EX-10.1



 Exhibit 10.1 
 INVESTMENT ADVISORY AGREEMENT 
 INVESTMENT ADVISORY AGREEMENT, dated
as of April 3, 2013, by and between Carlyle GMS Finance, Inc., a Maryland corporation (the “Company”), and Carlyle GMS Investment Management L.L.C., a Delaware limited liability company (the
“Adviser”). 
 WHEREAS, the Company is a newly organized closed-end management investment fund that
intends to elect to be treated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “Investment Company Act”); and 

WHEREAS, the Adviser is an investment adviser that 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 mutual agreements set forth herein, the parties agree as follows: 
  

	1.	Duties of the Adviser. 

 (a) The Company hereby retains 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 Company’s
registration statement under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), on Form 10 initially filed on February 11, 2013 (as the same shall be amended from time to time) (the “Form
10”) prior to the filing by the Company of any registration statement under the Securities Act of 1933, as amended (the “Securities Act”), pertaining to an initial public offering (an
“IPO”) by the Company (the “IPO Registration Statement”), and following the filing of the IPO Registration Statement in accordance with the investment objective, policies and restrictions that are set
forth therein (as the same shall be amended 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 as the same shall be amended from time to
time; and (iii) in accordance with the Investment Company Act and the applicable rules and regulations thereunder. 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) monitor the Company’s investments; (iv) determine the securities and other assets that the Company will purchase, retain, or sell; (v) perform due diligence on prospective portfolio companies;
(vi) assist the Board with its valuation of the Company’s assets; (vii) direct investment professionals of the Adviser to provide managerial assistance to portfolio companies of the Company as requested by the Company, from time to
time and (viii) 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. Subject to the supervision of the Board, the Adviser shall have the power and authority on
behalf of the Company to effectuate its investment decisions for the Company, including the execution and delivery of all documents relating to the Company’s investments and the placing of orders for other purchase or sale transactions on
behalf of the Company. In the event that the Company determines to incur debt financing, the Adviser will arrange for such financing on the Company’s behalf, subject to the oversight and approval of the Board. If it is necessary for the Adviser
to make investments on behalf of the Company through a special purpose vehicle, the Adviser shall have authority to create or arrange for the creation of such special purpose vehicle and to make such investments through such special purpose vehicle
(in accordance with the Investment Company Act). 
 (b) The Adviser hereby accepts such retention as investment adviser and
agrees during the term hereof to render the services described herein for the compensation provided herein. 
 (c) This
Agreement is intended to create, and creates, a contractual relationship for services to be rendered by the Adviser acting in the ordinary course of its business and is not intended to create, and does not create, a partnership, joint venture or any
like relationship among the parties hereto (or any other parties). 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. 
 (d) The Adviser shall keep and
preserve for the period required by the Investment Company Act any books and records relevant to the provision of its investment advisory services to the Company and shall specifically maintain all books and records in accordance with
Section 31(a) of the Investment Company Act and the rules thereunder 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 will surrender promptly to the Company any such records upon the Company’s request, provided that the Adviser may retain a copy of such records.

 (e) Subject to the prior approval by the Board and the stockholders of the Company to the extent required under the
Investment Company Act, 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 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. 








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


All investment professionals of the Adviser, and their respective staffs, when and to the extent engaged in providing investment advisory
and management services hereunder, and the compensation and routine overhead expenses of such personnel allocable to such services, will be provided and paid for by the Adviser and not by the Company. The Company will bear all expenses of its
operations and transactions, including (without limitation except as noted) those relating to: the Company’s initial organization costs and offering costs incurred prior to the filing of its election to be treated as a BDC (the amount in excess
of $1,500,000 to be paid by the Adviser); the costs associated with any offerings of the Company’s common stock and other securities; calculating individual asset values and the Company’s net asset value (including the cost and expenses of
any independent valuation firms); expenses, including travel expenses, incurred by the Adviser, or members of its investment team, or payable to third parties, performing due diligence on prospective portfolio companies and, if necessary, expenses
of enforcing the Company’s rights; the base management fee and any incentive fees payable under this Agreement; certain costs and expenses relating to distributions paid on the Company’s shares; administration fees payable under the
administration agreement (the “Administration Agreement”) between the Company and Carlyle GMS Finance Administration, L.L.C. (the “Administrator”) and sub-administration agreements, including related
expenses; debt service and other costs of borrowings or other financing arrangements; the allocated costs incurred by the Adviser in providing managerial assistance to those portfolio companies that request it; amounts payable to third parties
relating to, or associated with, making or holding investments; the costs associated with subscriptions to data service, research-related subscriptions and expenses and quotation equipment and services used in making or holding investments; transfer
agent and custodial fees; costs of hedging; commissions and other compensation payable to brokers or dealers; federal and state registration fees; any U.S. federal, state and local taxes, including any excise taxes; independent director fees and
expenses; costs of preparing financial statements and maintaining books and records, costs of preparing tax returns, costs of Sarbanes-Oxley Act of 2002, as amended (“Sarbanes-Oxley”), compliance and attestation and costs of
filing reports or other documents with the Securities and Exchange Commission (the “SEC”) (or other regulatory bodies), and other reporting and compliance costs, including registration and listing fees, and the compensation
of professionals responsible for the preparation or review of the foregoing; the costs of any reports, proxy statements or other notices to the Company’s stockholders (including printing and mailing costs), the costs of any stockholders’
meetings and the compensation of investor relations personnel responsible for the preparation of the foregoing and related matters; the costs of specialty and custom software for monitoring risk, compliance and overall portfolio, including any
development costs incurred prior to the filing of the Company’s election to be treated as a BDC; the Company’s fidelity bond; directors and officers/errors and omissions liability insurance, and any other insurance premiums;
indemnification payments; direct fees and expenses associated with independent audits, agency, consulting and legal costs; and all other expenses incurred by either the Administrator or the Company in connection with administering its business,
including payments under the Administration Agreement for administrative services that will be equal to an amount that reimburses the Administrator for its costs and expenses and the Company’s allocable portion of overhead incurred by the
Administrator in performing its obligations under the Administration Agreement, including, compensation paid to or compensatory distributions received by its officers (including its Chief Financial Officer and Chief Compliance Officer) and any of
their 







 
respective staff who provide services to the Company, operations staff who provide services to the Company, and any internal audit staff, to the extent internal audit performs a role in the
Company’s Sarbanes-Oxley internal control assessment. 
  

	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 base management fee (“Base Management Fee”) and
an incentive fee (“Incentive Fee”) as hereinafter set forth. The Company shall make any payments due hereunder to the Adviser or to the Adviser’s designee as the Adviser may otherwise direct. To the extent
permitted by applicable law, the Adviser may elect, or the Company may adopt a deferred compensation plan pursuant to which the Adviser may elect, to defer all or a portion of its fees hereunder for a specified period of time. 

(a) The Base Management Fee will be calculated at an annual rate of 1.50% of the Company’s gross assets, which for all purposes
hereunder shall (i) be determined on a consolidated basis in accordance with generally accepted accounting principles in the United States, (ii) include assets acquired through the incurrence of debt, and (iii) exclude cash and any
temporary investments in cash-equivalents, including U.S. government securities and other high-quality investment grade debt investments that mature in 12 months or less from the date of investment. Prior to the completion of an IPO by the Company
that results in an unaffiliated public market float of at least 15% of the aggregate Capital Commitments received prior to the date of such IPO (a “Qualified IPO”), the Adviser will waive its right to receive one-third
(0.50%) of the Base Management Fee. The fee waiver will terminate if and when a Qualified IPO has been consummated. For purposes of this Agreement, “Capital Commitment” refers to the amount of capital committed to the Company by
each investor pursuant to a Subscription Agreement relating to the Company’s initial placement of the Company’s common stock to investors, in the form or substantially the form in which such agreement was approved by the Board on
April 3, 2013. 
 The Base Management Fee will be payable quarterly in arrears. Prior to a Qualified IPO, the Base
Management Fee will be calculated based on the Company’s average daily gross assets during the most recently completed fiscal quarter, and will be appropriately adjusted for any share issuances. Base Management Fees for any partial quarter will
be appropriately pro-rated. Following a Qualified IPO, 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 fiscal quarters, except for the first
quarter following a Qualified IPO, in which case the Base Management Fee will be calculated based on the Company’s gross assets as of the end of such fiscal quarter. In each case, the Base Management Fee will be appropriately adjusted for any
share issuances or repurchases during such fiscal quarter, and the Base Management Fees for any partial month or quarter will be appropriately pro-rated. 
 (b) The Incentive Fee shall consist of two parts, as follows: 
  

	 	(i)	 One part will be calculated and payable quarterly in arrears based on the Pre-Incentive Fee net investment income for the preceding calendar
quarter. “Pre-Incentive Fee net investment income” means consolidated 










	 	
interest income, dividend income and any other income (including any other fees (other than fees for providing managerial assistance), such as commitment, origination, structuring, diligence and
consulting fees or other fees that the Company receives from portfolio companies) accrued by the Company during the calendar quarter, minus the Company’s consolidated operating expenses for the quarter (including the Base Management Fee,
expenses payable under the Administration Agreement, and any interest expense or fees on any credit facilities or outstanding debt and dividends paid on any issued and outstanding preferred stock, but excluding the Incentive Fee).


 Pre-Incentive Fee net investment income does not include, in the case of investments with a deferred interest
feature (such as original issue discount, debt instruments with payment-in-kind interest and zero coupon securities), accrued income that the Company has not yet received in cash. Pre-Incentive Fee net investment income does not include any
realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. 
 Prior to any Qualified
IPO of the Company’s common stock that may occur, Pre-Incentive Fee net investment income, expressed as a rate of return on the average daily Hurdle Calculation Value (as defined below) throughout the immediately preceding calendar quarter,
will be compared to a “hurdle rate” of 1.50% per quarter (6% annualized). “Hurdle Calculation Value” means, on any given day, the sum of (x) the value of the Company’s Net Assets (as defined below) as
of the end of the calendar quarter immediately preceding such day plus (y) the aggregate amount of capital drawn from investors (or reinvested in the Company pursuant to the Company’s dividend reinvestment plan) from the beginning of the
current quarter to such day minus (z) the aggregate amount of distributions (including share repurchases) made by the Company from the beginning of the current quarter to such day (but only to the extent such distributions were not declared and
accounted for on the books and records of the Company in a previous quarter). “Net Assets” as used herein solely for purposes of the Incentive Fee means the Company’s gross assets less consolidated indebtedness, determined in
accordance with generally accepted accounting principles in the United States. 
 Following any Qualified IPO of the
Company’s common stock that may occur, 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
rate of 1.50% per quarter (6% annualized). 
 The Company’s net investment income used to calculate this part of the
Incentive Fee is also included in the amount of its gross assets used to calculate the 1.50% Base Management Fee. The Company will pay the Adviser an Incentive Fee with respect to the Company’s Pre-Incentive Fee net investment income in
each calendar quarter as follows: 
  

	 	(A)	With the exception of the Capital Gains Fee (as defined and discussed below), no 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 Company’s Pre-Incentive Fee net investment income with respect to that portion of such Pre-Incentive Fee net investment income, if any, that exceeds
the hurdle rate but is less than 1.875% in any calendar quarter (7.50% annualized); and 

  

	 	(C)	20% of the amount of the Company’s Pre-Incentive Fee net investment income, if any, that exceeds 1.875% in any calendar quarter (7.50% annualized).


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

	 	(ii)	The second part of the Incentive Fee (the “Capital Gains Fee”) will be determined and payable in arrears as of the end of each calendar year (or
upon termination of this Agreement as set forth below), commencing with the calendar year ending on December 31, 2013, and is calculated at the end of each applicable year by subtracting (1) the sum of the Company’s cumulative
aggregate realized capital losses and aggregate unrealized capital depreciation from (2) the Company’s cumulative aggregate realized capital gains, in each case calculated from inception. If such amount is positive at the end of such
year, then the Capital Gains Fee for such year is equal to 20% of such amount, less the aggregate amount of Capital Gains Fees paid in all prior years. If such amount is negative, then there is no Capital Gains Fee for such year. If this
Agreement shall terminate as of a date that is not a calendar year end, the termination date shall be treated as though it were a calendar year end for purposes of calculating and paying a Capital Gains Fee. 


For purposes of this Section 3(b)(ii): 
 The “cumulative aggregate realized capital gains” are calculated as the sum of the differences, if positive, between (a) the sales price of each investment in the Company’s
portfolio when sold, net of any selling commissions or other selling expenses (the “net sales price”) and (b) the accreted or amortized cost basis of such investment when sold. 

The “cumulative aggregate realized capital losses” are calculated as the sum of the amounts by which (a) the net
sales price of each investment in the Company’s portfolio when sold is less than (b) the accreted or amortized cost basis of such investment when sold. 
 The “aggregate unrealized capital depreciation” is calculated as the sum of the differences, if negative, between (a) the valuation of each investment in the Company’s portfolio
as of the applicable Capital Gains Fee calculation date and (b) the accreted or amortized cost basis of such investment as of the applicable Capital Gains Fee calculation date. 

 

	 	(iii)	 Payment of any Incentive Fee otherwise earned by the Adviser shall be deferred (“Deferred Incentive Fees”) if, during the most
recent four full 










	 	
calendar quarter period (or, if less, the number of full calendar quarters completed since the Company’s initial drawdown of capital from stockholders) ending on or prior to the date such
payment is to be made, the sum of (a) the Company’s aggregate distributions to its stockholders and (b) the change in the Company’s Net Assets (before taking into account any incentive fees payable during that period) is less
than 6.0% of the Company’s Net Assets at the beginning of such period, subject to appropriate proration of such percentage during the four full calendar quarters immediately following the Company’s initial drawdown of capital from
stockholders. These calculations will be appropriately adjusted for any share issuances or repurchases during the relevant period. Any Deferred Incentive Fees shall be carried over for payment in subsequent calculation periods by the
Company. 








 Examples of Quarterly Incentive Fee Calculation 

Example 1: Income Related Portion of Incentive Fee (*): 
 Alternative 1 
 Assumptions 

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

Hurdle rate(1) = 1.50%. 
 Management fee(2) = 0.375%. 
 Other expenses (legal, accounting,
custodian, transfer agent, etc.)(3) = 0.20%.

 Pre-incentive fee net investment income 
 (investment income – (management fee + other expenses)) = 0.675%. 

Pre-incentive net investment income does not exceed hurdle rate, therefore there is no incentive fee. 

Alternative 2 
 Assumptions

 Investment income (including interest, dividends, fees, etc.) = 2.40%. 

Hurdle rate(1) = 1.50%. 
 Management fee(2) = 0.375%. 
 Other expenses (legal, accounting,
custodian, transfer agent, etc.)(3) = 0.20%.

 Pre-incentive fee net investment income 
 (investment income – (management fee + other expenses)) = 1.825%. 
 Incentive fee = 20% × pre-incentive fee net investment income, subject to the “catch-up”(4) 
 = 100% x (1.825%-1.50%) 
 = 0.325%. 

Alternative 3 
 Assumptions

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

Hurdle rate(1) = 1.50%. 
 Management fee(2) = 0.375%. 
 Other expenses (legal, accounting,
custodian, transfer agent, etc.)(3) = 0.20%.

 Pre-incentive fee net investment income 
 (investment income – (management fee + other expenses)) = 3.425%. 
 Incentive fee = 20% × pre-incentive fee net investment income, subject to “catch-up”(4) 
 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% × (3.425% – 1.875%)) 

= 0.375% + (20% × 1.55%) 
 = 0.375% + 0.31% 
 = 0.685%. 







  

	(*) 	 The hypothetical amount of Pre-Incentive Fee net investment income shown is expressed, prior to a Qualified IPO of the Company’s common stock, as
a rate of return on the average daily Hurdle Calculation Value and, subsequently, as a rate of return on the value of the Company’s total Net Assets. 



	(1) 	 Represents 6.00% annualized hurdle rate. 



	(2) 	 Represents 1.50% annualized management fee. 



	(3) 	 Excludes organizational and offering expenses. 



	(4) 	 The “catch-up” provision, as described in Section 3(b)(i)(A)-(C) above, is intended to provide the Adviser with an incentive fee of
approximately 20% on all of the Company’s Pre-Incentive Fee net investment income as if a hurdle rate did not apply when the Company’s net investment income exceeds 1.875% in any calendar quarter. 



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 portion of the incentive fee, if any, would be: 
  

	 	•	 	 Year 1: None. 


  

	 	•	 	 Year 2: $6 million capital gains incentive fee, calculated as follows: 



$30 million realized capital gains on sale of Investment A multiplied by 20%. 

 

	 	•	 	 Year 3: None, calculated as follows:(1) 


 $5 million cumulative fee (20% multiplied by $25 million ($30 million cumulative capital gains less $5 million cumulative capital depreciation)) less $6 million (previous capital gains fee paid in Year
2). 
  

	 	•	 	 Year 4: $200,000 capital gains incentive fee, calculated as follows: 



$6.2 million cumulative fee ($31 million cumulative realized capital gains ($30 million from Investment A and $1 million from Investment
B) multiplied by 20%) less $6 million (previous capital gains fee paid in Year 2). 
  







  

	(1) 	 If this Agreement is terminated on a date other than December 31 of any year, the Company may pay aggregate capital gain incentive fees that are
more than the amount of such fees that would have been payable if this Agreement had been terminated on December 31 of such year. This would occur if the FMV of an investment declined between the time this Agreement was terminated and
December 31. 


 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 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 unrealized
capital depreciation)) less $5 million (previous capital gains fee paid in Year 2) 
  

	 	•	 	 Year 4: $600,000 capital gains incentive fee, calculated as follows: 



$7 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 million cumulative fee (20% multiplied by $25 million ($35 million cumulative realized capital gains less $10 million realized capital
losses)) less $7 million (previous cumulative capital gains fee paid in Years 2, 3 and 4) 







 (c) Any transaction, loan origination, advisory or similar fees (“Transaction
Fees”) received in connection with the Company’s activities or the Adviser’s activities as they relate to the Company shall be the property of the Company. The parties agree that any Transaction Fees paid to the members,
managers, partners or employees of the Company, the Adviser or their respective affiliates in connection with the Company’s activities or the Adviser’s activities as they relate to the Company shall be promptly remitted to the Company;
provided, however, Transaction Fees received in respect of an investment opportunity in which the Company and one or more entities (including affiliates of the Adviser) participate shall be allocated to each of the Company and such entities pro rata
in accordance with their respective investments or proposed investments in such investment opportunity. 
 (d) Notwithstanding
anything to the contrary contained in this Agreement, the Company and the Adviser acknowledge and agree that the provisions of this Section 3 shall be of no force and effect unless and until this Agreement has been approved by (i) the vote
of a majority of the outstanding voting securities of the Company and (ii) the vote of the Board and 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, each in accordance with the requirements of the Investment Company Act (the “Approval Date”). For the avoidance of
doubt, the Adviser shall receive no compensation with respect to services provided hereunder prior to the Approval Date. 
  

	4.	Covenants of the Adviser. 

 The Adviser covenants that it will remain registered as an investment adviser under the Advisers Act so long as it is the investment adviser to the Company and the Company maintains its election to be
regulated as a BDC under the Investment Company Act or otherwise is an investment company registered under the Investment Company 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.	Excess 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.	Limitations on the Employment of the Adviser.  

 The services of the Adviser to the Company are not exclusive, and the Adviser may engage in any other business or render similar or different services to others including, without limitation, the direct
or indirect sponsorship or management of other investment based accounts or commingled pools of capital, however structured, having investment objectives similar to those of the Company, so long as its services to the Company hereunder are not
impaired thereby, and nothing in this Agreement shall limit or restrict the right of any manager, partner, officer or employee of the Adviser to engage in any other business or to devote his or her time and attention in part to any other business,
whether of a similar or dissimilar nature, or to receive any fees or compensation in connection therewith (including fees for serving as a director of, or providing consulting services to, one or more of the 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 ability to enter into sub-advisory
agreements consistent with the requirements of this Agreement. The Adviser assumes no responsibility under this Agreement other than to render the services called for hereunder. It is understood that directors, officers, employees and stockholders
of the Company are or may become interested in the Adviser and its affiliates, as directors, officers, employees, partners, stockholders, members, managers or otherwise, and that the Adviser and directors, officers, employees, partners,
stockholders, members and managers of the Adviser and its affiliates are or may become similarly interested in the Company as stockholders or otherwise. 
  

	7.	Responsibility of Dual Directors, Officers and/or Employees.  

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

	8.	Limitation of Liability of the Adviser; Indemnification.  

 (a) The Adviser (and its officers, managers, partners, agents, employees, controlling persons, members and any other person or entity affiliated with the Adviser, including without limitation its sole
member) 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, agents, employees, controlling persons, members and any other person or entity affiliated with the Adviser, including without
limitation its sole member and the Administrator, each of whom shall be deemed a third party beneficiary hereof) (each, individually, an “Indemnified Party” and 







 
collectively, the “Indemnified Parties”) and hold each of them harmless from and against all damages, liabilities, costs and expenses (including reasonable attorneys’
fees and amounts reasonably paid in settlement) incurred by any of them 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 or otherwise based upon the performance in good faith of any of the Adviser’s duties or obligations under this Agreement or otherwise as an investment adviser of the Company. The Company’s indemnification
of the Indemnified Parties shall, to the extent not in conflict with such insurance policy, be secondary to any and all payment to which any Indemnified Party is entitled from any relevant insurance policy issued to or for the benefit of the Company
and its affiliates or any Indemnified Party. The Company’s indemnification of the Indemnified Parties shall also be secondary to any payment pursuant to any other indemnification obligation of any other relevant entity or person, including
under any insurance policy issued to or for the benefit of such other entity or person, in all cases, to the extent not in conflict with the applicable other indemnification or insurance contract. In the event of payment by the Company under this
Agreement and pursuant to its indemnification obligations, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of any Indemnified Party, including the rights of the Indemnified Parties under any insurance
policies.
 (b) For any claims indemnified by the Company under Section 8(a) above, to the fullest extent permitted by law,
the Company shall promptly pay expenses (including legal fees and expenses) incurred by any Indemnified Party in appearing at, participating in or defending any action, suit, claim, demand or proceeding in advance of the final disposition of such
action, suit, claim, demand or proceeding, including appeals, within 30 days after receipt by the Company of a statement or statements from the Indemnified Party requesting such advance or advances from time to time. Each Indemnified Parties
hereby undertakes to repay any amounts advanced on its behalf (without interest) to the extent that it is ultimately determined that the Indemnified Party is not entitled under this Agreement to be indemnified by the Company. Such undertaking
shall be unsecured and accepted without reference to the financial ability of the Indemnified Parties to make repayment and without regard to the Indemnified Parties’ ultimate entitlement to indemnification under the other provisions of this
Agreement. No other form of undertaking shall be required of the Indemnified Parties other than the execution of this Agreement.

(c) Notwithstanding the above provisions of Section 8 of this Agreement, 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 (as the same shall be determined in
accordance with the Investment Company Act and any interpretations or guidance by the SEC or its staff thereunder). 








	9.	Effectiveness, Duration and Termination of Agreement. 

 (a) This Agreement shall become effective as of the first date above written. The provisions of Section 8 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 set forth in this Section 9, the Adviser shall be entitled to any amounts owed
under Section 3 through the date of termination or expiration and Section 8 shall continue in force and effect and apply to the Adviser and its representatives as and to the extent applicable. 

(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 the vote of the Board and by 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. 
 (c) 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. 
 (d) 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 Investment Company Act). 
  

	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, but the consent of the Company must be obtained in conformity with the requirements of the Investment Company 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 governed
by and construed in accordance with the laws of the State of Delaware, without giving effect to the choice of law principles thereof, and in accordance with the applicable provisions of the Investment Company Act. To the extent the applicable laws
of the State of Delaware, 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 the Investment Company Act and the Advisers Act, as amended, the sole
and exclusive forum for any action, suit or proceeding with respect to this Agreement shall be a federal or state court located in the State of Delaware, and each party hereto, to the fullest extent permitted by law, hereby irrevocably waives any
objection that it may have, whether now or in the future, to the laying of venue in, or to the jurisdiction of, any and each of such courts for the purposes of any 







 
such action, suit or proceeding and further waives any claim that any such action, suit or proceeding has been brought in an inconvenient forum, and each party hereto hereby submits to such
jurisdiction and consents to process being served in any such action, suit or proceeding, without limitation, by United States mail addressed to the party at its principal office. 

[Remainder of page intentionally blank] 







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

			
	 CARLYLE GMS FINANCE, INC.

 

	By:	 	   /s/ Ian J. Sandler

		 	Name: Ian J. Sandler
		 	Title: Chief Operating Officer and General Counsel


  

			
	 CARLYLE GMS INVESTMENT MANAGEMENT L.L.C.
  

	By:	 	   /s/ Orit Mizrachi

		 	Name: Orit Mizrachi
		 	Title: Officer