Common Stock issuable in settlement of the RSUs shall be issued and delivered unless and until there shall have been full compliance with all applicable requirements of the Securities Act of 1933, as amended (“Act”) (whether by registration or satisfaction of exemption conditions), all applicable listing requirements of the New York Stock Exchange (or such other exchange(s) or market(s) on which shares of the same class are then listed) and any other requirements of law or of any regulatory bodies having jurisdiction over such issuance and delivery.  The Company shall use its best efforts and take all necessary or appropriate actions to ensure that such full compliance on the part of the Company is made.  By signing this Agreement, the Participant represents and warrants that none of the shares to be acquired in settlement of the RSUs will be acquired with a view towards any sale, transfer or distribution of said shares in violation of the Act, and the rules and regulations promulgated thereunder, or any applicable “blue sky” laws, and that the Participant hereby agrees to indemnify the Company in the event of any violation by the Participant of such Act, rules, regulations or laws.  The Company will use its best efforts to complete all actions necessary for such compliance so that settlement can occur within the period specified in Section 6; provided that if the Company reasonably anticipates that settlement within such period will cause a violation of applicable law, settlement may be delayed provided that settlement occurs at the earliest date at which the Company reasonably anticipates that such settlement will not cause a violation of applicable law, all in accordance with Treas. Reg. §1.409A-2(b)(7)(ii).

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10.    Certain Adjustments; Change in Control.  If, during the term of this Agreement, there shall be any  stock splits, reorganizations, equity restructurings and similar matters, the Committee shall make or cause to be made an appropriate and equitable substitution, adjustment or treatment with respect to the RSUs in a manner consistent with Sections 4.4 and 19.2 of the Plan.  The Committee’s determination as to what adjustments shall be made, and the extent thereof, shall be final, binding and conclusive.  No fractional shares of Common Stock shall be issued under the Plan on any such adjustment. Except as otherwise provided in Section 4, the RSUs may be subject to early vesting or termination in connection with a Change in Control in accordance with the provisions of Section 18.3 of the Plan.
11.    Participation by Participant in Other Company Plans.  Nothing herein contained shall affect the right of the Participant to participate in and receive benefits under and in accordance with the then current provisions of any retirement plan or employee welfare benefit plan or program of the Company or of any Affiliate of the Company in which non-employee Directors are otherwise eligible to participate.
12.    No Right to Continue as a Director.  Nothing herein contained shall be construed as an agreement by the Company, expressed or implied, that the Award Holder has a right to continue as a Director for any period of time or at any particular rate of compensation.
13.    Death of Participant.  In the event of the Participant’s death prior to the Settlement Date, delivery of shares of Common Stock pursuant to Section 6 shall be made to the duly appointed and qualified executor or other personal representative of the Participant, to be distributed in accordance with the Participant’s will or applicable intestacy law.
14.    Arbitration.  In lieu of litigation by way of court or jury trial, any dispute or controversy arising hereunder shall be settled by arbitration pursuant to the terms of this paragraph.  The parties agree that this Agreement provides sufficient consideration for that obligation and the mutual promises to arbitrate also constitutes consideration for this agreement to arbitrate.  The following terms and conditions shall apply to such arbitration hereunder. The arbitration shall be conducted before a single arbitrator in accordance with the Employment Arbitration Rules of the American Arbitration Association (“AAA”) then in effect, and shall be governed by the Federal Arbitration Act. Judgment may be entered on the award of the arbitrator in any court having jurisdiction. Unless provided otherwise in the arbitrator’s award, each party will pay its own attorneys’ fees and costs. To the extent required by law or the AAA Rules, all administrative costs of arbitration (including filing fees) and the fees of the arbitrator will be paid by the Company. The Participant and the Company waive the right for any dispute to be brought, heard, decided, or arbitrated as a class and/or collective action (or joinder or consolidation with claims of any other person), and the parties agree that, regardless of anything else in this arbitration provision or the AAA Rules, the interpretation, applicability, enforceability or formation of the class action waiver in this provision may only be determined by a court and not an arbitrator.  Regardless of anything else in this Agreement, this arbitration provision may not be modified or terminated absent a writing signed by the Participant and the Company stating an intent to modify or terminate the arbitration provision.  

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15.    Governing Law.  Except as otherwise provided in Section 14, this Agreement and any disputes hereunder shall be governed by and interpreted in accordance with the laws of the State of Delaware, without application of its conflicts of laws principles.
16.    Miscellaneous.  This Agreement, together with the Plan, is the entire agreement of the parties with respect to the RSUs granted hereby and may not be amended except in a writing signed by both the Company and the Participant or his or her Representative.  If any provision of this Agreement is deemed invalid, it shall be modified to the extent possible and minimally necessary to be enforceable, and, in any event, the remainder of this Agreement will be in full force and effect.

6Exhibit 10.1

 

INVESTMENT ADVISORY AND 

ADMINISTRATIVE SERVICES AGREEMENT 

BETWEEN 

TERRA INCOME FUND 6, INC.

AND 

TERRA INCOME ADVISORS, LLC 

 

This Investment Advisory
and Administrative Services Agreement (this “Agreement”) is made this 30th day of April,
2019, by and between TERRA INCOME FUND 6, INC., a Maryland corporation (the “Company”), and TERRA
INCOME ADVISORS, LLC, a Delaware limited liability company (the “Advisor”).

 

RECITALS

 

WHEREAS, the Company
is a non-diversified, closed-end management investment company that intends to elect to be treated as a business development company
(“BDC”) under the Investment Company Act of 1940, as amended (the “Investment Company Act”);

 

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

 

WHEREAS, the Company
desires to retain the Advisor to furnish investment advisory services to the Company and to provide for the administrative services
necessary for the operation of the Company on the terms and conditions set forth herein, and the Advisor wishes to be retained
to provide such services.

 

AGREEMENT

 

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

 

1.           Duties
of the Advisor.

 

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

 

(i)       in
accordance with the investment objectives, policies and restrictions that are set forth in the Company’s Registration Statement
on Form N-2 filed with the Securities and Exchange Commission (the “SEC”) (File No. 333-202399), as amended
from time to time (the “Registration Statement”);

 

(ii)      in
accordance with all other applicable federal and state laws, rules and regulations, and the Company’s Articles of Amendment
and Restatement (the “Articles”) and bylaws (the “Bylaws”), in each case as
amended from time to time;

 

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

 

(iv)     in
accordance with the Company’s compliance policies and procedures as applicable to the Advisor and as administered by the
Company’s chief compliance officer.

 

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

 

(i)       determine
the composition and allocation of the portfolio of the Company, 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 Company;

 

     

     

    

 

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

 

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

 

(v)      perform
due diligence on prospective portfolio companies; and

 

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

 

(c)         Power
and Authority. To facilitate the Advisor’s performance of these undertakings, but subject to the restrictions contained
herein, the Company hereby delegates to the Advisor, and the Advisor hereby accepts, the power and authority on behalf of the Company
to effectuate its investment decisions for the Company, including the execution and delivery of all documents relating to the Company’s
investments and the placing of orders for other purchase or sale transactions on behalf of the Company. In the event that the Company
determines to acquire debt financing, the Advisor shall arrange for such financing on the Company’s behalf, subject to the
oversight and approval of the Board.

 

(d)         Administrative
Services. Subject to the supervision, direction and control of the Board, the provisions of the Articles and Bylaws and applicable
federal and state law, the Advisor shall perform, or cause to be performed by other persons, all administrative services in connection
with the operation of the Company.

 

(e)         Acceptance
of Employment. The Advisor hereby accepts such employment and agrees during the term hereof to render the services described
herein for the compensation provided herein, subject to the limitations contained herein.

 

(f)          Sub-Advisors.
The Advisor is hereby authorized to enter into one or more sub-advisory agreements with other investment advisers (each, a “Sub-Advisor”)
pursuant to which the Advisor may obtain the services of the Sub-Advisor(s) to assist the Advisor in fulfilling its responsibilities
hereunder. Specifically, the Advisor may retain a Sub-Advisor to recommend specific securities or other investments based upon
the Company’s investment objectives, policies and restrictions, and work, along with the Advisor, in sourcing, structuring,
negotiating, arranging or effecting the acquisition or disposition of such investments and monitoring investments on behalf of
the Company, subject to the oversight of the Advisor and the Company.

 

(i)       The
Advisor and not the Company shall be responsible for any compensation payable to any Sub-Advisor.

 

(ii)      Any
sub-advisory agreement entered into by the Advisor shall be in accordance with the requirements of the Investment Company Act,
including without limitation the requirements relating to Board approval and the Company’s stockholder approval thereunder,
and other applicable federal and state law.

 

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

 

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

 

(h)         Record
Retention. Subject to review by, and the overall control of, the Board, the Advisor shall keep and preserve for the period
required by the Investment Company Act any books and records relevant to the provision of its investment advisory services to the
Company and shall specifically maintain all books and records with respect to the Company’s portfolio transactions and shall
render to the Board such periodic and special reports as the Board may reasonably request or as may be required under applicable
federal and state law, and shall make such records available for inspection by the Board and its authorized agents, at any time
and from time to time during normal business hours. The Advisor agrees that all records that it maintains for the Company are the
property of the Company and shall surrender promptly to the Company any such records upon the Company’s request and upon
termination of this Agreement pursuant to Section 9, provided that the Advisor may retain a copy of such records.

 

    	 	2	 

     

    

 

The following provisions in this Section 1
shall apply for only so long as the shares of common stock of the Company (“Shares”) are not listed on a national
securities exchange. 

 

(i)          Administrator.
The Advisor shall, upon request by an official or agency administering the securities laws of a state, province or commonwealth
(an “Administrator”), submit to such Administrator the reports and statements required to be distributed
to the Company’s stockholders pursuant to this Agreement, the Registration Statement and applicable federal and state law.

 

(j)          Fiduciary
Duty. It is acknowledged that the Advisor shall have a fiduciary responsibility for the safekeeping and use of all funds and
assets of the Company, whether or not in the Advisor’s immediate possession or control. The Advisor shall not employ, or
permit another to employ, such funds or assets in any manner except for the exclusive benefit of the Company. The Advisor shall
not, by entry into an agreement with any stockholder of the Company or otherwise, contract away the fiduciary obligation owed to
the Company and the Company’s stockholders under common law.

 

2.           The Company’s
Responsibilities and Expenses Payable by the Company.

 

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

 

(b)         Costs.
Subject to the limitations on reimbursement of the Advisor as set forth in Section 2(c) below, the Company, either directly
or through reimbursement to the Advisor, shall bear all other costs and expenses of its operations and transactions, including
(without limitation): expenses deemed to be “organization and offering expenses” of the Company for purposes of Conduct
Rule 2310(a)(12) of Financial Industry Regulatory Authority, Inc. (for purposes of this Agreement, such expenses, exclusive
of commissions, the dealer manager fee and any discounts, are hereinafter referred to as “Organization and Offering
Expenses”); corporate and organizational expenses relating to offerings of Shares, subject to limitations included
in the Agreement; the cost of calculating the Company’s net asset value, including the cost of any third-party valuation
firms; the cost of effecting sales and repurchases of Shares and other securities; fees payable to third parties relating to, or
associated with, making investments and valuing investments, including fees and expenses associated with performing due diligence
reviews of prospective investments; transfer agent and custodial fees, fees and expenses associated with marketing efforts (including
attendance at investment conferences and similar events); federal and state registration fees; federal, state and local taxes;
independent directors’ fees and expenses; brokerage commissions for the Company’s investments; costs of proxy statements,
stockholders’ reports, notices and other filings; fidelity bond, directors and officers errors and omissions liability insurance
and other insurance premiums; direct costs such as printing, mailing, long-distance telephone and staff costs associated with the
Company’s reporting and compliance obligations under the Investment Company Act and applicable federal and state securities
laws, including compliance with the Sarbanes-Oxley Act; fees and expenses associated with accounting, corporate governance, independent
audits and outside legal costs; and all other expenses incurred by the Advisor, any Sub-Advisor or the Company in connection with
administering the Company’s business, including expenses incurred by the Advisor or any Sub-Advisor in performing administrative
services for the Company, and the reimbursement of the compensation of the Company’s chief financial officer and chief compliance
officer paid by the Advisor, to the extent they are not controlling persons of the Advisor or any of its affiliates.

 

Notwithstanding the foregoing, the Company
shall not be liable for Organization and Offering Expenses to the extent that Organization and Offering Expenses, together with
all prior Organization and Offering Expenses, exceed 1.5% of the aggregate gross proceeds from the Company’s offering of
Shares (the “Reimbursable O&O Expenses”).

 

    	 	3	 

     

    

 

The following provisions in this Section 2(c) shall apply
for only so long as the Shares are not listed on a national securities exchange. 

 

(c)         Limitations
on Reimbursement of Expenses.

 

(i) In addition
to the compensation paid to the Advisor pursuant to Section 3, the Company shall reimburse the Advisor for all expenses of the
Company incurred by the Advisor as well as the actual cost of goods and services used for or by the Company and obtained from entities
not affiliated with the Advisor. The Advisor may be reimbursed for the administrative services performed by it on behalf of the
Company; provided, however, the reimbursement shall be an amount equal to the lesser of the Advisor’s actual cost or the
amount the Company would be required to pay third parties for the provision of comparable administrative services in the same geographic
location; and provided, further, that such costs are reasonably allocated to the Company on the basis of assets, revenues, time
records or other method conforming with generally accepted accounting principles. No reimbursement shall be permitted for services
for which the Advisor is entitled to compensation by way of a separate fee. Excluded from the allowable reimbursement shall be:

 

(A) rent or depreciation,
utilities, capital equipment and other costs of administrative items of the Advisor; and

 

(B) salaries, fringe
benefits, travel expenses and other administrative items incurred or allocated to any executive officer or board member of the
Advisor (or any individual performing such services) or a holder of 10% or greater equity interest in the Advisor (or any person
having the power to direct or cause the direction of the Advisor, whether by ownership of voting securities, by contract or otherwise).

 

(d)          Periodic
Reimbursement. Expenses incurred by the Advisor on behalf of the Company and payable pursuant to this Section 2 shall
be reimbursed no less than monthly to the Advisor. The Advisor shall prepare a statement documenting the expenses of the Company
and the calculation of the reimbursement and shall deliver such statement to the Company prior to full reimbursement.

 

3.           Compensation
of the Advisor. The Company agrees to pay, and the Advisor agrees to accept, as compensation for the services provided by the
Advisor hereunder, a base management fee (the “Base Management Fee”) and an incentive fee (the
“Incentive Fee”) as set forth herein. See Appendix A attached hereto for examples of how
these fees are calculated.

 

(a)         Base
Management Fee. The Base Management Fee shall be calculated at an annual rate of 2.0% of the Company’s average gross
assets. The Base Management Fee shall be payable quarterly in arrears, and shall be calculated based on the average value of the
Company’s gross assets at the end of the two most recent completed calendar quarters. All or any part of the Base Management
Fee not taken as to any quarter shall be deferred without interest and may be taken in such other quarter as the Advisor shall
determine.

 

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

 

(i) The first
part, referred to as the “Subordinated Incentive Fee on Income,” shall be calculated and payable quarterly
in arrears based on the Company’s “Pre-Incentive Fee Net Investment Income” for the immediately
preceding quarter. The payment of the Subordinated Incentive Fee on Income shall be subject to payment of a preferred return to
investors each quarter, expressed as a quarterly rate of return on Adjusted Capital (as defined below) at the beginning of the
most recently completed calendar quarter, of 2.0% (8.0% annualized), subject to a “catch up” feature (as described
below).

 

    	 	4	 

     

    

 

For purposes of this fee, “Pre-Incentive
Fee Net Investment Income” means interest income, dividend income and any other income (including any other fees,
other than fees for providing managerial assistance, such as commitment, origination, structuring, diligence and consulting fees
or other fees that the Company receives from portfolio companies) accrued during the calendar quarter, minus the Company’s
operating expenses for the quarter (including the Base Management Fee, expenses payable under this Agreement and any interest expense
and dividends paid on any issued and outstanding preferred shares, but excluding the Incentive Fee). Pre-Incentive Fee Net Investment
Income includes, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments
with payment-in-kind interest and zero coupon securities), accrued income that the Company has not yet received in cash. Pre-Incentive
Fee Net Investment Income does not include any realized capital gains, realized capital losses or unrealized capital appreciation
or depreciation.

 

For purposes of this fee, “Adjusted
Capital” shall mean cumulative gross proceeds generated from sales of the Shares (including proceeds from the Company’s
distribution reinvestment plan) reduced for distributions from non-liquidating dispositions of the Company’s investments
paid to stockholders and amounts paid for share repurchases pursuant to the Company’s share repurchase program.

 

The calculation of the
Subordinated Incentive Fee on Income for each quarter is as follows:

 

(A) No Subordinated
Incentive Fee on Income shall be payable to the Advisor in any calendar quarter in which the Company’s Pre-Incentive Fee
Net Investment Income does not exceed the preferred return rate of 2.0% or 8.0% annualized (the “Preferred Return”)
on Adjusted Capital;

 

(B) 100% of the
Company’s Pre-Incentive Fee Net Investment Income, if any, that exceeds the preferred return but is less than or equal to
2.5% in any calendar quarter (10% annualized) shall be payable to the Advisor, all or any portion of which may be waived or deferred
in the Advisor’s discretion. This portion of the Company’s Subordinated Incentive Fee on Income is referred to as the
“catch up” and is intended to provide the Advisor with an incentive fee of 20% on all of the Company’s Pre-Incentive
Fee Net Investment Income when the Company’s Pre-Incentive Fee Net Investment Income reaches 2.5% (10% annualized) in any
calendar quarter; and

 

(C) For any quarter
in which the Company’s Pre-Incentive Fee Net Investment Income exceeds 2.5% (10% annualized), the Subordinated Incentive
Fee on Income shall equal 20% of the amount of the Company’s Pre-Incentive Fee Net Investment Income, as the Preferred Return
and catch up will have been achieved.

 

(ii) The second
part of the Incentive Fee, referred to as the “Incentive Fee on Capital Gains,” shall be an incentive
fee on capital gains earned on liquidated investments from the portfolio and payable in arrears as of the end of each calendar
year (or upon termination of the investment advisory Agreement). This fee shall equal 20.0% of the Company’s incentive fee
capital gains, which shall equal the Company’s realized capital gains on a cumulative basis from inception, calculated as
of the end of the applicable period, computed net of all realized capital losses and unrealized capital depreciation on a cumulative
basis, less the aggregate amount of any previously paid capital gain incentive fees.

 

(c)         Waiver
or Deferral of Fees.

 

The Advisor shall have
the right to elect to temporarily or permanently waive or defer all or a portion of the Base Management Fee or Incentive Fee that
would otherwise be paid to it. Prior to the payment of any fee to the Advisor, the Company shall obtain written instructions from
the Advisor with respect to any waiver or deferral of any portion of such fees. Any portion of a deferred fee payable to the Advisor
and not paid over to the Advisor with respect to any month, calendar quarter or year shall be deferred without interest and may
be paid over in any such other month prior to the occurrence of termination of this Agreement, as the Advisor may determine upon
written notice to the Company. Any of the fees payable to the Advisor under this Agreement for any partial month or calendar quarter
shall be appropriately prorated.

 

    	 	5	 

     

    

 

4.           Covenants
of the Advisor.

 

(a)         Advisor
Status. The Advisor covenants that it will be registered as an investment Advisor under the Advisers Act as of the date the
Company commences investment operations and will maintain such registration. The Advisor agrees that its activities will at all
times be in compliance in all material respects with all applicable federal and state laws governing its operations and investments.

 

The following provisions in this Section 4
shall apply for only so long as the Shares are not listed on a national securities exchange. 

 

(b)         Reports
to Stockholders. The Advisor shall prepare or shall cause to be prepared and distributed to the Company’s stockholders
during each year the following reports of the Company (either included in a periodic report filed with the SEC or distributed in
a separate report):

 

(i) Quarterly
Reports. Within 60 days of the end of each calendar quarter, a report containing the same financial information contained in the
Company’s Quarterly Report on Form 10-Q filed by the Corporation under the Securities Exchange Act of 1934, as amended.

 

(ii) Annual Report.
Within 120 days after the end of the Company’s fiscal year, an annual report containing:

 

(A) A balance sheet
as of the end of each fiscal year and statements of income, equity and cash flow, for the year then ended, all of which shall be
prepared in accordance with generally accepted accounting principles and accompanied by an auditor’s report containing an
opinion of an independent certified public accountant;

 

(B) A report of
the activities of the Company during the period covered by the report;

 

(C) Where forecasts
have been provided to the Company’s stockholders, a table comparing the forecasts previously provided with the actual results
during the period covered by the report; and

 

(D) A report setting
forth distributions by the Company for the period covered thereby and separately identifying distributions from (a) cash flow from
operations during the period, (b) cash flow from operations during a prior period which have been held as reserves and (c) proceeds
from disposition of the Company’s assets.

 

(iii) Previous
Reimbursement Reports. The Advisor shall prepare or shall cause to be prepared a report, prepared in accordance with the American
Institute of Certified Public Accountants United States Auditing Standards relating to special reports, and distributed to stockholders
not less than annually, containing an itemized list of the costs reimbursed to the Advisor pursuant to Section 2(c) for the previous
fiscal year. The special report shall at a minimum provide:

 

(A) A review of
the time records of individual employees, the costs of whose services were reimbursed; and

 

(B) A review of
the specific nature of the work performed by each such employee.

 

(iv) Proposed
Reimbursement Reports. The Advisor shall prepare or shall cause to be prepared a report containing an itemized estimate of all
proposed expenses for which it shall receive reimbursements pursuant to Section 2(c) for the next fiscal year, together with a
breakdown by year of such expenses reimbursed in each of the last five public programs formed by the Advisor.

 

(c)         Reports
to Administrators. The Advisor shall, upon written request of any Administrator, submit any of the reports and statements to
be prepared and distributed by it pursuant to this Section 4 to such Administrator.

 

    	 	6	 

     

    

 

(d)         Reserves.
In performing its duties hereunder, the Advisor shall cause the Company to provide for adequate reserves for normal replacements
and contingencies (but not for payment of fees payable to the Advisor hereunder) by causing the Company to retain a reasonable
percentage of proceeds from offerings and revenues.

 

(e)         Recommendations
Regarding Reviews. From time to time and not less than quarterly, the Advisor must review the Company’s accounts to determine
whether cash distributions are appropriate. The Company may, subject to authorization by the Board, distribute pro rata to its
stockholders funds received by the Company which the Advisor deems unnecessary to retain in the Company.

 

(f)          Temporary
Investments. The Advisor shall, in its sole discretion, temporarily place proceeds from offerings by the Company into short-term,
highly liquid investments which, in its reasonable judgment, afford appropriate safety of principal during such time as it is determining
the composition and allocation of the portfolio of the Company and the nature, timing and implementation of any changes thereto
pursuant to Section 1(b); provided however, that the Advisor shall be under no fiduciary obligation to select any such short-term,
highly-liquid investment based solely on any yield or return of such investment. The Advisor shall cause any proceeds of the offering
of the Company’s securities not committed for investment within the later of two years from the date of effectiveness of
the Registration Statement or one year from termination of the Company’s offering, unless a longer period is permitted by
the applicable Administrator, to be paid as a distribution to the stockholders of the Company as a return of capital without deduction
of Front End Fees (as defined below).

 

5.           Brokerage Commissions;
Limitations on Front End Fees; Period of Offering; Assessments.

 

(a)         Brokerage
Commissions. The Advisor is hereby authorized, to the fullest extent now or hereafter permitted by law, to cause the Company
to pay a member of a national securities exchange, broker or dealer an amount of commission for effecting a securities transaction
in excess of the amount of commission another member of such exchange, broker or dealer would have charged for effecting that transaction,
if the Advisor determines in good faith, 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 such amount of commission is reasonable in relation to the value of the brokerage
and/or research services provided by such member, broker or dealer, viewed in terms of either that particular transaction or its
overall responsibilities with respect to the Company’s portfolio, and constitutes the best net results for the Company.

 

The following provisions in this Section 5
shall apply for only so long as the Shares are not listed on a national securities exchange. 

 

(b)         Limitations.
Notwithstanding anything herein to the contrary:

 

(i) All fees
and expenses paid by any party for any services rendered to organize the Company and to acquire assets for the Company (“Front
End Fees”) shall be reasonable and shall not exceed 15% of the gross offering proceeds, regardless of the source
of payment. Any reimbursement to the Advisor or any other person for deferred organizational and offering expenses, including any
interest thereon, if any, will be included within this 15% limitation.

 

(ii) The Advisor
shall commit at least 82% of the gross offering proceeds toward the investment or reinvestment of assets and reserves as set forth
in Section 4(d) on behalf of the Company. The remaining proceeds may be used to pay Front End Fees.

 

    	 	7	 

     

    

 

6.           Other
Activities of the Advisor.

 

The services of the Advisor
to the Company are not exclusive, and the Advisor may engage in any other business or render similar or different services to others
including, without limitation, the direct or indirect sponsorship or management of other investment based accounts or commingled
pools of capital, however structured, having investment objectives similar to those of the Company, so long as its services to
the Company hereunder are not impaired thereby, and nothing in this Agreement shall limit or restrict the right of any manager,
partner, member (including its members and the owners of its members), officer or employee of the Advisor to engage in any other
business or to devote his or her time and attention in part to any other business, whether of a similar or dissimilar nature, or
to receive any fees or compensation in connection therewith (including fees for serving as a director of, or providing consulting
services to, one or more of the Company’s portfolio companies, subject to applicable law). The Advisor 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 Company are or may become interested in the Advisor and its affiliates, as directors, officers, employees,
partners, stockholders, members, managers or otherwise, and that the Advisor and directors, officers, employees, partners, stockholders,
members and managers of the Advisor and its affiliates are or may become similarly interested in the Company as stockholders or
otherwise.

 

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

 

8.            Indemnification;
Limitation of Liability.

 

(a)         Indemnification.
The Advisor (and its officers, managers, partners, members (and their members, including the owners of their members), agents,
employees, controlling persons and any other person or entity affiliated with the Advisor) shall not be liable to the Company for
any action taken or omitted to be taken by the Advisor or such other person in connection with the performance of any of its duties
or obligations under this Agreement or otherwise as an investment Advisor of the Company (except to the extent specified in Section 36(b)
of the Investment Company Act concerning loss resulting from a breach of fiduciary duty (as the same is finally determined by judicial
proceedings)) with respect to the receipt of compensation for services, and the Company shall indemnify, defend and protect the
Advisor (and its officers, managers, partners, members (and their members, including the owners of their members), agents, employees,
controlling persons and any other person or entity affiliated with the Advisor, 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 Company or its stockholders) arising out of or otherwise based
upon the performance of any of the Advisor’s duties or obligations under this Agreement or otherwise as an investment Advisor
of the Company, to the extent such damages, liabilities, costs and expenses are not fully reimbursed by insurance, and to the extent
that such indemnification would not be inconsistent with the laws of the State of Maryland, the Articles or the provisions of Section II.G
of the Omnibus Guidelines published by the North American Securities Administrators Association on March 29, 1992, as amended
from time to time.

 

The following provisions in this Section 8 shall apply
for only so long as the Shares are not listed on a national securities exchange. 

 

(b)         Limitations
on Indemnification. Notwithstanding Section 8(a) to the contrary, the Company shall not provide for indemnification of
the Indemnified Parties for any liability or loss suffered by the Indemnified Parties, nor shall the Company provide that any of
the Indemnified Parties be held harmless for any loss or liability suffered by the Company, unless all of the following conditions
are met:

 

(i) the Indemnified
Party has determined, in good faith, that the course of conduct which caused the loss or liability was in the best interests of
the Company;

 

(ii) the Indemnified
Party was acting on behalf of or performing services for the Company;

 

(iii) such liability
or loss was not the result of negligence or misconduct by the Indemnified Party; and

 

(iv) such indemnification
or agreement to hold harmless is recoverable only out of the Company’s net assets and not from stockholders.

 

    	 	8	 

     

    

 

Furthermore, the Indemnified
Party shall not be indemnified for any losses, liabilities or expenses arising from or out of 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 on the merits of each count involving alleged securities law violations;

 

(ii) such claims
have been dismissed with prejudice on the merits by a court of competent jurisdiction; or

 

(iii) a court
of competent jurisdiction approves a settlement of the claims against a particular indemnitee and finds that indemnification of
the settlement and related costs should be made, and the court of law considering the request for indemnification has been advised
of the position of the SEC and the published position of any state securities regulatory authority in which securities of the Company
were offered or sold as to indemnification for violations of securities laws.

 

(c)         Advancement
of Funds. The Company shall be permitted to advance funds to the Indemnified Party for legal expenses and other costs incurred
as a result of any legal action for which indemnification is being sought and will do so if:

 

(i) the proceeding
relates to acts or omissions with respect to the performance of duties or services on behalf of the Company;

 

(ii) the Indemnified
Party provides the Company with written affirmation of his or her good faith belief that the standard of conduct necessary for
indemnification by the Company has been met;

 

(iii) the legal
proceeding was initiated by a third party who is not a stockholder or, if by a stockholder of the Company acting in his or her
capacity as such, a court of competent jurisdiction approves such advancement; and

 

(iv) the Indemnified
Party provides the Company with a written agreement to repay the amount paid or reimbursed by the Company, together with the applicable
legal rate of interest thereon, in cases in which such Indemnified Party is found not to be entitled to indemnification.

 

9.           Effectiveness,
Duration and Termination of Agreement.

 

(a)         Term
and Effectiveness. This Agreement shall become effective as of the date that the Company meets the minimum offering requirement,
as such term is defined in the prospectus contained in the Registration Statement as declared effective by the SEC. This Agreement
shall remain in effect for two years from the date the Company meets such minimum offering requirement, and thereafter shall continue
automatically for successive one-year periods, provided that such continuance is specifically approved at least annually by (i) the
vote of the Board, or by the vote of a majority of the outstanding voting securities of the Company and (ii) the vote of a
majority of the Company’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 (“Independent Directors”),
in accordance with the requirements of the Investment Company Act.

 

(b)         Termination.
This Agreement may be terminated at any time, without the payment of any penalty, (i) by the Company upon 60 days’ prior
written notice to the Advisor, (A) upon the vote of a majority of the outstanding voting securities of the Company or (B) by
the vote of the Company’s Independent Directors, or (ii) by the Advisor upon 120 days’ prior written notice to
the Company. This Agreement shall automatically terminate in the event of its “assignment” (as such term is defined
for purposes of Section 15(a)(4) of the Investment Company Act). The provisions of Section 8 shall remain in full force
and effect, and the Advisor shall remain entitled to the benefits thereof, notwithstanding any termination of this Agreement.

 

    	 	9	 

     

    

 

(c)         Payments
to and Duties of Advisor Upon Termination.

 

(i) After the
termination of this Agreement, the Advisor shall not be entitled to compensation for further services provided hereunder, except
that it shall be entitled to receive from the Company within 30 days after the effective date of such termination all unpaid reimbursements
and all earned but unpaid fees payable to the Advisor prior to termination of this Agreement.

 

(ii) The Advisor
shall promptly upon termination:

 

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

 

(B) Deliver to
the Board all assets and documents of the Company then in custody of the Advisor; and

 

(C) Cooperate with
the Company to provide an orderly management transition.

 

The following provisions in this Section 9
shall apply for only so long as the Shares are not listed on a national securities exchange. 

 

(d)         Other
Matters. Without the approval of holders of a majority of the Shares entitled to vote on the matter, the Advisor shall not:
(i) amend this Agreement except for amendments that do not adversely affect the interests of the stockholders; (ii) voluntarily
withdraw as the Advisor unless such withdrawal would not affect the tax status of the Company and would not materially adversely
affect the stockholders; (iii) appoint a new Advisor; (iv) sell all or substantially all of the Company’s assets
other than in the ordinary course of the Company’s business; or (v) cause the merger or other reorganization of the
Company. In the event that the Advisor should withdraw pursuant to (ii) above, the withdrawing Advisor shall pay all expenses
incurred as a result of its withdrawal. The Company may terminate the Advisor’s interest in the Company’s revenues,
expenses, income, losses, distributions and capital by payment of an amount equal to the then present fair market value of the
terminated Advisor’s interest, determined by agreement of the terminated Advisor and the Company. If the Company and the
Advisor cannot agree upon such amount, then such amount will be determined in accordance with the then current rules of the American
Arbitration Association. The expenses of such arbitration shall be borne equally by the terminated Advisor and the Company. The
method of payment to the terminated Advisor must be fair and must protect the solvency and liquidity of the Company.

 

10.          Conflicts of Interests
and Prohibited Activities.

 

This Section 10 shall apply for only
so long as the Shares are not listed on a national securities exchange. 

 

(a)          No
Exclusive Agreement. The Advisor is not hereby granted or entitled to an exclusive right to sell or exclusive employment to
sell assets for the Company.

 

(b)         Rebates,
Kickbacks and Reciprocal Arrangements.

 

(i) The Advisor
agrees that it shall not (A) receive or accept any rebate, give-up or similar arrangement that is prohibited under applicable federal
or state securities laws, (B) participate in any reciprocal business arrangement that would circumvent provisions of applicable
federal or state securities laws governing conflicts of interest or investment restrictions or (C) enter into any agreement, arrangement
or understanding that would circumvent the restrictions against dealing with affiliates or promoters under applicable federal or
state securities laws.

 

(ii) The Advisor
agrees that it shall not directly or indirectly pay or award any fees or commissions or other compensation to any person or entity
engaged to sell the Shares or give investment advice to a potential stockholder; provided, however, that this subsection shall
not prohibit the payment to a registered broker-dealer of sales commissions for selling or distributing Shares.

 

    	 	10	 

     

    

 

(c)          Commingling.
The Advisor covenants that it shall not permit or cause to be permitted the Company’s funds to be commingled with the corporations
of any other entity. Nothing in this Section 10(c) shall prohibit the Advisor from establishing a master fiduciary account pursuant
to which separate sub-trust accounts are established for the benefit of affiliated programs, provided that the Company’s
funds are protected from the claims of other programs and creditors of such programs.

 

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.

 

12.          Amendments.
This Agreement may be amended in writing by mutual consent of the parties hereto, subject to the provisions of the Investment Company
Act and the Articles.

 

13.          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.

 

14.          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. 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.
For so long as the Company is regulated as a BDC under the Investment Company Act, this Agreement shall also be construed in accordance
with the applicable provisions of the Investment Company Act. In such case, to the extent the applicable laws of the State of New
York, or any of the provisions herein, conflict with the provisions of the Investment Company Act, the latter shall control.

 

    	 	11	 

     

    

 

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

 

	 	Company:
	 	 
	 	Terra Income Fund 6, Inc.

 

	 	By:	/s/ Vikram S. Uppal
	 	Name:	Vikram S. Uppal
	 	Title:	Chief Executive Officer

 

	 	ADVISOR:
	 	 
	 	Terra Income Advisors, LLC

 

	 	By:	/s/ Vikram S. Uppal
	 	Name:	Vikram S. Uppal
	 	Title:	Chief Executive Officer

 

[Signature page to
Investment Advisory and Administrative Services Agreement]

 

     

     

    

 

Appendix A

 

Example 1: Subordinated Incentive Fee on Income for Each Calendar
Quarter

 

Scenario 1 

 

Assumptions 

 

Investment income (including interest, dividends, fees,
etc.) = 1.25%

Hurdle rate(1) = 2.0%

Base management fee(2) = 0.5%

Other expenses (legal, accounting, custodian, transfer
agent, etc.)(3) = 0.2%

Pre-incentive fee net investment income

(investment income – (base management
fee + other expenses)) = 0.55%

 

Pre-incentive fee net investment income does
not exceed the hurdle rate; therefore, there is no subordinated incentive fee on income payable.

 

Scenario 2 

 

Assumptions 

 

Investment income (including interest, dividends, fees,
etc.) = 2.9%

Hurdle rate(1) = 2.0%

Base management fee(2) = 0.5%

Other expenses (legal, accounting, custodian, transfer
agent, etc.)(3) = 0.2%

Pre-incentive fee net investment income

(investment income – (base management
fee + other expenses)) = 2.2%

 

Subordinated incentive fee on income = 100% × pre-incentive
fee net investment income (subject to “catch-up”)(4)

 

	Catch up	= 100% x (2.2% – 2.0%)
	 	= 0.2%

 

Pre-incentive fee net investment income exceeds
the hurdle rate, but does not fully satisfy the “catch-up” provision; therefore, the subordinated incentive fee on
income is 0.2%.

 

Scenario 3 

 

Assumptions 

 

Investment income (including interest, dividends, fees,
etc.) = 3.5%

Hurdle rate(1) = 2.0%

Base management fee(2) = 0.5%

Other expenses (legal, accounting, custodian, transfer
agent, etc.)(3) = 0.2%

Pre-incentive fee net investment income

(investment income – (base management
fee + other expenses)) = 2.8%

 

Catch up = 100% × pre-incentive fee net investment
income (subject to “catch-up”)(4)

 

Subordinated incentive fee on income = 100% × “catch-up”
+ (20.0% × (pre-incentive fee net investment income – 2.5%))

 

	Catch up	 	= 2.5% – 2.0%
	 	 	= 0.50%

 

Subordinated incentive fee on income = (100% ×
0.5%) + (20.0% × (2.8% – 2.5%))

 

	= 0.5% + (20% × 0.3%)
	= 0.5% + 0.06%
	= 0.56%

 

    	 	A-1	 

     

    

 

Pre-incentive fee net investment income exceeds
the hurdle rate and fully satisfies the “catch-up” provision, therefore the subordinated incentive fee on income is
0.56%.

 

	(1)	Represents 8.0% annualized hurdle rate. 

 

	(2)	Represents 2.0% annualized base management fee on average gross assets. Examples assume assets are equal to adjusted capital. 

 

	(3)	Excludes organizational and offering expenses. 

 

	(4)	The “catch-up” provision is intended to provide our advisor with an incentive fee of 20.0% on all pre-incentive fee net investment income when our net investment income exceeds 2.5% in any calendar quarter. 

 

Example 2: Incentive Fee on Capital Gains 

Scenario 1 

 

Assumptions 

 

Year 1: $20 million investment made in Company
A (“Investment A”), and $30 million investment made in Company B (“Investment B”)

 

Year 2: Investment A sold for $50 million and
fair market value (“FMV”) of Investment B determined to be $32 million

 

Year 3: FMV of Investment B determined to be
$25 million

 

Year 4: Investment B sold for $31 million

 

The incentive fee on capital gains would be:

 

Year 1: None

 

Year 2: Incentive fee on capital gains of $6
million ($30 million realized capital gains on sale of Investment A multiplied by 20.0%)

 

Year 3: None à $5
million (20.0% multiplied by ($30 million cumulative realized capital gains less $5 million cumulative unrealized capital depreciation))
less $6 million (previous capital gains fee paid in Year 2)

 

Year 4: Incentive fee on capital gains of $200,000
à $6.2 million ($31 million cumulative realized capital gains multiplied by
20.0%) less $6 million (incentive fee on capital gains taken in Year 2)

 

Scenario 2 

 

Assumptions 

 

Year 1: $20 million investment made in Company
A (“Investment A”), $30 million investment made in Company B (“Investment B”) and $25 million investment
made in Company C (“Investment C”)

 

Year 2: Investment A sold for $50 million,
FMV of Investment B determined to be $25 million and FMV of Investment C determined to be $25 million

 

Year 3: FMV of Investment B determined to be
$27 million and Investment C sold for $30 million

 

Year 4: FMV of Investment B determined to be
$35 million

 

Year 5: Investment B sold for $20 million

 

The incentive fee on capital gains would be:

 

Year 1: None

 

Year 2: Incentive fee on capital gains of $5
million à 20.0% multiplied by $25 million ($30 million realized capital
gains on Investment A less unrealized capital depreciation on Investment B)

 

    	 	A-2	 

     

    

 

Year 3: Incentive fee on capital gains of $1.4
million à $6.4 million (20.0% multiplied by $32 million ($35 million cumulative
realized capital gains less $3 million unrealized capital depreciation)) less $5 million incentive fee on capital gains received
in Year 2

 

Year 4: None

 

Year 5: None à $5
million (20.0% multiplied by $25 million (cumulative realized capital gains of $35 million less realized capital losses of $10
million)) less $6.4 million cumulative incentive fee on capital gains paid in Year 2 and Year 3

 

	*	The returns shown are for illustrative purposes only. No incentive fee is payable to Terra Income Advisors in any calendar quarter in which our pre-incentive fee net investment income does not exceed the hurdle rate. Positive returns are shown to demonstrate the fee structure and there is no guarantee that positive returns will be realized. Actual returns may vary from those shown in the examples above. 

 

    	 	A-3

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