Document:

Exhibit 10.1

 

INVESTMENT
ADVISORY AGREEMENT

BETWEEN

BARINGS CAPITAL INVESTMENT CORPORATION

AND

BARINGS LLC

 

This INVESTMENT ADVISORY
AGREEMENT (this “Agreement”), dated as of June 24, 2020, between Barings Capital Investment Corporation, a Maryland
corporation (the “Company”), and Barings LLC, a Delaware limited liability company (the “Adviser”).

 

WHEREAS, the Company
is a non-diversified, closed-end investment company that has elected to be regulated as a business development company (“BDC”)
under the Investment Company Act of 1940, as amended (together with the rules promulgated thereunder, the “1940 Act”);

 

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

 

WHEREAS, the Company
desires to retain the Adviser to provide investment advisory services to the Company in the manner and on the terms and conditions
hereinafter set forth; and

 

WHEREAS, the Adviser
is willing to provide investment advisory services to the Company in the manner and on the terms and conditions hereinafter set
forth.

 

NOW, THEREFORE, in
consideration of the premises and the covenants hereinafter contained and for other good and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, the Company and the Adviser hereby agree as follows:

 

1.       In
General.

 

The Adviser agrees,
all as more fully set forth herein, to act as investment adviser to the Company with respect to the investment of the Company’s
assets and to supervise and arrange for the day-to-day operations of the Company and the purchase of assets for and the sale of
assets held in the investment portfolio of the Company.

 

2.       Duties
and Obligations of the Adviser with Respect to Investment of Assets of the Company.

 

(a)       Subject
to the succeeding provisions of this paragraph and subject to the direction and control of the Company’s board of directors
(the “Board of Directors”), the Adviser shall act as the investment adviser to the Company and shall manage
the investment and reinvestment of the assets of the Company. Without limiting the generality of the foregoing, the Adviser shall,
during the term and subject to the provisions of this Agreement, (i) determine the composition of the portfolio of the Company,
the nature and timing of the changes therein and the manner of implementing such changes; (ii) identify, evaluate and negotiate
the structure of the investments made by the Company; (iii) execute, close, service and monitor the investments that the Company
makes; (iv) determine the securities and other assets that the Company will purchase, retain or sell; (v) perform due diligence
on prospective portfolio companies; and (vi) provide the Company with such other investment advisory, research and related services
as the Company may, from time to time, reasonably require for the investment of its funds. Nothing contained herein shall be construed
to restrict the Company’s right to hire its own employees or to contract for administrative services to be performed by third
parties, including but not limited to, the calculation of the net asset value of the Company’s shares.

 

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(b)       In
the performance of its duties under this Agreement, the Adviser shall at all times use all reasonable efforts to conform to, and
act in accordance with, any requirements imposed by (i) the provisions of the 1940 Act, and of any rules or regulations in force
thereunder, subject to the terms of any exemptive order applicable to the Company; (ii) any other applicable provision of law;
(iii) the provisions of the Articles of Incorporation and the Bylaws of the Company, as such documents may be amended from time
to time; (iv) the investment objectives, policies and restrictions applicable to the Company as set forth in the reports and/or
registration statements that the Company files with the Securities and Exchange Commission (the “SEC”), as they
may be amended from time to time by the Board of Directors of the Company; and (v) any policies and determinations of the Board
of Directors of the Company and provided in writing to the Adviser.

 

(c)       The
Adviser will provide significant managerial assistance to those portfolio companies of the Company that the Company agrees to provide
such services to as required by the 1940 Act.

 

(d)       The
Adviser may engage one or more investment advisers (each, a “Sub-Adviser”) which are registered under the Advisers
Act to act as sub-advisers to provide the Company certain services set forth in Section 2(a) of this Agreement, all as shall be
set forth in a written contract (each, a “Sub-Advisory Agreement”) to which the Company and the Adviser shall
be parties, which Sub-Advisory Agreement shall be subject to approval by the vote of a majority of the members of the Board of
Directors who are not “interested persons” (as such term is defined in Section 2(a)(19) of the 1940 Act) of the Adviser,
any sub-adviser, or of the Company (each, a “Non-Interested Director”), cast in person at a meeting called for
the purpose of voting on such approval and, to the extent required by the 1940 Act, by the vote of a majority of the outstanding
voting securities of the Company and otherwise consistent with the terms of the 1940 Act. The Adviser and not the Company shall
be responsible for any compensation payable to any Sub-Adviser; provided, however, that the Adviser shall have the right to direct
the Company to pay directly to any Sub-Adviser the amounts due and payable to such Sub-Adviser from the fees and expenses payable
to the Adviser under this Agreement.

 

(e)       The
Adviser will maintain all books and records with respect to the Company’s securities transactions required by sub-paragraphs
(b)(5), (6), (9) and (10) and paragraph (f) of Rule 31a-1 under the 1940 Act (other than those records being maintained by the
administrator to the Company (the “Administrator”) under the administration agreement to be entered into by
and between the Company and the Administrator concurrent herewith (the “Administration Agreement”), or by the
Company’s custodian or transfer agent) and preserve such records for the periods prescribed therefor by Rule 31a-2 of the
1940 Act. The Adviser shall have the right to retain copies, or originals where required by Rule 204-2 promulgated under the Advisers
Act, of such records to the extent required by applicable law, subject to observance of its confidentiality obligations under this
Agreement.

 

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(f)       All
investment professionals of the Adviser and its staff, when and to the extent engaged in providing investment advisory and management
services hereunder, and the compensation and routine overhead expenses of such personnel allocable to such services, shall be provided
and paid for by the Adviser and not by the Company. The Company shall bear all other costs and expenses of its operations and transactions,
including, without limitation, those relating to:

 

(i)       organizational
and offering expenses;

 

(ii)       fees
and expenses incurred in valuing the Company’s assets and computing its net asset value (including the cost and expenses
of any independent valuation firm);

 

(iii)       the
fees and expenses incurred by the Company or payable to third parties, including lawyers, accountants, auditors, agents, consultants
or other advisors, in connection with the Company’s financial, accounting and legal affairs and in monitoring the Company’s
investments and performing due diligence on the Company’s prospective portfolio companies or otherwise related to, or associated
with, evaluating and making investments, including expenses related to unsuccessful portfolio acquisition efforts;

 

(iv)       all
fees, costs and expenses of money borrowed by the Company, including principal, interest and the costs associated with the establishment
and maintenance of any credit facilities, other financing arrangements, or other indebtedness of the Company, if any (including
commitment fees, accounting and legal fees, closing and other costs);

 

(v)       offerings
of the Company’s common stock and other securities;

 

(vi)       investment
advisory and management fees payable under Section 6 of this Agreement;

 

(vii)       administration
fees;

 

(viii)       transfer
agent and custody fees and expenses;

 

(ix)       federal
and state registration fees;

 

(x)       all
costs of registration and listing the Company’s securities on any securities exchange;

 

(xi)       federal,
state and local taxes;

 

(xii)       Non-Interested
Directors’ compensation, fees and expenses;

 

(xiii)       costs
of preparing and filing reports or other documents required by the SEC or other regulators;

 

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(xiv)       costs
of any reports, proxy statements or other notices to stockholders, including printing costs;

 

(xv)       costs
of holding stockholder meetings;

 

(xvi)       the
Company’s allocable portion of the fidelity bond, directors and officers/errors and omissions liability insurance, and any
other insurance premiums, including independent director liability policies;

 

(xvii)       direct
costs and expenses of administration and operation, including printing, mailing, long distance telephone, copying, secretarial
and other staff, independent auditors and outside legal costs;

 

(xviii)       all
third-party legal, expert and other fees, costs and expenses relating to any actions, proceedings, lawsuits, demands, causes of
action and claims, whether actual or threatened, made by or against the Company, or which the Company is authorized or obligated
to pay under applicable law or its governing agreements or by the Board of Directors;

 

(xix)       subject
to Section 7 below, any judgment or settlement of pending or threatened proceedings (whether civil, criminal or otherwise) against
the Company, or against any trustee, director, partner, member or officer of the Company in his capacity as such for which the
Company is required to indemnify such trustee, director, partner, member or officer by any court or governmental agency, or settlement
of pending or threatened proceedings;

 

(xx)       all
travel and related expenses of directors, officers, managers, agents and employees of the Company and the Adviser, incurred in
connection with attending meetings of the Board of Directors or holders of securities of the Company or performing other business
activities that relate to the Company, including travel and related expenses incurred in connection with the purchase, consideration
for purchase, financing, refinancing, sale or other disposition of any investment or potential investment of the Company; provided,
however, that the Company shall only be responsible for (A) a proportionate share of such expenses, as determined by the Adviser
in good faith, where such expenses were not incurred solely for the benefit of the Company, and (B) expenses incurred in accordance
with the Company’s travel expense reimbursement policies;

 

(xxi)       all
expenses relating to payments of dividends or interest or distributions in cash or any other form made or caused to be made by
the Board of Directors to or on account of holders of the securities of the Company, including in connection with any dividend
reinvestment plan or direct stock purchase plan;

 

(xxii)       all
fees, costs and expenses related to (A) the design and maintenance of the Company’s web site or sites and (B) the Company’s
allocable share of costs associated with technology-related expenses, including any computer software or hardware, electronic equipment
or purchased information technology services from third-party vendors or affiliates of the Adviser that is used for the Company,
technology service providers and related software/hardware utilized in connection with the Company’s investment and operational
activities;

 

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(xxiii)       all
fees, costs and expenses incurred with respect to market information systems and publications, research publications and materials,
and settlement, clearing and custodial fees and expenses; provided, however, that the Company shall only be responsible for a proportionate
share of such expenses, as determined by the Adviser in good faith, where such expenses were not incurred solely for the benefit
of the Company; and

 

(xxiv)       all
other non-investment advisory expenses incurred by the Company or the Administrator in connection with administering the Company’s
business (including payments under the Administration Agreement based upon the Company’s allocable portion of the Administrator’s
overhead in performing its obligations under the Administration Agreement, including rent and the allocable portion of the cost
of the Company’s Chief Financial Officer and Chief Compliance Officer and their respective staffs).

 

(g)       The
Adviser shall give the Company the benefit of its professional judgment and effort in rendering services hereunder, but neither
the Adviser nor any of its officers, directors, employees, agents or controlling persons shall be liable for any act or omission
or for any loss sustained by the Company in connection with the matters to which this Agreement relates, provided, that
the foregoing exculpation shall not apply to a loss resulting from fraud, willful misfeasance, bad faith or gross negligence in
the performance of its duties, or by reason of its reckless disregard of its obligations and duties under this Agreement; provided
further, however, that the foregoing shall not constitute a waiver of any rights which the Company may have which may
not be waived under applicable law.

 

(h)       The
Adviser is hereby authorized, on behalf of the Company and at the direction of the Board of Directors 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 voting and providing consents and waivers with respect to the Company’s investments and exercising and enforcing
rights with respect to any claims relating to the Company’s investments and other property and funds, including with respect
to litigation, bankruptcy or other reorganization.

 

(i)       The
Adviser will place orders either directly with the issuer or with any broker or dealer in connection with making investments on
the Company’s behalf hereunder. Subject to the other provisions of this paragraph, in placing orders with brokers and dealers,
the Adviser will attempt to obtain the best price and the most favorable execution of its orders. In placing orders, the Adviser
will consider the experience and skill of the firm’s securities traders as well as the firm’s financial responsibility
and administrative efficiency. Consistent with this obligation, the Adviser may select brokers on the basis of the research, statistical
and pricing services they provide to the Company and other clients of the Adviser. Information and research received from such
brokers will be in addition to, and not in lieu of, the services required to be performed by the Adviser hereunder. A commission
paid to such brokers may be higher than that which another qualified broker would have charged for effecting the same transaction,
provided that the Adviser determines in good faith that such commission is reasonable in terms either of the transaction or the
overall responsibility of the Adviser to the Company and its other clients and that the total commissions paid by the Company will
be reasonable in relation to the benefits to the Company over the long term, subject to review by the Board of Directors of the
Company from time to time with respect to the extent and continuation of such practice to determine whether the Company benefits,
directly or indirectly, from such practice.

 

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(j)       The
Adviser will provide to the Board of Directors such periodic and special reports as it may reasonably request.

 

3.       Services
Not Exclusive.

 

Nothing in this Agreement
shall prevent the Adviser or any officer, employee or other affiliate thereof from acting as investment adviser for any other person,
firm or corporation, whether or not the investment objectives or policies of any such other person, firm, or corporation are similar
to those of the Company, or from engaging in any other lawful activity, and shall not in any way limit or restrict the Adviser
or any of its officers, employees or agents from buying, selling or trading any securities for its or their own accounts or for
the accounts of others for whom it or they may be acting; provided, however, that the Adviser will not undertake,
and will cause its employees not to undertake, activities which, in its reasonable judgment, will adversely affect the performance
of the Adviser’s obligations under this Agreement.

 

4.       Confidentiality.

 

The parties hereto
agree that each shall treat confidentially all information provided by each party to the other regarding its business and operations.
All confidential information provided by a party hereto, including all “nonpublic personal information,” as defined
under the Gramm-Leach-Bliley Act of 1999 (Public law 106-102, 113 Stat. 1138), shall be used by the other party hereto solely for
the purpose of rendering services pursuant to this Agreement and, except as may be required in carrying out this Agreement, shall
not be disclosed to any third party, without the prior consent of such providing party, except that such confidential information
may be disclosed to an affiliate or agent of the disclosing party to be used for the sole purpose of providing the services set
forth herein. The foregoing shall not be applicable to any information that is publicly available when provided or thereafter becomes
publicly available other than through a breach of this Agreement, or that is requested by or required to be disclosed to any governmental
or regulatory authority, including in connection with any required regulatory filings or examinations, by judicial or administrative
process or otherwise by applicable law or regulation. Notwithstanding the foregoing, the Company hereby consents and authorizes
the Adviser and its affiliates to use and disclose confidential information relating to the Company in connection with (a) the
preparation of performance information relating to the Company and (b) in connection with any contemplated sale of the outstanding
equity or assets of the Adviser, Administrator, or any person who may be deemed to “control” either of the Adviser
or the Administrator, in each case within the meaning of the 1940 Act.

 

5.       Expenses.

 

During the term of
this Agreement, the Adviser will bear all compensation expense (including health insurance, pension benefits, payroll taxes and
other compensation related matters) of its employees and shall bear the costs of any salaries of any officers or directors of the
Company who are affiliated persons (as defined in the 1940 Act) of the Adviser.

 

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6.       Compensation
of the Adviser.

 

The Adviser, for its
services to the Company, will be entitled to receive a management fee (the “Base Management Fee”) and an incentive
fee (“Incentive Fee”) from the Company.

 

(a)       The
Base Management Fee will be calculated at an annual rate of 0.15% of the Company’s gross assets, including assets purchased
with borrowed funds or other forms of leverage but excluding (i) cash and cash equivalents (as defined below) and (ii) net unsettled
purchases and sales of investments. For services rendered under this Agreement, the Base Management Fee will be payable quarterly
in arrears. The Base Management Fee will be calculated based on the average value of the Company’s gross assets at the end
of the two most recently completed calendar quarters (including the quarter for which such fees are being calculated) and appropriately
adjusted for any share issuances or repurchases during the quarter. For the Company’s first quarter, the Base Management
Fee will be calculated based on the value of the Company’s gross assets as of such quarter-end. The Base Management Fee for
any partial quarter will be appropriately pro-rated. For purposes of this Agreement, “cash equivalents” means U.S.
government securities, money market fund investments, commercial paper instruments and other similar cash equivalent investments
maturing within one year of purchase.

 

(b)       The
Incentive Fee will consist of two parts: (i) an incentive fee based on pre-incentive fee net investment income (the “Income-Based
Fee”) and (ii) an incentive fee based on capital gains (the “Capital Gains Fee”).

 

(i)       The
Income-Based Fee will be payable quarterly in arrears to the extent the Company’s Pre-Incentive Fee Net Investment Income
(as defined below) for the most recently completed calendar quarter divided by the Company’s net assets as of the end of
such calendar quarter (defined as total assets less indebtedness and before taking into account any Income-Based Fees and Capital
Gains Fees payable during the calendar quarter, and appropriately adjusted for any share issuances or repurchases during the calendar
quarter) (the “PIFNII Return”) exceeds the Hurdle Rate (as defined below) and is an amount less than or equal
to the Incentive Fee Cap (as defined below). The Income-Based Fee will be calculated as follows:

 

		a.	No Income-Based Fee in any calendar quarter in which the PIFNII Return does not exceed the Hurdle
Rate;

 

		b.	25% of Pre-Incentive Fee Net Investment Income with respect
to that portion of the PIFNII Return that exceeds the Hurdle Rate but is less than or equal to the Catch-Up Hurdle Rate (as defined
below) for such calendar quarter, which is referred to as the “Catch-Up.” The Catch-Up is intended to provide the
Adviser with an Income-Based Fee equal to 12.5% of all of the Company’s Pre-Incentive Fee Net Investment Income if the Company’s
PIFNII Return equals or exceeds the quarterly Catch-Up Hurdle Rate in any calendar quarter; plus

 

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		c.	12.5% of all Pre-Incentive Fee Net Investment Income with respect to that portion of the PIFNII
Return that exceeds the Catch-Up Hurdle Rate.

 

provided that,
(i) in any quarter that the Incentive Fee Cap is zero or a negative value, the Company will pay no Income-Based Fee to the Adviser
for such quarter, (ii) in any quarter that the Incentive Fee Cap for such quarter is a positive value but is less than the Income-Based
Fee that is payable to the Adviser for such quarter (before giving effect to the Incentive Fee Cap), the Company will pay an Income-Based
Fee to the Adviser equal to the Incentive Fee Cap for such quarter, and (iii) in any quarter that the Incentive Fee Cap for such
quarter is equal to or greater than the Income-Based Fee that is payable to the Adviser for such quarter (before giving effect
to the Incentive Fee Cap), the Company will pay an Income-Based Fee to the Adviser equal to the Income-Based Fee calculated as
described above for such quarter without regard to the Incentive Fee Cap.

 

For purposes
of this Section 6(b)(i):

 

“Hurdle Rate”
for any calendar quarter means one fourth of the average daily Floating Rate over the applicable quarter.

 

“Floating
Rate” means, initially, the three-month London Interbank Offered Rate (“LIBOR”); provided that if
a Floating Rate Transition Event and its related Floating Rate Replacement Date have occurred with respect to LIBOR, then “Floating
Rate” means the Replacement Rate. In the event that the Floating Rate is a negative value, then the Floating Rate shall be
zero.

 

“Floating
Rate Transition Event” means the occurrence of one or more of the following events with respect to the Floating Rate:

 

		i.	a public statement or publication of information by or on behalf of the administrator of the Floating
Rate announcing that the administrator has ceased or will cease to provide the Floating Rate permanently or indefinitely, provided
that, at the time of such statement or publication, there is no successor administrator that will continue to provide the Floating
Rate;

 

		ii.	a public statement or publication of information by the regulatory supervisor for the administrator
of the Floating Rate, the central bank for the currency of the Floating Rate, an insolvency official with jurisdiction over the
administrator for the Floating Rate, a resolution authority with jurisdiction over the administrator for the Floating Rate or a
court or an entity with similar insolvency or resolution authority over the administrator for the Floating Rate, which states that
the administrator of the Floating Rate has ceased or will cease to provide the Floating Rate permanently or indefinitely, provided
that, at the time of such statement or publication, there is no successor administrator that will continue to provide the Floating
Rate; or

 

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		iii.	a public statement or publication of information by the regulatory supervisor for the administrator
of the Floating Rate announcing that the Floating Rate is no longer representative.

 

“Floating
Rate Replacement Date” means:

 

		i.	in the case of clause (i) or (ii) of the definition of “Floating Rate Transition Event,”
the later of (a) the date of the public statement or publication of information referenced therein and (b) the date on which the
administrator of the relevant Floating Rate permanently or indefinitely ceases to provide such Floating Rate; or

 

		ii.	in the case of clause (iii) of the definition of “Floating Rate Transition Event,”
the date of the public statement or publication of information.

 

“Replacement
Rate” means the first alternative set forth in the order below that can be determined as of the Floating Rate Replacement
Date.

 

		i.	the sum of: (a) Term SOFR and (b) the Benchmark Replacement Adjustment; and

 

		ii.	the sum of: (a) Compounded SOFR and (b) the applicable Benchmark Replacement Adjustment.

 

If a Replacement Rate
is selected pursuant to clause (ii) above, then each calendar quarter following such selection, if a redetermination of the Replacement
Rate on such date would result in the selection of a Replacement Rate under clause (i) above, then (x) the Replacement Rate shall
be redetermined on such date utilizing Term SOFR and (y) such redetermined Replacement Rate shall become the Floating Rate on or
after such date. If redetermination of the Replacement Rate on such date as described in the preceding sentence would not result
in the selection of a Replacement Rate under clause (i), then the Floating Rate shall remain the Replacement Rate as previously
determined pursuant to clause (ii) above.

 

“Term SOFR”
means the forward-looking term rate for the applicable Corresponding Tenor based on SOFR that has been selected or recommended
by the Relevant Governmental Body.

 

“Compounded
SOFR” means the compounded average of SOFR for the applicable Corresponding Tenor, with the rate, or methodology for
this rate, and conventions for this rate (which, for example, may be compounded in arrears with a lookback and/or suspension period
as a mechanism to determine the interest amount payable for the applicable calendar quarter or compounded in advance) being established
in accordance with the rate, or methodology for this rate, and conventions for this rate selected or recommended by the Relevant
Governmental Body for determining compounded SOFR.

 

“SOFR”
means with respect to any day means the Secured Overnight Financing Rate published for such day by the Federal Reserve Bank of
New York, as the administrator of the benchmark, (or a successor administrator) on the Federal Reserve Bank of New York’s
Website.

 

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“Corresponding
Tenor” with respect to a Replacement Rate means a tenor (or observation period) having approximately the same length
(disregarding business day adjustment) as the applicable tenor (or observation period) for the then-current Floating Rate.

 

“Benchmark
Replacement Adjustment” means the spread adjustment, or method for calculating or determining such spread adjustment,
(which may be a positive or negative value or zero) that has been selected or recommended by the Relevant Governmental Body for
the transition to the applicable Floating Rate.

 

“Relevant
Governmental Body” means the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially
endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto.

 

“Catch-Up
Hurdle Rate” for any calendar quarter means a rate that is equal to 200% of the Hurdle Rate.

 

“Incentive
Fee Cap” means for any calendar quarter an amount equal to (a) 12.5% of the Cumulative Net Return (as defined below)
minus (b) the aggregate Income-Based Fee that was paid in respect of the period ending with the calendar quarter immediately
preceding the most recently completed calendar quarter (or the portion thereof) included in the period for calculation of the Cumulative
Net Return.

 

“Cumulative
Net Return” means (x) the aggregate Pre-Incentive Fee Net Investment Income in respect of either (i) the trailing twelve
calendar quarters ending with the calendar quarter in which the Income-Based Fee is calculated or (ii) prior to the end of the
twelfth calendar quarter after the effective date of this Agreement, the period from the effective date of this Agreement through
the last day of the calendar quarter for which the Income-Based Fee is calculated minus (y) any Net Capital Loss (as defined below),
if any, in respect of the relevant period.

 

“Net Capital
Loss” in respect of a particular period means the difference, if positive, between (i) aggregate capital losses, whether
realized or unrealized, in such period and (ii) aggregate capital gains, whether realized or unrealized, in such period.

 

“Pre-Incentive
Fee Net Investment Income” in respect of a period means 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 companies) accrued during the calendar quarter, minus operating expenses for the quarter (including the Base Management
Fee, any expenses payable under the Administration Agreement, and any interest expense and dividends paid on any outstanding preferred
stock, but excluding the incentive fee). Pre-Incentive Fee Net Investment Income includes, in the case of investments with a deferred
interest feature such as market discount, OID, debt instruments with PIK interest, preferred stock with PIK dividends and zero-coupon
securities, accrued income that the Company has not yet received in cash.

 

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(ii)       The
Capital Gains Fee will be determined and payable in arrears as of the end of each calendar year (or upon a Liquidity Event or a
termination of this Agreement), and will equal 12.5% of the Company’s realized capital gains, if any, on a cumulative basis
from inception through the end of the calendar year, computed net of all realized capital losses and unrealized capital depreciation
on a cumulative basis, less the aggregate amount of any previously paid Capital Gains Fees. If such amount is zero or negative,
then no Capital Gains Fee is payable for such year. A “Liquidity Event” shall mean a corporate control transaction
or similar event (which may include a transaction with an affiliated entity, including an affiliated BDC), such as a strategic
sale of the Company or all or substantially all of the Company’s assets to, or a merger with, another entity, for consideration
payable to stockholders of the Company of cash or publicly listed securities of such other entity (or a combination of cash and
such publicly listed securities).

 

7.       Indemnification.

 

The Adviser assumes
no responsibility under this Agreement other than to render the services called for hereunder in good faith and shall not be responsible
for any action of the Board of Directors in following or declining to follow any advice or recommendations of the Adviser. The
Adviser (and its officers, managers, partners, agents, employees, controlling persons, members 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 1940 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, agents, employees, controlling persons, members
and any other person or entity affiliated with the Adviser) (collectively, the “Indemnified Parties”) and hold
them harmless from and against all damages, liabilities, costs, demands, charges, claims 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) arising out of any actions or omissions 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 Section 7 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 fraud, willful misfeasance, bad
faith or gross negligence in the performance of the Adviser’s duties or by reason of the reckless disregard of the Adviser’s
duties and obligations under this Agreement (as the same shall be determined in accordance with the 1940 Act and any interpretations
or guidance by the SEC or its staff thereunder).

 

8.       Duration
and Termination.

 

(a)       This
Agreement shall become effective as of the first date above written. This Agreement may be terminated at any time, without the
payment of any penalty, upon 60 days’ written notice, (i) by the vote of a majority of the outstanding voting securities
of the Company, or (ii) by the vote of the Company’s Board of Directors, or (iii) by the Adviser upon 90 days’ written
notice. The provisions of Section 7 of this Agreement shall remain in full force and effect, and the Adviser shall remain entitled
to the benefits thereof, notwithstanding any termination of this Agreement. Further, notwithstanding the termination or expiration
of this Agreement as aforesaid, the Adviser shall be entitled to any amounts owed under Section 6 through the date of termination
or expiration.

 

    	 	11	 

     

    

 

(b)       This
Agreement shall continue in effect for two years from the date hereof 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 of Directors,
or by the vote of a majority of the outstanding voting securities of the Company and (B) the vote of a majority of the Non-Interested
Directors in accordance with the requirements of the 1940 Act.

 

(c)       This
Agreement will automatically terminate in the event of its “assignment” (as such term is defined for purposes of Section
15(a)(4) of the 1940 Act).

 

9.       Commodity
Futures Trading Commission.

 

In respect of the Company,
the Adviser will rely on an exemption from registration as a commodity trading advisory (“CTA”) under Commodity Futures
Trading Commission Rule 4.14(a)(8) and will provide commodity interest trading advice to the Company as if it were exempt from
registration as a CTA.

 

10.       Notices.

 

Any notice under this
Agreement shall be in writing to the other party at such address as the other party may designate from time to time for the receipt
of such notice and shall be deemed to be received on the earlier of the date actually received or on the fourth day after the postmark
if such notice is mailed first class postage prepaid.

 

11.       Amendment
of this Agreement.

 

This Agreement may
be amended by mutual consent, but the consent of the Company must be obtained in conformity with the requirements of the 1940 Act.

 

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. This Agreement shall be construed in accordance with the laws of the State of New York and in accordance with the
applicable provisions of the 1940 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 1940 Act, the latter shall control.

 

13.       Miscellaneous.

 

The captions in this
Agreement are included for convenience of reference only and in no way define or delimit any of the provisions hereof or otherwise
affect their construction or effect. If any provision of this Agreement shall be held or made invalid by a court decision, statute,
rule or otherwise, the remainder of this Agreement shall not be affected thereby. This Agreement shall be binding on, and shall
inure to the benefit of the parties hereto and their respective successors.

 

    	 	12	 

     

    

 

14.       Counterparts.

 

This Agreement may
be executed in counterparts by the parties hereto, each of which shall constitute an original counterpart, and all of which, together,
shall constitute one Agreement.

 

[Remainder of Page Intentionally Left
Blank]

 

 

    	 	13	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused the foregoing instrument to be executed by their duly authorized officers, all as of the day and
the year first above written.

 

	 	BARINGS CAPITAL INVESTMENT 
	 	CORPORATION,
	 	a Maryland corporation
	 	 
	 	 
	 	By:	/s/ Elizabeth Murray	 
	 	Name:	Elizabeth Murray
	 	Title:	Principal Accounting Officer
	 	 	 
	 	 	 
	 	BARINGS LLC,
	 	a Delaware limited liability company
	 	 
	 	 
	 	By:	/s/ Jonathan Bock 	 
	 	Name:	Jonathan Bock 
	 	Title:	Managing Director

 

 

 

 

[Signature
Page to Investment Advisory Agreement]Document

Ian Carter
SEPARATION AGREEMENT AND GENERAL RELEASE

This Confidential Separation Agreement and General Release of all claims (“Agreement”) is made by and between Ian Carter (“You” or “Your”) and Hilton Domestic Operating Company Inc. (the “Company”), regarding the terms of Your employment and separation from employment with the Company or one of its affiliates. The general provisions of this Agreement are subject to the Hilton Worldwide Holdings Inc. 2019 Executive Severance Plan, as amended from time to time (the “Plan”), except to the extent modified by this Agreement. The definitions of any capitalized terms not defined in the Agreement are set forth in the Plan.

1.Terms of Your Separation.

Separation Date:       Your employment with the Company will terminate effective the earlier of (i) December 31, 2020 or (ii) the date You commence employment with any subsequent employer other than Hilton or any of its affiliates (the “Separation Date”). You hereby confirm Your resignation from all officer and board positions with the Company and its affiliates effective as of the Separation Date.

Advisory Services:    Effective July 4, 2020 (the “Transition Date”) and through Your Separation Date, You will transition from Your current role and will be employed as a Special Advisor for consultation and advice.

Salary Continuation: You will continue to receive Your current annual base salary (less applicable federal, state and local withholding taxes and other applicable deductions), subject to the COVID-19 salary reduction currently in effect for members of the Company’s Executive Committee, through your Separation Date.

Performance:            You must satisfactorily perform Your duties and any transition tasks assigned to You through the Separation Date, as determined by the Company. If You obtain other employment with the Company or a subsidiary or affiliate prior to Your Separation Date, or if You resign or are terminated for Cause or breach of this Agreement prior to Your Separation Date, You will be ineligible to receive any separation payments or benefits under this Agreement or the Plan, and this Agreement will be null and void.

PTO: You will continue to accrue Paid Time Off (“PTO”) at Your current rate based upon Your years of service with the Company until the Separation Date. The Company will pay You for any accrued, unused PTO through Your Separation Date in accordance with Company policy.

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401(k):                      You will continue to be eligible to participate in the Company’s 401(k) Plan through the Separation Date, with such participation subject to the terms and conditions of the 401(k) Plan.

Pro Rata Bonus:       In accordance with the retirement provisions of the Corporate bonus plan, You are eligible to receive a payment of $420,000 (less applicable federal, state and local withholding taxes and other applicable deductions), representing a pro-rata portion of Your 2020 annual bonus at target level based on time served in Your current role (from January 1, 2020 through June 30, 2020), payable within thirty (30) days of December 31, 2020, subject to the terms and conditions of the Company’s Corporate bonus plan. You will not be eligible for any additional bonus under the Company’s Corporate bonus plan.

LTI: Your LTI awards will continue to vest in accordance with the Retirement Eligibility provision in the LTI Plan and applicable award agreements, subject to Your compliance with any post-termination obligations. If, as of the Separation Date, You have vested and unexercised stock options that were granted in 2014, prior to the adoption of the Retirement Eligibility provision, You will have ninety (90) days from the Separation Date to exercise these stock options. If, as of the Separation Date, You have vested and unexercised stock options that were granted in 2015 or later, You will have five (5) years from the Separation Date (but in no event later than the end of the option period) to exercise these stock options.

COBRA: Your medical, dental and vision benefits, if applicable, continue through Your Separation Date. The date of the qualifying event for purposes of the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) and any applicable state law shall be Your Separation Date. You will be eligible for COBRA continuation health benefits to the extent provided under Part 6 of Subtitle B of Title I of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), provided You otherwise qualify for such COBRA coverage and timely pay the required premiums for any such coverage. You will receive separate information regarding Your option to continue, at Your expense under COBRA, health benefits after Your Separation Date.

Pension: Your accounts in the Hilton UK Pension Plan and the Hilton UK Hotels Ltd Employer-Financed Retirement Benefit Scheme (HUKHERBS/Supplemental Plan) will be paid in accordance with the terms and conditions of the applicable plan.

Long 
Tenure 
Travel 
Program:       You will be eligible for continued access to discounted hotel rooms under Hilton’s Long Tenure Team Member Travel Program commensurate with ten years of service to the Company and subject to the terms and conditions of the program, which may be changed from time to time. These discounted rates are not available and cannot be offered to Your family and friends.
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2.Consideration. In exchange for You signing this Agreement, which includes a general release in Section 3, in accordance with Section 17 below, and also for signing the further attached general release (the "Second Release") on or within seven (7) days after the Separation Date, and for You not revoking the general release or Second Release, and subject to the terms of the Plan and this Agreement, including Your compliance with the obligations described herein, the Company will provide You with the following consideration (the “Consideration”):

Separation Payment: You will receive a lump sum Separation Payment of $3,360,000 (less applicable federal, state and local withholding taxes and other applicable deductions) payable within thirty (30) days of December 31, 2020. The Separation Payment represents an amount equal to the sum of two times (2x) Your Annual Base Salary and (ii) Target Bonus. This payment is not considered eligible compensation for purposes of the Company’s 401(k) Plan.
COBRA Payment You will receive a lump sum payment of $27,802 (less applicable federal, state and local withholding taxes and other applicable deductions) payable within thirty (30) days of December 31, 2020, which is equivalent to twelve (12) months of the excess of (i) the COBRA cost over (ii) the amount that You would have had to pay for the coverage if You had remained employed and paid for the coverage at the active employee rate, less applicable withholding taxes. This payment is not considered eligible compensation for purposes of the Company’s 401(k) Plan.
Life Insurance: You will be eligible to convert Your Company-sponsored life insurance coverage that is in place immediately prior to Your Separation Date into an individual life insurance policy in accordance with the terms of the Company’s life insurance plan. The Company will make a taxable cash payment to You of $5,778, equal to the amount required to continue such life insurance coverage in place on the Separation Date as an individual policy for twelve (12) months following the Separation Date. This amount will be paid in a single lump sum (less applicable federal, state and local withholding taxes and other applicable deductions), within thirty (30) days of December 31, 2020 (“Life Insurance Payment”). This payment is not considered eligible compensation for purposes of the Company’s 401(k) Plan.

Outplacement:  The Company will provide You with outplacement services provided by a firm determined by the Company in its sole discretion for up to twelve (12) months following December 31, 2020. The outplacement services will be provided pursuant to an agreement between the Company and a Company- approved vendor, which the Company will pay directly. Outplacement services must be initiated within sixty (60) days of signing this Agreement.

You acknowledge that: (i) the Consideration described above constitutes all monetary and non- monetary terms and benefits associated with Your separation, (ii) the Consideration is inclusive of any severance benefits to which You are eligible under any severance plan, agreement or arrangement sponsored by or agreed to by the Company or its affiliates, (iii) the Consideration exceeds any earned wages or anything else of value otherwise owed to You by the Company, and (iv) You would not receive this Consideration absent Your execution of this Agreement.
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As a condition for receiving the Consideration, You will be required to execute the Second Release on or within seven (7) days after the Separation Date, covering any matters, disputes, claims or potential matters, disputes or claims that arise or that You may allege have arisen during the period between Your execution of this Agreement and the Separation Date. You may not execute the Second Release prior to your Separation Date. Your execution of the Second Release shall be a condition to Your eligibility for the Consideration.

3.General Release. In exchange for the Consideration identified above, You hereby covenant not to sue and release and forever discharge the Company and any of its past or present successors, predecessors, subsidiaries, affiliates, and parents, and their respective past and present officers, directors, employees, insurers, investors and agents, and all of their successors and assigns (collectively "Released Parties") from any and all causes of action, claims or demands, known or unknown, that exist as of the date You sign this Agreement relating in any way to Your employment with the Company or the separation of Your employment. Without limiting the generality of the foregoing, the claims You are waiving include, but are not limited to, wrongful and retaliatory discharge, defamation, libel, slander, breach of contract, false imprisonment, or any other contract, tort or common law claim. You are also releasing all claims under any federal, state or local law, rule, regulation or ordinance, including, but not limited to, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Older Workers’ Benefit Protection Act, the Americans With Disabilities Act, the Employee Retirement Income Security Act of 1974, the Pregnancy Discrimination Act, the Family and Medical Leave Act (to the extent permitted by law), the Civil Rights Act of 1871, the Civil Rights Act of 1991, The Genetic Information Nondiscrimination Act of 2008, the Fair Credit Reporting Act, the Equal Pay Act, the Massachusetts Fair Employment Practices Act; the Massachusetts Wage Payment Statute; the Massachusetts Wage and Hour Laws; the West Virginia Human Rights Act, the New Jersey Conscientious Employee Protection Act; the Minnesota Human Rights Act, the Virginia Human Rights Act – Va. Code § 2.2-3900 et seq., any regulations thereunder, and any human rights law of any Virginia county or municipality; Virginia Statutory Provisions Regarding Retaliation/Discrimination for exercising rights under the Workers’ Compensation Act – Va. Code § 65.2-308(A) and (B); The Virginia Equal Pay Act – Va. Code § 40.1-28.6; The Virginians With Disabilities Act – Va. Code § 51.5-1 et seq.; Virginia statutory provisions regarding AIDS testing – Va. Code Ann. §32.1-36.1; Virginia statutory provisions regarding wage payments – Va. Code § 40.1-28.8 et seq.; Virginia statutory provisions regarding occupational safety and health – Va. Code § 401-49.3 et seq. Such released claims also include any and all claims with respect to attorneys' fees or under any Company handbook, policy, procedure or benefit plan (except (i) vested benefits, if any, under the Company's 401(k) Plan and the Company’s retirement plan, and (ii) accrued benefits, if any, under any Company welfare benefit plan, as defined in Section 3(1) of ERISA).

If You work or have worked in California, or if You reside in California, You waive all rights under California Civil Code Section 1542, which provides:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

Thus, notwithstanding the provisions of section 1542 (or any other state law counterpart to section 1542), and to implement a full and complete release and discharge of the Released Parties, You expressly acknowledge this Agreement is intended to include in its effect, without limitation, all 
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Claims You do not know or suspect to exist in Your favor at the time of signing this Agreement, and that this Agreement contemplates the extinguishment of any such Claim or Claims. You warrant You have read this Agreement, including this waiver of California Civil Code section 1542 (and any other state’s counterpart to section 1542), and that You have consulted counsel or have had the opportunity to consult counsel about this Agreement and specifically about the waiver of section 1542, and that You understand this Agreement and the section 1542 waiver, and so You freely and knowingly enter into this Agreement.

Notwithstanding the foregoing, the parties agree that this General Release does not apply to any claims You may have for workers’ compensation benefits, unemployment insurance or indemnification as provided by state law, or any other claims that cannot be lawfully released. Excepted from the General Release provisions of this Agreement are Your rights to file a charge with an administrative agency and to participate in an agency investigation or report possible violations of federal law or regulation to any governmental agency or entity. However, You knowingly and intentionally waive any right to monetary relief or other individual specific remedy that might be sought on Your behalf by any other person, entity, local, state or federal government or agency thereof, including specifically the Equal Employment Opportunity Commission, U.S. Department of Labor, or any state agency. Nothing herein shall preclude Your right to receive an award from a governmental agency for information provided under any whistleblower program. You understand that neither this provision nor anything else in this Agreement prohibits You from reporting possible violations of federal law or regulation to any governmental agency or entity, including but not limited to the Department of Justice, the Securities and Exchange Commission, Congress, and any agency Inspector General, or making other disclosures protected under the whistleblower provisions of federal law or regulation. You further understand that You do not need the prior authorization of the Company’s legal department to make any such reports or disclosures and You are not required to notify the Company that You have made such reports or disclosures.

Except as provided above, this General Release includes all claims existing as of the date You sign this Agreement, even though You did not know or suspect those claims to exist at the time You signed the Agreement, regardless of whether knowledge of such claims or the underlying facts would have materially affected Your decision to sign this Agreement. Your subsequent discovery of different or additional facts shall not affect the enforceability of this General Release. Notwithstanding the foregoing, this General Release shall not bar any claim to enforce, or alleging a breach of, this Agreement.

4.Ongoing Cooperation. You agree to cooperate and take reasonable steps in the future in order to carry out the terms of this Agreement, including without limitation, providing additional information, signing documents, and responding to inquiries, all as may be requested from time to time. You agree to cooperate fully and provide assistance to the Company in any legal or other proceedings which may be required, including any litigation or potential litigation or administrative, regulatory or investigatory matter in which You are, or may be, a witness, or as to which You possess, or may possess, relevant information. Subject to advance approval, the Company shall pay all reasonable expenses incurred in connection with a request made by a Released Party pursuant to this section. You further agree that, without the prior written consent of the Company or its attorneys, You will not communicate with any individual who is pursuing, or may be pursuing, any claims against the Company, or any attorneys for such individuals, about such claims or potential claims, and You will promptly inform the Company or its counsel of any efforts by such persons or their attorneys to speak with You.

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5.Return of Company Property. On or before the Separation Date, You will turn over any Company records, materials, documents, information or property in Your possession including, without limitation, ID cards, keys, credit cards, files, software, business equipment, cell phone, laptop computer and instruction manuals. After following Company process and procedures, including the removal of Company software and all Company-related data and information, You may retain Your laptop, cell phone and corresponding phone number. You agree that You will not retain or provide to anyone other than the Company any Company materials, documents, information or property, or any copies, excerpts, or summaries of such materials, documents, information or property. To the extent You have any Company-related data or information stored on any personal computer, Personal Digital Assistant (PDA) or other electronic storage facility in Your personal possession or control, You agree that You will immediately delete all such data or information, and will not retain copies or downloads of any such data or information in any format whatsoever. The Company is not required to provide any Consideration unless and until You fully comply with this provision.

6.Restrictive Covenants Regarding Non-Competition and Non-Solicitation. You acknowledge and recognize the highly competitive nature of the businesses of the Company and its subsidiaries and affiliates. Accordingly, You agree as follows:

a.During Your employment and the one-year period following the Separation Date (the “Restricted Period”), You will not, whether on Your own behalf or on behalf of or in conjunction with any person or entity, directly or indirectly solicit or assist in soliciting away from the Company the business of any then current client or customer, or any potential client or customer with whom You (or Your direct reports) had personal contact or dealings, or to which You were aware of any confidential information, on behalf of the Company during the one-year period preceding the Separation Date.

b.During the Restricted Period, You will not directly or indirectly:

i.engage in the Business providing services in the nature of the services You provided to the Company at any time in the one year prior to the Separation Date for a Competitor in the Restricted Area;

ii.enter the employ of, or render any services to, a Competitor in the Restricted Area, except where such employment or services do not relate in any manner to the Business;

iii.acquire a financial interest in, or otherwise become actively involved with, a Competitor, directly or indirectly, as an individual, partner, shareholder, officer, director, principal, agent, trustee or consultant; or

iv.intentionally and adversely interfere with, or attempt to adversely interfere with, business relationships between the Company and any of its clients, customers, suppliers, partners, members or investors.

c.Notwithstanding anything to the contrary in this Section 6, You may, directly or indirectly, own, solely as an investment, securities of any person or entity engaged in the business of operating, managing or franchising hotel and lodging properties and timeshares (“Business”) (including, without limitation, a Competitor) which are publicly traded on a national or regional stock exchange or on the over-the-counter market if You (i) are not a 
6

controlling person of, or a member of a group which controls, such person and (ii) do not, directly or indirectly, own 2% or more of any class of securities of such person.

d.During the Restricted Period, You will not, whether on Your own behalf or on behalf of or in conjunction with any person or entity, directly or indirectly:

i.solicit or encourage any employee of the Company to leave the employment of the Company; or

ii.hire any employee who was employed by the Company as of the Separation Date or who left the employment of the Company coincident with, or within one year prior to or after, the Separation Date, provided that this prohibition does not apply to (i) administrative personnel employed by the Company or (ii) any Company employee who is hired away from the Company as a result of responding to a generic job posting on a website or in a newspaper or periodical of general circulation, without any involvement or encouragement by You.

e.During the Restricted Period, You will not, whether on Your own behalf or on behalf of or in conjunction with any person or entity, directly and intentionally encourage any consultant of the Company to cease working with the Company.

f.It is expressly understood and agreed that, although You and the Company consider the restrictions contained in this Section 6 to be reasonable, if a final judicial determination is made by a court of competent jurisdiction that the time or territory or any other restriction contained in this Section 6 is an unenforceable restriction against You, the provisions of this Section 6 shall not be rendered void but shall be deemed amended to apply as to such maximum time and territory and to such maximum extent as such court may judicially determine or indicate to be enforceable. Alternatively, if any court of competent jurisdiction finds that any restriction contained in this Section 6 is unenforceable, and such restriction cannot be amended so as to make it enforceable, such finding shall not affect the enforceability of any of the other restrictions contained herein.

g.The period of time during which the provisions of this Section 6 shall be in effect shall be extended by the length of time during which You are in breach of the terms hereof as determined by any court of competent jurisdiction on the Company’s application for injunctive relief.

h.For purposes of this Section 6, “Competitor” shall mean any person, firm, partnership, joint venture, association, corporation or other business organization, entity or enterprise whatsoever which is engaged in the business of acquiring controlling investments in, owning, operating, managing or franchising hotel and lodging properties, short term rentals or serviced apartment businesses, including, but not limited to, Accor Company, AirBnB Inc., Best Western Company, Carlson Hospitality Company, Choice Hotels International, G6 Hospitality, Host Hotels & Resorts, Inc., Hyatt Hotels Corporation, Intercontinental Hotels Group, LQ Management LLC, Marriott International, Wyndham Hotels & Resorts, Inc., and Wynn Ltd.

i.You acknowledge and agree that a violation of any of the terms of this Agreement will cause the Company irreparable injury for which adequate remedy at law is not available and that the Company may seek an injunction, restraining order or other equitable relief to 
7

prevent breaches of the provisions of this Agreement and to enforce specifically the terms and provisions hereof in any court of competent jurisdiction in the United States or any state thereof, in addition to any other remedy to which it may be entitled at law or equity.

7.Confidential Information.

a.You agree that You will not at any time (x) retain or use for the benefit, purposes or account of You or any other person or entity; or (y) disclose, divulge, reveal, communicate, share, transfer or provide access to any person outside the Company (other than its professional advisers who are bound by confidentiality obligations or otherwise in performance of Your duties under Your employment and pursuant to customary industry practice), any non-public, proprietary or confidential information – including without limitation trade secrets, know- how, research and development, software, databases, inventions, processes, formulae, technology, designs and other intellectual property, information concerning finances, investments, profits, pricing, costs, products, services, vendors, customers, clients, partners, investors, personnel, compensation, recruiting, training, advertising, sales, marketing, promotions, government and regulatory activities and approvals – concerning the past, current or future business, activities and operations of the Company, its Subsidiaries or affiliates and/or any third party that has disclosed or provided any of same to the Company on a confidential basis (“Confidential Information”) without the prior written authorization of the Board of Directors of the Company.

b.“Confidential Information” shall not include any information that is (i) generally known to the industry or the public other than as a result of Your breach of this covenant; (ii) made legitimately available to You by a third party without breach of any confidentiality obligation of which You have knowledge; or (iii) required by law to be disclosed; provided that with respect to subsection (iii) You shall give prompt written notice to the Company of such requirement, disclose no more information than is so required, and reasonably cooperate with any attempts by the Company to obtain a protective order or similar treatment.

c.Upon termination of Your employment with the Company for any reason, You shall (x) cease and not thereafter commence use of any Confidential Information or intellectual property (including without limitation, any patent, invention, copyright, trade secret, trademark, trade name, logo, domain name or other source indicator) owned or used by the Company, its subsidiaries or affiliates; and (y) immediately destroy, delete, or return to the Company, at the Company’s option, all originals and copies in any form or medium (including memoranda, books, papers, plans, computer files, letters and other data) in Your possession or control (including any of the foregoing stored or located in Your office, home, laptop or other computer, whether or not Company property) that contain Confidential Information, except that You may retain only those portions of any personal notes, notebooks and diaries that do not contain any Confidential Information.

d.Nothing contained in this Agreement limits (i) Your ability to disclose any information to governmental agencies or commissions as may be required by law, or (ii) Your right to communicate, cooperate or file a complaint with any U.S. federal, state or local governmental or law enforcement branch, agency or entity (collectively, a “Governmental Entity”) with respect to possible violations of any U.S. federal, state or local law or regulation, or otherwise make disclosures to any Governmental Entity, in each case, that are protected under the whistleblower provisions of any such law or regulation, provided 
8

that in each case such communications and disclosures are consistent with applicable law, or (iii) Your right to receive an award from a Governmental Entity for information provided under any whistleblower program, without notice to the Company. This Agreement does not limit Your right to seek and obtain a whistleblower award for providing information relating to a possible securities law violation to the Securities and Exchange Commission. You will not be held criminally or civilly liable under any U.S. federal or state trade secret law for the disclosure of a trade secret that is made (i) in confidence to a U.S. federal, state, or local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, or (ii) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. If You file a lawsuit for retaliation by an employer for reporting a suspected violation of law, You may disclose the trade secret to Your attorney and use the trade secret information in the court proceeding, if You file any document containing the trade secret under seal, and do not disclose the trade secret, except pursuant to court order. You are not required to give prior notice to (or get prior authorization from) the Company regarding any such communication or disclosure. Except as otherwise provided in this paragraph or under applicable law, under no circumstance are You authorized to disclose any information covered by the Company’s or any of its affiliates’ attorney-client privilege or attorney work product or the Company’s or any of its affiliates’ trade secrets without the prior written consent of the Company.

8.Non-Disparagement. During your employment and at all times thereafter, You agree that You will not directly, or through any other person or entity, make any public or private statements that are disparaging of the Company, its affiliates or subsidiaries, or their respective businesses or employees, officers, directors, or stockholders, or any product or service offered by the Company.

9.Employee Representations. You represent and agree that:

a.You have suffered no specific injuries while employed by the Company that You did not report to the Company.
b.Except as provided in this Agreement, You have been provided all wages, compensation and benefits due and owing to You.

c.You fully understand all terms of this Agreement, have been provided a copy of the Plan, and are signing this Agreement voluntarily and with full knowledge of their significance.

d.As a condition to the receipt of the Consideration provided in Section 2 of this Agreement, You must fully comply with Your obligations as set forth in the Plan and in this Agreement, including, but not limited to, Your obligations in Sections 4, 5, 6, 7 and 8 of this Agreement.

e.The Company, including any of its subsidiaries, divisions and/or affiliates, has no obligation now or at any time in the future to rehire, engage, employ or do business with You in any capacity, including as an independent contractor, agent or consultant.

f.You understand that this Agreement reflects all of the terms agreed to by You and the Company. In signing this Agreement, You do not rely and have not relied upon any representation or statement made by the Company or by the Company's agents, representatives or attorneys that is not specifically stated in this written Agreement. Any 
9

verbal or written representation or statement not expressly included in this Agreement will not be enforceable against the Company.

10.Contact Information. The Company and its representatives may need to contact You in the future in connection with this Agreement. You confirm that Your current contact information is as follows:

Mailing Address: 
Phone: 
You agree to provide prompt written notice to Matt Schuyler, Chief Human Resources Officer,
delivered to the Company’s headquarters at 7930 Jones Branch Drive, McLean, VA, 22102 of any change to Your contact information shown above.

11.Non-Admissions. By signing this Agreement, the Company does not admit to any wrongdoing or legal violation by the Company or the Released Parties. Accordingly, this Agreement may not be used in any proceeding as an admission, but only in an action to enforce its terms.

12.Confidentiality of Agreement. You agree that the terms of this Agreement are confidential and You will not divulge any terms of this Agreement to anyone except Your accountant, attorney, or spouse, if any, and except as required by law.

13.Legal Review. This Agreement is intended as a legally binding and enforceable document. You have been advised to seek legal counsel and have been provided time and opportunity to consult with an attorney prior to executing this Agreement.

14.Severability. If any part of this Agreement is held invalid, that part shall be severed and the remaining parts shall be given full force and effect. Notwithstanding the foregoing, in the event the General Release in this Agreement is declared invalid, this Agreement shall be null and void, and the Company shall be entitled to the return of the Consideration paid to You through the date any portion of the Agreement is held invalid.
15.Section 409A. Except as otherwise provided in Section 2 of this Agreement, it is intended that the Consideration paid pursuant to Section 2 of this Agreement be exempt from Section 409A due to the “short-term deferral” exception set forth in Treasury Section 1.409A-1(b)(4), or such other exemption as may apply. In no event will any Consideration be paid later than March 15th of the year following the year in which Your employment terminates. Each payment or benefit payable under this Agreement shall constitute separate payments for purposes of Treasury Regulation Section 1.409A- 2(b)(2). In the event that any of the amounts listed in Section 2 of this Agreement are considered nonqualified deferred compensation as defined in Section 409A and such amounts are payable during a period in which You are a “Specified Employee” under Section 409A, then, amounts that would otherwise be payable during the six-month period immediately following the Separation Date will be accumulated through and paid on the first day of the seventh month following Your Separation Date (or if You die during such period, within 30 days after Your death). The normal payment or distribution schedule for any remaining payments or distributions will resume at the end of the six- month period.

16.Complete Agreement/Governing Law. This Agreement and the Plan are incorporated herein by reference, and constitute the complete understanding and entire agreement of the parties and supersedes any and all prior agreements, understandings, negotiations and discussions, whether oral or written; provided, however, that in the event that You have previously executed or are 
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subject to an arbitration agreement or other agreement with the Company that contains confidentiality, nondisclosure, noncompetition and/or non-solicitation obligations (“Prior Agreements”), then such provisions of the relevant Prior Agreements shall survive and are reaffirmed as an essential term and condition of this Agreement and are to be read in conjunction with this Agreement to afford the Company the broadest protections allowed by law. The Agreement cannot be amended, terminated, discharged or waived, except by a mutually agreed upon writing signed by You and an authorized representative of the Company. The laws of the Commonwealth of Virginia, without any reference to or application of conflicts of laws provisions thereof, shall govern and control this Agreement.

17.Consideration and Revocation Period. Pursuant to the Older Workers Benefit Protection Act of 1990 (“OWBPA”), You are advised: (1) to consult an attorney regarding this Agreement before executing the Agreement; (2) that rights or claims, including those arising under the Age Discrimination in Employment Act of 1967 (“ADEA”), that may arise after the date this Agreement is executed are not waived; (3) You have twenty-one (21) days from Your receipt of this Agreement to consider it before signing and returning, although You may, at your discretion, choose to sign and return it earlier; (4) for a period of seven (7) days following Your signing of this Agreement, You may revoke this Agreement;(5) this Agreement shall not become effective or enforceable until seven
(7) days after You sign and do not revoke this Agreement; and (6) You may revoke this Agreement only by sending written notice of revocation delivered to Matt Schuyler, Chief Human Resources Officer within this seven (7) day period. The revocation must be received or postmarked no later than midnight on the seventh day following Your execution of this Agreement. Any revocation must state “I hereby revoke my acceptance of our agreement and general release.”

YOU UNDERSTAND THAT YOU ARE WAIVING ANY CLAIMS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT AND THE OLDER WORKERS’ BENEFIT PROTECTION ACT.

YOU AGREE THAT ANY MODIFICATIONS, MATERIAL OR OTHERWISE, MADE TO THIS AGREEMENT AND GENERAL RELEASE, DO NOT RESTART OR AFFECT IN ANY MANNER THE ORIGINAL UP TO TWENTY-ONE (21) CALENDAR DAY CONSIDERATION PERIOD.

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YOU FREELY AND KNOWINGLY, AND AFTER DUE CONSIDERATION, ENTER INTO THIS AGREEMENT AND GENERAL RELEASE INTENDING TO WAIVE, SETTLE AND RELEASE ALL CLAIMS YOU HAVE OR MIGHT HAVE AGAINST RELEASED PARTIES.

Hilton Domestic Operating Company Inc.

By:  /s/ Matthew W. Schuyler 
Name: Matthew W. Schuyler, CHRO
Date:  June 19, 2020 
Employee

By: /s/ Ian Carter  
Name: Ian Carter  
Date:     June 18, 2020 

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Ian Carter 

SECOND RELEASE

In exchange for the Consideration offered by Hilton Domestic Operating Company Inc. (the “Company”) in the previously-executed Confidential Separation Agreement and General Release (the “Agreement”), and pursuant to Section 2 therein, Ian Carter, for You and Your heirs, personal representatives, and assigns (referred to herein jointly as “You” or “Your”), hereby agrees as follows:

1.General Release and Covenant Not to Sue. In exchange for the Consideration identified above, You hereby covenant not to sue and release and forever discharge the Company and any of its past or present successors, predecessors, subsidiaries, affiliates, and parents, and their respective past and present officers, directors, employees, insurers, investors and agents, and all of their successors and assigns (collectively "Released Parties") from any and all causes of action, claims or demands, known or unknown, that exist as of the date You sign this Agreement relating in any way to Your employment with the Company or the separation of Your employment. Without limiting the generality of the foregoing, the claims You are waiving include, but are not limited to, wrongful and retaliatory discharge, defamation, libel, slander, breach of contract, false imprisonment, or any other contract, tort or common law claim. You are also releasing all claims under any federal, state or local law, rule, regulation or ordinance, including, but not limited to, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Older Workers’ Benefit Protection Act, the Americans With Disabilities Act, the Employee Retirement Income Security Act of 1974, the Pregnancy Discrimination Act, the Family and Medical Leave Act (to the extent permitted by law), the Civil Rights Act of 1871, the Civil Rights Act of 1991, The Genetic Information Nondiscrimination Act of 2008, and the Equal Pay Act, the Massachusetts Fair Employment Practices Act; the Massachusetts Wage Payment Statute; the Massachusetts Wage and Hour Laws; the West Virginia Human Rights Act, the New Jersey Conscientious Employee Protection Act; the Minnesota Human Rights Act, the Virginia Human Rights Act – Va. Code § 2.2-3900 et seq., any regulations thereunder, and any human rights law of any Virginia county or municipality; Virginia Statutory Provisions Regarding Retaliation/Discrimination for exercising rights under the Workers’ Compensation Act – Va. Code § 65.2-308(A) and (B); The Virginia Equal Pay Act – Va. Code § 40.1-28.6; The Virginians With Disabilities Act – Va. Code § 51.5-1 et seq.; Virginia statutory provisions regarding AIDS testing – Va. Code Ann. §32.1-36.1; Virginia statutory provisions regarding wage payments – Va. Code § 40.1-28.8 et seq.; Virginia statutory provisions regarding occupational safety and health – Va. Code § 401-49.3 et seq. Such released claims also include any and all claims with respect to attorneys' fees or under any Company handbook, policy, procedure or benefit plan (except (i) vested benefits, if any, under the Company's 401(k) Plan and the Company’s Retirement Plan, and (ii) accrued benefits, if any, under any Company welfare benefit plan, as defined in Section 3(1) of ERISA).

If You work or have worked in California, or if You reside in California, You waive all rights under California Civil Code Section 1542, which provides:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

Thus, notwithstanding the provisions of section 1542 (or any other state law counterpart to section 1542), and to implement a full and complete release and discharge of the Released Parties, You expressly acknowledge this Agreement is intended to include in its effect, without limitation, all Claims You do not know or suspect to exist in Your favor at the time of signing this Agreement, and that this Agreement contemplates the extinguishment of any such Claim or Claims. You warrant You have read this Agreement, including this waiver of California Civil Code section 1542 

Ian Carter 

SECOND RELEASE

(and any other state’s counterpart to section 1542), and that You have consulted counsel or have had the opportunity

Ian Carter 

SECOND RELEASE

to consult counsel about this Agreement and specifically about the waiver of section 1542, and that You understand this Agreement and the section 1542 waiver, and so You freely and knowingly enter into this Agreement.

Notwithstanding the foregoing, the parties agree that this General Release does not apply to any claims You may have for workers’ compensation benefits, unemployment insurance or indemnification as provided by state law, or any other claims that cannot be lawfully released. Excepted from the General Release provisions of this Agreement are Your rights to file a charge with an administrative agency and to participate in an agency investigation or report possible violations of federal law or regulation to any governmental agency or entity. However, You knowingly and intentionally waive any right to monetary relief or other individual specific remedy that might be sought on Your behalf by any other person, entity, local, state or federal government or agency thereof, including specifically the Equal Employment Opportunity Commission, U.S. Department of Labor, or any state agency. Nothing herein shall preclude Your right to receive an award from a governmental agency for information provided under any whistleblower program. You understand that neither this provision nor anything else in this Agreement prohibits You from reporting possible violations of federal law or regulation to any governmental agency or entity, including but not limited to the Department of Justice, the Securities and Exchange Commission, Congress, and any agency Inspector General, or making other disclosures protected under the whistleblower provisions of federal law or regulation. You further understand that You do not need the prior authorization of the Company’s legal department to make any such reports or disclosures and You are not required to notify the Company that You have made such reports or disclosures.

Except as provided above, this General Release includes all claims existing as of the date You sign this Agreement, even though You did not know or suspect those claims to exist at the time You signed the Agreement, regardless of whether knowledge of such claims or the underlying facts would have materially affected Your decision to sign this Agreement. Your subsequent discovery of different or additional facts shall not affect the enforceability of this General Release. Notwithstanding the foregoing, this General Release shall not bar any claim to enforce, or alleging a breach of, this Agreement.

1.Acknowledgements and Representations:

a.By Your signature below, You affirm and represent that, as of the date You sign this Second Release, You have not filed or caused to be filed any claim, complaint or action against any of the Released Parties in any form or forum and that You are not presently a party to any claim, complaint or action against any of the Released Parties.

b.You acknowledge and agree that You have complied with Your obligations as set forth in the Plan and in this Agreement, including, but not limited to, Your obligations in Sections 4, 5, 6, 7 and 8 of the Agreement.

c.As an Employee of at least forty (40) years of age, You have certain federal rights under the Age Discrimination in Employment Act (“ADEA”), as amended by the Older Workers Benefit Protection Act. By Your signature below, You hereby acknowledge that the Company has advised You to seek advice of counsel with respect to this Second Release; that You have a period of seven
(7) days after Your Separation Date (which is more than twenty-one (21) days after Your receipt of this Second Release) in which to consider this second Release before signing it; and that You may revoke this Second Release at any time within seven (7) days after You execute it. Any such revocation must be in writing and directed to Matt Schuyler, Chief Human 
1

Ian Carter 

SECOND RELEASE

Resources Officer, within seven (7) days for it to be effective. If You elect to revoke this Second Release, You will not be entitled to the Consideration described in Section 2 of the Agreement.

2

Ian Carter 

SECOND RELEASE

By voluntarily executing this Release, You confirm that You have read and understand and accept the terms of the Agreement and of this Second Release, having had the option to have said terms reviewed by Your attorney. You further acknowledge that You have signed this Second Release as a voluntary act and without coercion or force of any kind whatsoever.

ACCEPTED AND AGREED TO:

/s/ Ian Carter      June 18, 2020                        
Name Date of Execution
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