EX-10.2


 Exhibit 10.2 

EXECUTION VERSION 

EXPENSE SUPPORT AND CONDITIONAL REIMBURSEMENT AGREEMENT 

This Expense Support and Conditional Reimbursement Agreement (this “Agreement”) is made this 9th day of April, 2018, by and between FS INVESTMENT CORPORATION IV, a Maryland corporation (the “Company”), and FS/KKR ADVISOR, LLC, a Delaware limited liability company (the
“Advisor”). 
 WHEREAS, the Company is a non-diversified, closed-end management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended (the “Investment Company
Act”); 
 WHEREAS, the Advisor is the Company’s investment adviser; and 

WHEREAS, the Company and the Advisor have determined that it is appropriate and in the best interests of the Company to ensure that no portion
of distributions made to the Company’s stockholders will be paid from the Company’s offering proceeds or borrowings. 
 NOW,
THEREFORE, in consideration of the premises and for other good and valuable consideration, the parties hereby agree as follows: 
  

	1.	Advisor Expense Payments to the Company 

 (a)    On a
quarterly basis, the Advisor shall reimburse the Company in an amount equal to the difference between the Company’s cumulative distributions paid to the Company’s stockholders in each calendar quarter less Available Operating Funds
(defined below) received by the Company on account of its investment portfolio during such calendar quarter. Any payments required to be made by the Advisor pursuant to the preceding sentence shall be referred to herein as an “Expense
Payment.” 
 (b)    The Advisor’s obligation to make an Expense Payment shall automatically become a
liability of the Advisor, and the right to such Expense Payment shall be an asset of the Company on the last business day of the applicable calendar quarter. The Expense Payment for any calendar quarter shall be paid by the Advisor to the Company in
any combination of cash or other immediately available funds, and/or offset against amounts due from the Company to the Advisor, no later than the earlier of (i) the date on which the Company closes its books for such calendar quarter and
(ii) forty-five days after the end of such calendar quarter. 
 (c)    For purposes of this Agreement,
“Available Operating Funds” means the sum of (i) the Company’s net investment company taxable income as defined in Section 852(b)(2) of the Internal Revenue Code of 1986, as amended (the
“Code”) (including net short-term capital gains reduced by net long-term capital losses, as such terms are defined in Section 1222 of the Code), (ii) the Company’s net capital gains (that is, the excess of net
long-term capital gains over net short-term capital losses, as such terms are defined in Section 1222 of the Code) and (iii) dividends and other distributions paid to the Company on account of investments in portfolio companies (to the
extent such amounts listed in clause (iii) are not included under clauses (i) and (ii) above). 

  
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	2.	Reimbursement of Expense Payments by the Company 


(a)    Following any calendar quarter in which Available Operating Funds exceed the cumulative distributions paid to the
Company’s stockholders in such calendar quarter (the amount of such excess being hereinafter referred to as “Excess Operating Funds”), the Company shall pay such Excess Operating Funds, or a portion thereof in accordance
with Sections 2(b), 2(c) and 2(d), as applicable, to the Advisor until such time as all Expense Payments made by the Advisor to the Company within three years prior to the last business day of such calendar quarter have been reimbursed. Any payment
required to be made by the Company pursuant to this Section 2(a) shall be referred to herein as a “Reimbursement Payment.” 

(b)    Subject to Sections 2(c) and 2(d), as applicable, the amount of the Reimbursement Payment for any calendar quarter
shall equal the lesser of (i) the Excess Operating Funds in such quarter and (ii) the aggregate amount of all Expense Payments made by the Advisor to the Company within three years prior to the last business day of such calendar quarter
that have not been previously reimbursed by the Company to the Advisor. 
 (c)    Notwithstanding anything to the
contrary in this Agreement, the amount of the Reimbursement Payment for any calendar quarter shall be reduced to the extent that such Reimbursement Payment, together with all other Reimbursement Payments paid during that fiscal year, would cause
Other Operating Expenses (as defined below) (on an annualized basis and net of any Expense Payments received by the Company during such fiscal year) to exceed the lesser of (i) 1.75% of the Company’s average net assets attributable to shares of
the Company’s common stock for the fiscal year-to-date period after taking such Expense Payments into account and (ii) the percentage of the Company’s
average net assets attributable to shares of the Company’s common stock represented by Other Operating Expenses during the fiscal year in which such Expense Payment was made (provided, however, that this clause (ii) shall not apply to any
Reimbursement Payment which relates to an Expense Payment made during the same fiscal year). For purposes of this Agreement, “Other Operating Expenses” means the Company’s total Operating Expenses (as defined below),
excluding base management fees, incentive fees, distribution fees, organization and offering costs, financing fees and costs, interest expense, brokerage commissions and extraordinary expenses. “Operating Expenses” means all
operating costs and expenses incurred, as determined in accordance with generally accepted accounting principles for investment companies. The calculation of average net assets shall be consistent with the periodic calculations of average net assets
in the Company’s financial statements. 
 (d)    Notwithstanding anything to the contrary in this Agreement, no
Reimbursement Payment for any calendar quarter shall be made if the annualized rate of regular cash distributions declared by the Company at the time of such Reimbursement Payment is less than the annualized rate of regular cash distributions
declared by the Company at the time the Expense Payment was made to which such Reimbursement Payment relates. 

(e)    The Company’s obligation to make a Reimbursement Payment shall automatically become a liability of the Company
and the right to such Reimbursement Payment shall be an asset of the Advisor on the last business day of the applicable calendar quarter. The 

  
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Reimbursement Payment for any calendar quarter shall be paid by the Company to the Advisor in any combination of cash or other immediately available funds as promptly as possible following such
calendar quarter and in no event later than forty-five days after the end of such calendar quarter. 
 (f)    All
Reimbursement Payments hereunder shall be deemed to relate to the earliest unreimbursed Expense Payments made by the Advisor to the Company within three years prior to the last business day of the calendar quarter in which such Reimbursement Payment
obligation is accrued. 
  

	3.	Termination and Survival 

 (a)    This Agreement shall become
effective as of the date of this Agreement. 
 (b)    This Agreement may be terminated at any time, without the payment
of any penalty, by the Company or the Advisor at any time, with or without notice. 
 (c)    This Agreement shall
automatically terminate in the event of (i) the termination of the Investment Advisory and Administrative Services Agreement, dated April 9, 2018, between the Company and the Advisor; (ii) the board of directors of the Company makes a
determination to dissolve or liquidate the Company; or (iii) upon a Liquidity Event of the Company. For purposes of this Section 3, a “Liquidity Event” means (1) a listing of the Company’s common stock on
a national securities exchange, (2) the sale of all or substantially all of the Company’s assets either on a complete portfolio basis or individually followed by a liquidation or (3) a merger or another transaction approved by the
board of directors in which stockholders receive cash or shares of a publicly-traded company. 
 (d)    Sections 3 and 4
of this Agreement shall survive any termination of this Agreement. Notwithstanding anything to the contrary, Section 2 of this Agreement shall survive any termination of this Agreement with respect to any Expense Payments that have not been
reimbursed by the Company to the Advisor. 
  

	4.    Miscellaneous	

 (a)    The captions of this Agreement are included for convenience
only and in no way define or limit any of the provisions hereof or otherwise affect their construction or effect. 

(b)    This Agreement contains the entire agreement of the parties and supersedes all prior agreements, understandings and
arrangements with respect to the subject matter hereof. 
 (c)    Notwithstanding the place where this Agreement may be
executed by any of the parties hereto, this Agreement shall be construed in accordance with the laws of the State of Delaware. For so long as the Company is regulated as a business development company under the Investment Company Act, this Agreement
shall also be construed in accordance with the applicable provisions of the Investment Company Act. In such case, to the extent the applicable laws of the State of Delaware or any of the provisions herein conflict with the provisions of the
Investment Company Act, the latter shall control. Further, nothing in this Agreement shall be deemed to require the Company to take any action contrary to the Company’s Articles of 

  
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Amendment and Restatement or Bylaws, as each may be amended or restated, or to relieve or deprive the board of directors of the Company of its responsibility for and control of the conduct of the
affairs of the Company. 
 (d)    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 and, to this extent, the provisions of this Agreement shall be deemed to be severable. 

(e)    The Company shall not assign this Agreement or any right, interest or benefit under this Agreement without the
prior written consent of the Advisor. 
 (f)    This Agreement may be amended in writing by mutual consent of the
parties. This Agreement may be executed by the parties on any number of counterparts, delivery of which may occur by facsimile or as an attachment to an electronic communication, each of which shall be deemed an original, and all of said
counterparts taken together shall be deemed to constitute one and the same instrument. 
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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly
authorized representatives as of the date first written above. 
  

			
	FS INVESTMENT CORPORATION IV
		
	By:	 	 /s/ Stephen Sypherd

	Name:	 	Stephen Sypherd
	Title:	 	General Counsel and Secretary
	
	FS/KKR ADVISOR, LLC
		
	By:	 	 /s/ Stephen Sypherd

	Name:	 	Stephen Sypherd
	Title:	 	General Counsel and Secretary



  
 [Signature Page to
Expense Support and Conditional Reimbursement Agreement]