Document:

Exhibit 10.5

  

INDEMNIFICATION AGREEMENT

 

This Indemnification Agreement
(the “Agreement”) is made and entered into this ___ day of December, 2021, by and between Stellus Private Credit BDC
(the “Company”), on behalf of itself and its Subsidiaries (as defined in Section 1(h) below), and ___________________________
(the “Indemnitee”).

 

WHEREAS, it is essential to
the Company that it be able to retain and attract as trustees the most capable persons available;

 

WHEREAS, increased corporate
litigation has subjected trustees to litigation risks and expenses, and the limitations on the availability of trustees and officers liability
insurance have made it increasingly difficult to attract and retain such persons;

 

WHEREAS, the Company’s
amended and restated agreement and declaration of trust provides that the Company may indemnify its trustees;

 

WHEREAS, the Company desires
to provide Indemnitee with specific contractual assurance of Indemnitee’s rights to full indemnification against litigation risks
and expenses; and

 

WHEREAS, Indemnitee is
relying upon the rights afforded under this Agreement in becoming or continuing as a trustee of the Company.

 

NOW, THEREFORE, in consideration
of the promises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:

 

1.            Definitions.

 

(a)            “1940
Act” means the Investment Company Act of 1940, as amended.

 

(b)           “Corporate
Status” describes the status of a person who is serving or has served (i) as a trustee of the Company or (ii) as a
director/trustee of any other Entity at the request of the Company. For purposes of subsection (ii) of this Section 1(b), if
Indemnitee is serving or has served as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of
a Subsidiary (as defined below), Indemnitee shall be deemed to be serving at the request of the Company. If Indemnitee is an officer
of the Company, Corporate Status shall not include actions taken by Indemnitee in any capacity other than as a trustee (except as provided
in subsection (ii) of this definition).

 

(c)           “Entity”
shall mean any corporation, partnership, limited liability company, joint venture, trust, foundation, association, organization or other
legal entity.

 

(d)            “Expenses”
shall mean all reasonable and out-of-pocket fees, costs and expenses incurred by Indemnitee in connection with prosecuting, defending,
preparing to prosecute or defend, investigating, being or preparing to be a witness in or otherwise participating in any Proceeding (as
defined below), including, without limitation, attorneys’ fees, disbursements and retainers (including, without limitation, any
such fees, disbursements and retainers incurred by Indemnitee pursuant to Sections 11 and 12(c)), fees and disbursements of expert
witnesses, private investigators, professional advisors (including, without limitation, accountants and investment bankers), court costs,
transcript costs, fees of experts, travel expenses, duplicating, printing and binding costs, telephone and fax transmission charges, postage,
delivery services, secretarial services, and other disbursements and expenses.

 

     1

     

    

 

(e)            “Indemnifiable
Expenses,” “Indemnifiable Liabilities” and “Indemnifiable Amounts” shall have the meanings
ascribed to those terms in Section 3(a).

 

(f)          
  “Independent Trustee” shall mean a trustee of the Company who is not an “interested person” as
that term is defined under Section 2(a)(19) of the 1940 Act.

 

(g)            “Liabilities”
shall mean judgments, damages, liabilities, losses, penalties, excise taxes, fines and amounts paid in settlement.

 

(h)            “Proceeding”
shall mean any threatened, pending or completed claim, action, suit, arbitration, alternate dispute resolution process, investigation,
administrative hearing, appeal, or any other proceeding, whether civil, criminal, administrative, arbitrative or investigative, whether
formal or informal, including a proceeding initiated by Indemnitee pursuant to Section 11 to enforce Indemnitee’s rights hereunder.

 

(i)             “Subsidiary”
shall mean any Entity of which the Company owns (either directly or through or together with another Subsidiary of the Company) either
(i) a general partner, managing member or other similar interest or (ii) (A) 50% or more of the voting power of the voting
capital equity interests of such Entity, and/or (B) 50% or more of the outstanding voting capital stock or other voting equity interests
of such Entity.

 

2.            Services
of Indemnitee. In consideration of the Company’s covenants and commitments hereunder, Indemnitee agrees to serve or continue
to serve as a trustee of the Company. However, this Agreement shall not impose any obligation on Indemnitee or the Company to continue
Indemnitee’s service to the Company beyond any period otherwise required by law or by other agreements or commitments of the parties,
if any.

 

3.            Agreement
to Indemnify. The Company agrees to indemnify Indemnitee as follows:

 

(a)            Proceedings
Other Than by or in the Right of the Company. Subject to the exceptions contained in Section 4(a) and in a manner consistent
with applicable law, including the 1940 Act, if Indemnitee was or is a party or is threatened to be made a party to any Proceeding (other
than an action by or in the right of the Company) by reason of Indemnitee’s Corporate Status, Indemnitee shall be indemnified
by the Company against all Expenses and Liabilities incurred or paid by Indemnitee in connection with such Proceeding (referred to herein
as “Indemnifiable Expenses” and “Indemnifiable Liabilities,” respectively, and collectively as “Indemnifiable
Amounts”). Notwithstanding the foregoing, no Indemnitee shall be entitled to indemnification under this Section 3(a) for
liability which arose as a result of Indemnitee’s willful misfeasance, bad faith or gross negligence of the duties involved in the
conduct of his or her office.

 

(b)            Proceedings
by or in the Right of the Company. Subject to the exceptions contained in Section 4(b) and in a manner consistent with applicable
law, including the 1940 Act, if Indemnitee was or is a party or is threatened to be made a party to any Proceeding by or in the right
of the Company by reason of Indemnitee’s Corporate Status, Indemnitee shall be indemnified by the Company against all Indemnifiable
Expenses. Notwithstanding the foregoing, no Indemnitee shall be entitled to indemnification under this Section 3(b) for liability
which arose as a result of such Indemnitee’s gross negligence, bad faith or willful misfeasance.

 

(c)            Conclusive
Presumption Regarding Standard of Care. In making any determination required to be made under Delaware law with respect to entitlement
to indemnification hereunder, the person, persons or entity making such determination shall presume that Indemnitee is entitled to indemnification
under this Agreement if Indemnitee submitted a request therefor in accordance with Section 5, and the Company shall have the burden
of rebutting that presumption in connection with the making by any person, persons or entity of any determination contrary to that presumption
in a manner consistent with the 1940 Act.

 

     2

     

    

 

4.            Exceptions
to Indemnification. Subject to Section 20, Indemnitee shall be entitled to indemnification under Sections 3(a) and
3(b) above in all circumstances and with respect to each and every specific claim, issue or matter involved in the Proceeding out
of which Indemnitee’s claim for indemnification has arisen, except as follows:

 

(a)            Proceedings
Other Than by or in the Right of the Company. If indemnification is requested under Section 3(a),

 

(i)            and
it has been finally adjudicated by a court of competent jurisdiction that, in connection with such specific claim, issue or matter, Indemnitee
failed to act (i) in good faith and (ii) in a manner Indemnitee reasonably believed to be in or not opposed to the best interests
of the Company, or, with respect to any criminal Proceeding, Indemnitee had reasonable cause to believe that Indemnitee’s conduct
was unlawful, Indemnitee shall not be entitled to payment of Indemnifiable Amounts hereunder to the extent that they arise out of
such claim, issue or matter; or

 

(ii)            the
Company shall not provide any indemnification of an Indemnitee for any Expenses and Liabilities arising from or out of an alleged violation
of federal or state securities laws by such Indemnitee unless one or more of the following conditions are met: (i) there has been
a successful adjudication on the merits of each count involving alleged securities law violations as to the Indemnitee, (ii) such
claims have been dismissed with prejudice on the merits by a court of competent jurisdiction as to the Indemnitee, or (iii) a court
of competent jurisdiction approves a settlement of the claims against the Indemnitee and finds that indemnification of the settlement
and the related costs should be made, and the court considering the request for indemnification has been advised of the position of the
Securities and Exchange Commission and of the published position of any state securities regulatory authority in which securities were
offered or sold as to indemnification for violations of securities laws.

 

(b)            Proceedings
by or in the Right of the Company. If indemnification is requested under Section 3(b) and

 

(i)            it
has been finally adjudicated by a court of competent jurisdiction that, in connection with such specific claim, issue or matter, Indemnitee
failed to act (A) in good faith and (B) in a manner Indemnitee reasonably believed to be in or not opposed to the best interests
of the Company, Indemnitee shall not be entitled to payment of Indemnifiable Expenses hereunder to the extent that they arise out
of such claim, issue or matter;

 

(ii)            it
has been finally adjudicated by a court of competent jurisdiction that Indemnitee is liable to the Company with respect to such specific
claim, Indemnitee shall not be entitled to payment of Indemnifiable Expenses hereunder with respect to such claim, issue or matter
unless the district court or another court in which such Proceeding was brought shall determine upon application that, despite the adjudication
of liability, but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnification for
such Indemnifiable Expenses that such court shall deem proper; or

 

     3

     

    

 

(iii)            it
has been finally adjudicated by a court of competent jurisdiction that Indemnitee is liable to the Company for an accounting of profits
made from the purchase or sale by Indemnitee of securities of the Company pursuant to the provisions of Section 16(b) of the
Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder and amendments thereto or similar provisions
of any federal, state or local statutory law, Indemnitee shall not be entitled to payment of Indemnifiable Expenses hereunder.

 

(c)            Insurance
Proceeds. To the extent payment is actually made to Indemnitee under a valid and collectible insurance policy maintained at the expense
of the Company in respect of Indemnifiable Amounts in connection with such specific claim, issue or matter, Indemnitee shall not
be entitled to payment of Indemnifiable Amounts hereunder except in respect of any excess of such Indemnifiable Amounts beyond the amount
of payment under such insurance.

 

5.            Procedure
for Payment of Indemnifiable Amounts. Indemnitee shall submit to the Company a written request specifying the Indemnifiable Amounts
for which Indemnitee seeks payment under Section 3 and the basis for the claim. The Company shall pay such Indemnifiable Amounts
to Indemnitee promptly, but in no event later than ten (10) calendar days after receipt of such request. At the request of the Company, Indemnitee
shall furnish such documentation and information as are reasonably available to Indemnitee and necessary to establish that Indemnitee
is entitled to indemnification hereunder.

 

6.            Indemnification
for Expenses of a Party Who is Wholly or Partially Successful. Notwithstanding any other provision of this Agreement, and without
limiting any such provision, to the extent that Indemnitee is, by reason of Indemnitee’s Corporate Status, a party to and is successful,
on the merits or otherwise, in any Proceeding, Indemnitee shall be indemnified against all Expenses incurred by Indemnitee or on
Indemnitee’s behalf in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the
merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee
against all Expenses incurred by Indemnitee or on Indemnitee’s behalf in connection with each successfully resolved claim, issue
or matter. For purposes of this Agreement, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without
prejudice, by reason of settlement, judgment, order or otherwise, shall be deemed to be a successful result as to such claim, issue or
matter. For the avoidance of doubt, in the event that Indemnitee is not wholly successful and is adjudged liable, the Company shall indemnify
Indemnitee to the maximum extent not prohibited by (and not merely to the extent affirmatively permitted by) Delaware law and as permitted
by this Agreement.

 

7.            Effect
of Certain Resolutions. Neither the settlement nor termination of any Proceeding nor the failure of the Company to award indemnification
or to determine that indemnification is payable shall create a presumption that Indemnitee is not entitled to indemnification hereunder.
In addition, the termination of any Proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent
shall not create a presumption that Indemnitee did not meet the requisite standard of conduct described herein for indemnification.

 

8.            Agreement
to Advance Expenses; Undertaking. In a manner consistent with applicable law, including the 1940 Act, the Company shall advance all
Expenses incurred by or on behalf of Indemnitee in connection with any Proceeding, including a Proceeding by or in the right of the Company,
in which Indemnitee is involved by reason of such Indemnitee’s Corporate Status within ten (10) calendar days after the receipt
by the Company of a written statement from Indemnitee requesting such advance or advances from time to time, whether prior to or after
final disposition of such Proceeding. Advances shall be unsecured and interest free. Advances shall be made without regard to Indemnitee’s
ability to repay the expenses and without regard to Indemnitee’s ultimate entitlement to indemnification under the other provisions
of this Agreement. To the extent required by Delaware law and the 1940 Act, Indemnitee hereby undertakes to repay any and all of
the amount of Indemnifiable Expenses paid to Indemnitee if it is finally determined by a court of competent jurisdiction that Indemnitee
is not entitled under this Agreement to indemnification with respect to such Expenses. This undertaking is an unlimited general obligation
of Indemnitee.

 

     4

     

    

 

9.            Procedure
for Advance Payment of Expenses. Indemnitee shall submit to the Company a written request specifying the Indemnifiable Expenses for
which Indemnitee seeks an advancement under Section 8, together with documentation evidencing that Indemnitee has incurred such Indemnifiable
Expenses.

 

10.            Indemnification
for Expenses of a Witness. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason of his
or her Corporate Status, a witness in any Proceeding to which Indemnitee is not a party, he or she shall be indemnified against all Expenses
actually and reasonably incurred by him or her on his or her behalf in connection therewith.

 

11.            Remedies
of Indemnitee.

 

(a)            Right
to Petition Court. In the event that Indemnitee makes a request for payment of Indemnifiable Amounts under Sections 3 and 5 or
a request for an advancement of Indemnifiable Expenses under Sections 8 and 9 and the Company fails to make such payment or advancement
in a timely manner pursuant to the terms of this Agreement, Indemnitee may petition the district court to enforce the Company’s
obligations under this Agreement.

 

(b)            Burden
of Proof. In any judicial proceeding brought under Section 11(a), the Company shall have the burden of proving that Indemnitee
is not entitled to payment of Indemnifiable Amounts hereunder.

 

(c)            Expenses.
In a manner consistent with applicable law, including the 1940 Act, the Company agrees to reimburse Indemnitee in full for any Expenses
incurred by Indemnitee in connection with investigating, preparing for, litigating, defending or settling any action brought by Indemnitee
under Section 11(a), or in connection with any claim or counterclaim brought by the Company in connection therewith, whether or not
Indemnitee is successful in whole or in part in connection with any such action, except to the extent that it has been finally adjudicated
by a court of competent jurisdiction that such reimbursement would be unlawful.

 

(d)            Failure
to Act Not a Defense. The failure of the Company (including its Board of Trustees or any committee thereof, independent legal counsel,
or shareholders) to make a determination concerning the permissibility of the payment of Indemnifiable Amounts or the advancement of Indemnifiable
Expenses under this Agreement shall not be a defense in any action brought under Section 11(a), and shall not create a presumption
that such payment or advancement is not permissible.

 

12.            Defense
of the Underlying Proceeding.

 

(a)            Notice
by Indemnitee. Indemnitee agrees to notify the Company promptly upon being served with any summons, citation, subpoena, complaint,
indictment, information, or other document relating to any Proceeding which may result in the payment of Indemnifiable Amounts or the
advancement of Indemnifiable Expenses hereunder; provided, however, that the failure to give any such notice shall not disqualify Indemnitee
from the right, or otherwise affect in any manner any right of Indemnitee, to receive payments of Indemnifiable Amounts or advancements
of Indemnifiable Expenses unless the Company’s ability to defend in such Proceeding is materially and adversely prejudiced thereby.

 

     5

     

    

 

(b)            Defense
by the Company. Subject to the provisions of the last sentence of this Section 12(b) and of Section 12(c), the Company
shall have the right to defend Indemnitee in any Proceeding which may give rise to the payment of Indemnifiable Amounts hereunder; provided,
however that the Company shall notify Indemnitee of any such decision to defend within ten (10) calendar days of receipt of notice
of any such Proceeding under Section 12(a). The Company shall not, without the prior written consent of Indemnitee, consent to the
entry of any judgment against Indemnitee or enter into any settlement or compromise which (i) includes an admission of fault of Indemnitee
or (ii) does not include, as an unconditional term thereof, the full release of Indemnitee from all liability in respect of such
Proceeding, which release shall be in form and substance reasonably satisfactory to Indemnitee. This Section 12(b) shall not
apply to a Proceeding brought by Indemnitee under Section 11(a) or pursuant to Section 20.

 

(c)            Indemnitee’s
Right to Counsel. Notwithstanding the provisions of Section 12(b), if in a Proceeding to which Indemnitee is a party by reason
of Indemnitee’s Corporate Status, (i) Indemnitee reasonably concludes that he or she may have separate defenses or counterclaims
to assert with respect to any issue that may not be consistent with the position of other defendants in such Proceeding, (ii) a conflict
of interest or potential conflict of interest exists between Indemnitee and the Company, or (iii) if the Company fails to assume
the defense of such proceeding in a timely manner, Indemnitee shall be entitled to be represented by separate legal counsel of Indemnitee’s
choice at the expense of the Company. In addition, if the Company fails to comply with any of its obligations under this Agreement or
in the event that the Company or any other person takes any action to declare this Agreement void or unenforceable, or institutes any
action, suit or proceeding to deny or to recover from Indemnitee the benefits intended to be provided to Indemnitee hereunder, Indemnitee
shall have the right to retain counsel of Indemnitee’s choice, at the expense of the Company, to represent Indemnitee in connection
with any such matter and the Expenses incurred by Indemnitee in any such matter shall constitute Indemnifiable Expenses.

 

13.            Representations
and Warranties of the Company. The Company hereby represents and warrants to Indemnitee as follows:

 

(a)            Authority.
The Company has all necessary power and authority to enter into, and be bound by the terms of, this Agreement, and the execution, delivery
and performance of the undertakings contemplated by this Agreement have been duly authorized by the Company.

 

(b)            Enforceability.
This Agreement, when executed and delivered by the Company in accordance with the provisions hereof, shall be a legal, valid and binding
obligation of the Company, enforceable against the Company in accordance with its terms, except as such enforceability may be limited
by applicable bankruptcy, insolvency, moratorium, reorganization or similar laws affecting the enforcement of creditors’ rights
generally.

 

14.            Insurance.
The Company will use its reasonable best efforts to acquire trustees and officers liability insurance, on terms and conditions deemed
appropriate by the Board of Trustees, with a reputable insurance company providing Indemnitee with coverage for losses from wrongful acts.
For so long as Indemnitee shall have Corporate Status, Indemnitee shall be named as an insured in all policies of trustee and officer
liability insurance in such a manner as to provide Indemnitee the same rights and benefits as are accorded to the most favorably insured
of the Company’s officers and trustees. If, at the time of the receipt of a notice of a claim pursuant to the terms of this Agreement,
the Company has trustee and officer liability insurance in effect, the Company shall give prompt notice of the commencement of such proceeding
to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter take all necessary
or desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such proceeding in accordance
with the terms of such policies.

 

     6

     

    

 

15.            Contract
Rights Not Exclusive. The rights to payment of Indemnifiable Amounts and advancement of Indemnifiable Expenses provided by this Agreement
shall be in addition to, but not exclusive of, any other rights which Indemnitee may have at any time under applicable law, any governing
documents of the Company or any other agreement, vote of shareholders or trustees (or a committee of trustees), or otherwise, both as
to action in Indemnitee’s official capacity and as to action in any other capacity as a result of Indemnitee’s serving as
a trustee of the Company.

 

16.            Successors.
This Agreement shall be (a) binding upon all successors and assigns of the Company (including any transferee of all or a substantial
portion of the business, shares and/or assets of the Company and any direct or indirect successor by merger or consolidation or otherwise
by operation of law) and (b) binding on and shall inure to the benefit of the heirs, personal representatives, executors and administrators
of Indemnitee. This Agreement shall continue for the benefit of Indemnitee and such heirs, personal representatives, executors and administrators
after Indemnitee has ceased to have Corporate Status.

 

17.            Subrogation.
In the event of any payment of Indemnifiable Amounts under this Agreement, the Company shall be subrogated to the extent of such payment
to all of the rights of contribution or recovery of Indemnitee against other persons, and Indemnitee shall take, at the request of the
Company, all reasonable action necessary to secure such rights, including the execution of such documents as are necessary to enable the
Company to bring suit to enforce such rights.

 

18.            Change
in Law. To the extent that a change in Delaware law or the 1940 Act (whether by statute or judicial decision) shall permit broader
indemnification or advancement of expenses than is provided under the terms of this Agreement, Indemnitee shall be entitled to such
broader indemnification and advancements, and this Agreement shall be deemed to be amended to such extent.

 

19.            Severability.
Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable
law, but if any provision of this Agreement, or any clause thereof, shall be determined by a court of competent jurisdiction to be illegal,
invalid or unenforceable, in whole or in part, such provision or clause shall be limited or modified in its application to the minimum
extent necessary to make such provision or clause valid, legal and enforceable, and the remaining provisions and clauses of this Agreement
shall remain fully enforceable and binding on the parties.

 

20.            Indemnitee
as Plaintiff. Except as provided in Section 11(b), Indemnitee shall not be entitled to payment of Indemnifiable Amounts
or advancement of Indemnifiable Expenses with respect to any Proceeding brought by Indemnitee against the Company, any Entity which it
controls, any trustee or officer thereof, or any third party, unless the Board of Trustees of the Company has consented to the initiation
of such Proceeding or the Company provides indemnification, in its sole discretion, pursuant to the powers vested in the Company.

 

21.            Duration.
This Agreement shall continue until and terminate on the later of (i) the date that Indemnitee shall have ceased to serve as a
trustee of the Company or as a trustee of the Company and as a director, trustee, officer, partner, manager, managing member,
fiduciary, employee or agent of any other Entity that such person is or was serving in such capacity at the request of the Company and
(ii) the date that Indemnitee is no longer subject to any actual or possible Proceeding (including any rights of appeal thereto and
any Proceeding commenced by Indemnitee pursuant to this Agreement).

 

     7

     

    

 

22.            Modifications
and Waivers; Counterparts. Except as provided in Section 18 with respect to changes in Delaware law which broaden the right of
Indemnitee to be indemnified by the Company or to receive advancements, no supplement, modification or amendment of this Agreement shall
be binding unless executed in writing by each of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed
or shall constitute a waiver of any other provisions of this Agreement (whether or not similar), nor shall such waiver constitute a continuing
waiver. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same Agreement. This Agreement may also be executed and delivered by facsimile signature and in two or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

23.            General
Notices. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly
given (a) when delivered by hand, (b) when transmitted by facsimile and receipt is acknowledged during normal business hours,
and if not, the next business day after transmission, or (c) if mailed by certified or registered mail with postage prepaid, on the
third business day after the date on which it is so mailed:

 

(i)            If
to Indemnitee, to:

 

_________________________

 

_________________________

 

_________________________

 

_________________________

 

Facsimile: _________________________

 

(ii)            If
to the Company, to:

 

Stellus Private Credit BDC

Attention: W. Todd Huskinson 

4400 Post Oak Parkway 

Suite 2200 

Houston, TX 77027 

Email:
thuskinson@stelluscapital.com

 

and

 

Dechert LLP 

1900 K Street, NW 

Washington, DC 20006-1110 

Attention: Harry S. Pangas 

Email:
Harry.Pangas@dechert.com

 

or to such other address as may have been furnished
in the same manner by any party to the others.

 

     8

     

    

 

24.            Governing
Law; Consent to Jurisdiction; Service of Process. This Agreement shall be governed by and construed in accordance with the laws of
the State of Delaware without regard to its rules of conflict of laws. Each of the Company and Indemnitee hereby irrevocably and
unconditionally consents to submit to the exclusive jurisdiction of the courts of the State of Delaware and the courts of the United States
of America located in the State of Delaware (the “Delaware Courts”) for any litigation arising out of or relating to
this Agreement and the transactions contemplated hereby (and agrees not to commence any litigation relating thereto except in such courts),
waives any objection to the laying of venue of any such litigation in the Delaware Courts and agrees not to plead or claim in any Delaware
Court that such litigation brought therein has been brought in an inconvenient forum. Each of the parties hereto agrees, (a) to the
extent such party is not otherwise subject to service of process in the State of Delaware, to appoint and maintain an agent in the State
of Delaware as such party’s agent for acceptance of legal process, and (b) that service of process may also be made on such
party by prepaid certified mail with a proof of mailing receipt validated by the United States Postal Service constituting evidence of
valid service. Service made pursuant to (a) or (b) above shall have the same legal force and effect as if served upon such party
personally within the State of Delaware. For purposes of implementing the parties’ agreement to appoint and maintain an agent for
service of process in the State of Delaware, each such party does hereby appoint Wilmington Trust, National Association, as such agent
and each such party hereby agrees to complete all actions necessary for such appointment. If and to the extent that any provision of the
laws of the State of Delaware or any provision of this Agreement shall conflict with any provision of the 1940 Act or The Employee Retirement
Income Security Act of 1974 (“ERISA”), the applicable provision of the 1940 Act or ERISA shall control.

 

25.            Joinders.
Subsidiaries of the Company may from time to time join this Agreement by signing a joinder to this Agreement. The Company and all Subsidiaries
that have joined this Agreement shall be jointly and severally liable for all obligations of the Company under this Agreement.

 

[The remainder of this page is intentionally
blank]

 

     9

     

    

 

IN WITNESS WHEREOF, the parties
hereto have executed this Agreement as of the date first written above.

 

	 	Stellus Private Credit BDC
	 	 
	 	By:	                                                     
	 	Name:
	 	Title:
	 	 
	 	 

	 	 
	 	INDEMNITEE
	 	 
	 	 
	 	 	 
	 	Name:

 

[Signature Page to
Indemnification Agreement]Exhibit 10.7

 

Dechert
 – December 17, 2021

 

STELLUS PRIVATE CREDIT BDC

 

SUBSCRIPTION AGREEMENT

 

     

     

    

 

THE SHARES OF STELLUS PRIVATE CREDIT BDC HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT, OR REGISTERED OR QUALIFIED UNDER THE SECURITIES LAWS OF ANY STATES OR OTHER JURISDICTIONS,
AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND THE REGISTRATION
AND QUALIFICATION REQUIREMENTS OF SUCH LAWS. THE SHARES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE
TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT AND SUCH LAWS PURSUANT TO REGISTRATION, QUALIFICATION OR EXEMPTION
THEREFROM. THE SHARES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE
COMMISSION OR BY ANY STATE OR OTHER SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED
UPON OR ENDORSED THE MERITS OF THIS OFFERING OR THE ACCURACY OR ADEQUACY OF THE OFFERING MATERIALS, AND ANY REPRESENTATION TO THE CONTRARY
IS UNLAWFUL.

 

SUBSCRIPTION AGREEMENT

 

Stellus Private Credit BDC

4400 Post Oak Parkway, Suite 2200

Houston, Texas 77027

 

Ladies and Gentlemen:

 

This Subscription Agreement
(“Subscription Agreement”) is being executed and delivered in connection with the subscription by the undersigned (the
 “Subscriber”) to purchase the number of common shares of beneficial interest, par value $0.01 per share (the “Shares”),
of Stellus Private Credit BDC, a Delaware statutory trust (the “Company”), 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. Capitalized terms used herein shall have the same meanings herein as defined in the Company’s
Confidential Private Placement Memorandum, as amended, restated and/or supplemented (the “Memorandum”), unless otherwise
defined herein.

 

In addition to completing
and signing the signature page to this Subscription Agreement, each Subscriber must complete any necessary attachments contained
in this package (such attachments, together with the Subscription Agreement, the “Subscription Documents”) in the manner
described below. For purposes of these Subscription Documents, the “Subscriber” is the person or entity for whose account
the Shares will be purchased and that can satisfy the representations and warranties set forth in the Subscription Documents. Another
person or entity with investment authority may execute the Subscription Documents on behalf of the Subscriber, but should indicate the
capacity in which it is doing so and the name of the Subscriber. All appendices to this Subscription Agreement are incorporated by reference
herein.

 

(a)            Investor
Questionnaire. Complete Appendix A attached to this Subscription Agreement.

 

(b)            Tax
Forms. Fill in and sign and date the attached Form W-9. Each non-U.S. investor is required to fill in and date the relevant Form(s) W-8
(W-8BEN, W-8IMY, W-8ECI or W-8EXP), as applicable, in accordance with the instructions to such Form. In the event that any applicable
reduction or exemption from U.S. federal withholding tax is claimed, each Subscriber is required to provide all applicable attachments
or addendums as required to claim such exemption or reduction.

 

     

     

    

 

(c)            Evidence
of Authorization. Each Subscriber must provide satisfactory evidence of authorization and may be required to submit further information
for “know your customer” and anti-money laundering purposes.

 

(i)            For
Corporations: certified documentation evidencing the corporation’s existence and certified corporate resolutions authorizing the
subscription and identifying the corporate officer empowered to sign the Subscription Documents.

 

(ii)           For
Partnerships: certified documentation evidencing the partnership’s existence, and a certified copy of the partnership agreement
(which, in the case of a limited partnership, identifies the general partner(s)).

 

(iii)          For
Limited Liability Companies: certified documentation evidencing the limited liability company’s existence, and a certified copy
of the limited liability operating agreement identifying the manager or managing member, as applicable, empowered to sign the Subscription
Documents.

 

(iv)          For
Trusts: a copy of the trust agreement.

 

(v)           For
Employee Benefit Plans: a certificate of an appropriate officer certifying that the subscription has been authorized and identifying the
individual empowered to sign the Subscription Documents.

 

(d)            Delivery
of Subscription Documents. Subscriber shall execute and complete two (2) original copies of the Subscription Agreement and all
of the documents referred to in clauses (a) through (c) above. One (1) copy of the executed and completed copy of the Subscription
Agreement shall be delivered electronically to the Company at [•.com] and one (1) copy of the executed and completed
original copy of the Subscription Agreement shall be delivered to the Company’s transfer agent, Broadridge Corporate Issuer Solutions, Inc.,
[•].

 

(e)            Acceptance
by the Company. If the Company accepts the Subscriber’s subscription (in whole or in part), a fully executed set of the Subscription
Documents will be returned to the Subscriber. The Company may accept and countersign this Subscription Agreement (in whole or in part)
at any time.

 

1.             Subscription.

 

(a)            The
Subscriber acknowledges and agrees that this subscription (i) is irrevocable on the part of the Subscriber, (ii) is conditioned
upon acceptance by the Company and (iii) may be accepted or rejected in whole or in part by the Company in its sole discretion at
any time. The Subscriber agrees to be bound by all the terms and provisions of this Subscription Agreement, the Memorandum, the Company’s
bylaws, in the form attached hereto as Appendix C (as amended, the “Bylaws”), the Company’s agreement
and declaration of trust, in the form attached hereto as Appendix D (as amended, the “Declaration of Trust”),
the Investment Advisory Agreement by and between Stellus Private BDC Advisor, LLC (the “Adviser”) and the Company,
in the form attached hereto as Appendix E (as amended, the “Advisory Agreement”) and the Administration Agreement
by and between the Company and Stellus Capital Management, LLC , the administrator (the “Administrator”), in the form
attached hereto as Appendix F (as amended, the “Administration Agreement” and, together with the Memorandum,
the Bylaws, the Declaration of Trust and the Advisory Agreement, the “Operative Documents”) together with this Subscription
Agreement.

 

    - 2 -

     

    

 

(b)            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 Company, under the terms and subject to the conditions set forth herein.

 

(c)            The
Company will file or has filed 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 Company is conducting this offering of securities. Accordingly, the Subscriber should rely exclusively on information contained in
the Memorandum, together with reports the Company may file under the Exchange Act from time to time, in making its investment decisions.
The Company 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 either
on a capital commitment basis or for the immediate payment of cash against the immediate delivery
of Shares (the “Immediate Share Issuance Basis”). 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.

 

2.             Acceptance
of Subscription; Closings.

 

This Subscription Agreement
is made subject to the following terms and conditions:

 

(a)            The
Company shall have the right to accept or reject the Subscriber’s subscription, in whole or in part, for any reason, including,
without limitation, (i) the inability of the Subscriber to meet the standards imposed by Regulation D promulgated by the Securities
and Exchange Commission 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
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 Company’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 Company.

 

(c)            If
the Subscriber’s subscription is wholly rejected, the executed copies of this Subscription Agreement will be returned to the Subscriber.

 

(d)            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 Company (such
date being the date filled in by the Company on the signature page hereto). On the date of the Company’s receipt of the Subscriber’s
first Drawdown Purchase, assuming the Closing has taken place, the Subscriber shall be registered as a stockholder of the Company (a “Stockholder”).

 

(e)            The
Subscriber agrees to provide any information reasonably requested by the Company to verify the accuracy of the representations contained
herein, including the Investor Questionnaire attached hereto as Appendix A (the “Investor Questionnaire”) and
the Certification of Beneficial Owner(s) attached hereto as Appendix B.

 

(f)             If
the individual subscribing for Shares is investing assets on behalf of an individual retirement account (an “IRA”),
the individual who established the IRA has signed the signature page of this Subscription Agreement and confirms that such individual
(i) has directed the custodian or trustee of the IRA to execute the acknowledgement on the signature page, which has been so executed,
and (ii) has reviewed and hereby expressly certifies to the accuracy of the representations and warranties made herein with respect
to the IRA and the individual Subscriber.

 

    - 3 -

     

    

 

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

 

3.              Drawdowns.

 

(a)            Subject
to Section 3(d), 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 Company. The Subscriber shall be required to fund a capital contribution to purchase
Shares (a “Drawdown Purchase”) each time the Company delivers a notice (the “Drawdown Notice”) to
the Subscriber. Drawdown Notices shall be delivered at least ten business 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 then-current net asset value per Share (“NAV per Share”)
as determined in accordance with the procedures set forth in the Memorandum. However, the Company reserves the right to sell Shares at
a price set above the NAV per Share based on a variety of factors, including, without limitation, the total amount of the Company’s
organizational and other expenses. No Investor shall be required to invest more than the total amount of its Capital Commitment. For the
avoidance of doubt, any reference herein to a capital contribution being required or a Drawdown Notice being delivered by the Company
shall be deemed to include such contribution being required or Drawdown Notice being delivered by a lender or agent in respect of any
Subscription Facility as described in Section 5.

 

(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 Stockholders 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 Company 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
of such Drawdown Date. For the avoidance of doubt, the Company shall not issue Shares for any portion of the Subscriber’s Capital
Commitment that has not been paid to the Company and used to purchase Shares pursuant to one or more Drawdown Notices (the “Undrawn
Capital Commitment”).

 

    - 4 -

     

    

 

(d)            Reserved.

 

(e)            The
Subscriber acknowledges and agrees that the Company intends to request contributions from all Investors with an Undrawn Capital Commitment
pro rata in accordance with the Capital Commitments of all investors with Undrawn Capital Commitments; provided that the Company shall
retain the right, if determined by the Company in its sole discretion, 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 Company relative to the capital contributions of Other Investors, or to avoid any of the Default Remedy Limitations
(as defined below) or for regulatory, tax or other similar basis for distinguishing among Investors, including compliance with an Investor’s
internal investment guidelines. The Subscriber acknowledges and agrees that the Company may, if determined by the Company in its sole
discretion, from time to time require capital contributions from Other Investors and not the Subscriber or vice versa. Accordingly, Drawdown
Notices may be issued only to selected investors and Stockholders (including or excluding the Subscriber) from time to time and require
a purchase of Shares by such investors in amounts determined by the Company in its sole discretion.

 

(f)            Subsequent
Closings. The Company 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.” On one or more dates to be determined by the Company that occur on
or following the Subsequent Closing (each such date, a “Catch-Up Date”), each Subsequent Investor which enters into
a Capital Commitment with the Company shall be required to purchase from the Company 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
which have entered into Capital Commitments with the Company (other than any Defaulting Investor) (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 such an Investor on a Catch-Up Date, the Company 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 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 on a Drawdown Date 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 3(f) 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 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 Company through such date (including the Investor’s), and
the denominator of which is the total Capital Commitments received by the Company through such date (excluding the Investor’s),
minus (ii) 1.00; and (b) equals the total amount of organizational and offering expenses spent by the Company in connection
with the Company’s formation and the offering described in the Memorandum.

 

(g)            The
Subscriber further acknowledges and agrees that Other Investors and Subsequent Investors may elect to purchase Shares on an Immediate
Share Issuance Basis under Other Subscription Agreements and that nothing herein prohibits the Company from accepting such Other Subscription
Agreements or the cash proceeds with respect thereto and issuing Shares to such Other Investors or Subsequent Investors in connection
therewith. The Subscriber understands that the acceptance of Other Subscription Agreements on an Immediate Share Issuance Basis from Other
Investors or Subsequent Investors by the Company may impact when and if the Investor is required to fund a capital contribution to purchase
Shares under the Investor’s Capital Commitment.

 

    - 5 -

     

    

 

4.              Pledging.
Without limiting the generality of the foregoing, the Subscriber specifically agrees and consents that the Company 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 pursuant to Section 3, and the Company’s
right to receive the Drawdown Purchase Price (and any related rights of the Company), to lenders or other creditors of the Company, in
connection with any indebtedness, guarantee or surety of the Company; provided that, for the avoidance of doubt, any such grantee’s
right to draw down capital shall be subject to the limitations on the Company’s right to draw down capital pursuant to Section 3.

 

5.              Indebtedness.
The Subscriber acknowledges that the Company may incur indebtedness at any time and from time to time, directly or indirectly through
one or more subsidiaries (or series of subsidiaries) to borrow against Subscribers Capital Commitments, to finance investments, for working
capital, for expenses, for general corporate purposes (including to pay dividends or distributions) and to warehouse loans, including
without limitation, one or more credit facilities to finance its investments and for other permissible activities. Those facilities may
be secured by an assignment by way of security, pledge, charge, mortgage or other security interest, as the case may be, of or in (A) the
Undrawn Capital Commitments, the proceeds of Drawdown Purchases and the right to receive capital contributions from the Subscriber and
Other Investors, (B) the Company’s right to make drawdowns on those Capital Commitments, deliver Drawdown Notices and receive
the proceeds of Drawdown Purchases (including any powers of attorney or other delegation of the right to deliver Drawdown Notices), and/or
(C) any deposit or other account into which the proceeds of Drawdown Purchases will be deposited, and all claims, rights and interests
that the Company may have relating to or arising from clause (A), clause (B) or this clause (C) (including the right to exercise
any remedies of the Company under or related to this Subscription Agreement in respect of any such Drawdown Notice or Drawdown Purchase),
which may be granted to a lender or an agent for such a lender pursuant to any loan or security documentation entered into between the
Company and any lender (any such facility described in this sentence, a “Subscription Facility”). The Subscriber may,
upon request by the Company or the lender (if authorized to make such request under the relevant security documentation), be required
to acknowledge the existence of a subscription credit facility, confirm the terms of the Subscriber’s Capital Commitment and the
amount of its Unfunded Capital Commitment to the lender, to honor capital calls made by the lender or other credit party, to provide financial
information reasonably requested by the lender and to execute other documents as may be reasonably requested in connection with obtaining
such a facility. In connection with any such facility, the Subscriber agrees and acknowledges the following, for the benefit of the lenders:
(1) it is and shall remain absolutely and unconditionally obligated to make Drawdown Purchases pursuant to Section 3 (including,
without limitation, those required as a result of the failure of any Other Investor to advance funds with respect to a Drawdown Notice
made pursuant to a Capital Commitment with the Other Investor), pro rata among all non-Defaulting Stockholders based on their respective
Capital Commitments and not in excess of the Subscriber’s Capital Commitment, without defense, counterclaim or offset (including
without limitation any defense of fraud or mistake, or any defense under Section 365 of the U.S. Bankruptcy Code but excluding, for
the avoidance of doubt, any defense available under this Subscription Agreement), all of which will, to the fullest extent permitted by
law, be waived as against the lenders (provided, however, that the foregoing waiver of defenses shall be of no force or effect if and
to the extent that the existence of the waiver would constitute or result in there being a prohibited transaction under the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”) or Section 4975 of the Internal Revenue Code of 1986, as amended
(the “Code”)), (2) that all Drawdown Purchases made by the Subscriber in connection with a facility will be made to an
account (in which such lenders may have a security interest under relevant security documentation) as directed by the Company or the lenders
(if authorized to make such direction under the relevant security documentation), and (3) that any lender or credit party under a
Subscription Facility is extending credit to the Company in reliance on such Subscriber’s funding its Capital Commitments as such
lender’s primary source of repayment. For the avoidance of doubt, a Drawdown Purchase made by the Subscriber upon the request of
a lender shall reduce the Subscriber’s Capital Commitment and be treated in all respects in the same manner as a Drawdown Purchase
made upon the request of the Company. Notwithstanding anything in this Subscription Agreement to the contrary, the Subscriber acknowledges
and agrees: (i) that any limitation with respect to any Capital Contribution shall not be applicable with respect to any Drawdown
Notice the purpose of which is to repay amounts due under a Subscription Facility, regardless of whether the related Drawdown Notice is
issued by the Company or any lender or credit party under the Subscription Facility; and (ii) if such Subscriber is entitled to withdraw
from the Company pursuant to any provision of this Subscription Agreement, prior to the effectiveness of such withdrawal, such Subscriber
shall be obligated to fund its pro rata share of Drawdown Purchases necessary to cure any borrowing base default under the terms of any
Subscription Facility as a direct or indirect result of such withdrawal.

 

    - 6 -

     

    

 

6.              Dividends;
Dividend Reinvestment Plan. As described more fully in the Memorandum, the Company generally intends to distribute on a quarterly
basis, out of assets legally available for distribution, substantially all of its available earnings in such amount so the Company will
not have to pay corporate-level income tax, subject to the discretion of the Board. The Company has adopted a dividend reinvestment plan,
as may be amended (the “Dividend Reinvestment Plan”), pursuant to which the Company shall reinvest all cash distributions
declared by the Board on behalf of any Stockholder, other than any Stockholder that has affirmatively elected to opt out of the Dividend
Reinvestment Plan, in exchange for such Stockholder receiving a number of newly issued Shares equal to the quotient determined by dividing
the total dollar amount of the distribution payable to such Stockholder by the NAV per Share as of the last day of the fiscal quarter
immediately preceding the date such distribution was declared. The Subscriber may opt out of the Dividend Reinvestment Plan in the Investor
Questionnaire. An election to opt-out or to opt-in to the Dividend Reinvestment Plan may be altered in accordance with the Company’s
Dividend Reinvestment Plan. The Subscriber acknowledges and agrees that any distributions received by the Subscriber or reinvested by
the Company on the Subscriber’s behalf pursuant to the Dividend Reinvestment Plan shall have no effect on the amount of the Subscriber’s
Undrawn Capital Commitment.

 

7.              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 Capital Commitment,
a “Defaulted Commitment”) and such default remains uncured for a period of ten business days, then the Company shall
be permitted to declare the Subscriber to be in default on its obligations under this Subscription Agreement (in such capacity, a “Defaulting
Investor” and, collectively with any Other Investors declared to be in default under a Capital Commitment, the “Defaulting
Stockholders”) and shall be permitted to pursue one or any combination of the following remedies:

 

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

 

(b)            Forfeiture
of Shares. One-fourth of the Shares then held by the Defaulting Investor may be automatically forfeited and transferred on the books of
the Company to the Other Investors (other than any other Defaulting Stockholders), pro rata in accordance with their respective number
of shares held; provided that no Shares shall be transferred to any Other Investor pursuant to this Section 6(b) in the event
that such transfer would (i) violate the Securities Act, the 1940 Act or any state (or other jurisdiction) securities or “blue
sky” laws applicable to the Company or such transfer, (ii) constitute a non-exempt “prohibited transaction” under
Section 406 of ERISA, or Section 4975 of the Code, or (iii) cause all or any portion of the assets of the Company to constitute
 “plan assets” under ERISA or Section 4975 of the Code (the “Default Remedy Limitations”) (it being
understood that this proviso shall operate only to the extent necessary to avoid the occurrence of the consequences contemplated herein
and shall not prevent any Other Investor from receiving a partial allocation of its pro rata portion of Shares); and 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 number of shares held. The mechanism described in this
Section 7(b) is intended to operate as a liquidated damage provision since the damage to the Company and the Other Investors
resulting from a default by the Defaulting Investor is both significant and not easily susceptible to precise quantification. By entry
into this Subscription Agreement, the Subscriber agrees to this Section 7(b) and acknowledges that the automatic transfer of
one-third of its Shares constitutes a reasonable liquidated damages remedy for any default of the Subscriber’s obligations to fund
a Drawdown Purchase Price.

 

    - 7 -

     

    

 

(c)            Inability
to Vote. To the maximum extent permitted by applicable law, the Defaulting Investor hereby makes, constitutes and appoints the Company
with full power of substitution, its true and lawful proxy to exercise all voting and other rights of such Defaulting Investor with respect
to the Shares, at every meeting of the stockholders of the Company and in every written consent in lieu of such meeting in exact proportion
to the votes or consents cast by Stockholders other than Defaulting Stockholders or, in the absence of any such Stockholders, in the discretion
of the proxy.

 

(d)            Other
Remedies. The Company may pursue any other remedies against the Defaulting Investor available to the Company at law or in equity. No course
of dealing between the Company and any Defaulting Stockholder and no delay in exercising any right, power or remedy conferred in this
Section 7 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 Company may in its discretion institute a lawsuit against the Defaulting Investor
for specific performance of its obligation to pay any Drawdown Purchase Price and any other payments to be made by the Defaulting Investor
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 Company 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 7
is solely for the benefit of the Company and shall be interpreted by the Company against the Defaulting Investor in the discretion of
the Company. The Subscriber further agrees that the Subscriber cannot and will not seek to enforce this Section 7 against the Company
or any other investor in the Company.

 

8.              Representations
and Warranties of the Subscriber.

 

The Subscriber represents and warrants as follows:

 

(a)            Private
Placement.

 

(i)            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 Company 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. The Subscriber was offered the Shares through private negotiations, not through
any general solicitation or general advertising.

 

(ii)           The
Subscriber understands that the Company requires each investor in the Company to be an “accredited investor” as defined in
Rule 501(a) of Regulation D of the Securities Act (“Accredited Investor”), and the Subscriber represents
and warrants that it is an Accredited Investor.

 

    - 8 -

     

    

 

(iii)          The
Subscriber understands that the offering and sale of the Shares in non-U.S. jurisdictions may be subject to additional restrictions and
limitations and represents and warrants that it is acquiring its Shares in compliance with all applicable laws, rules, regulations and
other legal requirements applicable to the Subscriber, including the legal requirements of jurisdictions in which the Subscriber is resident
and in which such acquisition is being consummated. In furtherance, and not in limitation, of the foregoing, if the Subscriber is a resident
of any of the jurisdictions set forth in the Memorandum, the Subscriber represents, warrants and covenants as specified in the Memorandum
hereto for such jurisdiction.

 

(iv)          The
Shares to be acquired hereunder are being acquired by the Subscriber for the Subscriber’s own account for investment purposes only
and not with a view to resale or distribution. The Subscriber shall not, directly or indirectly, Transfer all or any portion of such Shares
(or solicit any offers to buy, purchase or otherwise acquire or take a pledge or charge of all or any part of such Shares) except in accordance
with (i) the registration provisions of the Securities Act or an exemption from such registration provisions, (ii) any applicable
U.S. federal or state or non-U.S. securities laws and (iii) the terms of this Subscription Agreement and the Declaration of Trust.
The Subscriber understands that it may be required to bear the economic risk of its investment in the Shares for a substantial period
of time because, among other reasons, the offering and sale of the Shares have not been registered under the Securities Act and, therefore,
the Shares cannot be sold other than through a privately negotiated transaction unless they are subsequently registered under the Securities
Act or an exemption from such registration is available. “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 not subject to and is not aware of any facts that would cause such Subscriber to be subject to any of the “Bad Actor”
disqualifications as described in Rule 506(d)(1)(i) to (viii) under the Securities Act.

 

(c)            The
Subscriber has received, read carefully in its entirety, and understands the Memorandum. The Subscriber has consulted with its own attorney,
accountant, investment adviser or other adviser with respect to the investment(s) contemplated hereby and its suitability for the
Subscriber, and the Subscriber understands and consents to the fees, risks and other considerations relating to the purchase of the Shares
and an investment in the Company, including the fees outlined in the section titled “Management Agreements” of the Memorandum
and the risks and other considerations set forth in the section titled “Certain Risk Factors” in the Memorandum. The Subscriber
has had the opportunity to ask questions of and receive answers from representatives of the Company, all such questions have been answered
to the Subscriber’s full satisfaction, and the Subscriber has obtained any additional information concerning the Company sought
by the Subscriber. The Subscriber acknowledges that no representations have been made to the Subscriber in connection with its investment
in the Company, other than the Offering Materials.

 

(d)            The
Subscriber has substantial knowledge and experience in business and financial matters and is capable of evaluating the merits and risks
of a purchase of the Shares. The Subscriber understands that there can be no assurance that the Company will meet its investment objective
or otherwise be able to successfully carry out its investment program.

 

    - 9 -

     

    

 

(e)            The
Subscriber has the financial ability to bear the economic risk of its investment in the Company (including the possible loss of its investment),
has adequate means for providing for its current needs and has no current need for liquidity in connection with its purchase of the Shares.

 

(f)            The
purchase of the Shares by the Subscriber is consistent with the general investment objectives of the Subscriber.

 

(g)            If
the Subscriber is a natural person, the Subscriber’s domicile and principal residence are at the address shown on the signature
page below. If the Subscriber is not a natural person, the Subscriber has its domicile, principal place of business, or principal
office at the address shown on the signature page below. The Subscriber received the Offering Materials, the Operative Documents,
and this Subscription Agreement at the address of the Subscriber on the signature page below.

 

(h)            The
Subscriber is not an entity (including a qualified retirement plan) in which a holder of an interest in the Subscriber may decide whether
or how much to invest through the Subscriber in various investment vehicles, including the Company, unless the Subscriber has so notified
the Company in writing.

 

(i)             If
the Subscriber is not a natural person, then, unless the Subscriber has notified the Company in writing that the Subscriber was formed
for the specific purpose of acquiring Shares and all of the equity holders of the Subscriber are accredited investors, the Subscriber’s
Capital Commitment does not exceed 40% of the Subscriber’s assets. If at any time the Subscriber holds Shares, the Subscriber shall
no longer be in compliance with the provisions of this Section 8(i), it shall promptly notify the Company.

 

(j)             If
the Subscriber is not a citizen of the United States, or a resident of or entity created under the laws of any state of the United States
(any such citizen, resident or entity being hereinafter called a “Domestic Person”), the Subscriber is not purchasing
the Shares on behalf of any Domestic Person, and the Subscriber has no present intention of becoming a Domestic Person.

 

(k)            If
the Subscriber is a natural person, the Subscriber is of legal age in its country or state of residence and has legal capacity to execute,
deliver and perform its obligations under this Subscription Agreement and the Declaration of Trust and to subscribe for and purchase the
Shares hereunder. If the Subscriber is not a natural person, the Subscriber is an entity of the kind set forth under the applicable item
of the Investor Questionnaire and has been duly organized, formed or incorporated, as the case may be, and is validly existing and in
good standing under the laws of its jurisdiction of organization, formation or incorporation, and the Subscriber has all requisite power
and authority to execute, deliver and perform its obligations under this Subscription Agreement and to subscribe for and purchase the
Shares hereunder. The Subscriber’s purchase of the Shares and its execution, delivery and performance of this Subscription Agreement
(i) has been duly executed and delivered by the Subscriber, (ii) constitutes the legal, valid and binding obligation of the
Subscriber (except (A) as limited by any applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting the
rights and remedies of creditors generally, as from time to time in effect, (B) as limited by general principles of equity, and (C) as
the enforcement of remedies rests in the discretion of any court) and (iii) does not result in the violation of, constitute a default
under, or conflict with, any mortgage, indenture, contract, agreement, instrument, judgment, decree, order, statute, rule or regulation
applicable to the Subscriber.

 

    - 10 -

     

    

 

(l)             The
execution and delivery of this Subscription Agreement, the consummation of the transactions contemplated hereby and under the Declaration
of Trust and the performance of the Subscriber’s obligations hereunder and under the Declaration of Trust do not and will not conflict
with, or result in any violation of or default under, (i) if the Subscriber is not a natural person, any provision of any certificate
of formation, certificate of incorporation, charter, by-laws, memorandum and articles of association, trust agreement, partnership agreement,
limited liability company agreement or other organizational or governing instrument applicable to the Subscriber, (ii) any agreement
or other instrument to which the Subscriber is a party or by which the Subscriber or any of its properties are bound, or (iii) any
permit, franchise, judgment, decree, statute, writ, injunction, order, law, rule or regulation applicable to the Subscriber or to
its business or properties. In addition, the Subscriber represents that its power of attorney contained in this Subscription Agreement
and to be exercised in connection with the Declaration of Trust has been granted by the Subscriber, including as to the manner of any
execution by the Subscriber, in compliance with all laws applicable to the Subscriber, including the laws of the state or jurisdiction
in which the Subscriber executed this Subscription Agreement. The Subscriber has obtained all authorizations, consents, approvals and
clearances of all courts, governmental agencies and authorities and such other persons, if any, required to permit the Subscriber to enter
into this Subscription Agreement and to consummate the transactions contemplated hereby and thereby.

 

(m)           The
Subscriber understands that the Company intends to file or has filed an election to be treated as a BDC under the 1940 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 Company 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 Company, 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.

 

(n)            The
Subscriber: (i) is not registered or required to be registered as an “investment company” under the 1940 Act; (ii) has
not elected to be regulated as a BDC under the 1940 Act; and (iii) either (A) is not relying on the exception from the definition
of “investment company” under the 1940 Act set forth in Section 3(c)(1) or 3(c)(7) thereunder or (B) is
otherwise permitted to acquire and hold more than 3% of the outstanding voting securities of a BDC, including pursuant to Rule 12d1-4
under the 1940 Act.

 

(o)            ERISA
Matters. If the Subscriber is or will be (x) an “employee benefit plan” as defined in Section 3(3) of ERISA,
that is subject to ERISA, (y) a “plan” described in Section 4975(e)(1) of the Code, that is subject to Section 4975
of the Code, or (z) an entity that is, or is deemed to be, using “plan assets” for purposes of ERISA or Section 4975
of the Code to purchase or hold its investments (each of the foregoing, a “Plan”), the Subscriber has completed each
applicable question in the Investor Questionnaire, and the Subscriber represents, warrants and agrees that:

 

(i)            the
acquisition and the subsequent holding of Shares do not and will not constitute a non-exempt “prohibited transaction” within
the meaning of Section 406 of ERISA or Section 4975 of the Code;

 

(ii)           the
decision to acquire Shares was made by a “fiduciary” of the Plan, within the meaning of Section 3(21) of ERISA or Section 4975(e)(3) of
the Code (the “Plan Fiduciary”), that (A) is independent of the Company, the Adviser and their respective employees,
representatives and affiliates, (B) is qualified to make investment decisions on behalf of the Plan and (C) has authorized the
Subscriber’s investment in the Company;

 

(iii)          the
Subscriber’s investment in Shares conforms in all respects to the documents governing the Plan and complies with all applicable
requirements of ERISA and Section 4975 of the Code;

 

    - 11 -

     

    

 

(iv)          the
Plan Fiduciary has been informed about the fee structure of the Company, including the incentive fee component, and has concluded that
such fees are reasonable and the investment in the Company otherwise constitutes a reasonable contract or arrangement, and the Subscriber
acknowledges and agrees that none of the Adviser or its employees, representatives or affiliates have any discretion, or are otherwise
acting in a fiduciary capacity with respect to the Plan’s investment in the Company, whether pursuant to the provisions of ERISA,
Section 4975 of the Code or otherwise, and, without limiting the generality of the foregoing, the Subscriber has not relied on, and
is not relying on, any investment advice or recommendation of any such person with respect to the Plan’s investment in the Company;

 

(v)           the
Subscriber acknowledges and agrees that the Company has the authority to require the redemption, withdrawal or other cancellation of any
Shares if it is determined that the continued holding of such Shares could result in the Company, the Adviser or the Administrator being
subject to the provisions of Title I of ERISA or Section 4975 of the Code; and

 

(vi)          without
limiting the remedies in the event of a breach, the Subscriber agrees promptly to provide to the Company such information as the Company
may from time to time reasonably request for purposes of determining whether the assets of the Company are “plan assets” within
the meaning of ERISA or Section 4975 of the Code and any other matters relating to ERISA or compliance with ERISA arising in connection
with the Subscriber’s investment in the Company, or the operation or investments of the Company.

 

The representations and warranties set forth in
this Section 8(o) shall be deemed repeated and reaffirmed on each day the Subscriber holds Shares. Without limiting the remedies
available in the event of a breach, if at any time the representations and warranties set forth in this Section 8(o) shall cease
to be true, including because there is a change in the Subscriber’s Plan status or the percentage of assets that constitute “plan
assets” subject to the provisions of Title I of ERISA or Section 4975 of the Code, the Subscriber shall promptly notify the
Company in writing.

 

(p)            The
Subscriber has notified, or shall promptly notify, the Company if the Subscriber is or becomes a person that may be disqualified from
participating in the Company’s acquisition of Securities sold in a public offering under Rules 5130 and 5131 of the Financial
Industry Regulatory Authority, as in effect from time to time.

 

(q)            If
the Subscriber is a partnership or any other entity that is treated as a partnership for U.S. income tax purposes, a grantor trust within
the meaning of Sections 671-679 of the Code, or a S corporation within the meaning of Section 1361 of the Code, the Subscriber represents
that at no time during the term of the Company will 65% or more of the value of any beneficial owner’s direct or indirect interest
in the Subscriber be attributable to the Subscriber’s interest in the Company. Except as otherwise disclosed to the Company in writing,
the Subscriber is not disregarded as an entity separate from its owner within the meaning of Treasury Regulation Section 301.7701-3.

 

(r)             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 the Investor Questionnaire
and any Form W-9 or the relevant Forms W-8 (W-8BEN, 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.

 

(s)            The
Subscriber agrees to provide such information and execute and deliver such documents as the Company may reasonably request to verify the
accuracy of the Subscriber’s representations and warranties herein or to comply with any law or regulation to which the Company,
the Adviser, the Administrator or a portfolio company of the Company may be subject.

 

    - 12 -

     

    

 

(t)            The
Subscriber, if an individual, has read carefully in its entirety, and understands and agrees with, the Company’s Privacy Policies
and Practices attached hereto as Appendix G.

 

(u)            The
Subscriber agrees that the foregoing certifications, representations, warranties, covenants and agreements shall survive the acceptance
of this Subscription Agreement, each Drawdown Date and the dissolution of the Company, without limitation as to time. Without limiting
the foregoing, the Subscriber agrees to give the Company prompt written notice in the event that any statement, certification, representation
or warranty of the Subscriber contained in this Section 8 or any information provided by the Subscriber herein or in any document
required to be provided under this Subscription Agreement (including the Investor Questionnaire and any Form W-9 or Forms W-8 (W-8BEN,
W-8IMY, W-8ECI or W-8EXP), as applicable, ceases to be true at any time following the date hereof.

 

9.              Representations
and Warranties of the Company.

 

The Company represents and
warrants as follows (in reliance, where applicable, on the representations and warranties of the Subscriber contained in this Subscription
Agreement and the representations and warranties of the Other Investors):

 

(a)            The
Company is duly organized and validly existing as a statutory trust under the laws of the State of Delaware and has all requisite corporate
power to conduct the business in which it proposes to engage as described in the Memorandum.

 

(b)            No
consent, approval or authorization of, or filing or registration with, any governmental authority on the part of the Company is required
for the execution and delivery of this Subscription Agreement by it, or the issuance of Shares as contemplated thereby, except for any
consents, approvals, authorizations or filings which are required under any applicable securities laws (federal, state or foreign) and
which have been made or obtained prior to the Closing or are made or obtained hereafter within the time prescribed by law. All action
required to be taken by the Company as a condition to the issuance and sale of the Shares will have been taken at or before the Closing.
The execution and delivery of this Subscription Agreement by the Company will not result in the violation of, constitute a default under,
or conflict with, any mortgage, indenture, contract, agreement, instrument, judgment, decree, order, statute, rule or regulation
applicable to the Company. Upon execution and delivery by the Company, this Subscription Agreement (i) will have been duly executed
and delivered by the Company, and (ii) will constitute the legal, valid and binding obligation of the Company, except (A) as
limited by any applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting the rights and remedies of creditors
generally, as from time to time in effect, (B) as limited by general principles of equity and (C) as the enforcement of remedies
rests in the discretion of any court.

 

10.            Additional
Limitations on Transfer of Capital Commitments and Shares.

 

(a)            General
Restrictions on Transfer.

 

(i)            The
Subscriber may not Transfer its Capital Commitment. Prior to any Exchange Listing (as defined in the Memorandum), the Subscriber may not
Transfer any of its Shares unless the Transfer is made in accordance with applicable securities laws and is otherwise in compliance with
the transfer restrictions set forth in Appendix H. Each transferee must agree to be bound by these restrictions and all other obligations
as an investor in the Company.

 

    - 13 -

     

    

 

(ii)            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 Declaration of Trust and applicable law, including the fact
that (A) there is no established market for the Shares and the Company expects that no public market for the Shares will develop;
(B) the Shares are not currently, and Stockholders 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 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 Company.

 

11.            Compliance
with Specific Laws.

 

(a)            Anti-Money
Laundering.

 

(i)            Neither
the Subscriber, nor any of its affiliates or beneficial owners nor any person for whom the Subscriber is acting as agent or nominee, (A) appears
on the list of Specially Designated Nationals and Blocked Persons maintained by the Office of Foreign Assets Control of the U.S. Department
of the Treasury (“OFAC”), the list of Foreign Sanctions Evaders maintained by OFAC, or any other lists of restricted
parties maintained by the U.S. Government, nor are they otherwise a party with which any entity is prohibited to deal under the laws of
the United States, (B) is a senior foreign political figure or any immediate family member or close associate of a senior foreign
political figure or (C) is identified as a terrorist organization on any other relevant lists maintained by governmental authorities.
The Subscriber further represents and warrants that the monies used to fund the investment in the Shares are not derived from, invested
for the benefit of, or related in any way to, and that no monies or dividends received as a result of the investment in the Shares will
be provided to or for the benefit of, the governments of, or persons within, any country (1) under a U.S. embargo enforced by OFAC,
(2) that has been designated as a “non-cooperative country or territory” by the U.S. Financial Action Task Force on Money
Laundering or (3) that has been designated by the U.S. Secretary of the Treasury as a “primary money laundering concern.”
The Subscriber further represents and warrants that the Subscriber: (x) has conducted thorough due diligence with respect to all
of its beneficial owners, (y) has established the identities of all beneficial owners and the source of each of the beneficial owner’s
funds and (z) will retain evidence of any such identities, any such source of funds and any such due diligence. The Subscriber further
represents and warrants that the Subscriber does not know or have any reason to suspect that (I) the monies used to fund the Subscriber’s
investment in the Shares have been or will be derived from or related to any illegal activities, including money laundering activities
and all Capital Contributions by the Subscriber were not, and will not be, directly or indirectly derived from activities that may contravene
federal, state or international laws and regulations, including anti-money laundering laws and regulations, and (II) the proceeds
from the Subscriber’s investment in the Shares will be used to finance any illegal activities. Subscriber represents that all evidence
of identity provided is genuine.

 

(ii)           The
Subscriber shall provide to the Company at any time such information as the Company determines to be necessary or appropriate (A) to
comply with the anti-money laundering laws, rules and regulations of any applicable jurisdiction and (B) to respond to requests
for information concerning the identity of such Subscriber from any governmental authority, self-regulatory organization or financial
institution in connection with its anti-money laundering compliance procedures (which, notwithstanding anything in the Company’s
privacy policies and/or Section 18 of this Subscription Agreement to the contrary, may then be disclosed to such persons), or to
update such information. Such information may include, with respect to any Subscriber that is a natural person, the Subscriber’s
full legal name, date of birth, residential street address and identification number. The Subscriber hereby represents that the Subscriber
is in compliance with all such laws. Failure to provide such information upon request may result in the compulsory redemption of the Subscriber’s
Shares. Subscriber represents that all evidence of identity provided is genuine.

 

    - 14 -

     

    

 

(iii)          To
comply with applicable U.S. anti-money laundering laws and regulations, all payments and contributions by the Subscriber to the Company,
and all payments and distributions to the Subscriber, shall only be made in the Subscriber’s name and to and from a bank account
of a bank based or incorporated in or formed under the laws of the United States or that is regulated in and either based or incorporated
in or formed under the laws of the United States and that is not a “foreign shell bank” within the meaning of the U.S. Bank
Secrecy Act (31 U.S.C. § 5311 et seq.), as amended, and the regulations promulgated thereunder by the U.S. Department of the Treasury,
as such regulations may be amended.

 

(b)            Affirmation.
The representations and warranties set forth in this Section 11 shall be deemed repeated and reaffirmed by the Subscriber to the
Company as of each date that the Subscriber is required to make a Drawdown Purchase or other payment to, or receives dividends or other
distributions from (even if such distribution is reinvested pursuant to the Dividend Reinvestment Plan), the Company. If at any time during
the term of the Company, the representations and warranties set forth in this Section 11 cease to be true, the Subscriber shall promptly
so notify the Company in writing.

 

(c)            Remedies
for Failure to Comply with Section 11. The Subscriber understands and agrees that the Company may not accept any amounts from the
Subscriber if the Subscriber cannot make the representations set forth in this Section 11, and may require the compulsory Transfer
of the Subscriber’s Shares. In addition, the Subscriber understands and agrees that, in addition to the foregoing remedial measures
in order to comply with governmental regulations or if the Company determines in its sole discretion that such action is in the best interests
of the Company, the Company may “freeze the account” of the Subscriber, either by prohibiting additional investments in the
Company by the Subscriber, refusing to process a distribution to the Subscriber or suspending other rights the Subscriber may have against
the Company under this Subscription Agreement or under the Declaration of Trust and the Bylaws. The Company or the Adviser may be required
to report such action or confidential information relating to the Subscriber (including disclosing the Subscriber’s identity) to
regulatory authorities.

 

12.            FATCA
Compliance. The Subscriber acknowledges and agrees that, in order to comply with the provisions of the U.S. Foreign Account Tax Compliance
Act (“FATCA”) and avoid the imposition of U.S. federal withholding tax, the Company and the Administrator may from
time to time require further information or documentation from the Subscriber and, if and to the extent required under FATCA, the Subscriber’s
direct and indirect beneficial owners (if any), relating to or establishing such person’s identity, residence (or jurisdiction of
formation) and income tax status, and may provide or disclose such information and documentation to the U.S. Internal Revenue Service. 
The Subscriber agrees that it shall provide such information and documentation concerning itself and its beneficial owners (if any), as
and when requested by the Company or the Administrator sufficient for the Company, as applicable, to comply with its obligations under
FATCA. The Subscriber acknowledges that, if the Subscriber does not provide the information and documentation requested by the Company,
the Company may, at its sole option and in addition to all other remedies available at law or in equity, immediately redeem the Subscriber’s
Shares or prohibit the Subscriber from purchasing additional Shares or participating in additional investments in the Company. The Subscriber
hereby agrees to indemnify and hold harmless the Company from any and all withholding taxes, interest, penalties and other losses or liabilities
suffered by the Company on account of the Subscriber not providing all requested information and documentation in a timely manner. The
Subscriber shall have no claim against the Company, the Adviser, the Administrator, or any of their respective affiliates for any form
of damages or liability as a result of any of the aforementioned actions.

 

    - 15 -

     

    

 

 

13.            Subscriber
Information.

 

The Company reserves the right
to request such information as is necessary to verify the identity of the Subscriber or as may reasonably be requested by the Company
in connection with its operations, including such information requested by the Company in connection with entering into any borrowing
or other financing arrangement. The Subscriber shall promptly on demand provide such information and execute and deliver such documents
as the Company may request to verify the accuracy of the Subscriber’s representations and warranties or as required for the Company’s
operations. In the event of delay or failure by the Subscriber to produce any information required for verification purposes, or if otherwise
required by law or regulation, the Company may refuse to accept the Subscription or may refuse to process a distribution until proper
information has been provided.

 

The Subscriber agrees further
that the Company shall be held harmless and indemnified against any loss, claim, cost, damage or expense arising as a result of a failure
to process any subscription or distribution if such information as has been required by the Company has not been provided by the Subscriber
or which the Company may suffer as a result of any violations of law committed by the Subscriber.

 

14.            Applicable
Law.

 

This Subscription Agreement
shall be governed by, and construed in accordance with, the law of the State of Delaware without regard to principles of conflicts of
law. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF
OR RELATED TO THIS SUBSCRIPTION AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, TO THE FULLEST EXTENT PERMITTED BY LAW.

 

15.            Notices.

 

All notices and other communications
hereunder shall be in writing and shall be sufficiently given if personally delivered or sent by postage prepaid, registered or certified
mail, return receipt requested, or by overnight courier or by facsimile transmission with transmission confirmed, addressed as follows:
(i) if intended for the Company, to the Company’s principal office and (ii) if intended for any Subscriber, to the address
of such Subscriber set forth on the signature page hereto, or to such other address as the Company or such Subscriber, as applicable,
may designate by written notice. Notices shall be deemed to have been given (i) when personally delivered (ii), if mailed, on the
date on which received, or (iii) if sent by overnight courier or facsimile transmission, on the date on which received; provided,
that notices of a change of address shall not be deemed given until the actual receipt thereof. The provisions of this Section 15
shall not prohibit the giving of written notice in any other manner; any such written notice shall be deemed given only when actually
received.

 

16.            Power
of Attorney.

 

By executing this Subscription
Agreement, the Subscriber hereby makes, constitutes and appoints the Company with full power of substitution, its true and lawful attorney-in-fact,
in its name, place and stead for its use and benefit, to approve, execute, acknowledge, swear to, file and record:

 

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

 

    	 	- 16 -	 

     

    

 

(b)            all
certificates and other instruments deemed advisable by the Company in order for the Company 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;

 

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

 

(d)            all
conveyances and other instruments necessary or appropriate to effect the dissolution and liquidation of the Company; and

 

(e)            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 Company

 

(f)            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 effectuate the provisions of this Subscription Agreement or any Other Subscription
Agreements and the purposes of the Company.

 

It is expressly acknowledged
by the Subscriber that the foregoing power of attorney is coupled with an interest and shall survive death or legal incapacity of the
Subscriber, and is irrevocable. Such power of attorney may be exercised by said attorney-in-fact either by signing separately as attorney-in-fact
for each of the Investors or by listing all the Investors with a single signature as attorney-in-fact for all of them. Such power of attorney
shall survive the termination or dissolution of the Subscriber or the assignment of its interest in the Company; provided, however, that
such power of attorney will so survive only to the extent necessary to enable said attorney-in-fact to effect substitution (if approved
by the Company) of the Subscriber’s successor-in-interest. Assignee hereby waives any and all defenses which may be available to
contest, negate or disaffirm the actions of said attorney-in-fact taken in good faith under such power of attorney.

 

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

 

17.            Effect
of Representations; Survival; Indemnity

 

The Subscriber understands
that the offer and sale of the Shares is being made in reliance on specific exemptions from requirements of federal and state securities
laws and that the Company, and the controlling persons thereof, will rely on the representations, warranties, agreements, acknowledgements
and understandings of the Subscriber set forth herein in determining the applicability of such exemptions. The Subscriber hereby confirms
that all such representations and warranties will remain true and complete on the date of acceptance by the Company of the Subscriber’s
subscription hereunder.

 

This Subscription Agreement,
including all representations and warranties of the Subscriber contained herein, shall survive the sale of the Shares to the Subscriber,
and the admission of the Subscriber as a Stockholder of the Company.

 

    	 	- 17 -	 

     

    

 

To the fullest extent permitted
under applicable law, the Subscriber agrees to indemnify and hold harmless the Company, the Adviser, the Administrator and their respective
affiliates, and each partner, member, shareholder, officer, director, employee and agent thereof (the “Indemnified Parties”),
from and against any loss, damage or liability due to or arising out of a breach of any representation, warranty or agreement of the Subscriber
contained in this Subscription Agreement (including the Investor Questionnaire) or in any other document provided by the Subscriber to
the Company or in any agreement executed by the Subscriber in connection with the Subscriber’s investment in Shares.

 

18.            Confidentiality.
The Subscriber acknowledges that the Memorandum and other information relating to the Company (the “Confidential Information”)
have been submitted to the Subscriber on a confidential basis for use solely in connection with the Subscriber’s consideration of
the purchase of Shares. In addition, Confidential Information includes non-public information regarding the Adviser, the Company, and
any other investment vehicles whose investment adviser is the Adviser or an affiliate of the Adviser. Subscriber agrees to comply with
all laws, including securities laws, concerning Confidential Information, and Subscriber agrees that it shall not trade in the securities
of any issuer about which Subscriber receives material non-public information under this Subscription Agreement or in its capacity as
a holder of Shares and shall refrain from such trading until any material non-public information no longer constitutes material non-public
information. The Subscriber agrees that, without the prior written consent of the Company (which consent may be withheld at the discretion
of the Company), the Subscriber shall not (a) reproduce the Memorandum or any other Confidential Information, in whole or in part,
or (b) disclose the Memorandum or any other Confidential Information to any person who is not an officer or employee of the Subscriber
who is involved in its investments, or partner (general or limited) or affiliate of the Subscriber (it being understood and agreed that
if the Subscriber is a pooled investment fund, it shall only be permitted to disclose the Memorandum or other Confidential Information
if the Subscriber has required its investors to enter into confidentiality undertakings no less onerous than the provisions of this Section 18
and the Subscriber remains liable for any breach of this Section 18 by its investors), except to the extent (i) such information
is in the public domain (other than as a result of any action or omission of the Subscriber or any person to whom the Subscriber has disclosed
such information) or (ii) such information is required by applicable law or regulation to be disclosed, in which case the Subscriber
shall first notify the Company of such requirement (unless such notification is prohibited by law) so that the Company may pursue a protective
order or other appropriate remedy or waive compliance with the terms of this Section 18, and if a protective order or other appropriate
remedy is not obtained, or if the Company waives compliance with the terms of this Section 18, then the Subscriber shall disclose
only that portion of Confidential Information that the Subscriber is advised by counsel is legally required to be disclosed and shall
use its commercially reasonable efforts to protect the confidentiality of such information disclosed, including by requesting that confidential
treatment be accorded such information. The Subscriber further agrees to return the Memorandum and other Confidential Information upon
the Company’s request therefor. The Subscriber acknowledges and agrees that monetary damages would not be sufficient remedy for
any breach of this Section 18 by the Subscriber and that, in addition to any other remedies available to the Company in respect of
any such breach, the Company shall be entitled to specific performance and injunctive or other equitable relief as a remedy for any such
breach.

 

19.            No
Joint Liability Among the Company, the Adviser, and the Administrator.

 

The Company shall not be liable
for the fulfillment of any obligation of the Adviser or the Administrator under or in connection with this Subscription Agreement. The
Adviser shall not be liable for the fulfillment of any obligation or for the accuracy of any representation of the Company or the Administrator
under or in connection with this Subscription Agreement. The Administrator shall not be liable for the fulfillment of any obligation or
for the accuracy of any representation of the Company or the Adviser under or in connection with this Subscription Agreement. There shall
be no joint and several liability of the Company, the Adviser and the Administrator for any obligation under or in connection with this
Subscription Agreement.

 

    	 	- 18 -	 

     

    

 

20.            Independent
Nature of Subscribers’ Obligations and Rights.

 

The obligations of the Subscriber
hereunder are several and not joint with the obligations of any Other Investor. Nothing contained herein or in any other agreement or
document delivered at any closing, and no action taken by the Subscriber pursuant hereto or thereto, shall be deemed to constitute the
Stockholders as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Stockholders
are in any way acting in concert with respect to such obligations or the transactions contemplated by this Subscription Agreement.

 

21.            Construction.

 

The captions used herein are
intended for convenience of reference only, and shall not modify or affect in any manner the meaning or interpretation of any of the provisions
of this Subscription Agreement.

 

As used herein, the singular
shall include the plural, the masculine gender shall include the feminine and neuter, and the neuter gender shall include the masculine
and feminine, unless the context otherwise requires.

 

The words “hereof,”
 “herein,” and “hereunder,” and words of similar import, when used in this Subscription Agreement shall refer to
this Subscription Agreement as a whole and not to any particular provision of this Subscription Agreement.

 

All references herein to Sections
shall be deemed to refer to Sections of this Subscription Agreement, unless specified to the contrary.

 

Whenever the words “include”,
 “includes” or “including” are used in this Subscription Agreement, they shall be deemed to be followed by the
words “without limitation”, whether or not they are in fact followed by those words or words of like import.

 

Nothing in this Subscription
Agreement shall be deemed to create any right in or benefit for any Person other than the Company and the Subscriber and this Subscription
Agreement shall not be construed in any respect to be for the benefit of, and no provision of this Subscription Agreement may be enforced
by, any such Person, except any Indemnified Party may enforce its rights under Section 17 hereof.

 

22.            Reserved.

 

23.            Severability

 

If any one or more of the
provisions contained in this Subscription Agreement, or any application thereof, shall be invalid, illegal or unenforceable in any respect,
the validity, legality and enforceability of the remaining provisions contained herein and all other applications thereof shall not in
any way be affected or impaired thereby.

 

24.            Entire
Agreement.

 

This Subscription Agreement,
together with any other document that may be delivered in connection herewith and signed by both parties hereto, sets forth the entire
understanding among the parties relating to the subject matter hereof, any and all prior correspondence, conversations, and memoranda
or other writings being merged herein and replaced and being without effect hereon. No promises, covenants or representations of any character
or nature other than those expressly stated herein or in any such other document have been made to induce any party to enter into this
Subscription Agreement.

 

    	 	- 19 -	 

     

    

 

[End of page – signature pages follow]

 

    	 	- 20 -	 

     

    

 

Stellus Private Credit BDC

 

Subscription Agreement Signature Page

 

IN WITNESS WHEREOF, the Subscriber
has executed this Subscription Agreement as of ____________________, 20__, for a Capital Commitment of $_________________________________

 

	Subscribers who are Individuals	 	Subscribers other than Individuals

 

	 	 	 
	Name of the Subscriber 	 	Name of the Subscriber (exactly as it

appears in the Company’s records)
	 	 	 
	 	 	 
	Signature of Subscriber	 	Signature of Authorized Signatory
	 	 	 
	 	 	 
	Print Name	 	Print Name of Authorized Signatory
	 	 	 
	 	 	 
	Social Security Number of Subscriber	 	
    Title of Authorized Signatory

	 	 	 
	 	 	 
	Date of Birth of Subscriber	 	Federal Tax Identification Number

(if applicable)
	 	 	 
	Record Address of the Subscriber

(P.O. Boxes cannot be accepted)* *:	 	Record Address of the Subscriber

(P.O. Boxes cannot be accepted)* *:
	 	 	 
	 	 	 
	 	 	 
	Signature (joint owner, if applicable)	 	 

 

 

	Print Name (joint owner, if applicable) 	 	 

 

 

	Social Security Number (joint owner, if applicable)	 	 

 

 

	Date of Birth (joint owner, if applicable)	 	 

 

    	 	 	 

     

    

 

Name of Trustees or Fiduciaries exercising investment
discretion with respect to the Subscriber:

 

	Signature	Printed Name	Title	Physical

                                                                                Street

                                                                                Address
	Federal Tax

                                                                                                                 Identification

                                                                                Number
	Date of Birth
	 	 	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

If applicable, the custodian of the Subscriber,
including a custodian for an IRA, should complete and sign the bottom line of this signature page

 

	Signature	Printed Name	Title	Physical

                                                                                Street

                                                                                Address
	Federal Tax

                                                                                Identification

                                                                                Number
	Date of Birth
	 	 	 	 	 	 
	 	 	 	 

 

**The
record address should be the legal residence address where the Subscriber files tax returns.

 

    	 	 	 

     

    

 

The foregoing Subscription Agreement is accepted and agreed by the Company, for a Capital Commitment of $_________________________________, as of __________________, 20___.

 

	 	Stellus Private Credit BDC
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 	 	 

     

    

 

ADDITIONAL REPRESENTATION WITH RESPECT TO
INVESTMENT FOR AN IRA

 

If the Subscriber is an individual retirement
account (an “IRA”) and the custodian or trustee of the IRA has executed the Subscription Agreement on the signature
page, then the individual who established the IRA: (i) has directed the custodian or trustee of the Subscriber to execute the Subscription
Agreement on the signature page; and (ii) 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.

 

	 	 
	Print 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****

 

    	 	 	 

     

    

 

 

ira
Custodian/trustee ACKNOWLEDGEMENT:

 

The undersigned, being the custodian or trustee
of the above-named individual retirement account, hereby accepts and agrees to this subscription.

 

	 	 
	Name of Custodian or Trustee	 
	 	 	 
	By:	 	 
	 	Signature of Authorized Signatory	 
	 	 	 
	 	 	 
	 	Name of Authorized Signatory	 

 

    	 	 	 

     

    

 

APPENDIX A

 

STELLUS PRIVATE CREDIT BDC

INVESTOR QUESTIONNAIRE

 

Please complete each Section of
this Investor Questionnaire.

 

I.             General
Information.

 

1.             If
Subscriber is not holding for the Subscriber’s own account, provide the name, and residential street address for whom the interest
is being held:

 

 

 

2.             Investor
category of Subscriber (check all that apply)

 

	_____	Individual U.S. person (including your trust)	_____	Banking or thrift institution
	_____	Individual Non-U.S. person (including trust)	_____	State or municipal government entity
	_____	Broker-dealer	 	  (excluding pension plans)
	_____	Insurance company	_____	State or municipal pension plan
	_____	Investment company registered with SEC	_____	Sovereign wealth fund and
	_____	Private fund	 	  foreign official institutions
	_____	Non-profit	_____	Other Non-U.S. person
	_____	Pension plan (excluding government plans)	_____	Other

 

3.             Form of
Subscriber (check all that are applicable):

 

	_____	Individual	_____	Grantor trust
	_____	Joint tenants	_____	Other trust
	_____	Tenants in common	_____	IRA/Keough Plan/SEP
	_____	Limited partnership	_____	Other Employee benefit plan
	_____	General partnership	_____	Non-profit, endowment or foundation
	_____ 	Limited liability company	_____	Other exempt organization
	_____ 	C corporation	_____	Nominee
	_____ 	S corporation	_____	Fiduciary
	_____	Estate	_____	Disregarded entity
	 	 	_____	Other 

(describe):_____________________

 

4.            Tax
year end (month and day): _____________________

 

5.            Is
the Subscriber a “fund of funds”? _____ Yes _____ No

 

6.            If
the Subscriber is an individual, or if the Subscriber is an entity in which an individual holds, directly or indirectly, more than five
percent of the ownership or beneficial interests, please identify (i) all such individuals, and (ii) all entities for which
such individuals serve as employee, officer or director.

_____________________________

 

 

 

    	 	 	 

     

    

 

STELLUS PRIVATE CREDIT BDC

INVESTOR QUESTIONNAIRE

 

II.            Accredited
Investor Status

 

The Subscriber represents
and warrants that it is an “accredited investor” within the meaning of Regulation D under the U.S. Securities Act of 1933,
as amended (the “Securities Act”), and has indicated below each category under which the Subscriber qualifies as an
accredited investor.

 

The Subscriber is:

 

	____	(i)	A bank, as defined in Section 3(a)(2) of the Securities Act, whether acting in regard to this offering in its individual or a fiduciary capacity.
	 	 	 
	____	(ii)	A savings and loan or other institution, as defined in Section 3(a)(5)(A) of the Securities Act, whether acting in regard to this offering in its individual or a fiduciary capacity.
	 	 	 
	____	(iii)	A broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
	 	 	 
	____	(iv)	An insurance company, as defined in Section 2(a)(13) of the Securities Act.
	 	 	 
	____	(v)	An investment company registered under the Investment Company Act of 1940, as amended (the “Investment Company Act”).
	 	 	 
	____	(vi)	A business development company, as defined in Section 2(a)(48) of the Investment Company Act.
	 	 	 
	____	(vii)	A private business development company, as defined in Section 202(a)(22) of the Investment Advisers Act of 1940, as amended (the “Investment Advisers Act”).
	 	 	 
	____	(viii)	A Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958, as amended.
	 	 	 
	____	(ix)	A plan 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, if such plan has total assets in excess of $5,000,000.
	 	 	 
	____	(x)	An employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), if the investment decision regarding this offering was made by a plan fiduciary (as such term is defined in Section 3(21) of ERISA) which is either a bank, savings and loan association, insurance company (as described above) or investment adviser duly registered under the Investment Advisers Act.
	 	 	 
	____	(xi)	An employee benefit plan within the meaning of ERISA with total assets in excess of $5,000,000, whether or not the investment decision regarding this offering was made by a bank, insurance company or registered investment adviser.
	 	 	 
	____	(xii)	An employee benefit plan within the meaning of ERISA which is a self-directed plan with investment decisions made solely by persons described by one or more of the categories set forth in subsections (i) through (ix) and (xiii) through (xviii) of this Section II.

 

    	 	A-2	 

     

    

 

STELLUS PRIVATE CREDIT BDC

INVESTOR QUESTIONNAIRE

 

	____	(xiii)	Either (A) a corporation, (B) a Massachusetts or similar business trust, (C) a partnership, (D) a limited liability company, or (E) an organization described in Section 501(c)(3) of the Internal Revenue Code, in any case not formed for the specific purpose of acquiring the Shares and having total assets in excess of $5,000,000.

 

	____	(xiv)	A natural person whose individual net worth, or joint
net worth with his or her spouse, excluding the value of his or her primary residence, exceeds $1,000,0001.
	 	 	 
	____	(xv)	A natural person who had individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and who reasonably expects income in excess of such amounts in the current year.
	 	 	 
	____	(xvi)	A trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring Shares whose purchase is directed by a person who has, alone or together with his or her purchaser representative (as defined in the aforementioned Regulation D), such knowledge and experience in financial and business matters that he or she is capable of evaluating the merits and risks of this investment.
	 	 	 
	____	(xvii)	A trust pursuant to which the grantor(s) of the trust may revoke the trust at any time and regain title to the trust assets and has (have) retained sole or shared investment control over the assets of the trust, and the (each) grantor is described by one or more of the categories set forth above in subsections (xiv) or (xv) of this Section II.
	 	 	 
	____	(xviii)	A partnership, corporation or other entity, not formed for the specific purpose of acquiring Shares, in which all of the equity holders are persons described by one or more of the categories set forth above in subsections (i) through (xvii) of this Section II.
	 	 	 
	____	(xix)	A partnership, corporation or other entity which is formed for the specific purpose of acquiring Shares and in which all of the equity holders are persons described by one or more of the categories set forth above in subsections (i) through (xviii) of this Section II, in which case the Subscriber has so notified the Company in writing that it is relying on this clause (xix), and agrees to provide the Company with information requested by it respecting the Subscriber’s equity holders.)
	 	 	 
	____	(xx)	An employee benefit plan within the meaning of Title I of ERISA, acting for its own account or for the accounts of other “qualified institutional buyers” as defined under Rule 144A promulgated under the Securities Act, that in the aggregate owns and invests on a discretionary basis at least $100 million in securities of issuers that are not affiliated with the plan.

 

 

1 For purposes of this net worth calculation you may
exclude the amount of indebtedness secured by the Subscriber’s primary residence up to the amount of the estimated fair market
value of such residence. However, if the amount of the indebtedness secured by the Subscriber’s primary residence exceeds the value
of such residence, the amount of that excess debt should be treated as a liability and deducted from Subscriber’s net worth. In
addition, indebtedness secured by the Subscriber’s primary residence that is incurred within sixty (60) days of the date of subscription
must be included as a liability unless such indebtedness is incurred in connection with the acquisition of the Subscriber’s primary
residence.

 

    	 	A-3	 

     

    

 

STELLUS PRIVATE CREDIT BDC

INVESTOR QUESTIONNAIRE

 

	____	(xxi)	A plan 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, acting for its own account or for the accounts of other “qualified institutional buyers” as defined under Rule 144A promulgated under the Securities Act, that in the aggregate owns and invests on a discretionary basis at least $100 million in securities of issuers that are not affiliated with the plan.

 

Check all applicable
categories.

 

    	 	A-4	 

    

 

 

STELLUS PRIVATE CREDIT BDC

INVESTOR QUESTIONNAIRE

 

		III.	Supplemental Information

 

	1.	Is the Subscriber, or will the Subscriber be, a Benefit Plan Investor (as defined below) or is it or will it use the assets of an entity or other Person that is or will in the future be a Benefit Plan Investor to invest in the Company?

 

 ̈ yes                ̈ no

 

A “Benefit Plan Investor”
is

 

		·	Any “employee benefit plan” as defined in Section 3(3) of ERISA that is subject to ERISA.

 

		·	Any “plan” described in Section 4975(e)(1) of the Code that is subject to Section 4975 of
the Code. Such a plan includes, without limitation, an “individual retirement account” described in Section 408 or 408A of
the Code, a Keogh plan, an Archer MSA described in Section 220(d) of the Code, a Coverdell education savings account described in Section
530 of the Code and a health saving account described in Section 223(d) of the Code.

 

		·	Any entity that is or would be deemed to be holding “plan assets” (within the meaning of Section
3(42) of ERISA) as the result of investment in such entity by other Benefit Plan Investors.

 

		a.	Is the Subscriber, or will the Subscriber be an “employee
benefit plan” as defined in Section 3(3) of ERISA that is subject to ERISA?

 

 ̈ yes                ̈ no

 

		b.	Is the Subscriber, or will the Subscriber be, any “plan”
described in Section 4975(e)(1) of the Code that is subject to Section 4975 of the Code?

 

 ̈ yes                ̈ no

 

		2.	Is the Subscriber, or will the Subscriber be, an entity (other than an insurance company general
                                                                                  account) whose assets will be deemed to constitute “plan assets” subject to ERISA or Section 4975 of the Code by reason
                                                                                  of investment in such entity by other Benefit Plan Investors?

 

 ̈ yes                ̈ no

 

	3.	Answer this Question 3 only if the answer to Question (2) above is “yes”: What is the maximum percentage of the Subscriber’s assets that constitutes or will in the future constitute “plan assets” subject to ERISA or Section 4975 of the Code?:

 

		 	_____________%

 

    A-5 

     

    

 

STELLUS PRIVATE CREDIT BDC

INVESTOR QUESTIONNAIRE

 

	4.	If the Subscriber is or will be an insurance company general account, does or will any portion of the underlying assets in its general account constitute “plan assets” subject to ERISA or Section 4975 of the Code?

 

 ̈ yes                ̈ no

 

	5.	Answer this Question 5 only if the answer to Question (4) above is “yes”: What is the maximum percentage of the assets in the Subscriber’s general account that constitutes or will in the future constitute “plan assets” subject to ERISA or Section 4975 of the Code?
	 	 
	 	____________%

 

		 	Without limiting the remedies available in the event of a breach, the Subscriber agrees
                                                                                  promptly to notify the Company and the Adviser in writing if there is a change in the percentage as set forth in Question (3) or
                                                                                  Question (5) above and at such other time or times as the Company or the Adviser may request.

 

	Related Parties/Other Beneficial Parties
	 
	6.	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 Company or a person who provides investment advice with respect to the assets of the Company or an “affiliate” of such a person (a “Controlling Person”)? For purposes of this representation, 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
	 	 
	7.	To the best of the Subscriber’s knowledge, does the Subscriber control, or is the Subscriber controlled by or under common control with, any other investor in the Company?
	 	 
	 	 ̈ yes                ̈ no
	 	 
	 	
    If the question above was answered “Yes,” please indicated
the name of such other investor in the space below:

	 	 	 
	 	 	 
	8.	Will any other person or persons have a beneficial interest in the Shares to be acquired hereunder (other than as a shareholder, partner, policy owner or other beneficial owner of equity interests in the Subscriber)? (By way of example, and not limitation, a “nominee” Subscriber or a Subscriber who has entered into swap or other synthetic or derivative instruments or arrangements with regard to the Shares to be acquired herein would check “Yes.”)
	 	 
	 	 ̈ yes                ̈ no
	 	 
	 	If either question above was answered “Yes,” please contact the Administrator for additional information that will be required.

 

	BHC Investor Status
	 
	9.	Is the Subscriber a “BHC Investor”?*
	 	 
	 	 ̈ yes                ̈ no

 

    A-6 

     

    

 

STELLUS PRIVATE CREDIT BDC

INVESTOR QUESTIONNAIRE

 

	 	*A “BHC Investor” is defined as an Investor that is a bank holding company, as defined in Section 2(a) of the Bank Holding Company Act of 1956, as amended (the “BHC Act”), a non-bank subsidiary (for purposes of the BHC Act) of a bank holding company, a foreign banking organization, as defined in Regulation K of the Board of Governors of the Federal Reserve System (12 C.F.R. § 211.23) or any successor regulation, or a non-bank subsidiary (for purposes of the BHC Act) of a foreign banking organization which subsidiary is engaged, directly or indirectly in business in the United States and which in any case holds Shares for its own account.

 

	New York State Tax Domicile
	 
	10.	Is the Subscriber’s tax domicile the State of New York?
	 
	 	 ̈ yes                ̈ no

  

		IV.	Dividend Reinvestment Plan.

 

The Company will adopt a dividend reinvestment
plan under which cash distributions to investors are automatically reinvested for additional Shares. Subscribers may opt out of the plan
by checking the box below. Elections may be altered, subject to approval by the Company:

 

 ̈
Opt-out of Dividend Reinvestment Plan

 

		V.	For distributions of cash, please wire funds to the following
bank account:

 

	 	Bank Name:	 
	 	Bank Location:	 
	 	Account Number:	 
	 	Account Name:	 
	 	Bank’s Routing No.:	 

 

    A-7 

     

    

 

APPENDIX B

 

STELLUS PRIVATE CREDIT BDC

CERTIFICATION OF BENEFICIAL OWNER(S)

 

This form requires you to provide the name, address,
date of birth and Social Security number (or passport number or other similar information, in the case of Non-U.S. Persons) for the following
individuals (i.e., the beneficial owners):

 

		(i)	Each individual, if any, who owns, directly or indirectly, 25% or more of the equity interests of the
legal entity customer (e.g., each natural person that owns 25% or more of the shares of a corporation); and

 

		(ii)	An individual with significant responsibility for managing the legal entity customer (e.g., a Chief
Executive Officer, Chief Financial Officer, Chief Operating Officer, Managing Member, General Partner, President, Vice President, or Treasurer).

 

The number of individuals that satisfy this definition
of “beneficial owner” may vary. Under section (i), depending on the factual circumstances, up to four individuals (but as
few as zero) may need to be identified. Regardless of the number of individuals identified under section (i), you must provide the identifying
information of one individual under section (ii). It is possible that in some circumstances the same individual might be identified under
both sections (e.g., the President of Acme, Inc. who also holds a 30% equity interest). Thus, a completed form will contain
the identifying information of at least one individual (under section (ii)), and up to five individuals (i.e., one individual under
section (ii) and four 25% equity holders under section (i)).

 

Persons subscribing on behalf of a legal entity must provide the
following information:

 

		a.	Name and Title of Natural Person:

 

________________________________________________________________________________

 

		b.	Name, Type, and Address of Legal Entity:

 

________________________________________________________________________________

 

     

     

    

 

		c.	The following information for each individual, if any, who, directly or indirectly, through any contract, arrangement, understanding,
relationship or otherwise, owns 25% or more of the equity interests of the legal entity listed above:

 

	Name	Date of Birth	Address (Residential or Business Street Address)	For U.S. Persons: Social Security Number 	For Non-U.S. Persons: Social Security Number, Passport Number and Country of Issuance, or other similar identification number2
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

(If no individual meets this
definition, please write “Not Applicable.”)

 

		d.	The following information for one individual with significant responsibility for managing the legal entity listed above,
such as:

 

		 ̈	An executive officer or senior manager (e.g., Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Managing
Member, General Partner, President, Vice President, Treasurer); or

		 ̈	Any other individual who regularly performs similar functions.

(If appropriate, an individual listed under section (c) above
may also be listed in this section (d)).

 

	Name/Title	Date of Birth	Address (Residential or Business Street Address)	For U.S. Persons: Social Security Number 	For Non-U.S. Persons: Social Security Number, Passport Number and Country of Issuance, or other similar identification number1
	 	 	 	 	 

 

I, ________________ (name of natural person), hereby certify,
to the best of my knowledge, that the information provided above is complete and correct.

 

	Signature:  	 	Date: 	 	 

 

	Legal Entity Identifier  	 	(Optional)

 

 

2 In lieu of a passport number, Non-U.S. Persons may also
provide a Social Security Number, an alien identification card number, or number and country of issuance of any other government-issued
document evidencing nationality or residence and bearing a photograph or similar safeguard.

 

     

     

    

 

APPENDIX
C

BYLAWS OF THE COMPANY

 

     

     

    

 

APPENDIX
D

AGREEMENT AND DECLARATION OF TRUST OF THE COMPANY

 

     

     

    

 

APPENDIX
E

INVESTMENT ADVISORY AGREEMENT

 

     

     

    

 

APPENDIX
F

ADMINISTRATION AGREEMENT

 

     

     

    

 

APPENDIX G

PRIVACY POLICIES AND PRACTICES

 

     

     

    

 

Draft—Privileged & Confidential

 

APPENDIX
H

TRANSFER RESTRICTIONS

  

This Appendix H 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.

 

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 Company
books and (b) the prior written consent of the Company. In any event, the consent of the Company may be withheld (i) if the
creditworthiness of the proposed transferee, as determined by the Company 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 Company) satisfactory in form
and substance to the Company, such Transfer would not violate the Securities Act or any state (or other jurisdiction) securities or “blue
sky” laws applicable to the Company or the Shares to be Transferred.

 

Any person that acquires all or any portion of
the Shares of the Subscriber in a Transfer permitted under this Appendix H shall be obligated to pay to the Company 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 Shares, as between it and the Company it shall
remain liable for its Capital Commitment prior to the time, if any, when the purchaser, assignee or transferee of such Shares, or fraction
thereof, becomes a holder of such Shares.

 

The Company shall not recognize for any purpose
any purported Transfer of all or any portion of the Shares and shall be entitled to treat the transferor of Shares as the absolute owner
thereof in all respects, and shall incur no liability for distributions or dividends made in good faith to it, unless the Company shall
have given its prior written consent thereto and there shall have been filed with the Company a dated notice of such Transfer, in form
satisfactory to the Company, 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.

 

    2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00338-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00338-of-00352.parquet"}]]