Document:

Exhibit 10.3

 

LICENSE AGREEMENT

 

This LICENSE AGREEMENT (this “Agreement”)
is made and effective as of ____________, 2021 (the “Effective Date”) by and between Stellus Capital Management, LLC
(the “Licensor”), a Delaware limited liability company, and Stellus Private Credit BDC, a Delaware trust (the “Licensee”)
(each a “party,” and collectively, the “parties”).

 

RECITALS

 

WHEREAS, Licensor has certain common law rights
in the trade name “STELLUS CAPITAL” (the “Licensed Name”);

 

WHEREAS, the Licensee is a closed-end investment
company that intends to elect to be treated as a business development company under the Investment Company Act of 1940, as amended;

 

WHEREAS, pursuant to the Investment Management
Agreement, dated as of [ ], 2021, by and between the Licensor and the Licensee (the “Advisory Agreement”), the Licensee
has engaged the Licensor to act as the investment advisor to the Licensee; and

 

WHEREAS, the Licensee desires to use the Licensed
Name in connection with the operation of its business, and the Licensor is willing to permit the Licensee to use the Licensed Name, subject
to the terms and conditions of this Agreement.

 

NOW, THEREFORE, in consideration of the mutual
covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

 

ARTICLE 1 

LICENSE GRANT

 

1.1 License.  Subject to the terms
and conditions of this Agreement, Licensor hereby grants to the Licensee, and the Licensee hereby accepts from Licensor, a personal, non-exclusive,
royalty-free right and license to use the Licensed Name solely and exclusively as an element of the Licensee’s own company name
and in connection with the conduct of its business.  Except as provided above, neither the Licensee nor any affiliate, owner,
director, officer, employee, or agent thereof shall otherwise use the Licensed Name or any derivative thereof without the prior express
written consent of the Licensor in its sole and absolute discretion.  All rights not expressly granted to the Licensee hereunder
shall remain the exclusive property of Licensor.

 

1.2 Licensor’s Use.  Nothing
in this Agreement shall preclude Licensor, its affiliates, or any of its respective successors or assigns from using or permitting other
entities to use the Licensed Name whether or not such entity directly or indirectly competes or conflicts with the Licensee’s business
in any manner.

 

ARTICLE 2 

OWNERSHIP

 

2.1 Ownership.  The Licensee acknowledges
and agrees that Licensor is the owner of all right, title, and interest in and to the Licensed Name, and all such right, title, and interest
shall remain with the Licensor.  The Licensee shall not otherwise contest, dispute, or challenge Licensor’s right, title,
and interest in and to the Licensed Name.

 

2.2 Goodwill.  All goodwill and
reputation generated by Licensee’s use of the Licensed Name shall inure to the benefit of Licensor.  The Licensee shall
not by any act or omission use the Licensed Name in any manner that disparages or reflects adversely on Licensor or its business or reputation.  Except
as expressly provided herein, neither party may use any trademark or service mark of the other party without that party’s prior
written consent, which consent shall be given in that party’s sole discretion.

 

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ARTICLE 3 

COMPLIANCE

 

3.1 Quality Control.  In order
to preserve the inherent value of the Licensed Name, the Licensee agrees to use reasonable efforts to ensure that it maintains the quality
of the Licensee’s business and the operation thereof equal to the standards prevailing in the operation of the Licensor’s
and the Licensee’s business as of the date of this Agreement.  The Licensee further agrees to use the Licensed Name in
accordance with such quality standards as may be reasonably established by Licensor and communicated to the Licensee from time to time
in writing, or as may be agreed to by Licensor and the Licensee from time to time in writing.

 

3.2 Compliance With Laws.  The
Licensee agrees that the business operated by it in connection with the Licensed Name shall comply in all material respects with all laws,
rules, regulations and requirements of any governmental body in the United States of America (the “Territory”) or elsewhere
as may be applicable to the operation, advertising and promotion of the business, and that it shall notify Licensor of any action that
must be taken by the Licensee to comply with such law, rules, regulations or requirements.

 

3.3 Notification of Infringement.  Each
party shall immediately notify the other party and provide to the other party all relevant background facts upon becoming aware of (i) any
registrations of, or applications for registration of, marks in the Territory that do or may conflict with the Licensed Name, and (ii) any
infringements, imitations, or illegal use or misuse of the Licensed Name in the Territory.

 

ARTICLE 4 

REPRESENTATIONS AND WARRANTIES

 

4.1 Mutual Representations.  Each
party hereby represents and warrants to the other party as follows:

 

(a) Due Authorization.  Such
party is duly formed and in good standing as of the Effective Date, and the execution, delivery and performance of this Agreement by such
party have been duly authorized by all necessary action on the part of such party.

 

(b) Due Execution.  This
Agreement has been duly executed and delivered by such party and, with due authorization, execution and delivery by the other party, constitutes
a legal, valid and binding obligation of such party, enforceable against such party in accordance with its terms.

 

(c) No Conflict.  Such party’s
execution, delivery and performance of this Agreement do not: (i) violate, conflict with or result in the breach of any provision
of the organizational documents of such party; (ii) conflict with or violate any law or governmental order applicable to such party
or any of its assets, properties or businesses; or (iii) conflict with, result in any breach of, constitute a default (or event which
with the giving of notice or lapse of time, or both, would become a default) under, require any consent under, or give to others any rights
of termination, amendment, acceleration, suspension, revocation or cancellation of any contract, agreement, lease, sublease, license,
permit, franchise or other instrument or arrangement to which it is a party.

 

ARTICLE 5 

TERM AND TERMINATION

 

5.1 Term.  This Agreement shall
remain in effect only for so long as the Licensor or one of its affiliates remains the Licensee’s investment advisor.

 

5.2 Upon Termination.  Upon expiration
or termination of this Agreement, all rights granted to the Licensee under this Agreement with respect to the Licensed Name shall cease,
and the Licensee shall immediately discontinue use of the Licensed Name.

 

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ARTICLE 6 

MISCELLANEOUS

 

6.1 Assignment.  This Agreement
shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.  Neither
party may assign, delegate or otherwise transfer this Agreement or any of its rights or obligations hereunder without the prior written
consent of the other party.  No assignment by either party permitted hereunder shall relieve the applicable party of its obligations
under this Agreement.  Any assignment by either party in accordance with the terms of this Agreement shall be pursuant to a
written assignment agreement in which the assignee expressly assumes the assigning party’s rights and obligations hereunder. Notwithstanding
anything to the contrary contained in this Agreement, the rights and obligations of the Licensee under this Agreement shall be deemed
to be assigned to a newly-formed entity in the event of the merger of the Licensee into, or conveyance of all of the assets of the Licensee
to, such newly-formed entity; provided, further, however, that the sole purpose of that merger or conveyance is to
effect a mere change in the Licensee’s legal form into another limited liability entity.

 

6.2 Independent Contractor.  This
Agreement does not give any party, or permit any party to represent that it has any power, right or authority to bind the other party
to any obligation or liability, or to assume or create any obligation or liability on behalf of the other party.

 

6.3 Notices.  All notices, requests,
claims, demands and other communications hereunder shall be in writing and shall be given or made (and shall be deemed to have been duly
given or made upon receipt) by delivery in person, by overnight courier service (with signature required), by facsimile, or by registered
or certified mail (postage prepaid, return receipt requested) to the other party at its principal office.

 

6.4 Governing Law.  This Agreement
shall be governed by and construed in accordance with the laws of the State of New York applicable to contracts formed and to be performed
entirely within the State of New York, without regarding the conflicts of law principles or rules thereof, to the extent such principles
would require to permit the applicable of the laws of another jurisdiction. The parties unconditionally and irrevocably consent to the
exclusive jurisdiction of the courts located in the State of New York and waive any objection with respect thereto, for the purpose of
any action, suit or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.

 

6.5 Amendment.  This Agreement
may not be amended or modified except by an instrument in writing signed by all parties hereto.

 

6.6 No Waiver.  The failure of
either party to enforce at any time for any period the provisions of or any rights deriving from this Agreement shall not be construed
to be a waiver of such provisions or rights or the right of such party thereafter to enforce such provisions, and no waiver shall be binding
unless executed in writing by all parties hereto.

 

6.7 Severability.  If any term
or other provision of this Agreement is invalid, illegal or incapable of being enforced by any law or public policy, all other terms and
provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions
contemplated hereby is not affected in any manner materially adverse to any party.  Upon such determination that any term or
other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement
so as to effect the original intent of the parties as closely as possible in an acceptable manner in order that the transactions contemplated
hereby are consummated as originally contemplated to the greatest extent possible.

 

6.8 Headings.  The descriptive
headings contained in this Agreement are for convenience of reference only and shall not affect in any way the meaning or interpretation
of this Agreement.

 

6.9 Counterparts.  This Agreement
may be executed in one or more counterparts, each of which shall be deemed to be an original, and all of which together shall be deemed
to be one and the same instrument.  Any party may deliver an executed copy of this Agreement and of any documents contemplated
hereby by facsimile or other electronic transmission to another party and such delivery shall have the same force and effect as any other
delivery of a manually signed copy of this Agreement or of such other documents.

 

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6.10 Entire Agreement.  This Agreement
constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes all prior agreements and undertakings,
both written and oral, among the parties with respect to such subject matter.

 

6.11 Third-Party Beneficiaries.  Nothing
in this Agreement, either express or implied, is intended to or shall confer upon any third party any legal or equitable right, benefit
or remedy of any nature whatsoever under or by reason of this Agreement.

 

[Remainder of Page Intentionally Blank]

 

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IN WITNESS WHEREOF, each party has caused this
Agreement to be executed as of the Effective Date by its duly authorized officer.

 

	 	LICENSOR:
	 	STELLUS CAPITAL MANAGEMENT, LLC
	 	 
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

	 	LICENSEE:
	 	STELLUS PRIVATE CREDIT BDC
	 	 
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    5Exhibit 10.4

 

DIVIDEND
REINVESTMENT PLAN

OF

STELLUS
PRIVATE CREDIT BDC

 

Stellus Private Credit BDC,
a Delaware statutory trust (the “Company”), has adopted the following plan (the “Plan”), to be administered
by Broadridge Corporate Issuer Solutions, Inc. and its affiliates (the “Plan Administrator”), with respect to
dividends and other distributions declared by its Board of Trustees (the “Board of Trustees”) on common shares of beneficial
interest of the Company, par value $0.01 per share (the “Common Shares”).

 

Stockholders who do not wish
to participate in the Plan must “opt out” of the Plan. A stockholder may elect to “opt out” of the Plan with respect
to all of such stockholder’s Common Shares or only a portion of such Common Shares so specified in the stockholder’s subscription
agreement relating to the Common Shares. A stockholder who participates in the Plan by not opting out of the Plan (each a “Participant”)
will be subject to the terms below.

 

1.            All
cash dividends or other distributions hereafter declared by the Board of Trustees, net of any applicable withholding tax, shall be automatically
reinvested in additional shares of Common Shares, and no action shall be required on such Participant’s part to receive a distribution
in Common Shares.

 

2.            Such
distributions shall be payable on such date or dates as may be fixed from time to time by the Board of Trustees to stockholders of record
at the close of business on the record date established by the Board of Trustees for the distribution involved.

 

3.            The
Board of Trustees will use newly issued shares of Common Shares to implement the Plan issued at a net asset value per share determined
as of the valuation date fixed by the Board of Trustees for such dividend or distribution. The number of shares of Common Shares to be
issued to a Participant prior to the pricing of an initial public offering of the Common Shares or an Exchange Listing would be determined
by dividing the total dollar amount of the dividend or distribution payable to such Participant by the net asset value per share.

 

4.            The
Plan Administrator shall establish an account for shares of Common Shares acquired pursuant to the Plan for each Participant. The Plan
Administrator shall hold each Participant’s shares of Common Shares, together with the shares of Common Shares of other Participants,
in non-certificated form. The Plan Administrator shall not issue share certificates to any Participant.

 

5.            The
Plan Administrator shall confirm to each Participant each acquisition made pursuant to the Plan as soon as practicable but not later than
30 business days after the payable date. Each Participant may from time to time have an undivided fractional interest (computed to three
decimal places) in a share of Common Shares, and distributions on fractional shares shall be credited to each Participant’s account.
In the event of termination of a Participant’s account under the Plan, the Plan Administrator shall adjust for any such undivided
fractional interest in cash at the time of termination.

 

6.            In
the event that the Company makes available to its stockholders rights to purchase additional shares of Common Shares or other securities,
the Common Shares held by the Plan Administrator for each Participant under the Plan shall be added to any other shares of Common Shares
held by the Participant in calculating the number of rights to be issued to the Participant. Transaction processing may be either curtailed
or suspended until the completion of any stock dividend, stock split or corporate action.

 

     

     

    

 

7.            The
Plan Administrator’s service fee, if any, and expenses for administering the Plan shall be paid for by the Company. There will be
no brokerage charges or other charges to Participants. If a Participant elects to sell part or all of his, her or its shares held by the
Plan Administrator and have the proceeds remitted to the Participant, such request must first be submitted to the Participant’s
broker, who will coordinate with the Plan Administrator and is authorized to deduct a $[15.00] transaction fee plus a $[0.10] per share
brokerage commission from the sale proceeds.

 

8.            Each
Participant may elect to receive an entire distribution in cash by notifying the Plan Administrator and our transfer agent and registrar
in writing so that such notice is received by the Plan Administrator no later than the record date for such distribution to stockholders.
Those Participants who hold shares through a broker or other financial intermediary may receive distributions in cash by notifying their
broker or other financial intermediary of their election.

 

9.            Each
Participant may terminate the Participant’s account under the Plan by so notifying the Plan Administrator by submitting a letter
of instruction terminating the Participant’s account under the Plan to the Plan Administrator. Such termination shall be effective
immediately if the Participant’s notice is received by the Plan Administrator at least three days prior to any distribution date;
otherwise, such termination shall be effective only with respect to any subsequent distribution. The Plan may be terminated or amended
by the Company upon notice in writing mailed to each Participant at least 30 days prior to any record date for the payment of any dividend
by the Company. Upon any termination, the Plan Administrator shall cause shares of Common Shares held for the Participant under the Plan
to be delivered to the Participant.

 

10.            These
terms and conditions may be amended or supplemented by the Company at any time by mailing to each Participant appropriate written notice
at least 30 days prior to the effective date thereof. The amendment or supplement shall be deemed to be accepted by each Participant unless,
prior to the effective date thereof, the Plan Administrator receives written notice of the termination of the Participant’s account
under the Plan. Any such amendment may include an appointment by the Plan Administrator in its place and stead of a successor agent under
these terms and conditions, with full power and authority to perform all or any of the acts to be performed by the Plan Administrator
under these terms and conditions. Upon any such appointment of any agent for the purpose of receiving distributions, the Company shall
be authorized to pay to such successor agent, for each Participant’s account, all distributions payable on shares of Common Shares
held in the Participant’s name or under the Plan for retention or application by such successor agent as provided in these terms
and conditions.

 

11.            The
Plan Administrator shall at all times act in good faith and use its best efforts within reasonable limits to ensure its full and timely
performance of all services to be performed by it with respect to purchases and sales of the Common Shares under this Plan and to comply
with applicable law, but assumes no responsibility and shall not be liable for loss or damage due to errors unless such error is caused
by the Plan Administrator’s negligence, bad faith or willful misconduct or that of its employees or agents.

 

12.            These
terms and conditions shall be governed by the laws of the State of Delaware.

 

December 21, 2021

 

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