Document:

znga-ex102_115.htm

 

Exhibit 10.2

CONSULTING SERVICES AGREEMENT

This Consulting Services Agreement (“Agreement”), effective as of May 11, 2018 (the “Effective Date”), is made by and between Zynga Inc. (“Company” or “Zynga”) and William B. Gordon (“Consultant”).

Company and Consultant agree as follows:

	
1.
	
Engagement of Services.

1.1.Services. Subject to the terms of this Agreement and using his own means and methods, Consultant will render the services set forth in the Statement of Work (“SOW”) attached hereto as Exhibit A and incorporated herein by reference, which may be added to or amended from time to time (collectively, the “Services”).

1.2.Performance of Services. All Services will be rendered to the best of Consultant’s ability and in a timely and professional manner, in compliance with all standards and rules reasonably established by Company from time to time, except that, Consultant will at all times determine the method and means of Consultant’s performance. Consultant will bring to the immediate attention of Company any instance Consultant believes this provision is not being adhered to.

1.3.Compliance with Laws. Consultant will comply with all applicable laws, ordinances, rules and regulations, now or in effect in the future, in Consultant’s performance of the Services.

1.4.Company Policies; Other Consulting Arrangements. Consultant agrees to abide by and comply with such corporate policies as are from time to time made applicable to Consultant, so long as the Company provides notice to Consultant of the terms and conditions of such policies and that such compliance is required. Consultant also agrees to inform Zynga’s Chief Executive Officer in writing, with a copy sent to Zynga’s Chief Legal Officer at LegalNotices@zynga.com, of any board of director, advisory, consulting, or similar services that Consultant may provide to any other party after the Effective Date.

	
2.
	
Compensation.

2.1.Compensation and Approved Expenses. Company will compensate Consultant in accordance with the terms set forth in the SOW. Consultant acknowledges and agrees that he shall not be entitled at any time to any additional compensation for the Services. Consultant shall be reimbursed for project specific expenses with the prior written approval of Company or as expressly provided in the SOW.

2.2.Taxes. Consultant will be responsible for all other taxes (including interest and penalties) or fees arising from transactions and documentation of transactions under the Agreement. Consultant will provide Company with any forms, documents, or certifications, such as an IRS form W-9 or W-8BEN, as may be required for Company to satisfy any information reporting or withholding tax obligations with respect to any payments under this Agreement. Company will deduct or withhold any taxes that Company is legally obligated to deduct or withhold from any amounts payable to Consultant under this Agreement, and payment to Consultant as reduced by such deductions or withholdings will constitute full payment and settlement to Consultant of amounts payable under this Agreement.

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3.Nondisclosure Agreement.  Consultant will (a) protect and keep confidential information pertaining to Zynga’s business, plans, projects, products, finances, customers, suppliers, and inventions, including but not limited to: business and financial information or plans; Zynga techniques, technology, practices, operations, and methods of conducting business; information technology systems and operations; information concerning Zynga’s business partners and suppliers or potential business partners and suppliers; customer information; and Zynga pricing policies, marketing strategies, research projects or developments, legal affairs, and future plans relating to any aspect of Zynga’s present or anticipated businesses, as well as all other information obtained from Company in connection with this Agreement that is identified as confidential or proprietary or that, given the nature of such information or the manner of its disclosure, reasonably should be considered confidential or proprietary (“Confidential Information”); (b) use such Confidential Information only for the purposes of fulfilling his obligations under this Agreement; and (c) return all such Confidential Information to Company promptly upon the termination of this Agreement. All such Confidential Information will remain Company’s exclusive property and Consultant will have no rights to use such information except as expressly provided in this Agreement. Consultant will not issue press releases or publicity or make any public statements that relate to this Agreement without the prior written approval of Company’s management and Communications team. Consultant is hereby advised that federal law provides criminal and civil immunity to federal and state claims for trade secret misappropriation to individuals who disclose a trade secret to their attorney, a court, or a government official in certain, confidential circumstances that are set forth at 18 U.S.C. §§ 1833(b)(1) and 1833(b)(2), related to the reporting or investigation of a suspected violation of the law, or in connection with a lawsuit for retaliation for reporting a suspected violation of the law.

	
4.
	
Independent Contractor.

4.1. Nature of Relationship. Consultant will be, and act as, an independent contractor (and not an employee, agent, or representative) of Company in the performance of the Services. This Agreement will not be interpreted or construed as creating or evidencing an association, joint venture, partnership or franchise relationship among the parties, nor will it change the nature of any relationship among the parties unrelated to the Services or limit Consultant when acting in his capacity as a member of Zynga’s board of directors or other fiduciary of Zynga.

4.2.Other Activities. Consultant will not be required to devote Consultant’s full time to the performance of the Services, and Consultant may service other clients and offer services to the general public, subject to the terms hereof. Notwithstanding the foregoing, Consultant certifies that Consultant has no outstanding agreement or obligation that is in conflict with any of the provisions of this Agreement or that would preclude Consultant from complying with the provisions of this Agreement. Consultant will not enter into any such conflicting agreement during the Term of this Agreement. Further, during the Term of this Agreement and for a period of twelve (12) months thereafter, Consultant will not, directly or indirectly, whether on Consultant’s own behalf or on behalf of any other entity: (a) solicit or otherwise encourage any Company employee, contractor, or consultant (including personnel of Company’s affiliates) (together “Company Personnel”) to terminate any employment or contractual relationship with Company; (b) disclose information to any other individual or entity about Company Personnel that could be used to solicit or otherwise encourage Company Personnel to form new business relationships with that or another individual or entity; or (c) otherwise interfere with the performance by current or former Company Personnel of their obligations or responsibilities to Zynga.

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5.
	
Work for Hire; Proprietary Rights.

5.1.Work Product, Proprietary Rights and Pre-Existing Work. If, prior to, on or after the Effective Date, Consultant delivers or is required to deliver to Company any work product in connection with the Services, including, but not limited to concepts, developments, ideas, works, works in progress, technology, works of authorship, inventions, information, databases, drawings, designs, processes, programs, products, documentation, software, and improvements thereof (whether developed by Consultant either alone or with others, and whether completed or in-progress) (collectively, “Work Product”), then effective upon creation of the Work Product, Company owns, or upon assignment by Consultant will own, all right, title and interest (including, but not limited to, all foreign and United States trademarks, service marks, trade secrets, copyrights, patents, moral rights and similar rights, and other intellectual property rights) (collectively, “Proprietary Rights”) in such Work Product. The term Work Product does not include: (a) any inventions or developments made by Consultant before the Effective Date; or (b) any improvements Consultant may make to its own proprietary software or any of its internal processes as a result of any SOW, provided that such improvements do not infringe Company’s or Company’s Proprietary Rights (“Pre-Existing Work”).

5.2.Work for Hire. The Work Product has been specially ordered and commissioned from Consultant. Consultant acknowledges and agrees that the Work Product is a “work made for hire” to the full extent permitted by Law, with all copyrights in the Work Product owned by Company and that Company shall own all right, title and interest therein. Company shall be considered the author of such Work Product for purposes of copyright and shall own all the rights in and to the copyright of such Work Product, and only Company shall have the right to obtain a copyright registration on the same which Company may do in its name, its trade name, or the name of its nominee(s).

5.3.Assignment of Work Product. To the extent that the Work Product does not qualify as a work made for hire under Law, and to the extent that the Work Product includes material subject to copyright, trademarks and service marks, patent (current or future), trade secret, or any Proprietary Rights protection recognized in any country or jurisdiction worldwide, including, without limitation, moral rights and similar rights, all applications and registrations relating thereto, whether presently existing or created in the future, all rights to use, reproduce, sell and otherwise fully exploit the Work Product in any and all formats or media and all channels, whether now known or hereafter created, and all rights to sue for past, present and future infringement, Consultant agrees to assign, transfer and convey, and hereby assigns, transfers, and conveys, to Company (or to such of its affiliated entities as Company may designate), its successors and assigns, all right, title and interest in and to the Work Product, including, but not limited to, all rights in and to any inventions and designs embodied in the Work Product or developed in the course of Consultant’s creation of the Work Product. The foregoing assignment includes a license under any current and future patents owned or licensable by Consultant as necessary to combine the Work Product or any derivative works thereof with any product, service, offering, software or intellectual property of Company. Consultant, will, without additional consideration or payment, review and execute any documents in connection with such assignment or otherwise relating to the perfecting of Company’s Proprietary Rights in the Work Product, as Company or Company may reasonably request. Consultant appoints Company his attorney-in-fact to execute assignments of, and register all rights to, the Work Product and the Proprietary Rights in Work Product. This appointment is coupled with an interest. At any time upon request from Company and upon termination or expiration of this Agreement, Consultant shall deliver to Company in tangible form all materials containing Work Product, whether complete or in process.

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5.4.License to Pre-Existing Work. To the extent Pre-Existing Work of Consultant is embodied in any Work Product, deliverables or Proprietary Rights, Consultant hereby grants Company a non-exclusive, worldwide, perpetual, irrevocable, fully paid-up license to: (a) use, make, have made, sell, offer to sell, reproduce, perform, display, distribute, transmit and import such Pre-Existing Work; (b) adapt, modify and create derivative works of such Pre-Existing Work; and (c) sublicense the foregoing rights. To the extent any know-how, techniques, skills, knowledge, materials or property of Consultant is incorporated into or embodied in any of the Work Product, or covers or controls any of the Work Product, or is necessary in order to fully and freely use any of the Work Product, Consultant hereby grants to Company a perpetual, irrevocable, worldwide, royalty-free, non-exclusive license, with the right to grant sublicenses, to use any of the foregoing as part of or in connection with the use of the Work Product or any derivative work based upon the Work Product.

5.5.Representations and Warranties. Consultant represents and warrants that:

(a)the Services, Work Product and Pre-Existing Work do not, and will not, violate, infringe or misappropriate any other person’s Proprietary Rights;

(b)Consultant has full and sufficient rights to grant the licenses to the Pre-Existing Work and rights, title and interest to assign the Work Product to Company, as provided herein;

(c)the Work Product, including any Pre-Existing Work, if applicable, is the original work of Consultant and does not contain any works or other Proprietary Rights of any third party;

(d)the performance of the Services will not violate the provisions of any agreement to which Consultant is a party; and

(e)there are no claims of infringement threatened, pending or asserted with respect to the Services, Work Product or Pre-Existing Work.

	
6.
	
Term. This Agreement is effective as of the Effective Date and will remain in force and effect for as long as Consultant is performing Services pursuant to the SOW, unless terminated earlier as provided in this Agreement (the “Term”).

	
7.
	
Termination.

7.1. Termination. Either Consultant or the Company may terminate this Agreement at any time and for any reason upon thirty (30) days’ written notice to the other party. Consultant understands and agrees that in the event of a termination of this Agreement, compensation for Consultant's services will be  governed exclusively by this Agreement and the SOW.

7.2.Rights Upon Termination. If this Agreement is terminated while work is in progress under the Agreement, the parties agree that all right, title, and interest in Work Product conceived or developed by Consultant alone or with others in connection with the provision of Services as of the date of termination will be deemed owned by or assigned to Company as set forth in Section 5.

8.Indemnification. Consultant will indemnify, defend, and hold Company and/or its subsidiaries, affiliates and their respective directors, officers, employees, agents, successors and assigns (“Company Indemnified Parties”) harmless from and against any allegation or claim based on, or any damage, loss, and expense and any other liability (collectively “Claims”) arising from any breach of Consultant’s obligations, representations, or warranties under this Agreement, including any allegation or claim of infringement or misappropriation of any foreign or United States trademark, service mark, patent, copyright, trade secret, or other Proprietary Right. However, the foregoing indemnification does not apply to the extent a Claim results from Company’s negligence or willful misconduct. Consultant’s duty to defend is independent of its duty to indemnify. Consultant’s obligations under this Section are independent of all its other obligations under this Agreement. Consultant will use counsel reasonably satisfactory to Company to defend each Claim, and Company will cooperate with Consultant in the defense. Consultant will not consent to the entry of any judgment or enter into any settlement without Company’s prior written consent, which may not be unreasonably withheld.

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9.Remedy. Consultant acknowledges that any breach by Consultant of this Agreement will cause irreparable injury to Company. Accordingly, in the event of such breach or an impending breach, Company shall be entitled to obtain equitable relief from a court in addition to the right to seek damages and any other right or remedy afforded to Company by law or otherwise.

10.Governing Law; Forum. This Agreement will be governed by the laws of the State of California without regard to any applicable conflict of laws rules. Consultant irrevocably consents to the exclusive personal jurisdiction and venue of the federal and state courts located in San Francisco County, California, with respect to any dispute arising out of or in connection with this Agreement. Notwithstanding the foregoing, Company may, at its option, enforce this Agreement in any court of competent jurisdiction.

	
11.
	
General Provisions.

11.1.Anti-Bribery. Consultant acknowledges Company’s Code of Business Conduct and Ethics posted as of the Effective Date at http://investor.zynga.com/static-files/9a76d7ed-e474-42f9-9578-9c9597b29cfe (the “Code”) shall be fully applicable to Consultant and Consultant must comply with the relevant provisions of the Code, including conflicts of interest, insider trading and compliance with all applicable laws, rules and regulations. Consultant further acknowledges that the Code prohibits the paying of bribes to anyone for any reason, whether in dealings with governments or the private sector. Consultant will not violate or knowingly permit anyone to violate the Code’s prohibition on bribery or any applicable anti-corruption laws in performing under this Agreement. Company may immediately terminate or suspend performance under this agreement if Consultant breaches this Section. Consultant will maintain true, accurate and complete books and records concerning any payments made to another party by Consultant under the agreement, including on behalf of Company. Company and its designated representative may inspect Consultant’s books and records to verify such payments and for compliance with this Section.

11.2.Severability. If any provision of this Agreement is held to be invalid or unenforceable for any reason, the remaining provisions will continue in full force. The parties agree to replace any invalid provision with a valid provision that most closely approximates the intent and economic effect of the invalid provision.

11.3.Nonwaiver. All waivers must be in writing. Any failure by Company to enforce strict performance of any provision of this Agreement will not constitute a waiver of Company’s right to subsequently enforce such provision or any other provision of this Agreement.

11.4.Successors and Assigns. The performance of the Services by Consultant to Company is personal, and Consultant may not assign this Agreement or any of the rights or obligations of Consultant arising under this Agreement without Company’s prior written consent. Company may assign its rights arising under this Agreement to an affiliated entity without Consultant’s consent. Subject to the foregoing, this Agreement will be binding upon, enforceable by, and inure to the benefit of, the parties and their successors and assigns.

11.5.Company Marks. Consultant will not use any trade name, trademark, service mark, or logo of Company (“Company Marks”) (or any name, mark, or logo confusingly similar to Company Marks) in any advertising, promotions, or otherwise, without Company’s prior written consent.

11.6.Notices. All notices and other communications under this Agreement must be in writing and given by email to the other party: (a) if to Consultant, emailed to bingg@kpcb.com; and (b) if to Zynga Inc., emailed to LegalNotices@zynga.com.

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11.7.LIMITATION OF LIABILITY; DISCLAIMER OF WARRANTIES. IN NO EVENT WILL (A) COMPANY BE LIABLE FOR ANY LOSS OF DATA, LOSS OF PROFITS, COST OF COVER OR OTHER SPECIAL, INCIDENTAL, CONSEQUENTIAL, INDIRECT, PUNITIVE, EXEMPLARY OR RELIANCE DAMAGES ARISING FROM OR IN RELATION TO THIS AGREEMENT, HOWEVER CAUSED AND REGARDLESS OF THEORY OF LIABILITY AND (B) COMPANY’S LIABILITY FOR DIRECT DAMAGES UNDER THIS AGREEMENT EXCEED THE AMOUNT OF FEES EARNED BY CONSULTANT.

11.8.Survival. The provisions of Sections 1.4, 4, 5, 8, 9 and 10 (as well as any other provision that reasonably should be interpreted as surviving this Agreement) will survive any termination or expiration of the Term of this Agreement.

11.9.Entire Agreement. This Agreement plus the attached SOW set forth the entire understanding and agreement of the parties as to the subject matter of this Agreement. Any amendment to this Agreement must be in writing and signed by both parties, except that amendments to SOWs may be agreed to via email. The parties may use standard business forms or other communications, but use of such forms is for convenience only and does not alter the provisions of this Agreement. To the extent any SOW conflicts with any terms and conditions contained in an estimate or invoice prepared by the Consultant (even if the term-is and conditions have been agreed to with a signature by Company), the SOW will control. To the extent any SOW conflicts with this Agreement, this Agreement will control.

11.10.Counterparts. This Agreement may be executed by facsimile and in counterparts, each of which (including signature pages) will be deemed an original, but all of which together will constitute one and the same instrument.

11.11.Headings. The section headings contained in this Agreement are inserted for convenience of reference only and will not affect the meaning or interpretation of the Agreement.

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the parties have signed this Agreement as of the Effective Date.

 

					
	
ZYNGA INC.:
	
 
	
CONSULTANT:

	
By:
	
/s/ Frank Gibeau
	
 
	
By:
	
/s/ William B. Gordon

	
Name:
	
Frank Gibeau
	
 
	
Name:
	
William B. Gordon

	
Title:
	
Chief Executive Officer
	
 
	
 
	
 

 

Zynga Inc. | William B. Gordon
Consulting Agreement

 

EXHIBIT A

STATEMENT OF WORK

Zynga Inc. (the “Company” or “Zynga”) and William B. Gordon (“Consultant”) have entered into a Consulting Services Agreement, dated as of May 11, 2018 (the “Agreement”), relating to the provision of Services by Consultant. This Statement of Work (“SOW”) is made pursuant to the terms and conditions of the Agreement. In the event of an explicit conflict or inconsistency between the Agreement and this SOW, the Agreement will control. In no event may Proprietary Rights be modified in a Statement of Work. Capitalized terms not otherwise defined herein shall have the meaning ascribed to them in the Agreement.

This SOW shall be effective from the Effective Date through the Term.

Services: Consultant shall perform the following “Services” for Company:

	
 
	
•
	
Consultant shall provide advice to the Company regarding strategic Company initiatives and consult with the Company’s Chief Executive Officer (the “CEO”) in accordance with the CEO’s requests, and

	
 
	
•
	
Consultant and the CEO shall agree to annual objectives and key results (OKRs) to be achieved by Consultant].

Payment: Zynga shall pay Consultant a fee of $125,000 per quarter (i.e., every three months) for the performance of Services, and such fees may be paid by the Company in cash or in shares of the Company’s common stock (the amount of shares measured as of the fair value of any such award on the grant date), as determined in the sole discretion of Company. The parties agree that, upon termination of either the Agreement or this SOW, Consultant’s compensation will be prorated for the number of days Consultant provides Services within the quarter in which the termination becomes effective.

Zynga will reimburse Consultant, in accordance with Zynga’s policies, for any reasonable expenses incurred by Consultant in connection with performing Services; provided that, Consultant must obtain pre-approval from the CEO for any such expenses above $2,500.

Prior Services: Promptly following the Effective Date and on the same terms provided above in the “Payments” section of this SOW, Company shall pay Consultant for Services rendered to the Company from the period of January 1, 2018 through the Effective Date.

IN WITNESS WHEREOF, the parties have signed this SOW as of the Effective Date.

 

					
	
ZYNGA INC.:
	
 
	
CONSULTANT:

	
By:
	
/s/ Frank Gibeau
	
 
	
By:
	
/s/ William B. Gordon

	
Name:
	
Frank Gibeau
	
 
	
Name:
	
William B. Gordon

	
Title:
	
Chief Executive Officer
	
 
	
 
	
 

 

A-1EX-10.1

 Exhibit 10.1 

INVESTMENT ADVISORY AGREEMENT 

BETWEEN 
 OAKTREE
STRATEGIC INCOME II, INC. 
 AND 

OAKTREE CAPITAL MANAGEMENT, L.P. 

This Investment Advisory Agreement (this “Agreement”) made this 9th day of July, 2018 (the
“Effective Date”), by and between OAKTREE STRATEGIC INCOME II, INC., a Delaware corporation (the “Company”), and OAKTREE CAPITAL MANAGEMENT, L.P., a Delaware limited partnership (the
“Adviser”). 
 WHEREAS, the Company is a newly organized
closed-end management investment fund that intends to elect to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the
“Investment Company Act”); and 
 WHEREAS, the Adviser is registered under the Investment Advisers
Act of 1940, as amended (the “Advisers Act”); and 
 WHEREAS, the Company desires to retain the
Adviser to furnish investment advisory services to the Company on the terms and conditions hereinafter set forth, and the Adviser wishes to be retained to provide such services; 

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

(a) The Company hereby appoints the Adviser 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 herein set forth, (i) in accordance with the investment
objective, policies and restrictions that are set forth in the reports and/or registration statements that the Company files with the Securities and Exchange Commission (the “SEC”) from time to time; (ii) in accordance
with all other applicable federal and state laws, rules and regulations, and the Company’s charter and by-laws; and (iii) in accordance with the Investment Company Act. Without limiting the
generality of the foregoing, the Adviser shall, during the term and subject to the provisions of this Agreement (A) determine the composition of the portfolio of the Company, the nature and timing of the changes therein and the manner of
implementing such changes; (B) identify, evaluate and negotiate the structure of the investments made by the Company; (C) execute, close, monitor and service the Company’s investments; (D) determine the securities and other
assets that the Company will purchase, retain, or sell; (E) perform due diligence on prospective portfolio companies; and (F) provide the Company with such other investment advisory, research and related services as the Company may, from
time to time, reasonably require for the investment of its funds. The Adviser shall have the power and authority on behalf of the Company to effectuate its investment decisions for the Company, including the negotiation,

 
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. The Adviser is
hereby authorized, on behalf of the Company and at the direction of the Board pursuant to delegated authority, to possess, transfer, mortgage, pledge or otherwise deal in, and exercise all rights, powers, privileges and other incidents of ownership
or possession with respect to, the Company’s investments and other property and funds held or owned by the Company, including, without limitation, exercising and enforcing rights with respect to any claims relating to such investments and other
property and funds, including with respect to litigation, bankruptcy or other reorganization. 
 (b) The Adviser hereby
accepts such appointment and agrees during the term hereof to render the services described herein for the compensation provided herein. 

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

(d) The Adviser 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. 

(e) Subject to review by and the overall control of the Board, the Adviser shall keep and preserve, in the manner and 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. The Adviser 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, provided that the Adviser may retain a copy of such records. 
 2. Company’s
Responsibilities and Expenses Payable by the Company. 
 All personnel of the Adviser, 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 Adviser and not by the Company. The Company shall bear all
other costs and expenses of its organization, operations, administration and transactions, including (without limitation) fees and expenses relating to: (a) all costs, fees, expenses and liabilities incurred in connection with the
formation and organization of the Company and the offering and sale of the common stock, including expenses 

  
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of registering or qualifying securities held by the Company for sale and blue sky filing fees; (b) diligence and monitoring of the Company’s financial, regulatory and legal
affairs, and, if necessary, enforcing rights in respect of investments (to the extent an investment opportunity is being considered for the Company and any other funds or accounts managed by the Adviser or its affiliates, the Adviser’s out-of-pocket expenses related to the due diligence for such investment will be shared with such other funds and accounts pro rata based on the anticipated allocation of such
investments opportunity between the Company and the other funds and accounts); (c) the cost of calculating the Company’s Net Asset Value (including third-party valuation firms); (d) the cost of effecting sales and repurchases of
shares of the Company’s common stock and other securities; (e) Management and Incentive Fees payable pursuant to this Agreement; (f) fees payable to third parties relating to, or associated with, making investments and
valuing investments (including third-party valuation firms); (g) retainer, finder’s, placement, adviser, consultant, custodian, sub-custodian, transfer agent, trustee, disbursal, brokerage,
registration, legal and other similar fees, commissions and expenses attributable to making or holding investments; (h) fees and expenses associated with marketing efforts (including travel and attendance at investment conferences and
similar events); (i) allocable out-of-pocket costs incurred in providing managerial assistance to those portfolio companies that request it; (j) fees,
interest and other costs payable on or in connection with any indebtedness; (k) federal and state registration fees and other governmental charges; (l) any exchange listing fees; (m) federal, state and local
taxes; (n) independent directors’ fees and expenses; (o) brokerage commissions; (p) costs of proxy statements, stockholders’ reports and notices and any other regulatory reporting expenses;
(q) costs of preparing government filings, including periodic and current reports with the SEC; (r) fidelity bond, liability insurance and other insurance premiums; (s) printing, mailing, independent accountants
and outside legal costs; (t) costs of winding up and liquidation; (u) litigation, indemnification and other extraordinary or non-recurring expenses; (v) dues, fees and
charges of any trade association of which the Company is a member; (w) research and software expenses, quotation equipment and services and other expenses incurred in connection with data services, including subscription costs, providing
real-time price feeds, real-time news feeds, securities and company information, and company fundamental data attributable to such investments; (x) costs and expenses relating to investor reporting and communications; (y) all
costs, expenses, fees and liabilities incurred in connection with a Liquidity Event (as defined below); (z) all other out-of-pocket expenses, fees and liabilities
that are incurred by the Company or by the Adviser on behalf of the Company or that arise out of the operation and activities of the Company, including expenses related to organizing and maintaining persons through or in which investments may be
made and the allocable portion of any Adviser costs, including personnel, incurred in connection therewith; (aa) accounting expenses, including expenses associated with the preparation of the financial statements and tax information reporting
returns of the Company and the filing of various tax withholding forms and treaty forms by the Company; (bb) the allocable portion of the compensation of the Company’s Chief Financial Officer and Chief Compliance Officer and their
respective staffs; and (cc) all other expenses incurred by Oaktree Fund Administration, LLC, as administrator (the “Administrator”), pursuant to the Administration Agreement, dated as of July 9, 2018 (the
“Administration Agreement”), between the Administrator and the Company, an affiliate of the Administrator or the Company in connection with administering the Company’s business, including payments under the
Administration Agreement to the Administrator or such affiliate in an amount equal to the Company’s allocable portion of overhead and other expenses incurred by the Administrator or 

  
 3 

 
such affiliate in performing its obligations and services under the Administration Agreement, such as rent and the Company’s allocable portion of the cost of personnel attributable to
performing such obligations and services, including, but not limited to, marketing, legal and other services performed by the Administrator or such affiliate for the Company. For the avoidance of doubt, the Company will bear its allocable portion of
the costs of the compensation, benefits, and related administrative expenses (including travel expenses) of the Company’s officers who provide operational and administrative services hereunder, their respective staffs and other professionals
who provide services to the Company (including, in each case, employees of the Administrator or an affiliate) who assist with the preparation, coordination, and administration of the foregoing or provide other “back office” or “middle
office” financial or operational services to the Company. Notwithstanding anything to the contrary contained herein, the Company shall reimburse the Adviser (or its affiliates) for an allocable portion of the compensation paid by the
Adviser (or its affiliates) to such individuals (based on a percentage of time such individuals devote, on an estimated basis, to the business and affairs of the Company and in acting on behalf of the Company). 

Additionally, the Company bears all of the costs and expenses of any
sub-administration agreements that the Administrator enters into. 
 A
“Liquidity Event” means: at the discretion of the Company’s board of directors: (a)(i) the listing of the Company’s common stock on a national securities exchange or (ii) an initial public
offering of the Company’s common stock that results in gross proceeds to the Company of at least $50 million and a listing of the common stock on a national securities exchange (each of (i) and (ii), a
“Qualified Listing”) or (b) with the consent of a majority of outstanding shares of common stock not affiliated with the Adviser and in accordance with the applicable requirements of Delaware law, a corporate
control transaction, which may include a strategic sale of the Company or all or substantially all of its assets to, or a merger with, another entity, or another type of corporate control event, which may include, but is not limited to, a
transaction with an affiliated entity, including an affiliated BDC, for consideration in cash or publicly listed securities of such entity or a combination of cash and such publicly listed securities. 

3. Compensation of the Adviser. 

The Company agrees to pay, and the Adviser agrees to accept, as compensation for the services provided by the Adviser
hereunder, a management fee (“Management Fee”) and an incentive fee (“Incentive Fee”) as hereinafter set forth. The Adviser may agree to temporarily or permanently waive or defer, in whole or in part,
the Management Fee and/or the Incentive Fee. See Appendix A for examples of how these fees are calculated. The Company shall make any payments due hereunder to the Adviser or to the Adviser’s designee as the Adviser may otherwise direct.
Any portion of a deferred fee payable to the Adviser shall be deferred without interest and may be paid in any quarter prior to the termination of this Agreement as the Adviser may determine upon written notice to the Company. 

(a) Prior to the completion of a Qualified Listing, if any, the Adviser will receive quarterly in arrears a Management Fee
equal to 1.00% per annum (the “Applicable Management Fee  

  
 4 

 
Percentage”) of the Company’s Gross Asset Value (as defined below), provided, that prior to a Qualified Listing, the Management Fee shall not exceed 1.75% per annum
of the Unleveraged Asset Value (as defined below). From and after the date of a Qualified Listing, if any, of the Company (or its successor), the Applicable Management Fee Percentage shall increase to 1.50% per annum of the Company’s Gross
Asset Value. 
 For purposes of calculating the Management Fee, the Gross Asset Value of the Company will be determined by
the Company’s board of directors (including any committee thereof). Until (a) the 12-month anniversary of the Initial Closing (as defined below) or (b) the completion of a Qualified Listing,
whichever occurs first, the Management Fee for each quarter shall be calculated based on the average Gross Asset Value of the Company at the end of each month during such calendar quarter (prior to taking into account any Incentive Fee);
provided, that the Management Fee for the Company’s first calendar quarter shall be calculated based on the Gross Asset Value of the Company at the end of such calendar quarter (prior to taking into account any Incentive Fee). Following
(a) the 12-month anniversary of the Initial Closing or (b) the completion of a Qualified Listing, whichever occurs first, the Management Fee for each quarter shall be calculated based on the average
Gross Asset Value of the Company at the end of such quarter and at the end of the preceding quarter (in each case, prior to taking into account any Incentive Fee); provided, that the Management Fee for the calendar quarter in which the
Company consummates a Qualified Listing shall be calculated based on the Gross Asset Value of the Company at the end of such calendar quarter (prior to taking into account any Incentive Fee). The Unleveraged Asset Value shall be determined in a
manner consistent with the determination of Gross Asset Value. 
 The term “Gross Asset Value” means
the value of the gross assets of the Company, determined on a consolidated basis in accordance with U.S. generally accepted accounting principles (“GAAP”), including portfolio investments purchased with borrowed funds and
other forms of leverage, but excluding cash and cash equivalents (as defined below). The term “Unleveraged Asset Value” means the Gross Asset Value less Company’s borrowings for investment purposes determined on a
consolidated basis in accordance with GAAP (other than borrowings under the Company’s investor subscription credit facility that are repaid within 180 days of incurrence). The Adviser will not receive any fees on Capital Commitments not yet
drawn. 
 For purposes of this Agreement, the term “cash and cash equivalents” will have the meaning
ascribed to it from time to time in the notes to the financial statements that the Company files with the SEC. The Management Fee for any partial month or quarter shall be appropriately prorated (upon termination of this Agreement as of the
termination date). 
 (b) The Incentive Fee shall consist of two parts, as follows: 

(i) The “Investment Income Incentive Fee” will be calculated and payable quarterly in
arrears based on the Company’s Pre-Incentive Fee Net Investment Income (as defined below) for the immediately preceding calendar quarter. The Company’s
“Pre-Incentive Fee Net Investment Income” means consolidated interest income, dividend income and any other income (including any other fees, such as commitment, origination,
structuring, diligence and consulting fees or other fees that the Company receives from portfolio 

  
 5 

 
companies other than fees for providing managerial assistance) accrued during the calendar quarter, minus the operating expenses accrued for the quarter (including the Management Fee, Company
expenses and any interest expense or fees on any credit facilities or outstanding debt, but excluding the Incentive Fee). The Company’s 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 has not yet been received in cash. For the avoidance of doubt, the Pre-Incentive Fee Net Investment Income does not include any realized capital gains, realized capital losses or unrealized capital
appreciation or depreciation. The Pre-Incentive Fee Net Investment Income, expressed as a rate of return on the value of the Company’s net assets at the end of the immediately preceding calendar quarter,
will be compared to a hurdle of 1.50% per quarter (6% annualized) (the “Hurdle Rate”). The Company’s net investment income used to calculate this part of the Incentive Fee is also included in the amount of the
Company’s gross assets used to calculate the 1.00% Management Fee. The Company will pay to the Adviser an Investment Income Incentive Fee each quarter as follows: 
  

	 	(a)	 No Investment Income Incentive Fee in any calendar quarter in which the Company’s Pre-Incentive Fee Net Investment Income does not exceed the Hurdle Rate; 

  

	 	(b)	 100% of the amount of the Company’s Pre-Incentive Fee Net
Investment Income, if any, that exceeds the Hurdle Rate but is less than or equal to a 1.875% (7.5% annualized) rate of return on the value of the Company’s net assets as of the end of such calendar quarter (the “Catch-Up”), which is intended to provide the Adviser with 20% of the Pre-Incentive Fee Net Investment Income as if the Hurdle Rate did not apply, if the Pre-Incentive Fee Net Investment Income exceeds the Hurdle Rate in such calendar quarter; and 

  

	 	(c)	 20% of the amount of the Company’s Pre-Incentive Fee Net
Investment Income, if any, that exceeds a 1.875% (7.5% annualized) rate of return on the value of the Company’s net assets as of the end of such calendar quarter, so that once the Hurdle Rate is reached and the
Catch-Up in (b) immediately above is achieved, 20% of the Pre-Incentive Fee Net Investment Income thereafter is allocated to the Adviser. 

The foregoing calculations will be appropriately prorated for any period of less than three months and adjusted
for any issuances or repurchases of the Company’s common stock during a quarter. 
 (ii) The second part
of the Incentive Fee is the Capital Gains Incentive Fee, determined and payable in arrears as of the end of each year (or upon termination of this Agreement). The Capital Gains Incentive Fee is calculated as of the end of each calendar
year and equals 20% of the realized capital gains, if any, on a cumulative basis commencing with the calendar year ending December 31, 2018 through the end of each calendar year, computed net of all realized capital losses on a cumulative basis
and 

  
 6 

 
unrealized capital depreciation, less the aggregate amount of any previously paid Capital Gains Incentive Fee with respect to each of the investments in the Company’s portfolio, provided
that the Capital Gains Incentive Fee determined as of December 31, 2018, if any, will be calculated for a period of shorter than 12 calendar months to take into account any realized capital gains computed net of all realized capital losses and
unrealized capital depreciation from the date of the initial closing of the sale of the Company’s common stock to non-affiliates of the Company (the “Initial Closing”) through the
end of 2018. 
 (c) In certain circumstances the Adviser, any Sub-Adviser, or any of
their respective affiliates, may receive compensation from a portfolio company in connection with the Company’s investment in such portfolio company. Any compensation received by the Adviser, Sub-Adviser,
or any of their respective affiliates, attributable to the Company’s investment in any portfolio company, in excess of any of the limitations in or exemptions granted from the Investment Company Act, any interpretation thereof by the staff of
the SEC, or the conditions set forth in any exemptive relief granted to the Adviser, any Sub-Adviser or the Company by the SEC, shall be delivered promptly to the Company and the Company will retain such
excess compensation for the benefit of its shareholders. 
 4. Covenants of the Adviser. 

The Adviser covenants that it will maintain its registration as an investment adviser under the Advisers Act. The Adviser
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. 

5. Brokerage Commissions. 

The Adviser 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 Adviser 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. 

6. Other Activities of the Adviser. 

The services of the Adviser to the Company are not exclusive. Subject to the provisions of the Company’s charter and by-laws, the Adviser and its managers, partners, principals, officers, employees and agents shall be free to act for their own account or the account of any other Account, and to 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

  
 7 

 
investment objectives similar to those of the Company, so long as the Adviser’s services to the Company hereunder are not impaired thereby. The Company agrees that the Adviser may give
advice and take action in the performance of its duties with respect to any of its other clients which may differ from advice given or the timing or nature of action taken with respect to the investments of the Company. Nothing in this Agreement
shall limit or restrict the right of any manager, partner, principal, officer, employee or agent of the Adviser to engage in any other business or to devote his or her time and attention in part to any other business, whether of a similar or
dissimilar nature, or to receive any fees or compensation in connection therewith (including fees for serving as a director of, or providing consulting services to, one or more of the Company’s portfolio companies, subject to applicable law).
So long as this Agreement or any extension, renewal or amendment remains in effect, the Adviser shall be the only investment adviser for the Company, subject to the Adviser’s right to enter into
sub-advisory agreements. The Adviser assumes no responsibility under this Agreement other than to render the services called for hereunder. It is understood that directors, managers, officers, employees and
stockholders of the Company are or may become interested in the Adviser and its affiliates, as directors, officers, employees, partners, principals, stockholders, members, managers, agents or otherwise, and that the Adviser and directors, officers,
employees, partners, principals, stockholders, members, managers and agents of the Adviser 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, principal, officer, employee or agent of the Adviser is or becomes a director,
manager, officer and/or employee of the Company and acts as such in any business of the Company, then such manager, partner, principal, officer, employee and/or agent of the Adviser shall be deemed to be acting in such capacity solely for the
Company, and not as a manager, partner, principal, officer, employee or agent of the Adviser or under the control or direction of the Adviser, even if paid by the Adviser. 

8. Limitation of Liability of the Adviser; Indemnification. 

The Adviser (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 Adviser) shall not be liable to the Company for any action taken or omitted to be taken by the Adviser in connection with the performance of any of its duties or
obligations under this Agreement or otherwise as an investment adviser of the 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 Adviser (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 Adviser, 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 security holders) 

  
 8 

 
arising out of or otherwise based upon the performance of any of the Adviser’s duties or obligations under this Agreement or otherwise as an investment adviser of the Company.
Notwithstanding the preceding sentence of this Paragraph 8 to the contrary, nothing contained herein shall protect or be deemed to protect the Indemnified Parties against or entitle or be deemed to entitle the Indemnified Parties to indemnification
in respect of, any liability to the Company or its security holders to which the Indemnified Parties would otherwise be subject by reason of willful misfeasance, bad faith or gross negligence in the performance of the Adviser’s duties or by
reason of the reckless disregard of the Adviser’s duties and obligations under this Agreement. 
 9. Effectiveness, Duration and Termination of
Agreement. 
 This Agreement shall become effective as of the Effective Date. This Agreement shall remain in effect
for two years from the Effective Date, and thereafter shall continue automatically for successive annual periods, provided that such continuance is specifically approved at least annually by (a) the vote of the Board or a majority of the
outstanding voting securities of the Company and (b) 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, in accordance with the requirements of the Investment Company Act. This Agreement may be terminated at any time, without the payment of any penalty, upon 60 days’ written notice, by the vote of a
majority of the outstanding voting securities of the Company, or by the vote of the Company’s directors or by the Adviser. This Agreement shall automatically terminate in the event of its “assignment” (as such term is defined for
purposes of Section 15(a)(4) of the Investment Company Act). Further, notwithstanding the termination or expiration of this Agreement as aforesaid, the Adviser shall be entitled to any amounts owed under Paragraph 3 through the date of
termination or expiration. 
 10. 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. 
 11. Amendments. 

This Agreement may be amended by mutual consent. 

12. 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 business development company 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. To the fullest extent permitted by law, in the

  
 9 

 
event of any dispute arising out of the terms and conditions of this Agreement, the parties hereto consent and submit to the jurisdiction of the courts of the State of New York in the county of
New York and of the U.S. District Court for the Southern District of New York. 
 13. Forum Selection.

Any legal action or proceeding with respect to this Agreement or the services provided hereunder or for recognition and
enforcement of any judgment in respect hereof brought by the other party hereto or its successors or assigns must be brought and determined in the state or United States district courts of the State of New York (and may not be brought or determined
in any other forum or jurisdiction), and each party hereto submits with regard to any action or proceeding for itself and in respect of its property, generally and unconditionally, to the sole and exclusive jurisdiction of the aforesaid courts. 

14. No Third Party Beneficiary.

Other than expressly provided for in Paragraph 8 of this Agreement, this Agreement does not and is not intended to confer any
rights or remedies upon any person other than the parties to this Agreement; there are no third-party beneficiaries of this Agreement, including but not limited to stockholders of the Company. 

15. Severability. 

Every term and provision of this Agreement is intended to be severable. If any term or provision hereof is illegal or invalid
for any reason whatsoever, such term or provision will be enforced to the maximum extent permitted by law and, in any event, such illegality or invalidity shall not affect the validity of the remainder of this Agreement. 

16. Counterparts. 

This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which taken
together shall constitute a single agreement. 
 17. Survival of Certain Provisions. 

The provisions of Paragraph 8 of this Agreement shall survive any termination or expiration of this Agreement and the
dissolution, termination and winding up of the Company. 

  
 10 

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

                 
           OAKTREE STRATEGIC INCOME II, INC. 
  

			
	 By:
	 	 /s/ Mary Gallegly

		 	 Name:    Mary Gallegly

		 	 Title:      Secretary

                 
         OAKTREE CAPITAL MANAGEMENT, L.P. 
  

			
	 By:
	 	 /s/ Martin Boskovich

		 	 Name:    Martin Boskovich

		 	 Title:      Managing Director

  

			
	 By:
	 	 /s/ Mary Gallegly

		 	 Name:    Mary Gallegly

		 	 Title:      Senior Vice President

 [Signature Page to Investment Advisory Agreement] 

 Appendix A 

Example 1: Income Related Portion of Incentive Fee(1): 

Alternative 1—Assumptions 

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

Hurdle Rate(2) = 1.50%. 

Management Fee(3) = 0.25%. 

Other expenses (legal, accounting, custodian, transfer agent,
etc.)(4) = 0.25%. 
 Pre-Incentive Fee Net Investment
Income = 
 (investment income – (Management Fee + other expenses)) = 0.75%. 

Pre-Incentive Net Investment Income does not exceed Hurdle Rate, therefore there is no Investment
Income Incentive Fee. 
 Alternative 2—Assumptions 

Investment income (including interest, dividends, fees, etc.) = 2.30%. 

Hurdle Rate(2) = 1.50%. 

Management Fee(3) = 0.25%. 

Other expenses (legal, accounting, custodian, transfer agent,
etc.)(4) = 0.25%. 
 Pre-Incentive Fee Net Investment
Income = 
 (investment income – (Management Fee + other expenses)) = 1.80% 

Catch-Up = 1.80% – 1.50 % =0.30% 

Incentive Fee = 100% × (1.80% - 1.50%) = 0.30%. 

Alternative 3—Assumptions 

Investment income (including interest, dividends, fees, etc.) = 4.00%. 

Hurdle Rate(2) = 1.50%. 

Management Fee(3) = 0.25%. 

Other expenses (legal, accounting, custodian, transfer agent,
etc.)(4) = 0.25%. 
 Pre-Incentive Fee Net
Investment Income = 
 (investment income – (Management Fee + other expenses)) = 3.50%. 

Incentive Fee = 20% × Pre-Incentive Fee Net Investment Income, subject to “catch-up” (5). 
 Incentive
Fee = (100% × “catch-up”) + (20% × (Pre-Incentive Fee Net Investment Income – 1.875%)). 

Catch-Up = 1.875% – 1.50% = 0.375%. 

Incentive Fee = (100% × 0.375%) + (20% × (3.50% – 1.875%)) 

= 0.375% + (20% × 1.625%) 

= 0.375% + 0.325% 

= 0.70%. 
 Example 2: Capital
Gains Portion of Incentive Fee: 
 Alternative 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 Capital Gains Incentive Fee, if any, would be: 
  

	 	1.	 Year 1: None. 

  

	 	2.	 Year 2: $6.0 million Capital Gains Incentive Fee, calculated as follows: $30 million realized
capital gains on sale of Investment A multiplied by 20%. 

  

	 	3.	 Year 3: None; calculated as follows:(6)
$5.0 million cumulative fee (20% multiplied by $25 million ($30 million cumulative capital gains less $5 million cumulative unrealized capital depreciation)) less $6.0 million (previous capital gains fee paid in Year 2).

  

	 	4.	 Year 4: $200,000 Capital Gains Incentive Fee, calculated as follows: $6.2 million cumulative fee (20%
multiplied by $31 million cumulative realized capital gains ($30 million from Investment A and $1 million from Investment B)) less $6.0 million (previous capital gains fee paid in Year 2). 

Alternative 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 capital gains portion of the incentive fee, if any, would be: 

 

	 	•	 	 Year 1: None. 

  

	 	•	 	 Year 2: $5.0 million Capital Gains Incentive Fee, calculated as follows: 20% multiplied by
$25 million ($30 million realized capital gains on sale of Investment A less $5 million unrealized capital depreciation on Investment B). 

  

	 	•	 	 Year 3: $1.4 million Capital Gains Incentive Fee, calculated as follows: $6.4 million cumulative fee
(20% multiplied by $32 million ($35 million cumulative realized capital gains less $3 million cumulative unrealized capital depreciation)) less $5.0 million (previous capital gains fee paid in Year 2). 

	 	•	 	 Year 4: $600,000 capital gains incentive fee, calculated as follows: $7.0 million cumulative fee (20%
multiplied by $35 million cumulative realized capital gains) less $6.4 million (previous cumulative capital gains fee paid in Year 2 and Year 3). 

  

	 	•	 	 Year 5: None. $5.0 million cumulative fee (20% multiplied by $25 million ($35 million
cumulative realized capital gains less $10 million realized capital losses)) less $7.0 million (previous cumulative capital gains fee paid in Years 2, 3 and 4). 

 
 Notes: 

 

	1.	 The hypothetical amount of Pre-Incentive Fee Net Investment Income
shown is expressed as a rate of return as of the beginning and the end of the immediately preceding calendar quarter. Solely for purposes of these illustrative examples, we have assumed that the Company has not incurred any leverage. However, we
expect to use leverage to partially finance our investments. 

	2.	 Represents 6.0% annualized Hurdle Rate. 

	3.	 Represents 1.00% annualized Management Fee (as in effect prior to a Qualified Listing).

	4.	 Hypothetical other expenses. Excludes organizational and offering expenses. 

	5.	 The “catch-up” provision is intended to provide the
Adviser with an Incentive Fee of approximately 20% on all of the Pre-Incentive Fee Net Investment Income as if a Hurdle Rate did not apply when the net investment income exceeds 1.875% in any calendar quarter.

	6.	 If the Investment Advisory Agreement is terminated on a date other than December 31 of any year, the
Company may pay aggregate Capital Gains Incentive Fees that are more than the amount of such fees that would have been payable if the Investment Advisory Agreement had been terminated on December 31 of such year. This would occur if the FMV of
an investment declined between the time the Investment Advisory Agreement was terminated and December 31.

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