Document:

Exhibit 10.7

 

PALMER
                                         SQUARE CAPITAL BDC INC.

 

 

 

SUBSCRIPTION
DOCUMENTS BOOKLET

 

INSTRUCTIONS

and

SUBSCRIPTION AGREEMENT

 

November
2019

 

     

     

    

 

PALMER
SQUARE CAPITAL BDC INC.

 

INSTRUCTIONS
TO SUBSCRIBERS

 

     

     

    

 

INSTRUCTIONS
TO SUBSCRIBERS

 

Persons
and entities (“Subscribers”) wishing to subscribe for shares of common stock, par value $0.001 per share (the
“Shares”), of PALMER SQUARE CAPITAL BDC INC. (the “Fund”) should complete and sign the Subscription
Agreement and Form W-9 or applicable Form W-8.

 

In
order to comply with the International Money Laundering Abatement and Anti- Terrorist Financing Act of 2001 (Title III of the
USA PATRIOT Act of 2001), as amended, and the Treasury Department’s Office of Foreign Assets Control, certain Subscribers
may be required to provide additional information. If necessary, you will be contacted regarding the particular information that
you will need to provide after you complete the Subscription Agreement and the Form W-9. You will need to provide the requested
information prior to the Fund’s acceptance of your subscription.

 

EACH
SUBSCRIBER SHOULD CAREFULLY REVIEW THE FUND’S CONFIDENTIAL PRIVATE PLACEMENT MEMORANDUM AND THE EXHIBITS THERETO.

 

Normally,
Subscribers may subscribe by completing the following steps:

 

		1.	SUBSCRIPTION
                                         AGREEMENT:

 

Complete
the applicable Sections in Article VI, complete and sign the signature page (30-31).

 

Custodians
of individual retirement accounts must complete the Additional Representation with Respect to Investment for an IRA on page 32
and Acknowledgement Page on page 33.

 

Custodians/trustees
of individual retirement accounts or other Benefit Plan Investors must provide a duplicate statement of address.

 

		2.	IRS
                                         FORMS:

 

Complete
and sign IRS Form W-9 or applicable version of Form W-8 (together with all required attachments). IRS Form W-9 and all versions
of Form W-8 and associated instructions are available at:

 

Form
W-9 (http://www.irs.gov/pub/irs-pdf/fw9.pdf)

 

Form
W-8BEN (http://www.irs.gov/pub/irs-pdf/fw8ben.pdf)

 

Form
W-8BEN-E (http://www.irs.gov/pub/irs-pdf/fw8bene.pdf)

 

Form
W-8IMY (http://www.irs.gov/pub/irs-pdf/fw8imy.pdf)

 

     

     

    

 

		3.	AUTHORIZED
                                         SIGNATURE(S):

 

Complete
and sign the attached in the places provided to designate all authorized signatories.

 

		4.	ANTI-MONEY
                                         LAUNDERING SUPPLEMENT:

 

Complete
and sign the attached Anti-Money Laundering Supplement.

 

		5.	DIVIDEND
REINVESTMENT PLAN ELECTION FORM

 

Complete
and sign the attached Dividend Reinvestment Plan Election Form.

 

Completed
Subscription Agreements, Forms W-9 or applicable Form W-8 (and all required attachments), Anti-Money Laundering Supplements and
Dividend Reinvestment Plan Election Form should be returned to:

 

PALMER
SQUARE CAPITAL BDC INC.

1900
Shawnee Mission Parkway, Suite 315

Mission
Woods, KS 66205

Telephone:
(816) 994-3200

Email:
investorrelations@palmersquarecap.com

 

If
the Subscriber’s subscription is accepted (in whole or in part) by the Fund, a countersigned copy of this Subscription Agreement
will be delivered to the Subscriber.

 

INSTRUCTIONS
FOR TRANSMITTAL OF FUNDS:

 

In
connection with a Subscriber’s investment, the Subscriber shall be required to contribute capital pursuant to Drawdown Notices
(as defined in the Subscription Agreement). Upon receipt of a Drawdown Notice, payment shall be sent by wire transfer pursuant
to the wire instructions set forth below. Notwithstanding the foregoing, wire instructions may change in the sole discretion of
the Fund. Therefore, Subscribers should wire funds in accordance with the wire instructions set forth in any Drawdown Notice issued
by the Fund. To the extent there is any discrepancy in the wire instructions set forth below and the wire instructions set forth
in a Drawdown Notice, the wire instructions in such Drawdown Notice shall prevail.

 

	 	Bank:	[●]
	 	SWIFT:	[●]
	 	ABA:	[●]
	 	Account #:	[●]
	 	Account Name:	[●]
	 	For the benefit of:	Palmer Square Capital BDC Inc.
	 	Account #:	[●]
	 	Payment Details:	Include Subscriber Name, Routing or SWIFT number of
	 	 	Subscriber’s Bank, and Subscriber’s Bank Account Number

 

In
addition to providing the requested information set forth in the Subscription Agreement regarding the origin of your funds, please
contact us at (816) 994-3200 or investorrelations@palmersquarecap.com with the date, the amount and the bank and branch from which
the funds originate. This will allow us to confirm the receipt of your funds.

 

If
your subscription is not accepted by the Fund, or you do not wish to subscribe for an Shares in the Fund, please destroy all Fund
documents. This Subscription Documents Booklet
may not be reproduced, duplicated or delivered to any other person.

 

     

     

    

 

PALMER
SQUARE CAPITAL BDC INC.

 

SUBSCRIPTION
AGREEMENT

 

     

     

    

 

PALMER
SQUARE CAPITAL BDC INC.

 

SUBSCRIPTION
AGREEMENT

 

RECITALS

 

This
Subscription Agreement (as the same may be amended, supplemented or otherwise modified from time to time, together with all attachments,
the “Subscription” or the “Subscription Agreement”) is being executed and delivered in connection
with the subscription by the undersigned (the “Subscriber”) to purchase shares of common stock, par value $0.001
per share (the “Shares”), of Palmer Square Capital BDC Inc. (the “Fund”), a corporation
formed under the laws of the State of Maryland with offices at 1900 Shawnee Mission Parkway, Suite 315, Mission Woods, KS 66205,
through periodic calls of all or a portion of capital amounts of the Subscriber’s aggregate capital commitment (the “Capital
Commitment”) in the amount set forth on the signature page below.

 

ARTICLE
I

Subscription for Shares

 

1.1. Subscription.

 

(a) The
Subscriber hereby tenders this Subscription whereby the Subscriber irrevocably commits and agrees to purchase Shares for an aggregate
purchase price, in cash, equal to its Capital Commitment, portions of such Capital Commitment to be payable in immediately available
funds on an as-needed basis under the terms and subject to the conditions set forth herein.

 

(b) The
Subscriber acknowledges and agrees that this subscription (i) is irrevocable on the part of the Subscriber, (ii) is conditioned
upon acceptance by the Fund and (iii) may be accepted or rejected in whole or in part by the Fund in its sole discretion at any
time. The Subscriber agrees to be bound by all the terms and provisions of this Subscription Agreement and the Operative Documents
(as defined below). The Subscriber acknowledges that the effective date of this Subscription Agreement will be subsequent to the
date the Subscriber signs it, as determined by the Fund in its sole and absolute discretion.

 

1.2. Receipt
of Operative Documents; Form 10.

 

(a) The
Subscriber acknowledges receipt from the Fund of a copy of the Fund’s Confidential Private Placement Memorandum (as the
same may be amended, supplemented or otherwise modified from time to time, the “Memorandum”), the Fund’s
bylaws, in the form attached hereto as Appendix A (as amended, the “Bylaws”), the Fund’s articles
of incorporation, in the form attached hereto as Appendix B (as amended, the “Charter”), the Investment
Advisory Agreement by and between Palmer Square BDC Advisor LLC (the “Investment Advisor”) and the Fund, in
the form attached hereto as Appendix C (as amended, the “Advisory Agreement”), and the Administration
Agreement by and between the Fund and the Investment Advisor (in such capacity, the “Administrator”), in the
form attached hereto as Appendix D (as amended, the “Administration Agreement” and, together with the
Memorandum, the Bylaws, the Charter, this Subscription Agreement and the Advisory Agreement, the “Operative Documents”)
together with this Subscription Agreement.

 

     

     

    

 

(b) The
Fund will file a registration statement on Form 10 (the “Registration Statement”) for the registration of its
common stock with the U.S. Securities and Exchange Commission (the “SEC”) under the Securities Exchange Act
of 1934, as amended (the “Exchange Act”). The Registration Statement is not the offering document pursuant
to which the Fund is conducting this offering of securities. Accordingly, the Subscriber should rely exclusively on information
contained in the Memorandum. The Fund expects to enter into separate Subscription Agreements (the “Other Subscription
Agreements” and, together with this Subscription Agreement, the “Subscription Agreements”) with other
investors (the “Other Investors,” and together with the Subscriber, the “Investors”), providing
for the sale of Shares to the Other Investors. This Subscription Agreement and the Other Subscription Agreements are separate
agreements, and the sales of Shares to the undersigned and the Other Investors are to be separate sales.

 

THE
SUBSCRIBER ACKNOWLEDGES THAT THE SUBSCRIBER IS ACQUIRING THE SHARES AFTER INVESTIGATION OF THE FUND AND ITS PROSPECTS AND THAT
NO OFFER HAS BEEN MADE TO THE SUBSCRIBER EXCEPT THROUGH THE MEMORANDUM. THE SUBSCRIBER FURTHER ACKNOWLEDGES THAT THE SUBSCRIBER
IS NOT RELYING UPON ANY REPRESENTATION MADE BY ANY PERSON EXCEPT AS SET FORTH IN THE MEMORANDUM.

 

1.3. Terms
and Conditions.

 

(a) The
Fund shall have the right to accept or reject the Subscription, in whole or in part, for any reason whatsoever, including, but
not limited to, (i) the inability of the Subscriber to meet the standards imposed by Regulation D (“Regulation D”)
promulgated by the SEC under the Securities Act of 1933, as amended (the “Securities Act”), (ii) the ineligibility
of the Subscriber under applicable state or foreign securities laws or (iii) for any other reason.

 

(b) If
this Subscription is accepted by the Fund, the Fund will forward an executed copy of this Subscription Agreement to the undersigned
and the undersigned will be bound by the terms hereof. If the Subscriber’s subscription is accepted in part and rejected
in part, the Subscriber will be so notified and the Subscriber agrees to deliver promptly upon the Fund’s request a new
signature page to this Subscription Agreement with respect to which the Subscriber’s Capital Commitment shall be such lesser
amount as may be determined by the Fund. If the Subscriber’s subscription is wholly rejected, the executed copies of this
Subscription Agreement will be returned to the Subscriber.

 

(c) The
closing of the subscription for the Shares by the Subscriber (the “Closing”) shall take place on the date that
this Subscription Agreement (having been executed and fully completed by the Subscriber) is accepted in whole or in part by the
Fund (such date being the date filled in by the Fund on the signature page hereto). On the date of the receipt of the Subscriber’s
first Drawdown Purchase (as defined below), assuming the Closing has taken place, the Subscriber shall be registered as a stockholder
of the Fund (a “Stockholder”).

 

    2

     

    

 

(d) The
Subscriber agrees to provide any information reasonably requested by the Fund to verify the accuracy of the representations contained
herein, including the Suitability Requirements included in Article VI hereto.

 

(e) In
the event the Subscriber is permitted by the Fund to make an additional capital commitment to purchase Shares on a date after
its initial subscription has been accepted, the Purchaser shall be required to enter into an addendum to this Subscription Agreement
covering such additional capital commitment.

 

1.4. Other
Investors.

 

(a)
The Fund may enter into Other Subscription Agreements with Other Investors after the Closing, with any closing thereunder referred
to as a “Subsequent Closing” and any Other Investor whose subscription has been accepted at such Subsequent
Closing referred to as a “Subsequent Investor.” Notwithstanding the provisions of Section 1.5, on one
or more dates to be determined by the Fund that occur on or following the Subsequent Closing (each such date, a “Catch-Up
Date”), each Subsequent Investor shall be required to purchase from the Fund a number of Shares with an aggregate purchase
price necessary to ensure that, upon payment of the aggregate purchase price for such Shares by the Subsequent Investor on such
Catch-Up Date(s), such Subsequent Investor’s Invested Percentage (as defined below) shall be equal to the Invested Percentage
of all prior Investors (other than any Defaulting Subscribers) (such amount, the “Catch-Up Purchase Price”
and such purchase, the “Catch-up Purchase”). Upon payment of all or a portion of the Catch-Up Purchase Price
by the Investor on a Catch-Up Date, the Fund shall issue to each such Subsequent Investor a number of Shares determined by dividing
(x) the Catch-Up Purchase Price paid minus
the Organizational Expense Allocation (as defined below) by (y) the NAV per Share (as defined
below) as of a Catch-Up Date (determined prior to such issuance). Investors that make a Capital Commitment prior to any Subsequent
Closing will not be required to fund Drawdown Purchases (as defined below) on a Drawdown Date (as defined below) until all Subsequent
Investors have made their entire Catch-up Purchase. For the avoidance of doubt, in the event that the Catch-Up Date and a Drawdown
Date occur on the same calendar day, such Catch-Up Date (and the application of the provisions of this Section 1.4(b))
shall be deemed to have occurred immediately prior to the relevant Drawdown Date.

 

“Invested
Percentage” means, with respect to an Investor, the quotient determined by dividing (i) the aggregate amount of contributions
made by such Investor pursuant to Section 1.1 and this Section 1.4(a) and Section 1.5 by (ii) such Investor’s
Capital Commitment.

 

“Organizational
Expense Allocation” means, with respect to an Investor, (a) multiplied by (b), where:

 

“(a)”equals
(i) a fraction, the numerator of which is the total Capital Commitments received by the Fund through such date (including the
Investor’s), and the denominator of which is the total Capital Commitments received by the Fund through such date (excluding
the Investor’s), minus (ii) 1.00; and

 

    3

     

    

 

“(b)”equals
the total amount of organizational and offering expenses spent by the Fund in connection with the Fund’s formation and the
offering described in the Memorandum.

 

1.5. Drawdowns.

 

(a) Subject
to Sections 1.1, 1.2, 1.3 and 1.4, the Subscriber agrees to purchase Shares for an aggregate purchase
price equal to its Capital Commitment, payable at such times and in such amounts as required by the Fund. The Subscriber shall
be required to fund a capital contribution to purchase Shares (a “Drawdown Purchase”) each time the Fund delivers
a notice (the “Drawdown Notice”) to the Subscriber. Drawdown Notices shall be delivered at least ten calendar
days prior to the date on which payment will be due (each, a “Drawdown Date”) and shall set forth the amount,
in U.S. dollars, of the aggregate purchase price (the “Drawdown Purchase Price”) to be paid by the Subscriber
to purchase Shares on such Drawdown Date. Each purchase of Shares pursuant to a Drawdown Notice will be made at a per Share price
equal to the net asset value per Share, as determined by the board of directors of the Fund (the “Board”) or
an appropriately designated committee of the Board at the time of issuance of the Drawdown Notice (the “NAV per Share”).
No Subscriber shall be required to invest more than the total amount of its Capital Commitment.

 

(b) Each
Drawdown Purchase Price shall be payable, in U.S. dollars and in immediately available funds per the wire transfer instructions
set forth in such Drawdown Notice. In addition to the wire transfer instructions, each Drawdown Notice shall set forth (i) the
Drawdown Date, (ii) the aggregate amount of capital that is being drawn down from all subscribers and (iii) the Subscriber’s
share of capital drawn. The delivery of a Drawdown Notice to the Subscriber shall be the sole and exclusive condition to the Subscriber’s
irrevocable and unconditional obligation to pay such Drawdown Purchase Price in the amount set forth therein, without any right
of offset, reduction, counterclaim or defense.

 

(c) Concurrent
with any payment of all or a portion of the Drawdown Purchase Price, the Fund shall issue to the Subscriber a number of Shares
equal to the amount of the Drawdown Purchase Price funded by the Subscriber on the applicable Drawdown Date divided by the NAV
per Share as set forth in the Drawdown Notice. For the avoidance of doubt, the Fund shall not issue Shares for any portion of
the Subscriber’s Capital Commitment that has not been paid to the Fund and used to purchase Shares pursuant to one or more
Drawdown Notices (the “Undrawn Commitment”).

 

    4

     

    

 

(d) Upon
the earlier to occur of (i) a Liquidity Event (as defined below) and (ii) the five year anniversary of the first Drawdown Date
for the Investors in the Fund (the “Commitment Period”) the Subscriber shall be released from any obligation
to fund any portion of its Capital Commitment for which it has not received a Drawdown Notice prior to the termination of the
Commitment Period, except to the extent necessary to (A) pay expenses of the Fund, including management fees, amounts due or that
may become due under any financing or similar obligations, and indemnity obligations or (B) fund investments or obligations (including
guarantees) of the Fund in connection with any transaction for which there is a binding written agreement as of the end of the
Commitment Period (including phased investments). A “Liquidity Event” means, at the discretion of the Board:
(a) (1) the listing of the Fund’s common stock on a national securities exchange or (2) an initial public offering of the
Fund’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 (a “Qualified IPO”),
or (b) with the consent of a majority of the Fund’s outstanding common stock and in accordance with Maryland law, a corporate
control transaction, which may include a strategic sale of the Fund or all or substantially all of its assets to, or a merger
with, another entity, or another type of corporate control event (which may include a transaction with an affiliated entity, including
an affiliated business development company (“BDC”)) for consideration in cash or publicly listed securities
of such entity or a combination of cash and such publicly listed securities.

 

(e) The
Subscriber acknowledges and agrees that the Fund intends to request contributions from all subscribers with an Undrawn Commitment
pro rata in accordance with the Capital Commitments of all subscribers with Undrawn Commitments; provided that the Fund shall
retain the right to require the Subscriber (i) to fund a Drawdown Purchase Price that is more or less than its pro rata share
or (ii) to fund a Drawdown Purchase Price (but not require Other Investors to do so), in either case, in order to accelerate the
fulfillment of the Subscriber’s Capital Commitment if less than 20% of the Subscriber’s Capital Commitment remains
undrawn, to seek to equalize the percentage of the Subscriber’s total Capital Commitment that has been contributed to the
Fund relative to the capital contributions of Other Investors, or to avoid any of the Default Remedy Limitations (as defined below)
or for other regulatory reasons. The Subscriber acknowledges and agrees that the Fund may, if determined by the Fund in its sole
discretion, from time to time require capital contributions from Other Investors and not the Subscriber. Accordingly, Drawdown
Notices may be issued only to selected subscribers (including or excluding the Subscriber) from time to time and require a purchase
of Shares by such investors in amounts determined by the Fund in its sole discretion.

 

1.6. Pledging.

 

(a)
Without limiting the generality of the foregoing, the Subscriber specifically agrees and consents that the Fund may, at any time,
without further notice to or consent from the Subscriber (except to the extent otherwise provided in this Subscription Agreement),
grant security over and, in connection therewith, transfer its right to draw down capital from the Subscriber hereunder, and the
Fund’s right to receive the Drawdown Purchase Price (and any related rights of the Fund), to lenders or other creditors
of the Fund, in connection with any indebtedness, guarantee or surety of the Fund; provided that, for the avoidance of doubt,
any such grantee’s right to draw down capital shall be subject to the limitations on the Fund’s right to draw down
capital set forth herein.

 

    5

     

    

 

1.7. Dividends;
Dividend Reinvestment Plan.

 

(a) As
described more fully in the Memorandum, the Fund generally intends to distribute on a quarterly basis, beginning after the first
full quarter following the effectiveness of the Registration Statement, out of assets legally available for distribution, substantially
all of its available earnings in such amount so the Fund will not have to pay corporate-level income tax, subject to the discretion
of the Board. The Fund has adopted a dividend reinvestment plan, as may be amended (the “Dividend Reinvestment Plan”),
pursuant to which, with respect to stockholders who do not “opt-out” of the Fund’s Dividend Reinvestment Plan,
the Fund shall reinvest all cash distributions declared by the Board on behalf of any such Stockholder in exchange for such Stockholder
receiving a number of newly issued Shares equal to the quotient determined by dividing the amount of cash otherwise to be distributed
to such Stockholder in connection with such distribution by NAV per Share as of the valuation date fixed by the Board for such
distribution. The Subscriber may “opt-out” of the Dividend Reinvestment Plan in the Dividend Reinvestment Plan Election
Form attached hereto. An election to “opt-out” of the Dividend Reinvestment Plan may be altered, subject to approval
by the Fund, by notifying the Fund in writing. A change in election must be received by the Fund at least ten calendar days prior
to any distribution date; otherwise, such election shall be effective only with respect to any subsequent distributions. The Subscriber
acknowledges and agrees that any distributions received by the Subscriber or reinvested by the Fund on the Subscriber’s
behalf pursuant to the Dividend Reinvestment Plan shall have no effect on the amount of the Subscriber’s Undrawn Commitment.

 

1.8. Remedies
Upon Drawdown Purchase Price Default. In the event that the Subscriber fails to pay all or any portion of the Drawdown Purchase
Price due from the Subscriber on any Drawdown Date (such amount, together with the amount of the Subscriber’s Undrawn Commitment,
a “Defaulted Commitment”) and such default remains uncured for a period of ten days, then the Fund shall be
permitted to declare the Subscriber to be in default on its obligations under this Subscription Agreement (in such capacity, a
“Defaulting Subscriber” and, collectively with any Other Investors declared to be in default, the “Defaulting
Stockholders”) and shall be permitted to pursue one or any combination of the following remedies:

 

(a)
Participation in Future
Drawdowns. The Fund may prohibit the Defaulting Subscriber from purchasing additional Shares
on any future Drawdown Date.

 

(b)
Offer of Shares.
The Fund may offer up to 100% of the Defaulting Subscriber’s Shares (the “Offered
Shares”) first, to the Other Investors (other than any Defaulting Stockholders) and if such Other Investors do not purchase
all of such Offered Shares, to third parties for purchase at a price equal to the lesser of the then-current net asset value of
such Shares or the highest price reasonably obtainable by the Fund therefor, subject to such other terms as the Fund in its discretion
shall determine, which offer(s) shall be binding upon the Defaulting Subscriber if the purchasing Other Investors or third parties
agree to assume the related Capital Commitment with respect to such Shares of the Defaulting Subscriber, including any portion
then due and unpaid, and the Fund pursuant to its authority under Section 5.1 may execute on behalf of the Defaulting Subscriber
any documents necessary to effect the Transfer (as defined herein) of the Defaulting Subscriber’s Shares pursuant to this
Section 1.8(b); provided, however, that notwithstanding anything to the contrary contained in this Subscription Agreement,
no Shares shall be transferred to any Other Investor pursuant to this Section 1.8(b) in the event that such Transfer (as
defined herein) would (x) violate the Securities Act, the Investment Company Act or any state (or other jurisdiction) securities
or “Blue Sky” laws applicable to the Fund or such Transfer (as defined herein), (y) constitute a non-exempt “prohibited
transaction” under Section 406 of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
or Section 4975 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”) or (z) cause all or any
portion of the assets of the Fund to constitute “plan assets” for purposes of ERISA or Section 4975 of the Code (it
being understood that this proviso shall operate only to the extent necessary to avoid the occurrence of the consequences described
in this sentence) (such consequences (x), (y) and (z), each a “Transfer Restriction”).

 

    6

     

    

 

(c)
Forfeiture of Shares.
The Fund may, in its sole discretion and as permitted by applicable law, transfer up to fifty
percent (50%) of the Shares then held by the Defaulting Subscriber on the books of the Fund, without any further action being
required on the part of the Defaulting Subscriber, to the Other Investors (other than any Defaulting Stockholders), pro rata in
accordance with their respective Capital Commitments; provided, however, that notwithstanding anything to the contrary contained
in this Subscription Agreement, no Shares shall be transferred to any Other Investor pursuant to this Section 1.8(c) in
the event that such transfer would result in any Transfer Restriction; provided, further, that any Shares that have not been transferred
to one or more Other Investors pursuant to the previous proviso shall be allocated among the participating Other Investors pro
rata in accordance with their respective Capital Commitments. The mechanism described in this Section 1.8(c) is intended
to operate as a liquidated damage provision, since the damage to the Fund and Other Investors resulting from a default by the
Defaulting Subscriber is both significant and not easily quantified. By entry into this Subscription Agreement, the Subscriber
agrees to this transfer and acknowledges that it constitutes a reasonable liquidated damage remedy for any default in the Subscriber’s
obligation of the type described.

 

(d)
Other Remedies. The
Fund may pursue any other remedies against the Defaulting Subscriber available to the Fund at law or in equity. No course of dealing
between the Fund and any Defaulting Stockholder and no delay in exercising any right, power or remedy conferred in this Section
1.8 or now or hereafter existing at law or in equity or otherwise shall operate as a waiver or otherwise prejudice any such
right, power or remedy. In addition to the foregoing, the Fund may in its discretion institute a lawsuit against the Defaulting
Subscriber for specific performance of its obligation to pay any Drawdown Purchase Price and any other payments to be made by
the Defaulting Subscriber pursuant to this Subscription Agreement and to collect any overdue amounts hereunder. Notwithstanding
any other provision of this Subscription Agreement, the Subscriber agrees (i) to pay on demand all costs and expenses (including
attorneys’ fees) incurred by or on behalf of the Fund in connection with the enforcement of this Subscription Agreement
against the Subscriber sustained as a result of any default by the Subscriber and (ii) that any such payment shall not constitute
payment of a Drawdown Purchase Price or reduce the Subscriber’s Capital Commitment. The Subscriber agrees that this Section
1.8 is solely for the benefit of the Fund and shall be interpreted by the Fund against the Defaulting Subscriber in the discretion
of the Fund. The Subscriber further agrees that the Subscriber cannot and will not seek to enforce this Section 1.8 against
the Fund or any other investor in the Fund.

 

(e)
Drawdown Notices.
The Fund shall be authorized to issue additional Drawdown Notices to non-Defaulting Subscribers
to make up for any short-fall caused by a Defaulting Subscriber’s failure to fund any Drawdown Notice, provided that no
Subscriber shall be obligated to fund more than its then Undrawn Commitment.

 

    7

     

    

 

ARTICLE
II

REPRESENTATIONS AND WARRANTIES BY THE SUBSCRIBER; INDEMNIFICATION

 

2.1. Representations
and Warranties by the Subscriber. The Subscriber represents and warrants to the Fund that:

 

(a) The
Subscriber understands that the offering and sale of the Shares are intended to be exempt from registration under the Securities
Act, applicable U.S. state securities laws and the laws of any non-U.S. jurisdictions by virtue of the private placement exemption
from registration provided in Section 4(a)(2) of the Securities Act, exemptions under applicable U.S. state securities laws and
exemptions under the laws of any non-U.S. jurisdictions, and the Subscriber agrees that any Shares acquired by the Subscriber
may not be Transferred (as defined below) in any manner that would require the Fund to register the Shares under the Securities
Act, under any U.S. state securities laws or under the laws of any non-U.S. jurisdictions. “Transfer” (or any derivative
thereof) shall mean to sell, offer for sale, agree to sell, exchange, transfer, assign, pledge, hypothecate, grant any option
to purchase or otherwise dispose of or agree to dispose of, in any case whether directly or indirectly.

 

(b) The
Subscriber is acquiring the Shares for the Subscriber’s own account, as principal, for investment purposes only, and not
with any intention to resell, distribute or otherwise dispose of the Shares, in whole or in part. No one other than the Subscriber
has any interest in or any right to acquire the Shares. The Subscriber understands and acknowledges that the Fund will have no
obligation to recognize the ownership, beneficial or otherwise, of such Shares by anyone but the Subscriber.

 

(c) The
Subscriber has been furnished with, has carefully read and has relied solely on (except for information obtained pursuant to paragraph
(e) below) the information contained in the Memorandum and this Subscription Agreement and the Subscriber has not relied on any
other offering literature or prospectus and no representations or warranties have been made to the Subscriber by the Fund or its
employees or agents, other than the representations as set forth in the Memorandum and this Subscription Agreement. The Subscriber
understands the various risks and conflicts of interests of the Fund, as well as the fees and other compensation to which the
Fund is subject. The Subscriber understands that Dechert LLP acts as counsel only to the Fund and does not represent the Subscriber
or any other person by reason of such person’s investment in the Fund.

 

(d) The
Subscriber acknowledges that the Shares were not offered to the Subscriber by any means of general solicitation or general advertising.
In that regard, the Subscriber is not subscribing for the Shares: (i) as a result of, or subsequent to, becoming aware of any
advertisement, article, notice or other communication published in any newspaper, magazine or similar medium, generally available
electronic communication, broadcast over television or radio or generally available to the public on the internet or worldwide
web; (ii) as a result of, or subsequent to, attendance at a seminar or meeting called by any of the means set forth in (i) above;
or (iii) as a result of, or subsequent to, any solicitations by a person not previously known to the Subscriber in connection
with investment in securities generally.

 

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(e) The
Subscriber has had an unrestricted opportunity to: (i) obtain additional information concerning the offering of Shares (the “Offering”),
the Shares, the terms and conditions of the Operative Documents, the Fund and any other matters relating directly or indirectly
to the Subscriber’s purchase of the Shares; and (ii) ask questions of, and receive answers from, the Fund concerning the
terms and conditions of the Offering and obtain such additional information as may have been necessary to verify the accuracy
of the information contained in the Memorandum or otherwise provided. None of the Fund, the Investment Advisor, the Administrator
nor anyone on their behalf has made any representations (whether written or oral) to the Subscriber (i) regarding the future performance
of the Fund or (ii) that the past performance of the Fund or their affiliates will in any way predict the results of the Fund’s
activities.

 

(f) The
Subscriber is an accredited investor within the meaning of Rule 501(a) of Regulation D promulgated under the Securities Act (an
“Accredited Investor”). In addition, the Subscriber has knowledge and experience in financial and business
matters so as to be capable of evaluating the relative merits and risks of an investment in the Fund. All information that the
Subscriber has provided concerning the Subscriber and the Subscriber’s financial position is true, correct and complete.

 

(g) The
Subscriber has not been subject to any disqualifying events, as defined under Rule 506(d) of Regulation D under the Securities
Act (a “Disqualifying Event”), or any proceeding or event that could result in a Disqualifying Event that would
either require disclosure under the provisions of Rule 506(e) of the Securities Act or result in disqualification under Rule 506(d)(1)
of the Fund’s reliance on the Rule 506 safe harbor. The Subscriber further represents and warrants that, unless it notifies
the Fund otherwise in writing, the Subscriber is not acting as part of a group (as such term is defined in Section 13(d) of the
Securities Act) with any other individuals or entities (including any existing or prospective investor in the Fund) for the purpose
of acquiring or holding the Shares.

 

(h) The
Subscriber is not relying on the Fund or any information in the Memorandum with respect to any legal, investment or tax considerations
involved in the purchase, ownership and disposition of the Shares. The Subscriber has relied solely upon the advice of, or has
consulted with, in regard to the legal, investment and tax considerations involved in the purchase, ownership and disposition
of the Shares, the Subscriber’s legal counsel, business and/or investment adviser, accountant and tax advisor.

 

(i) The
Subscriber has full power and authority to make the representations and warranties referred to herein, to purchase the Shares
and to execute and deliver this Subscription Agreement, and if the Subscriber is an entity, the partner, officer or trustee executing
this Subscription Agreement represents and warrants that he or she has full power and authority from all of the partners, the
board of directors or all of the trustees of such entity, as the case may be, to execute this Subscription Agreement on behalf
of such entity and that the purchase of the Shares is not prohibited by the governing documents of the entity or any applicable
laws.

 

(j) The
Subscriber understands that the Shares cannot be Transferred except in accordance with (1) the registration provisions of the
Securities Act or an exemption from such registration provisions, (2) any applicable U.S. federal or state or non-U.S. securities
laws and (3) the terms of this Subscription Agreement and the Operative Documents. The Subscriber further acknowledges that its
overall Capital Commitment to the Fund and other investments that are not readily marketable is not disproportionate to the Subscriber’s
net worth and the Subscriber has no need for immediate liquidity of the Subscriber’s investment in the Fund.

 

    9

     

    

 

(k) The
Subscriber understands that the Fund intends to file or has filed an election to be treated as a BDC under the Investment Company
Act and intends to elect or has elected to be treated as a “regulated investment company” within the meaning of Section
851 of the Code for U.S. federal income tax purposes. Pursuant to these elections, the Subscriber shall be required to furnish
certain information to the Fund as required under U.S. Treasury Regulation §1.852-6(a) and other regulations. If the Subscriber
is unable or refuses to provide such information directly to the Fund, the Subscriber understands that it shall be required to
include additional information on its income tax return as provided in U.S. Treasury Regulation § 1.852-7.

 

(l) None
of the information concerning the Subscriber nor any statement, certification, representation or warranty made by the Subscriber
in this Subscription Agreement or in any document required to be provided under this Subscription Agreement (including any Form
W-9 or the relevant Forms W-8 (W-8BEN, W-8BEN-E, W-8IMY, W-8ECI or W-8EXP), as applicable, contains any untrue statement of a
material fact or omits to state a material fact necessary in order to make the statements contained therein or herein not misleading.

 

(m) The
Subscriber has read and understands the provisions of the Memorandum. In particular, the Subscriber has carefully reviewed the
various risks of an investment in the Fund, including the risks summarized under “RISK FACTORS” in the Memorandum.
In addition, the Subscriber understands that various potential and actual conflicts of interest may arise from the overall investment
activities of the Investment Advisor and the Fund, and the Subscriber has carefully reviewed the various conflicts summarized
under “POTENTIAL CONFLICTS OF INTEREST” in the Memorandum. The Subscriber consents to such potential and actual conflicts
of interest and hereby waives any claim with respect to the existence of any such conflict of interest.

 

(n) The
Subscriber has obtained, in its judgment, sufficient information from the Fund and any of its authorized representatives, to evaluate
the merits and risks of an investment in the Fund, and that after all necessary advice and analysis, has determined that its investment
in the Fund is suitable and appropriate and further, that the Subscriber is willing and able to bear the economic and other risks
of an investment in the Fund for an indefinite period of time.

 

(o) The
Subscriber understands the investment objectives and policies of, and the investment strategies that may be pursued by, the Fund
and the Investment Advisor with respect to the Fund. The purchase of Shares by the Subscriber is consistent with the investment
purposes and objectives and cash flow requirements of the Subscriber and will not adversely affect the Subscriber’s overall
need for diversification and liquidity.

 

(p) The
Subscriber maintains the Subscriber’s domicile, and is not merely a transient or temporary resident, at the principal address
shown on the signature page of this Subscription Agreement.

 

(q) The
Subscriber acknowledges and agrees that any changes made by the Subscriber to any of the documents delivered to the Subscriber
in connection with the Offering shall not be effective unless the Fund consents to such changes.

 

    10

     

    

 

(r) The
Subscriber has not reproduced, duplicated, distributed or delivered the Memorandum or the Operative Documents to any other person,
except to the Subscriber’s professional advisors or as instructed by the Fund.

 

(s) The
Subscriber acknowledges and agrees that amounts paid to the Subscriber will be paid to the account indicated on the signature
page hereto unless written instructions are received from the Subscriber to the effect that payments are to be made to another
account. The Fund reserves the right to object to the Subscriber’s choice of another account in its sole and absolute discretion.

 

(t)
Prospective Subscribers should check the Treasury Department’s Office of Foreign Assets Control (“OFAC”) website
at http://www.treas.gov/ofac before making the following representations.

 

The
Subscriber represents that any amounts it will contribute to the Fund will not be directly or indirectly derived from activities
that may contravene U.S. Federal, state and international laws and regulations, including anti-money laundering laws.

 

OFAC
prohibits, among other things, the engagement in transactions with, and the provisions of services to, certain foreign countries,
territories, entities and individuals. The lists of OFAC prohibited countries, territories, persons and entities can be found
on the OFAC website.

 

The
Subscriber hereby represents and warrants, to the best of its knowledge, that none of:

 

		(i)	the
                                         Subscriber;

 

		(ii)	any
                                         person controlling, controlled by or under common control with, the Subscriber;

 

		(iii)	if
                                         the Subscriber is a privately held entity, any person having a beneficial interest in
                                         the Subscriber; or

 

		(iv)	any
                                         person for whom the Subscriber is acting as agent or nominee in connection with this
                                         investment

 

		(A)	is
                                         a country, territory, individual or entity named on an OFAC list, or is an individual
                                         or entity that resides or has a place of business in a country or territory named on
                                         such lists;

 

    11

     

    

 

		(B)	is
                                         a senior foreign political figure1, or any immediate family member2
                                         or close associate3 of a senior foreign political figure within the meaning
                                         of the Department of Treasury’s Guidance on Enhanced Scrutiny for Transactions
                                         That May Involve the Proceeds of Foreign Official Corruption4 and as referenced
                                         in the USA PATRIOT Act of 2001, as amended (the “Patriot Act”);5
                                         or

 

		(C)	is
                                         a “foreign shell bank”6 or transacts business with a “foreign
                                         shell bank”.

 

The
Subscriber agrees to promptly notify the Fund should the Subscriber become aware of any change in the information set forth in
these representations. The Subscriber is advised that, by law, the Fund may be obligated to “freeze the account” of
the Subscriber by prohibiting additional contributions, refusing to process a distribution to Subscriber or suspending other rights
the Subscriber may have under this Subscription Agreement or the Operative Documents, and the Fund may also be required to report
such action and to disclose the Subscriber’s identity to OFAC.

 

The
Subscriber understands that the Fund may not accept any contributed amounts from the Subscriber if it cannot make the representations
set forth above and the Fund may return any contributed amounts to the Subscriber if the information provided to the Fund is incomplete
or is deemed suspicious.

 

If
the Subscriber is an investment entity, then the Subscriber hereby represents and warrants to the Fund that the Subscriber is
aware of the requirements of the Patriot Act, the regulations administered by OFAC and other applicable U.S. Federal, state or
non-U.S. anti-money laundering laws and regulations (collectively, the “anti- money laundering/OFAC laws”).
The Subscriber further represents and warrants that it has anti-money laundering policies and procedures in place reasonably designed
to verify the identity of its beneficial owners and/or underlying investors (as applicable) and their sources of funds. Such policies
and procedures are properly enforced and are consistent with the anti-money laundering/OFAC laws. The Subscriber hereby represents
and warrants to the Fund that, to the best of its knowledge, the Subscriber’s beneficial owners and/or underlying investors
(as applicable) are not individuals, entities or countries that may subject the Fund to criminal or civil violations of any anti-money
laundering/OFAC laws. The Subscriber hereby acknowledges and agrees that the Fund, or any other party on behalf of the Fund, may
be required and shall be entitled to reveal any information regarding the Fund and the Subscriber’s investment in the Fund,
including details of the Subscriber’s identity, to their regulators and/or any other government agency within their jurisdiction,
as they shall, in their sole and absolute discretion, consider appropriate. The Subscriber will promptly provide any additional
documentation the Fund may request in the future to the extent the Fund determines necessary in order to comply with applicable
anti-money laundering laws or policies or other applicable laws.

 

 

		1	A
                                         “senior foreign political figure” is defined as a current or former senior
                                         official in the executive, legislative, administrative, military or judicial branches
                                         of a non-U.S. government (whether elected or not); a senior official of a major non-U.S.
                                         political party; or a senior executive of a non-U.S. government-owned commercial enterprise.
                                         In addition, a “senior foreign political figure” includes any corporation,
                                         business or other entity that has been formed by, or for the benefit of, a senior foreign
                                         political figure. Senior executives are individuals with substantial authority over policy,
                                         operations or the use of government-owned resources.

		2	“Immediate
                                         family” of a senior foreign political figure typically includes the figure’s
                                         parents, siblings, spouse, children and in-laws.

		3	A “close
                                         associate” of a senior foreign political figure is a person who is widely and publicly
                                         known to maintain an unusually close relationship with the senior foreign political figure,
                                         and includes a person who is in a position to conduct substantial domestic and international
                                         financial transactions on behalf of the senior foreign political figure.

		4	For a more
                                         extensive discussion of the preceding terms and definitions, see http://www.federalreserve.gov/boarddocs/srletters/2001/sr0103a1.pdf.

		5	The Uniting
                                         and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct
                                         Terrorism Act of 2001, Pub. L. No. 107-56 (2001).

		6	A
                                         “foreign shell bank” is a foreign bank that does not have a physical presence
                                         in any country.

 

    12

     

    

 

(u) The
Subscriber has indicated in Section 6.5 whether it is a “Benefit Plan Investor”. If it is not a Benefit Plan
Investor on the date this Subscription Agreement is signed, the Subscriber agrees to notify the Fund in writing in advance if
it anticipates becoming a Benefit Plan Investor at any time while it continues to hold any Shares in the Fund and to provide the
information concerning its Benefit Plan Investor status required in Section 6.5. If the Subscriber is an entity that is
a Benefit Plan Investor, it has indicated in Section 6.5 the percentage of its equity interests that are held by Benefit
Plan Investors and will promptly notify the Fund in writing if that percentage changes.

 

(v) If
the Subscriber is an insurance company and is investing the assets of its general account (or the assets of any wholly-owned subsidiary
of its general account) in the Fund, it has indicated in Section 6.5 whether its assets include “plan assets”
under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and the percentage of its
assets that constitute “plan assets”. The Subscriber will promptly notify the Fund in writing if that percentage changes.

 

(w) If
the Subscriber is a Benefit Plan Investor, the Subscriber acknowledges that it is intended that the Fund will not hold “plan
assets”, as described in Section 6.5, of any Benefit Plan Investor that acquires Interests in the Fund. Accordingly,
the Subscriber agrees that the Fund may at any time require the Subscriber to sell all or any portion of its Shares as, in the
opinion of the Fund, is necessary to attempt to ensure that the assets of the Fund do not include “plan assets”.

 

(x) If
the Subscriber is or will be, or is or will be acting on behalf of, an ERISA Plan or a Tax-Favored Plan, as those terms are defined
in Section 6.5, or an entity that is a “Benefit Plan Investor” by reason of holding plan assets of any ERISA
Plan or Tax-Favored Plan as described in Section 6.5 (each of the foregoing, a “Plan”): (i) the
person or entity signing this Subscription Agreement is a fiduciary of each the Plan (the “Plan Fiduciary”);
(ii) the decision to invest in the Fund was made by the Plan Fiduciary; (iii) the Plan Fiduciary is unrelated to the Fund and
the Investment Advisor and any person affiliated therewith and is duly authorized to make such an investment decision on behalf
of the Plan; (iv) the acquisition and subsequent holding of the Shares do not and will not constitute a non-exempt “prohibited
transaction” within the meaning of Section 406 of ERISA or Section 4975 the Code; (v) the Plan’s subscription to invest
in the Fund and the purchase of Shares contemplated hereby is in accordance with the terms of the Plan’s governing instruments;
and (vi) the Plan Fiduciary has not relied on, and is not relying on, the investment advice of the Fund nor any of its directors,
officers, employees, or representatives with respect to the Plan’s investment in the Fund, and neither the Fund nor any
of its directors, officers, employees, or representatives, has any investment discretion with respect to the assets of the Plan
which will be used to purchase the Shares.

 

    13

     

    

 

(y) If
the Subscriber is a “governmental plan” within the meaning of Section 3(32) of ERISA, a “church” plan
within the meaning of Section 3(33) of ERISA, a non-U.S. plan or other plan subject to any federal, state, local or non-U.S. law
similar to the fiduciary responsibility provisions of Title I of ERISA or to Section 4975 of the Code (collectively, “Other Plans”),
or a trust, partnership, limited liability company or other entity that is deemed to hold assets of an Other Plan under applicable
law, then the Subscriber represents, warrants and agrees that: (i) the assets of the Fund will not be considered to include the
assets of such Other Plan under the provisions of applicable law as a result of the Subscriber’s investment in the Fund;
(ii) there is no federal, state, local or non-U.S. law, rule, regulation or constitutional provision applicable to the Other Plan
that could in any respect affect the operation of the Fund, or prohibit any action contemplated by the Fund’s governing
documents or related disclosures; and (iii) the Subscriber’s investment in the Fund is in accordance with the constituent
documents of the Other Plan and will not result in a breach of any law, statute, rule, regulation or order of any court or governmental
agency or body having jurisdiction over the Subscriber or any of its assets, including, without limitation, any law substantially
similar to the prohibited transaction provisions of Section 406 of ERISA or Section 4975 of the Code.

 

(z) In
the event that the Subscriber is acting as agent, representative or nominee for another party (a “Beneficial Owner”),
the Subscriber understands and acknowledges that the representations, warranties and agreements made herein are made by the Subscriber:
(i) with respect to the Subscriber; and (ii) with respect to each Beneficial Owner of the Shares subscribed for hereby. The Subscriber
represents and warrants that the Subscriber has all requisite power and authority from said Beneficial Owner(s) to execute and
perform the obligations under this Subscription Agreement and has anti-money laundering policies and procedures in place reasonably
designed to verify the identity of each Beneficial Owner and the sources of each Beneficial Owner’s funds. Such policies
and procedures are properly enforced and are consistent with anti-money laundering/OFAC laws such that the Fund may rely on this
representation. The Subscriber agrees, except to the extent specifically prohibited by applicable law, to indemnify the Fund and
its officers, agents and affiliates for any and all costs, fees and expenses (including reasonable legal fees and disbursements)
in connection with any damages resulting from the Subscriber’s or any Beneficial Owner’s misrepresentation or misstatement
contained herein, or the assertion of the Subscriber’s lack of proper authorization from each Beneficial Owner of the Shares
subscribed for hereby to enter into this Subscription Agreement or perform the obligations thereof.

 

(aa)The
Subscriber acknowledges and agrees that the Fund may release and disclose to any service provider to the Fund, to regulatory,
taxing or law enforcement authorities in any applicable jurisdiction to which any of the Fund and/or the Investment Advisor is
or may be subject, copies of this Subscription Agreement and Subscription Documents Booklet and confidential information concerning
the Subscriber, and if applicable, person(s) with a direct or indirect beneficial interest in the Shares or in the Subscriber
itself, in their respective possession, whether provided by the Subscriber to the Fund or otherwise, including details of the
Subscriber’s holdings in the Fund, historical and pending transactions in the Shares and the values thereof, if the Fund
in its sole and absolute discretion, determines that it is required or advisable to do so in order to ensure compliance with applicable
law. Any such disclosure pursuant to the foregoing shall not be treated as a breach of any restriction upon the disclosure of
information imposed on any of the Fund or any other such person, by law or otherwise.

 

    14

     

    

 

(bb)The
Subscriber acknowledges, understands and agrees that it may receive or have access to confidential information relating to the
Investment Advisor and the Fund, including, without limitation, underlying investments, portfolio positions, valuations, information
regarding potential investments and all financial and performance information (collectively, “Confidential Information”),
which is proprietary in nature and nonpublic. Whether or not this Subscription Agreement is accepted by the Fund, the Subscriber
covenants and agrees that it shall not directly or indirectly, use, utilize or communicate or otherwise disclose such Confidential
Information to any person or entity for any purpose whatsoever except: (i) as required by law; (ii) as permitted in writing by
the Fund; or (iii) to the extent that such Confidential Information becomes public, other than from a violation of such Subscriber
of this Subscription Agreement. Furthermore, the Subscriber has not reproduced, duplicated or delivered the Memorandum, this Subscription
Agreement, the Operative Documents or any other document provided by the Fund to any other person, except professional advisers
to the Subscriber or as instructed by the Fund.

 

(cc)Notwithstanding
anything else contained in this Subscription Agreement, the Subscriber may disclose to any and all persons, without limitation
of any kind, the tax treatment and tax structure (as such terms are used in Sections 6011, 6111 and 6112 of the Code and the Treasury
Regulations promulgated thereunder) of its investment in the Fund, its former investment in the Fund (if the Subscriber has withdrawn
from the Fund) and any transactions entered into by the Fund or pursuant to this Subscription Agreement, and all materials of
any kind (including opinions or other tax analyses) that are provided to the Subscriber relating to such tax treatment and tax
structure; provided that the Subscriber shall not disclose any information for which nondisclosure is reasonably necessary in
order to comply with applicable law.

 

(dd)If
the Subscriber is an individual retirement account (“IRA”) or a self-directed pension plan, and this Subscription
Agreement is being executed by a custodian or a directed trustee on behalf of such Subscriber, the individual who established
the IRA or the person who directed the pension plan’s investment in the Fund, as the case may be: (i) has directed the custodian
or trustee of the Subscriber to execute this Subscription Agreement on the line set forth below for Authorized Signatory; (ii)
has exclusive authority with respect to the decision to invest in the Fund; and (iii) has signed below to indicate that he or
she has reviewed, directed and certifies to the accuracy of the representation and warranties made by the Subscriber herein.

 

(ee)(i)The
Subscriber understands, acknowledges and agrees that pursuant to Sections 1471 through 1474 of the Code, (or any amended or successor
version) and any current or future regulations promulgated under such Sections or any official interpretations thereof (“FATCA”)
the Fund is required to obtain from Subscriber certain identifying information, including, without limitation, name and address,
and documentation, about Subscriber and Subscriber’s direct and indirect owners, and whether Subscriber or any such owner
is a U.S. person or entity, and other tax-related information and documentation (collectively, the “FATCA Information”).

 

    15

     

    

 

(ii)The
Subscriber (A) agrees to promptly deliver all FATCA Information upon request by the Fund, the Investment Advisor or the Administrator
and to certify such information in such form as may be required, and (B) understands, acknowledges and agrees that the FATCA Information
may be disclosed to the Internal Revenue Service (the “IRS”) and other governmental tax authorities by the
Fund, the Investment Advisor or the Administrator.

 

(iii)The
Subscriber understands, acknowledges and agrees that if the Subscriber does not provide the requested FATCA Information, the Fund
may, at its sole option and in addition to all other remedies available at law or in equity, immediately redeem the Subscriber’s
Shares in accordance with the procedures set forth elsewhere herein or prohibit the Subscriber from purchasing additional Shares
or participating in additional investments in the Fund, decline or delay redemption requests, if any, by the Subscriber and/or
deduct from such Subscriber’s account and retain amounts sufficient to indemnify and hold harmless the Fund from any and
all withholding taxes, interest, penalties and other losses or liabilities suffered by the Fund on account of the Subscriber’s
not providing all requested FATCA Information in a timely manner, and to ensure that such withholding taxes, interest, penalties
and other losses or liabilities are economically borne by the Subscriber. The Subscriber shall have no claim against the Fund,
the Administrator, the Investment Adviser or any of their respective affiliates for any form of damages or liability as a result
of any of the aforementioned actions.

 

(iv)The
Subscriber further agrees to notify the Fund, the Investment Advisor and the Administrator immediately of any change in any of
the FATCA Information previously provided to the Fund, the Investment Advisor or the Administrator. In the event of any change
in the applicable status of Subscriber for purposes of FATCA or the FATCA Agreements, the Subscriber hereby agrees to promptly
inform the Fund, the Investment Advisor and the Administrator thereof and execute and deliver any applicable new IRS Forms or
other tax-related documentation and information as necessary for the Fund to comply with its obligations under FATCA.

 

2.2. Additional
Information and Subsequent Changes. The Fund may request from the Subscriber such additional information as it may deem necessary
to evaluate the eligibility of the Subscriber to acquire the Shares. The Fund and/or the Investment Advisor from time to time
may also request additional information from the Subscriber to enable them to determine their compliance with applicable regulatory
requirements, to preserve the Fund’s tax status, and/or for other reasons, including, without limitation, information regarding
the Subscriber (and its beneficial owner) that will enable the Fund to comply with its tax reporting and withholding obligations,
including its obligations set forth under Code Sections 1471-1474 and the Treasury Regulations thereunder. The Subscriber agrees
to provide such information as may reasonably be requested.

 

The
Subscriber also agrees to promptly notify the Fund in writing if there is any change with respect to any of the information or
representations made herein.

 

    16

     

    

 

2.3. Exculpation.
The Subscriber hereby agrees that none of the Fund or any of its affiliates, officers, directors, principals, members or employees,
shall incur any liability (i) in respect of any action taken upon any information provided to the Fund by the Subscriber or for
relying on any notice, consent, request, instructions or other instrument believed, in good faith, to be genuine or to be signed
by properly authorized persons on behalf of the Subscriber, including any document transmitted by facsimile, or (ii) for adhering
to the anti-money laundering obligations set out herein or anti-money laundering laws and regulations of the United States or
any similar law whether nor or hereinafter in effect.

 

2.4.
Indemnification. The Subscriber understands that the acceptance of its offer to subscribe for the Shares was made in reliance
upon the Subscriber’s representations and warranties set forth in this Article II. The Subscriber hereby agrees, except
to the extent specifically prohibited by applicable law, to indemnify the Fund, the Investment Advisor, the Administrator and
each of their respective affiliates and to defend and hold each of them harmless from and against any loss, claim, damage, liability,
cost or expense (including reasonable legal fees and disbursements) due to or arising out of a breach of any representation, warranty
or agreement of the Subscriber contained in this Subscription Agreement or in any other document provided by the Subscriber to
the Fund in connection with the Subscriber’s purchase of the Shares. The Subscriber hereby agrees, except to the extent
specifically prohibited by applicable law, to indemnify the Fund, the Investment Advisor, the Administrator and each of their
respective affiliates, and to defend and hold each of them harmless against all losses, claims, damages, liabilities, costs or
expenses (including reasonable legal fees and disbursements) arising as a result of the sale or distribution of the Shares or
any part thereof by the Subscriber in violation of the Securities Act or other applicable law or any misrepresentation or breach
by the Subscriber with respect to the matters set forth herein. The Subscriber hereby agrees, except to the extent specifically
prohibited by applicable law, to indemnify the Fund, the Investment Advisor, the Administrator and each of their respective affiliates,
and to defend and hold each of them harmless against all losses, claims, damages, liabilities, costs or expenses (including reasonable
legal fees and disbursements) arising as a result of its or their reliance on facsimile or other instructions, or the assertion
of the Subscriber’s lack of proper authorization from the beneficial owner(s) to execute and perform the obligations under
this Subscription Agreement. In addition, the Subscriber agrees, except to the extent specifically prohibited by applicable law,
to indemnify the Fund, the Investment Advisor, the Administrator and each of their respective affiliates and to defend and hold
each of them harmless from and against any and all loss, claim, damage, liability, cost or expense (including reasonable legal
fees and disbursements) to which they may be put or which they may incur or sustain by reason of or in connection with any misrepresentation
made by the Subscriber with respect to the matters about which representations and warranties are required by the terms of this
Subscription Agreement, or any breach of any such warranties or any failure to fulfill any covenants or agreements set forth herein
or included in the Memorandum. The Subscriber acknowledges that due to anti-money laundering/OFAC laws operating within their
respective jurisdictions, the Fund, and any entity acting on the Fund’s behalf, may require further identification of the
Subscriber before applications can be processed. The Subscriber agrees that the Fund, the Investment Advisor, and the Administrator
shall be held harmless and indemnified by the Subscriber against any loss arising from the failure to process this application
if such information as has been required from the Subscriber has not been provided by the Subscriber. Notwithstanding
any provisions of this Subscription Agreement, the Subscriber does not waive any rights granted to it under applicable securities
laws.

 

    17

     

    

 

ARTICLE
III

REPRESENTATIONS AND WARRANTIES BY THE FUND

 

3.1. Representations
and Warranties by the Fund. The Fund represents and warrants to the Subscriber that:

 

(a) At
the Closing and on the first Drawdown Date, the Fund will be duly organized, validly existing and in good standing under the laws
of Maryland; (ii) the Fund will have all requisite power and authority to sell the Shares as provided herein; (iii) the sale of
the Shares will not violate or conflict with any provision document or instrument by which the Fund is bound as of the first Drawdown
Date; (iv) the sale of the Shares will have been duly authorized by all necessary action on the Fund’s behalf; and (v) this
Subscription Agreement will have been duly executed and delivered by the Fund and will constitute a legal, valid and binding agreement
of the Fund.

 

(b) On
the first Drawdown Date, the Fund will have full power to conduct its business as described in the Memorandum.

 

(c) Neither
the execution nor the delivery of this Subscription Agreement, nor the consummation of the transactions as contemplated herein,
nor compliance with the terms, conditions or provisions hereof will result in a breach or violation of any of the terms or provisions
or constitute a default under any agreement or instrument to which the Fund is a party.

 

(d) To
the actual knowledge of the Fund, there are no legal or governmental proceedings pending to which the Fund is a party or to which
any of the Fund property at the date hereof is subject.

 

ARTICLE
IV

TRANSFERABILITY

 

4.1. General
Restrictions on Transfer.

 

(a) Prior
to any Liquidity Event, the Subscriber may not Transfer all or any portion of its Shares or Capital Commitment unless the Transfer
is made in accordance with applicable securities laws and is otherwise in compliance with the transfer restrictions set forth
in Appendix E. Each transferee must agree to be bound by these restrictions and all other obligations as an investor in
the Fund. Following a Liquidity Event, the Subscriber shall be restricted from selling or disposing of its Shares by applicable
securities laws, contractually by a lock-up agreement pursuant to the terms of Section 4.2(a) and with the underwriters
of the Qualified IPO, if any.

 

(b) The
Subscriber acknowledges that the Subscriber is aware and understands that there are other substantial restrictions on the transferability
of its Capital Commitment or Shares under this Subscription Agreement, the Charter and applicable law, including the fact that
(A) there is no established market for the Shares and it is possible that no public market for the Shares will develop; (B) the
Shares are not currently, and Shareholders have no rights to require that the Shares be, registered under the Securities Act or
the securities laws of the various states or any non-U.S. jurisdiction, and therefore the Shares cannot be Transferred unless
subsequently registered or unless an exemption from such registration is available; and (C) the Subscriber may have to hold the
Shares herein subscribed for and bear the economic risk of this investment indefinitely, and it may not be possible for the Subscriber
to liquidate its investment in the Fund.

 

    18

     

    

 

(c) Notwithstanding
any other provisions of this Subscription Agreement, the Subscriber covenants that it shall not Transfer all or any part of the
Shares or its Capital Commitment (or purport to do so) if such Transfer would cause (A) the Fund or the Investment Advisor to
be in violation of the U.S. Bank Secrecy Act, as amended, the U.S. Money Laundering Control Act of 1986, as amended, the Patriot
Act, or any similar U.S. federal, state or non-U.S. law or regulation; or (B) the Shares to be held by a country, territory, entity
or individual currently subject to any U.S. sanctions administered by OFAC or any entity or individual that resides or has a place
of business in, or is organized under the laws of, a country or territory that is subject to any sanctions administered by OFAC.

 

4.2. Liquidity
Event-Related Restrictions.

 

(a)
The Subscriber agrees that for a period beginning on the closing date of any Liquidity Event, and continuing to and including
at least 360 calendar days thereafter, the Subscriber shall not, without the prior written consent of the Fund and unless in accordance
with applicable securities and other laws, (i) Transfer any portion of its Capital Commitment, (ii) sell, offer to sell, contract
or agree to sell, hypothecate, pledge, grant any option to purchase or otherwise dispose of or agree to dispose of, directly or
indirectly, or file (or participate in the filing of) a registration statement with the SEC in respect of, or establish or increase
a put equivalent position or liquidate or decrease a call equivalent position within the meaning of Section 16 of the Exchange
Act, and the rules and regulations of the SEC promulgated thereunder with respect to, any Shares of the Fund or any securities
convertible into or exercisable or exchangeable for common stock, or warrants or other rights to purchase Shares, (iii) enter
into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership
of Shares or any securities convertible into or exercisable or exchangeable for Shares, or warrants or other rights to purchase
Shares, whether any such transaction is to be settled by delivery of Shares or such other securities, in cash or otherwise, or
(iv) publicly announce an intention to effect any transaction specified in clauses (i), (ii) or (iii) (collectively, the “Prohibited
Activities”). The Subscriber agrees that the specific terms of the foregoing restrictions on Prohibited Activities,
including the exact time periods of such restrictions, and any other limitations on the sale of Shares in connection with or following
a Liquidity Event shall be agreed prior to the Liquidity Event between, on the one hand, the Board and/or the Investment Advisor,
acting on behalf of the Stockholders, and on the other hand, the underwriters or other similar institutions, acting on the Fund’s
behalf, in connection with a Liquidity Event, and that the Subscriber shall be bound by any such terms and limitations.

 

    19

     

    

 

ARTICLE
V

SPECIAL POWER OF ATTORNEY

 

5.1. Power
of Attorney and Irrevocable Proxy.

 

(a) The
Subscriber hereby irrevocably makes, constitutes and appoints the Fund (hereinafter, the “Attorney”), as the
Subscriber’s true and lawful agent, proxy and attorney-in-fact, with full power of substitution and full power and authority
in its name, place and stead for its use and benefit, to approve, make, execute, sign, acknowledge, swear to, record and file:

 

(1) all
instruments, documents and certificates which, from time to time, may be required by the law of the United States of America,
the State of Maryland or any state in which the Fund shall determine to do business, or any political subdivision or agency thereof,
to execute, implement and continue the valid and subsisting existence of the Fund, or which the Fund deems to be advisable to
file;

 

(2) any
and all filings required to be made by the Subscriber under the Exchange Act with respect to any of the Fund’s securities
that may be deemed to be beneficially owned by the Subscriber under the Exchange Act;

 

(3) all
certificates and other instruments deemed advisable by the Fund in order for the Fund to enter into any borrowing or other financing
arrangement and to grant any pledge or other security interest, including over the Subscriber’s Capital Commitment or Shares,
in connection therewith;

 

(4) all
certificates and other instruments deemed advisable by the Fund to comply with the provisions of this Subscription Agreement and
applicable law or regulation to permit the Fund to become or to continue as a BDC;

 

(5) all
conveyances and other instruments necessary or appropriate to effect the dissolution and liquidation of the Fund including, but
not limited to, any stockholder vote to effect the same;

 

(6) all
other instruments or papers not inconsistent with the terms of this Subscription Agreement that may be required by law to be filed
on behalf of the Fund; and

 

(7) any
amendment or modification to any of the foregoing and all other certificates, instruments and documents which said attorney-in-fact
determines in its sole discretion are necessary or desirable to effect the provisions of this Subscription Agreement or any Other
Subscription Agreement and the purposes of the Fund.

 

(b) The
Attorneys shall have full power and authority to do and perform each and every act and thing whatsoever requisite and necessary
relating to the foregoing as fully as the Subscriber might or could do if personally present and the Subscriber hereby ratifies
and confirms all that said Attorneys shall lawfully do or cause to be done by virtue hereof.

 

    20

     

    

 

(c) It
is expressly understood and intended by the Subscriber that the power of attorney hereby granted is coupled with an interest and
shall be irrevocable. Said power of attorney may be exercised by the Fund either by signing separately as attorney-in-fact for
the Subscriber, voting the Shares consistent with the foregoing power of attorney, or, after listing all of the Investors executing
an instrument, by a single signature of the Fund acting as attorney-in-fact for all of them. Said power of attorney shall survive
the death, incapacity, dissolution or termination of the Subscriber or the assignment of the Subscriber’s Shares or any
part thereof.

 

(d) This
power of attorney does not supersede the terms of this Subscription Agreement or any written agreement between the Fund and the
Subscriber nor is it to be used to deprive the Subscriber of its rights as a Stockholder (following the closing of any purchase
of Shares), and is intended only to provide a simplified system for execution of documents. The Subscriber shall execute and deliver
to the Fund, within five days after the receipt of a request therefor, such confirmatory powers of attorney as the Fund may request.

 

ARTICLE
VI

SUITABILITY REQUIREMENTS

 

6.1.
General. The information contained herein is being furnished to the Fund in order for the Fund to determine whether the
Subscription may be accepted pursuant to Section 4(a)(2) of the Securities Act and/or Rule 506 of Regulation D. The Subscriber
understands that: (i) the Fund will rely upon the following information; (ii) the Shares will not be registered under the Securities
Act in reliance upon the exemptions from registration provided by Section 4(a)(2) of the Securities Act and/or Rule 506 of Regulation
D; and no subscription for Shares will be
accepted unless the Subscriber is an Accredited Investor. In accordance with the foregoing,
the Subscriber makes the representations and warranties to the Fund as set forth in Section 6.2 (if an individual), Sections
6.3 (if any entity), 6.4 (if an entity), 6.5 (all Subscribers), 6.7 (all Subscribers), 6.8 (all
Subscribers) and 6.9 (all Subscribers), as applicable. If the Subscriber is an IRA, please complete Section 6.2
with respect to the Subscriber’s beneficial owner.

 

6.2. Individual
Qualification as an Accredited Investor. In order to qualify as an Accredited Investor, the Subscriber must meet one of the
following criteria:

 

(Please
check the box at the end of each applicable Section)

 

		1.	The
                                         Subscriber is a natural person whose individual net worth, or joint net worth with that
                                         person’s spouse, at the time of purchase, exceeds $1,000,000 (excluding the value
                                         of the primary residence of such natural person and any indebtedness secured by the residence,
                                         but including indebtedness secured by the residence in excess of its estimated fair market
                                         value and any indebtedness incurred 60 days before the proposed Closing (unless such
                                         indebtedness is used to purchase the residence)): ☐

 

		2.	The
                                         Subscriber is a natural person who has had income in excess of $200,000 in each of the
                                         two most recent years or joint income with the Subscriber’s spouse in excess of
                                         $300,000 in each of those years and has a reasonable expectation of reaching the same
                                         in the current year: ☐

 

    21

     

    

 

		3.	The
                                         Subscriber is a director, executive officer, or general partner of the Fund, or a director,
                                         executive officer, or general partner of the Investment Advisor of the Fund: ☐

 

6.3. Entity
Qualification as an Accredited Investor. In order to qualify as an Accredited Investor, the Subscriber must meet one of the
following criteria:

 

(Please
check the box at the end of each applicable Section)

 

		1.	A
                                         bank as defined in Section 3(a)(2) of the Securities Act, or any savings and loan association
                                         or other institution as defined in Section 3(a)(5)(A) of the Securities Act, whether
                                         acting in its individual or fiduciary capacity: ☐

 

		2.	A
                                         broker or dealer registered pursuant to Section 15 of the Exchange Act: ☐

 

		3.	An
                                         insurance company as defined in Section 2(13) of the Securities Act: ☐

 

		4.	An
                                         investment company registered under the Investment Company Act: ☐

 

		5.	A
                                         business development company as defined in Section 2(a)(48) of the Investment Company
                                         Act: ☐

 

		6.	A
                                         Small Business Investment Company licensed by the Small Business Administration under
                                         Section 301(c) or (d) of the Small Business Investment Act of 1958, as amended: ☐

 

		7.	A
                                         private business development company as defined in Section 202(a)(22) of the Advisers
                                         Act: ☐

 

		8.	An
                                         employee benefit plan within the meaning of Title I of ERISA: (a) whose investment decisions
                                         are made by a plan fiduciary, as defined in Section 3(21) of ERISA, which is either a
                                         bank, insurance company or registered investment adviser; or (b) having total assets
                                         in excess of $5,000,000; or (c) if self-directed, the investment decisions are made solely
                                         by persons that are Accredited Investors: ☐

 

    22

     

    

 

		9.	An
                                         organization described in Section 501(c)(3) of the Code, corporation, Massachusetts or
                                         similar business trust, or company, not formed for the specific purpose of acquiring
                                         an Interest, with total assets in excess of $5,000,000: ☐

 

		10.	A
                                         trust, with total assets in excess of $5,000,000 not formed for the specific purpose
                                         of acquiring an Interest, whose purchase is directed by a sophisticated investor as described
                                         in Rule 506(b)(2)(ii) promulgated by the SEC under the Securities Act: ☐

 

		11.	A
                                         plan which has total assets in excess of $5,000,000 and which is established and maintained
                                         by a state, its political subdivisions, or any agency or instrumentality of a state or
                                         its political subdivisions for the benefit of its employees: ☐

 

		12.	A
                                         revocable trust which may be amended or revoked at any time by the grantors thereof,
                                         and all such grantors are Accredited Investors: ☐

 

		13.	An
                                         entity in which all of the equity owners are Accredited Investors: ☐

 

6.4. Additional
Representations for Entities. If the Subscriber is a corporation, company, trust or other entity, the Subscriber must complete
each applicable item below:

 

		1.	Have
                                         the beneficial owners of the Subscriber’s securities been provided the opportunity
                                         to decide whether or not to participate, or the extent of their participation, in particular
                                         investments made by the Subscriber, including the Subscription (i.e., the investors
                                         in the Subscriber have been permitted to determine whether their capital will form part
                                         of the specific capital invested by the Subscriber in the Fund)?

 

Yes ☐  No  ☐

 

If
the Subscriber answered “Yes” to item 1, please complete items 2 and 3 below. Otherwise, please proceed to Section
6.5.

 

		2.	Each
                                         such beneficial owner participating in the Subscription is an Accredited Investor:

 

Yes  ☐  No  ☐

 

		3.	Please
                                         indicate the total number of the Subscriber’s beneficial owners participating in
                                         the Subscription: ____________________

 

		4.	Please
                                         indicate the date of formation of the Subscriber:

 

____________________

 

    23

     

    

 

6.5. Benefit
Plan Investor.

 

		1.	Please
                                         indicate whether or not the Subscriber is or will be, or is or will be acting on behalf
                                         of, a “Benefit Plan Investor.”

 

Yes  ☐  No ☐

 

A
“Benefit Plan Investor” is defined in Section 3(42) ERISA, and applicable regulations of the Department of Labor (together,
the “Plan Asset Rule”). Under the Plan Asset Rule, a Benefit Plan Investor includes: (i) an employee benefit
plan which is subject to Part 4 of Subtitle B of Title I of ERISA, such as a U.S. private sector employee pension plan (an “ERISA
Plan”); (ii) a plan subject to Section 4975 of the Code, such as a Keogh plan covering only partners or other self-employed
individuals or an IRA (a “Tax-Favored Plan”); or (iii) an entity which is deemed to hold the “plan assets”
of investing ERISA Plans or Tax-Favored Plans, generally because twenty-five (25%) percent or more of the value of any class of
equity interests of such entity is held by other Benefit Plan Investors. For purposes of determining whether the 25% percent threshold
has been met or exceeded, the value of any equity interests held by a person (other than a Benefit Plan Investor) who has discretionary
authority or control with respect to the assets of the entity, or any person who provides investment advice for a fee (direct
or indirect) with respect to such assets, or any affiliate of such a person, is disregarded. In addition, certain other entities,
such as insurance company general and separate accounts and bank collective investment trust funds, are considered to hold plan
assets if any of their interests are held by Benefit Plan Investors.

 

		2.	If
                                         the Subscriber answered “Yes” to (1), please indicate what type of Benefit
                                         Plan Investor the Subscriber is by checking the appropriate box:

 

	 	

        A.☐
	ERISA
    Plan.
	 	 	 
	 	B.☐	Tax-Favored
    Plan.
	 	 	 
	 	C.☐	Insurance
    company separate account, common or collective trust of a bank, or group trust which is exempt from taxation pursuant to the
    principles of Rev.  Rul.  81-100.
	 	 	 
	 	D. ☐	Insurance
    company general account whose assets include “plan assets”.
	 	 	 
	 	E. ☐	Entity
    (other than those described in C and D above) holding “plan assets”.

 

    24

     

    

 

		3.	If
                                         the Subscriber checked box C or E in (2) above, the Subscriber represents that the value
                                         of its assets attributable to Benefit Plan Investors as a percentage of the total value
                                         of its assets is not and will not be more than (please check the applicable box). Subscribers
                                         that are insurance company general accounts should omit this question and proceed to
                                         (4) below:

 

	☐
	10%	☐	20%	☐	30%	☐	40%	☐	50%
	 	 	 	 	 	 	 	 	 	 
	☐	60%	☐	70%	☐	80%	☐	90%	☐	100%

 

		4.	Is
                                         the Subscriber, or is the Subscriber acting on behalf of, an insurance company general
                                         account, or investing assets of an insurance company general account as described in
                                         Department of Labor Advisory Opinion 2005-19A?

 

Yes ☐   No ☐

 

If
the Subscriber answered “Yes”, please specify the maximum percentage of the Subscriber’s assets that would constitute
“plan assets” under ERISA:

 

	☐	0%	☐
	10%	☐	20%	☐	30%	☐	40%	 	
		 	 	 	 	 	 	 	 	 	 	 
	☐	50%	☐	60%	☐	70%	☐	80%	☐	90%	☐	100%

 

		5.	Please
                                         indicate whether the Subscriber is an Other Plan Investor that is subject to any laws,
                                         rules or regulations similar to the fiduciary responsibility provisions of ERISA or the
                                         prohibited transaction provisions of Section 4975 of the Code (an “Other Law”):

 

Yes ☐   No ☐

 

If
the Subscriber answered “Yes”, please specify the Other Law:

 

___________________________________________________________________________

 

		6.	If
                                         the Subscriber is an IRA or other Benefit Plan Investor, please provide the EIN of the
                                         applicable trustee or custodian:

 

___________________________________________________________________________

 

    25

     

    

 

6.6. Reserved.

 

6.7. Government
Entities.

 

(a)Is
the Subscriber a “government entity”?

 

Yes ☐   No ☐

 

A
“government entity” is defined in Rule 206(4)-5 promulgated under the Advisers Act (the “Pay to Play Rule”)
as any State or political subdivision of a State, including: (i) any agency, authority, or instrumentality of the State or political
subdivision; (ii) a pool of assets sponsored or established by the State or political subdivision or any agency, authority or
instrumentality thereof, including, but not limited to, a “defined benefit plan” (as defined in section 414(j) of
the Code) or a State general fund; (iii) a plan or program of a government entity; and (iv) officers, agents, or employees of
the State or political subdivision or any agency, authority or instrumentality thereof, acting in their official capacity.

 

(b) If
the Subscriber is acting as trustee, custodian or nominee for a beneficial owner that is a government entity, please provide the
name of the government entity:

 

___________________________________________________________________________

  

(c) If
the Subscriber is an entity substantially owned by a government entity (e.g., a single investor vehicle) and the investment decisions
of such entity are made or directed by such government entity, please provide the name of the government entity:

 

___________________________________________________________________________

 

Please
note that, if the Subscriber enters the name of a government entity in this Section 6.7, the Fund will treat the Subscriber
as if it were the government entity for purposes of the Pay to Play Rule.

 

(d)
If the Subscriber is (i) a government entity, (ii) acting as trustee, custodian or nominee for a beneficial owner that is a government
entity, or (iii) an entity described in Item C, the Subscriber hereby certifies that other than the Pay to Play Rule, no “pay
to play” or other similar compliance obligations would be imposed on the Fund and the Investment Advisor in connection with
the Subscription.

 

If
the Subscriber cannot make this certification, indicate in the space below all other “pay to play” laws, rules or
guidelines, or lobbyist disclosure laws or rules, the Fund, the Investment Advisor, employees or third-party placement agents
would be subject to in connection with the Subscription:

 

___________________________________________________________________________

 

___________________________________________________________________________

 

___________________________________________________________________________

 

    26

     

    

  

6.8. Investment
Companies. Is the Subscriber (i) a private investment company which is not registered under the Investment Company Act in
reliance on Section 3(c)(1) or Section 3(c)(7) thereof; (ii) an “investment company” registered under the Investment
Company Act or (iii) a “business development company,” as defined in Section 2(a)(48) of the Investment Company Act?

 

Yes ☐  No ☐

 

If
the box above was checked “Yes,” please contact the Fund for additional information that will be required.

 

6.9. Controlling
Person. Is the Subscriber or will the Subscriber be a person (including an entity) that has discretionary authority or control
with respect to the assets of the Fund or a person who provides investment advice with respect to the assets of the Fund or an
“affiliate” of such a person? For purposes of this representation and agreement, an “affiliate” is any
person controlling, controlled by or under common control with any such person, including by reason of having the power to exercise
a controlling influence over the management or policies of such person.

 

Yes  ☐  No ☐

 

ARTICLE
VII

MISCELLANEOUS

 

7.1. Addresses
and Notices. The address of each party for all purposes shall be the address set forth on the first page of this Subscription
Agreement, as to the Fund, or on the signature page annexed hereto, as to the Subscriber, or such other address of which the other
party has received written notice. Any notice, demand or request required or permitted to be given or made hereunder shall be
in writing and shall be deemed given or made when delivered in person or when sent to such party at such address by registered
or certified mail, return receipt requested or by any other means approved by the Fund in its sole and absolute discretion.

 

7.2. Titles
and Captions. All Article and Section titles or captions in this Subscription Agreement are for convenience only. They shall
not be deemed part of this Subscription Agreement and do not in any way define, limit, extend or describe the scope or intent
of any provisions hereof.

 

7.3. Assignability.
This Subscription Agreement is not transferable or assignable by the Subscriber.

 

7.4. Pronouns
and Plurals. Whenever the context may require, any pronoun used herein shall include the corresponding masculine, feminine
or neuter forms. The singular form of nouns, pronouns and verbs shall include the plural and vice versa.

 

    27

     

    

 

7.5. Further
Action. The parties shall execute and deliver all documents, provide all information and take or forbear from taking all such
action as may be necessary or appropriate to achieve the purposes of this Subscription Agreement. Each party shall bear its own
expenses in connection therewith.

 

7.6. Governing
Law; Forum/Jurisdiction/Venue. This Subscription Agreement shall be construed in accordance with and governed by the laws
of the State of Maryland, without giving effect to conflicts of law principles. With the exception of any causes of action which
must, pursuant to Maryland law, be commenced in Maryland courts, the parties hereby submit to the exclusive jurisdiction and venue
of the Federal and state courts sitting in Johnson County, Kansas with respect to all legal proceedings arising out of or related
to this Subscription Agreement or the subject matter thereof and agree that process, orders, judgments or other documents of any
kind relating to court proceedings against such party served either personally or by registered mail shall constitute adequate
service of process with respect to any proceedings brought hereunder and hereby waive, to the fullest extent permitted by law,
any objection to such jurisdiction or venue on the basis that such proceedings have been brought in an inconvenient forum. The
parties hereto hereby waive all rights to trial by jury in any action, suit or proceeding brought to enforce or defend any rights
or remedies under this Subscription Agreement.

 

7.7. Permitted
Transactions and Binding Effect. This Subscription Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective heirs, administrators, successors, legal representatives, personal representatives, successors and
permitted assigns. If the Subscriber is more than one person, the obligation of the Subscriber shall be joint and several and
the agreements, representations, warranties and acknowledgments herein contained shall be deemed to be made by and be binding
upon each such person and the Subscriber’s heirs, executors, administrators and successors.

 

7.8. Integration.
This Subscription Agreement, together with any other document that may be delivered in connection herewith and signed by both
parties hereto, constitutes the entire agreement among the parties pertaining to the subject matter hereof and supersedes and
replaces all contemporaneous and prior agreements and understandings, whether written or oral, pertaining thereto. No covenant,
representation or condition not expressed in this Subscription Agreement shall affect or be deemed to interpret, change or restrict
the express provisions hereof.

 

7.9. No
Oral Agreements or Representations. Any representation, promise or agreement subsequent to the execution of this Subscription
Agreement must be in writing and signed by the Fund or its duly authorized agent in order to be reasonably relied upon or enforced.

 

7.10. Amendment.
This Subscription Agreement may be amended, supplemented or otherwise modified only with the written approval of all parties.

 

7.11. Reserved.

 

7.12. Waiver.
No failure by any party to insist upon the strict performance of any covenant, agreement, term or condition of this Subscription
Agreement or to exercise any right or remedy available upon a breach thereof shall constitute a waiver of any such breach or of
such or any other covenant, agreement, term or condition.

 

    28

     

    

 

7.13. Rights
and Remedies. The rights and remedies of each of the parties hereunder shall be mutually exclusive, and the implementation
of one or more of the provisions of this Subscription Agreement shall not preclude the implementation of any other provision.

 

7.14. Counterparts.
This Subscription Agreement may be executed in counterparts, all of which taken together shall constitute one agreement binding
on all the parties notwithstanding that all the parties are not signatories to the original or the same counterpart.

 

7.15. Construction.
The language used in this Subscription Agreement will be deemed to be the language chosen by the parties to express their mutual
intent, and no rule of construing agreements against the drafter (i.e., contra proferentem) will be applied against any party.

 

7.16. Severability.
The provisions of this Subscription Agreement are severable and if any one clause or provision hereof shall be held invalid or
unenforceable in whole or in part in any jurisdiction, then such invalidity or unenforceability shall affect only such clause
or provision, or part thereof, in such jurisdiction, and shall not in any manner affect such clause or provision in any other
jurisdiction, or any other clause or provision of this Subscription Agreement in any jurisdiction.

 

7.17. No
Third Party Beneficiaries. Except as expressly provided herein, the parties acknowledge that by the execution of this Subscription
Agreement they do not intend to create rights in any person or entity other than themselves and no such third person or entity
shall be justified in relying upon any provision of this Subscription Agreement.

 

7.18.
Electronic Communication. The Subscriber hereby acknowledges and agrees that the Fund and/or the Investment Advisor may
deliver and make reports, statements and other communications, including, without limitation, the Memorandum, the Operative Documents,
this Subscription Agreement, Forms 1099 and other tax related information and documentation (“Account Communications”),
available to the Subscriber in electronic form, such as e-mail or by posting on a web site in lieu of or in addition to sending
such communications as hard copies via fax or mail. E-mail messages are not secure and may contain computer viruses or other defects,
may not be accurately replicated on other systems, or may be intercepted, interfered with or deleted without the knowledge of
the sender or the intended recipient. The Fund makes no warranties in relation to these matters. The Fund reserves the right to
intercept, monitor and retain e-mail messages to and from its systems as permitted by applicable law. If the Subscriber has any
doubts about the authenticity of an e-mail purportedly sent by the Fund, the Subscriber must contact the Fund immediately. It
is the Subscriber’s affirmative obligation to notify the Fund in writing if the Subscriber’s e-mail address set forth
on the signature page hereto changes. The Subscriber may revoke or restrict its consent to electronic delivery of Account Communications
at any time by notifying the Fund, in writing, of the Subscriber’s intention to do so, and will thereafter receive such
Account Communications in paper form.

 

***
THE REMAINDER OF THIS PAGE HAS BEEN 

INTENTIONALLY
LEFT BLANK ***

 

    29

     

    

 

IN
WITNESS WHEREOF, the Subscriber has executed, and the Fund has accepted, this Subscription Agreement as of the date set forth
below.

 

	 	 	 
	Social
    Security or Employer Identification Number 	 	Print
    Name of Subscriber
	 	 	 
	Signature
    for Individual Subscribers:	 	 
	 	 	 
	 	 	 
	Signature
    of Subscriber	 	Date(s)
                                         of Birth of Subscriber(s)

	 	 	 
	 	 	 
	 	 	Residence
    (if an individual) or Principal Place of Business (if an entity):
	 	 	 
	 	 	 
	Signature
    of Subscriber, if Joint Ownership 	 	Street
	 	 	 
	Signature
    for Subscriber Other than Individual:	 	 
	 	 	 
	By:	                                           	 	
	Signature
    of Authorized Signatory	 	City                         State                         Zip
    Code
	 	 	 
	 	 	 
	 	 	Mailing
    Address of Subscriber (if different from principal address):
	 	 	 
	 	 	 
	Print
    Name and Title of Authorized Signatory	 	Street
    (No P.O. Boxes Please)
	 	 	 
	For
    Subscribers acting on behalf of Individual Beneficial Owners (including IRAs):	 	 
	 	 	City                        State                        Zip
    Code
	 	 	 
	 	 	 
	Print
    Name of Individual Beneficial Owner 	 	Telephone
    Number of Subscriber
	 	 	 
	 	 	 
	Signature
    of Individual Beneficial Owner	 	Facsimile
    Number of Subscriber
	 	 	 
	 	 	 
	Social
    Security Number of Individual Beneficial Owner	 	E-Mail
    Address of Subscriber
	 	 	 
	If
    Joint Ownership, check one:	 	If
    Other than Individual Subscribers, check one:
	 	 	 
	☐ Joint
Tenants with Right of Survivorship	☐	General
    Partnership	☐
    Trust
	☐ Tenants-in-Common	 	☐	Limited
    Partnership	☐
    “Grantor” Trust
	☐ Community
Property	 	☐	Corporation	☐
    Limited Liability Company
	☐ Estate	 	☐
    	S
    Corporation	☐ Other
	 	 	 	 	(specify):
    ____________
	 	 	 
	
        $__________________________________

        Capital
        Commitment

        
	 	

 

 

 

    30

     

    

 

	PAYMENT INFORMATION. Set forth below
    is the relevant information regarding the origin of the funds being invested by the Subscriber:	 	WIRING INSTRUCTIONS FOR DISTRIBUTIONS.
    If applicable, set forth below is the relevant information regarding wiring instructions for cash distributions from Fund
    investments. If left blank, any such distributions will be sent to the account listed under “PAYMENT INFORMATION”
    herein:
	 	 	 
	(a)
Name of the bank from which the check is issued or the payment is being wired (the “Bank”):

        

         

        

                                                                                               

         

        

        (b) Location
        of Bank:                                                      

        (c) ABA#:
                                                                                 

        (d) SWIFT
        Address:                                                       

        (e) If
        the Subscriber is a customer of the Bank,

        please provide account number:

        

        
	 	(a)
Name of the bank to which the payment is being wired:

                                                                                                  

        

         

                                                                                                                    

        

        

         

        (b) Location
        of such bank:                                                          

        (c) ABA#:
                                                                                     

        (d) SWIFT
        Address:                                                                 

        (e) If
the Subscriber is a customer of such bank, please provide account number:

	                                                                                                  	 	                                                                                                        
	 	 	
	ADVISORY
                                         FIRM. If referred by an outside investment advisory
                                         or similar firm, please complete the following:

         

        (a) Advisory
Firm Name:                                                       

        (b) Contact
Person:                                                     

        (c) Work
        Telephone:                                                         

        (d) Facsimile:                                                                      

        (e) Email:
                                                                                     

        (f) NSCC
        DTCC Rep#:

        _____________________________________________

        

        (g) NSCC
        DTCC Branch#:

        
	 	ADVISORY
                                         FIRM, cont. Please indicate what you would like us to provide to the Advisory Firm
                                         identified herein:

         

        ☐ All
        Below

        ☐ SEC
        Reports

        ☐ Drawdown
        Notices (if applicable)

        ☐ Signed
        Subscription Documents

        I
        authorize you to take instructions from representatives of such investment advisory firm with respect to the delivery
        account related statements and communications, withdrawals, contributions or transfer instructions. _____ (initial)

        

	                                                                                             	 	
	 	 	 
	FOREGOING
                                         SUBSCRIPTION ACCEPTED:

         

        Palmer
        Square Capital BDC Inc.

         

        By:
                                                                                               

        Name:

        Title:

         

        Date:
                                                                                                       
	 	 

 

    31

     

    

 

ADDITIONAL
REPRESENTATION WITH RESPECT TO INVESTMENT FOR AN IRA

 

If
the Subscriber is an individual retirement account (an “IRA”) or a self-directed pension, and this Subscription Agreement
is being executed by a custodian or directed trustee on behalf of such subscriber, then the individual who established the IRA
or who directed the plan’s investment in the Fund, as the case may be: (i) has directed the custodian or trustee of the
Subscriber to execute this Subscription Agreement on the signature page; and (ii) has exclusive authority with respect to the
decision to invest in the Fund; and (iii) has signed below to indicate that he or she has reviewed, directed and certifies to
the accuracy of the representation and warranties made by the Subscriber herein.

 

____________________________________

Type
Name

 

____________________________________

Signature

 

Name
and Address of Custodian

and
Contact Individual:

 

___________________________

 

___________________________

 

___________________________

 

Account
or other Reference Number:

 

___________________________

 

Trustee/Custodian’s
Tax I.D. Number:

 

___________________________

 

****
IRA custodian or trustee in every case must sign acknowledgment on next page****

 

    32

     

    

 

ACKNOWLEDGEMENT
PAGE

 

Acknowledgement
of Custodian of Self-Directed Individual Retirement Account

 

Subscriber
Name:                                                                                                                                                                                         

 

The
undersigned, being the custodian of the above named individual retirement account, hereby acknowledges this subscription.

 

	By:	 	 	Signature:	 
	 	Name of Authorized Signatory	 	 	Name of Custodian (Please Type or Print)
	 	(Please Type or Print)	 	 	 

 

    33

     

    

 

APPENDIX
A

BYLAWS
OF THE FUND

 

[See
attached]

 

     

     

    

 

APPENDIX
B

ARTICLES
OF INCORPORATION OF THE FUND

 

[See
attached]

 

     

     

    

 

APPENDIX
C

INVESTMENT
ADVISORY AGREEMENT

 

[See
attached]

 

     

     

    

 

APPENDIX
D

ADMINISTRATION
AGREEMENT

 

[See
attached]

 

     

     

    

 

APPENDIX
E

TRANSFER
RESTRICTIONS

 

This
Appendix E is attached to and made a part of the Subscription Agreement with the Subscriber. Capitalized terms not defined
herein shall have the meanings assigned to them in the Subscription Agreement.

 

Prior
to a Liquidity Event, no Transfer of the Subscriber’s Capital Commitment or all or any portion of the Subscriber’s
Shares may be made without (a) registration of the Transfer on the Fund’s books and (b) the prior written consent of the
Fund. In any event, the consent of the Fund may be withheld (i) if the creditworthiness of the proposed transferee, as determined
by the Fund in its sole discretion, is not sufficient to satisfy all obligations under the Subscription Agreement or (ii) unless,
in the opinion of counsel (who may be counsel for the Fund) satisfactory in form and substance to the Fund such Transfer would
not violate the Securities Act or any state (or other jurisdiction) securities or “blue sky” laws applicable to the
Fund or the Shares to be Transferred.

 

In
addition, prior to a Liquidity Event that is sufficient to cause us to treat our Shares as a “publicly-offered security”
for purposes of ERISA, initial or additional investments by Benefit Plan Investors may be restricted. Specifically, subscriptions
for Shares by, or transfers of Shares to, Benefit Plan Investors may be rejected, and existing Benefit Plan Investors may be required
to redeem all or a portion of their Shares. Any such restrictions or mandatory redemptions will be effected in such manner as
the Company determines, in its sole discretion, to be appropriate under the circumstances if such transfer could (1) result in
the Fund’s assets being considered to be “plan assets” for purposes of ERISA or Section 4975 of the Code or
(2) constitute or result in a non-exempt prohibited transaction under ERISA or Section 4975 of the Code or a non-exempt violation
of any laws similar to ERISA or Section 4975 of the Code.

 

Any
person that acquires all or any portion of the Capital Commitment of the Subscriber in a Transfer permitted under this Appendix E
shall be obligated to pay to the Fund the appropriate portion of any amounts thereafter becoming due in respect of the Capital
Commitment committed to be made by its predecessor in interest. The Subscriber agrees that, notwithstanding the Transfer of all
or any fraction of its Capital Commitment, as between it and the Fund it shall remain liable for its Capital Commitment prior
to the time, if any, when the purchaser, assignee or transferee of such Capital Commitment, or fraction thereof, executes and
delivers to the Fund documentation evidencing such person’s obligations to fund such Capital Commitment.

 

The
Fund shall not recognize for any purpose any purported Transfer of all or any portion of the Shares and/or Capital Commitment
and shall be entitled to treat the transferor of the Shares and/or Capital Commitment, as applicable, as the absolute owner or
obligor thereof in all respects, and shall incur no liability for distributions or dividends made in good faith to it, unless
the Fund shall have given its prior written consent thereto and there shall have been filed with the Fund a dated notice of such
Transfer, in form satisfactory to the Fund, executed and acknowledged by both the seller, assignor or transferor and the purchaser,
assignee or transferee, and such notice (a) contains the acceptance by the purchaser, assignee or transferee of all of the terms
and provisions of this Subscription Agreement and its agreement to be bound thereby, and (b) represents that such Transfer was
made in accordance with this Subscription Agreement, the provisions of the Memorandum and all applicable laws and regulations
applicable to the transferee and the transferor.

 

     

     

    

 

PALMER
SQUARE CAPITAL BDC INC.

 

AUTHORIZED
SIGNATURE(S)

 

     

     

    

 

AUTHORIZED
SIGNATURE(S)

 

(To
Be Signed By All Subscribers)

 

Set
forth below are the names of persons authorized by the Subscriber to give and receive instructions between the Fund and the Subscriber,
together with their respective signatures. Such persons are the only persons so authorized until further written notice to the
Fund signed by one or more of such persons. (Please attach additional pages if needed)

 

	

        Name
        / Title
	Signature
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

 

     

     

    

 

PALMER
SQUARE CAPITAL BDC INC.

 

ANTI-MONEY
LAUNDERING SUPPLEMENT

 

     

     

    

 

PALMER
SQUARE CAPITAL BDC INC.

 

Anti-Money
Laundering Supplement

 

You
(the “Subscriber”) must complete this supplement (the “Anti-Money Laundering Supplement”) in order to
become a shareholder of Palmer Square Capital BDC Inc. (the “Fund”). Your subscription agreement will not be deemed
complete, and you will not be issued shares of common stock of the Fund (the “Shares”), regardless of whether you
have already wired funds, until all of the required documentation listed below is received by the Fund. For additional information,
please contact the Fund at (816) 994-3201.

 

I:PAYMENT
INFORMATION

 

		(a)	Name
                                         of Subscriber:                                                                                                                              

 

		(b)	Country
                                         of Birth of Subscriber:                                                                                                            

 

		(c)	Citizenship
                                         of Subscriber:                                                                                                                     

 

		(d)	Name
                                         of the bank from which your payment to the Fund is being wired

                                         (the “Wiring Bank”):                                                                                                                              

 

		(e)	Is
the Wiring Bank located in a FATF Country*? YES ☐   NO ☐

 

If
yes, please answer question (d) below.

 

If
no, please skip to Item II below.  

 

		(f)	Are
                                         you a customer of the Wiring Bank? YES ☐   NO ☐

 

You
must wire the payment from an account in your name.

 

II:ADDITIONAL
INFORMATION

 

The
following materials must be provided to the Fund:

 

For
Individuals or Participants in Individual Retirement Accounts, Keogh Plans and Other Self- Directed Defined Contribution Plans

 

		☐	A
                                         certified copy of a government issued form of picture identification (e.g.,
                                         passport).

 

 

		*	As
of the date hereof, countries and regional organizations that are members of the Financial Action Task Force on Money Laundering
(each, a “FATF Country”) are: Argentina, Australia, Austria, Belgium, Brazil, Canada, China, Denmark, European Commission,
Finland, France, Germany, Greece, Gulf Co-operation Council, Hong Kong, Iceland, India, Ireland, Italy, Japan, Republic of Korea,
Luxembourg, Mexico, Kingdom of the Netherlands, New Zealand, Norway, Portugal, Russian Federation, Singapore, South Africa, Spain,
Sweden, Switzerland, Turkey, United Kingdom and the United States.

 

     

     

    

 

		☐	A
                                         certified copy of proof of current address (e.g.,
                                         current utility bill).

 

For
Fund of Funds or Entities that Invest on Behalf of Third Parties that are Not Located in the U.S. or Other FATF Country

 

		☐ 	A
                                         certified copy of a certificate of due formation and organization and continued authorization
                                         to conduct business in the jurisdiction of its organization (e.g.,
                                         certificate of good standing).

 

		☐	A
                                         certified copy of an incumbency certificate attesting to the title of the individual
                                         executing the Anti-Money Laundering Supplement on behalf of the prospective Subscriber
                                         (a sample Incumbency Certificate is attached hereto as Exhibit A).

 

		☐	A
                                         completed copy of Exhibit B certifying that the Subscriber has adequate anti-money
                                         laundering policies and procedures in place that are consistent with all applicable anti-money
                                         laundering laws and regulations, including the USA PATRIOT Act and OFAC (as defined below).

 

		☐	A
                                         letter of reference from a local office of a reputable bank or brokerage firm which is
                                         incorporated, or has its principal place of business located, in a FATF Country certifying
                                         that the prospective Subscriber maintains an account at such bank/brokerage firm and
                                         containing a statement affirming the prospective Subscriber’s integrity (a sample
                                         Letter of Reference is attached hereto as Exhibit C).

 

For
All Other Entity Subscribers

 

		☐	A
                                         certified copy of a certificate of due formation and organization and continued authorization
                                         to conduct business in the jurisdiction of its organization (e.g.,
                                         certificate of good standing).

 

		☐	A
                                         certified copy of an incumbency certificate attesting to the title of the individual
                                         executing the Anti-Money Laundering Supplement on behalf of the prospective Subscriber
                                         (a sample Incumbency Certificate is attached hereto as Exhibit A).

 

		☐	A
                                         letter of reference from a local office of a reputable bank or brokerage firm which is
                                         incorporated, or has its principal place of business located, in a FATF Country certifying
                                         that the prospective Subscriber maintains an account at such bank/brokerage firm for
                                         a length of time and containing a statement affirming the prospective Subscriber’s
                                         integrity (a sample Letter of Reference is attached hereto as Exhibit C).

 

		☐	If
                                         the prospective Subscriber is a privately-held entity, a completed copy of Exhibit
                                         D listing the name of each person who directly, or indirectly through intermediaries,
                                         is the beneficial owner of 25% or more of any voting or non-voting class of equity interests
                                         of the prospective Subscriber.

 

		☐	If
                                         the prospective Subscriber is a trust, a completed copy of Exhibit E listing the
                                         current beneficiaries of the trust that have, directly or indirectly, 25% or more of
                                         any interest in the trust, the settlor of the trust and the trustees.

 

Note:
Copies should either be certified as being true and correct or otherwise notarized. A certifier
must be a suitable person, generally a lawyer, accountant, director or manager of a regulated financial institution, a notary
public, a member of the judiciary or senior civil servant, or a confirmed director or officer of an entity.

 

     

     

    

  

REPRESENTATIONS
AND COVENANTS OF THE SUBSCRIBER

 

You
should check the website of the Treasury Department’s Office of Foreign Assets Control (“OFAC”) at http://www.treas.gov/ofac
before making the following representations.

 

		(A)	The
                                         Subscriber represents that the amounts contributed by it to the Fund were not and are
                                         not directly or indirectly derived from activities that may contravene federal, state
                                         or international laws and regulations, including anti-money laundering laws and regulations.

 

Federal
regulations and executive orders administered by OFAC prohibit, among other things, the engagement in transactions with, and the
provision of services to, certain foreign countries, territories, entities and individuals.** The lists of OFAC prohibited
countries, territories, persons and entities can be found on the OFAC website at http://www.treas.gov/ofac. In addition, the programs
administered by OFAC (“OFAC Programs”) prohibit dealing with individuals or entities in certain countries regardless
of whether such individuals or entities appear on the OFAC lists.

 

The
Subscriber represents and warrants that, to the best of its knowledge, none of:

 

		(1)	the
Subscriber;

 

		(2)	any
person controlling or controlled by the Subscriber;

 

		(3)	if
                                         the Subscriber is a privately held entity, any person having a beneficial interest in
                                         the Subscriber; or

 

		(4)	any
                                         person for whom the Subscriber is acting as agent or nominee in connection with this
                                         investment

 

is
a country, territory, individual or entity named on an OFAC list, nor is a person or entity prohibited under the OFAC Programs.

 

Please
be advised that the Fund may not accept any amounts from a prospective Subscriber if it cannot make the representation set forth
in the preceding paragraph. If an existing Subscriber cannot make these representations, the Fund may require the redemption,
withdrawal or other cancellation of the Shares.

 

		(B)	The
                                         Subscriber agrees to notify the Fund promptly in writing should the Subscriber become
                                         aware of any change in the information set forth in these representations. The Subscriber
                                         is advised that, by law, the Fund may be obligated to “freeze the account”
                                         of such Subscriber, either by prohibiting additional investments from the Subscriber,
                                         refusing to process a distribution and/or segregating the assets in the account in compliance
                                         with governmental regulations, and the Fund may also be required to report such action
                                         and to disclose the Subscriber’s identity to OFAC or other applicable governmental
                                         and regulatory authorities.

  

 

		**	These
individuals include specially designated nationals, specially designated narcotics traffickers and other parties subject to OFAC
sanctions and embargo programs.

 

     

     

    

 

		(C)	The
                                         Subscriber represents and warrants that, to the best of its knowledge, none of:

 

		(1)	the
Subscriber;

 

		(2)	any
person controlling or controlled by the Subscriber;

 

		(3)	if
                                         the Subscriber is a privately held entity, any person having a beneficial interest in
                                         the Subscriber; or

 

		(4)	any
                                         person for whom the Subscriber is acting as agent or nominee in connection with this
                                         investment

 

is
a senior foreign political figure,*** or any immediate family member**** or close associate***** of a senior foreign political
figure as such terms are defined in the footnotes below.

 

		(D)	If
                                         the Subscriber is a non-U.S. banking institution (a “Foreign Bank”) or if
                                         the Subscriber receives deposits from, makes payments on behalf of, or handles other
                                         financial transactions related to a Foreign. Bank, the Subscriber represents and warrants
                                         to the Fund that:

 

		(1)	the
                                         Foreign Bank has a fixed address, other than solely an electronic address, in a country
                                         in which the Foreign Bank is authorized to conduct banking activities;

 

		(2)	the
                                         Foreign Bank employs one or more individuals on a full-time basis;

 

		(3)	the
                                         Foreign Bank maintains operating records related to its banking activities;

 

		(4)	the
                                         Foreign Bank is subject to inspection by the banking authority that licensed the Foreign
                                         Bank to conduct banking activities; and

 

		(5)	the
                                         Foreign Bank does not provide banking services to any other Foreign Bank that does not
                                         have a physical presence in any country and that is not a regulated affiliate.

 

		(E)	The
                                         Subscriber understands and agrees that any distributions paid to it will be paid to the
                                         same account from which the Subscriber’s investment in the Fund was originally
                                         remitted, unless the Fund, in its sole and absolute discretion, agrees otherwise.

 

		(F)	The
                                         Subscriber agrees that, upon the request of the Fund, it will provide such information
                                         as the Fund requires to satisfy applicable anti-money laundering laws and regulations,
                                         including, without limitation, the Subscriber’s anti-money laundering policies
                                         and procedures, background documentation relating to its directors, trustees, settlors
                                         and beneficial owners, and audited financial statements, if any.

 

 

		***	A “senior foreign political figure” is defined
as a senior official in the executive, legislative, administrative, military or judicial branches of a non-U.S. government (whether
elected or not), a senior official of a major non-U.S. political party, or a senior executive of a non-U.S. government-owned corporation.
In addition, a “senior foreign political figure” includes any corporation, business or other entity that has been
formed by, or for the benefit of, a senior foreign political figure.

 

		****	“Immediate family” of a senior foreign political
figure typically includes the figure’s parents, siblings, spouse, children and in-laws.

 

		*****	A “close associate” of a senior foreign political
figure is a person who is widely and publicly known to maintain an unusually close relationship with the senior foreign political
figure, and includes a person who is in a position to conduct substantial U.S. and non-U.S. financial transactions on behalf of
the senior foreign political figure.

 

     

     

    

  

SIGNATURE
PAGE

 

ALL
SUBSCRIBERS MUST COMPLETE THIS SECTION.

 

The
undersigned hereby represents that: (i) the information contained herein is complete and accurate and may be relied upon; and
(ii) the anti-money laundering/OFAC representations contained herein are true and correct.

 

IN
WITNESS WHEREOF, the undersigned has executed this Anti-Money Laundering Supplement this ___ day of __________, 20__.

 

	 INDIVIDUALS
	ENTITIES
	                                                                                              

    Signature	                                                                                           

    Print Name of Entity
	                                                                                           

    Print Name	                                                                                          

    Authorized Signature
	                                                                                           

    Additional Subscriber Signature	                                                                                           

    Print Name and Title
	                                                                                           

    Print Name	 

 

Name
of Trustees or Other Fiduciaries Exercising Investment

Discretion with Respect to Benefit Plan or Trust

 

	Signature	 	Printed Name	 	Title
	                                                                          	 	                                                                          	 	                                                                          

 

Agreement
of Custodian of Individual Retirement Account

 

The
undersigned, being the custodian of the above named individual retirement account, hereby accepts and agrees to this Anti-Money
Laundering Supplement.

 

	By:                                                                               

 Signature of Authorized Signatory
	                                                                                 

    Name of Custodian (Please Type or Print)
	 	 
	                                                                                          

    Name of Authorized Signatory (Please Type or Print)	 

 

 

     

     

    

 

EXHIBIT
A

 

FORM
OF INCUMBENCY CERTIFICATE

 

The undersigned, being
the _________________________of ____________________________

                                                                           Insert Title                              Insert Name of Entity

a ______________________ organized under the
laws of ____________________________________

       Insert Type of Entity                                                             Insert Jurisdiction of Organization

 

(the
“Subscriber”), does hereby certify on behalf of the Subscriber that the persons named below are directors and/or officers
of the Subscriber and that the signature at the right of said name, respectively, is the genuine signature of said person and
that the persons listed below are each an authorized signatory for the Subscriber.

 

	Name	 	Title	 	Signature
	                                                            	 	                                                             	 	                                                             
	                                                             	 	                                                             	 	                                                             
	                                                             	 	                                                             	 	                                                             

 

IN
WITNESS WHEREOF, the undersigned has hereunto set his hand as of the ___ day of ______________, 20__.

 

	 	 
	 	Name: Print Name of Signatory #1
	 	Title: Print Title of Signatory #1

 

The undersigned, ____________________________,
being the duly authorized __________________________

                                                 Insert Name of Signatory #2                                                                  Insert Title

of the Subscriber, does hereby certify
that                                                                                          is
a duly authorized officer of

               Insert Name of Signatory
#1

 ______________________ and that the
signature set forth above is [his][her] true and correct signature.

Insert Name of Subscriber

 

IN
WITNESS WHEREOF, the undersigned has executed this certificate as of the ___ day of_____________, 20__.

 

	 	 
	 	Name: 	Print Name of Signatory #2
	 	Title:	Print Title of Signatory #2

 

     

     

    

 

EXHIBIT
B

 

AML
CERTIFICATION FORM FOR FUND OF FUNDS OR ENTITIES THAT INVEST ON BEHALF OF THIRD PARTIES THAT ARE NOT LOCATED IN A FATF COUNTRY

 

The undersigned, being
the _______________________of _________________________________

                                                                       Insert Title                                      Insert Name of Entity

a __________________________ organized under the
laws of ____________________________________

            Insert Type of Entity                                                                Insert Jurisdiction of Organization

 

(the
“Subscriber”), does hereby certify on behalf of the Subscriber that it is aware of applicable anti- money laundering
laws and regulations, including the requirements of the USA PATRIOT Act of 2001 and the regulations administered by the Treasury
Department’s Office of Foreign Assets Control (collectively, the “anti-money laundering/OFAC laws”). The Subscriber
has anti-money laundering policies and procedures in place reasonably designed to verify the identity of its beneficial holders
underlying investors and their sources of funds. Such policies and procedures are properly enforced and are consistent with the
anti-money laundering/OFAC laws such that Palmer Square Capital BDC Inc. (the “Fund”) may rely on this Certification.

 

The
Subscriber hereby represents to the Fund that, to the best of its knowledge, the Subscriber’s beneficial holders underlying
investors are not individuals, entities or countries that may subject the Fund to criminal or civil violations of any anti-money
laundering/OFAC laws. The Subscriber has read the section entitled “Representations and Covenants of the Subscriber”
in the Fund’s Anti- Money Laundering Supplement. The Subscriber has taken all reasonable steps to ensure that its beneficial
holders underlying investors are able to certify to such representations. The Subscriber agrees to promptly notify the Fund in
writing should the Subscriber have any questions relating to any of the investors or become aware of any changes in the representations
set forth in this Certification.

 

	Date:______________, 20__	By:________________________
	 	Name:
	 	Title:

 

     

     

    

  

EXHIBIT
C

 

FORM
LETTER OF REFERENCE

 

[LETTERHEAD
OF LOCAL OFFICE OF FATF MEMBER BANKING INSTITUTION OR BROKERAGE FIRM]

 

Date:_______________,
20__

 

Palmer
Square Capital BDC Inc.

1900
Shawnee Mission Parkway, Suite 315

Mission
Woods, KS 66205

Telephone:
(816) 994-3200

Email:
investorrelations@palmersquarecap.com

 

To
whom it may concern:

 

I,
_________________, the ___________________ of ____________________________

                             Name
                                  Title                              Insert
Name of Institution

certify
that ________________________ has maintained an account at our institution for ____________ years and, during

                         Name
of Subscriber

this
period, nothing has occurred that would give our institution cause to be concerned regarding the integrity of ______________________.

Name
of Subscriber                       

 

Do
not hesitate to contact me at __________________________if you have any further questions.
   
                                                                        Insert
Telephone No.

 

	 	Very
    truly yours,
	 	 
	 	Name:	 
	 	Title: 
	 

 

     

     

    

 

EXHIBIT
D

 

BENEFICIAL
OWNERSHIP INFORMATION

 

To
Be Completed By Entity Subscriber That Are Privately Held Entities

 

Instructions:
Please complete and return this Exhibit D and provide the name of every person who is directly, or indirectly through intermediaries,
the beneficial owner of 25% or more of any voting or non- voting class of equity interests of the Subscriber. If the intermediary’s
shareholders or partners are not individuals, continue up the chain of ownership listing their 25% or more equity interest holders
until individuals are listed. If there are no 25% beneficial owners, please write None.

 

	 

        Full
        Name
	If
    Shareholder is an Individual, Insert Name and Address of Principal Employer and Position	Citizenship

                                         (for Individuals) or

 Principal Place of

        Business
        (for Entitles)

	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

     

     

    

  

EXHIBIT
E

 

TRUST
OWNERSHIP INFORMATION

 

To
Be Completed By Entity Subscriber That Are Trusts

 

Instructions:
Please complete and return this Exhibit E and provide the name of: (i) every current beneficiary that has, directly or
indirectly, an interest of 25% or more in the trust; (ii) every person who contributed assets to the trust (settlors or grantors);
and (iii) every trustee. If there are intermediaries that are not individuals, continue up the chain of ownership listing their
25% or more equity interest holders until individuals are listed.

 

	 

        Full
        Name and Address
	Status

        (Beneficiary/Settlor/Trustee)
	Citizenship

        (for
Individuals) or 

Principal Place of

        Business
        (for Entities)

	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

     

     

    

 

 

PALMER
SQUARE CAPITAL BDC INC.

 

DIVIDEND
REINVESTMENT PLAN ELECTION FORM

 

     

     

    

 

PALMER
SQUARE CAPITAL BDC INC.

 

Dividend
Reinvestment Plan Election Form

 

As
described in the Subscription Agreement (the “Subscription Agreement”), by and between the undersigned Subscriber
and Palmer Square Capital BDC Inc. (the “Fund”), the Fund has adopted a dividend reinvestment plan, as may
be amended (the “Dividend Reinvestment Plan”), pursuant to which, for any stockholders who do not “opt-out”
of the Dividend Reinvestment Plan, the Fund shall reinvest all cash distributions declared by the Fund’s board of directors
on behalf of any stockholder of the Fund in exchange for a number of newly issued Shares.

 

A
Subscriber may elect to “opt-out” of such Dividend Reinvestment Plan below. Amounts reinvested in the Fund pursuant
to the Dividend Reinvestment Plan shall have no effect on the amount of a Subscriber’s Undrawn Commitment (as defined in
the Subscription Agreement). If you wish to
“opt-out” and receive Fund distributions in cash, please indicate by checking the “opt-out” box below.

  

	 

          ☐  
        Opt-out of the Dividend Reinvestment Plan to receive cash distributions

         

 

If
the Subscriber is a corporation, partnership, limited liability company, trust or any other entity, the person signing this Form
is authorized to represent such entity and has the full power and authority under such entity’s governing instruments to
execute and deliver this Form.

 

	Date:_____________________	___________________________________________

        Subscriber

         

	 	___________________________________________

        Signature

        

         

	 	___________________________________________

        Name
        and Title of Authorized Signatory (if applicable)

 

     

     

    

 

PALMER
SQUARE CAPITAL BDC INC.

 

IMPORTANT
INFORMATION ABOUT PRIVACY

AND CERTAIN INFORMATION SHARING

 

     

     

    

  

IMPORTANT
INFORMATION ABOUT PRIVACY

AND CERTAIN INFORMATION SHARING

 

This
Privacy Policy explains the manner in which the Fund and the Investment Advisor (collectively, “Company Entities”)
collect, utilize and maintain nonpublic personal information about Fund investors, as required under U.S. Federal legislation.
There may be additional rights under other laws that apply to you. The Company Entities reserve the right to change or revoke
this Privacy Policy at any time.

 

Collection
of Investor Information

 

The
Company Entities collect personal information about Fund investors through the following sources:

 

		●	Subscription
                                         forms, investor questionnaires and other information provided by the investor in writing,
                                         in person, by telephone, electronically or by any other means. This information includes
                                         name, address, nationality, employment information, and financial and investment qualifications;
                                         and

 

		●	Investors’
                                         transactions with the Company Entities, including account balances, investments and redemptions.

 

The
Company Entities do not obtain nonpublic personal information from any other source.

 

Disclosure
of Nonpublic Personal Information

 

The
Company Entities do not disclose nonpublic personal information about Fund investors to nonaffiliated third parties or to affiliated
entities, except as permitted by U.S. law. For example, the Company Entities may share nonpublic personal information in the following
situations:

 

		●	To
respond to a subpoena or court order, judicial process or regulatory authorities;

 

		●	To
                                         protect against fraud, unauthorized transactions (such as money laundering), claims or
                                         other liabilities;

 

		●	To
                                         service providers in connection with the administration and servicing of the Company
                                         Entities, which may include attorneys, accountants, auditors, or other professionals;

 

		●	To
                                         service or process Fund transactions; and

 

		●	Upon
                                         consent of an investor to release such information, including authorization to disclose
                                         such information to persons acting in a fiduciary or representative capacity on behalf
                                         of the investor.

   

Protection
of Investor Information

 

The
Company Entities maintain safeguards that comply with U.S. Federal standards to protect investor information. The Company Entities
restrict access to the personal and account information of investors to those persons who need to know such information in the
course of their job responsibilities. Third parties with which the Company Entities share investor information must agree to follow
appropriate standards of security and confidentiality.Texas Mineral Resources Corp. 10-K 

 

 

Exhibit
10.3

 

Mining
Lease dated November 2011 with the State of Texas

 

 

Austin,
Texas

 

MINING
LEASE

M-113629

 

WHEREAS,
pursuant to Chapter 53, Subchapter C of the Texas Natural Resources Code, the following described land:

 

SW/4
of SE/4 of SE/4 of Section 12, Block 72, T-7, T&P Ry. Co., and N/2 of the NE/4 of Section·13, Block 72, T-7,
T&P Ry. Co. containing 90 acres, more or less, in Hudspeth County, Texas, (hereinafter referred to as the
“leased premises”)

 

was subject to 1ease by the State of Texas acting by and through its agent, Texas Rare
Earth Resources Corp. of 304 Inverness Way South, Suite 365, Englewood, Colorado 80112, said agent hereinafter
referred to as “the owner of the soil” (whether one or more).

 

WHEREAS,
the owner of the soil of the leased premises has executed and recorded in Hudspeth County, Texas, and has filed in the
General Land Office Mineral File for this lease, its Affidavit of Waiver of Agency Rights wherein said owner of the soil, inter
alia, warrants to the State that said owner is duly authorized to waive all surface owner rights associated with the leased premises
without joinder of any other person or entity and wherein said owner waives any right to receive compensation from any lease on
the above described land. Texas Rare Earth Resources Corp. has properly made application for a Mining Lease. Pursuant to
Chapter 53, Subchapter C of the Natural Resources Code and the title opinion furnished by the owner of the soil, the School Land
Board of the State of Texas has approved and accepted this lease under the following terms and conditions:

 

NOW,
THEREFORE, this mining lease is made and entered into this 1st day of November, 2011 between the
State of Texas (hereinafter referred to as “LESSOR”, “State of Texas” or “State”), acting by and
through the Commissioner of the General Land Office (hereinafter referred to as “COMMISSIONER”) and Texas Rare Earth
Resources Corp. of 304 Inverness Way South Suite 365 Englewood Colorado 80112 (hereinafter referred to as “LESSEE”).
LESSEE, as used herein, shall also include any successor, assignee, devisee, legal representative or heir who acquires any right
or obligation initially held by this named LESSEE under this lease.

 

l.              GRANTING
CLAUSE: For and in consideration of the amounts stated below and of the covenants and agreements of this lease hereby
agreed to be paid, kept and performed by LESSEE, the State of Texas hereby grants, leases and lets unto LESSEE the leased premises,
for the sole and only purpose of prospecting for, exploring for, producing, developing, mining (by drilling, boring, open pit,
underground mining, strip mining, solution mining, or any other method permitted herein), extracting, milling, removing, and marketing
the following: beryllium, uranium, rare earth elements, all other base and precious metals, industrial minerals and construction
materials of all kinds and all other minerals excluding oil, gas, coal, lignite, sulphur, salt and potash, hereinafter referred
to as the “named material”, and the rocks, minerals and mineral substances that are contained in or are necessarily
and actually produced in conjunction with or incidental to the named material (the named material and the other rocks, minerals
and mineral substances granted herein are hereinafter collectively referred to as the “leased minerals”), and no other
material or mineral.

 

Additionally,
there is hereby excepted and reserved to LESSOR the full use of the property covered hereby and all rights with respect to the
surface and subsurface thereof for any and all purposes except those granted and to the extent herein granted to the LESSEE, together
with the rights of ingress and egress arid use of said lands by LESSOR and its mineral lessees, for purposes of exploring for
and producing the minerals which are not covered by the terms of this lease, but which may be located within the surface boundaries
of the leased area. All of the rights in and to the leased premises retained by LESSOR and all of the rights in and to the leased
premises granted to LESSEE shall be exercised in such a manner that neither shall unduly interfere with the operations of the
other.

 

The
bonus consideration paid for this lease is as follows:

 

To
the State of Texas: Twenty thousand seven hundred and no/100 Dollars ($20 700.00)

 

To
the owner of the soil: None

 

The
total bonus consideration paid represents a bonus of Two hundred thirty and No/100 Dollars($ 230.00) per acre, on
90 net acres.

 

2.             TERM:
Subject to the other provisions in this lease, this lease shall be for a term of nineteen (19) years from this date (hereinafter
called “primary term”), and as long thereafter as the named material shall be produced in paying quantities from the
land hereby leased. As used in this lease, the term “produced in paying quantities” shall be defined to mean that the
receipts from the sale of the named material and the market value (as defined in this lease) of any named material used by LESSEE
in a manner authorized by the COMMISSIONER (excluding those amounts allocable to the State’s royalties provided for in this lease
and including those amounts attributable to the working interest as of the date of this lease) exceed out of pocket operational
expenses for the twelve months past. Out of pocket operational expenses, as used in this lease, shall be defined as those costs
directly associated with the current costs of operations. Specifically, this definition shall not include the costs of capital
improvements to leased premises and fixtures affixed thereto, and it shall not include non-cash items, such as depreciation expenses
and depletion allowances. If after the expiration of the 20 year term this lease is not producing in paying quantities as defined
above, then a rebuttable presumption Shall arise that this lease has terminated for failure to so produce.

 

     

     

    

 

3.             DELAY
RENTAL: If production in paying quantities of the named material has not been obtained on or before one (1) year after the
date of this lease, then this lease shall terminate unless LESSEE, on or before that date, pays in the manner prescribed in Section
27 of this lease the following sum:

 

	Per Acre Amount	 	Total Amount
	 	$	50.00	 	 	 	$	4,500.00	 

 

In
a like manner and upon payment of the amounts set out below on or before the corresponding anniversary dates of this lease, LESSEE
may defer the commencement of said production for successive periods of one (1) year each during the primary term hereof:

 

	 	 	Per Acre Amount	 	Total Amount
	Anniversary Date 2013 -2014	 	 	$	50.00	 	 	 	$	4
    500.00	 
	Anniversary Date 2015 - 2019	 	 	$	75.00	 	 	 	$	6
    750.00	 
	Anniversary Date 2020 - 2024	 	 	$	150.00	 	 	 	$	13
    500.00	 
	Anniversary Date 2025 - 2029	 	 	$	200.00	 	 	 	$	18
    000.00	 

  

Payments
under this section shall act as a rental and shall cover the privilege of deferring commencement of production in paying quantities
of the named material for one (1) year from the corresponding anniversary date.

 

4.             MINIMUM
ADVANCE ROYALTY: Immediately upon the sale of the leased minerals, if such sale occurs on the lease premises, or the removal
of the leased minerals in commercial quantities from the leased premises, LESSEE shall par in the same manner prescribed in Section
28 of this lease a sum of Fifty Thousand and No/100 Dollars ($50 000.00) as minimum advance royalty. This Section
4 shall not apply to the production of waste materials as defined in Section 14(g). The payment of the initial minimum advance
royalty shall be considered timely if it is received by the COMMISSIONER, at Austin, on or before seven (7) days after the date
of the initial commencement of production. Thereafter, this royalty is to be so paid and received on or before the anniversary
date of this lease, in advance, for each lease year (as determined by the anniversary date of this lease) in which the leased
minerals are produced from the leased premises. It is understood and agreed that this minimum advance royalty is due and payable
for every year that the leased minerals are produced from the leased premises, regardless of the amount of actual production.

 

Should
LESSEE cease production and later re-commence production, then payment of a minimum advance royalty shall be due and payable
immediately upon re- commencement of production in the same manner as if LESSEE were initially commencing production.
However, should LESSEE so re-commence production within the same lease year for which a minimum advance royalty has already
been properly paid to the COMMISSIONER, then a payment shall not be due upon the re- commencement but shall be due and
payable thereafter by LESSEE in the manner described above on or before the anniversary date of this lease, in advance, for
each lease year in which the leased minerals are produced from the leased premises.

 

If
applicable, a minimum advance royalty paid will be credited against the first royalty due as hereinafter provided for the leased
minerals actually produced from the leased premises during the lease year for which such minimum advance royalty was paid.

 

5.             PLAN
OF OPERATIONS: Before LESSEE commences any activities associated with mineral exploration or development that require substantially
disturbing or destroying the surface or subsurface of the leased premises, LESSEE agrees to submit to and obtain approval from
the COMMISSIONER and, upon request, submit to any surface lessee of the leased premises, for said lessee’s information, a plan
of operations in compliance with all current and future General Land Office administrative rules relating to the procedure for
filing, obtaining approval and complying with of any such plan of operations. LESSEE also agrees to so submit amended and supplemental
plans of operations as required by said rules. The General Land Office reserves the right to require LESSEE to furnish a bond
as a condition to approval of a plan of operations. The current and future General Land Office administrative rules relating to
plans of operations and conduct of exploration and mining operations shall determine when and how LESSEE may commence and conduct
any activities on, in, or under the leased premises.

 

LESSEE
is expressly placed on notice of the National Historical Preservation Act of 1966, (PB-89-66, 80 Statute 915; 16 U.S.C.A §470)
and the Antiquities Code of Texas, Chapter 191, Tex. Nat. Res. Code Ann. (Vernon 1996 Supp.). Befo.re breaking ground at a project
location, lessee shall notify the Texas Historical Commission, P.O. Box 12276, Austin, Texas 78711. An archaeological survey might
be required by the commission before construction of the project can commence. Further, in the event that any site, object, location,
artifact or other feature of archaeological, scientific, educational, cultural or historic interest is encountered during the
activities authorized by this lease, lessee will immediately notify LESSOR and the Texas Historical Commission so that adequate
measures may be undertaken to protect or recover such discoveries or findings, as appropriate.

 

6.             EXPLORATION:
It is understood and agreed that LESSEE owes LESSOR a duty to take all steps a reasonably prudent operator would take to explore
the leased premises for the named material and to delineate the reserves thereof.,

 

7.             DUTY
TO MAKE MARKETABLE, PROCESS, ETC.: (a) If the leased minerals are capable of being economically produced by the LESSEE in
commercial quantities, it is understood and agreed that LESSEE owes I,.ESSOR a duty to take all steps necessary to put the leased
minerals into a marketable condition. This may include crushing, separating, concentrating, processing or other forms of preparing
the leased minerals for sale. It is understood and agreed that LESSEE has the duty to undertake and/or arrange to have undertaken
all operations a reasonably prudent operator would undertake in order to produce, process, and make marketable the most valuable
component or components of the leased minerals. No cost incurred in meeting these duties is deductible in the computation of the
royalty due under this lease except where expressly allowed in this lease. Should LESSEE not put the leased minerals into a marketable
condition as required herein, royalty due under this lease will nevertheless be calculated upon the market value, as defined herein,
of the leased minerals in a marketable condition. Should LESSEE not put the leased minerals into their most valuable component
or components as required herein, royalty due under this lease will nevertheless be calculated upon the market value, as defined
herein, of this most valuable component or components in a marketable condition. Neither the bonus, rentals, nor royalties paid
or to be paid hereunder shall relieve LESSEE from any of the obligations herein expressed. The point at which these said duties
have or could have been complied with shall define “the mine” as that phrase is used in this lease for the purposes
of royalty calculation.

 

     

     

    

 

(b)
Should LESSEE, in performance of those duties required in Section 7(a) of this lease, transport the leased minerals to a location
away from the leased premises, LESSEE may deduct, for the purposes of royalty calculation, the transportation cost, as defined
by Generally Accepted Accounting Principles, incurred in and directly allocable to that transportation of the leased minerals
from the leased premises, and no other costs, as follows:

 

If
LESSEE actually incurs this transportation cost pursuant to a bona fide transaction entered into at arm’s length with a non-affiliated
party (as defined in Section 8(a) of this lease) of adverse economic interests, then this transportation cost, if reasonable,
may be deducted for the purposes of royalty calculation. If this transportation cost is incurred pursuant to other than the above-described
transaction, including by means of LESSEE-owned facilities, then this deduction shall be determined by the reasonable costs that
(1) are actually incurred by the party or parties. (whether that party is LESSEE and/or some other party) that actually performs
the transportation service (hereinafter referred to in this subsection (b) as the “transporter”) and (2) are directly
allocable to this transportation of the leased minerals. Therefore, the deduction allowed in this second type of transaction (i.e.
non arm’s length, etc.) shall not include any profit margin, commission or any other similar charge that is charged by any transporter
for the performance of this transportation service. In no event shall any transportation deduction discussed in this subsection
(b) include any transportation cost incurred for transportation within the leased premises. In no event shall any deduction discussed
in this subsection (b) be greater than the State or Federal tariff, whichever was legally applicable, that was in effect at the
time the leased minerals were transported and that was for comparable movement of minerals. The deduction discussed in this subsection
(b) is subject at any time to the COMMISSIONER’s review and audit. LESSEE must be able to document these deductions to the COMMISSIONER’s
satisfaction, should the COMMISSIONER at any time request such verification, in order to properly deduct these costs.

 

(c)
LESSEE shall also have the duty to diligently market the leased minerals that are produced, processed and made marketable as required
above. (See Section 8(a) for an explanation of the allowed deductions for the costs incurred in meeting this duty for royalty
calculation purposes.)

 

8.             PRODUCTION
ROYALTY: As a production royalty LESSEE agrees to pay in the manner prescribed in Section 27 of this lease a sum equal to
Eight percent (8%) of the Market Value (as defined below) of the uranium and other fissionable minerals, and Six and
25/100 percent (6.25%) of the Market Value (as defined below) of all other leased minerals at “the mine”
(as defined in Section 7(a)) produced from the leased premises. (For the treatment of waste material, see Section 13.) Notwithstanding
anything contained herein, it is expressly provided in accordance with Texas Natural Resources Code, §53.018 that if production
is obtained, the state shall receive not less than one-sixteenth (6.25%) of the value of the leased minerals produced from the
leased premises.

 

(a)
Market Value Definition and Procedure. Market value, as that Phrase is used in this lease, shall be defined to mean the higher
of, at the option of the COMMISSIONER: (1) gross proceeds received by LESSEE (e.g., the gross price paid or offered LESSEE) from
the sale of the leased minerals and including any reimbursements for severance taxes and production related costs, or (2) highest
price for materials or minerals (a) produced from the leased premises or from other mines and (b) that are comparable in quality
to the produced leased minerals. Price shall be determined by any generally accepted method of pricing chosen by the COMMISSIONER,
including, but not limited to, comparable sales (e.g. prices paid’ or offered), published prices plus premium, and values/costs
reported to a regulatory agency. Provided, however, that in no event shall the royalty due the State be less than the minimum
royalty amounts set out in this lease.

 

For
purposes of computing and paying royalties under this lease, the market value shall be presumed to be the gross proceeds received
by LESSEE pursuant to a bona fide transaction entered into at arms’ length with a non-affiliated party, as defined hereafter,
of adverse economic interests. An affiliated party is defined for the purposes of this lease as a subsidiary, or parent of LESSEE
or other entity in which LESSEE or an owner of LESSEE has a financial interest by stock ownership or otherwise of ten percent
or more or one related to LESSEE or an owner of LESSEE by blood, marriage or common business enterprise. A non-affiliated party
is defined, for the purposes of this lease, as one without any of the above described characteristics of an affiliated party.
This presumption may be overcome and additional royalties may be assessed under Section 8(a)(2) of this lease when a different
price is established by any of the methods set out in that section.

 

Should
LESSEE incur post-“mine” costs, i.e. costs other than those incurred as a result of the LESSEE’s performance of those
duties required in Section 7(a) of this lease, then, at the option of the COMMISSIONER, the market value of the leased minerals
at “the mine” shall be determined by the market value of the leased minerals, as defined above, after some or all of
these post-“mine” costs have been incurred, less these post-“mine” costs, as defined by this lease and Generally
Accepted Accounting Principles, actually incurred in and directly allocable to out of pocket costs, charges and expenses incurred
by LESSOR in: (1) transporting run of the mine ore from the portal, pit opening or shaft collar to the mill or other place where
beneficiation, concentration or refining takes place; (2) concentrating, including the cost of milling, floatation, thickening,
regrinding, and filtering; (3) roasting; (4) loading and shipping; and (5) handling tailings and mine waste, (such activities
are hereinafter referred to in this paragraph as “marketing”), and no other costs, as follows: If these marketing costs
are actually incurred by LESSEE pursuant to a bona fide transaction entered into at arms’ length with a non-affiliated party
(as defined in Section 8(a) of this lease) of adverse economic interests, then these actual marketing costs, if reasonable, may
be deducted for the purposes of royalty calculation. If these marketing costs are incurred pursuant to other than the above described
transaction, including by means of LESSEE-owned facilities, then this marketing deduction shall be determined by the reasonable
costs that (1) are actually incurred by the party or parties (whether that party is LESSEE and/or some other party) that actually
perform the post-“mine” marketing services (hereinafter referred to in this paragraph as the “marketer”) and
(2) are directly allocable to this marketing of the leased minerals. Therefore, the deduction allowed in this second type of transaction
(i.e. non arm’s length, etc.) shall not include any profit margin, commission or any other similar charge that is charged by any
marketer for the performance of these marketing services. In no event shall any deduction discussed in this paragraph be greater
than the lowest charge available for comparable services or products from an unaffiliated party (defined in Section 8(a) of this
lease) with economic interests adverse to those of LESSEE. In no event shall any transportation deduction discussed in this paragraph
include any transportation cost incurred for transportation within the “the mine”: A deduction for the costs of post-“mine”
transportation shall not exceed the State or Federal tariff, whichever was legally applicable, that was in effect at the time
the leased minerals were transported and that was for comparable movement of minerals. All deductions discussed in this paragraph
are subject at any time to the COMMISSIONER’s review and audit. LESSEE must be able to document these deductions to the COMMISSIONER’s
satisfaction, should the COMMISSIONER at any time request such verification, in order to properly deduct these costs.

 

(b)
Gross Proceeds Definition and Procedure. For the purpose of determining gross proceeds, the following will apply: When a LESSEE
sells or otherwise transfers the leased minerals to a purchaser or .transferee by other than a bona fide transaction entered into
at arm’s length with a non-affiliated party of adverse economic interests, the COMMISSIONER, at his option, may choose to use
(1) such purchaser’s or transferee’s gross proceeds received from its sale of the leased minerals or (2) the total financial benefit
accruing to the LESSEE and the purchaser or transferee for the purposes of royalty calculation instead of the LESSEE’s
gross proceeds received from the sale or transfer to said purchaser or transferee. LESSEE agrees to obtain and provide the COMMISSIONER
all information requested by the COMMISSIONER for the purposes of determining the affiliation or relationship of LESSEE and a
purchaser or transferee of the leased minerals. As in the case of royalty calculation based on the LESSEE’s gross proceeds, no
costs incurred as required under this lease are deductible for the purposes of calculating the royalty due under this lease except
where expressly allowed in this lease. Upon satisfactory evidence provided to the COMMISSIONER and subject to the COMMISSIONER’s
discretion, the purchaser’s or transferee’s gross proceeds or the total of the financial benefit accruing to LESSEE and the purchaser
or transferee will not be used for royalty calculation purposes if LESSEE demonstrates that during the relevant time period either:
(1) the purchaser or transferee was legitimately in the business of purchasing and processing or marketing the leased minerals
at issue from parties other than those w:ith which it is affiliated, as defined above, and that its transaction with the LESSEE
was an arms’ length transaction or (2) the transaction at issue contained terms equivalent to those Of comparable transactions
between non-affiliated parties. In the event LESSEE sells or transfers title to a material and/or mineral covered by this lease
and retains a financial interest or benefit to be returned at some later date, the Commissioner may elect to calculate royalty
due upon the total value eventually returned to LESSEE.

 

     

     

    

 

(c)
Minimum Royalty. Provided, however, in no event shall the royalty due under this lease be less than One Dollar ($1.00)
per pound of the U308 (yellow cake) and Forty Cents ($0.40) per pound of the BeO
(beryllium oxide), contained in the ore produced from leased premises.

 

(d)
In Kind Royalty. Notwithstanding anything contained herein to the contrary, COMMISSIONER may at the COMMISSIONER’s option, upon
not less than 60 days’ notice to LESSEE, require at any time or from time to time that payment of all or any portion of
the royalties accruing to the State under this lease be made in kind (i.e. Six and 25/100 percent (6.25%)) of the
gross production of the leased minerals) at “the mine” without any deduction (including, but not limited to, deduction
for the cost of producing, separating, treating, concentrating, processing, or storing said leased minerals or otherwise meeting
the duties set out in Section 7 of this lease). Any leased minerals taken in kind shall be loaded at LESSEE’s expense upon the
transportation provided by LESSOR at “the mine”. The COMMISSIONER may, at the COMMISSIONER’s option, so require such
in kind payment to be so made at a point prior to “the mine”. In kind payments of the leased minerals made ready for
in kind delivery during a given calendar month shall be made on or before, at the COMMISSIONER’s discretion, the last day of the
following calendar month.

 

(e)
Payments and Reports. Unless the COMMISSIONER elects to take the royalties stipulated in this lease in kind, all royalties not
taken in kind are to be received by the COMMISSIONER, at Austin, on or before the last day of each calendar month for the leased
minerals produced during the preceding calendar month. For the purposes of the prior sentence only, “produced” shall
be defined in the applicable administrative rule effective when the leased minerals on which royalty is owed were physically extracted
from the leased premises. The royalty payment shall be accompanied by an affidavit of the LESSEE or his authorized representative
completed in the following form and manner: The report shall be based on LESSEE’s samples, assays, analyses, measurements and
records and shall set forth, using the appropriate measurements, the type and exact amount of all materials and/or minerals produced
from the leased premises during the preceding calendar month and the amount of royalty being submitted. If any materials and/or
minerals produced from the leased premises have been sold during the preceding calendar month, then the report shall also set
out the type and exact amount of each material and/or mineral sold during the preceding calendar month, the gross amount received
for and the market value of the same (including the method and figures used to calculate this value as shown by any relevant documents,
records, reports or schedules), and to whom sales were made. If these sales were made to an affiliated or related party, the report
shall set out the details of such affiliation or relationship. In addition, the report shall be accompanied by production _records,
ore records, sales receipts, invoices, weight receipts, records of mill, mint, refinery or smelter settlements, and other pertinent
returns or documents which shall substantiate the selling price of the materials and/or minerals and the compliance of LESSEE
with the royalty or other provisions of this lease and any other report, record, or document the COMMISSIONER may require to verify
such compliance. If any materials and/or minerals produced from the leased premises have been used by LESSEE during the preceding
calendar month, then the report must also indicate the type and exact amount of each material and/or mineral so used and the method
and figures used by LESSEE to calculate the value of each material and/or mineral so used as shown by any relevant documents,
records, reports or schedules. Each royalty payment shall be accompanied by a check stub, schedule, summary or other remittance
advice showing, by the assigned General Land Office lease number, the amount of royalty being paid on each lease. Even if royalty
payments are not due or are taken in kind, an affidavit of the LESSEE or his authorized representative, completed in the same
form and manner as described in this paragraph, shall be filed with the General Land Office on or before the last day of each
calendar month.

 

(f)
Penalty and Interest. Delinquent royalty payments and reports shall accrue penalty and/or interest as determined by Texas Natural
Resources Code §53.024 or its successor and any applicable administrative rule in effect at the time the royalty payments
or reports were due. As of the date of this lease, the following are the current key penalty and interest provisions under which
this lease shall operate: If LESSEE pays royalty on or before thirty (30) days after the royalty payment was due, then LESSEE
owes a penalty of 5% on the royalty due or $25.00, whichever is greater. A royalty payment which is over thirty (30) days delinquent
shall accrue a penalty of 10% of the royalty due or $25.00 whichever is greater. In addition to a penalty, royalties shall accrue
interest at a rate of 12% per year; such interest will begin to accrue 60 days after the due date. Documents which are required
under this lease or by law and not filed when due shall incur a penalty in an amount set by the General Land Office administrative
rules. The LESSEE shall bear all responsibility for paying royalties or causing such royalties to be paid in the manner prescribed
in this lease. Payment of the delinquency penalty shall in no way opera e to prohibit the State’s right of forfeiture as provided
by law and by this lease nor act to postpone the date on which royalties were originally due. The above penalty Provisions shall
not apply in cases of title dispute as to the State’s portion of the royalty or to that portion of the royalty in dispute as to
fair market value.

 

9.             SHUT-IN
ROYALTY: If at the expiration of the primary term or at any time thereafter: (1) the leased premises is capable of producing
the named minerals in paying quantities, and (2) this lease is not otherwise being maintained in force and effect, then LESSEE
may, at LESSEE’s option, pay as a shut-in royalty, in the same manner prescribed in Section 28 of this lease, an amount equal
to Fifty Thousand and No/100 Dollars ($ 50,000.00). To be effective, any shut-in royalty must be received by LESSOR
on or before: (l) the expiration of the primary term, or (2) not more than sixty days after LESSEE ceases to produce the named
minerals in paying quantities from the leased premises, or (3) not more than sixty days after LESSEE completes a mining or rehabilitation
operation on the leased premises in accordance with an approved plan of operations, whichever date is latest and must be in the
full amount set out above and this lease must have theretofore been maintained in force and effect. The shut-in royalty payment
shall be accompanied by (1) a statement by LESSEE describ4tg the circumstances requiring the use of this shut-In provision and
(2) an affidavit by LESSE that the mine is shut-in and not producing in paying quantities.

 

If
the shut-in royalty is properly paid and received, this lease shall be considered to be a producing lease and the shut-in payment
shall hold this lease in force and effect for a period of one year from the end of the primary term or from the first day of the
month following the month in which production in paying quantities ceased or in which said mining or rehabilitation operations
were completed, whichever date is later. After that one year period, if the above listed conditions still exist, LESSEE may, at
LESSEE’s option, continue to hold this lease in force and effect by shut-in royalty payments for additional and successive periods
of one year each if the LESSOR receives the same shut-in royalty amount set out above each year on or before the expiration of
the previously held one year period. If the due date of a shut-in royalty payment should fall on a Saturday, Sunday or a legal
state or federal holiday, the due date shall be extended to the next calendar day which is not a Saturday, Sunday, or such a holiday.
It is provided, however, that shut-in royalty cannot serve to hold this lease in force and effect for more than five years from
the date this lease is initially shut-in (i.e. from the first date of the first shut-in period of this lease). LESSEE may proportionately
reduce any shut-in payment that if made will hold this lease in effect for less than a full year because of this five (5) year
maximum.

 

None
of these provisions shall relieve LESSEE of the obligation of reasonable development. Neither receipt nor retention by the LESSOR
of an improperly paid shut-in payment shall operate as a ratification or a re-grant of the interest covered by this lease if this
lease terminated because of improper payment, nor shall such receipt or retention estop LESSOR from asserting the termination
of this lease. Minimum advance royalty that has been paid shall not be credited against a shut-in payment Lessee chooses to make.
Shut-in royalty payment shall not be credited against any production royalty due as provided in this lease for the leased minerals
actually produced during any shut-in period or thereafter.

 

10.           MEASURING,
ASSAYING AND ANALYZING: LESSEE shall install and use scales, meters, or any other measuring device reasonably necessary to
accurately measure the produced leased minerals, prior to said leased minerals being moved from the leased premises. It is understood
and agreed that the COMMISSIONER may, with reasonable notice, require the LESSEE, at any time and at the LESSEE’s expense, to
assay and/or analyze the produced leased minerals in a manner consistent with standard techniques of the industry to determine
its material or mineral content and/or its quality.

 

     

     

    

 

11.           INSPECTIONS:
The books, accounts, weights, wage contracts and records, correspondence, records, contracts and other documents relating to the
production, transportation, assaying, analyzing, processing, recovery, use, sale, and marketing of the leased minerals shall at
all times be subject to inspection and examination by the COMMISSIONER, or the COMMISSIONER’S authorized representative,
and copies of such records shall be forwarded to the COMMISSIONER at Austin, Texas upon request.

 

LESSEE’s
mining, milling, and processing operations shall be subject at any time to inspection by the COMMISSIONER or the COMMISSIONER’S
authorized representative. This inspection right shall include, but shall not be limited to, the following: the COMMISSIONER or
the COMMISSIONER’S authorized representative is authorized (1) to check scales, sampling and assaying procedures as to their accuracy,
(2) to have full access to any of the entries, shafts, pits, stopes or workings on the leased premises and to any of LESSEE’s
other mining, milling and processing operations, and (3) to examine, inspect, survey and take measurements of same and to examine
all books and weight sheets, records and any other documents that relate to these operations or that may show in any way the material
or mineral output of the leased premises or any other aspect of compliance with the covenants or conditions of this lease, whether
express or implied. Copies of any records or other documents pertaining to these operations shall be furnished to the COMMISSIONER
upon written request. LESSEE shall cooperate in such manner as shall be reasonably necessary for said inspection, survey, or examination.
All inspections, examinations, and the like provided for herein may be performed at any time and without any requirement of prior
notice.

 

12.           LIEN:
By acceptance of this lease, LESSEE grants the State, in addition to any applicable statutory lien, an express contractual lien
on and security interest in all leased minerals in and extracted from the leased premises, all proceeds which may accrue to LESSEE
from the sale of such leased minerals, whether such proceeds are held by LESSEE or by a third party, and all fixtures on and improvements
to the leased premises used in connection with the production or processing of such leased minerals in order to secure the payment
of all royalties or other amounts due or to become due under this lease and to secure payment of any damages or loss that LESSOR
may suffer by reason of LESSEE’s breach of any covenant or condition of this lease, whether express or implied. This lien and
security interest may be foreclosed with or without court proceedings in the manner provided in Title 1, Chapter 9 of the Texas
Business and Commerce Code.

 

LESSEE
agrees that the COMMISSIONER may require LESSEE to execute and record such instruments as may be reasonably necessary to acknowledge,
attach or perfect this lien. LESSEE hereby represents that there are no prior or superior liens arising from and relating to LESSEE’s
activities upon the above-described property or from LESSEE’s acquisition of this lease. Should the COMMISSIONER at any time determine
that this representation is not true, then the COMMISSIONER may declare this lease forfeited as provided in Section 18 of this
lease.

 

13.           REQUIRED
FILINGS: A log, sample analysis, or other information obtained from each test drilled or area sampled on the area covered
by this lease shall be filed with the General Land Office upon request. Within ninety (90) days after any sampling, drilling,
mining or other evaluation program shall have been completed or abandoned, LESSEE shall file in the General Land Office an evaluation
map or plat showing all geological formations penetrated, the depth, thickness, grade, and mineral character of all ore bodies,
the water bearing strata, the elevation and location of all test holes, and other pertinent information. Tue correctness of such
map or plat shall be sworn to by LESSEE or his representative. Further, LESSEE must furnish annually on the anniversary date of
this lease a map or plat showing all activities and workings conducted on or in association with this lease. The filings discussed
in this section shall be required notwithstanding the fact that this lease may have subsequently terminated, been forfeited or
been released.

 

14.           DEVELOPMENT:
If the leased minerals are capable of being economically produced by the LESSEE in commercial quantities, LESSEE agrees to diligently
develop the leased premises into a viable mine and to mine the leased minerals in such a manner as is consistent with good mining
practice including, but not limited to, in a manner consistent with General Land Office and Railroad Commission rules and regulations.
Neither bonus, rentals nor royalties paid or to be paid hereunder shall relieve the LESSEE from any of the obligations herein
expressed. Such methods -of mining must be used as will insure the extraction of the greatest possible amounts of the leased minerals
consistent with prevailing good mining practice. Specific examples of compliance with the above include, but are not limited to:

 

		(a)	LESSEE
                                         agrees to slope the sides of all surface pits, excavations and subsidence areas in a
                                         manner consistent with good mining practices. Such sloping is to become a normal part
                                         of the operation;

		(b)	Whenever
                                         practicable, all surface pits, excavations and subsidence areas shall not be allowed
                                         to become a hazard to persons, wildlife or livestock;

		(c)	LESSEE
                                         agrees to mine the leased minerals in such a manner as to leave as much level surface
                                         as is reasonable and consistent with prevailing good mining practices; All development
                                         shall be done in such a manner as to prevent the pollution of water.

		(d)	In
                                         underground workings, all shafts, inclines, and drifts must be adequately supported and
                                         all parts of workings, where minerals commercially minable are not exhausted, shall be
                                         k pt free from water and waste materials to the extent reasonably possible;

		(e)	Underground
                                         workings are to be protected against fire, floods, creeps and squeezes. If such events
                                         do occur, they shall be checked by LESSEE to the extent and in a manner which is in keeping
                                         with good methods of mining;

		(f)	If
                                         relevant, LESSEE shall take all steps a reasonably prudent operator would take to adequately
                                         protect the leased minerals from drainage by operations on other lands or this lease
                                         shall be subject to forfeiture by the COMMISSIONER; and

		(g)	As
                                         governed by the duties and standards set out in Section 7 of this lease, all leased minerals
                                         produced by LESSEE from the leased premises that cannot be so marketed (herein called
                                         “waste materials”) will be used to fill the pits, shafts and excavations on
                                         the leased premises and no royalty shall be due thereon ·at that time. No other
                                         use of these waste materials or any leased mineral is allowed unless the LESSEE obtains
                                         the COMMISSIONER’s prior written consent to such other use. However, should another use
                                         of the leased minerals be permitted, royalty shall be due for these used leased minerals
                                         in accordance with Sections 7 and 8 of this lease and, should another use of the waste
                                         materials be permitted, the waste material royalty exception of this subsection shall
                                         not apply and royalty shall be due for these used waste materials in accordance with
                                         sections 7 and 8 of this lease. The LESSEE’s duty regarding the leased minerals as set
                                         out in Section 7 of this lease is a continuing duty. Should changing technology or market
                                         conditions render any component of former waste materials marketable, then LESSEE shall
                                         (1) process, make marketable and market those former waste materials as set out in Section
                                         7 of this lease and (2) pay royalty thereon in accordance with Sections 7 and 8 of this
                                         lease. The state reserves the title to all minerals contained in these waste materials
                                         both during the term of this lease, subject to LESSEE’s duty set out above, and upon
                                         the expiration, surrender, or termination of this lease.

 

Nothing
in this section shall be construed to give LESSEE the right to sell or otherwise dispose of minerals or substances other than
those covered hereby.

 

In
the event LESSEE, in the interest of economy or efficiency of mining operations or for other valid reasons, intends to conduct
mining operations on or within the leased premises in conjunction with mining operations on or within any other land (whether
state or privately owned), for example by commingling production, then prior thereto LESSEE must obtain the COMMISSIONER’s approval
of such plan of operations, which shall not unreasonably be withheld.

 

     

     

    

 

15.           RECLAMATION:
By the end of the term of this lease, LESSEE shall grade the leased premises so that the grade of the leased premises shall approximate
the grade of the surrounding topography. Upon completion of the required grading, the surface shall be reseeded with a seed mixture
approved by the COMMISSIONER. Should this obligation not be met by the end of the term of this lease, it shall nevertheless survive
and continue beyond the term of this lease and shall be an obligation owed to the state. This obligation is owed by LESSEE in
addition to any other obligation imposed upon LESSEE by this lease, including, but not limited to, the requirements of Section
6 hereof and LESSEE’s plan of operations.

 

16.           TRANSFERS
(E.G. ASSIGNMENTS): After obtaining written approval by the COMMISSIONER, which shall not unreasonably be withheld, this lease
may be transferred at any time. All transfers must reference the lease by the file number and must be recorded in any county in
which any portion of the leased premises is located, and each such recorded transfer or a certified copy of each such recorded
transfer shall be filed in the General Land Office within ninety (90) days after the execution of the transfer, as provided by
Texas Natural Resources Code §52.026, accompanied by the appropriate filing fee. A transfer is not effective until these
required documents are properly filed in the General Land Office. Failure to properly file these required documents in the General
Land Office shall subject this lease to forfeiture. The filing fee due under this section shall be determined by the applicable
statute and/or administrative rule in effect at the time the transfer is filed in the General Land Office.

 

Upon
any assignment of this lease, in whole or in part, the assignee will succeed to all rights and be subject to all liabilities,
claims, obligations, penalties, and the like, theretofore incurred by the assignor, including any liabilities to the State for
unpaid royalties. However, such assignment will not have the effect of releasing the assignor from any liability, claim, obligation,
penalty, Or the like, theretofore accrued in favor of the State. In addition, upon any assignment of this lease, the assignee
assumes, for the benefit of the State, the obligation to fulfill all provisions and covenants of this lease, both expressed and
implied. Assignee, as used in this section, shall also include any successor, devisee, legal representative or heir of an assignee
who acquires any right or obligation initially held by that assignee under this lease.

 

Upon
assignment of any divided part of this lease, whether divided by acreage, zone, horizon, vein, mineral or other similar method,
said assigned interest shall become segregated from the remaining portion of this lease so that from the date of such assignment
or assignments, the provisions hereof shall extend and be applicable severally and separately to each segregated portion of the
land covered hereby and so assigned, so that performance or lack of performance of the provisions hereof as to any segregated
portion of this lease shall not benefit or prejudice any other segregated portion, to the same extent as if each segregated portion
of the lands covered hereby are under separate leases. It is understood and agreed that the effect of such an assignment is to
create two separate leases, both of which must comply with their lease terms in order to keep their leases in force.

 

In
the case of ownership or assignment of any undivided interest in this lease, no covenant or condition thereof, implied or expressed,
is divisible. Anything less than complete compliance with said covenants or conditions shall render this lease subject to forfeiture
and/or termination as provided by the lease’s provisions.

 

17.           RELEASES:
The LESSEE may release all or any portion of this lease to the State at any time. To release this lease, LESSEE must record the
relevant instrument or instruments evidencing such release in each county where the leased premises are located and mail a certified
copy of each such recorded release to the General Land Office, accompanied by the appropriate filing fee. Any release will not
have the effect of releasing LESSEE from any liability, claim, obligation, penalty, or the like, theretofore accrued in favor
of the State nor will it have the effect of reducing any amount due under this lease. A release is not effective until the required
certified copies of that release are filed in the General Land Office. Failure to file the required certified copies of a release
in the General Land Office shall subject this lease to forfeiture. The filing fee due under this section shall be determined by
the applicable statute and/or administrative rule in effect at the time the release is filed with the General Land Office.

 

18.           AUTHORITY
OF MANAGER OR AGENT: When required by the COMMISSIONER, the authority of a manager or agent to act for LESSEE must be filed
in the General Land Office.

 

19.           FORFEITURE:
If LESSEE shall fail or refuse to make payment of any sum due, or if LESSEE or LESSEE’s agent should refuse the COMMISSIONER
or his authorized representative access to the records or other data pertaining to the operations under this lease, or if LESSEE
or LESSEE’s agent should knowingly make any false return or false report concerning this lease, or if any of the material
terms of this lease should be violated, then this lease and all rights hereunder shall be subject to forfeiture by the COMMISSIONER,
and the COMMISSIONER may declare this forfeiture when sufficiently informed of the facts which authorize a forfeiture, and, in
such event, the COMMISSIONER shall write on the wrapper containing the papers relating to this lease words declaring the .forfeiture
and sign it · officially; and this lease, and all rights under this lease, together with all payments made under it, shall
thereupon be forfeited. Notice of the forfeiture shall be mailed forthwith to the person or persons shown by the records of the
General Land Office to be the owner of the forfeited lease at their last known addresses as shown by said records. However, nothing
herein shall be construed as waiving the automatic termination of this lease by operation of law or by reason of any term or condition
arising hereunder.

 

20.           REINSTATEMENT:
A forfeiture may be set aside and all rights under this lease may be reinstated before the rights of another party intervene,
upon satisfactory evidence to the COMMISSIONER of future compliance with the provisions of the law, this lease, and any rules
adopted applicable to this lease and with any conditions placed upon the reinstatement. LESSEE shall offer the evidence required
for reinstatement within 30 days after the date the notice of forfeiture was mailed and after such 30 days, LESSEE shall have
no future opportunity for reinstatement.

 

21.           FORCE
MAJEURE: When, after effort is made in good faith, LESSEE is prevented from complying with any express or implied covenant
of this lease or from producing and mining the named material from the leased premises by reason of storm, flood, or other acts
of God, fire, war, rebellion, insurrection, riot, strikes, or as result of any valid order, rule or regulation of any court or
governmental authority having jurisdiction, or litigation required to gain access to the lands described in this lease under the
power of eminent domain as provided in §11.079, Texas Natural Resources Code, effective September 1, 1987 (for the period
beginning with the filing of the action in a court of competent jurisdiction until a final non-appealable order is entered in
such action but not including periods of pre-filing discussions or negotiations), then upon written application by LESSEE and
upon written approval thereof by the COMMISSIONER, LESSEE’s obligation to comply with such covenant shall be suspended while
LESSEE is so prevented; and LESSEE shall not be liable for damages for failure to comply with such covenant while LESSEE is so
prevented; and this lease shall be extended while and so long as LESSEE is so prevented from producing and mining the named material
from the leased premises. Provided, however, that nothing in this section shall be construed to suspend the ·condition
of paying delay rentals as set out in Section 3 hereof. As dictated by 31 Texas Administrative Code §10.3(d)(l), the term
of this lease may not be extended by this Section to exceed twenty (20) years.

 

22.           USE
OF WATER: LESSEE shall have the right to use water produced during operations under this lease as is reasonably necessary
for operations under this lease except water from wells or tanks of the surface owner or any surface lessee; provided, however,
LESSEE shall not use potable water or water suitable for livestock or irrigation purposes for operations without the prior written
consent of the COMMISSIONER.

 

23.           DAMAGE
PAYMENTS FOR PERSONAL PROPERTY, IMPROVEMENTS, LIVESTOCK AND CROPS: LESSEE shall pay damages caused by its operations to all
personal property, improvements, livestock and crops on said land to the owner of said items.

 

     

     

    

 

24.           SURFACE
USE: Subject to the obligation to pay surface damages as set out in Section 33 of this lease, and to any reservation in favor
of LESSOR, LESSEE shall have the right to occupy within the limits of this lease so much of the surface as may be reasonably necessary
for the development of leased minerals; and shall have the right of ingress and egress over and across the area embraced herein.

 

25.           SURFACE
USE LIMITATIONS: LESSEE shall not drill or mine, erect buildings or conduct any mining operations within three hundred (300)
feet of improvements without reasonably compensating the owner of said improvements.

 

26.           REMOVAL
OF EQUIPMENT AND FIXTURES: LESSEE shall not be permitted to remove any casing or wellhead from any well or bore hole during
the life of this lease or after the termination, expiration, or forfeiture of this lease without the written consent of the COMMISSIONER
or his authorized representative. LESSEE shall have the right to remove all equipment, machinery, tools, supplies, and installations,
excluding the casing and wellhead, placed by LESSEE on the leased premises during the life of this lease and for a period of three
hundred sixty-five (365) days after the termination, expiration or forfeiture of this lease, unless an extension in writing of
such three hundred sixty-five (365) day period has been obtained from the COMMISSIONER or some other written agreement is reached
between all parties to this lease.

 

27.           FILING
REQUIREMENTS: LESSEE shall record this executed lease in each county in which the lease premises is located. After such recordation,
LESSEE shall obtain a certified copy of the recorded lease from the county clerk. LESSEE shall send such certified copies to the
General Land Office within ninety days of the date of recordation.

 

28.           PAYMENTS,
NOTICES AND OTHER REQUIRED DOCUMENTS: Unless otherwise expressly provided for herein, all payments provided for in this lease
shall be payable to the COMMISSIONER of the General Land Office at Austin, Texas, for the use and benefit of the State of Texas.

 

All
notices, payments and other documents required or due hereunder shall be given to the parties at their respective addresses as
follows and shall be deemed received only upon actual receipt, unless ’‘receipt” is otherwise defined by an applicable Texas
Statute or Administrative Rule:

 

	 	(a)  If to LESSOR, COMMISSIONER,
    General Land Office, State or State of Texas:
	 	 	General Land Office	 
	 	 	1700 North Congress	 
	 	 	Austin, Texas 78701	 
	 	 	Attn: Minerals Leasing Division	 
	 	 	 	 
	 	(b)  If to LESSEE:	Texas Rare Earth Resources Inc.	Tax Payer ID # __________
	 	 	304 Inverness Way South, Suite 365	 
	 	 	Englewood, Colorado 80112	 

 

or
addressed to any of the above parties at such other addresses as such party shall hereafter furnish to the other parties in Writing.
Any notice of change of address shall not be binding on a party until the expiration of 30 days after the receipt of such notification
by that party. Such notification must be in writing, delivered or mailed by registered or certified mail.

 

29.           APPLICABLE
LAW: The law of the United States and the State of Texas shall apply to and govern this lease in any and all matters whatsoever.
For the purposes of this lease, such law shall include, but shall not be limited to, Texas Water Code §61.117 and all current
and future General Land Office and/or School Land Board administrative rules governing State minerals other than oil and gas that
are not in direct conflict with the provisions contained in this lease. In addition, mining operations in submerged areas are
further subject to the applicable laws of the United States regarding mining in such submerged areas.

 

30.           BINDING
EFFECT: This lease and the provisions hereof shall be binding upon and inure to the benefit of State and LESSEE and their
respective heirs, devisees, legal representatives, successors and assigns.

 

31.           IMPLIED
COVENANTS: Neither payment of bonus, rental, royalties nor compliance with any other covenant or condition of this lease shall
relieve the LESSEE from any obligation expressed in this lease or implied by law unless this lease expressly so relieves the LESSEE.

 

32.           REMEDIES:
The remedies provided for in this lease are not exclusive and in no way shall limit any other lawful claim or remedy available
to the State under law.

 

33.           PAYMENT
OF DAMAGES FOR USE OF SURFACE: Upon the issuance of this lease, LESSEE shall pay, in the manner prescribed in Section 27 of
this lease, surface damages to the LESSOR in the amount of Dollars ($. QJ for the use of the surface of the leased premises
in prospecting for, exploring, developing, or producing the leased minerals during the first year of this lease. On or before
one (1) year after the date of this lease, if this lease is still held in effect on that anniversary date, LESSEE shall pay, in
a like manner, surface damages to LESSOR in a like amount for like use of the surface of the leased premises during the second
year of this lease. On or before two (2) years after the date of this lease (ie. on the 20 NA anniversary date), if this
lease is still held in effect on that anniversary date, LESSEE shall pay, in a like manner, surface damages to LESSOR in a like
amount for like use of the surface of the leased premises during the third year of this lease. In no event shall any payments
for damages for use of the surface be paid to any party other than LESSOR, nor production royalty or any other benefit reserved
to LESSOR in this lease.

 

34.           SEVERABILITY:
If any section of this lease or its application to any person or circumstance shall be held to be invalid by a court of competent
jurisdiction, such invalidity shall not affect any other section of this lease, or any application thereof, that can be given
effect without the invalid section or application. To this end, the sections of this lease, or any portion thereof, are declared
to be severable.

 

35.           LEASE
SECURITY: LESSEE shall take the degree of care and all proper safeguards a reasonably prudent operator would take to protect
the leased premises and to prevent theft of all materials and/or minerals produced from the leased premises. This includes, but
is not limited to, the installation of all necessary equipment, seals, locks, or other appropriate protective devices on or at
all access points at the lease’s production, gathering and storage systems where theft of said materials and/or minerals can occur.
LESSEE shall be liable for the loss of any of said materials and/or minerals resulting from theft and shall pay the State royalties
thereon as provided in this lease on all leased minerals lost by reason of theft.

 

     

     

    

 

36.           ANTIQUITIES
CODE: In the event that any foundation, site, item, or the feature of archaeological, scientific, or historic interest is
encountered during the activities authorized by this lease, LESSEE will immediately cease such activities and will immediately
notify the LESSOR and the Texas Antiquities Committee so that adequate measures may be undertaken to protect or recover such discoveries
or findings, as appropriate. In this regard, LESSEE is expressly placed on notice of the National Historical Preservation Act
of 1966, (PB-89-66, 80 Statute 915; 16 U.S.C.A. 470) and the Antiquities Code of Texas, Chapter 191, Natural Resources Code.

 

37.           INDEMNIFICATION:
Lessee hereby releases and discharges the State of Texas, its officers, employees, partners, agents, contractors, subcontractors,
guests, invitees, and their respective successors and assigns, of and from all and any actions and causes of action of every nature,
or other harm, including environmental harm, for which recovery of damages is sought, including, but not limited to, all losses
and expenses which are caused by the activities of Lessee, its officers, employees, and agents arising out of, incidental to,
or resulting from, the operations of or for Lessee on the leased premises hereunder, or that may arise out of or be occasioned
by Lessee’s breach of any of the terms or provisions of this Agreement, or by any other negligent or strictly liable act or omission
of Lessee. Further, Lessee hereby agrees to be liable for, exonerate, indemnify, defend and hold harmless the State of Texas,
its officers, employees and agents, their successors or assigns, against any and all claims, liabilities, losses, damages, actions,
personal injury (including death), costs and expenses, or other harm for which recovery of damages is sought, under any theory
including tort, contract, or strict liability, including attorneys’ fees and other legal expenses, including those related to
environmental hazards, on the leased premises or in any way related to Lessee’s failure to comply with any and all environmental
laws; those arising from or in any way related to Lessee’s operations or any other of Lessee’s activities on the leased premises;
those arising from Lessee’s use of the surface of the leased premises; and those that may arise out of or b-e occasioned by Lessee’s
breach of any of the terms or provisions of this Agreement or any other act or omission of Lessee, its directors·, officers,
employees, partners, agents, contractors, subcontractors, guests, invitees, and their respective successors and assigns. Each
assignee of this Agreement, or an interest therein, agrees to be liable for, exonerate, indemnify, defend and hold harmless the
State of Texas and its officers, employees, and agents in the same manner provided above in connection with the activities of
Lessee, its officers, employees, and agents as described above. EXCEPT AS OTHERWISE EXPRESSLY LIMITED HEREIN, ALL OF THE INDEMNITY
OBLIGATIONS AND\OR LIABILITIES ASSUMED UNDER THE TERMS OF THIS AGREEMENT SHALL BE WITHOUT LIMITS AND WITHOUT REGARD TO THE CAUSE
OR CAUSES THEREOF (EXCLUDING PRE-EXISTING CONDITIONS), STRICT LIABILITY, OR THE NEGLIGENCE OF ANY PARTY OR PARTIES (INCLUDING
THE NEGLIGENCE OF THE INDEMNIFIED PARTY), WHETHER SUCH NEGLIGENCE BE SOLE, JOINT, CONCURRENT, ACTIVE, OR PASSIVE. NOTWITHSTANDING
THE FOREGOING, THE LESSEE SHALL NOT BE LIABLE TO INDEMNIFY WITH REGARD TO ANY CLAIM OR MATTER ARISING THROUGH THE GROSS NEGLIGENCE
OF THE LESSOR OR ANY AGENT, REPRESENTATIVE OR SERVANT OF THE LESSOR.

 

38.           EXECUTION:
This hard mineral lease must be signed and acknowledged by the LESSEE before it is filed of record in the county records and in
the General Land Office of the State of Texas.

 

	 	 	/s/  Daniel
    E. Gorski for Texas Rare Earth Resources
	 	 	LESSEE
	 	 	 
	 	 	BY:  Daniel E. Gorski
	 	 	 
	 	 	TITLE:  Chief Operating Officer
	 	 	 
	 	 	DATE:  2 December 2011

 

IN
TESTIMONY WHEREOF, witness the signature of the Commissioner of the General Land Office, under the seal of the General Land Office.

 

	 	 	/s/  Jerry
    E. Patterson
	 	 	COMMISSIONER OF THE GENERAL LAND OFFICE OF THE
    STATE OF TEXAS
	 	 	 
	 	 	APPROVED
	 	 	 
	 	 	Minerals		
	 	 	Legal		
	 	 	Dep. Com.		 
	 	 	Chief Clerk		 
	 	 	 

 

     

     

    

 

STATE
OF TEXAS (CORPORATION ACKNOWLEDGMENT)

 

COUNTY
OF HUDSPETH

 

BEFORE
ME, the undersigned authority, on this day personally appeared Daniel E. Gorski known to me to be the person whose name is subscribed
to the foregoing instrument, as he and acknowledged to me that he executed the same for the purposes and consideration therein
expressed, in the capacity stated, and as the act and deed of said corporation.

 

Given
under my hand and seal of office this the 2nd day of December, 2011.

 

	 	/s/  L. Kay Scarbrough	 
	 	 
	 	Notary Public, in and for Hudspeth County, Texas
	 	 
	 	My commission expires:  May 7, 2014

 

     

     

    

 

	State of Texas	§	Affidavit of Waiver	 
	County of Hudspeth	§	of Agency Rights	 

 

Know
all men by these presents, that whereas, the undersigned

 

Texas
Rare Earth Resources of 304 Inverness Way S., Englewood, CO 80112 

(Mailing
Address)

 

is
the owner of the entire surface estate of the tract of mineral classified land described in Exhibit “A” attached hereto,
(said tract hereinafter referred to as “the land”); and

 

Whereas,
pursuant to Tex. Nat. Res. Code Ann. § 53.061 et seq. (Vernon 1982, Supp. 1996), the undersigned is designated as the state’s
agent for the leasing of the land for the exploration and production of minerals other than oil and gas; and

 

Whereas,
the undersigned desires to waive the right and duty to act as the state’s agent for the leasing of the land for the exploration
and production of minerals other than oil and gas, such waiver being subject to the following conditions:

 

1.          This
waiver must be filed for record in each county where any portion of the land is situated. A certified copy of each recorded waiver
must be filed in the General Land Office.

 

2.          The
undersigned, having waived the right and duty to act as agent for the state, and any assignee, heir or anyone else succeeding
to all or part of the undersigned’s surface estate interest in the land, are not the state’s agents and are not entitled to receive
any part of the bonus, rental, royalty and other consideration which would ordinarily accrue to the owner of the soil under Subchapter
C of Chapter 53 of the Texas Natural Resources Code as long as a lease issued under the provisions of Section 53.081, of the Natural
Resources Code is in effect.

 

3.          Upon
the expiration, termination or forfeiture of a lease issued pursuant to the provisions of Section 53.081 of the Natural Resources
Code, the agency rights and duties of the undersigned as owner of the soil are reinstated without the necessity for further action
by the owner of the soil, the board or the commissioner.

 

Now,
therefore, I the undersigned do hereby waive my right and duty to act as agent for the state in the leasing of the land for the
exploration and production of minerals other than oil and gas, and my right to receive any part of the bonus, rental, royalty
and other consideration which would ordinarily accrue to the owner of the soil under Subchapter C of Chapter 53 of the Natural
Resources Code, and do hereby acknowledge that this waiver is governed by and subject to the conditions contained herein, as well
as any applicable statute, administrative rule, or law of this state and all amendments thereto.

 

In
witness whereof, I have set my hand this the 2nd day of December, 2011.

 

	 	/s/
Daniel E. Gorski	 

 

SWORN
TO AND ACKNOWLEDGED BEFORE ME this 2nd day of December, 2011, by

 

	 	 	/s/
    L. Kay Scarbrough	 
	 	 	NOTARY PUBLIC, STATE OF TEXAS

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