EX-10.1





 Exhibit 10.1 

INVESTMENT ADVISORY 

AGREEMENT 
 BETWEEN

 FS KKR CAPITAL CORP. II 

AND 
 FS/KKR ADVISOR, LLC

 This Investment Advisory Agreement (this “Agreement”) made this 18th day of December, by and between FS KKR CAPITAL CORP. II,
a Maryland corporation (the “Company”), and FS/KKR ADVISOR, LLC, a Delaware limited liability company (the “Adviser”). 

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

WHEREAS, the Adviser is a newly organized investment adviser that intends to register as an investment adviser 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 (the
“Investment Advisory Services”) to the Company on the terms and conditions hereinafter set forth, and the Adviser wishes to be retained to provide such services. 

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

1. Duties of the Adviser. 
 (a) Retention of the
Adviser. The Company hereby appoints the Adviser to act as an 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, in accordance with: 
 (i) the investment objectives, policies and
restrictions that are set forth in the Company’s filings with the Securities and Exchange Commission (the “SEC”), as supplemented, amended or superseded from time to time; 

(ii) all other applicable federal and state laws, rules and regulations, and the Company’s articles of amendment and restatement (as may be amended from
time to time, the “Articles”) and bylaws (as may be amended from time to time); and 
 (iii) such investment policies, directives
and regulatory restrictions as the Company may from time to time establish or issue and communicate to the Adviser in writing. 
 (b) Responsibilities of
the Adviser. 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 and allocation of the Company’s investment portfolio, the nature and timing of any 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, monitor and service the Company’s investments; 

(iv) place orders with respect to, and arrange for, any investment by the Company; 

(v) determine the securities and other assets that the Company shall purchase, retain, or sell; 

  
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 (vi) perform due diligence on prospective portfolio companies; and 

(vii) 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. 
 (c) Power and Authority. To facilitate the Adviser’s performance of these undertakings, but subject to the
restrictions contained herein, the Company hereby delegates to the Adviser (which power and authority may be delegated by the Adviser to one or more Sub-Advisers (as defined below)), and the Adviser hereby
accepts, the power and authority to act on behalf of the Company to effectuate investment decisions for the Company, including the negotiation, execution and delivery of all documents relating to the Company’s investments and the placing of
orders for other purchase or sale transactions on behalf of the Company. In the event that the Company determines to acquire debt or other financing (or to refinance existing debt or other financing), the Adviser shall seek to arrange for such
financing on the Company’s behalf, subject to the oversight and approval of the Board. If it is necessary or appropriate for the Adviser to make investments on behalf of the Company through one or more special purpose vehicles, the Adviser
shall have authority to create or arrange for the creation of such special purpose vehicles and to make such investments through such special purpose vehicles in accordance with applicable law. The Company also grants to the Adviser power and
authority to engage in all activities and transactions (and anything incidental thereto) that the Adviser deems appropriate, necessary or advisable to carry out its duties pursuant to this Agreement, including the authority to provide, on behalf of
the Company, significant managerial assistance to the Company’s portfolio companies to the extent required by the Investment Company Act or otherwise deemed appropriate by the Adviser. 

(d) Acceptance of Appointment. The Adviser hereby accepts such appointment and agrees during the term hereof to render the services described herein
for the compensation provided herein, subject to the limitations contained herein. 
 (e) Sub-Advisers. The
Adviser is hereby authorized to enter into one or more sub-advisory agreements (each, a “Sub-Advisory Agreement”) with other investment advisers
or other service providers (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, subject to the oversight of the Adviser and the Company. Specifically, the Adviser may retain a Sub-Adviser to recommend specific securities or other
investments based upon the Company’s investment objectives, policies and restrictions, and work, along with the Adviser, in sourcing, 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, with the scope of such services and oversight to be set forth in each Sub-Advisory Agreement. 

(i) 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 any Sub-Adviser the amounts due and payable to such Sub-Adviser from the fees and
expenses otherwise payable to the Adviser under this Agreement. 
 (ii) Any Sub-Advisory Agreement entered into by
the Adviser shall be in accordance with the requirements of the Investment Company Act, including, without limitation, the requirements relating to the Board and Company stockholder approval thereunder, and other applicable federal and state law.

 (iii) Any Sub-Adviser shall be subject to the same fiduciary duties imposed on the Adviser pursuant to this
Agreement, the Investment Company Act and the Advisers Act, as well as other applicable federal and state law. 
 (f) Independent Contractor Status.
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. 
 (g) Record Retention. Subject to review by, and the overall control of, the Board, the Adviser shall keep and preserve for
the period required by the Investment Company Act or the Advisers Act, as applicable, any books and records relevant to the provision of the Investment Advisory Services to the Company and shall specifically


  
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maintain all books and records with respect to the Company’s portfolio transactions and shall render to the Board such periodic and special reports as the Board may reasonably request or as
may be required under applicable federal and state law, and shall make such records available for inspection by the Board and its authorized agents, at any time and from time to time during normal business hours. The Adviser agrees that all records
that it maintains for the Company are the property of the Company and shall surrender promptly to the Company any such records upon the Company’s request and upon termination of this Agreement pursuant to Section 9,
provided that the Adviser may retain a copy of such records. 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. 
 2. Expenses Payable by the Adviser.  

All personnel of the Adviser, when and to the extent engaged in providing the Investment Advisory Services herein, and the compensation and routine overhead
expenses of such personnel allocable to such services, shall be provided and paid for by the Adviser or its affiliates and not by the Company. 
 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 herein, a base management fee (the “Base Management Fee”) and an incentive fee (the “Incentive Fee”) as hereinafter set forth. Any of the fees payable to the Adviser under this Agreement for
any partial month or calendar quarter shall be appropriately prorated. The Adviser may agree to temporarily or permanently waive, in whole or in part, the Base Management Fee and/or the Incentive Fee. Prior to the payment of any fee to the Adviser,
the Company shall obtain written instructions from the Adviser with respect to any waiver or deferral of any portion of such fees. Any portion of a deferred fee payable to the Adviser and not paid over to the Adviser with respect to any month,
calendar quarter or year shall be deferred without interest and may be paid over in any such other month prior to the termination of this Agreement, as the Adviser may determine upon written notice to the Company. 

(a) Base Management Fee. The Base Management Fee shall be calculated at an annual rate of 1.50% of the average weekly value of the Company’s gross
assets (excluding cash and cash equivalents); provided, however, that the Base Management Fee shall be calculated at an annual rate of 1.00% of the average weekly value of the Company’s gross assets (excluding cash and cash
equivalents) that exceeds the product of (A) 200% and (B) the average weekly value of the Company’s net assets. In determining the Company’s net assets, shares of preferred stock of the Company created through any reorganization of
the Company’s common stock or a distribution in-kind to holders of the Company’s common stock (the “Recapitalization Preferred Stock”) shall be treated as equity
valued at the liquidation preference of such shares of Recapitalization Preferred Stock as set forth in the applicable certificates of designation. The Base Management Fee shall be payable quarterly in arrears, and shall be calculated based on the
average weekly value of the Company’s gross assets during the most recently completed calendar quarter. All or any part of the Base Management Fee not taken as to any quarter shall be deferred without interest and may be taken in such other
quarter as the Adviser shall determine. 
 (b) Incentive Fee. The Incentive Fee shall consist of two parts, as follows: 

(i) The first part of the Incentive Fee, referred to as the “Subordinated Incentive Fee on Income,” shall be calculated and payable quarterly in
arrears based on the Company’s “Pre-Incentive Fee Net Investment Income” for the immediately preceding quarter. The payment of the Subordinated Incentive Fee on Income shall be
subject to a quarterly hurdle rate expressed as a rate of return on the value of the Company’s net assets at the end of the most recently completed calendar quarter, of 1.75% (7.0% annualized) (the “Hurdle Rate”),
subject to a “catch up” feature (as described below). 
 For this purpose,
“Pre-Incentive Fee Net Investment Income” means 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 during the calendar quarter, minus the Company’s operating expenses for the quarter (including
the Base Management Fee, expenses reimbursed to the Adviser under that certain Administration Agreement, dated as of December 18, 2019, as the same may be amended from time to time, whereby the Adviser provides


  
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administrative services necessary for the operation of the Company and any interest expense and dividends paid on any issued and outstanding preferred shares (other than shares of
Recapitalization 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 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. 

The calculation of the Subordinated Incentive Fee on Income for each quarter is as follows: 

(A) No Subordinated Incentive Fee on Income shall be payable to the Adviser 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, if any, that exceeds the Hurdle Rate but is less than or equal to 2.1875% in any calendar quarter (8.75% annualized) shall be payable to the Adviser. This portion of the
Company’s Subordinated Incentive Fee on Income is referred to as the “catch up” and is intended to provide the Adviser with an incentive fee of 20.0% on all of the Company’s Pre-Incentive
Fee Net Investment Income when the Company’s Pre-Incentive Fee Net Investment Income reaches 2.1875% (8.75% annualized) on net assets in any calendar quarter; and 

(C) For any quarter in which the Company’s Pre-Incentive Fee Net Investment Income exceeds 2.1875% (8.75%
annualized) on net assets, the Subordinated Incentive Fee on Income shall equal 20.0% of the amount of the Company’s Pre-Incentive Fee Net Investment Income, as the Hurdle Rate and catch-up will have been achieved; 
 provided that, commencing with the quarter ended March 31, 2022, the
Subordinated Incentive Fee on Income is subject to a cap (the “Incentive Fee Cap”). 
 The Incentive Fee Cap is an amount equal to:

 (i) 20.0% of the Per Share Pre-Incentive Fee Return for the Current Quarter (as defined
below) and the eleven quarters (or such fewer number of quarters) preceding the Current Quarter commencing with the quarter ended March 31, 2020, less 

(ii) the cumulative Per Share Incentive Fees accrued and/or payable for the eleven calendar quarters (or such fewer number of quarters)
preceding the Current Quarter commencing with the quarter ended March 31, 2020. 
 multiplied by the weighted average number of shares of common
stock of the Company outstanding during the calendar quarter (or any portion thereof) for which the Subordinated Incentive Fee on Income is being calculated (the “Current Quarter”). 

For the foregoing purpose, the “Per Share Pre-Incentive Fee Return” for any calendar quarter is an amount
equal to: 
 (i) the sum of the Pre-Incentive Fee Net Investment Income for the calendar quarter,
realized gains and losses for the calendar quarter and unrealized appreciation and depreciation of the Company’s investments for the calendar quarter, divided by 

(ii) the weighted average number of shares of common stock of the Company outstanding during such calendar quarter. 

For the foregoing purpose, the “Per Share Incentive Fee” for any calendar quarter is equal to: 

(i) the Incentive Fee accrued and/or payable for such calendar quarter, divided by 

(ii) the weighted average number of shares of common stock of the Company outstanding during such calendar quarter. 

  
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 If the Incentive Fee Cap is zero or a negative value, the Company shall pay no Subordinated Incentive Fee on
Income to the Adviser for the Current Quarter. 
 If the Incentive Fee Cap is a positive value but is less than the Subordinated Incentive Fee on Income
calculated in accordance with Section 3(b)(i) above, the Company shall pay the Adviser the Incentive Fee Cap for the Current Quarter. 

If the Incentive Fee Cap is equal to or greater than the Subordinated Incentive Fee on Income calculated in accordance with
Section 3(b)(i) above, the Company shall pay the Adviser the Subordinated Incentive Fee on Income for the Current Quarter. 
 (ii)
The second part of the Incentive Fee, referred to as the “Incentive Fee on Capital Gains,” shall be determined and payable in arrears as of the end of each calendar year (or upon termination of this Agreement). This fee shall
equal 20.0% of the Company’s incentive fee capital gains, which shall equal the realized capital gains (without duplication) of Corporate Capital Trust II (“CCT II”), FS Investment Corporation III (“FSIC III”),
FS Investment Corporation IV (“FSIC IV”) and the Company on a cumulative basis from inception, calculated as of the end of each calendar year, computed net of all realized capital losses and unrealized capital depreciation (without
duplication) on a cumulative basis, less the aggregate amount of any capital gain incentive fees previously paid by CCT II, FSIC III, FSIC IV and the Company. 

4. Covenants of the Adviser.  
 The Adviser is
registered as an investment adviser under the Advisers Act and covenants that it will maintain such registration. The Adviser agrees that its activities will at all times be in compliance in all material respects with all applicable federal and
state laws governing its operations and investments. 
 5. Brokerage Commissions.  

The Adviser is hereby authorized, to the fullest extent now or hereafter permitted by law, to cause the Company to pay a member of a national securities
exchange, broker or dealer an amount of commission for effecting a securities transaction in excess of the amount of commission another member of such exchange, broker or dealer would have charged for effecting that transaction, if the Adviser
determines in good faith, taking into account such factors as price (including the applicable brokerage commission or dealer spread), size of order, difficulty of execution, and operational facilities of the firm and the firm’s risk and skill
in positioning blocks of securities, that such amount of commission is reasonable in relation to the value of the brokerage and/or research services provided by such member, broker or dealer, viewed in terms of either that particular transaction or
its overall responsibilities with respect to the Company’s portfolio, and is consistent with the Adviser’s duty to seek the best execution on behalf of the Company. 

6. Other Activities of the Adviser.  
 The services
provided by 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, member (including its members and the owners of its members), 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). 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. 

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

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

The Adviser and any Sub-Adviser (and their officers, managers, partners, members (and their members, including the
owners of their members), agents, employees, controlling persons (as defined in the Investment Company Act) and any other person or entity affiliated with, or acting on behalf of, the Adviser or Sub-Adviser)
(each, an “Indemnified Party” and, collectively, the “Indemnified Parties”), shall not be liable to the Company for any action taken or omitted to be taken by any such Indemnified Party 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 Indemnified Parties (each of whom shall be deemed
a third party beneficiary hereof) and hold them harmless from and against all damages, liabilities, costs and expenses (including reasonable attorneys’ fees and amounts reasonably paid in settlement) (“Losses”) 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 or otherwise
based upon the performance of any of the Indemnified Parties’ duties or obligations under this Agreement, any Sub-Advisory Agreement, or otherwise as an investment adviser of the Company, to the extent
such Losses are not fully reimbursed by insurance, and to the extent that such indemnification would not be inconsistent with the Articles, the laws of the State of Maryland, the Investment Company Act or other applicable law, including, as
applicable prior to a listing of shares of the Company’s common stock on a national securities exchange (a “Listing”), Section II.G of the Omnibus Guidelines published by the North American Securities Administrators Association
on March 29, 1992 (the “NASAA Guidelines”), as it may be amended from time to time. Notwithstanding the preceding sentence of this Section 8 to the contrary, nothing contained herein shall protect or
be deemed to protect the Indemnified Parties against or entitle or be deemed to entitle the Indemnified Parties to indemnification in respect of, any Losses to the Company or its stockholders 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 (to the extent
applicable, 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). In addition, notwithstanding any of the foregoing to the contrary, the provisions of
this Section 8 shall not be construed so as to provide for the indemnification of any Indemnified Party for any liability (including liability under federal securities laws which, under certain circumstances, impose
liability even on persons that act in good faith), to the extent (but only to the extent) that such indemnification would be in violation of applicable law, but shall be construed so as to effectuate the provisions of this
Section 8 to the fullest extent permitted by law. 
 9. Duration and Termination of Agreement.  

(a) Term. This Agreement shall remain in effect for two (2) years commencing on the date hereof, and thereafter shall continue automatically for
successive annual periods, provided that such continuance is specifically approved at least annually by (i) the vote of the Board, or by the vote of a majority of the outstanding voting securities of the Company and (ii) 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. 
 (b) Termination. This Agreement may be terminated at any time, without the payment of any penalty,
upon sixty (60) days’ written notice (i) by the Company to the Adviser, (x) upon vote of a majority of the outstanding voting securities of the Company (within the meaning of Section 2(a)(42) of the Investment Company Act),
or (y) by the 

  
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vote of the Board, or (ii) by the Adviser to the Company. This Agreement shall automatically terminate in the event of its “assignment” (as such term is defined for
purposes of Section 15(a)(4) of the Investment Company Act). Further, notwithstanding the termination or nonrenewal of this Agreement as aforesaid, the Adviser shall be entitled to any amounts owed to it under
Section 3 through the date of termination or nonrenewal, 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. 
 (c) Payments to and Duties of Adviser Upon Termination. 

(i) After the termination of this Agreement, the Adviser shall not be entitled to compensation or reimbursement for further services provided hereunder,
except that it shall be entitled to receive from the Company within thirty (30) days after the effective date of such termination all unpaid reimbursements and all earned but unpaid fees payable to the Adviser prior to termination of this
Agreement. 
 (ii) The Adviser shall promptly upon termination: 

(A) Deliver to the Board a full accounting, including a statement showing all payments collected by it and a statement of all money held by it, covering the
period following the date of the last accounting furnished to the Board; 
 (B) Deliver to the Board all assets and documents of the Company then in custody
of the Adviser; and 
 (C) Cooperate with the Company to provide an orderly management transition. 

10. Proxy Voting.  
 The Adviser will exercise
voting rights on any assets held in the portfolio securities of portfolio companies. The Adviser is obligated to furnish to the Company, in a timely manner, a record of all proxies voted in such form and format that complies with applicable federal
statutes and regulations. 
 11. 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. 

12. 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. 
 13. Entire
Agreement; Governing Law.  
 This Agreement contains the entire agreement of the parties and supersedes all prior agreements, understandings and
arrangements with respect to the subject matter hereof. Notwithstanding the place where this Agreement may be executed by any of the parties hereto, this Agreement shall be construed in accordance with the laws of the State of New York. For so long
as the Company is regulated as a BDC under the Investment Company Act, this Agreement shall also be construed in accordance with the applicable provisions of the Investment Company Act. In such case, to the extent the applicable laws of the State of
New York, or any of the provisions herein, conflict with the provisions of the Investment Company Act, the latter shall control. 
 14. Severability.
 
 If any provision of this Agreement shall be declared illegal, invalid, or unenforceable in any jurisdiction, then such provision shall be deemed
to be severable from this Agreement (to the extent permitted by law) and in any event such illegality, invalidity or unenforceability shall not affect the remainder hereof. 

  
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 15. Counterparts.  

This Agreement may be executed in counterparts, each of which shall be deemed to be an original copy and all of which together shall constitute one and the
same instrument binding on all parties hereto, notwithstanding that all parties shall not have signed the same counterpart. 
 16. Third Party
Beneficiaries.  
 Except for any Sub-Adviser (with respect to Section 8) and any
Indemnified Party, such Sub-Adviser and the Indemnified Parties each being an intended beneficiary of this Agreement, this Agreement is for the sole benefit of the parties hereto and their permitted assigns
and nothing herein express or implied shall give or be construed to give to any person, other than the parties hereto and such assigns, any legal or equitable rights hereunder. 

17. Survival.  
 The provisions of Sections
8, 9(b), 9(c), 13, 16 and this Section 17 shall survive termination of this Agreement. 
 18.
Insurance.  
 Subject to the requirements of Rule 17d-1(d)(7) under the Investment Company Act, the
Company shall acquire and maintain a directors and officers liability insurance policy or similar insurance policy, which may name the Adviser and any Sub-Adviser each as an additional insured party (each an
“Additional Insured Party” and collectively the “Additional Insured Parties”). Such insurance policy shall include reasonable coverage from a reputable insurer. The Company shall make all premium
payments required to maintain such policy in full force and effect; provided, however, each Additional Insured Party, if any, shall pay to the Company, in advance of the due date of such premium, its allocated share of the premium.
Irrespective of whether the Adviser and any Sub-Adviser is a named Additional Insured Party on such policy, the Company shall provide the Adviser and any Sub-Adviser
with written notice upon receipt of any notice of: (a) any default under such policy; (b) any pending or threatened termination, cancellation or non-renewal of such policy or (c) any coverage
limitation or reduction with respect to such policy. The foregoing provisions of this Section 18 notwithstanding, the Company shall not be required to acquire or maintain any insurance policy to the extent that the same is
not available upon commercially reasonable pricing terms or at all, as determined in good faith by the required majority (as defined in Section 57(o) of the Investment Company Act) of the Board. 

19. Brand Usage  
 The Adviser conducts its
investment advisory business under, and owns all rights to, the trademark “FS/KKR Advisor” and the “FS/KKR Advisor” design (collectively, the “Brand”). In connection with the Company’s (a) public
filings; (b) requests for information from state and federal regulators; (c) offering materials and advertising materials; and (d) investor communications, the Company may state in such materials that investment advisory services are
being provided by the Adviser to the Company under the terms of this Agreement. The Adviser hereby grants a non-exclusive, non-transferable, non-sublicensable and royalty-free license (the “License”) to the Company for the use of the Brand solely as permitted in the foregoing sentence. Prior to using the Brand in any manner, the
Company shall submit all proposed uses to the Adviser for prior written approval solely to the extent the Company’s use of the Brand or any combination or derivation thereof has materially changed from the Company’s use of the Brand
previously approved by the Adviser. The Adviser reserves the right to terminate the License immediately upon written notice for any reason, including if the usage is not in compliance with its standards and policies. Notwithstanding the foregoing,
the term of the License granted under this Section 19 shall be for the term of this Agreement only, including renewals and extensions, and the right to use the Brand as provided herein shall terminate immediately upon the
termination of this Agreement. The Company agrees that the Adviser is the sole owner of the Brand, and any and all goodwill in the Brand arising from the Company’s use shall inure solely to the benefit of the Adviser. Without limiting the
foregoing, the License shall have no effect on the Company’s ownership rights of the works within which the Brand shall be used. 

  
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 20. Listing  

The provisions set forth in Exhibit A to this Agreement shall apply prior to a Listing. Following a Listing, the Company may restate this Agreement to
remove this Section 20, Exhibit A and any reference to Exhibit A or the NASAA Guidelines in this Agreement without any further action by the Board or the Company’s stockholders. 

[Remainder of page left intentionally blank] 

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

			
	FS KKR CAPITAL CORP. II
		
	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














 EXHIBIT A 

Capitalized terms used but not defined shall have the meanings ascribed to such terms in the Investment Advisory Agreement, dated as of
December 18, 2019 (the “Agreement”), between FS KKR Capital Corp. II and FS/KKR Advisor, LLC. 
 1. Duties of the Advisor. 

(a) Administrator. The Adviser shall, upon request by an official or agency administering the securities laws of a state, province or
commonwealth (an “Administrator”), submit to such Administrator the reports and statements required to be distributed to the Company’s stockholders pursuant to the Agreement, the Company’s then effective Registration
Statement on Form N-2, if any (as amended from time to time, the “Registration Statement”) and applicable federal and state law. 

(b) Fiduciary Duty. It is acknowledged that the Adviser shall have a fiduciary responsibility for the safekeeping and use of all funds and assets of
the Company, whether or not in the Adviser’s immediate possession or control. The Adviser shall not employ, or permit another to employ, such funds or assets in any manner except for the exclusive benefit of the Company. The Adviser shall not,
by entry into an agreement with any stockholder of the Company or otherwise, contract away the fiduciary obligation owed to the Company and the Company’s stockholders under common law. 

2. Base Management Fee and Incentive Fee Calculations. 

Appendix A sets forth examples of how the Base Management Fee and the Incentive Fee are calculated. 

3. Covenants of the Advisor. 
 (a) Reports to
Stockholders. The Adviser shall prepare or shall cause to be prepared and distributed to stockholders during each year the following reports of the Company (either included in a periodic report filed with the SEC or distributed in a separate
report): 
 (i) Quarterly Reports. Within sixty (60) days of the end of each calendar quarter, a report containing the same financial information
contained in the Company’s Quarterly Report on Form 10-Q filed by the Company under the Securities Exchange Act of 1934, as amended. 

(ii) Annual Report. Within one hundred and twenty (120) days after the end of the Company’s fiscal year, an annual report containing: 

(A) A balance sheet as of the end of each fiscal year and statements of income, equity, and cash flow, for the year then ended, all of which shall be prepared
in accordance with generally accepted accounting principles and accompanied by an auditor’s report containing an opinion of an independent certified public accountant; 

(B) A report of the activities of the Company during the period covered by the report; 

(C) Where forecasts have been provided to the Company’s stockholders, a table comparing the forecasts previously provided with the actual results during
the period covered by the report; and 
 (D) A report setting forth distributions by the Company for the period covered thereby and separately identifying
distributions from (i) cash flow from operations during the period; (ii) cash flow from operations during a prior period which have been held as reserves; and (iii) proceeds from disposition of the Company’s assets. 

(b) Reserves. In performing its duties under the Agreement, the Adviser shall cause the Company to provide for adequate reserves for normal
replacements and contingencies (but not for payment of fees payable to the Adviser under the Agreement) by causing the Company to retain a reasonable percentage of proceeds from offerings and revenues. 












 (c) Recommendations Regarding Reviews. From time to time and not less than quarterly, the Adviser
must review the Company’s accounts to determine whether cash distributions are appropriate. The Company may, subject to authorization by the Board, distribute pro rata to the stockholders funds received by the Company which the Adviser deems
unnecessary to retain in the Company. 
 (d) Temporary Investments. The Adviser shall, in its sole discretion, temporarily place proceeds from
offerings by the Company into short term, highly liquid investments which, in its reasonable judgment, afford appropriate safety of principal during such time as it is determining the composition and allocation of the portfolio of the Company and
the nature, timing and implementation of any changes thereto pursuant to Section 1(b) of the Agreement; provided however, that the Adviser shall be under no fiduciary obligation to select any such short-term, highly liquid
investment based solely on any yield or return of such investment. The Adviser shall cause any proceeds of the offering of the Company’s securities not committed for investment within the later of two (2) years from the initial date of
effectiveness of the Registration Statement or one year from termination of the offering, unless a longer period is permitted by the applicable Administrator, to be paid as a distribution to the stockholders of the Company as a return of capital
without deduction of Front End Fees (as defined below). 
 4. Limitations on Front End Fees. Notwithstanding anything in the Agreement to the contrary: 

(a) All fees and expenses paid by any party for any services rendered to organize the Company and to acquire assets for the Company (“Front End
Fees”) shall be reasonable and shall not exceed 15% of the gross offering proceeds, regardless of the source of payment. Any reimbursement to the Adviser or any other person for deferred organizational and offering costs, including any
interest thereon, if any, will be included within this 15% limitation. 
 (b) The Adviser shall commit at least
eighty-two percent (82%) of the gross offering proceeds towards the investment or reinvestment of assets and reserves as set forth in Section 3(b) of this Exhibit A above on behalf of
the Company. The remaining proceeds may be used to pay Front End Fees. 
 5. Limitations on Indemnification. 

(a) Limitations on Indemnification. Notwithstanding Section 8 to the contrary, the Company shall not provide for
indemnification of the Indemnified Parties for any Loss suffered by the Indemnified Parties, nor shall the Company provide that any of the Indemnified Parties be held harmless for any Loss suffered by the Company, unless all of the following
conditions are met: 
 (i) the Indemnified Party has determined, in good faith, that the course of conduct which caused the Loss was in the best interests of
the Company; 
 (ii) the Indemnified Party was acting on behalf of or performing services for the Company; 

(iii) such Loss was not the result of negligence or misconduct by the Indemnified Party; and 

(iv) such indemnification or agreement to hold harmless is recoverable only out of the Company’s net assets and not from stockholders. 

Furthermore, the Indemnified Party shall not be indemnified for any Losses arising from or out of an alleged violation of federal or state securities laws
unless one or more of the following conditions are met: 
 (i) there has been a successful adjudication on the merits of each count involving alleged
securities law violations; 
 (ii) such claims have been dismissed with prejudice on the merits by a court of competent jurisdiction; or 












 (iii) a court of competent jurisdiction approves a settlement of the claims against a particular indemnitee
and finds that indemnification of the settlement and related costs should be made, and the court of law considering the request for indemnification has been advised of the position of the SEC and the published position of any state securities
regulatory authority in which securities of the Company were offered or sold as to indemnification for violations of securities laws. 
 (b) Advancement
of Funds. The Company shall be permitted to advance funds to the Indemnified Party for legal expenses and other costs incurred as a result of any legal action for which indemnification is being sought and will do so if: 

(i) the proceeding relates to acts or omissions with respect to the performance of duties or services on behalf of the Company; 

(ii) the Indemnified Party provides the Company with written affirmation of his or her good faith belief that the standard of conduct necessary for
indemnification by the Company has been met; 
 (iii) the legal proceeding was initiated by a third party who is not a stockholder or, if by a stockholder
of the Company acting in his or her capacity as such, a court of competent jurisdiction approves such advancement; and 
 (iv) the Indemnified Party
provides the Company with a written agreement to repay the amount paid or reimbursed by the Company, together with the applicable legal rate of interest thereon, in cases in which such Indemnified Party is found not to be entitled to
indemnification. 
 6. Other Matters. Without the approval of holders of a majority of the shares of common stock of the Company entitled to vote on
the matter, the Adviser shall not: (i) amend the Agreement except for amendments that do not adversely affect the interests of the stockholders; (ii) voluntarily withdraw as the Adviser unless such withdrawal would not affect the tax
status of the Company and would not materially adversely affect the stockholders; (iii) appoint a new Adviser; (iv) sell all or substantially all of the Company’s assets other than in the ordinary course of the Company’s
business; or (v) cause the merger or other reorganization of the Company. In the event that the Adviser should withdraw pursuant to (ii) above, the withdrawing Adviser shall pay all expenses incurred as a result of its withdrawal. The
Company may terminate the Adviser’s interest in the Company’s revenues, expenses, income, losses, distributions and capital by payment of an amount equal to the then present fair market value of the terminated Adviser’s interest,
determined by agreement of the terminated Adviser and the Company. If the Company and the Adviser cannot agree upon such amount, then such amount will be determined in accordance with the then current rules of the American Arbitration Association.
The expenses of such arbitration shall be borne equally by the terminated Adviser and the Company. The method of payment to the terminated Adviser must be fair and must protect the solvency and liquidity of the Company. 

7. Conflicts of Interest and Prohibited Activities 
 (a)
No Exclusive Agreement. The Adviser is not hereby granted or entitled to an exclusive right to sell or exclusive employment to sell assets for the Company. 

(b) Rebates, Kickbacks and Reciprocal Arrangements. 
 The
Adviser agrees that it shall not (A) receive or accept any rebate, give-up or similar arrangement that is prohibited under applicable federal or state securities laws, (B) participate in any
reciprocal business arrangement that would circumvent provisions of applicable federal or state securities laws governing conflicts of interest or investment restrictions, or (C) enter into any agreement, arrangement or understanding that would
circumvent the restrictions against dealing with affiliates or promoters under applicable federal or state securities laws. 
 The Adviser agrees that it
shall not directly or indirectly pay or award any fees or commissions or other compensation to any person or entity engaged to sell the Company’s Common Stock or give investment advice to a potential stockholder; provided, however, that this
subsection shall not prohibit the payment to a registered broker-dealer or other properly licensed agent of sales commissions for selling or distributing the Company’s Common Stock. 












 (c) Commingling. The Adviser covenants that it shall not permit or cause to be permitted the
Company’s funds to be commingled with the funds of any other entity. Nothing in this Exhibit A, Section 7(c) shall prohibit the Adviser from establishing a master fiduciary account pursuant to which separate sub-trust accounts are established for the benefit of affiliated programs, provided that the Company’s funds are protected from the claims of other programs and creditors of such programs. 












 Appendix A 

NOTE: All percentages herein refer to net assets. 

Example 1: Subordinated Incentive Fee on Income for Each Calendar Quarter* 

Scenario 1 
 Assumptions 

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

Hurdle Rate(1) = 1.75% 

Base Management Fee(2) = 0.375% 

Other expenses (legal, accounting, custodian, transfer agent, etc.)(3) = 0.2% 

Pre-Incentive Fee Net Investment Income 

(investment income – (Base Management Fee + other expenses)) = 0.675% 

Pre-Incentive Fee Net Investment Income does not exceed the Hurdle Rate, therefore there is no
Subordinated Incentive Fee on Income payable. 
 Scenario 2 

Assumptions 
 Investment income (including
interest, dividends, fees, etc.) = 2.675% 
 Hurdle Rate(1) = 1.75% 

Base Management Fee(2) = 0.375% 

Other expenses (legal, accounting, custodian, transfer agent, etc.)(3) = 0.2% 

Pre-Incentive Fee Net Investment Income 

(investment income – (Base Management Fee + other expenses)) = 2.1% 

Subordinated Incentive Fee on Income = 100% × Pre-Incentive Fee Net Investment Income
(subject to “catch-up”)(4) 

= 100% x (2.1% – 1.75%) 
 =
0.35% 
 Pre-Incentive Fee Net Investment Income exceeds the Hurdle Rate, but does not fully
satisfy the “catch-up” provision, therefore the Subordinated Incentive Fee on Income is 0.35%. 

Scenario 3 
 Assumptions 

Investment income (including interest, dividends, fees, etc.) = 3.5% 

Hurdle Rate(1) = 1.75% 

Base Management Fee(2) = 0.375% 

Other expenses (legal, accounting, custodian, transfer agent, etc.)(3) = 0.2% 

Pre-Incentive Fee Net Investment Income 

(investment income – (Base Management Fee + other expenses)) = 2.925% 

Catch up = 100% × Pre-Incentive Fee Net Investment Income (subject to “catch-up”)(4) 
 Subordinated Incentive
Fee on Income = 100% × “catch-up” + (20.0% × (Pre-Incentive Fee Net Investment Income – 2.1875%)) 












 Catch-up = 2.1875% –1.75% 

= 0.4375% 
 Subordinated
Incentive Fee on Income = (100% × 0.4375%) + (20.0% × (2.925% – 2.1875%)) 
 = 0.4375% + (20.0% × 0.7375%) 

= 0.4375% + 0.1475% 
 = 0.585%

 Pre-Incentive Fee Net Investment Income exceeds the Hurdle Rate and fully satisfies the
“catch-up” provision, therefore the Subordinated Incentive Fee on Income is 0.585%. 

 

	(1)	 Represents 7.0% annualized Hurdle Rate. 



	(2)	 Represents 1.5% annualized Base Management Fee on average weekly gross assets. 



	(3)	 Excludes organizational and offering costs. 



	(4)	 The “catch-up” provision is intended to provide the
Adviser with an Incentive Fee of 20.0% on all Pre-Incentive Fee Net Investment Income when the Corporation’s net investment income exceeds 2.1875% in any calendar quarter. 



Example 2: Incentive Fee on Capital Gains* 

Scenario 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 Incentive Fee on Capital Gains would be: 

Year 1: None 
 Year 2: Incentive
Fee on Capital Gains of $6 million ($30 million realized capital gains on sale of Investment A multiplied by 20.0%) 
 Year 3:
None, because $5 million (20.0% multiplied by ($30 million cumulative capital gains less $5 million cumulative capital depreciation)) less $6 million (previous capital gain incentive fee paid to the Adviser in Year 2) is less
than $0 
 Year 4: Incentive Fee on Capital Gains of $200,000, because $6.2 million ($31 million cumulative realized capital gains
multiplied by 20.0%) less $6 million (previous capital gain incentive fee paid to the Adviser in Year 2) is $200,000 
 Scenario 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 Incentive Fee on Capital Gains, if any, would be: 

Year 1: None 
 Year 2:
$5 million Incentive Fee on Capital Gains, because 20.0% multiplied by $25 million ($30 million realized capital gains on Investment A less unrealized capital depreciation on Investment B) is $5 million 

Year 3: $1.4 million Incentive Fee on Capital Gains, because $6.4 million (20.0% multiplied by $32 million ($35 million
cumulative realized capital gains less $3 million unrealized capital depreciation)) less $5 million capital gain incentive fee paid to the Adviser in Year 2 is $1.4 million 

Year 4: None 
 Year 5: None,
because $5 million (20.0% multiplied by $25 million (cumulative realized capital gains of $35 million less realized capital losses of $10 million)) less $6.4 million cumulative capital gain incentive fee paid to the Adviser in
Year 2 and Year 3 is less than $0 
  

	*	 The returns shown are for illustrative purposes only. No Subordinated Incentive Fee on Income is payable to the
Adviser in any calendar quarter in which the Corporation’s Pre-Incentive Fee Net Investment Income does not exceed the Hurdle Rate. Positive returns are shown to demonstrate the fee structure
and there is no guarantee that positive returns will be realized. Actual returns may vary from those shown in the examples above.