Document:

Exhibit 10.3

 

BOARD NOMINATION RIGHTS AGREEMENT

 

THIS BOARD NOMINATION RIGHTS AGREEMENT (this
“Agreement”) is made and entered into as of March 26, 2021 (the “Effective Time”), by and
among SOC Telemed, Inc., a Delaware corporation (the “Company”), and Christopher Gallagher, M.D. (the “Designee”).
Capitalized terms used but not otherwise defined in this Agreement have the respective meanings given to them in the Purchase Agreement
(as defined below).

 

WHEREAS, in connection with, and in consideration
of, the transactions contemplated by that certain Membership Interest and Stock Purchase Agreement dated as of March 26, 2021 (the
“Purchase Agreement”), by and among the Company, Access Physicians Management Services Organization, LLC (“Access
Physicians”), HEP AP-B Corp., Health Enterprise Partners III, L.P., the persons listed on Exhibit A thereto (collectively
with Health Enterprise Partners III, L.P., the “Sellers”), and AP Seller Rep, LLC, as representative of the
Sellers, pursuant to which the Company will, among other things, acquire Access Physicians (such collective transactions, the “Acquisition”);

 

WHEREAS, pursuant to the terms of the Purchase
Agreement, the Designee, in his capacity as a Seller, will receive as consideration at the Closing of the Acquisition an aggregate
of 3,316,679 shares (the “Designee Shares”) of Class A common stock, par value $0.0001 per share (the “Class
A Common Stock”), of the Company; and

 

WHEREAS, in furtherance of the foregoing,
the Company and the Designee desire to enter into this Agreement to provide for the initial appointment of the Designee to the
Board of Directors of the Company (the “Board”) and certain other matters, as provided in this Agreement.

 

NOW, THEREFORE, in consideration of the
mutual covenants contained herein and other good and valuable consideration, the receipt and sufficient of which are hereby acknowledged,
each of the parties to this Agreement agrees as follows:

 

    

     

    

 

Article
I

BOARD REPRESENTATION

 

Section 1.1 Board Nomination Right.

 

(a) As
promptly as reasonably practicable (and in no event later than ten (10) Business Days) following the Effective Time, the Company
will take all necessary action to increase the size of the Board by one director and appoint the Designee as a Class I Director
(as defined in the Company’s Second Amended and Restated Certificate of Incorporation)
to fill the vacancy thereby created. The appointment of the Designee will be subject to the completion by the Designee of customary
director onboarding documentation, including completion of a background check that is acceptable to the Nominating and Corporate
Governance Committee of the Board (or any successor thereto) acting in good faith. As a condition to the Designee’s
appointment to the Board and nomination for election as a Class I Director at the Company’s annual meetings of stockholders
(A) the Designee must in all material respects provide to the Company (1) all information reasonably requested by the
Company that is required to be or customarily disclosed for directors, candidates for directors, and their Affiliates and Representatives
in a proxy statement or other filings under applicable Law or regulation or stock exchange rules or listing standards, in each
case, relating to their nomination or election as a director of the Company or the Company’s operations in the ordinary course
of business and (2) information reasonably requested by the Company in connection with assessing eligibility, independence
and other criteria applicable to directors or satisfying compliance and legal or regulatory obligations, in each case, relating
to their nomination or election as a director of the Company or the Company’s operations in the ordinary course of business,
with respect to the Designee; (B) the Designee must be qualified to serve as a director of the Company under the General Corporation
Law of the State of Delaware (“DGCL”) to the same extent as all other directors of the Company; (C) the Designee
must satisfy the requirements set forth in the Company’s Corporate Governance Guidelines, Code of Business Conduct and Ethics
and Insider Trading Policy, in each case as currently in effect (the “Specified Guidelines”) with such changes
thereto (or such successor policies) as are applicable to all other directors, as are adopted in good faith by the Board, and do
not by their terms adversely impact the Designee relative to all other directors (for the avoidance of doubt, the Designee shall
not be required to qualify as an independent director under applicable stock exchange rules and federal securities Laws); and (D)
the Designee must execute and deliver to the Company an irrevocable resignation letter in the form attached hereto as Exhibit
A pursuant to which the Designee’s resignation shall become effective upon the circumstances set forth therein (the “Resignation
Letter”).

 

(b) From
and after the Effective Time until the termination of this Agreement in accordance with Section 3.1, and subject to the
terms and conditions of this Section 1.1 and applicable Law, the Company agrees to include the Designee in its slate
of nominees for election as directors of the Company at each of the Company’s meetings of stockholders or action by written
consent at which Class I Directors are to be elected and use its reasonable efforts to cause the election of the Designee to the
Board (for the avoidance of doubt, the Company will be required to use substantially the same level of efforts and provide substantially
the same level of support as is used and/or provided for the other director nominees of the Company with respect to the applicable
meeting of stockholders or action by written consent).

 

(c) At
all times while serving as a member of the Board (and as a condition to such service), the Designee shall comply with all policies,
codes and guidelines applicable to Board members, including keeping confidential all non-public information provided to or obtained
by the Designee by reason of his position as a director of the Company in accordance with fiduciary duties, applicable Law and
all applicable Board policies, codes and guidelines, including without limitation the Specified Guidelines. The Designee acknowledges
that he is aware that applicable securities Laws prohibit any Person who has received material, non-public information from purchasing
or selling securities on the basis of such information or from communicating such information to any other Person under circumstances
in which it is reasonably foreseeable that such Person may trade securities on the basis of such information. The Designee agrees
that neither he nor any of his Representatives will use or communicate any material non-public information regarding the Company
in violation of such laws.

 

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(d) The
Company shall indemnify the Designee in his capacity as a director of the Company on the same basis as all other members of the
Board and pursuant to indemnity agreements with terms that are no less favorable to the Designee than the indemnity agreements
entered into between the Company and its other employee directors.

 

(e) For
so long as the Designee serves as a director on the Board, the Company (i) shall provide the Designee with the same expense reimbursement,
benefits, indemnity, exculpation and other arrangements provided to the other directors on the Board and (ii) shall not amend,
alter or repeal any right to indemnification or exculpation covering or benefiting the Designee as and to the extent consistent
with applicable Law, including but not limited to any rights contained in the governing documents of the Company (except to the
extent such amendment or alteration permits the Company to provide broader indemnification or exculpation rights on a retroactive
basis than permitted prior thereto).

 

(f) The
Company shall (i) purchase directors’ and officers’ liability insurance in an amount determined by the Board to be
reasonable and customary and (ii) for so long as the Designee serves as a director on the Board, maintain such directors’
and officers’ liability insurance coverage with respect to the Designee; provided, that upon removal or resignation
of the Designee for any reason, the Company shall take all actions reasonably necessary to extend such directors’ and officers’
liability insurance coverage with respect to the Designee for a period of not less than six (6) years from any such event in respect
of any act or omission of the Designee occurring at or prior to such event.

 

Article
II

STANDSTILL PROVISIONS

 

Section 2.1 Transfer Restrictions.

 

(a) The
Designee agrees that, without the prior written consent of the Company, the Designee shall not, and shall not cause or direct any
of his Affiliates to, during the period commencing on the Resignation Date and continuing to and including the date that is three
(3) months after the Resignation Date (such period, the “Restricted Period”), (i) offer, sell, contract to sell,
pledge, grant any option to purchase, lend or otherwise dispose of any shares of Class A Common Stock, or any options or warrants
to purchase any shares of Class A Common Stock, or any securities convertible into, exchangeable for or that represent the right
to receive shares of Class A Common Stock (such options, warrants or other securities, collectively, “Derivative Instruments”),
including without limitation any such shares, including the Designee Shares, or Derivative Instruments now owned or hereafter acquired
by the Designee; (ii) engage in any hedging or other transaction or arrangement (including, without limitation, any short sale
or the purchase or sale of, or entry into, any put or call option, or combination thereof, forward, swap or any other derivative
transaction or instrument, however described or defined) which is designed to or which reasonably could be expected to lead to
or result in a sale, loan, pledge or other disposition (whether by the Designee or someone other than the Designee), or transfer
of any of the economic consequences of ownership, in whole or in part, directly or indirectly, of any shares of Class A Common
Stock or Derivative Instruments, whether any such transaction or arrangement (or instrument provided for thereunder) would be settled
by delivery of Class A Common Stock or other securities, in cash or otherwise (any such sale, loan, pledge or other disposition,
or transfer of economic consequences, a “Transfer”); or (iii) otherwise publicly announce any intention to engage
in or cause any action or activity described in clause (i) above or transaction or arrangement described in clause (ii) above.
The Designee represents and warrants that he is not, and has not caused or directed any of his Affiliates to be or become, currently
a party to any agreement or arrangement that provides for, is designed to or which reasonably could be expected to lead to or result
in any Transfer during the Restricted Period.

 

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(b) The
Designee agrees and consents to the entry during the Restricted Period of stop transfer instructions with the Company’s transfer
agent and registrar against any Transfer of the Designee’s shares of Class A Common Stock, including the Designee Shares,
except in compliance with the foregoing restrictions.

 

(c) The
Designee agrees that, to the extent that the terms of this Section 2.1 conflict with or are in any way inconsistent with
any prior investor rights agreement, prior registration rights agreement, prior market standoff agreement or any other prior lock-up
or similar prior agreement, including the Purchase Agreement, to which the Designee and the Company may be a party, the provisions
of this Section 2.1 supersede such prior agreement.

 

Article
III

MISCELLANEOUS

 

Section 3.1 Termination. This
Agreement shall terminate automatically and become void and of no further force or effect, without any notice or other action by
any Person, upon the earliest to occur after the date of this Agreement of either of the following events: (i) the Designee ceases
to beneficially own at least seventy-five percent (75%) of the Designee Shares and (ii) the employment of the Designee is terminated
by his applicable employer within the Company group for any reason (each such event, a “Resignation Event”);
provided, however, notwithstanding anything to the contrary herein, the provisions set forth in Section 2.1
and this Section 3.1 shall remain operative and survive the termination of this Agreement; provided, further,
that, notwithstanding the occurrence of a Resignation Event, the Designee shall not be obligated to resign from the Board and the
Resignation Letter shall not become effective unless and until the Board (by action of a majority of the directors (other than
the Designee) then serving on the Board) requests in writing that the Designee resigns as a director of the Company (such time
of the Board’s such written request, the “Resignation Date”).

 

Section 3.2 Class A Common Stock Measurement.
Notwithstanding anything herein to the contrary, all measurements and references in this Agreement related to the Class A Common
Stock shall be appropriately adjusted for stock splits, stock combinations, stock reclassification, stock distributions and the
like.

 

Section 3.3 Notices. All notices,
requests and other communications to either party hereunder shall be in writing (including electronic transmission) and shall be
given in accordance with the provisions of the Purchase Agreement (with any notices, requests and other communications directed
to (a) the Designee to be given in the manner to be provided to the Seller Representative in Section 11.1 of the Purchase Agreement
and (b) to the Company to be given in the manner to be provided to Buyer in Section 11.1 of the Purchase Agreement).

 

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Section 3.4 Severability. If any
term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law or public policy,
all other terms, conditions and provisions of this Agreement shall nevertheless remain in full force and effect. Upon such determination
that any term or other provision is invalid, illegal or incapable of being enforced, the parties shall negotiate in good faith
to modify this Agreement so as to effect the original intent of the parties hereto as closely as possible in a mutually acceptable
manner in order that the transactions contemplated by this Agreement be consummated as originally contemplated to the fullest extent
possible.

 

Section 3.5 Binding Effect; Assignment.
This Agreement shall not be assignable by any of the parties to this Agreement. This Agreement, however, shall be binding on all
successors and permitted assigns of the parties hereto.

 

Section 3.6 No Third Party Beneficiaries.
This Agreement is exclusively for the benefit of the parties hereto, and their respective successors and permitted assigns, and
this Agreement shall not be deemed to confer upon or give to any other third party any remedy, claim, liability, reimbursement,
cause of action or other right by virtue of any applicable law in any jurisdiction to enforce any of the terms to this Agreement.

 

Section 3.7 Entire Agreement.
This Agreement constitutes the entire agreement among the parties hereto with respect to the subject matter of this Agreement and
supersedes all other prior agreements and understandings, both written and oral, between the parties hereto with respect to the
subject matter of this Agreement. Each party hereto acknowledges and agrees that, in entering into this Agreement, such party has
not relied on any promises or assurances, written or oral, that are not reflected in this Agreement.

 

Section 3.8 Governing Law. This
Agreement, and all claims or causes of action based upon, arising out of, or related to this Agreement or the transactions contemplated
hereby, shall be governed by, and construed in accordance with, the Laws of the State of Delaware, without giving effect to principles
or rules of conflict of Laws to the extent such principles or rules would require or permit the application of Laws of another
jurisdiction.

 

Section 3.9 Jurisdiction; WAIVER OF
TRIAL BY JURY. Any Proceeding based upon, arising out of or related to this Agreement or the transactions contemplated hereby
may be brought in federal and state courts located in the State of Delaware, and each of the parties irrevocably submits to the
exclusive jurisdiction of each such court in any such Proceeding, waives any objection it may now or hereafter have to personal
jurisdiction, venue or to convenience of forum, agrees that all claims in respect of the Proceeding shall be heard and determined
only in any such court, and agrees not to bring any Proceeding arising out of or relating to this Agreement or the transactions
contemplated hereby in any other court. Nothing herein contained shall be deemed to affect the right of any party to serve process
in any manner permitted by Law or to commence Proceedings or otherwise proceed against any other party in any other jurisdiction,
in each case, to enforce judgments obtained in any Proceeding brought pursuant to this Section 3.9. EACH OF THE PARTIES
HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY ACTION BASED UPON, ARISING OUT OF OR RELATED TO THIS
AGREEMENT OR THE SUBJECT MATTER HEREOF.

 

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Section 3.10 Specific Performance.
The parties hereto acknowledge that the rights of each party hereto to consummate the transactions contemplated hereby are unique
and recognize and affirm that in the event of a breach of this Agreement by any party, money damages may be inadequate and the
non-breaching party may have no adequate remedy at law. Accordingly, the parties hereto agree that such non-breaching party shall
have the right to seek to enforce its rights and the other party’s obligations hereunder by an action or actions for specific
performance and/or injunctive relief (without posting of bond or other security), including any order, injunction or decree sought
by such non-breaching party to cause the other party to perform its/their respective agreements and covenants contained in this
Agreement and to cure breaches of this Agreement, without the necessity of proving actual harm and/or damages or posting a bond
or other security therefore.

 

Section 3.11 Counterparts. This
Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which taken together shall
constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by facsimile or
e-mail shall be as effective as delivery of a manually executed counterpart of the Agreement.

 

Section 3.12 Amendment. This Agreement
may be amended, modified or supplemented at any time only by the written consent of each of the parties hereto, and any amendment,
modification or supplement so effected shall be binding on each of the parties hereto.

 

Section 3.13 Rights Cumulative.
Except as otherwise expressly limited by this Agreement, all rights and remedies of each of the parties hereto under this Agreement
will be cumulative, and the exercise of one or more rights or remedies will not preclude the exercise of any other right or remedy
available under this Agreement or law.

 

Section 3.14 Further Assurances.
Each of the parties hereto shall execute and deliver such further instruments and do such further acts and things as may be required
to carry out the intent and purpose of this Agreement.

 

Section 3.15 Enforcement. Each
of the parties hereto covenants and agrees that the disinterested members of the Board have the right to enforce, waive or take
any other action with respect to this Agreement on behalf of the Company.

 

Section 3.16 Headings. The headings
herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the
provisions hereof.

 

[Signature Page Follows.]

 

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IN WITNESS WHEREOF, the parties hereto
have caused this Agreement to be duly executed as a deed as of the date first written above.

 

	 	COMPANY:
	 	 
	 	SOC TELEMED, INC.
	 	 	 	 
	 	By:	/s/ John W. Kalix
	 	 	Name:	John W. Kalix
	 	 	Title:	Chief Executive Officer
	 	 	 	 
	 	DESIGNEE:
	 	 
	 	/s/ Christopher Gallagher, M.D.
	 	Christopher Gallagher, M.D.

 

[Signature Page to Board Nomination Rights
Agreement]

 

    

     

    

 

Exhibit A

FORM OF IRREVOCABLE RESIGNATION

 

[__________], 2021

 

SOC Telemed, Inc.

1768 Business Center Drive, Suite 100

Reston, VA 20190

Attention: Corporate Secretary

 

		Re:	Resignation

 

Ladies and Gentlemen:

 

This irrevocable resignation is delivered
pursuant to Section 1.1(a) of the Board Nomination Rights Agreement, dated as of [__________], 2021 (the “Agreement”),
by and between SOC Telemed, Inc. (the “Company”) and the undersigned. If, following such time that the Agreement
is terminated in accordance with its terms, the Board (as such term is defined in the Agreement) requests in writing (by action
of a majority of the directors (other than myself) then serving on the Board) that I resign as a director of the Company, I hereby
tender the immediate resignation of my position as a director of the Company and from any and all committees of the Board on which
I serve, such resignation effective as of the time of the Board’s such written request.

 

This resignation may not be withdrawn by
me at any time.

 

	 	Sincerely,
	 	 
	 	 
	 	Christopher Gallagher, M.D.Description of Securities of AB Private Credit Investors Corporation

 Exhibit 4.1 

DESCRIPTION OF REGISTERED SECURITIES 

As of December 31, 2019, AB Private Credit Investors Corporation (the “Fund”) had one class of securities registered under Section 12
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”): the Fund’s common stock, par value $0.01 per share (the “Shares”). 

The following description of the Shares is based on the relevant provisions of the Maryland General Corporation Law (the “MGCL”), the Investment
Company Act of 1940, as amended (together with the rules and regulations promulgated thereunder, the “1940 Act”), the Fund’s charter (the “Charter”) and the Fund’s bylaws (the “Bylaws”). This summary describes
the provisions deemed to be material, but is not necessarily complete, and you should refer to the MGCL, 1940 Act and the Charter and Bylaws for a more detailed description of the provisions summarized below. 

Capitalized terms used but not defined herein shall have the meaning ascribed to them in the Annual Report on Form
10-K to which this Description of Securities is attached as an exhibit. 
 Stock 

The Fund’s authorized stock consists of 200,000,000 Shares, all of which are classified as common stock. There are no outstanding options or warrants to
purchase the Fund’s stock. No stock has been authorized for issuance under any equity compensation plans. Under Maryland law, the Fund’s stockholders generally are not personally liable for the Fund’s debts or obligations. 

Under the Charter, the board of directors of the Fund (the “Board”) is authorized to classify and reclassify any unissued Shares into other classes
or series of stock without obtaining stockholder approval. As permitted by the MGCL, the Charter provides that the Board, without any action by the Fund’s stockholders, may amend the Charter from time to time to increase or decrease the
aggregate number of Shares or the number of Shares of any class or series that the Fund has authority to issue. 
 Common Stock 

All Shares have equal rights as to earnings, assets, voting, and dividends and, when they are issued, will be duly authorized, validly issued, fully paid and
nonassessable. Distributions may be paid to the holders of the Shares if, as and when authorized by the Board and declared by the Fund out of assets legally available therefor. Shares have no preemptive, conversion or redemption rights and are
freely transferable, except where their transfer is restricted by federal and state securities laws or by contract. In the event of the Fund’s liquidation, dissolution or winding up, each Share would be entitled to share ratably in all of the
Fund’s assets that are legally available for distribution after the Fund pays all debts and other liabilities and subject to any preferential rights of holders of the Fund’s preferred stock, if any preferred stock is outstanding at such
time. Each Share is entitled to one vote on all matters submitted to a vote of stockholders, including the election of directors. Except as provided with respect to any other class or series of stock, the holders of the Shares will possess exclusive
voting power. There is no cumulative voting in the election of directors, which means that holders of a majority of the outstanding Shares can elect all of the Fund’s directors, and holders of less than a majority of such Shares will be unable
to elect any director. 
 Preferred Stock 
 The
Charter authorizes the Board to classify and reclassify any unissued Shares into other classes or series of stock, including preferred stock. The cost of any such reclassification would be borne by the Fund’s existing common stockholders. Prior
to the issuance of Shares of each class or series, the Board is required by the MGCL and by the Charter to set the terms, preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions,
qualifications and terms or conditions of redemption for each class or series. Thus, the Board could authorize the issuance of shares of preferred stock with terms and conditions which could have the effect of delaying, deferring or preventing a
transaction or a change in control that might involve a premium price for holders of the Shares or otherwise be in their best interest. However, that issuance of preferred stock must comply with the requirements of the 1940 Act. The 1940 Act
requires, among other things, that (1) immediately after issuance and before any dividend or other distribution is made with respect to the Shares and before any purchase of Shares is made, such preferred stock together with all other senior
securities must not exceed an amount equal to 50% of the Fund’s total assets after deducting the amount of such dividend, distribution or purchase price, as the case may be, and (2) the holders of shares of preferred stock, if any are
issued, must be entitled as a class to elect two directors at all times and to elect a majority of the directors if dividends on such preferred stock are in arrears by two full years or more. Certain matters under the 1940 Act require the separate
vote of the holders of any issued and outstanding preferred stock. For example, holders of preferred stock would vote separately from the holders of Shares on a proposal to cease operations as a BDC. 

  
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 Limitation on Liability of Directors and Officers; Indemnification and Advance of Expenses 

The MGCL permits a Maryland corporation to include in its charter a provision limiting the liability of its directors and officers to the corporation and its
stockholders for money damages except for liability resulting from (a) actual receipt of an improper benefit or profit in money, property or services or (b) active and deliberate dishonesty established by a final judgment as being material
to the cause of action. The Charter contains such a provision which eliminates directors’ and officers’ liability to the maximum extent permitted by the MGCL, subject to the requirements of the 1940 Act. 

The Charter authorizes the Fund, to the maximum extent permitted by the MGCL and subject to the requirements of the 1940 Act, to indemnify any present or
former director or officer or any individual who, while serving as the Fund’s director or officer and at the Fund’s request, serves or has served another corporation, real estate investment trust, limited liability company, partnership,
joint venture, trust, employee benefit plan or other enterprise as a director, officer, partner, trustee, member or manager from and against any claim or liability to which that person may become subject or which that person may incur by reason of
his or her service in any such capacity and to pay or reimburse their reasonable expenses in advance of final disposition of a proceeding. The Bylaws obligate the Fund, to the maximum extent permitted by the MGCL and subject to the requirements of
the 1940 Act, to indemnify any present or former director or officer or any individual who, while serving as the Fund’s director or officer and at the Fund’s request, serves or has served another corporation, real estate investment trust,
limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise as a director, officer, partner, trustee, member or manager and who is made, or threatened to be made, a party to the proceeding by reason of his
or her service in that capacity from and against any claim or liability to which that person may become subject or which that person may incur by reason of his or her service in any such capacity and to pay or reimburse his or her reasonable
expenses in advance of final disposition of a proceeding. The Charter and Bylaws also permit the Fund to indemnify and advance expenses to any person who served a predecessor of the Fund in any of the capacities described above and any of the
Fund’s employees or agents or any employees or agents of the Fund’s predecessor. In accordance with the 1940 Act, the Fund will not indemnify any person for any liability to which such person would be subject by reason of such
person’s willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of his or her office. 
 The MGCL
requires a corporation (unless its charter provides otherwise, which the Charter does not) to indemnify a director or officer who has been successful in the defense of any proceeding to which he or she is made, or threatened to be made, a party by
reason of his or her service in that capacity. The MGCL permits a corporation to indemnify its present and former directors and officers, among others, against judgments, penalties, fines, settlements and reasonable expenses actually incurred by
them in connection with any proceeding to which they may be made, or threatened to be made, a party by reason of their service in those or other capacities unless it is established that (a) the act or omission of the director or officer was
material to the matter giving rise to the proceeding and (1) was committed in bad faith or (2) was the result of active and deliberate dishonesty, (b) the director or officer actually received an improper personal benefit in money,
property or services or (c) in the case of any criminal proceeding, the director or officer had reasonable cause to believe that the act or omission was unlawful. However, under the MGCL, a Maryland corporation may not indemnify for an adverse
judgment in a suit by or in the right of the corporation or for a judgment of liability on the basis that a personal benefit was improperly received unless, in either case a court orders indemnification, and then only for expenses. In addition, the
MGCL permits a corporation to advance reasonable expenses to a director or officer in advance of final disposition of a proceeding upon the corporation’s receipt of (a) a written affirmation by the director or officer of his or her
good-faith belief that he or she has met the standard of conduct necessary for indemnification by the corporation and (b) a written undertaking by him or her or on his or her behalf to repay the amount paid or reimbursed by the corporation if
it is ultimately determined that the standard of conduct was not met. 
 The Fund has entered into indemnification agreements with its directors and
executive officers. The indemnification agreements provide the Fund’s directors and executive officers the maximum indemnification permitted under the MGCL and the 1940 Act. 

Certain Provisions of the Maryland General Corporation Law and the Charter and Bylaws 

The MGCL and the Charter and Bylaws contain provisions that could make it more difficult for a potential acquirer to acquire the Fund by means of a tender
offer, proxy contest or otherwise, the material ones of which are discussed below. These provisions are expected to discourage certain coercive takeover practices and inadequate takeover bids and to encourage persons seeking to acquire control of
the Fund to negotiate first with the Board. The Fund expects the benefits of these provisions to outweigh the potential disadvantages of discouraging any such acquisition proposals because, among other things, the negotiation of such proposals may
improve their terms. 
 Classified Board of Directors 

The Board is divided into three classes of directors serving staggered three-year terms. The current terms of the first, second and third classes will expire
in 2023, 2021, and 2022, respectively, and in each case, those directors will serve until their successors are elected and qualify. Upon expiration of their terms, directors of each class will be elected to serve for three-year terms and until their

  
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successors are duly elected and qualify, and each year one class of directors will be elected by the stockholders (for avoidance of doubt, a director may succeed himself or herself). A classified
Board may render a change in control of the Fund or removal of the Fund’s incumbent management more difficult. The Fund believes, however, that the longer time required to elect a majority of a classified Board will help to ensure the
continuity and stability of the Fund’s management and policies. 
 Election of Directors 

The Bylaws, as authorized by the Charter, provide that the affirmative vote of the holders of a plurality of the outstanding Shares entitled to vote in the
election of directors cast at a meeting of stockholders duly called, and at which a quorum is present, will be required to elect a director. Pursuant to the Charter, the Board may amend the Bylaws to alter the vote required to elect directors. 

Number of Directors; Vacancies; Removal 
 The
Charter provides that the number of directors will be set only by the Board in accordance with the Bylaws. The Bylaws provide that a majority of the Fund’s entire Board may at any time increase or decrease the number of directors. However,
unless the Bylaws are amended, the number of directors may never be less than one nor more than nine. The Charter provides that, at such time as the Fund has at least three independent directors and the Shares are registered under the Exchange Act,
as amended, the Fund elects to be subject to the provision of Subtitle 8 of Title 3 of the MGCL regarding the filling of vacancies on the Board. Accordingly, at such time, except as may be provided by the Board in setting the terms of any class or
series of preferred stock, any and all vacancies on the Board may be filled only by the affirmative vote of a majority of the remaining directors in office, even if the remaining directors do not constitute a quorum, and any director elected to fill
a vacancy will serve for the remainder of the full term of the directorship in which the vacancy occurred and until a successor is elected and qualifies, subject to any applicable requirements of the 1940 Act. 

The Charter provides that a director may be removed only for cause, as defined in the Charter, and then only by the affirmative vote of at least two-thirds of the votes entitled to be cast in the election of directors. 
 Action by Stockholders 

Under the MGCL, stockholder action can be taken only at an annual or special meeting of stockholders or (unless the charter provides for stockholder action by
less than unanimous written consent, which the Charter does not) by unanimous written consent in lieu of a meeting. These provisions, combined with the requirements of the Bylaws regarding the calling of a stockholder-requested special meeting of
stockholders discussed below, may have the effect of delaying consideration of a stockholder proposal until the next annual meeting. 
 Advance Notice
Provisions for Stockholder Nominations and Stockholder Proposals 
 The Bylaws provide that, with respect to an annual meeting of the Fund’s
stockholders, nominations of individuals for election as directors and the proposal of business to be considered by the Fund’s stockholders may be made only (a) pursuant to the Fund’s notice of the meeting, (b) by or at the
direction of the Board or (c) by a stockholder who is a stockholder of record both at the time of giving the advance notice required by the Bylaws and at the time of the meeting, who is entitled to vote at the meeting in the election of each
individual so nominated or on any such other business and who has complied with the advance notice procedures of the Bylaws. With respect to special meetings of the Fund’s stockholders, only the business specified in the Fund’s notice of
the meeting may be brought before the meeting. Nominations of individuals for election as directors at a special meeting at which directors are to be elected may be made only (a) by or at the direction of the Board or (b) provided that the
special meeting has been called in accordance with the Bylaws for the purpose of electing directors, by a stockholder who is a stockholder of record both at the time of giving the advance notice required by the Bylaws and at the time of the meeting,
who is entitled to vote at the meeting in the election of each individual so nominated and who has complied with the advance notice provisions of the Bylaws. 

The purpose of requiring the Fund’s stockholders to give the Fund advance notice of nominations and other business is to afford the Board a meaningful
opportunity to consider the qualifications of the proposed nominees and the advisability of any other proposed business and, to the extent deemed necessary or desirable by the Board, to inform the Fund’s stockholders and make recommendations
about such qualifications or business, as well as to provide a more orderly procedure for conducting meetings of the Fund’s stockholders. Although the Bylaws do not give the Board any power to disapprove stockholder nominations for the election
of directors or proposals recommending certain action, the advance notice and information requirements may have the effect of precluding election contests or the consideration of stockholder proposals if proper procedures are not followed and of
discouraging or deterring a third party from conducting a solicitation of proxies to elect its own slate of directors or to approve its own proposal without regard to whether consideration of such nominees or proposals might be harmful or beneficial
to the Fund and its stockholders. 

  
 3 

 Calling of Special Meetings of Stockholders 

The Bylaws provide that special meetings of stockholders may be called by the Board and certain of the Fund’s officers. Additionally, the Bylaws provide
that, subject to the satisfaction of certain procedural and informational requirements by the stockholders requesting the meeting, a special meeting of stockholders will be called by the secretary of the corporation upon the written request of
stockholders entitled to cast not less than a majority of all the votes entitled to be cast at such meeting. 
 Approval of Extraordinary Corporate
Action; Amendment of Charter and Bylaws 
 Under the MGCL, a Maryland corporation generally cannot dissolve, amend its charter, merge, sell all or
substantially all of its assets, engage in a share exchange or engage in similar transactions outside the ordinary course of business, unless approved by the affirmative vote of stockholders entitled to cast at least
two-thirds of the votes entitled to be cast on the matter. However, a Maryland corporation may provide in its charter for approval of these matters by a lesser percentage, but not less than a majority of all
of the votes entitled to be cast on the matter. The Charter generally provides for approval of Charter amendments and extraordinary transactions by the stockholders entitled to cast at least a majority of the votes entitled to be cast on the matter.
The Charter also provides that certain Charter amendments, any proposal for the Fund’s conversion, whether by Charter amendment, merger or otherwise, from a closed-end company to an open-end company and any proposal for the Fund’s liquidation or dissolution requires the approval of the stockholders entitled to cast at least 80% of the votes entitled to be cast on such matter. However, if
such amendment or proposal is approved by a majority of the Fund’s continuing directors (in addition to approval by the Board), such amendment or proposal may be approved by a majority of the votes entitled to be cast on such a matter. The
“continuing directors” are defined in the Charter as (1) the Fund’s current directors, (2) those directors whose nomination for election by the stockholders or whose election by the directors to fill vacancies is approved by
a majority of the Fund’s current directors then on the Board or (3) any successor directors whose nomination for election by the stockholders or whose election by the directors to fill vacancies is approved by a majority of continuing
directors or the successor continuing directors then in office. 
 The Charter and Bylaws provide that the Board will have the exclusive power to make,
alter, amend or repeal any provision of the Bylaws. 
 No Appraisal Rights 

Except with respect to appraisal rights arising in connection with the Control Share Act discussed below, as permitted by the MGCL, the Charter provides that
stockholders will not be entitled to exercise appraisal rights unless a majority of the Board shall determine such rights apply. 
 Control Share
Acquisitions 
 The MGCL provides that control shares of a Maryland corporation acquired in a control share acquisition have no voting rights except
to the extent approved by a vote of two-thirds of the votes entitled to be cast on the matter (the “Control Share Act”). Shares owned by the acquirer, by officers or by directors who are employees of
the corporation are excluded from shares entitled to vote on the matter. Control shares are voting shares of stock which, if aggregated with all other shares of stock owned by the acquirer or in respect of which the acquirer is able to exercise or
direct the exercise of voting power (except solely by virtue of a revocable proxy), would entitle the acquirer to exercise voting power in electing directors within one of the following ranges of voting power: 

 

	 	•	 	 one-tenth or more but less than
one-third; 

  

	 	•	 	 one-third or more but less than a majority; or 

 

	 	•	 	 a majority or more of all voting power. 

The requisite stockholder approval must be obtained each time an acquirer crosses one of the thresholds of voting power set forth above. Control shares do not
include shares the acquiring person is then entitled to vote as a result of having previously obtained stockholder approval. A control share acquisition means the acquisition of control shares, subject to certain exceptions. 

A person who has made or proposes to make a control share acquisition may compel the board of the corporation to call a special meeting of stockholders to be
held within 50 days of demand to consider the voting rights of the shares. The right to compel the calling of a special meeting is subject to the satisfaction of certain conditions, including an undertaking to pay the expenses of the meeting. If no
request for a meeting is made, the corporation may itself present the question at any stockholders meeting. 
 If voting rights are not approved at the
meeting or if the acquiring person does not deliver an acquiring person statement as required by the statute, then the corporation may redeem for fair value any or all of the control shares, except those for which voting rights have previously been
approved. The right of the corporation to redeem control shares is subject to certain conditions and limitations, 

  
 4 

 
including, as provided in the Bylaws compliance with the 1940 Act. Fair value is determined, without regard to the absence of voting rights for the control shares, as of the date of the last
control share acquisition by the acquirer or of any meeting of stockholders at which the voting rights of the shares are considered and not approved. If voting rights for control shares are approved at a stockholders meeting and the acquirer becomes
entitled to vote a majority of the shares entitled to vote, all other stockholders may exercise appraisal rights. The fair value of the shares as determined for purposes of appraisal rights may not be less than the highest price per share paid by
the acquirer in the control share acquisition. 
 The Control Share Act does not apply (a) to shares acquired in a merger, consolidation or share
exchange if the corporation is a party to the transaction or (b) to acquisitions approved or exempted by the charter or bylaws of the corporation. The Bylaws contain a provision exempting from the Control Share Act any and all acquisitions by
any person of the Shares. There can be no assurance that such provision will not be amended or eliminated at any time in the future. However, the Fund will amend its Bylaws to be subject to the Control Share Act only if the Board determines that it
would be in the Fund’s best interests and if the SEC staff does not object to the Fund’s determination that its being subject to the Control Share Act does not conflict with the 1940 Act. 

Business Combinations 
 Under the MGCL,
“business combinations” between a Maryland corporation and an interested stockholder or an affiliate of an interested stockholder are prohibited for five years after the most recent date on which the interested stockholder becomes an
interested stockholder. The Fund refers to these provisions as the Business Combination Act. These business combinations include a merger, consolidation, share exchange or, in circumstances specified in the statute, an asset transfer or issuance or
reclassification of equity securities. An interested stockholder is defined as: 
  

	 	•	 	 any person who beneficially owns 10% or more of the voting power of the corporation’s outstanding voting
stock; or 

  

	 	•	 	 an affiliate or associate of the corporation who, at any time within the
two-year period prior to the date in question, was the beneficial owner of 10% or more of the voting power of the then outstanding voting stock of the corporation. 

A person is not an interested stockholder under this statute if the Board approved in advance the transaction by which the stockholder otherwise would have
become an interested stockholder. However, in approving a transaction, the Board may provide that its approval is subject to compliance, at or after the time of approval, with any terms and conditions determined by the board. 

After the five-year prohibition, any business combination between the Maryland corporation and an interested stockholder generally must be recommended by the
Board of the corporation and approved by the affirmative vote of at least: 
  

	 	•	 	 80% of the votes entitled to be cast by holders of outstanding shares of voting stock of the corporation; and

  

	 	•	 	 two-thirds of the votes entitled to be cast by holders of voting stock of
the corporation other than shares held by the interested stockholder with whom or with whose affiliate the business combination is to be effected or held by an affiliate or associate of the interested stockholder. 

These super-majority vote requirements do not apply if the corporation’s common stockholders receive a minimum price, as defined under the MGCL, for
their shares in the form of cash or other consideration in the same form as previously paid by the interested stockholder for its shares. 
 The statute
permits various exemptions from its provisions, including business combinations that are exempted by the board before the time that the interested stockholder becomes an interested stockholder. The Board has adopted a resolution that any business
combination between the Fund and any other person is exempted from the provisions of the Business Combination Act, provided that the business combination is first approved by the Board, including a majority of the directors who are not
“interested persons” as defined in the 1940 Act. This resolution may be altered or repealed in whole or in part at any time; however, the Board will adopt resolutions so as to make the Fund subject to the provisions of the Business
Combination Act only if the Board determines that it would be in the Fund’s best interests and if the SEC staff does not object to the Fund’s determination that its being subject to the Business Combination Act does not conflict with the
1940 Act. If this resolution is repealed, or the Board does not otherwise approve a business combination, the statute may discourage others from trying to acquire control of the Fund and increase the difficulty of consummating any offer. 

Conflict with 1940 Act 
 The Bylaws provide that,
if and to the extent that any provision of the MGCL, including the Control Share Act (if the Fund amends its Bylaws to be subject to such act) and the Business Combination Act, or any provision of the Charter or Bylaws conflicts with any provision
of the 1940 Act, the applicable provision of the 1940 Act will control. 

  
 5 

 Exclusive Forum 

The Charter and Bylaws provide that, to the fullest extent permitted by law, unless the Fund consents in writing to the selection of an alternative forum,
(i) any derivative action or proceeding brought on behalf of the Fund, (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of the Fund to the Fund or the Fund’s stockholders,
(iii) any action asserting a claim arising pursuant to any provision of the MGCL, the Charter or Bylaws or the securities, antifraud, unfair trade practices or similar laws of any international, national, state, provincial, territorial, local
or other governmental or regulatory authority, including, in each case, the applicable rules and regulations promulgated thereunder, or (iv) any action asserting a claim governed by the internal affairs doctrine shall on the demand of the Fund
be resolved through binding and final arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association then in effect. The place of arbitration shall be New York, New York unless otherwise agreed by the
parties; in rendering an award or decision, the arbitrators shall be required to follow the laws of the State of New York; and except as otherwise agreed between the parties, each party involved in a dispute shall bear its own costs and expenses
(including attorneys’ fees), and the arbitrators shall not render an award that would include shifting of any such costs or expenses (including attorneys’ fees) or, in a derivative case, award any portion of the Fund’s award to the
claimant or the claimant’s attorneys. 
 Term 
 As
discussed above, if the Board determines it appropriate (and subject to necessary stockholder approvals under the Charter and the 1940 Act, and any other applicable requirements of the 1940 Act), the Board may at any time after the third anniversary
of the initial closing date, subject to the Adviser’s option to extend this by up to one (1) year beyond the third anniversary of the initial closing date, or if earlier, the date on which the undrawn capital commitment of each investor
has been reduced to zero, (i) (a) create a Liquidating Share Class or effectuate the New BDC Spin-Off, both pending the Fund’s receipt of exemptive or
no-action relief from the SEC, (b) complete a Qualified IPO, or (c) wind up, or (ii) amend the Charter as necessary to preserve (insofar as possible) the overall benefits previously enjoyed by
stockholders as a whole. 
 Additionally, if the Board determines that there has been a significant adverse change in the Fund’s regulatory or tax
treatment or that of the Fund’s stockholders that, in the Board’s judgment makes it inadvisable for the Fund to continue in its present form, then the Board will endeavor to restructure or change the form of the Fund to preserve (insofar
as possible) the overall benefits previously enjoyed by stockholders as a whole. 
 In the event of and upon any liquidation, dissolution or winding up of
the Fund’s affairs, whether voluntary or involuntary, after payment or provision for payment of the Fund’s debts and other liabilities and subject to the prior rights of any outstanding preferred Shares, the Fund’s remaining net
assets will be distributed among holders of the Shares equally on a per share basis. For the purposes of this paragraph, a merger or consolidation of the Fund with or into any other corporation or other entity, or a sale or conveyance of all or any
part of the Fund’s property or assets will not be deemed to be a dissolution, liquidation or winding up, voluntary or involuntary. 

*  *  *  *  * 

  
 6

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