EX-10.1


 Exhibit 10.1 

AMENDED AND RESTATED 

INVESTMENT ADVISORY 

AGREEMENT 
 BETWEEN

 FS INVESTMENT CORPORATION 

AND 
 FB INCOME ADVISOR,
LLC 
 This Amended and Restated Investment Advisory Agreement (the “Agreement”) made this 16th day of April,
2014, by and between FS INVESTMENT CORPORATION (formerly Franklin Square Investment Corporation), a Maryland corporation (the “Company”), and FB INCOME ADVISOR, LLC (formerly FB Franklin Advisor, LLC), a Delaware limited
liability company (the “Adviser”). This Agreement amends and restates in its entirety that certain Investment Advisory and Administrative Services Agreement, dated February 12, 2008, by and between the Company and the
Adviser (as amended, the “Investment Advisory and Administrative Services Agreement”). 
 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 an investment adviser that has registered as an investment adviser under the Investment
Advisers Act of 1940, as amended (the “Advisers Act”); 
 WHEREAS, pursuant to the Investment Advisory and
Administrative Services Agreement, the Company retained the Adviser to furnish investment advisory services (the “Investment Advisory Services”) to the Company and to provide for the administrative services (the
“Administrative Services”) necessary for the operation of the Company on the terms and conditions set forth therein; 

WHEREAS, the Company and the Adviser desire to amend and restate in its entirety the Investment Advisory and Administrative Services Agreement
to unbundle the Investment Advisory Services and the Administrative Services; 
 WHEREAS, the Company desires to continue to retain the
Adviser to furnish the Investment Advisory Services to the Company on the terms and conditions hereinafter set forth, and the Adviser wishes to continue to be retained to provide such services; and 

WHEREAS, simultaneously with the execution of this Agreement, the Company and the Adviser (in such capacity, the
“Administrator”) have entered into that certain Administration Agreement (the “Administration Agreement”) whereby the Administrator will provide for the Administrative Services on the terms and
conditions set forth therein. 
 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 employs 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 objectives, policies and restrictions that
are set forth in the Company’s then effective Registration Statement on Form N-2 filed with the Securities and Exchange Commission (the “SEC”), as amended from time to time, if any, and/or the Company’s periodic
reports filed with the SEC from time to time; and 
 (ii) during the term of this Agreement in accordance with all other
applicable federal and state laws, rules and regulations, and the Company’s charter and bylaws, in each case as amended from time to time. 

(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 portfolio of the Company, the
nature and timing of the changes therein and the manner of implementing such changes; 
 (ii) identify, evaluate and
negotiate the structure of the investments made by the Company; 
 (iii) execute, monitor and service the Company’s
investments; 
 (iv) determine the securities and other assets that the Company shall purchase, retain, or sell; 

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

(vi) provide the Company with such other investment advisory, research and related services as the Company may, from time to
time, reasonably require for the investment of its funds. 
 (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 investment sub-advisers), and the Adviser hereby accepts, 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 acquire debt or other financing, the Adviser shall 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. 
 (d) Acceptance of Employment. The Adviser
hereby accepts such employment 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 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 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. 

  
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 (i) The Adviser and not the Company shall be responsible for any compensation
payable to any Sub-Adviser. 
 (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 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 any books and records relevant to the provision of the Investment Advisory Services to the Company and shall specifically maintain all books and records with respect to the
Company’s portfolio transactions and shall render to the Board such periodic and special reports as the Board may reasonably request 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. 

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

(a) Adviser Personnel. All personnel of the Adviser, when and to the extent engaged in providing the Investment Advisory Services
hereunder, and the compensation and routine overhead expenses of such personnel allocable to such services, shall be provided and paid for by the Adviser and not by the Company. 

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 Adviser may agree to temporarily or permanently waive, in whole or
in part, the Base Management Fee and/or the Incentive Fee. 
 (a) Base Management Fee. The Base Management Fee shall be calculated at
an annual rate of 2.0% of the Company’s average gross assets. The Base Management Fee shall be payable quarterly in arrears, and shall be calculated based on the average value of the Company’s gross assets at the end of the two most
recently completed calendar quarters. 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. The Base Management Fee for any
partial month or quarter shall be appropriately pro rated. 
 (b) Incentive Fee. The Incentive Fee shall consist of two parts, as
follows: 
 (i) The first part, 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 

  
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Investment Income” for the immediately preceding quarter. The payment of the Subordinated Incentive Fee on Income shall be subject to payment of a preferred return to investors each quarter,
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 2.00% (8.00% annualized), 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 payable under the Administration Agreement and any interest expense and dividends paid on any issued and outstanding preferred stock, but
excluding the Incentive Fee). Pre-Incentive Fee Net Investment Income includes, in the case of investments with a deferred interest feature (such as 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 preferred return rate of 2.00% or 8.00% annualized (the “Preferred Return”) on net assets; 

(B) 100% of the Company’s Pre-Incentive Fee Net Investment Income, if any, that exceeds the Preferred Return but is less
than or equal to 2.50% in any calendar quarter (10.00% 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% on all of the Company’s Pre-Incentive Fee Net Investment Income when the Company’s Pre-Incentive Fee Net Investment Income reaches 2.50% (10.00% 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 2.50% (10.00% annualized)
on net assets, the Subordinated Incentive Fee on Income shall equal 20% of the amount of the Company’s Pre-Incentive Fee Net Investment Income, as the Preferred Return and catch-up will have been achieved; 

provided that, no Subordinated Incentive Fee on Income in respect of this Section 3(b)(i) will be payable except to the extent that
20.0% of the cumulative net increase in net assets resulting from operations over the calendar quarter for which such fees are being calculated and the eleven preceding calendar quarters exceeds the cumulative Incentive Fees accrued and/or paid
pursuant to Section 3(b) for such eleven preceding calendar quarters. For the foregoing purpose, the “cumulative net increase in net assets resulting from operations” is an amount, if positive, equal to the sum of Pre-Incentive Fee
Net Investment Income, Base Management Fees, realized gains and losses and unrealized appreciation and depreciation of the Company for the calendar quarter for which such fees are being calculated and the eleven preceding calendar quarters. 

  
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 (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 Company’s realized capital gains 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 on a cumulative
basis, less the aggregate amount of any previously paid capital gain incentive fees. 
 4. Covenants of the Adviser. 

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

The services of the Adviser to the Company are not exclusive, 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. 

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 

  
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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 its officers, managers, partners, members (and their members, including the owners of their members), agents, employees,
controlling persons and any other person or entity affiliated with the Adviser) shall not be liable to the Company for any action taken or omitted to be taken by the Adviser in connection with the performance of any of its duties or obligations
under this Agreement or otherwise as an investment adviser of the Company (except to the extent specified in Section 36(b) of the Investment Company Act concerning loss resulting from a breach of fiduciary duty (as the same is finally
determined by judicial proceedings) with respect to the receipt of compensation for services, and the Company shall indemnify, defend and protect the Adviser (and its officers, managers, partners, members (and their members, including the owners of
their members), agents, employees, controlling persons and any other person or entity affiliated with the Adviser, each of whom shall be deemed a third party beneficiary hereof) (collectively, the “Indemnified Parties”) and
hold them harmless from and against all damages, liabilities, costs and expenses (including reasonable attorneys’ fees and amounts reasonably paid in settlement) incurred by the Indemnified Parties in or by reason of any pending, threatened or
completed action, suit, investigation or other proceeding (including an action or suit by or in the right of the Company or its security holders) arising out of or otherwise based upon the performance of any of the Adviser’s duties or
obligations under this Agreement or otherwise as an investment adviser of the Company, to the extent such damages, liabilities, costs and expenses are not fully reimbursed by insurance, and to the extent that such indemnification would not be
inconsistent with the laws of the State of Maryland or the charter of the Company. 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 liability 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 Advisor’s duties or by reason of the reckless disregard of the Advisor’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). 
 9. Duration and Termination of
Agreement. 
 (a) Term. This Agreement shall remain in effect for two years, 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 60 days’ written notice, (a) by the vote of a majority of the outstanding voting securities of the Company, (b) by the vote of the Board or (c) by the Adviser. This Agreement shall automatically terminate in the event of its
“assignment” (as such term is defined for purposes of Section 15(a)(4) of the Investment Company Act). 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 aforesaid, the Adviser shall be entitled to any amounts owed to it 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. 

  
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 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. 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. 

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

					
	FS INVESTMENT CORPORATION
		
	By:	 	 /s/ Stephen S. Sypherd

		 	Name:	 	Stephen S. Sypherd
		 	Title:	 	Vice President, Secretary and Treasurer
	
	FB INCOME ADVISOR, LLC
		
	By:	 	 /s/ Michael C. Forman

		 	Name:	 	Michael C. Forman
		 	Title:	 	Manager


 [Signature Page to Amended and Restated Investment Advisory Agreement]