Document:

SECURITIES
PURCHASE AGREEMENT

 

This
Securities Purchase Agreement (this “Agreement”) is dated as of ___________, 2017, between Document Security
Systems, Inc., a New York corporation (the “Company”), and the purchasers identified on the signature page
hereto (hereinafter referred to individually as a “Purchaser” and collectively as the “Purchasers”).

 

WHEREAS,
subject to the terms and conditions set forth in this Agreement, and in reliance upon the provisions of Section 4(a)(2) of the
Securities Act of 1933, as amended (the “Securities Act”) and Rule 144 promulgated under the Securities Act,
the Company desires to issue and sell to the Purchasers, and each Purchaser desires to purchase from the Company, securities of
the Company as more fully described in this Agreement.

 

NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration
the receipt and adequacy of which are hereby acknowledged, the Company and each Purchaser agree as follows:

 

ARTICLE
I.

DEFINITIONS

 

1.1       Definitions.
In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms have the
meanings set forth in this Section 1.1:

 

“Acquiring
Person” shall have the meaning ascribed to such term in Section 4.4.

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person as such terms are used in and construed under Rule 405 under the Securities Act.

 

“Board
of Directors” means the board of directors of the Company.

 

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or
any day on which banking institutions in the State of New York are authorized or required by law or other governmental action
to close.

 

“Closing”
means the closing of the purchase and sale of Shares and Warrants pursuant to Section 2.1(a).

 

“Closing
Date” means the Trading Day on which all of the Transaction Documents required pursuant to Section 2.1(a) have been
executed and delivered by the applicable parties thereto, and all conditions precedent to (i) the Purchasers’ obligations
to pay their respective Subscription Amounts for the Closing, and (ii) the Company’s obligations to deliver the Shares and
Warrants for the Closing, in each case, have been satisfied or waived, but in no event later than the third Trading Day following
the date hereof.

 

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“Commission”
means the United States Securities and Exchange Commission.

 

“Common
Stock” means the common stock of the Company, par value $0.02 per share, and any other class of securities into which
such securities may hereafter be reclassified or changed.

 

“Common
Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to
acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument
that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive,
Common Stock.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“GAAP”
shall have the meaning ascribed to such term in Section 3.1(h).

 

“Intellectual
Property” shall have the meaning ascribed to such term in Section 3.1(l).

 

“Liens”
means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Material
Adverse Effect” shall have the meaning assigned to such term in Section 3.1(b).

 

“Material
Permits” shall have the meaning ascribed to such term in Section 3.1(j).

 

“Per
Share Purchase Price” equals $0.75, subject to adjustment for reverse and forward stock splits, stock dividends, stock
combinations and other similar transactions of the Common Stock that occur after the date of this Agreement but on or before the
Closing Date.

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial
proceeding, such as a deposition), whether commenced or threatened.

 

“Required
Approvals” shall have the meaning ascribed to such term in Section 3.1(e).

 

“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

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“SEC
Reports” shall have the meaning ascribed to such term in Section 3.1(h).

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Shares”
means the shares of Common Stock issued to the Purchasers pursuant to this Agreement.

 

“Short
Sales” means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall
not be deemed to include the location and/or reservation of borrowable shares of Common Stock).

 

“Subscription
Amount” means the amount to be paid for Shares and Warrants purchased hereunder as specified below each Purchaser’s
name on the signature page of this Agreement and next to the heading “Subscription Amount”, in United States dollars
and in immediately available funds.

 

“Subsidiary”
means any subsidiary of the Company and shall, where applicable, also include any direct or indirect subsidiary of the Company
formed or acquired after the date hereof.

 

“Trading
Day” means a day on which the principal Trading Market is open for trading.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the
New York Stock Exchange or the OTC Bulletin Board (or any successors to any of the foregoing).

 

“Transaction
Documents” means this Agreement, the Warrants and any other documents or agreements executed in connection with the
transactions contemplated hereunder.

 

“Transfer
Agent” means American Stock Transfer and Trust Company, LLC, the current transfer agent of the Company, and any successor
transfer agent of the Company.

 

“Warrants”
means the warrants to purchase up to a number of shares of Common Stock pursuant to this Agreement and the attached Warrant, in
an amount equal to 20% of the number of Shares to be purchased by a Purchaser, with a five-year term and an exercise price of
$1.00 per share, in the form of Exhibit A attached hereto.

 

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ARTICLE
II.

PURCHASE AND SALE

 

2.1       Closing.

 

(a)       Closing.
On the Closing Date, upon the terms and subject to the conditions set forth herein, substantially concurrent with the execution
and delivery of this Agreement by the parties hereto, the Company agrees to sell, and each Purchaser agrees to purchase, that
number of Shares and Warrants equaling the Subscription Amount. Each Purchaser shall deliver to the Company, via wire transfer,
immediately available funds equal to that Purchaser’s Subscription Amount as set forth on the signature page hereto executed
by the Purchaser and the Company shall deliver to such Purchaser its Shares and Warrants, and the Company and each Purchaser shall
deliver the other items set forth in Section 2.2 deliverable at Closing. Upon satisfaction of the covenants and conditions set
forth in Sections 2.2 and 2.3, the Closing shall occur at such location as the parties shall mutually agree, including the delivery
to the Company of immediately available funds comprising the aggregate Subscription Amount for the Closing.

 

2.2       Deliveries.

 

(a)       On
or prior to the Closing Date (except as otherwise required hereby), the Company shall deliver or cause to be delivered to each
Purchaser the following:

 

(i)       this
Agreement and the Warrant duly executed by the Company;

 

(ii)       a
stock certificate or book entry documentation representing the Shares purchased, within five (5) Trading Days following Closing.

 

(b)       On
or prior to the Closing Date, each Purchaser shall deliver or cause to be delivered to the Company, the following:

 

(i)       this
Agreement duly executed by the Purchaser; and

 

(ii)       the
Purchaser’s Subscription Amount by wire transfer to the account specified in writing by the Company.

 

2.3       Closing
Conditions.

 

(a)       The
obligations of the Company hereunder in connection with each Closing are subject to the following conditions being met:

 

(i)       the
accuracy in all material respects on the Closing Date of the representations and warranties of the Purchasers contained herein
(unless made as of a specific date therein in which case they shall be accurate as of such date);

 

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(ii)       all
obligations, covenants and agreements of each Purchaser required to be performed at or prior to the Closing Date shall have been
performed; and

 

(iii)       the
delivery by the Purchasers of the items set forth in Section 2.2(b) of this Agreement.

 

(b)       The
respective obligations of the Purchasers hereunder in connection with the Closing are subject to the following conditions being
met:

 

(i)       the
accuracy in all material respects when made and on the Closing Date of the representations and warranties of the Company contained
herein (unless as of a specific date therein, in which case they shall be accurate as of such date);

 

(ii)       all
obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been
performed;

 

(iii)       the
Shares shall have been approved for listing on the Trading Market;

 

(iv)       the
delivery by the Company of the items set forth in Section 2.2(a) of this Agreement; and

 

(v)       there
shall have been no Material Adverse Effect with respect to the Company since the date hereof.

 

ARTICLE
III.

REPRESENTATIONS AND WARRANTIES

 

3.1       Representations
and Warranties of the Company. Except as set forth in the Company’s previously filed SEC Reports, or in a disclosure
schedule delivered by the Company to the Purchasers prior to the execution of this Agreement, which shall be deemed a part hereof
and shall qualify any representation or warranty otherwise made herein to the extent of the disclosure contained therein, the
Company hereby makes the following representations and warranties to each Purchaser:

 

(a)Subsidiaries.The
Company owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of
any Liens, and all of the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid,
non-assessable and free of preemptive and similar rights to subscribe for or purchase securities.

 

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(b)       Organization
and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly
existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power
and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company
nor any Subsidiary is in violation or default of any of the provisions of its respective certificate or articles of incorporation,
bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business
and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted
or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as
the case may be, could not have or reasonably be expected to result in: (i) a material adverse effect on the legality, validity
or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business,
prospects or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse
effect on the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction
Document (any of (i), (ii) or (iii), a “Material Adverse Effect”) and no Proceeding has been instituted in
any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

 

(c)       Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions
contemplated by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations hereunder
and thereunder. The execution and delivery of this Agreement and each of the other Transaction Documents by the Company and the
consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the
part of the Company and no further action is required by the Company, the Board of Directors or the Company’s stockholders
in connection herewith or therewith other than in connection with the Required Approvals. This Agreement and each other Transaction
Document to which it is a party has been (or upon delivery will have been) duly executed by the Company and, when delivered in
accordance with the terms hereof and thereof, will constitute the valid and binding obligation of the Company enforceable against
the Company in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii)
as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii)
insofar as indemnification and contribution provisions may be limited by applicable law.

 

(d)       No
Conflicts. The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents to
which it is a party, the issuance and sale of the Shares and Warrants and the consummation by it of the transactions contemplated
hereby and thereby do not and will not (i) conflict with or violate any provision of the Company’s or any Subsidiary’s
certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute
a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any
Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment,
acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other
instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary
is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, or (iii) subject to the Required
Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction
of any court or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities
laws and regulations), or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case
of each of clauses (ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.

 

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(e)       Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other
Person in connection with the execution, delivery and performance by the Company of the Transaction Documents that has not been
obtained, other than: (i) the filings required pursuant to Section 4.3 of this Agreement, (ii) application(s) to each applicable
Trading Market for the listing of the Shares for trading thereon in the time and manner required thereby, and (iii) such filings
as may be required to be made under applicable state securities laws (collectively, the “Required Approvals”).

 

(f)       Issuance
of the Shares; Registration. The Shares are duly authorized and, when issued and paid for in accordance with the applicable
Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the
Company. The Company has reserved from its duly authorized capital stock the maximum number of shares of Common Stock issuable
pursuant to this Agreement and the exercise of the Warrants.

 

(g)       Capitalization.
The Company has not issued any capital stock since its most recently filed periodic report under the Exchange Act, other than
pursuant to the exercise of employee stock options under the Company’s stock option plans, the issuance of shares of Common
Stock to employees pursuant to the Company’s incentive stock plan and pursuant to the conversion and/or exercise of Common
Stock Equivalents outstanding as of the date of the most recently filed periodic report under the Exchange Act. No Person has
any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions
contemplated by the Transaction Documents except for any such rights that have been waived. The issuance and sale of the Shares
and Warrants will not obligate the Company to issue shares of Common Stock or other securities to any Person (other than the Purchaser)
and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price
under any of such securities. All of the outstanding shares of capital stock of the Company are duly authorized, validly issued,
fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and none of such outstanding
shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. No further
approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale of the Shares
and Warrants. There are no stockholders agreements, voting agreements or other similar agreements with respect to the Company’s
capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s
stockholders.

 

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(h)       SEC
Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents required
to be filed by the Company under the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the twelve months
preceding the date hereof (or such shorter period as the Company was required by law or regulation to file such material) (the
foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred
to herein as the “SEC Reports”) on a timely basis or has received a valid extension of such time of filing
and has filed any such SEC Reports prior to the expiration of any such extension. As of their respective dates, the SEC Reports
complied in all material respects with the requirements of the Exchange Act, and none of the SEC Reports, when filed, contained
any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order
to make the statements therein, in the light of the circumstances under which they were made, not misleading. The Company has
never been an issuer subject to Rule 144(i) under the Securities Act. The financial statements of the Company included in the
SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission
with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with United
States generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”),
except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements
may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company
and its consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods
then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.

 

(i)       Compliance.
Neither the Company nor any Subsidiary: (i) is in default under or in violation of (and no event has occurred that has not been
waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has
the Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture,
loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is
bound (whether or not such default or violation has been waived), or (ii) is or has been in violation of any statute, rule, ordinance
or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws relating
to taxes, environmental protection, occupational health and safety, product quality and safety and employment and labor matters,
except in each case as could not have or reasonably be expected to result in a Material Adverse Effect.

 

(j)       Regulatory
Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports,
except where the failure to possess such permits could not reasonably be expected to result in a Material Adverse Effect (“Material
Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation
or modification of any Material Permit.

 

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(k)       Title
to Assets. The Company and the Subsidiaries have good and marketable title in fee simple to all real property owned by them
and good and marketable title in all personal property owned by them that is material to the business of the Company and the Subsidiaries,
in each case free and clear of all Liens, except for (i) Liens as do not materially affect the value of such property and do not
materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries and (ii) Liens
for the payment of federal, state or other taxes, for which appropriate reserves have been made in accordance with GAAP and, the
payment of which is neither delinquent nor subject to penalties. Any real property and facilities held under lease by the Company
and the Subsidiaries are held by them under valid, subsisting and enforceable leases with which the Company and the Subsidiaries
are in compliance.

 

(l)       Intellectual
Property. The Company and its Subsidiaries own or possess adequate rights to use all patents, patent applications, patent
rights, licenses, inventions, copyrights, know-how (including trade secrets and other unpatented and/or unpatentable proprietary
or confidential information, systems or procedures), trademarks, trademark registrations, service marks, service mark registrations,
trade names, mask work rights and other intellectual property necessary to carry on the business now operated by it or proposed
to be operated by it as described in the SEC Reports (collectively, “Intellectual Property”), except where
the lack of such ownership or rights to use would not have a Material Adverse Effect. The Company is not otherwise aware of any
infringement of or conflict with asserted rights of others with respect to any of the Company’s Intellectual Property or
the operation of the Company’s business. The Company and its subsidiaries have taken all steps necessary to perfect its
ownership of and interest in the Intellectual Property.

 

(m)       Insurance.
The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks
and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged, including,
but not limited to, directors and officers insurance coverage at least equal to $2,000,000. Neither the Company nor any Subsidiary
has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires
or to obtain similar coverage from similar insurers as may be necessary to continue its business without a significant increase
in cost.

 

(n)       Certain
Fees. A fee will be paid to BMI Capital International, LLC upon the closing of any purchase of Shares and Warrants under this
Agreement. This fee is the obligation of the Company and not the Purchaser.

 

(o)       Investment
Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Shares and Warrants,
will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940,
as amended. The Company shall conduct its business in a manner so that it will not become an “investment company”
subject to registration under the Investment Company Act of 1940, as amended.

 

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(p)       Listing
and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the
Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration
of the Common Stock under the Exchange Act nor has the Company received any notification that the Commission is contemplating
terminating such registration. As disclosed in the Company’s SEC Reports, the Company has been notified by the NYSE MKT
that is not in compliance with certain of the NYSE MKT’s continued listing standards as of the Closing Date, and can make
no assurances that it will be able to maintain the current listing of the Common Stock on that exchange. The Warrants will not
be listed on the NYSE MKT or any other exchange.

 

(q)       Disclosure.
Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company
confirms that neither it nor any other Person acting on its behalf has provided a Purchaser or its agents or counsel with any
information that it believes constitutes or might constitute material, non-public information which is not otherwise publicly
disclosed. The Company understands and confirms that each Purchaser will rely on the foregoing representation in effecting transactions
in securities of the Company. All of the disclosure furnished by or on behalf of the Company to a Purchaser regarding the Company
and its Subsidiaries, their respective businesses and the transactions contemplated hereby is true and correct and does not contain
any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein,
in light of the circumstances under which they were made, not misleading. The Company acknowledges and agrees that no Purchaser
makes or has made any representations or warranties with respect to the transactions contemplated hereby other than those specifically
set forth in Section 3.2 hereof.

 

(r)       No
Integrated Offering. Assuming the accuracy of each Purchaser’s representations and warranties set forth in Section 3.2,
neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made
any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering
of the Shares and Warrants to be integrated with prior offerings by the Company for purposes of any applicable shareholder approval
provisions of any Trading Market on which any of the securities of the Company are listed or designated.

 

(s)       Tax
Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a
Material Adverse Effect, the Company and its Subsidiaries each (i) has made or filed all United States federal, state and local
income and all foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which it is
subject, (ii) has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined
to be due on such returns, reports and declarations, and (iii) has set aside on its books provision reasonably adequate for the
payment of all material taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There
are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of
the Company or of any Subsidiary know of no basis for any such claim.

 

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(t)Accountants.
To the knowledge and belief of the Company, the Company’s accounting firm (i) is a registered public accounting firm as
required by the Exchange Act, and (ii) has expressed, in the Company’s most recent Form 10-K, its opinion with respect to
the financial statements included in the Company’s Annual Report for the fiscal year ended December 31, 2016.

 

(u)       
Acknowledgment Regarding Purchaser’s Purchase of Shares and Warrants. The Company acknowledges and agrees that each
Purchaser is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the
transactions contemplated thereby. The Company further acknowledges that each Purchaser is not acting as a financial advisor or
fiduciary of the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated
thereby and any advice given by any Purchaser or any of its representatives or agents in connection with the Transaction Documents
and the transactions contemplated thereby is merely incidental to the Purchaser’s purchase of the Shares and Warrants. The
Company further represents to each Purchaser that the Company’s decision to enter into this Agreement and the other Transaction
Documents has been based solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives.

 

(v)       Regulation
M Compliance. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly,
any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to
facilitate the sale or resale of any of the Shares or Warrants, (ii) sold, bid for, purchased, or, paid any compensation for soliciting
purchases of, any of the Shares or Warrants, or (iii) paid or agreed to pay to any Person any compensation for soliciting another
to purchase any other securities of the Company.

 

3.2
       Representations and Warranties of Purchaser. Each Purchaser hereby represents
and warrants as of the date hereof and as of the Closing Date to the Company as follows (unless made as of a specific date therein):

 

(a)       Organization;
Authority. The Purchaser is either an individual or an entity duly incorporated or formed, validly existing and in good standing
under the laws of the jurisdiction of its incorporation or formation, with full right, corporate, partnership, limited liability
company or similar power and authority to enter into and to consummate the transactions contemplated by this Agreement and the
other Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of
this Agreement and performance by the Purchaser of the transactions contemplated by this Agreement have been duly authorized by
all necessary corporate, partnership, limited liability company or similar action, as applicable, on the part of the Purchaser.
Each Transaction Document to which the Purchaser is a party has been duly executed by the Purchaser, and when delivered by the
Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of the Purchaser, enforceable
against it in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii)
as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii)
insofar as indemnification and contribution provisions may be limited by applicable law.

 

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(b)       Own
Account; Understandings or Arrangements. The Purchaser understands that the Shares and Warrants, and the shares of Common
Stock issuable upon exercise of the Warrants, are “restricted securities” and have not been registered under the Securities
Act or any applicable state securities law and is acquiring the Shares and Warrants as principal for its own account and not with
a view to or for distributing or reselling the Shares or Warrants or any part thereof in violation of the Securities Act or any
applicable state securities law, has no present intention of distributing any of the Shares and Warrants in violation of the Securities
Act or any applicable state securities law and has no direct or indirect arrangement or understandings with any other persons
to distribute or regarding the distribution of the Shares or Warrants in violation of the Securities Act or any applicable state
securities law (this representation and warranty not limiting the Purchaser’s right to sell the Shares or Warrants in compliance
with applicable federal and state securities laws).

 

(c)       Purchaser
Status. At the time the Purchaser was offered the Shares and Warrants, it (and its principals, if any) was (and were), and
as of the applicable Closing Date, it (and its principals, if any) will be an “accredited investor” as defined in
Rule 501(a) under the Securities Act.

 

(d)       Experience
of the Purchaser. The Purchaser, either alone or together with its representatives, has such knowledge, sophistication and
experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment
in the Shares and Warrants, and has so evaluated the merits and risks of such investment. The Purchaser is able to bear the economic
risk of an investment in the Shares and Warrants and is able to afford a complete loss of such investment.

 

(e)       No
General Solicitation. The Purchaser is not purchasing the Shares or Warrants as a result of any advertisement, article, notice
or other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television
or radio or presented at any seminar or any other general solicitation or general advertisement.

 

(f)       Access
to Information. Each Purchaser acknowledges that it and its authorized representatives has had the opportunity to review the
Transaction Documents (including all exhibits and schedules thereto) and the SEC Reports and has been afforded (i) the opportunity
to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the
terms and conditions of the offering of the Shares and Warrants and the merits and risks of investing in the Shares and Warrants;
(ii) access to information about the Company and its financial condition, results of operations, business, properties, management
and prospects sufficient to enable it to evaluate the investment; and (iii) the opportunity to obtain such additional information
that the Company possesses or can acquire without unreasonable effort or expense that is necessary to make an informed investment
decision with respect to the investment.

 

The
Company acknowledges and agrees that the representations contained in Section 3.2 shall not modify, amend or affect a Purchaser’s
right to rely on the Company’s representations and warranties contained in this Agreement or any representations and warranties
contained in any other Transaction Document or any other document or instrument executed and/or delivered in connection with this
Agreement or the consummation of the transactions contemplated hereby.

 

    	 	 12	 

    	 

    

 

ARTICLE
IV.

OTHER AGREEMENTS OF THE PARTIES

 

4.1       Furnishing
of Information. Until the time that any Purchaser owns no Shares, the Company agrees to use commercially reasonable best efforts
to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be
filed by the Company after the date hereof pursuant to the Exchange Act.

 

4.2       Integration.
The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined
in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Shares and Warrants for purposes of
the rules and regulations of any Trading Market such that it would require shareholder approval prior to the closing of such other
transaction unless shareholder approval is obtained before the closing of such subsequent transaction.

 

4.3       Securities
Laws Disclosure; Publicity. The Company shall file a Current Report on Form 8-K, including descriptions of the Transaction
Documents or including the form Transaction Documents as exhibits thereto, with the Commission within the time required by the
Exchange Act.

 

4.4       Shareholder
Rights Plan. No claim will be made or enforced by the Company or, with the consent of the Company, any other Person, that
a Purchaser is an “Acquiring Person” under any control share acquisition, business combination, poison pill (including
any distribution under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter adopted by the
Company, or that a Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue of receiving
Shares and Warrants under the Transaction Documents or under any other agreement between the Company and a Purchaser.

 

4.5       Non-Public
Information. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction
Documents, the Company covenants and agrees that neither it, nor any other Person acting on its behalf will provide a Purchaser
or its agents or counsel with any information that the Company believes constitutes material non-public information, unless prior
thereto the Purchaser shall have entered into a written agreement with the Company regarding the confidentiality and use of such
information. The Company understands and confirms that each Purchaser shall be relying on the foregoing covenant in effecting
transactions in securities of the Company.

 

    	 	 13	 

    	 

    

 

4.6       Use
of Proceeds. The Company shall use the net proceeds from the sale of the Shares hereunder primarily for the support of its
expansion into Asia and for general working capital purposes and shall not use such proceeds: (a) for the satisfaction of any
portion of the Company’s debt (other than payment of trade payables in the ordinary course of the Company’s business
and prior practices), (b) for the redemption of any Common Stock or Common Stock Equivalents, or (c) for the settlement of any
outstanding litigation.

 

4.7       Reservation
of Common Stock. As of the date hereof, the Company has reserved and the Company shall continue to reserve and keep available
at all times, free of preemptive rights, a sufficient number of shares of Common Stock for the purpose of enabling the Company
to issue Shares pursuant to this Agreement and the issuance of shares of Common Stock upon the exercise of the Warrants.

 

4.8       Listing
of Common Stock. The Company hereby agrees to use commercially reasonable best efforts to maintain the listing or quotation
of the Common Stock on the Trading Market on which it is currently listed. The Company further agrees, if the Company applies
to have the Common Stock traded on any other Trading Market, it will then use commercially reasonable best efforts to include
in such application all of the Shares (including shares of Common Stock issuable upon the exercise of the Warrants), and will
take such other action as is necessary and commercially reasonable to cause all of the Shares to be listed or quoted on such other
Trading Market as promptly as possible. The Company will then take all action commercially reasonably necessary to continue the
listing and trading of its Common Stock on a Trading Market and will comply in all respects with the Company’s reporting,
filing and other obligations under the bylaws or rules of the Trading Market. As previously disclosed in its SEC Reports, the
Company is not in compliance with certain listing standards of the NYSE MKT as of the Closing Date of this Agreement, and can
provide no assurances that it will be successful in maintaining its current listing on that exchange.

 

4.9       
Certain Transactions and Confidentiality. Each Purchaser covenants that until such time as the transactions contemplated
by this Agreement are publicly disclosed by the Company, the Purchaser will maintain the confidentiality of the existence and
terms of this transaction.

 

4.10       Restrictive
Legend. Purchaser understands that the Shares and Warrants and the shares of Common Stock issuable upon exercise of the Warrants
will be issued pursuant to an exemption from registration or qualification under the Securities Act and applicable state securities
laws and, as such, any stock certificate representing the issuance of Shares under this Agreement or later pursuant to the exercise
of the Warrants shall bear the following required restrictive legend:

 

“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER APPLICABLE
STATE LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER, IN A FORM
REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD
PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.”

 

    	 	 14	 

    	 

    

 

ARTICLE
V.

MISCELLANEOUS

 

5.1       Fees
and Expenses. Except as expressly set forth in the Transaction Documents to the contrary, each party shall pay the fees and
expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident
to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all Transfer Agent
fees (including, without limitation, any fees required for same-day processing of any instruction letter delivered by the Company),
stamp taxes and other taxes and duties levied in connection with the delivery of any Shares or Warrants to a Purchaser.

 

5.2       Entire
Agreement. The Transaction Documents, together with any exhibits and schedules thereto, contain the entire understanding of
the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, oral
or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

 

5.3       Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and
shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered
via facsimile or e-mail, with confirmation of delivery, at the facsimile number or e-mail address set forth on the signature pages
attached hereto at or prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission,
if such notice or communication is delivered via facsimile, with confirmation of delivery, at the facsimile number set forth on
the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading
Day, (c) upon delivery if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party
to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the signature
pages attached hereto.

 

5.4       Amendments;
Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed,
in the case of an amendment, by the Company and the Purchasers or, in the case of a waiver, by the party against whom enforcement
of any such waived provision is sought. No waiver of any default with respect to any provision, condition or requirement of this
Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other
provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any
manner impair the exercise of any such right.

 

5.5       Headings.
The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof.

 

5.6       Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors
and permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written
consent of each Purchaser (other than by merger). Any Purchaser may assign any or all of its rights under this Agreement to any
Person to whom the Purchaser assigns or transfers any Shares or Warrants, provided that such transferee agrees in writing to be
bound, with respect to the transferred Shares or Warrants, by the provisions of the Transaction Documents that apply to the Purchaser.

 

    	 	 15	 

    	 

    

 

5.7       No
Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto, and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

5.8       Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall
be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the
principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a
party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be
commenced exclusively in the state and federal courts sitting in the State of New York. Each party hereby irrevocably submits
to the exclusive jurisdiction of the state and federal courts sitting in the State of New York for the adjudication of any dispute
hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to
the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action
or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding
is improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process
and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified
mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement
and agrees that such service shall constitute good and sufficient service of process and notice thereof, effective upon receipt.
Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

 

5.9       Execution.
This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each party and delivered to each other party, it being
understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission
or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of
the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof.

 

5.10       Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid,
illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain
in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that
they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

 

    	 	 16	 

    	 

    

 

5.11       Replacement
of Shares or Warrants. If any certificate or instrument evidencing any Shares or Warrants is mutilated, lost, stolen or destroyed,
the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation),
or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory
to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances
shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement
Shares or Warrants.

 

5.12       Remedies.
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each Purchaser
and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that monetary damages
may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the Transaction Documents
and hereby agree to waive and not to assert in any action for specific performance of any such obligation the defense that a remedy
at law would be adequate.

 

5.13       Independent
Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction Document are several
and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance
or non-performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any
other Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to constitute the
Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers
are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction
Documents. Each Purchaser shall be entitled to independently protect and enforce its rights, including, without limitation, the
rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser
to be joined as an additional party in any proceeding for such purpose. The Company has elected to provide all Purchasers with
the same terms and Transaction Documents for the convenience of the Company and not because it was required or requested to do
so by any of the Purchasers.

 

5.14Saturdays,
Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required
or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding
Business Day.

 

5.15       Construction.
The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction
Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting
party shall not be employed in the interpretation of the Transaction Documents or any amendments thereto. In addition, each and
every reference to share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse
and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after
the date of this Agreement.

 

5.16       WAIVER
OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ONE PARTY AGAINST THE OTHER PARTY, THE PARTIES
EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY
AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.

 

[SIGNATURE
PAGES FOLLOW]

 

    	 	 17	 

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

 

	DOCUMENT
                                         SECURITY SYSTEMS, INC.

	 	Address
                                         for Notice:

        

        

	 	 	200
    Canal View Blvd., Suite 300
	 	 	Rochester,
    NY 14623
	 	 	 
	By:		 	Fax:
    (585) 325-2977
	

        

        

        

        
Name:	Jeffrey
    Ronaldi	 	
	

        
Title:	Chief Executive
    Officer	 	

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK;

SIGNATURE
PAGE FOR PURCHASER FOLLOWS]

 

    	 	 18	 

    	 

    

 

[PURCHASER
SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT]

 

IN
WITNESS WHEREOF, the undersigned has caused this Securities Purchase Agreement to be duly executed by its respective authorized
signatory as of the date first indicated above.

 

Name
of Purchaser:  

 

Signature
of Purchaser: ____________________________________________________________________________

 

Email
Address of Purchaser:  

 

Facsimile
Number of Purchaser:  

 

Address
for Notice to Purchaser:  

 

Address
for Delivery of Shares and Warrants to Purchaser (if not same as address for notice):

 

Subscription
Amount: US$ ____________________________________

 

Shares: ___________________________________________________

 

Warrant
Shares: ____________________________________________

 

EIN
Number:  

 

    	 	 19	 

    	 

    

 

EXHIBIT
A

 

Form
of Warrant

 

    	 	 20Custody Agreement

 Exhibit 10.5 

 
  

CUSTODY AGREEMENT 
  

 
 dated as of
August 31, 2017 
 by and among 

CM FINANCE INC 

(“Company”) 
 and 

U.S. BANK NATIONAL ASSOCIATION 

(“Custodian” and “Document Custodian”) 

 TABLE OF CONTENTS 

Page 
  

							
	 1.
	  	 DEFINITIONS
	  	 	1	 
			
	 2.
	  	 APPOINTMENT OF CUSTODIAN
	  	 	6	 
			
	 3.
	  	 DUTIES OF CUSTODIAN
	  	 	7	 
			
	 4.
	  	 REPORTING
	  	 	16	 
			
	 5.
	  	 DEPOSIT IN U.S. SECURITIES SYSTEMS
	  	 	17	 
			
	 6.
	  	 [RESERVED.]
	  	 	17	 
			
	 7.
	  	 CERTAIN GENERAL TERMS
	  	 	17	 
			
	 8.
	  	 COMPENSATION OF CUSTODIAN
	  	 	19	 
			
	 9.
	  	 RESPONSIBILITY OF CUSTODIAN
	  	 	20	 
			
	 10.
	  	 SECURITY CODES
	  	 	23	 
			
	 11.
	  	 TAX LAW
	  	 	23	 
			
	 12.
	  	 EFFECTIVE PERIOD, TERMINATION
	  	 	24	 
			
	 13.
	  	 REPRESENTATIONS AND WARRANTIES
	  	 	25	 
			
	 14.
	  	 PARTIES IN INTEREST; NO THIRD PARTY BENEFIT
	  	 	25	 
			
	 15.
	  	 NOTICES
	  	 	25	 
			
	 16.
	  	 CHOICE OF LAW AND JURISDICTION
	  	 	27	 
			
	 17.
	  	 ENTIRE AGREEMENT; COUNTERPARTS
	  	 	27	 
			
	 18.
	  	 AMENDMENT; WAIVER
	  	 	27	 
			
	 19.
	  	 SUCCESSOR AND ASSIGNS
	  	 	27	 
			
	 20.
	  	 SEVERABILITY
	  	 	28	 
			
	 21.
	  	 REQUEST FOR INSTRUCTIONS
	  	 	28	 
			
	 22.
	  	 OTHER BUSINESS
	  	 	28	 
			
	 23.
	  	 REPRODUCTION OF DOCUMENTS
	  	 	28	 
			
	 24.
	  	 ACQUISITION OF FOREIGN SECURITIES
	  	 	29	 
			
	 25.
	  	 MISCELLANEOUS
	  	 	29	 
		
	 SCHEDULES
	  			
			
		  	 SCHEDULE A – Trade Confirmation
	  			
			
		  	 SCHEDULE B – Initial Authorized Persons
	  			

  

  
 i 

 This CUSTODY AGREEMENT (this “Agreement”) is dated as of August 31, 2017, and is by and
between CM FINANCE INC (and any successor or permitted assign, the “Company”), a corporation organized under the laws of the State of Maryland, having its principal place of business at 601 Lexington Avenue, Floor 26, Suite C, New
York, NY 10022, U.S. BANK NATIONAL ASSOCIATION (in such capacity, along with any successor or permitted assign acting as custodian hereunder, the “Custodian”), a national banking association having a place of business at One Federal
Street, Third Floor, Boston, MA 02110 and the Custodian in its capacity as document custodian (in such capacity, along with any successor or permitted assign acting as custodian hereunder, the “Document Custodian”). 

RECITALS 
 WHEREAS, the
Company is a closed-end management investment company, which has elected to be treated as a business development company under the Investment Company Act of 1940, as amended (the “1940 Act”);

 WHEREAS, the Company desires to retain U.S. Bank National Association to act as custodian and document custodian for the Company and each
Subsidiary hereafter identified to the Custodian and the Document Custodian; 
 WHEREAS, the Company desires that the Company’s
Securities (as defined below) and cash be held and administered by the Custodian pursuant to this Agreement in compliance with Section 17(f) of the 1940 Act; and 

NOW THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties hereto agree as follows: 

 

	1.	DEFINITIONS 

 1.1 Defined Terms. In addition to terms expressly defined
elsewhere herein, the following words shall have the following meanings as used in this Agreement: 
 “Account” means the
Cash Accounts, the Securities Account, any Subsidiary Cash Account and any Subsidiary Securities Account, collectively. 

“Agreement” means this Custody Agreement (as the same may be amended from time to time in accordance with the terms hereof).

 “Authorized Person” has the meaning set forth in Section 7.4. 

“Business Day” means a day on which the Custodian or the relevant sub-custodian is
open for business in the market or country in which a transaction is to take place. 
 “Cash Account” or “Cash
Accounts” means any or all of the segregated trust accounts to be established at the Custodian to which the Custodian shall deposit or credit and hold any cash or Proceeds received by it from time to time from or with respect to the
Securities or the sale of the Securities of the Company, as applicable, which trust accounts shall be designated the “Cash Proceeds Account”, “Principal Account”, and “Interest Account”. 

 “Company” has the meaning set forth in the first paragraph of this Agreement.

 “Confidential Information” means any databases, computer programs, screen formats, screen designs, report formats,
interactive design techniques, and other similar or related information that may be furnished to the Company by the Custodian from time to time pursuant to this Agreement. 

“Custodian” has the meaning set forth in the first paragraph of this Agreement. 

“Document Custodian” means the Custodian when acting in the role of a document custodian hereunder. 

“Eligible Investment” means any investment that at the time of its acquisition is one or more of the following: 

(a) United States government and agency obligations; 

(b) commercial paper having a rating assigned to such commercial paper by Standard & Poor’s Rating Services or
Moody’s Investor Service, Inc. (or, if neither such organization shall rate such commercial paper at such time, by any nationally recognized rating organization in the United States of America) equal to one of the two highest ratings
assigned by such organization, it being understood that as of the date hereof such ratings by Standard & Poor’s Rating Services are “A1+” and “A1” and such ratings by Moody’s Investor Service, Inc. are
“P1” and “P2”; 
 (c) interest bearing deposits in United States dollars in United States or Canadian
banks with an unrestricted surplus of at least U.S. $250,000,000, maturing within one year; and 
 (d) money market funds
(including funds of the bank serving as Custodian or its affiliates) or United States government securities funds designed to maintain a fixed share price and high liquidity. 

“Eligible Securities Depository” has the meaning set forth in Section (b)(1) of Rule
17f-7 under the 1940 Act. 
 “Federal Reserve Bank Book-Entry System” means a
depository and securities transfer system operated by the Federal Reserve Bank of the United States on which are eligible to be held all United States Government direct obligation bills, notes and bonds. 

“Financing Documents” has the meaning set forth in Section 3.3(b). 

“Loan” means any U.S. dollar denominated commercial loan, or Participation therein, made by a bank or other financial
institution that by its terms provides for payments of principal and/or interest, including discount obligations and payment- in-kind obligations, acquired by the Company from time to time. 

  
 -2- 

 “Loan Checklist” means a list delivered to the Document Custodian in connection
with delivery of each Loan to the Custodian by the Company that identifies the items contained in the related Loan File. 
 “Loan
File” means, with respect to each Loan delivered to the Document Custodian, each of the Required Loan Documents identified on the related Loan Checklist. 

“Noteless Loan” means a Loan with respect to which (i) the related loan agreement does not require the obligor to execute
and deliver an Underlying Note to evidence the indebtedness created under such Loan and (ii) no Underlying Notes are outstanding with respect to the portion of the Loan transferred by the issuer or the prior holder of record. 

“Participation” means an interest in a Loan that is acquired indirectly by way of a participation from a selling institution.

 “Person” means any individual, corporation, partnership, limited liability company, joint venture, association, joint
stock company, trust (including any beneficiary thereof), unincorporated organization, or any government or agency or political subdivision thereof. 

“Proceeds” means, collectively, (i) the net cash proceeds to the Company of the initial public offering by the Company
and any subsequent offering by the Company of any class of securities issued by the Company, (ii) all cash distributions, earnings, dividends, fees and other cash payments paid on the Securities (or, as applicable, Subsidiary Securities) by or
on behalf of the issuer or obligor thereof, or applicable paying agent, (iii) the net cash proceeds of the sale or other disposition of the Securities (or, as applicable, Subsidiary Securities) pursuant to the terms of this Agreement and
(iv) the net cash proceeds to the Company of any borrowing or other financing by the Company (and any Reinvestment Earnings from investment of any of the foregoing), as delivered to the Custodian from time to time. 

“Proper Instructions” means instructions (including Trade Confirmations) received by the Custodian in form acceptable to it,
from the Company, or any Person duly authorized by the Company, by any of the following means: 
 (a) in writing signed by an
Authorized Person (and delivered by hand, by mail, by overnight courier or by telecopier); 
 (b) by electronic mail from an
Authorized Person; 
 (c) in a communication utilizing access codes effected between electro mechanical or electronic
devices; or 

  
 -3- 

 (d) such other means as may be agreed upon from time to time by the Custodian and
the party giving such instructions, including oral instructions. 
 “Reinvestment Earnings” has the meaning set forth in
Section 3.6(b). 
 “Required Loan Documents” means, for each Loan: 

(a) other than in the case of a Participation, an executed copy of the Assignment for such Loan, as identified on the Loan
Checklist; 
 (b) with the exception of Noteless Loans and Participations, the original executed Underlying Note endorsed by
the issuer or the prior holder of record in blank or to the Company, as identified on the Loan Checklist; 
 (c) (i) if
the Company is the sole lender or if the Company or an affiliate of the Company acts as agent for the lenders (in each case as notified to the Custodian in the Loan Checklist), (A) an executed copy of the Underlying Loan Agreement (which may be
included in the Underlying Note if so indicated in the Loan Checklist), together with a copy of all amendments and modifications thereto, as identified on the Loan Checklist, (B) a copy of each related security agreement (if any) signed by the
applicable obligor(s), as identified on the Loan Checklist, and (C) a copy of each related guarantee (if any) then executed in connection with such Loan, as identified on the Loan Checklist, and (ii) in all other cases, such copies of the
documents described in clauses (A), (B) and (C), which may not be executed copies, as are reasonably available to the Company, as identified on the Loan Checklist; and 

(d) a copy of the Loan Checklist. 

“Securities” means, collectively, (i) the investments, including Loans, acquired by the Company and delivered to the
Custodian by the Company from time to time during the term of, and pursuant to the terms of, this Agreement and (ii) all dividends in kind (e.g., non-cash dividends) from the investments described in
clause (i). For avoidance of confusion, the term “securities” includes stocks, shares, bonds, debentures, notes, mortgages or other obligations and any certificates, receipts, warrants or other instruments representing rights to receive,
purchase, or subscribe for the same, or evidencing or representing any other rights or interests therein, or in any property or assets). 

“Securities Account” means the segregated trust account to be established at the Custodian to which the Custodian shall
deposit or credit and hold the Securities (other than Loans) received by it pursuant to this Agreement, which account shall be designated the “CM Finance Inc Securities Custody Account”. 

“Securities Custodian” means the Custodian when acting in the role of a securities custodian hereunder. 

  
 -4- 

 “Securities Depository” means The Depository Trust Company and any other
clearing agency registered with the Securities and Exchange Commission under Section 17A of the Securities Exchange Act of 1934, as amended (the “1934 Act”), which acts as a system for the central handling of securities where
all securities of any particular class or series of an issuer deposited within the system are treated as fungible and may be transferred or pledged by bookkeeping entry without physical delivery of the securities. 

“Securities System” means the Federal Reserve Book-Entry System, a clearing agency which acts as a Securities Depository, or
another book entry system for the central handling of securities (including an Eligible Securities Depository). 
 “Street Delivery
Custom” means a custom of the United States securities market to deliver securities which are being sold to the buying broker for examination to determine that the securities are in proper form. 

“Street Name” means the form of registration in which the securities are held by a broker who is delivering the securities to
another broker for the purposes of sale, it being an accepted custom in the United States securities industry that a security in Street Name is in proper form for delivery to a buyer and that a security may be
re-registered by a buyer in the ordinary course. 
 “Subsidiary Cash Account” shall
have the meaning set forth in Section 3.13(b). 
 “Subsidiary Securities” collectively, (i) the investments,
including Loans, acquired by a Subsidiary and delivered to the Custodian from time to time during the term of, and pursuant to the terms of, this Agreement and (ii) all dividends in kind (e.g., non-cash
dividends) from the investments described in clause (i). 
 “Subsidiary Securities Account” shall have the meaning set forth
in Section 3.13(a). 
 “Subsidiary” means any wholly owned subsidiary of the Company identified to the Custodian by the
Company. 
 “Trade Confirmation” means a confirmation to the Custodian from the Company of the Company’s acquisition of
a Loan, and setting forth applicable information with respect to such Loan, which confirmation may be in the form of Schedule A attached hereto and made a part hereof, subject to such changes or additions as may be agreed to by, or in such
other form as may be agreed to by, the Custodian and the Company from time to time. 
 “UCC” shall have the meaning set
forth in Section 3.3(a). 
 “Underlying Loan Agreement” means, with respect to any Loan, the document or documents
evidencing the commercial loan agreement or facility pursuant to which such Loan is made. 

  
 -5- 

 “Underlying Loan Documents” means, with respect to any Loan, the related
Underlying Loan Agreement together with any agreements and instruments (including any Underlying Note) executed or delivered in connection therewith. 

“Underlying Note” means the one or more promissory notes executed by an obligor to evidence a Loan. 

 

	 	1.2	Construction. In this Agreement unless the contrary intention appears: 

  

	 	(a)	any reference to this Agreement or another agreement or instrument refers to such agreement or instrument as the same may be amended, modified or otherwise rewritten from time to time; 

 

	 	(b)	a reference to a statute, ordinance, code or other law includes regulations and other instruments under it and consolidations, amendments, re-enactments or replacements of any of
them; 

  

	 	(c)	any term defined in the singular form may be used in, and shall include, the plural with the same meaning, and vice versa; 

  

	 	(d)	a reference to a Person includes a reference to the Person’s executors, successors and permitted assigns; 

  

	 	(e)	an agreement, representation or warranty in favor of two or more Persons is for the benefit of them jointly and severally; 

  

	 	(f)	an agreement, representation or warranty on the part of two or more Persons binds them jointly and severally; 

  

	 	(g)	a reference to the term “including” means “including, without limitation,” and 

  

	 	(h)	a reference to any accounting term is to be interpreted in accordance with generally accepted principles and practices in the United States, consistently applied, unless otherwise instructed by the Company.

 1.3 Headings. Headings are inserted for convenience and do not affect the interpretation of this Agreement. 

 

	2.	APPOINTMENT OF CUSTODIAN  

 2.1 Appointment and Acceptance.
The Company hereby appoints the Custodian as custodian of certain Securities and cash owned by the Company and the Subsidiaries (as applicable) and delivered to the Custodian by the Company from time to time during the period of this Agreement, on
the terms and conditions set forth in this Agreement (which shall include any addendum hereto which is hereby incorporated herein and made a part of this Agreement), and the Custodian hereby accepts such appointment and agrees to perform the
services and duties set forth in this Agreement with respect to it, subject to and in accordance with the provisions hereof. All Required Loan Documents and Securities in certificated form shall be maintained and held on behalf of the Company by the
Custodian in its vaults or the vaults of a sub-custodian. 

  
 -6- 

 2.2 Instructions. The Company agrees that it shall from time to time provide, or cause to
be provided, to the Custodian all necessary instructions and information, and shall respond promptly to all inquiries and requests of the Custodian, as may reasonably be necessary to enable the Custodian to perform its duties hereunder. 

2.3 Company Responsible For Directions. The Company is solely responsible for directing the Custodian with respect to deposits to,
withdrawals from and transfers to or from the Account. Without limiting the generality of the foregoing, the Custodian has no responsibility for the Company’s compliance with the 1940 Act, any restrictions, covenants, limitations or obligations
to which the Company may be subject or for which it may have obligations to third-parties in respect of the Account, and the Custodian shall have no liability for the application of any funds made at the direction of the Company. The Company shall
be solely responsible for properly instructing all applicable payors to make all appropriate payments to the Custodian for deposit to the Account, and for properly instructing the Custodian with respect to the allocation or application of all such
deposits. 
  

	3.	DUTIES OF CUSTODIAN 

 3.1 Segregation. All Securities and non-cash property held by the Custodian, as applicable, for the account of the Company (other than Securities maintained in a Securities Depository or Securities System) shall be physically segregated from other
Securities and non-cash property in the possession of the Custodian and shall be identified as subject to this Agreement. 

3.2 Securities Custody Account. The Custodian shall open and maintain in its trust department a segregated trust account in the name of
the Company, subject only to order of the Custodian, in which the Custodian shall enter and carry, subject to Section 3.3(a), all Securities (other than Loans) and other investment assets of the Company which are delivered to it in accordance
with this Agreement. For avoidance of doubt, the Custodian shall not be required to credit or deposit Loans in the Securities Account but shall instead maintain a register (in book-entry form or in such other form as it shall deem necessary or
desirable) of such Loans, containing such information as the Company and the Custodian may reasonably agree. The Custodian shall have no power or authority to assign, hypothecate, pledge or otherwise dispose of any such Securities and investments
except pursuant to the direction of the Company under terms of the Agreement. 

  
 -7- 

 3.3 Delivery of Cash and Securities to Custodian. 

 

	 	(a)	The Company shall deliver, or cause to be delivered, to the Custodian certain of the Company’s Securities, cash and other investment assets, including (a) payments of income, payments of principal and capital
distributions received by the Company with respect to such Securities, cash or other assets owned by the Company at any time during the period of this Agreement, and (b) cash received by the Company for the issuance, at any time during such
period, of securities or in connection with a borrowing by the Company, except as otherwise permitted by the 1940 Act. With respect to assets other than Loans, such assets shall be delivered to the Custodian in its role as, and (where relevant) at
the address identified for, the Securities Custodian. Except to the extent otherwise expressly provided herein, delivery of Securities to the Custodian shall be in Street Name or other good delivery form. The Custodian shall not be responsible for
such Securities, cash or other assets until actually delivered to, and received by it. With respect to Securities (other than Loan Assets and assets in the nature of “general intangibles” (as hereinafter defined)) held by the Custodian in
its capacity as a “securities intermediary” (as defined in Section 8-102 of the Uniform Commercial Code as in effect in the State of New York (the “UCC”)), the Custodian shall
be obligated to exercise due care in accordance with reasonable commercial standards in discharging its duties as a securities intermediary to obtain and maintain such Securities. 

 

	 	(b)	(i) In connection with its acquisition of a Loan or other delivery of a Security constituting a Loan, the Company shall deliver or cause to be delivered to the Custodian a properly completed Trade Confirmation
containing such information in respect of such Loan as the Custodian may reasonably require in order to enable the Custodian to perform its duties hereunder in respect of such Loan on which the Custodian may conclusively rely without further inquiry
or investigation, in such form and format as the Custodian reasonably may require. 

 (ii) Notwithstanding anything herein to
the contrary, delivery of Loan Files acquired by the Company (or, if applicable, a Subsidiary thereof) which constitute Noteless Loans or Participations or which are otherwise not evidenced by a “security” or “instrument” as
defined in Section 8-102 and Section 9-102(a)(47) of the UCC), respectively, shall be made by delivery to the Document Custodian of (i) in the case of a
Noteless Loan, a copy of the loan register with respect to such Noteless Loan evidencing registration of such Loan on the books and records of the applicable obligor or bank agent to the name of the Company or, if applicable, a Subsidiary thereof
(or, in either case, its nominee) or a copy (which may be a facsimile copy) of an assignment agreement in favor of the Company (or, if applicable, a Subsidiary thereof) as assignee, and (ii) in the case of a Participation, a copy of the related
participation agreement. Any duty on the part of the Custodian with respect to the custody of such Loans shall be limited to the exercise of reasonable care by the Custodian in the physical custody of any such documents delivered to it, and any
related instrument, security, credit agreement, 

  
 -8- 

 
assignment agreement and/or other agreements or documents, if any (collectively, “Financing Documents”), that may be delivered to it. Nothing herein shall require the Custodian
to credit to the Securities Account or to treat as a financial asset (within the meaning of Section 8-102(a)(9) of the UCC) any such Loan or other asset in the nature of a general intangible (as defined
in Section 9-102(a)(42) of the UCC) or to “maintain” a sufficient quantity thereof. 

(iii) The Custodian may assume the genuineness of any such Financing Document it may receive and the genuineness and due authority of any
signatures appearing thereon, and shall be entitled to assume that each such Financing Document it may receive is what it purports to be. If an original “security” or “instrument” as defined in
Section 8-102 and Section 9-102(a)(47) of the UCC, respectively, is or shall be or become available with respect to any Loan to be held by the Custodian under
this Agreement, it shall be the sole responsibility of the Company to make or cause delivery thereof to the Document Custodian, and the Custodian shall not be under any obligation at any time to determine whether any such original security or
instrument has been or is required to be issued or made available in respect of any Loan or to compel or cause delivery thereof to the Custodian. 

(iv) Contemporaneously with the acquisition of any Loan, the Company shall (A) if requested by the Custodian, provide to the Custodian an
amortization schedule of principal payments and a schedule of the interest payable date(s) identifying the amount and due dates of all scheduled principal and interest payments for such Loan; (B) take all actions necessary for the Company to
acquire good title to such Loan; and (C) take all actions as may be necessary (including appropriate payment notices and instructions to bank agents or other applicable paying agents) to cause (x) all payments in respect of the Loan to be
made to the Custodian and (y) all notices, solicitations and other communications in respect of such Loan to be directed to the Company. The Custodian shall have no liability for any delay or failure on the part of the Company to provide
necessary information to the Custodian, or for any inaccuracy therein or incompleteness thereof, or for any delay or failure on the part of the Company to give such effective payment instruction to bank agents and other paying agents, in respect of
the Loans. With respect to each such Loan, the Custodian shall be entitled to rely on any information and notices it may receive from time to time from the related bank agent, obligor or similar party with respect to the related Loan Asset, or from
the Company, and shall be entitled to update its records (as it may deem necessary or appropriate) on the basis of such information or notices received, without any obligation on its part independently to verify, investigate or recalculate such
information. 

  
 -9- 

 3.4 Release of Securities. 

 

	 	(a)	The Custodian or the Document Custodian, as applicable, shall release and ship for delivery, or direct its agents or sub-custodian to release and ship for delivery, as the case
may be, Securities, or Required Loan Documents (or other Underlying Loan Documents) in the case of the Document Custodian, of the Company held by the Custodian or the Document Custodian, as applicable, their agents or its sub-custodian from time to time upon receipt of Proper Instructions (which shall, among other things, specify the Securities, or Required Loan Documents (or other Underlying Loan Documents) in the case of the
Document Custodian, to be released, with such delivery and other information as may be necessary to enable the Custodian or the Document Custodian to perform (including the delivery method)), which may be standing instructions (in form acceptable to
the Custodian or the Document Custodian), in the following cases: 

  

	 	(i)	upon sale of such Securities by or on behalf of the Company, and such sale may, unless and except to the extent otherwise directed by Proper Instructions, be carried out by the Custodian or the Document Custodian:

  

	 	(A)	in accordance with the customary or established practices and procedures in the jurisdiction or market where the transactions occur, including delivery to the purchaser thereof or to a dealer therefor (or an agent of
such purchaser or dealer) against expectation of receiving later payment; or 

  

	 	(B)	in the case of a sale effected through a Securities System, in accordance with the rules governing the operations of the Securities System; 

 

	 	(ii)	upon the receipt of payment in connection with any repurchase agreement related to such Securities; 

  

	 	(iii)	to a depositary agent in connection with tender or other similar offers for such Securities; 

  

	 	(iv)	to the issuer thereof, or its agent, when such Securities are called, redeemed, retired or otherwise become payable (unless otherwise directed by Proper Instructions, the cash or other consideration is to be delivered
to the Custodian, its agents or its sub-custodian); 

  

	 	(v)	to an issuer thereof, or its agent, for transfer into the name of the Custodian, the Document Custodian or of any nominee of the Custodian or the Document Custodian or into the name of any of its agents or sub-custodian or their nominees, or for exchange for a different number of bonds, certificates or other evidence representing the same aggregate face amount or number of units; 

  
 -10- 

	 	(vi)	to brokers, clearing banks or other clearing agents for examination in accordance with the Street Delivery Custom; 

  

	 	(vii)	for exchange or conversion pursuant to any plan of merger, consolidation, recapitalization, reorganization or readjustment of the securities of the issuer of such Securities, or pursuant to any deposit agreement (unless
otherwise directed by Proper Instructions, the new securities and cash, if any, are to be delivered to the Custodian, the Document Custodian, their agents or their sub-custodians); 

 

	 	(viii)	in the case of warrants, rights or similar securities, the surrender thereof in the exercise of such warrants, rights or similar securities or the surrender of interim receipts or temporary securities for definitive
securities (unless otherwise directed by Proper Instructions, the new securities and cash, if any, are to be delivered to the Custodian, the Document Custodian, their agents or their sub-custodians); and/or

  

	 	(ix)	for any other purpose, but only upon receipt of Proper Instructions and an officer’s certificate signed by an officer of the Company (which officer shall not have been the Authorized Person providing the Proper
Instructions) stating (i) the specified securities to be delivered, (ii) the purpose for such delivery, (iii) that such purpose is a proper corporate purpose and (iv) naming the person or persons to whom delivery of such
Securities shall be made, and attaching a certified copy of a resolution of the board of directors of the Company or an authorized committee thereof approving the delivery of such Proper Instructions. 

3.5 Registration of Securities. Securities held by the Custodian, its agents or its
sub-custodian (other than bearer securities, securities held in a Securities System or Securities that are Noteless Loans or Participations) shall be registered in the name of the Company or its nominee; or,
at the option of the Custodian (if the Custodian determines it cannot hold such security in the name of the Company), in the name of the Custodian or in the name of any nominee of the Custodian, or in the name of its agents or its sub-custodian or their nominees; or, if directed by the Company by Proper Instructions, may be maintained in Street Name. The Custodian, its agents and its sub-custodian shall
not be obligated to accept Securities on behalf of the Company under the terms of this Agreement unless such Securities are in Street Name or other good deliverable form. 

3.6 Bank Accounts, and Management of Cash 
  

	 	(a)	Proceeds and other cash received by the Custodian from time to time shall be deposited or credited to the respective Cash Account as designated by the Company. All amounts deposited or credited to the designated Cash
Account shall be subject to clearance and receipt of final payment by the Custodian. 

  
 -11- 

	 	(b)	Amounts held in the respective Cash Account from time to time may be invested in Eligible Investments pursuant to specific written Proper Instructions (which may be standing instructions) received by the Custodian from
an Authorized Person acting on behalf of the Company. Such investments shall be subject to availability and the Custodian’s then applicable transaction charges (which shall be at the Company’s expense). The Custodian shall have no
liability for any loss incurred on any such investment. Absent receipt of such written instruction from the Company, the Custodian shall have no obligation to invest (or otherwise pay interest on) amounts on deposit in the respective Cash Accounts.
In no instance will the Custodian have any obligation to provide investment advice to the Company. Any earnings from such investment of amounts held in the Cash Accounts from time to time (collectively, “Reinvestment Earnings”)
shall be redeposited in the respective Cash Accounts (and may be reinvested at the written direction of the Company). 

  

	 	(c)	In the event that the Company shall at any time request a withdrawal of amounts from any of the Cash Accounts, the Custodian shall be entitled to liquidate, and shall have no liability for any loss incurred as a result
of the liquidation of, any investment of the funds credited to such Cash Account as needed to provide necessary liquidity. 

  

	 	(d)	The Company acknowledges that cash deposited or invested with any bank (including the bank acting as Custodian) may make a margin or generate banking income for which such bank shall not be required to account to the
Company. 

  

	 	(e)	The Custodian shall be authorized to open such additional accounts as may be necessary or convenient for administration of its duties hereunder. 

 

	 	3.7	Foreign Exchange 

  

	 	(a)	Upon the receipt of Proper Instructions, the Custodian, its agents or its sub-custodian may (but shall not be obligated to) enter into all types of contracts for foreign exchange
on behalf of the Company, upon terms acceptable to the Custodian and the Company (in each case at the Company’s expense), including transactions entered into with the Custodian, its sub-custodian or any
affiliates of the Custodian or the sub-custodian. The Custodian shall have no liability for any losses incurred in or resulting from the rates obtained in such foreign exchange transactions; and absent
specific Proper Instructions, the Custodian shall not be deemed to have any duty to carry out any foreign exchange on behalf of the Company. The Custodian shall be entitled at all times to comply with any legal or regulatory requirements applicable
to currency or foreign exchange transactions. 

  

	 	(b)	The Company acknowledges that the Custodian, any sub-custodian or any affiliates of the Custodian or any sub-custodian, involved in any
such foreign exchange transactions may make a margin or generate banking income from foreign exchange transactions entered into pursuant to this Section for which they shall not be required to account to the Company. 

  
 -12- 

 3.8 Collection of Income. The Custodian, its agents or its
sub-custodian shall use reasonable efforts to collect on a timely basis all income and other payments with respect to the Securities held hereunder to which the Company shall be entitled, to the extent
consistent with usual custom in the securities custodian business in the United States. Such efforts shall include collection of interest income, dividends and other payments with respect to registered domestic securities if, on the record date with
respect to the date of payment by the issuer, the Security is registered in the name of the Custodian or its nominee (or in the name of its agent or sub-custodian, or their nominees); and interest income,
dividends and other payments with respect to bearer domestic securities if, on the date of payment by the issuer, such Securities are held by the Custodian or its sub-custodian or agent; provided, however,
that in the case of Securities held in Street Name, the Custodian shall use commercially reasonable efforts only to timely collect income. In no event shall the Custodian’s agreement herein to collect income be construed to obligate the
Custodian to commence, undertake or prosecute any legal proceedings. 
  

	 	3.9	Payment of Moneys. 

  

	 	(a)	Upon receipt of Proper Instructions, which may be standing instructions, the Custodian shall pay out from the respective Cash Account designated by the Company (or remit to its agents or its sub-custodian, and direct them to pay out) moneys of the Company on deposit therein in the following cases: 

  

	 	(i)	upon the purchase of Securities for the Company pursuant to such Proper Instructions; and such purchase may, unless and except to the extent otherwise directed by Proper Instructions, be carried out by the Custodian:

  

	 	(A)	in accordance with the customary or established practices and procedures in the jurisdiction or market where the transactions occur, including delivering money to the seller thereof or to a dealer therefor (or any agent
for such seller or dealer) against expectation of receiving later delivery of such securities; or 

  

	 	(B)	in the case of a purchase effected through a Securities System, in accordance with the rules governing the operation of such Securities System; 

 

	 	(ii)	for the purchase or sale of foreign exchange or foreign exchange agreements for the account of the Company, including transactions executed with or through the Custodian, its agents or its
sub-custodian, as contemplated by Section 3.8 above; and 

  
 -13- 

	 	(iii)	for any other purpose directed by the Company, but only upon receipt of Proper Instructions specifying the amount of such payment, and naming the Person or Persons to whom such payment is to be made. 

 

	 	(b)	At any time or times, the Custodian shall be entitled to pay (i) itself from any of the Cash Accounts, whether or not in receipt of express direction or instruction from the Company, any amounts due and payable to
it pursuant to Section 8 hereof, and (ii) as otherwise permitted by Section 7.5, 9.4 or Section 12.5 below; provided, however, that in each case (i) the Custodian shall have first invoiced or billed the Company for such
amounts and the Company shall have failed to pay such amounts within thirty (30) days after the date of such invoice or bill, and (ii) all such payments shall be regularly accounted for to the Company. 

3.10 Proxies. The Custodian will, with respect to the Securities held hereunder, use reasonable efforts to cause to be promptly executed
by the registered holder of such Securities proxies received by the Custodian from its agents or its sub-custodian or from issuers of the Securities being held for the Company, without indication of the manner
in which such proxies are to be voted, and upon receipt of Proper Instructions shall promptly deliver to the applicable issuer such proxies relating to such Securities. In the absence of such Proper Instructions, or in the event that such Proper
Instructions are not received in a timely fashion, except to the extent otherwise expressly provided herein, the Custodian shall be under no duty to act with regard to such proxies. Notwithstanding the above, neither Custodian nor any nominee of
Custodian shall vote any of the Securities held hereunder by or for the account of the Company, except in accordance with Proper Instructions. 

3.11 Communications Relating to Securities. The Custodian shall transmit promptly to the Company all written information (including
proxies, proxy soliciting materials, notices, pendency of calls and maturities of Securities and expirations of rights in connection therewith) received by the Custodian, from its agents or its sub-custodian
or from issuers of the Securities being held for the Company. The Custodian shall have no obligation or duty to exercise any right or power, or otherwise to preserve rights, in or under any Securities unless and except to the extent it has received
timely Proper Instruction from the Company in accordance with the next sentence. The Custodian will not be liable for any untimely exercise of any right or power in connection with Securities at any time held by the Custodian, its agents or sub-custodian unless: 
 (i) the Custodian has received Proper Instructions with regard to the exercise of
any such right or power; and 
 (ii) the Custodian, or its agents or sub-custodian are in actual
possession of such Securities, 
 in each case, at least three (3) Business Days prior to the date on which such right or power is to be
exercised. It will be the responsibility of the Company to notify the Custodian of the Person to whom such communications must be forwarded under this Section. 

  
 -14- 

 3.12 Records. The Custodian shall create and maintain complete and accurate records
relating to its activities under this Agreement with respect to the Securities, cash or other property held for the Company under this Agreement, as required by Section 31 of the 1940 Act, and
Rules 31a-1 and 32a-2 thereunder. To the extent that the Custodian, in its sole opinion, is able to do so, the Custodian shall provide assistance to the Company (at
the Company’s reasonable request made from time to time) by providing sub-certifications regarding certain of its services performed hereunder to the Company in connection with the Company’s
certification requirements pursuant to the Sarbanes-Oxley Act of 2002, as amended. All such records shall be the property of the Company and shall at all times during the regular business hours of the Custodian be open for inspection by duly
authorized officers, employees or agents of the Company (including its independent public accountants) and employees and agents of the Securities and Exchange Commission, upon reasonable request and prior notice and at the Company’s expense.
The Custodian shall, at the Company’s request, supply the Company with a tabulation of Securities owned by the Company and held by the Custodian and shall, when requested to do so by the Company and for such compensation as shall be agreed upon
between the Company and the Custodian, include, to the extent applicable, the certificate numbers in such tabulations, to the extent such information is available to the Custodian. 

 

	 	3.13	Custody of Subsidiary Securities. 

  

	 	(a)	At the request of the Company, with respect to each Subsidiary identified to the Custodian by the Company, there shall be established at the Custodian a segregated trust account to which the Custodian shall deposit and
hold any Subsidiary Securities (other than Loans) received by it pursuant to this Agreement, which account shall be designated the “[INSERT NAME OF SUBSIDIARY] Securities Account” (the “Subsidiary Securities Account”).

  

	 	(b)	At the request of the Company, with respect to each Subsidiary identified to the Custodian by the Company, there shall be established at the Custodian a segregated trust account to which the Custodian shall deposit and
hold any Proceeds received by it from time to time from or with respect to Subsidiary Securities or other Proceeds, which account shall be designated the “[INSERT NAME OF SUBSIDIARY] Cash Proceeds Account” (the “Subsidiary Cash
Account”). 

  

	 	(c)	To the maximum extent possible, the provisions of this Agreement regarding Securities of the Company, the Securities Account and the Cash Accounts shall be applicable to any Subsidiary Securities, cash and other
investment assets, Subsidiary Securities Account and Subsidiary Cash Account, respectively. The parties hereto agree that the Company shall notify the Custodian in writing as to the establishment of any Subsidiary as to which the Custodian is to
serve as custodian pursuant to the terms of this Agreement; and identify in writing any accounts the Custodian shall be required to establish for such Subsidiary as herein provided. 

  
 -15- 

	3A.	DUTIES OF DOCUMENT CUSTODIAN 

  

	 	(a)	With respect to Loans, Required Loan Documents and other Underlying Loan Documents shall be delivered to the Custodian in its role as, and at the address identified for, the Document Custodian. All Required Loan
Documents shall be held in safekeeping by the Document Custodian, individually segregated from the securities and investments of any other Person and marked so as to clearly identify them as the property of the Company in a manner consistent with
Rule 17f-1 under the 1940 Act and as set forth in this Agreement. 

  

	 	(b)	In connection with its acquisition of a Loan or other delivery of a Security constituting a Loan, the Company shall deliver or cause to be delivered to the Document Custodian the Required Loan Documents, including the
Loan Checklist. 

  

	 	(c)	For the avoidance of doubt, the Document Custodian shall have no obligation to review or monitor any Required Loan Documents or other Underlying Loan Documents but shall only be required to hold those Required Loan
Documents or other Underlying Loan Documents received by it in accordance with this Agreement. For avoidance of doubt, all rights, protections, indemnities and immunities provided in this Agreement in favor of the Custodian shall also apply to the
Document Custodian. 

  

	4.	REPORTING 

  

	 	(a)	The Custodian shall render to the Company a monthly report of (i) all deposits to and withdrawals from the Cash Accounts during the month, and the outstanding balance (as of the last day of the preceding monthly
report and as of the last day of the subject month) and (ii) an itemized statement of the Securities held pursuant to this Agreement as of the end of each month, all transactions in the Securities during the month, as well as a list of all
Securities transactions that remain unsettled at that time, and (iii) such other matters as the parties may agree from time to time. 

  

	 	(b)	For each Business Day, the Custodian shall render to the Company a daily report of (i) all deposits to and withdrawals from the Cash Accounts for such Business Day and the outstanding balance as of the end of such
Business Day, and (ii) a report of settled trades of Securities for such Business Day. 

  

	 	(c)	The Custodian shall have no duty or obligation to undertake any market valuation of the Securities under any circumstance. 

  
 -16- 

	 	(d)	The Custodian shall provide the Company, promptly upon request, with such reports as are reasonably available to it and as the Company may reasonably request from time to time, concerning the internal accounting
controls, including procedures for safeguarding securities which are employed by the Custodian and the financial strength of the Custodian. 

  

	5.	DEPOSIT IN U.S. SECURITIES SYSTEMS 

 The Custodian may deposit and/or maintain Securities in a
Securities System within the United States in accordance with applicable Federal Reserve Board and Securities and Exchange Commission rules and regulations, including Rule 17f-4 under the 1940 Act,
and subject to the following provisions: 
  

	 	(a)	The Custodian may keep domestic Securities in a U.S. Securities System; provided that such Securities are represented in an account of the Custodian in the U.S. Securities System which shall not include any assets of
the Custodian other than assets held by it as a fiduciary, custodian or otherwise for customers; 

  

	 	(b)	The records of the Custodian with respect to Securities which are maintained in a U.S. Securities System shall identify by book-entry those Securities belonging to the Company; 

 

	 	(c)	The Custodian shall provide to the Company copies of all notices received from the U.S. Securities System of transfers of Securities for the account of the Company; and 

 

	 	(d)	Anything to the contrary in this Agreement notwithstanding, the Custodian shall not be liable to the Company for any direct loss, damage, cost, expense, liability or claim to the Company resulting from use of any U.S.
Securities System (other than to the extent resulting from the gross negligence or willful misconduct of the Custodian itself, or from failure of the Custodian to enforce effectively such rights as it may have against the U.S. Securities System).

  

	6.	[RESERVED.] 

  

	7.	CERTAIN GENERAL TERMS 

 7.1 No Duty to Examine Underlying Instruments.
Nothing herein shall obligate the Custodian to review or examine the terms of any underlying instrument, certificate, credit agreement, indenture, loan agreement, promissory note, or other financing document evidencing or governing any Security to
determine the validity, sufficiency, marketability or enforceability of any Security (and shall have no responsibility for the genuineness or completeness thereof), or otherwise. 

7.2 Resolution of Discrepancies. In the event of any discrepancy between the information set forth in any report provided by the
Custodian to the Company and any information contained in the books or records of the Company, the Company shall promptly notify the Custodian thereof and the parties shall cooperate to diligently resolve the discrepancy. 

  
 -17- 

 7.3 Improper Instructions. Notwithstanding anything herein to the contrary, the Custodian
shall not be obligated to take any action (or forebear from taking any action), which it reasonably determines to be contrary to the terms of this Agreement or applicable law. In no instance shall the Custodian be obligated to provide services on
any day that is not a Business Day. 
  

	 	7.4	Proper Instructions 

  

	 	(a)	The Company will give written notice to the Custodian, in forms acceptable to the Custodian, specifying the names and specimen signatures of persons authorized to give Proper Instructions (collectively,
“Authorized Persons” and each is an “Authorized Person”) on its behalf, which notice shall be signed by any two Authorized Persons of the Company, previously certified to the Custodian. The Custodian shall be
entitled to rely upon the identity and authority of such persons until it receives written notice from an Authorized Person of the Company to the contrary. The initial Authorized Persons of the Company are set forth on Schedule B attached
hereto and made a part hereof (as such Schedule B may be modified from time to time by written notice from the Company to the Custodian); and the Company hereby represents and warrants that the true and accurate specimen signatures of such
initial Authorized Persons are set forth on Schedule B. If such persons elect to give the Custodian email or facsimile instructions (or instructions by a similar electronic method) and the Custodian in its discretion elects to act upon such
instructions, the Custodian’s reasonable understanding of such instructions shall be deemed controlling. The Custodian shall not be liable for any losses, costs or expenses arising directly or indirectly from the Custodian’s reliance upon
and compliance with such instructions. Any persons providing such instructions or directions agrees to assume all risks arising out of the use of such electronic methods to submit instructions and directions to the Custodian, including without
limitation the risk of the Custodian acting on unauthorized instructions, and the risk of interception and misuse by third parties. 

  

	 	(b)	The Custodian shall have no responsibility or liability to the Company (or any other person or entity), and shall be indemnified and held harmless by the Company, in the event that a subsequent written confirmation of
an oral instruction fails to conform to the oral instructions received by the Custodian. The Custodian shall not have an obligation to act in accordance with purported instructions to the extent that they conflict with applicable law or regulations,
local market practice or the Custodian’s operating policies and practices. The Custodian shall not be liable for any loss resulting from a delay while it obtains clarification of any Proper Instructions. 

  
 -18- 

 7.5 Actions Permitted Without Express Authority. The Custodian may, at its discretion,
without express authority from the Company: 
  

	 	(a)	make payments to itself as described in or pursuant to Section 3.9(b), or to make payments to itself or others for minor expenses of handling securities or other similar items relating to its duties under this
Agreement; provided that (i) the Custodian shall have first invoiced or billed the Company for such amounts and the Company shall have failed to pay such amounts within thirty (30) days after the date of such invoice or bill, and
(ii) all such payments shall be regularly accounted for to the Company; 

  

	 	(b)	surrender Securities in temporary form for Securities in definitive form; 

  

	 	(c)	endorse for collection cheques, drafts and other negotiable instruments; and 

  

	 	(d)	in general attend to all nondiscretionary details in connection with the sale, exchange, substitution, purchase, transfer and other dealings with the securities and property of the Company. 

7.6 Evidence of Authority. The Custodian shall be protected in acting upon any instructions, notice, request, consent, certificate,
instrument or paper reasonably believed by it to be genuine and to have been properly executed or otherwise given by or on behalf of the Company by an Authorized Person. The Custodian may receive and accept a certificate signed by any Authorized
Person as conclusive evidence of: 
  

	 	(a)	the authority of any person to act in accordance with such certificate; or 

  

	 	(b)	any determination or action by the Company as described in such certificate, and such certificate may be considered as in full force and effect until receipt by the Custodian of written notice to the contrary from an
Authorized Person. 

 7.7 Receipt of Communications. Any communication received by the Custodian on a day which is not a
Business Day or after 3:30 p.m., Eastern time (or such other time as is agreed by the Company and the Custodian from time to time), on a Business Day will be deemed to have been received on the next Business Day (but in the case of communications so
received after 3:30 p.m., Eastern time, on a Business Day the Custodian will use its best efforts to process such communications as soon as possible after receipt). 
  

	8.	COMPENSATION OF CUSTODIAN 

 8.1 Fees. The Custodian shall be entitled to
compensation for its services in accordance with the terms of that certain fee letter dated March 8, 2017, between the Company and the Custodian. 

8.2 Expenses. The Company agrees to pay or reimburse to the Custodian upon its request from time to time all costs, disbursements,
advances, and expenses (including reasonable fees and expenses of legal counsel) incurred, and any disbursements and advances made (including any account overdraft resulting from any settlement or 

  
 -19- 

 
assumed settlement, provisional credit, chargeback, returned deposit item, reclaimed payment or claw-back, or the like), in connection with the preparation or execution of this Agreement, or in
connection with the transactions contemplated hereby or the administration of this Agreement or performance by the Custodian of its duties and services under this Agreement, from time to time (including costs and expenses of any action deemed
necessary by the Custodian to collect any amounts owing to it under this Agreement). 
  

	9.	RESPONSIBILITY OF CUSTODIAN 

 9.1 General Duties. The Custodian shall have
no duties, obligations or responsibilities under this Agreement or with respect to the Securities or Proceeds except for such duties as are expressly and specifically set forth in this Agreement, and the duties and obligations of the Custodian shall
be determined solely by the express provisions of this Agreement. No implied duties, obligations or responsibilities shall be read into this Agreement against, or on the part of, the Custodian. 

 

	 	9.2	Instructions 

  

	 	(a)	The Custodian shall be entitled to refrain from taking any action unless it has such instruction (in the form of Proper Instructions) from the Company as it reasonably deems necessary, and shall be entitled to require,
upon notice to the Company, that Proper Instructions to it be in writing. The Custodian shall have no liability for any action (or forbearance from action) taken pursuant to the Proper Instruction of the Company. 

 

	 	(b)	Whenever the Custodian is entitled or required to receive or obtain any communications or information pursuant to or as contemplated by this Agreement, it shall be entitled to receive the same in writing, in form,
content and medium reasonably acceptable to it and otherwise in accordance with any applicable terms of this Agreement; and whenever any report or other information is required to be produced or distributed by the Custodian it shall be in form,
content and medium reasonably acceptable to it and the Company and otherwise in accordance with any applicable terms of this Agreement. 

9.3 General Standards of Care. Notwithstanding any terms herein contained to the contrary, the acceptance by the Custodian of its
appointment hereunder is expressly subject to the following terms, which shall govern and apply to each of the terms and provisions of this Agreement (whether or not so stated therein): 

 

	 	(a)	 The Custodian may rely on (and shall be protected in acting or refraining from acting in reliance upon) any
written notice, instruction, statement, certificate, request, waiver, consent, opinion, report, receipt or other paper or document furnished to it (including any of the foregoing provided to it by telecopier or electronic means), not only as to its
due execution and validity, but also as to the truth and accuracy of any information therein contained, which it in good faith 

  
 -20- 

	 	
believes to be genuine and signed or presented by the proper person (which in the case of any instruction from or on behalf of the Company shall be an Authorized Person); and the Custodian shall
be entitled to presume the genuineness and due authority of any signature appearing thereon. The Custodian shall not be bound to make any independent investigation into the facts or matters stated in any such notice, instruction, statement,
certificate, request, waiver, consent, opinion, report, receipt or other paper or document; provided, however, that, if the form thereof is specifically prescribed by the terms of this Agreement, the Custodian shall examine the same to determine
whether it substantially conforms on its face to such requirements hereof. 

  

	 	(b)	Neither the Custodian nor any of its directors, officers or employees shall be liable to anyone for any error of judgment, or for any act done or step taken or omitted to be taken by it (or any of its directors,
officers of employees), or for any mistake of fact or law, or for anything which it may do or refrain from doing in connection herewith, unless such action or inaction constitutes gross negligence, willful misconduct or bad faith on its part and in
breach of the terms of this Agreement. The Custodian shall not be liable for any action taken by it in good faith and reasonably believed by it to be within powers conferred upon it, or taken by it pursuant to any direction or instruction by which
it is governed hereunder, or omitted to be taken by it by reason of the lack of direction or instruction required hereby for such action. The Custodian shall not be under any obligation at any time to ascertain whether the Company is in compliance
with the 1940 Act, the regulations thereunder, or the Company’s investment objectives and policies then in effect. 

  

	 	(c)	In no event shall the Custodian be liable for any indirect, special, consequential or punitive damages (including lost profits) whether or not it has been advised of the likelihood of such damages. 

 

	 	(d)	The Custodian may consult with, and obtain advice from, legal counsel selected in good faith with respect to any question as to any of the provisions hereof or its duties hereunder, or any matter relating hereto, and
the written opinion or advice of such counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by the Custodian in good faith in accordance with the opinion and directions of such counsel;
the reasonable cost of such services shall be reimbursed pursuant to Section 8.2 above. 

  

	 	(e)	The Custodian shall not be deemed to have notice of any fact, claim or demand with respect hereto unless actually known by an officer working in its Corporate Trust Services group and charged with responsibility for
administering this Agreement or unless (and then only to the extent received) in writing by the Custodian at the applicable address(es) as set forth in Section 15 and specifically referencing this Agreement. 

  
 -21- 

	 	(f)	No provision of this Agreement shall require the Custodian to expend or risk its own funds, or to take any action (or forbear from action) hereunder which might in its judgment involve any expense or any financial or
other liability unless it shall be furnished with acceptable indemnification. Nothing herein shall obligate the Custodian to commence, prosecute or defend legal proceedings in any instance, whether on behalf of the Company or on its own behalf or
otherwise, with respect to any matter arising hereunder, or relating to this Agreement or the services contemplated hereby. 

  

	 	(g)	The permissive right of the Custodian to take any action hereunder shall not be construed as duty. 

  

	 	(h)	The Custodian may act or exercise its duties or powers hereunder through agents (including, for avoidance of doubt, sub-custodians) or attorneys, and the Custodian shall not be
liable or responsible for the actions or omissions of any such agent or attorney (i) appointed with the Company’s prior written consent specifically acknowledging such limitation of liability and (ii) maintained with reasonable due
care. 

  

	 	(i)	All indemnifications contained in this Agreement in favor of the Custodian shall survive the termination of this Agreement or earlier resignation or removal of the Custodian. 

 

	 	9.4	Indemnification; Custodian’s Lien.  

  

	 	(a)	The Company shall and does hereby indemnify and hold harmless each of the Custodian for and from any and all costs and expenses (including reasonable attorney’s fees and expenses), and any and all losses, damages,
claims and liabilities, that may arise, be brought against or incurred by the Custodian, whether direct, indirect or consequential, as a result of or arising from or in any way relating to any claim, demand, suit, action or proceeding (including any
inquiry or investigation) by any person, including without limitation the Company or any Subsidiary, and any advances or disbursements made by the Custodian (including in respect of any Account overdraft, returned deposit item, chargeback,
provisional credit, settlement or assumed settlement, reclaimed payment, claw-back or the like), as a result of, relating to, or arising out of this Agreement, or the administration or performance of the Custodian’s duties hereunder, or the
relationship between the Company (including, for the avoidance of doubt, any Subsidiary) and the Custodian created hereby, other than such liabilities, losses, damages, claims, costs and expenses as are directly caused by the Custodian’s action
or inaction constituting gross negligence or willful misconduct. 

  

	 	(b)	 If the Company requires the Custodian, its affiliates, subsidiaries or agents, to advance cash or securities for
any purpose (including but not limited to securities settlements, foreign exchange contracts and assumed settlement) or in the event that the Custodian or its nominee shall incur or be assessed any taxes, charges,

  
 -22- 

	 	
expenses, assessments, claims or liabilities in connection with the performance of this Agreement, except such as may arise from its or its nominee’s own gross negligent action, grossly
negligent failure to act or willful misconduct, or if the Company fails to compensate or pay the Custodian pursuant to Section 8.1 or Section 9.4 hereof, any cash at any time held for the account of the Company shall be security therefor
and should the Company fail to repay the Custodian promptly (or, if specified, within the time frame provided herein), the Custodian shall be entitled to utilize available cash to the extent necessary to obtain reimbursement 

9.5 Force Majeure. Without prejudice to the generality of the foregoing, the Custodian shall be without liability to the Company for any
damage or loss resulting from or caused by events or circumstances beyond the Custodian’s reasonable control, including nationalization, expropriation, currency restrictions, the interruption, disruption or suspension of the normal procedures
and practices of any securities market, power, mechanical, communications or other technological failures or interruptions, computer viruses or the like, fires, floods, earthquakes or other natural disasters, civil and military disturbance, acts of
war or terrorism, riots, revolution, acts of God, work stoppages, strikes, national disasters of any kind, or other similar events or acts; errors by the Company (including any Authorized Person) in its instructions to the Custodian; or changes in
applicable law, regulation or orders. 
  

	10.	SECURITY CODES 

 If the Custodian issues to the Company security codes, passwords or test keys in
order that it may verify that certain transmissions of information, including Proper Instructions, have been originated by the Company, the Company shall take all commercially reasonable steps to safeguard any security codes, passwords, test keys or
other security devices which the Custodian shall make available. 
  

	11.	TAX LAW 

 11.1 Domestic Tax Law. The Custodian shall have no responsibility
or liability for any obligations now or hereafter imposed on the Company, or the Custodian as custodian of the Securities or the Proceeds, by the tax law of the United States or any state or political subdivision thereof. The Custodian shall be kept
indemnified by and be without liability to the Company for such obligations including taxes (but excluding any income taxes assessable in respect of compensation paid to the Custodian pursuant to this Agreement), withholding, certification and
reporting requirements, claims for exemption or refund, additions for late payment interest, penalties and other expenses (including legal expenses) that may be assessed against the Company, or the Custodian as custodian of the Securities or
Proceeds. 
 11.2 [Reserved.] 

  
 -23- 

	12.	EFFECTIVE PERIOD, TERMINATION 

 12.1 Effective Date. This Agreement shall
become effective as of its due execution and delivery by each of the parties. This Agreement shall continue in full force and effect until terminated as hereinafter provided. This Agreement may be terminated by the Custodian or the Company pursuant
to Section 12.2. 
 12.2 Termination. This Agreement shall terminate upon the earliest of (a) occurrence of the effective
date of termination specified in any written notice of termination given by the Company or the Custodian to the other not later than sixty (60) days prior to the effective date of termination specified therein, (b) such other date of
termination as may be mutually agreed upon by the parties in writing. 
 12.3 Resignation. The Custodian may at any time resign under
this Agreement by giving not less than sixty (60) days advance written notice thereof to the Company. The Company may at any time remove the Custodian under this Agreement by giving not less than sixty (60) days advance written notice
thereof to the Custodian. 
 12.4 Successor. Prior to the effective date of termination of this Agreement, or the effective date of
the resignation or removal of the Custodian, as the case may be, the Company shall give Proper Instructions to the Custodian designating a successor Custodian, if applicable. The Custodian shall, upon receipt of Proper Instruction from the Company
(i) deliver directly to the successor Custodian all Securities (other than Securities held in a Book-Entry System or Securities Depository) and cash then owned by the Company and held by the Custodian as custodian, and (ii) transfer any
Securities held in a Book-Entry System or Securities Depository to an account of or for the benefit of the Company at the successor Custodian, provided that the Company shall have paid to the Custodian all fees, expenses and other amounts to the
payment or reimbursement of which it shall then be entitled. In addition, the Custodian shall, at the expense of the Company, transfer to such successor all relevant books, records, correspondence, and other data established or maintained by the
Custodian under this Agreement (if such form differs from the form in which the Custodian has maintained the same, the Company shall pay any expenses associated with transferring the data to such form), and will cooperate in the transfer of such
duties and responsibilities. Upon such delivery and transfer, the Custodian shall be relieved of all obligations under this Agreement. 

12.5 Payment of Fees, etc. Upon termination of this Agreement or resignation or removal of the Custodian, the Company shall pay to the
Custodian such compensation, and shall likewise reimburse the Custodian for its costs, expenses and disbursements, as may be due as of the date of such termination or resignation (or removal, as the case may be). All indemnifications in favor of the
Custodian under this Agreement shall survive the termination of this Agreement, or any resignation or removal of the Custodian. 

  
 -24- 

 12.6 Final Report. In the event of any resignation or removal of the Custodian, the
Custodian shall provide to the Company a complete final report or data file transfer of any Confidential Information as of the date of such resignation or removal. 
  

	13.	REPRESENTATIONS AND WARRANTIES 

 13.1 Representations of the Company. The
Company represents and warrants to the Custodian that: 
  

	 	(a)	it has the power and authority to enter into and perform its obligations under this Agreement, and it has duly authorized, executed and delivered this Agreement so as to constitute its valid and binding obligation; and

  

	 	(b)	in giving any instructions which purport to be “Proper Instructions” under this Agreement, the Company will act in accordance with the provisions of its certificate of incorporation and bylaws and any
applicable laws and regulations. 

 13.2 Representations of the Custodian. The Custodian hereby represents and warrants to
the Company that:  
  

	 	(a)	it is qualified to act as a custodian pursuant to Sections 17(f) and 26(a)(1) of the 1940 Act; 

  

	 	(b)	it has the power and authority to enter into and perform its obligations under this Agreement; 

  

	 	(c)	it has duly authorized, executed and delivered this Agreement so as to constitute its valid and binding obligations; and 

  

	 	(d)	it maintains business continuity policies and standards that include data file backup and recovery procedures that comply with all applicable regulatory requirements. 

 

	14.	PARTIES IN INTEREST; NO THIRD PARTY BENEFIT 

 This Agreement is not intended for, and shall not be
construed to be intended for, the benefit of any third parties and may not be relied upon or enforced by any third parties (other than successors and permitted assigns pursuant to Section 19). 

 

	15.	NOTICES 

 Any Proper Instructions (to the extent given by hand, mail, courier, electronic mail or
telecopier) shall be given to the following address (or such other address as either party may designate by written notice to the other party), and otherwise any notices, approvals and other communications hereunder shall be sufficient if made in
writing and given to the parties at the following address (or such other address as either of them may subsequently designate by notice to the other), given by (i) hand, (ii) certified or registered mail, postage prepaid,
(iii) recognized courier or delivery service, or (iv) confirmed telecopier or telex or by electronic mail: 

  
 -25- 

	 	(a)	if to the Company or any Subsidiary, to 

 CM Finance Inc 

601 Lexington Avenue 
 Floor 26,
Suite C 
 New York, NY 10022 

Telephone: (212) 257-5193 

Attention: Rocco DelGuercio 

Chief Financial Officer & 

Chief Compliance Officer 

Email: rdelguercio@cmipllc.com 

With a copy to: 
 Eversheds
Sutherland (US) LLP 
 700 Sixth Street, NW 

Suite 700 
 Washington, DC
20001-3980 
  

	 	(b)	if to the Custodian (other than in its role as Document Custodian), to 

 CDO Group/ Corporate
Trust Services 
 U.S. Bank, NA 

EX-MA-FED 

One Federal Street, Third Floor 

Boston, MA 02110 
 Telephone:
(617) 603-6554 
 Attention: Natalia Gutierrez 

Email: Natalia.gutierrez@usbank.com 
  

	 	(c)	if to the Custodian solely in its role as Document Custodian, to 

 U.S. Bank National
Association 
 1719 Otis Way 

Mail Code: Ex – SC – FLOR 

Florence, South Carolina 29501 

Attention: Steven Garrett 
 Ref:
CM Finance Inc 
 Fax: (843) 673-0162 

  
 -26- 

	16.	CHOICE OF LAW AND JURISDICTION 

 This Agreement shall be construed, and the provisions thereof
interpreted under and in accordance with and governed by the laws of the State of New York for all purposes (without regard to its choice of law provisions); except to the extent such laws are inconsistent with federal securities laws, including the
1940 Act, in which case such federal securities laws shall govern. The Custodian and the Company each waive, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to
this agreement, any other agreement or the transactions contemplated hereby. 
  

	17.	ENTIRE AGREEMENT; COUNTERPARTS 

 17.1 Complete Agreement. This Agreement
constitutes the complete and exclusive agreement of the parties with regard to the matters addressed herein and supersedes and terminates, as of the date hereof, all prior agreements or understandings, oral or written, between the parties to this
Agreement relating to such matters. 
 17.2 Counterparts. This Agreement may be executed in any number of counterparts and all
counterparts taken together shall constitute one and the same instrument. 
 17.3 Facsimile Signatures. The exchange of copies of this
Agreement and of signature pages by facsimile transmission or pdf shall constitute effective execution and delivery of this Agreement as to the parties and may be used in lieu of the original Agreement for all purposes. Signatures of the parties
transmitted by facsimile or pdf shall be deemed to be their original signatures for all purposes. 
  

	18.	AMENDMENT; WAIVER 

 18.1 Amendment. This Agreement may not be amended
except by an express written instrument duly executed by each of the Company, the Custodian and the Document Custodian. 
 18.2
Waiver. In no instance shall any delay or failure to act be deemed to be or effective as a waiver of any right, power or term hereunder, unless and except to the extent such waiver is set forth in an express written instrument signed by the
party against whom it is to be charged. 
  

	19.	SUCCESSOR AND ASSIGNS 

 19.1 Successors Bound. The covenants and agreements
set forth herein shall be binding upon and inure to the benefit of each of the parties and their respective successors and permitted assigns. Neither party shall be permitted to assign their rights under this Agreement without the written consent of
the other party; provided, however, that the foregoing shall not limit the ability of the Custodian to delegate certain duties or services to or perform them through agents or attorneys appointed with due care as expressly provided in this
Agreement. 

  
 -27- 

 19.2 Merger and Consolidation. Any corporation or association into which the Custodian may
be merged or converted or with which it may be consolidated, or any corporation or association resulting from any merger, conversion or consolidation to which the Custodian shall be a party, or any corporation or association to which the Custodian
transfers all or substantially all of its corporate trust business, shall be the successor of the Custodian hereunder, and shall succeed to all of the rights, powers and duties of the Custodian hereunder, without the execution or filing of any paper
or any further act on the part of any of the parties hereto. 
  

	20.	SEVERABILITY 

 The terms of this Agreement are hereby declared to be severable, such that if any
term hereof is determined to be invalid or unenforceable, such determination shall not affect the remaining terms. 
  

	21.	REQUEST FOR INSTRUCTIONS 

 If, in performing its duties under this Agreement, the Custodian is
required to decide between alternative courses of action, the Custodian may (but shall not be obliged to) request written instructions from the Company as to the course of action desired by it. If the Custodian does not receive such instructions
within two (2) Business Days after it has requested them, the Custodian may, but shall be under no duty to, take or refrain from taking any such courses of action. The Custodian shall act in accordance with instructions received from the
Company in response to such request after such two-Business Day period except to the extent it has already taken, or committed itself to take, action inconsistent with such instructions. 

 

	22.	OTHER BUSINESS 

 Nothing herein shall prevent the Custodian or any of its affiliates from engaging
in other business, or from entering into any other transaction or financial or other relationship with, or receiving fees from or from rendering services of any kind to the Company or any other Person. Nothing contained in this Agreement shall
constitute the Company and/or the Custodian (and/or any other Person) as members of any partnership, joint venture, association, syndicate, unincorporated business or similar assignment as a result of or by virtue of the engagement or relationship
established by this Agreement. 
  

	23.	REPRODUCTION OF DOCUMENTS 

 This Agreement and all schedules, exhibits, attachments and amendment
hereto may be reproduced by any photographic, photostatic, microfilm, micro-card, miniature photographic or other similar process. The parties hereto each agree that any such reproduction shall be admissible in evidence as the original itself in any
judicial or administrative proceeding, whether or not the original is in existence and whether or not such reproduction was made by a party in the regular course of business, and that any enlargement, facsimile or further production shall likewise
be admissible in evidence. 

  
 -28- 

	24.	ACQUISITION OF FOREIGN SECURITIES 

 The Custodian acknowledges that, upon the Company’s
written notice to the Custodian of its anticipated acquisition of any foreign securities to be held pursuant to this Agreement, the Company and the Custodian will negotiate in good faith to amend this Agreement to reflect the holding of such foreign
securities pursuant to this Agreement, including with respect to provisions that may be required by law for a business development company. 
  

	25.	ERISA 

 The Company hereby represents and warrants to the Custodian that the Company shall not,
without the prior written consent of the Custodian, permit the assets of the Accounts to be deemed “plan assets” as contemplated by Department of Labor regulations 29 C.F.R. 2510.3-101 promulgated
under ERISA (as defined below). The Company acknowledges and agrees that the Custodian shall not grant its consent in the foregoing circumstance unless and until the Company has entered into such amendments to this Agreement and has provided such
assurances and indemnities to the Custodian, as the Custodian reasonably may require to be assured that its custody of the Accounts will not subject it to liability under the Employment Retirement Income Security Act of 1974, as amended
(“ERISA”). If for any reason the Company breaches or otherwise fails to comply with the provisions of this Section, this Agreement may be terminated immediately by the Custodian. 

 

	26.	MISCELLANEOUS 

 The Company acknowledges receipt of the following notice: 

“ IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT. 

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to
obtain, verify and record information that identifies each person who opens an account. For a non-individual person such as a business entity, a charity, a trust or other legal entity the Custodian will ask
for documentation to verify its formation and existence as a legal entity. The Custodian may also ask to see financial statements, licenses, identification and authorization documents from individuals claiming authority to represent the entity or
other relevant documentation.” 
 [PAGE INTENTIONALLY ENDS HERE. SIGNATURES APPEAR ON NEXT PAGE.] 

  
 -29- 

 IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed and delivered by
a duly authorized officer, intending the same to take effect as of the date first written above. 
  

			
	 CM FINANCE INC,
 as the
Company

		
	By:	 	 /s/ Rocco DelGuercio

	Name: Rocco DelGuercio
	Title: Chief Financial Officer
	
	 U.S. BANK NATIONAL ASSOCIATION,

as the Custodian

		
	By:	 	 /s/ Ralph J. Creasia Jr.

	Name: Ralph J. Creasia Jr.
	Title: Senior Vice President
	
	 U.S. BANK NATIONAL ASSOCIATION,

as the Document Custodian

		
	By:	 	 /s/ Kenneth Brandt

	Name: Kenneth Brandt
	Title: Assistant Vice President

 [Signature Page to Custody Agreement] 

 

 SCHEDULE A 

(Trade Confirmation) 
 [See
Attached.] 

 SCHEDULE B 

CERTIFICATE OF AUTHORIZED PERSONS 

Each of the undersigned hereby certifies that he/she is the duly elected and acting President and Secretary and Chief Financial Officer and
Treasurer, respectively, of CM Finance Inc (the “Company”), and further certifies that the following officers or employees of the Company have been duly authorized to deliver Proper Instructions to the Custodian pursuant to the Agreement
between the Company and Custodian, dated August 31, 2017, and that the signatures appearing opposite their names are true and correct: 
  

					
	 Michael C. Mauer

Name
	  	 Chief Executive Officer

Title
	  	 /s/ Michael C. Mauer

Signature

			
	 Christopher E. Jansen

Name
	  	 President and Secretary

Title
	  	 /s/ Christopher E. Jansen

Signature

			
	 Rocco DelGuercio

Name
	  	 Chief Financial Officer and Treasurer

Title
	  	 /s/ Rocco DelGuercio

Signature

			
	      

Name
	  	      

Title
	  	      

Signature

			
	      

Name
	  	      

Title
	  	      

Signature

			
	      

Name
	  	      

Title
	  	      

Signature

			
	      

Name
	  	      

Title
	  	      

Signature

 This certificate supersedes any certificate of Authorized Persons you may currently have on file. 

 

	
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	Date:
	
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