Document:

EX-4.2

 Exhibit 4.2 

EXECUTION VERSION 
  

 
  

FIRST SUPPLEMENTAL INDENTURE 

BETWEEN 
 BRIGHTHOUSE FINANCIAL,
INC., 
 ISSUER 
 AND 

U.S. BANK NATIONAL ASSOCIATION, 

TRUSTEE 
 DATED AS OF MAY 15,
2020 
 5.625% SENIOR NOTES DUE 2030 
  

 
  

 

 TABLE OF CONTENTS 

 

							
	 	  	Page	 
	ARTICLE I	  

	DEFINITIONS AND ESTABLISHMENT	  

			
	 SECTION 1.01
	 	Definitions	  	 	1	 
	 SECTION 1.02
	 	Establishment	  	 	3	 
	
	ARTICLE II	  

	TERMS AND CONDITIONS OF THE NOTES	
 

			
	 SECTION 2.01
	 	Payment of Principal and Interest	  	 	4	 
	 SECTION 2.02
	 	Global Securities	  	 	5	 
	 SECTION 2.03
	 	No Sinking Fund	  	 	6	 
	 SECTION 2.06
	 	Redemption at the Option of the Company	  	 	6	 
	 SECTION 2.10
	 	Defeasance	  	 	8	 
	
	ARTICLE III	  

	MISCELLANEOUS PROVISIONS	  

			
	 SECTION 3.01
	 	Effectiveness	  	 	8	 
	 SECTION 3.02
	 	Notes Unaffected by Other Supplemental Indentures	  	 	8	 
	 SECTION 3.03
	 	Trustee Not Responsible for Recitals	  	 	8	 
	 SECTION 3.04
	 	Ratification and Incorporation of Base Indenture	  	 	9	 
	 SECTION 3.05
	 	Governing Law	  	 	9	 
	 SECTION 3.06
	 	Separability	  	 	9	 
	 SECTION 3.07
	 	Executed in Counterparts	  	 	9	 
	
	EXHIBITS	  

			
	 Exhibit A
	 	Form of 5.625% Senior Notes due 2030	  			

  

  
 i 

 FIRST SUPPLEMENTAL INDENTURE, dated as of May 15, 2020 (this “First
Supplemental Indenture”), between Brighthouse Financial, Inc., a Delaware corporation (the “Company”), and U.S. Bank National Association, not in its individual capacity but solely in its capacity as trustee
hereunder (together with its successors and assigns in such capacity, the “Trustee”), supplementing the Senior Indenture, dated as of May 15, 2020 (the “Base Indenture”), between the Company and the
Trustee. 
 RECITALS 

WHEREAS, the Company executed and delivered the Base Indenture to the Trustee to provide for the future issuance of the Company’s senior
debt securities (the “Securities”), to be issued from time to time in one or more series as might be determined by the Company under the Base Indenture; 

WHEREAS, pursuant to the terms of the Base Indenture and this First Supplemental Indenture (together, the “Indenture”),
the Company has duly authorized the creation and issuance of its 5.625% Senior Notes due 2030 (the “Notes”) in an initial aggregate principal amount of $500,000,000, the form and substance of such Notes, and the terms,
provisions and conditions thereof to be set forth herein as provided in the Indenture; 
 WHEREAS, the Company has requested that the
Trustee, in respect to the Notes, execute and deliver this First Supplemental Indenture in such capacity; and 
 WHEREAS, all requirements
necessary to make this First Supplemental Indenture a valid instrument in accordance with its terms and to make the Notes, when executed by the Company and authenticated and delivered by the Trustee or an Authenticating Agent, the valid obligations
of the Company, have been done and performed, and the execution and delivery of this First Supplemental Indenture has been duly authorized in all respects; 

NOW THEREFORE, in consideration of the purchase and acceptance of the Notes by the holders thereof, and for the purpose of setting forth, as
provided in the Indenture, the form and substance of the Notes, and the terms, provisions and conditions thereof, the parties hereto hereby agree as follows: 

ARTICLE I 

DEFINITIONS AND ESTABLISHMENT 

SECTION 1.01 Definitions. 

Unless the context otherwise requires or unless otherwise set forth herein: 

(a) a term not defined herein that is defined in the Base Indenture, has the same meaning when used in this First Supplemental Indenture; 

  
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 (b) the definition of any term in this First Supplemental Indenture that is also defined in
the Base Indenture, shall for the purposes of this First Supplemental Indenture supersede the definition of such term in the Base Indenture; 

(c) a term defined anywhere in this First Supplemental Indenture has the same meaning throughout; 

(d) the definition of a term in this First Supplemental Indenture is not intended to have any effect on the meaning or definition of an
identical term that is defined in the Base Indenture insofar as the use or effect of such term in the Base Indenture, as previously defined, is concerned; 

(e) the singular includes the plural and vice versa; 

(f) headings are for convenience of reference only and do not affect interpretation; and 

(g) the following terms have the meanings given to them in this Section 1.01(g): 

“Base Indenture” has the meaning specified in the preamble hereto. 

“Depositary” has the meaning specified in Section 1.02(c). 

“First Supplemental Indenture” has the meaning specified in the preamble hereto. 

“holder of Notes,” or other similar term, means the Person or Persons in whose name or names a particular Note shall be
registered on the books of the Company kept for that purpose in accordance with the terms of the Indenture. 
 “Indenture”
has the meaning specified in the recitals hereto. 
 “Interest Payment Date” means May 15 and November 15 of each year,
beginning on November 15, 2020 
 “Interest Period” means the period beginning on and including the Original Issue Date and
ending on but excluding the first Interest Payment Date thereafter and each successive period beginning on and including an Interest Payment Date and ending on but excluding the next Interest Payment Date. 

“Original Issue Date” means May 15, 2020. 

“Redemption Date” means the date fixed for the redemption of the Notes by or pursuant to the Indenture. 

  
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 “Regular Record Date” means with respect to each Interest Payment
Date, the close of business on May 1 or November 1 (whether or not a Business Day), as the case may be, immediately preceding the relevant Interest Payment Date. 

“Stated Maturity” means May 15, 2030. 

“Trustee” has the meaning specified in the preamble hereto. 

SECTION 1.02 Establishment. 

(a) There is hereby established a new series of Securities to be issued under the Indenture, to be designated as the Company’s
“5.625% Senior Notes due 2030”. The Notes are unsecured obligations of the Company ranking equally in right of payment with the Company’s unsubordinated indebtedness outstanding from time to time and senior in right of payment to the
Company’s subordinated indebtedness outstanding from time to time. 
 (b) Upon execution of this First Supplemental Indenture, Notes in
an initial aggregate principal amount of $500,000,000 shall be executed by the Company and delivered to the Trustee, and the Trustee shall thereupon authenticate and deliver such Notes in accordance with a written order of the Company. No further
Notes shall be authenticated and delivered except as provided by Sections 2.04, 2.05, 2.07, 2.11, 3.04 or 9.04 of the Base Indenture; provided, however, that the aggregate principal amount of the Notes may be increased in the
future with no limit, without notice to or the consent of the holders of Notes, on the same terms and conditions and with the same CUSIP and ISIN numbers as the Notes, except for any difference, if applicable, in the issue price, the issue date, the
first Interest Payment Date and the initial interest accrual date as long as the additional Notes are fungible with the existing Notes for U.S. federal income tax purposes; provided that no Event of Default with respect to the Notes shall
have occurred and be continuing. Any additional Notes authenticated and delivered pursuant to this Section 1.02(b) shall be governed by this First Supplemental Indenture and shall rank equal in right of payment with the Notes issued on the date
of this First Supplemental Indenture and, together with the Notes issued as of the date of this First Supplemental Indenture, shall be treated as a single series of Notes for all purposes. 

(c) The Notes shall be issued in the form of one or more Global Securities, registered in the name of a nominee for the Depositary (as defined
below). Each Note and the Trustee’s or Authenticating Agent’s Certificate of Authentication thereof, shall be in substantially the form set forth in Exhibit A hereto. The depositary with respect to the Notes shall be The Depository
Trust Company (the “Depositary”). 
 (d) Each Note shall be dated the date of authentication thereof and shall bear interest
from, and including, the Original Issue Date or, if interest has already been paid, from the last date in respect of which interest has been paid or duly provided for to, but excluding, the Stated Maturity or any earlier Redemption Date. 

  
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 ARTICLE II 

TERMS AND CONDITIONS OF THE NOTES 

SECTION 2.01 Payment of Principal and Interest. 

(a) The principal of the Notes shall be due at the Stated Maturity. The unpaid principal amount of the Notes shall bear interest at the rate of
5.625% per year until paid or duly provided for. Interest shall be paid semi-annually in arrears on each Interest Payment Date, beginning on November 15, 2020, to the Person in whose name the Notes are registered on the Regular Record Date for
such Interest Payment Date; provided that interest payable at the Stated Maturity or on a Redemption Date that is not an Interest Payment Date will be payable to the Person to whom the principal will be payable. Interest payable on a
Redemption Date that is an Interest Payment Date will be payable to the registered holders of Notes on the relevant Regular Record Date. Except as otherwise specified in Section 2.04, any such interest that is not so punctually paid or duly
provided for will forthwith cease to be payable to the holders of Notes on such Regular Record Date and may be paid as provided in Section 2.03 of the Base Indenture. 

(b) Interest payments for this Note shall be computed on the basis of a 360-day year composed of twelve
30-day months. 
 (c) If any date on which interest is payable on the Notes is not a Business Day,
then payment of the interest payable on such date will be made on the next succeeding day that is a Business Day (and without any interest or other payment in respect of any such delay), except that, if such Business Day is in the next succeeding
calendar year, such payment shall be made on the immediately preceding Business Day, in each case with the same force and effect as if made on the date the payment was originally payable. 

(d) The Trustee is hereby designated as Security Registrar and Paying Agent for the Notes, and all payments of principal of and premium, if
any, and interest due on the Notes at the Stated Maturity or upon redemption will be made upon surrender of the Notes at the office of the Paying Agent in the Borough of Manhattan, The City of New York. 

(e) The principal of and premium, if any, and interest due on the Notes shall be paid in such coin or currency of the United States of America
as at the time of payment is legal tender for payment of public and private debts. Payments of interest (including interest on any Interest Payment Date) will be made, subject to such surrender where applicable and subject, in the case of a Global
Security, to the Trustee’s or Paying Agent’s arrangements with the Depositary, at the option of the Company, (i) by check mailed to the address of the Person entitled thereto as such address shall appear in the Security
Register, or (ii) by wire transfer at such place and to such account at a banking institution in the United States of America as may be designated in writing to the Trustee or the Paying Agent at least 15 days prior to the date for
payment by the Person entitled thereto. 

  
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 SECTION 2.02 Global Securities. 

(a) Except under the limited circumstances described below, Notes represented by Global Securities will not be exchangeable for, and will not
otherwise be issuable as, Notes in definitive form. The Global Securities described above may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or by the
Depositary or a nominee of the Depositary to a successor Depositary or a nominee of the successor Depositary. 
 (b) Except as otherwise
provided in this First Supplemental Indenture, owners of beneficial interests in such Global Securities will not be considered holders thereof for any purpose under the Indenture, and no Global Security representing a Note shall be exchangeable,
except for another Global Security of like denomination and to be registered in the name of the Depositary or its nominee or to a successor Depositary or its nominee. The rights of holders of such Global Securities shall be exercised only through
the Depositary. 
 (c) A Global Security shall be exchangeable in whole or, from time to time, in part for Notes in definitive registered
form only as provided in the Indenture. If (i) at any time the Depositary notifies the Company that it is unwilling or unable to continue as Depositary for the Notes or if at any time the Depositary shall no longer be registered or in
good standing as a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934, as amended, or other applicable statute or regulation, at such time as the Depositary is required to be
so registered and the Depositary so notifies the Company and, in each case, the Company does not appoint a successor Depositary within 90 days after the Company receives such notice or becomes aware of such condition, as the case may be, or
(ii) subject to the procedures of the Depositary, the Company in its sole discretion determines that the Notes shall be exchangeable for Notes in definitive registered form and executes and, in each case, delivers to the Trustee or an
Authenticating Agent an Officers’ Certificate evidencing the determination by the Company providing that the Notes shall be so exchangeable, the Notes shall be exchangeable for Notes in definitive registered form; provided that
the definitive Notes so issued in exchange for the Notes shall be in denominations of $2,000 and integral multiples of $1,000 in excess thereof, and be of like aggregate principal amount and tenor as the portion of the Notes to be exchanged. Except
as provided herein, owners of beneficial interests in the Notes will not be entitled to have Notes registered in their names, will not receive or be entitled to physical delivery of Notes in definitive registered form and will not be considered
holders thereof for any purpose under the 

  
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Indenture. Each of the Company, the Trustee, any Paying Agent and the Security Registrar shall not have any responsibility or liability for any aspect of the records relating to or payments made
on account of beneficial ownership interests in the Notes, or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests. Any Global Security that is exchangeable pursuant to this Section 2.02(c) shall
be exchangeable for Notes registered in such names as the Depositary shall direct. 
 SECTION 2.03 No Sinking Fund. 

The Notes shall not be entitled to any sinking fund or analogous requirement, and Sections 3.05, 3.06 and 3.07 of the Base Indenture shall not
apply to the Notes. 
 SECTION 2.04 Redemption at the Option of the Company. 

(a) The provisions of Sections 3.01, 3.02, 3.03 and 3.04 of the Base Indenture, as supplemented by the provisions of this First Supplemental
Indenture, shall apply to the Notes. 
 (b) At any time and from time to time prior to February 15, 2030 (the “Par Call
Date”), the Notes will be redeemable at the Company’s option, in whole or in part, at a Redemption Price equal to the greater of (i) 100% of the principal amount of the Notes to be redeemed and (ii) the “Make-Whole Redemption
Amount” (as defined below), plus accrued and unpaid interest on the Notes to be redeemed to, but excluding, the Redemption Date. 
 (c)
At any time and from time to time on or after the Par Call Date, the Notes will be redeemable at the Company’s option, in whole or in part, at a Redemption Price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued
and unpaid interest thereon to, but excluding, the Redemption Date. 
 “Make-Whole Redemption Amount” means the sum, as
calculated by the Company or by such Premium Calculation Agent as the Company may designate, of the present values of the remaining scheduled payments of principal of and interest on the Notes to be redeemed (not including any portion of those
payments of interest accrued as of any Redemption Date), as if they were redeemed on the Par Call Date, discounted from their scheduled payment dates to such Redemption Date on a semi-annual basis (assuming a
360-day year consisting of twelve 30-day months) at the Treasury Rate plus 50 basis points. The Trustee shall have no obligation to monitor or verify the calculation of
the Make-Whole Redemption Amount. 

  
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 For purposes of the preceding definition: 

(i) “Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal to the semi-annual equivalent yield
to maturity of the applicable Comparable Treasury Issue, calculated using a price for such Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the applicable Comparable Treasury Price for such Redemption Date. The
Treasury Rate will be calculated on the third Business Day preceding such Redemption Date. 
 (ii) “Premium Calculation
Agent” means an investment banking institution of national standing appointed by the Company. 
 (iii) “Comparable Treasury
Issue” means, with respect to any Redemption Date, the U.S. Treasury security or securities selected by the Premium Calculation Agent as having an actual or interpolated maturity (on a day-count
basis) comparable to the term remaining from such Redemption Date to the applicable Par Call Date (the “Remaining Life”) that would be utilized, at the time of selection and in accordance with customary financial practice, in
pricing new issues of corporate debt securities of comparable maturity to the Remaining Life. 
 (iv) “Comparable Treasury
Price” means, with respect to any Redemption Date, as determined by the Company (1) the average of five applicable Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest Reference Treasury
Dealer Quotations, or (2) if the Company obtains fewer than five such Reference Treasury Dealer Quotations, the average of all such quotations. 

(v) “Reference Treasury Dealers” means each of (1) Wells Fargo Securities, LLC, Barclays Capital Inc., BofA Securities,
Inc., J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC, and their respective successors; provided, however, that if any of the foregoing shall cease to be a primary U.S. government securities dealer in the United States
(a “Primary Treasury Dealer”), the Company will substitute therefor another Primary Treasury Dealer, and (2) any other Primary Treasury Dealers selected by the Company. 

(vi) “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date,
the average, as determined by the Company, of the bid and ask prices for the applicable Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Company by such Reference Treasury Dealer at
3:30 p.m., New York City time, on the third Business Day preceding such Redemption Date. 
 (d) Notwithstanding Section 3.03 of the Base
Indenture, the notice of redemption with respect to any redemption pursuant to Article III of the Base Indenture (1) need not set forth the Redemption Price but only the manner of calculation thereof as described above and (2) may be
subject to one or more conditions precedent. If the redemption is subject to satisfaction of one or more conditions precedent, the notice of redemption will describe the conditions and, if applicable, state that the Redemption Date may be delayed
until the conditions are satisfied or that, if the conditions are not satisfied, such redemption may not occur and the notice of redemption may be rescinded. 

  
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 (e) If the Company is redeeming less than all the Notes, the Trustee shall select the Notes
to be redeemed pro rata, by lot or any other such method as the Trustee deems fair and appropriate in accordance with the customary procedures of the Depositary. Such Notes may be selected in amounts of $2,000 and integral multiples of $1,000 in
excess thereof (provided that the unredeemed portion of any Note to be redeemed in part will not be less than $2,000), and the Trustee shall thereafter promptly notify the Company in writing of the numbers of Notes to be redeemed, in whole or in
part; provided that, if the Notes are represented by one or more Global Securities, interests in such Global Securities shall be selected for redemption by the Depositary in accordance with its standard procedures therefor. 

SECTION 2.05 Defeasance. 

The Notes shall be defeasible pursuant to both Sections 13.02 and 13.03 of the Base Indenture, and the provisions of Article XIII of the Base
Indenture shall apply to the Notes. 
 ARTICLE III 

MISCELLANEOUS PROVISIONS 

SECTION 3.01 Effectiveness. 

This First Supplemental Indenture will become effective upon its execution and delivery. 

SECTION 3.02 Notes Unaffected by Other Supplemental Indentures. 

To the extent the terms of the Base Indenture are amended as provided herein, no such amendment shall in any way affect the terms of any other
supplemental indenture or any other series of Securities. This First Supplemental Indenture shall relate and apply solely to the Notes. 

SECTION 3.03 Trustee Not Responsible for Recitals. 

The recitals herein contained are made by the Company and not by the Trustee or the Agents, and neither the Trustee nor the Agents assume any
responsibility for the correctness thereof. Neither the Trustee nor the Agents make any representation as to the validity or sufficiency of this First Supplemental Indenture or the Notes. 

  
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 SECTION 3.04 Ratification and Incorporation of Base Indenture. 

As supplemented hereby, the Base Indenture is in all respects ratified and confirmed, and the Base Indenture and this First Supplemental
Indenture shall be read, taken and construed as one and the same instrument. 
 SECTION 3.05 Governing Law. 

THIS FIRST SUPPLEMENTAL INDENTURE SHALL BE DEEMED TO BE A CONTRACT MADE UNDER THE INTERNAL LAWS OF THE STATE OF NEW YORK, AND FOR ALL PURPOSES
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 
 SECTION 3.06 Separability. 

In case any one or more of the provisions contained in this First Supplemental Indenture or in the Notes shall for any reason be held to be
invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this First Supplemental Indenture or of the Notes, but this First Supplemental Indenture and the Notes shall
be construed as if such invalid or illegal or unenforceable provision had never been contained herein or therein. 
 SECTION 3.07
Executed in Counterparts. 
 This First Supplemental Indenture may be executed in any number of counterparts, each of which shall be
an original; but such counterparts shall together constitute but one and the same instrument. The words “execution,” “signed,” “signature,” and words of like import in this Indenture shall include images of manually
executed signatures transmitted by facsimile, email or other electronic format (including, without limitation, “pdf,” “tif” or “jpg”) and other electronic signatures (including without limitation, DocuSign and AdobeSign
or any other similar platform identified by the Company and reasonably available at no undue burden or expense to the Trustee). The use of electronic signatures and electronic records (including, without limitation, any contract or other record
created, generated, sent, communicated, received, or stored by electronic means) shall be of the same legal effect, validity and enforceability as a manually executed signature or use of a paper-based record-keeping system to the fullest extent
permitted by applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act and any other applicable law, including, without limitation, any state law based
on the Uniform Electronic Transactions Act or the Uniform Commercial Code. Without limitation to the foregoing, and anything in the Indenture to the contrary notwithstanding, (a) any Officers’ Certificate, company order, Opinion of
Counsel, Note, certificate of authentication appearing on or attached to any Note, supplemental indenture or other 

  
 9 

 
certificate, opinion of counsel, instrument, agreement or other document delivered pursuant to this Indenture may be executed, attested and transmitted by any of the foregoing electronic means
and formats and (b) all references in Section 2.04 of the Base Indenture or elsewhere in this Indenture to the execution, attestation or authentication of any Note or any certificate of authentication appearing on or attached to any Note
by means of a manual or facsimile signature shall be deemed to include signatures that are made or transmitted by any of the foregoing electronic means or formats. The Trustee shall have no duty to inquire into or investigate the authenticity or
authorization of any such electronic signature and shall be entitled to conclusively rely on any such electronic signature without any liability with respect thereto. 

  
 10 

 IN WITNESS WHEREOF, the parties hereto have caused this First Supplemental Indenture to be
duly executed by their respective officers thereunto duly authorized, all as of the day and year first above written. 
  

			
	BRIGHTHOUSE FINANCIAL, INC.
		
	By:	 	 /s/ Janet Morgan

		 	Name: Janet Morgan
		 	Title: Treasurer
	
	U.S. BANK NATIONAL ASSOCIATION, not in its individual capacity but solely in its capacity as Trustee
		
	By:	 	 /s/ Ryan Riggleman

		 	Name: Ryan Riggleman
		 	Title: AVP

 [Brighthouse Financial, Inc. Senior Notes due 2030 — First Supplemental Indenture] 

 Exhibit A 

Form of Senior Note 
 (FORM
OF 5.625% SENIOR NOTES DUE 2030) 
 THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE BASE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A NOMINEE OF THE DEPOSITORY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (“DTC”), A NEW YORK CORPORATION, TO BRIGHTHOUSE FINANCIAL, INC. OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO.
OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN. 
 EXCEPT AS OTHERWISE PROVIDED IN SECTION 2.02 OF THE FIRST SUPPLEMENTAL INDENTURE, THIS NOTE MAY BE TRANSFERRED IN WHOLE,
BUT NOT IN PART, ONLY TO DTC, TO ANOTHER NOMINEE OF DTC OR TO A SUCCESSOR DEPOSITARY OR TO A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. 
  

					
	No. 2030-[●]	  		  	Principal Amount: [●]
	Issue Date: [●]	  		  	CUSIP No.: 10922NAG8
		  		  	ISIN No.: US10922NAG88

 BRIGHTHOUSE FINANCIAL, INC. 

Global Certificate initially representing 

$[●] aggregate principal amount of 

5.625% Senior Notes due 2030 
  

			
	Regular Record Date:	  	With respect to each Interest Payment Date, the close of business on May 1 or November 1 (whether or not a Business Day), as the case may be, immediately preceding the relevant Interest Payment Date.
		
	Original Issue Date:	  	May 15, 2020
		
	Stated Maturity:	  	May 15, 2030

  
 A-1 

			
	Interest Payment Dates:	  	May 15 and November 15 of each year, beginning on November 15, 2020
		
	Interest Rate:	  	5.625% per year
		
	Authorized Denomination:	  	$2,000 and integral multiples of $1,000 in excess thereof

 This Global Certificate is in respect of a duly authorized issue of 5.625% Senior Notes due 2030 (the
“Notes”) of Brighthouse Financial, Inc., a Delaware corporation (the “Company,” which term includes any successor corporation under the Indenture referred to on the reverse hereof). The principal of the Notes
shall be due at the Stated Maturity. The unpaid principal amount of the Notes shall bear interest at the rate of 5.625% per year until paid or duly provided for. The Company, for value received, hereby promises to pay to Cede & Co., or
registered assigns, the amount of principal of the Notes represented by this Global Certificate on the Stated Maturity, and to pay interest thereon from, and including, the Original Issue Date or, if interest has already been paid, from the last
date in respect of which interest has been paid or duly provided for to, but excluding, the Stated Maturity or any earlier Redemption Date. Interest shall be paid semi-annually in arrears on each Interest Payment Date, beginning on November 15,
2020, to the Person in whose name this Note is registered on the Regular Record Date for such Interest Payment Date; provided that interest payable at the Stated Maturity or on a Redemption Date that is not an Interest Payment Date
will be payable to the Person to whom the principal will be payable. Interest payable on a Redemption Date that is an Interest Payment Date will be payable to the registered holders of Notes on the relevant Regular Record Date. Any such interest
that is not so punctually paid or duly provided for will forthwith cease to be payable to the holders on such Regular Record Date and may be paid as provided in Section 2.03 of the Base Indenture. 

Interest payments for this Note shall be computed on the basis of a 360-day year composed of twelve 30-day months. 
 If any date on which interest is payable on this Note is not a Business Day, then
payment of the interest payable on such date will be made on the next succeeding day that is a Business Day (and without any interest or other payment in respect of any such delay), except that, if such Business Day is in the next succeeding
calendar year, such payment shall be made on the immediately preceding Business Day, in each case with the same force and effect as if made on the date the payment was originally payable. 

Payment of the principal of, and premium, if any, and interest due on this Note at the Stated Maturity or upon redemption will be made upon
surrender of this Note at the office of the Paying Agent in the Borough of Manhattan, The City of New York. The principal of, and premium, if any, and interest due on this Note shall be paid in such coin or currency of the United States of America
as at the time of payment is legal tender for 

  
 A-2 

 
payment of public and private debts. Payments of interest (including interest on any Interest Payment Date) will be made, subject to such surrender where applicable and subject to the
Trustee’s or Paying Agent’s arrangements with the Depositary, at the option of the Company, (i) by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register, or
(ii) by wire transfer at such place and to such account at a banking institution in the United States of America as may be designated in writing to the Trustee or the Paying Agent at least 15 days prior to the date for payment by the
Person entitled thereto. 
 This Note is an unsecured obligation of the Company ranking equally in right of payment with the Company’s
unsubordinated indebtedness outstanding from time to time and senior in right of payment to the Company’s subordinated indebtedness outstanding from time to time. 

REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL
PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE. 
 Unless the certificate of authentication hereon has been executed by the
Trustee or an Authenticating Agent by manual signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

  
 A-3 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 

Dated: 
  

			
	BRIGHTHOUSE FINANCIAL, INC.
		
	By:	 	
                     
    

		 	Name:
		 	Title:

  
 A-4 

 CERTIFICATE OF AUTHENTICATION 

This is one of the Securities referred to in the within mentioned Indenture. 

 

			
	U.S. BANK NATIONAL ASSOCIATION,
	as Trustee
		
	By:	 	              

		 	Authorized Signatory

 Dated: 

  
 A-5 

 (Reverse of Note) 

5.625% Senior Notes due 2030 

This Note is one of a duly authorized issue of senior debt securities of the Company (the “Securities”) issued and issuable
in one or more series under a Senior Indenture, dated as of May 15, 2020 (the “Base Indenture”), as supplemented by the First Supplemental Indenture, dated as of May 15, 2020 (the “First Supplemental
Indenture” and, together with the Base Indenture, the “Indenture”), between the Company and U.S. Bank National Association, as trustee (the “Trustee”), to which the Indenture and all indentures supplemental
thereto reference is hereby made for a statement of the respective rights, privileges, benefits (including the right to be indemnified), limitations of rights, duties and immunities thereunder of the Company, the Trustee and the holders of the Notes
issued thereunder and of the terms upon which said Notes are, and are to be, authenticated and delivered. This Note is one of the series designated on the face hereof as the 5.625% Senior Notes due 2030. Capitalized terms used herein for which no
definition is provided herein shall have the meanings set forth in the Indenture. 
 1. Except under the limited circumstances described in
the First Supplemental Indenture, this Note will not be exchangeable for, and will not otherwise be issuable as, Notes in definitive form. This Note may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a
nominee of the Depositary to the Depositary or by the Depositary or a nominee of the Depositary to a successor Depositary or a nominee of the successor Depositary. Except as otherwise provided in the First Supplemental Indenture, owners of
beneficial interests in this Note will not be considered holders hereof for any purpose under the Indenture, and this Note shall not be exchangeable, except for another Global Security of like denomination and to be registered in the name of the
Depositary or its nominee or to a successor Depositary or its nominee. The rights of holders of such Global Securities shall be exercised only through the Depositary. This Note is exchangeable in whole or, from time to time, in part for Notes in
definitive registered form only as provided herein or in the Indenture. If (i) at any time the Depositary notifies the Company that it is unwilling or unable to continue as Depositary for this Note or if at any time the Depositary shall
no longer be registered or in good standing as a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934, as amended, or other applicable statute or regulation, at such time as the
Depositary is required to be so registered and the Depositary so notifies the Company and, in each case, the Company does not appoint a successor Depositary within 90 days after the Company receives such notice or becomes aware of such condition, as
the case may be, or (ii) subject to the procedures of the Depositary, the Company in its sole discretion determines that this Note shall be exchangeable for Notes in definitive registered form and executes and, in each case, delivers to
the Trustee or an Authenticating Agent an Officers’ Certificate evidencing the determination by the Company providing that this Note shall be so exchangeable, this 

  
 A-6 

 
Note shall be exchangeable for Notes in definitive registered form; provided that the definitive Notes so issued in exchange for this Note shall be in denominations of $2,000 and
integral multiples of $1,000 in excess thereof, and be of like aggregate principal amount and tenor as the portion of this Note to be exchanged. Except as provided herein or in the First Supplemental Indenture, owners of beneficial interests in this
Note will not be entitled to have Notes registered in their names, will not receive or be entitled to physical delivery of Notes in definitive registered form and will not be considered holders thereof for any purpose under the Indenture. Each of
the Company, the Trustee, any Paying Agent and the Security Registrar shall not have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests in this Note or for
maintaining, supervising or reviewing any records relating to such beneficial ownership interests. If this Note is exchangeable pursuant to Section 2.02(c) of the First Supplemental Indenture, this Note shall be exchangeable for Notes
registered in such names as the Depositary shall direct. 
 2. If an Event of Default with respect to the Notes shall occur and be
continuing, the principal of the Notes may be declared due and payable in the manner, with the effect and subject to the conditions provided in the Indenture. 

3. The Indenture permits, with certain exceptions as therein provided, the Company and the Trustee from time to time and at any time to enter
into an indenture or indentures supplemental thereto (which shall conform to the provisions of the Trust Indenture Act as then in effect) with the consent (evidenced as provided in Section 8.01 of the Base Indenture) of the holders of not less
than a majority in aggregate principal amount of the Securities of each series affected by such supplemental indenture or indentures at the time Outstanding for the purpose of adding any provisions to or changing in any manner or eliminating any of
the provisions of the Indenture or of modifying in any manner not covered by Section 9.01 of the Base Indenture the rights of the holders of the Securities of such series. The Indenture also contains provisions permitting the holders of not
less than a majority in aggregate principal amount of the Outstanding Securities of any series to waive compliance with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or
waiver by the holder of this Note shall be conclusive and binding upon such holder and upon all future holders and owners of this Note and of any Note issued in exchange herefor, on registration of transfer hereof or place hereof, irrespective of
whether or not any notation of such consent or waiver is made upon this Note. 
 4. This Note shall be defeasible pursuant to both Sections
13.02 and 13.03 of the Base Indenture, and the provisions of Article XIII of the Base Indenture shall apply to this Note. 
 5. (a) At any
time and from time to time prior to February 15, 2030 (the “Par Call Date”), this Note will be redeemable at the Company’s option, in whole or in part, at a Redemption Price equal to the greater of (i) 100% of the
principal amount to be redeemed and (ii) the “Make-Whole Redemption Amount” (as defined below), plus accrued and unpaid interest to, but excluding, the Redemption Date. 

  
 A-7 

 (b) At any time and from time to time on or after the Par Call Date, this Note will be
redeemable at the Company’s option, in whole or in part, at a Redemption Price equal to 100% of the principal amount to be redeemed, plus accrued and unpaid interest thereon to, but excluding, the Redemption Date. 

“Make-Whole Redemption Amount” means the sum, as calculated by the Company or by such Premium Calculation Agent as the
Company may designate, of the present values of the remaining scheduled payments of principal of and interest on the Notes to be redeemed (not including any portion of those payments of interest accrued as of any Redemption Date), as if they were
redeemed on the Par Call Date, discounted from their scheduled payment dates to such Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve
30-day months) at the Treasury Rate plus 50 basis points. The Trustee shall have no obligation to monitor or verify the calculation of the Make-Whole Redemption Amount. 

For purposes of the preceding definition: 

(i) “Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal to the semi-annual equivalent yield
to maturity of the applicable Comparable Treasury Issue, calculated using a price for such Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the applicable Comparable Treasury Price for such Redemption Date. The
Treasury Rate will be calculated on the third Business Day preceding such Redemption Date. 
 (ii) “Premium Calculation
Agent” means an investment banking institution of national standing appointed by the Company. 
 (iii) “Comparable Treasury
Issue” means, with respect to any Redemption Date, the U.S. Treasury security or securities selected by the Premium Calculation Agent as having an actual or interpolated maturity (on a day-count
basis) comparable to the term remaining from such Redemption Date to the applicable Par Call Date (the “Remaining Life”) that would be utilized, at the time of selection and in accordance with customary financial practice, in
pricing new issues of corporate debt securities of comparable maturity to the Remaining Life. 
 (iv) “Comparable Treasury
Price” means, with respect to any Redemption Date, as determined by the Company (1) the average of five applicable Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest Reference Treasury
Dealer Quotations, or (2) if the Company obtains fewer than five such Reference Treasury Dealer Quotations, the average of all such quotations. 

  
 A-8 

 (v) “Reference Treasury Dealers” means each of (1) Wells Fargo
Securities, LLC, Barclays Capital Inc., BofA Securities, Inc., J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC, and their respective successors; provided, however, that if any of the foregoing shall cease to be a
primary U.S. government securities dealer in the United States (a “Primary Treasury Dealer”), the Company will substitute therefor another Primary Treasury Dealer, and (2) any other Primary Treasury Dealers selected by the
Company. 
 (vi) “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any
Redemption Date, the average, as determined by the Company, of the bid and ask prices for the applicable Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Company by such Reference
Treasury Dealer at 3:30 p.m., New York City time, on the third Business Day preceding such Redemption Date. 
 6. Notwithstanding
Section 3.03 of the Base Indenture, the notice of redemption with respect to any redemption pursuant to Article III of the Base Indenture (1) need not set forth the Redemption Price but only the manner of calculation thereof and
(2) may be subject to one or more conditions precedent. If the redemption is subject to satisfaction of one or more conditions precedent, the notice of redemption will describe the conditions and, if applicable, state that the Redemption Date
may be delayed until the conditions are satisfied or that, if the conditions are not satisfied, such redemption may not occur and the notice of redemption may be rescinded. 

7. If, as a result of any change in, or amendment to, the laws of a Relevant Taxing Jurisdiction or the official interpretation thereof that is
announced or becomes effective on or after the date a Relevant Taxing Jurisdiction becomes a Relevant Taxing Jurisdiction (other than any such change or amendment that is announced before such Relevant Taxing Jurisdiction becomes a Relevant Taxing
Jurisdiction), the Company becomes or, based upon an Opinion of Counsel by independent counsel selected by the Company, will become obligated to pay Additional Amounts (as defined below) with respect to the Notes, then the Company may at any time at
its option redeem, in whole, but not in part, the Notes on not less than 30 nor more than 60 days’ prior notice, at a Redemption Price equal to 100% of their principal amount, plus accrued and unpaid interest on the Notes to, but excluding, the
Redemption Date. 
 8. The Company shall, subject to the exceptions and limitations set forth below, pay as additional interest on this Note
such additional amounts as are necessary in order that the net payment by the Company or the Paying Agent of the principal of and interest on this Note after withholding or deduction solely with respect to any present or future tax, assessment or
other governmental charge (collectively, “Taxes”) imposed by or on behalf of any jurisdiction other than the United States in which the Company or any successor in accordance with the provisions of Article X of the Base Indenture
hereof is incorporated, organized or otherwise tax resident or any political subdivision or any authority thereof or therein having power to tax (each, a “Relevant Taxing Jurisdiction”), will not be less than the amount provided in
this Note to be then due and payable (“Additional Amounts”); provided, however, that the foregoing obligation to pay Additional Amounts shall not apply to: 

(a) any Taxes which would not have been so imposed, withheld or deducted but for: 

(1) the existence of any present or former connection between such holder of Notes or beneficial owner (or between a fiduciary,
settlor, beneficiary, member or shareholder or other equity owner of, or a person having a power over, such holder of Notes or beneficial owner, if such holder of Notes or beneficial owner is an estate, a trust, a limited liability company, a
partnership, a corporation or other entity) and the Relevant Taxing Jurisdiction, including, without limitation, such holder of Notes or beneficial owner (or such fiduciary, settlor, beneficiary, member, shareholder or other equity owner or person
having such a power) being or having been a citizen or resident or treated as a resident of the Relevant Taxing Jurisdiction or being or having been engaged in a trade or business in the Relevant Taxing Jurisdiction or being or having been present
in the Relevant Taxing Jurisdiction or having or having had a permanent establishment in the Relevant Taxing Jurisdiction; or 

  
 A-9 

 (2) the failure of such holder of Notes or beneficial owner to comply with
any applicable certification, information, documentation or other reporting requirement concerning the nationality, residence, identity or connection with the Relevant Taxing Jurisdiction of such holder of Notes or beneficial owner or otherwise to
establish entitlement to a partial or complete exemption from such Taxes (including, without limitation, any documentation requirement under an applicable income tax treaty); 

(b) any Taxes which would not have been so imposed, withheld or deducted but for the presentation by the holder of Notes or beneficial owner of
such Note for payment on a date more than 10 days after the date on which such payment became due and payable or the date on which payment of the Note is duly provided for and notice is given to holders of Notes, whichever occurs later, except to
the extent that the holder of Notes or beneficial owner would have been entitled to such Additional Amounts on presenting such Note on any date during such 10-day period; 

(c) any estate, inheritance, gift, sales, transfer, personal property, excise, wealth or similar Taxes; 

(d) any Taxes which are payable otherwise than by withholding from any payment of principal of or interest on this Note; 

  
 A-10 

 (e) any Taxes which are payable by a holder of Notes that is not the beneficial owner of
this Note, or a portion of the Note, or that is a fiduciary, partnership, limited liability company or other similar entity, but only to the extent that a beneficial owner, a beneficiary or settlor with respect to such fiduciary or member of such
partnership, limited liability company or similar entity would not have been entitled to the payment of an Additional Amount had such beneficial owner, settlor, beneficiary or member received directly its beneficial or distributive share of the
payment; 
 (f) any Taxes required to be withheld by any Paying Agent from any payment of principal or interest on this Note, if such payment
can be made without such withholding by any other Paying Agent; 
 (g) any Taxes that would not have been imposed, withheld or deducted but
for a change in any law, treaty, regulation, or administrative or judicial interpretation that becomes effective after the applicable payment becomes due or is duly provided for, whichever occurs later, to the extent such change in law, treaty,
regulation or administrative interpretation would apply retroactively to such payment; 
 (h) any Taxes imposed, withheld or deducted under
Sections 1471 through 1474 of the Internal Revenue Code of 1986, as amended, (or any amended or successor provisions that are substantively comparable) and any current or future regulations or official interpretations thereof
(“FATCA”), any agreement (including any intergovernmental agreement) entered into in connection therewith, or any law, regulation or other official guidance enacted in any jurisdiction implementing FATCA or an intergovernmental
agreement in respect of FATCA; or 
 (i) any combination of items (a), (b), (c), (d), (e), (f), (g) and (h). 

For purposes of this Section, the acquisition, ownership, enforcement or holding of or the receipt of any payment with respect to this Note
will not constitute a connection (1) between the holder of Notes or beneficial owner and the Relevant Taxing Jurisdiction or (2) between a fiduciary, settlor, beneficiary, member or shareholder or other equity owner of, or a person having
a power over, such holder or beneficial owner if such holder or beneficial owner is an estate, a trust, a limited liability company, a partnership, a corporation or other entity and the Relevant Taxing Jurisdiction. 

Any reference in this Note to principal or interest shall be deemed to refer also to Additional Amounts which may be payable under the
provisions of this Section 8. 
 Except as specifically provided in this Note, the Company shall not be required to make any payment
with respect to any tax, duty, assessment or other governmental charge imposed by any government or any political subdivision or taxing authority of or in any government or political subdivision. 

  
 A-11 

 If the Company becomes aware that it will be obligated to pay Additional Amounts with
respect to any payment under or with respect to this Note, the Company shall deliver to the Trustee on a date that is at least 30 days prior to the date of such payment (unless the obligation to pay Additional Amounts arises after the 30th day prior
to such payment date, in which case the Company shall notify the Trustee promptly thereafter) an Officers’ Certificate to the effect that Additional Amounts will be payable and the amount estimated to be so payable. 

9. The Notes are issuable in fully registered form, without coupons, and in denominations of $2,000 and integral multiples of $1,000 in excess
thereof. 
 10. The Notes are not entitled to any sinking fund or analogous requirement. 

11. No recourse under or upon any obligation, covenant or agreement of the Indenture, or of this Note, or for any claim based hereon or thereon
or otherwise in respect hereof or thereof, shall be had against any incorporator, stockholder, officer or director, past, present or future, as such, of the Company or of any predecessor or successor corporation, either directly or through the
Company or any such predecessor or successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly understood that the Indenture and are solely
corporate obligations, and that no such personal liability whatsoever shall attach to, or is or shall be incurred by, the incorporators, stockholders, officers or directors as such, of the Company or of any predecessor or successor corporation, or
any of them, because of the creation of this Note or under or by reason of the obligations, covenants or agreements contained in the Indenture or this Note or implied therefrom, and that any and all such personal liability of every name and nature,
either at common law or in equity or by constitution or statute, of, and any and all such rights and claims against, every such incorporator, stockholder, officer or director as such, because of the creation of this Note, or under or by reason of
the obligations, covenants or agreements contained in the Indenture or this Note or implied therefrom, are hereby expressly waived and released as a condition of, and as consideration for, the execution of the Indenture and the issuance of this
Note. 
 12. THIS NOTE SHALL BE DEEMED TO BE A CONTRACT MADE UNDER THE INTERNAL LAWS OF THE STATE OF NEW YORK, AND FOR ALL PURPOSES SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH LAWS OF THE STATE OF NEW YORK. 
 13. In the event of a conflict between the terms of this Note
and the terms of the Indenture, the terms of the Indenture shall control. 

  
 A-12Exhibit 10.1

 

Execution
Version

 

INVESTMENT
ADVISORY AGREEMENT

 

This Investment Advisory
Agreement (this “Agreement”) is made as of January 14, 2020, by and between Palmer Square Capital BDC Inc.,
a Maryland corporation (the “Company”), and Palmer Square BDC Advisor LLC, a Delaware limited liability company
(the “Adviser”).

 

WHEREAS, the Company
is a closed-end management investment company that intends to elect to be regulated as a business development company (“BDC”)
under the Investment Company Act of 1940, as amended (together with the rules promulgated thereunder, the “1940 Act”);

 

WHEREAS, the Adviser
is registered as an investment adviser under the Investment Advisers Act of 1940, as amended (together with the rules promulgated
thereunder, the “Advisers Act”);

 

WHEREAS, the Company
desires to retain the Adviser to provide investment advisory services to the Company on the terms and conditions hereinafter set
forth; and

 

WHEREAS, the Adviser
is willing to provide investment advisory services to the Company on the terms and conditions hereinafter set forth.

 

NOW, THEREFORE, in
consideration of the premises and the covenants hereinafter contained and for other good and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, the Company and the Adviser hereby agree as follows:

 

Section 1. Duties
of the Adviser.

 

(a) Retention
of Adviser. The Company hereby appoints the Adviser to act as the investment adviser to the Company and to manage the investment
and reinvestment of the assets of the Company, subject to the supervision of the Board of Directors of the Company (the “Board
of Directors”), for the period and upon the terms herein set forth and in accordance with:

 

(i) the
investment objective, policies and restrictions that are set forth in the Company’s Registration Statement on Form 10 or
Form N-2 filed with the U.S. Securities and Exchange Commission (the “SEC”), as supplemented, amended or superseded
from time to time, including in the periodic reports filed by the Company under the Securities Exchange Act of 1934, as amended
(together with the rules promulgated thereunder, the “Exchange Act”);

 

(ii) the
1940 Act, the Advisers Act, and all other applicable federal and state laws;

 

(iii) the
Company’s articles of incorporation and bylaws, as amended from time to time; and

 

(iv) such
investment policies, directives, and restrictions as the Company may from time to time establish or issue and communicate to the
Adviser in writing.

 

     

     

    

 

(b) Responsibilities
of Adviser. Without limiting the generality of the foregoing, the Adviser shall, during the term and subject to the provisions
of this Agreement:

 

(i) determine
the composition and allocation of the Company’s investment portfolio, the nature and timing of any changes therein and the
manner of implementing such changes;

 

(ii) identify,
evaluate and negotiate the structure of the investments made by the Company;

 

(iii) perform
due diligence on prospective portfolio companies;

 

(iv) execute,
close, service and monitor the Company’s investments;

 

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

 

(vi) arrange
financings and borrowing facilities for the Company; and

 

(vii) provide
the Company with such other investment advisory, research and related services as the Company may, from time to time, reasonably
require for the investment of its funds.

 

(c) Power
and Authority. To facilitate the Adviser’s performance of these undertakings, but subject to the restrictions contained
herein, the Company hereby delegates to the Adviser, and the Adviser hereby accepts, the power and authority to act on behalf of
the Company to effectuate investment decisions for the Company, including the negotiation, execution and delivery of all documents
relating to the Company’s investments and the placing of orders for other purchase or sale transactions on behalf of the
Company. In the event that the Company determines to acquire debt or other financing (or to refinance existing debt or other financing),
the Adviser shall use commercially reasonable efforts to arrange for such financing on the Company’s behalf, subject to the
oversight and approval of the Board of Directors. If it is necessary for the Adviser to make investments or obtain financing on
behalf of the Company through a special purpose vehicle, the Adviser shall have the authority to create, or arrange for the creation
of, such special purpose vehicle and to make investments or obtain financing through such special purpose vehicle in accordance
with applicable law. The Company also grants to the Adviser the power and authority to engage in all activities and transactions
(and anything incidental thereto) that the Adviser deems, in its sole discretion, appropriate, necessary or advisable to carry
out its duties pursuant to this Agreement.

 

(d) Acceptance
of Appointment. The Adviser hereby accepts such appointment and agrees during the term hereof to render the services described
herein for the compensation provided herein, subject to the limitations contained herein.

 

(e) Sub-Advisers.
Subject to the requirements of the 1940 Act, the Adviser is hereby authorized, but not required, to enter into one or more sub-advisory
agreements with other investment advisers (each, a “Sub-Adviser”) pursuant to which the Adviser may obtain the
services of the Sub-Adviser(s) to assist the Adviser in fulfilling its responsibilities hereunder. Specifically, the Adviser may
retain a Sub-Adviser to recommend specific securities or other investments based upon the Company’s investment objective
and policies, and work, along with the Adviser, in structuring, negotiating, arranging or effecting the acquisition, retention
or disposition of such investments and monitoring investments on behalf of the Company, subject in all cases to the oversight of
the Adviser and the Company. The Adviser, and not the Company, shall be responsible for any compensation payable to any Sub-Adviser.
Any sub-advisory agreement entered into by the Adviser shall be in accordance with the requirements of the 1940 Act, the Advisers
Act and other applicable federal and state law.

 

    - 2 -

     

    

 

(f) Independent
Contractor Status. The Adviser shall, for all purposes herein provided, be deemed to be an independent contractor and, except
as expressly provided or authorized herein, shall have no authority to act for or represent the Company in any way or otherwise
be deemed an agent of the Company.

 

(g) Record
Retention. Subject to review by and the overall control of the Board of Directors, the Adviser shall maintain and keep all
books, accounts and other records of the Adviser that relate to activities performed by the Adviser hereunder as required under
the 1940 Act and the Advisers Act, shall specifically maintain all books and records with respect to the Company’s portfolio
transactions, and shall render to the Board of Directors such periodic and special reports as the Board of Directors may reasonably
request. The Adviser agrees that all records that it maintains and keeps for the Company shall at all times remain the property
of the Company, shall be readily accessible during normal business hours, and shall be promptly surrendered to the Company upon
the termination of this Agreement or otherwise on written request by the Company, provided that the Adviser may retain copies of
such records.

 

Section 2. Expenses
Payable by the Company.

 

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

 

(b) Company’s
Costs. Subject to the limitations on expense reimbursement of the Adviser as set forth in Sections 2(a) and (c), the Company,
either directly or through reimbursement to the Adviser, shall bear all costs and expenses of its investment operations and its
investment transactions, including costs and expenses relating to:

 

		(i)	initial organization costs incurred prior to the commencement of the Company’s operations;

 

		(ii)	operating costs incurred prior to the commencement of the Company’s operations;

 

		(iii)	costs of calculating the Company’s net asset value, including the cost and expenses of any
independent valuation firm;

 

		(iv)	fees and expenses payable to third parties relating to making investments, including the Adviser’s
or its affiliates’ travel expenses, research costs and out-of-pocket fees and expenses associated with performing due diligence
and reviews of prospective investments;

 

    - 3 -

     

    

 

		(v)	interest expense and other costs associated with the Company’s indebtedness;

 

		(vi)	transfer agent and custodial fees;

 

		(vii)	out-of-pocket fees and expenses associated with marketing efforts;

 

		(viii)	federal and state registration fees and any stock exchange listing fees;

 

		(ix)	U.S. federal, state and local taxes;

 

		(x)	the fees and expenses of each member of the Board of Directors who is not an “interested
person” the Company and the Adviser (such members of the Board of Directors are collectively referred to herein as the “Independent
Directors”);

 

		(xi)	brokerage commissions and markups;

 

		(xii)	fidelity bond, directors’ and officers’ liability insurance and other insurance premiums;

 

		(xiii)	direct costs, such as printing, mailing, long distance telephone and staff;

 

		(xiv)	fees and expenses associated with independent audits and outside legal costs;

 

		(xv)	costs associated with the Company’s reporting and compliance obligations under the Exchange
Act, the 1940 Act and other applicable U.S. federal and state securities laws; and

 

		(xvi)	all other expenses incurred by the Adviser in its capacity as the administrator or the Company
in connection with administering the Company’s business, including payments under the administration agreement (the “Administration
Agreement”) that will be based upon the Company’s allocable portion (subject to the review and approval of the
Board) of overhead, including rent and the allocable portion of the cost of the Corporation’s chief compliance officer and
chief financial officer and their respective staffs.

 

To the extent that
expenses borne by the Company are paid by the Adviser, or its affiliates, the Company will reimburse the Adviser for such expenses.

 

    - 4 -

     

    

 

(c) Portfolio
Company’s Compensation. In certain circumstances the Adviser or any of its respective affiliates may receive compensation
from a portfolio company, in connection with the Company’s investment in such portfolio company. Any compensation received
by the Adviser or any of its affiliates attributable to the Company’s investment in any portfolio company, in excess of any
of the limitations in or exemptions granted from the 1940 Act, any interpretation thereof by the staff of the SEC, or the conditions
set forth in any exemptive relief granted to the Adviser or the Company by the SEC, shall be delivered promptly to the Company
and the Company will retain such excess compensation for the benefit of its shareholders.

 

Section 3. Compensation
of the Adviser.

 

The Company agrees
to pay, and the Adviser agrees to accept, as compensation for the services provided by the Adviser hereunder, a base management
fee (“Base Management Fee”) and an incentive fee (“Incentive Fee”) as hereinafter set forth.
Any of the fees payable to the Adviser under this Agreement for any partial calendar quarter shall be appropriately prorated based
on the actual number of days elapsed during such partial quarter as a fraction of the number of days in the relevant calendar year.
The Corporation shall make any payments due hereunder to the Adviser or to the Adviser’s designee as the Adviser may otherwise
direct. To the extent permitted by applicable law, the Adviser may elect, or adopt a deferred compensation plan pursuant to which
it may elect to defer all or a portion of its fees hereunder for a specified period of time.

 

(a) Base
Management Fee. The Base Management Fee is calculated at an annual rate of 2.0% of the average of the weighted average (based
on the number of shares outstanding each day in the quarter) of the Company’s total net assets at the end of each of the
two most recently completed calendar quarters. For the Company’s first quarter, the Base Management Fee is calculated based
on the weighted average of the Company’s total net assets as of such quarter-end. The Base Management Fee for any partial
quarter will be pro-rated based on the number of days actually elapsed in that quarter relative to the total number of days in
such quarter.

 

(b) Incentive
Fee. The Adviser will not be entitled to an Incentive Fee prior to a Listing. “Listing” means, at the discretion
of the Board of Directors, the listing of the Company’s common stock on a national securities exchange or an initial public
offering of the Company’s common stock that results in an unaffiliated public float of at least the lower of (i) $75 million
and (ii) 15% of the aggregate capital commitments received prior to the date of such initial public offering. Following a Listing,
the Adviser will be entitled to an Incentive Fee based on the Company’s income. The Incentive Fee will be calculated and
payable quarterly in arrears following a Listing and will be based on the Company’s Adjusted Net Investment Income (as defined
below) for the immediately preceding calendar quarter during which this Agreement is in effect.

 

(i) For
purposes of calculating the Incentive Fee, the following terms shall have the following meaning:

 

A.
“Adjusted Net Investment Income” shall mean the Company’s “Pre-Incentive Fee Net Investment Income”
during the then most recently completed calendar quarter minus the difference, if positive, between (i) the Company’s “Net
Realized Losses” over the then most recently completed and three preceding calendar quarters (or if shorter, the number of
calendar quarters that have occurred since the Listing) and (ii) the Company’s “Net Investment Income” over the
three preceding calendar quarters (or if shorter, the number of calendar quarters that have occurred since the Listing). No adjustment
(downward or upward) will be made to “Pre-Incentive Fee Net Investment Income” if the difference between clause (i)
minus clause (ii) is zero or negative.

 

    - 5 -

     

    

 

B. “Pre-Incentive
Fee Net Investment Income” shall mean interest income, dividend income and any other income (including any other fees
such as commitment, origination, structuring, diligence and consulting fees or other fees that the Company receives from portfolio
companies but excluding fees for providing managerial assistance) accrued during the calendar quarter, minus operating expenses
for the quarter (including the Base Management Fee, any expenses payable under the Administration Agreement, and any interest expense
and dividends paid on any outstanding preferred stock, but excluding the Incentive Fee). In addition, “Pre-Incentive Fee
Net Investment Income” shall include, in the case of investments with a deferred interest feature such as market discount,
original issue discount (“OID”), debt instruments with payment-in-kind (“PIK”) interest,
preferred stock with PIK dividends and zero-coupon securities, accrued income that the Company has not yet received in cash.

 

C. “Net
Realized Losses” in respect of a particular period means the difference, if positive, between (i) the aggregate realized
capital losses on the Company’s investments in such period and (ii) the aggregate realized capital gains on the Company’s
investments in such period.

 

D. “Net
Investment Income” in respect of the particular period means interest income, dividend income and any other income (including
any other fees such as commitment, origination, structuring, diligence and consulting fees or other fees that the Company receives
from portfolio companies but excluding fees for providing managerial assistance) accrued during the particular period, minus operating
expenses for the particular (including the base management fee, the Incentive Fee, any expenses payable under the Administration
Agreement, and any interest expense and dividends paid on any outstanding preferred stock). Net investment income includes, in
the case of investments with a deferred interest feature such as market discount, OID, debt instruments with PIK interest, preferred
stock with PIK dividends and zero-coupon securities, accrued income that the Company has not yet received in cash.

 

(ii) Adjusted
Net Investment Income shall be compared to a “Hurdle Amount” equal to the product of (i) the “hurdle rate”
of 1.50% per quarter (6.0% annualized) and (ii) the Company’s total net assets at the end of the immediately preceding
calendar quarter.

 

(iii) On
and after the occurrence of a Listing, the Company will pay the Adviser an Incentive Fee in each calendar quarter as follows:

 

		·	no Incentive Fee in any calendar quarter in which the Company’s Adjusted Net Investment Income does not exceed the Hurdle
Amount;

 

    - 6 -

     

    

 

		·	100% of the Company’s Adjusted Net Investment Income with respect to that portion of such Adjusted Net Investment Income,
if any, that exceeds the Hurdle Amount but is less than or equal to an amount (the “Catch-Up Amount”) determined
on a quarterly basis by multiplying 1.6875% by the Company’s total net asset value for the immediately preceding calendar
quarter. The Catch-Up Amount is intended to provide the Adviser with an Incentive Fee of 12.5% on all of the Company’s Adjusted
Net Investment Income when the Company’s Adjusted Net Investment Income reaches the Catch-Up Amount in any calendar quarter;
and

 

		·	for any calendar quarter in which the Company’s Adjusted Net Investment Income exceeds the Catch-Up Amount, the Incentive
Fee shall equal 12.5% of the amount of the Company’s Adjusted Net Investment Income for the calendar quarter.

 

(iv) The
Incentive Fee amount or the calculations pertaining thereto, as appropriate, will be pro-rated for any period less than a full
calendar quarter.

 

Section 4. Covenant
of the Adviser.

 

The Adviser covenants
that it is or will be registered as an investment adviser under the Advisers Act on the effective date of this Agreement, and shall
maintain such registration until the expiration or termination of this Agreement. The Adviser agrees that its activities shall
at all times comply in all material respects with all applicable federal and state laws governing its operations and investments.

 

Section 5. Brokerage
Commissions.

 

The Adviser is hereby
authorized, to the fullest extent now or hereafter permitted by law, to cause the Company to pay a member of a national securities
exchange, broker or dealer an amount of commission for effecting a securities transaction in excess of the amount of commission
another member of such exchange, broker or dealer would have charged for effecting that transaction, if the Adviser determines
in good faith, taking into account factors, including without limitation, price (including the applicable brokerage commission
or dealer spread), size of order, difficulty of execution, and operational facilities of the firm and the firm’s risk and
skill in positioning blocks of securities, that such amount of commission is reasonable in relation to the value of the brokerage
and/or research services provided by such member, broker or dealer, viewed in terms of either that particular transaction or its
overall responsibilities with respect to the Company’s portfolio, and is consistent with the Adviser’s duty to seek
the best execution on behalf of the Company.

 

Section 6. Proxy
Voting. 

 

The Adviser shall be
responsible for voting any proxies solicited by an issuer of securities held by the Company in the best interest of the Company
and in accordance with the Adviser’s proxy voting policies and procedures, as any such proxy voting policies and procedures
may be amended from time to time. The Company has been provided with a copy of the Adviser’s proxy voting policies and procedures
and has been informed as to how it can obtain further information from the Adviser regarding proxy voting activities undertaken
on behalf of the Company.

 

    - 7 -

     

    

 

Section 7. Other
Activities of the Adviser.

 

The services of the
Adviser to the Company are not, and shall not be exclusive, and the Adviser may engage in any other business or render similar
or different services to others including, without limitation, the direct or indirect sponsorship or management of other investment-based
accounts or commingled pools of capital, however structured, having investment objectives similar to or different from those of
the Company, and nothing in this Agreement shall limit or restrict the right of any manager, partner, officer, director, shareholder
(and their shareholders or members, including the owners of their shareholders or members), officer or employee of the Adviser
to engage in any other business or to devote his or her time and attention in part to any other business, whether of a similar
or dissimilar nature, or to receive any fees or compensation in connection therewith (including fees for serving as a director
of, or providing consulting services to, one or more of the Company’s portfolio companies, subject to applicable law). The
Adviser assumes no responsibility under this Agreement other than to render the services set forth herein. So long as this Agreement
or any extension, renewal or amendment hereof remains in effect, the Adviser shall be the only investment adviser for the Company,
subject to the Adviser’s right to enter into sub-advisory agreements. It is understood that directors, officers, employees
and stockholders of the Company are or may become interested in the Adviser and its affiliates, as directors, officers, employees,
partners, stockholders, members, managers or otherwise, and that the Adviser and directors, officers, employees, partners, stockholders,
members and managers of the Adviser and its affiliates are or may become similarly interested in the Company as stockholders or
otherwise.

 

Section 8. Responsibility
of Dual Directors, Officers and/or Employees.

 

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

 

Section 9. Limitation
of Liability of the Adviser; Indemnification.

 

The Adviser (and its
managers, partners, officers, employees, agents, controlling persons, members and any other person or entity affiliated with the
Adviser) shall not be liable to the Company for any action taken or omitted to be taken by the Adviser in connection with the performance
of any of its duties or obligations under this Agreement or otherwise as an investment adviser of the Company, except to the extent
specified in Section 36(b) of the 1940 Act concerning loss resulting from a breach of fiduciary duty (as the same is finally determined
by judicial proceedings) with respect to the receipt of compensation for services, and the Company shall indemnify, defend and
protect the Adviser (and its managers, partners, officers, employees, agents, controlling persons, members and any other person
or entity affiliated with the Adviser, each of whom shall be deemed a third party beneficiary hereof) (collectively, the “Indemnified
Parties”) and hold them harmless from and against all damages, liabilities, costs and expenses (including reasonable
attorneys’ fees and amounts reasonably paid in settlement) incurred by the Indemnified Parties in or by reason of any pending,
threatened or completed action, suit, investigation or other proceeding (including an action or suit by or in the right of the
Company or its security holders) arising out of or otherwise based upon the performance of any of the Adviser’s duties or
obligations under this Agreement or otherwise as an investment adviser of the Company. Notwithstanding the preceding sentence of
this Section 9 to the contrary, nothing contained herein shall protect or be deemed to protect the Indemnified Parties against
or entitle or be deemed to entitle the Indemnified Parties to indemnification in respect of, any liability to the Company or its
security holders to which the Indemnified Parties would otherwise be subject by reason of willful misfeasance, bad faith or gross
negligence in the performance of the Adviser’s duties or by reason of the reckless disregard of the Adviser’s duties
and obligations under this Agreement (as the same shall be determined in accordance with the 1940 Act and any interpretations or
guidance by the Securities and Exchange Commission or its staff thereunder). Notwithstanding anything contrary in this Agreement,
for so long as the Company is subject to the 1940 Act, the Company shall not advance an Indemnified Party any expenses to the extent
such advancement would violate the 1940 Act.

 

    - 8 -

     

    

 

Section 10. Effectiveness,
Duration and Termination of Agreement.

 

(a) Term
and Effectiveness. This Agreement shall become effective as of the first date written
above. Once effective, this Agreement shall remain in effect for two years, and thereafter shall continue automatically
for successive one-year periods; provided that such continuance is specifically approved at least annually by: (i) the vote of
the Board of Directors, or by the vote of a majority of the outstanding voting securities of the Company and (ii) the vote of a
majority of the Independent Directors, in accordance with the requirements of the 1940 Act.

 

(b) Termination.
This Agreement may be terminated at any time, without the payment of any penalty, (i) by the Company upon 60 days’ prior
written notice to the Adviser: (A) upon the vote of a “majority of the outstanding voting securities” of the Company
(as defined in Section 2(a)(42) of the 1940 Act) or (B) by the vote of the Independent Directors; or (ii) by the Adviser
upon not less than 60 days’ prior written notice to the Company. This Agreement shall automatically terminate in the event
of its “assignment” (as such term is defined for purposes of construing Section 15(a)(4) of the 1940 Act). The
provisions of Sections 9 and 10 shall remain in full force and effect, and the Adviser shall remain entitled to the benefits
thereof, notwithstanding any termination of this Agreement. Further, notwithstanding the termination or expiration of this Agreement
as aforesaid, the Adviser shall be entitled to any amounts owed to it under Section 3 through the date of termination or expiration
and Sections 9 and 10 shall continue in force and effect and apply to the Adviser and its representatives as and to the extent
applicable.

 

Section 11. Notices.

 

Any notice under this
Agreement shall be given in writing, addressed and delivered or mailed, postage prepaid, to the other party at the address listed
below or at such other address for a party as shall be specified in a notice given in accordance with this Section.

 

Section 12. Amendments.

 

This Agreement may
be amended by mutual written consent of the parties; provided that the consent of the Company is required to be obtained in conformity
with the requirements of the 1940 Act.

 

    - 9 -

     

    

 

Section 13. Severability.

 

If any provision of
this Agreement shall be declared illegal, invalid, or unenforceable in any jurisdiction, then such provision shall be deemed to
be severable from this Agreement (to the extent permitted by law) and in any event such illegality, invalidity or unenforceability
shall not affect the remainder hereof.

 

Section 14. Counterparts.

 

This Agreement may
be executed in counterparts, each of which shall be deemed to be an original copy and all of which together shall constitute one
and the same instrument binding on all parties hereto, notwithstanding that all parties shall not have signed the same counterpart.

 

Section 15. Governing
Law.

 

Notwithstanding the
place where this Agreement may be executed by any of the parties hereto, this Agreement shall be construed in accordance with the
laws of the State of Maryland. For so long as the Company is regulated as a BDC under the 1940 Act, this Agreement shall also be
construed in accordance with the applicable provisions of the 1940 Act and the Advisers Act. In such case, to the extent the applicable
laws of the State of Maryland or any of the provisions herein conflict with the provisions of the 1940 Act or the Advisers Act,
the 1940 Act and the Advisers Act shall control.

 

Section 16. Third
Party Beneficiaries.

 

Except for any Sub-Adviser
and any Indemnified Party, such Sub-Adviser and the Indemnified Parties each being an intended beneficiary of this Agreement, this
Agreement is for the sole benefit of the parties hereto and their permitted assigns and nothing herein express or implied shall
give or be construed to give to any person, other than the parties hereto and such assigns, any legal or equitable rights hereunder.

 

Section 17. Entire
Agreement.

 

This Agreement contains
the entire agreement of the parties and supersedes all prior agreements, understandings and arrangements with respect to the subject
matter hereof.

 

(signature page follows)

 

    - 10 -

     

    

 

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

 

	 	PALMER SQUARE CAPITAL BDC INC.
	 	1900 Shawnee Mission Parkway
	 	Suite 315
	 	Mission Woods, KS 66205
	 	 	 
	 	By:	/s/ Scott A Betz
	 	Name: 	Scott A. Betz
	 	Title:	Chief Compliance Officer
	 	 	 
	 	PALMER SQUARE BDC ADVISOR LLC
	 	1900 Shawnee Mission Parkway
	 	Suite 315
	 	Mission Woods, KS 66205
	 	 	 
	 	By:	/s/ Jeffrey D. Fox
	 	Name:	Jeffrey D. Fox
	 	Title:	Chief Financial Officer

 

 

[Signature Page to Investment Advisory
Agreement]

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