Document:

EX-10.2

 Exhibit 10.2 

 
 

 
  

  
 GLOBAL

 CUSTODIAL SERVICES AGREEMENT 
 SOLAR CAPITAL LTD 
 SOLAR SENIOR CAPITAL LTD 

 
  
  

  

			
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 TABLE OF CONTENTS 

 

							
	1.	 	 DEFINITIONS AND INTERPRETATION
	  	 	1	 
	2.	 	 ESTABLISHMENT OF ACCOUNTS
	  	 	2	 
	3.	 	 SECURITIES ACCOUNT PROCEDURES
	  	 	3	 
	4.	 	 CASH ACCOUNT PROCEDURES
	  	 	4	 
	5.	 	 INSTRUCTIONS
	  	 	4	 
	6.	 	 PERFORMANCE BY THE CUSTODIAN
	  	 	5	 
	7.	 	 TAX STATUS/WITHHOLDING TAXES
	  	 	6	 
	8.	 	 USE OF THIRD PARTIES
	  	 	6	 
	9.	 	 REPRESENTATIONS
	  	 	7	 
	10.	 	 SCOPE OF RESPONSIBILITY
	  	 	8	 
	11	 	 SUBROGATION
	  	 	9	 
	12.	 	 INDEMNITY
	  	 	9	 
	13.	 	 LIEN AND SET OFF
	  	 	9	 
	14.	 	 FEES AND EXPENSES
	  	 	10	 
	15.	 	 CITIGROUP ORGANISATION INVOLVEMENT
	  	 	10	 
	16.	 	 RECORDS AND ACCESS
	  	 	10	 
	17.	 	 INFORMATION
	  	 	10	 
	18.	 	 ADVERTISING
	  	 	11	 
	19.	 	 TERMINATION.
	  	 	11	 
	20.	 	 GOVERNING LAW AND JURISDICTION
	  	 	11	 
	21.	 	 MISCELLANEOUS
	  	 	11	 
		 	 SIGNATURES
	  	 	13	 

 Schedules: 
  

	•	 	 Fee Schedule 

  

			
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 THIS GLOBAL CUSTODIAL SERVICES AGREEMENT is made on March     , 2013, by and
between, severally and not jointly, SOLAR CAPITAL LTD and SOLAR SENIOR CAPITAL LTD, (each the “Client “) and Citibank, N.A. acting through its offices located in New York (the “Custodian”). It is understood
and agreed that this document shall constitute a separate agreement between Custodian and each party listed above, as if each party listed had executed a separate document naming only itself as Client, and that no party listed above shall have any
liability under this document for the obligations of any other party so listed, and the term “this Agreement” shall be construed accordingly. For the avoidance of doubt, there shall be no cross-liability or cross-collateralization between
the Clients listed above. In the event the Global Custodial Services Agreement is terminated between any of the Clients listed above and the Custodian, the equivalent agreement between the Custodian and any remaining Client shall continue in full
force and effect unless and until either party hereto terminates such agreement in accordance with the terms therein. 
 WHEREAS, the Client is
a closed-end management investment company, which has elected to be treated as a business development company under the Investment Company Act of 1940, as amended (the “1940 Act”); 

WHEREAS, the Client desires to retain the Custodian to act as custodian for the Client and each Fund hereafter identified; 

WHEREAS, the Client desires that the Client’s Securities (as defined below) and cash be held and administered by the Custodian pursuant to this
Agreement in compliance with Section 17(f) of the 1940 Act; and 
 NOW THEREFORE, in consideration of the mutual covenants and agreements
contained herein, the parties hereto agree as follows: 
  

	1.	 DEFINITIONS AND INTERPRETATION 

 

	(A)	 Definitions. 

 “Authorized Person” means the Client or any person (including any individual or entity) authorized by the Client to act on its behalf in the performance of any act,
discretion or duty under this Agreement (including, for the avoidance of doubt, any officer or employee of such person) in a notice reasonably acceptable to the Custodian. The initial Authorized Persons are set forth on Schedule B attached
hereto and made a part hereof (as such Schedule B may be modified from time to time by written notice from the Client to the Custodian); and the Client hereby represents and warrants that the true and accurate specimen signatures of such
initial Authorized Persons are set forth on Schedule B. 
 “Cash” means all cash or cash
equivalents in any currency received and held on the terms of this Agreement. 
 “Cash Account” means
the segregated account established at the Custodian to which the Custodian shall deposit and hold any cash received by it. 

“Citigroup Organisation” means Citigroup, Inc. and any company or other entity of which Citigroup, Inc. is
directly or indirectly a shareholder or owner. For purposes of this Agreement, each branch of Citibank, N.A. shall be a separate member of the Citigroup Organisation. 
 “Clearance System” means any clearing agency, settlement system or securities depository (including any entity that acts as a system for the central handling of Securities, such as
the Depository Trust Company and any other clearing agency registered with the Securities and Exchange Commission under Section 17A of 

  

			
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the Securities Exchange Act of 1934, as amended (the “1934 Act”), which acts as a system for the central handling of securities where all securities of any particular class or
series of an issuer deposited within the system are treated as fungible and may be transferred or pledged by bookkeeping entry without physical delivery of the securities,in the country where it is incorporated or organised or that acts as a
transnational system for the central handling of Securities) used in connection with transactions relating to Securities and any nominee of the foregoing. 
 “Fee Schedule” means the schedule referred to in Section 14, as annexed hereto. 
 “Funds” means each fund listed in Appendixes for the Clients, annexed hereto as amended from time to time by mutual agreement of the parties. 

“Instructions” means instructions, including by facsimile (including trade confirmations) received by the Custodian in
form acceptable to it, from the Client, or any person duly authorized by the Client, by any of the following means: 
 (a) in writing signed by two (2) Authorized Persons (and delivered by hand, by mail, by overnight courier, by electronic mail or by telecopier); 

(b) in tested communication; 
 (c) in a communication utilizing access codes effected between electro mechanical or electronic devices; or 
 (d) such other means as may be agreed upon from time to time by the Custodian and the party giving such instructions,. 
 “Securities” means any financial asset (other than Cash) from time to time held for the Client on the terms of this Agreement. 

“Taxes” means all taxes, levies, imposts, charges, assessments, deductions, withholdings and related liabilities,
including additions to tax, penalties and interest imposed on or in respect of (i) Securities or Cash, (ii) the transactions effected under this Agreement or (iii) the Client; provided that “Taxes” does not include income or
franchise taxes imposed on or measured by the net income of the Custodian or its agents. 
  

	(B)	 Interpretation. 

 References in this Agreement to schedules shall be deemed to be references to schedules, the terms of which shall be incorporated into and form part of this Agreement. 

 

	2.	 ESTABLISHMENT OF ACCOUNTS 

  

	(A)	 Accounts. The Client authorises the Custodian to establish on its books, pursuant to the terms of this
Agreement, (i) Securities account or accounts ( “Securities Account”) and (ii) a “Cash Account” or accounts. The Securities Account will be a Securities Account for the receipt, safekeeping and maintenance of
Securities, and the Cash Account will be a current account for Cash. 

  

	(B)	 Acceptance of Securities and Cash. The Custodian will determine in its reasonable discretion whether to accept (i) for
custody in the Securities Account, Securities of any kind and (ii) for deposit in the Cash Account, Cash in any currency. 

  

			
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	(C)	 Designation of Accounts. 

 

	(i)	 The Securities Account will be in the name of the Client or such other name as the Client may reasonably designate and will indicate that
Securities do not belong to the Custodian and are segregated from the Custodian’s assets. 

  

	(ii)	 The Cash Account will be in the name of the Client or such other name as the Client may reasonably designate and will be held by the Custodian
as banker. The Cash Account will be held by the Custodian and subject to the due care of a professional custodian for hire. 

  

	(D)	 Segregation. 

  

	(i)	 The Custodian will hold Securities with a subcustodian only in an account which holds exclusively assets held by the Custodian for its
customers. The Custodian will direct each subcustodian to identify on its books that Securities are held for the account of the Custodian as custodian for its customers. The Custodian will direct each subcustodian, to hold Securities in a Clearance
System only in an account of the subcustodian which holds exclusively assets held by the subcustodian for its customers. 

  

	(ii)	 Any Securities deposited by the Custodian with a subcustodian will be subject only to the instructions of the Custodian, and any Securities
held in a Clearance System for the account of a subcustodian will be subject only to the instructions of the subcustodian. 

  

	(iii)	 The Custodian shall require the subcustodian to agree that Securities will not be subject to any right, charge, security interest, lien or
claim of any kind in favour of the subcustodian. 

  

	3.	 SECURITIES ACCOUNT PROCEDURES 

  

	(A)	 Credits to the Securities Account. The Custodian is not obligated to credit Securities to the Securities Account before
receipt of such Securities by final settlement. 

  

	(B)	 Debits to the Securities Account. If the Custodian has received Instructions that would result in the delivery of Securities
exceeding credits to the Securities Account for that Security, the Custodian may reject the Instructions or may decide which deliveries it will make (in whole or in part and in the order it selects). 

 

	(C)	 Denomination of Securities. The Client shall bear the risk and expense associated with investing in Securities
denominated in any currency. 

  

	(D)	 Receipt of Securities. The Custodian shall hold in a separate account, and physically segregated at all times from those of any
other persons, firms or corporations, pursuant to the provisions hereof, all securities received by it for or for the account of the Client. All such securities are to be held or disposed of by Custodian for, and subject at all times to the
instructions of, the Client pursuant to the terms of this Agreement. The Custodian shall have no power or authority to assign, hypothecate, pledge or otherwise dispose of any such securities and investments, except pursuant to the directive of the
Client and only for the account of the Client. 

  

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

  

			
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	4.	 CASH ACCOUNT PROCEDURES 

  

	(A)	 Credits and Debits to the Cash Account. The Custodian is not obliged to make a credit or debit to the Cash Account before
receipt by the Custodian of a corresponding and final payment in cleared funds. If the Custodian makes a credit or debit before such receipt, the Custodian may at any time reverse all or part of the credit or debit (including any interest thereon),
make an appropriate entry to the Cash Account, and if it reasonably so decides, require repayment of any amount corresponding to any debit. 

  

	(B)	 Debit Balances in the Cash Account. The Custodian is not obliged to make any debit to the Cash Account which might result in or
increase a debit balance. The Custodian may make any debit to the Cash Account even if this results in (or increases) a debit balance. If the total amount of debits to the Cash Account at any time would otherwise result in a debit balance or exceed
the immediately available funds credited to the Cash Account, the Custodian may decide which debits it will make (in whole or in part and in the order it selects). 

 

	(C)	 Payments. The Custodian may at any time cancel any extension of credit. The Client will transfer to the Custodian on closure of
the Cash Account and otherwise on demand from the Custodian sufficient immediately available funds to cover any debit balance on the Cash Account or any other extension of credit and any interest, fees and other amounts owed.

  

	(D)	 Foreign Currency Risks. The Client shall bear the risk and expense associated with Cash denominated in any currency.

  

	(E)	 Cash Held as Banker. Cash credited to the Cash Account is held in a demand deposit account or equivalent under applicable
law. In holding cash the Custodian is not acting as trustee or holding cash in trust or in connection with any cash transfer or transaction, including foreign exchange effected pursuant to this Agreement. 

 

	5.	 INSTRUCTIONS 

 The Custodian is entitled to rely and act upon Instructions of any Authorized Person until the Custodian has received notice of any change from the Client and has had a reasonable time to note and
implement such change. The Custodian is authorized to rely upon any Instructions received by any means, provided that the Custodian and the Client have agreed upon the means of transmission and the method of identification for the Instructions. In
particular: 
  

	(i)	 The Client and the Custodian will comply with security procedures designed to verify the origination of Instructions.

  

	(ii)	 The Custodian is not responsible for errors or omissions made by the Client or resulting from fraud or the duplication of any Instruction by
the Client, and the Custodian may act on any Instruction by reference to an account number only, even if any account name is provided. 

  

	(iii)	 The Custodian may act on an Instruction if it reasonably believes it contains sufficient information. 

 

	(iv)	 The Custodian may decide not to act on an Instruction where it reasonably doubts its contents, authorisation, origination or compliance with
any security procedures and will promptly notify the Client of its decision. 

  

	(v)	 If the Custodian acts on any Instruction sent manually (including facsimile or telephone), then, if the Custodian complies with the security
procedures, the Client will be responsible for any loss the Custodian may incur in connection with that Instruction. The Client expressly acknowledges that the Client is aware that the use of manual forms of communication to convey Instructions
increases the risk of error, security and privacy issues and fraudulent activities. 

  

			
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	(vi)	 Instructions are to be given in the English language. 

 

	(vii)	 The Custodian is obligated to act on Instructions only within applicable cut-off times on banking days when the Custodian and the applicable
financial markets are open for business. 

  

	(viii)	 In some securities markets, securities deliveries and payments therefore may not be or are not customarily made simultaneously. Accordingly,
notwithstanding the Client’s Instruction to deliver Securities against payment or to pay for Securities against delivery, the Custodian may make or accept payment for or delivery of Securities at such time and in such form and manner as is in
accordance with relevant local law and practice or with the customs prevailing in the relevant market. 

  

	6.	 PERFORMANCE BY THE CUSTODIAN 

  

	(A)	 Custodial Duties Requiring Instructions. The Custodian shall carry out the following actions only upon receipt of and in
accordance with specific Instructions: 

  

	(i)	 make payment for and/or receive any Securities or deliver or dispose of any Securities except as otherwise specifically provided for in this
Agreement; 

  

	(ii)	 deal with rights, conversions, options, warrants and other similar interests or any other discretionary right in connection with Securities;
and 

  

	(iii)	 carry out any action affecting Securities or the Securities Account or Cash or the Cash Account other than those specified in
Section 6(B) below, but in each instance subject to the agreement of the Custodian. 

  

	(B)	 Non-Discretionary Custodial Duties. Absent a contrary Instruction, the Custodian shall carry out the following without further
Instructions: 

  

	(i)	 in the Client’s name or on its behalf, sign any affidavits, certificates of ownership and other certificates and documents relating to
Securities which may be required (i) to obtain any Securities or Cash or (ii) by any tax or regulatory authority; 

  

	(ii)	 collect, receive, and/or credit the Securities Account or Cash Account, as appropriate, with all income, payments and distributions in respect
of Securities and any capital arising out of or in connection with Securities (including all Securities received by the Custodian as a result of a stock dividend, bonus issue, share sub-division or reorganisation, capitalisation of reserves or
otherwise) and take any action necessary and proper in connection therewith; 

  

	(iii)	 exchange interim or temporary receipts for definitive certificates, and old or overstamped certificates for new certificates;

  

	(iv)	 notify the Client of notices, circulars, reports and announcements which the Custodian has received, in the course of acting in the capacity
of custodian, concerning Securities held on the Client’s behalf that require discretionary action. Neither the Custodian nor any nominee of the Custodian shall vote any of the securities held hereunder. Any shareholder voting services are
separate and not part of this agreement. 

  

	(v)	 make any payment by debiting the Cash Account or any other designated account of the Client with the Custodian as required to effect any
Instruction; and 

  

	(vi)	 attend to all non-discretionary matters in connection with anything provided in this Section 6(B) or any Instruction

  

	(C)	 Reporting. 

  

	(i)	 The Custodian shall render to the Client a monthly report of (i) all deposits to and withdrawals from the Cash Account during the
month, and the outstanding balance (as of the last day of the preceding monthly 

  

			
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report and as of the last day of the subject month) and (ii) an itemized statement of the Securities held pursuant to this Agreement as of the end of each month, all transactions in the
Securities during the month, as well as a list of all Securities transactions that remain unsettled at that time, and (iii) such other matters as the parties may agree from time to time. 

 

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

 

	(iii)	 The Custodian shall provide the Client, promptly upon request, with such reports as are reasonably available to it and as the Client may
reasonably request from time to time, concerning (i) the internal accounting controls, including procedures for safeguarding securities, which are employed by the Custodian or any sub-custodian appointed. 

 

	7.	 TAX STATUS/WITHHOLDING TAXES 

  

	(A)	 Information. The Client will provide the Custodian, from time to time and in a timely manner, with information and proof (copies
or originals) as the Custodian reasonably requests, as to the Client’s and/or the underlying beneficial owner’s tax status or residence. Information and proof may include, as appropriate, executing certificates, making representations and
warranties, or providing other information or documents in respect of Securities, as the Custodian deems necessary or proper to fulfill obligations under applicable law. 

 

	(B)	 Payment. If any Taxes become payable with respect to any payment to be made to the Client, such Taxes will be payable by the
Client and the Custodian may withhold the Taxes from such payment. The Custodian may withhold any Cash held or received with respect to the Cash Account and apply such Cash in satisfaction of such Taxes. If any Taxes become payable with respect to
any prior payment made to the Client by the Custodian, the Custodian may withhold any Cash in satisfaction of such prior Taxes. The Client shall remain liable for any deficiency. 

 

	(C)	 Tax Relief. In the event the Client requests that the Custodian provide tax relief services and the Custodian agrees to provide
such services, the Custodian shall apply for appropriate tax relief (either by way of reduced tax rates at the time of an income payment or retrospective tax reclaims in certain markets as agreed from time to time); provided the Client provides to
the Custodian such documentation and information as to it or its underlying beneficial owner clients as is necessary to secure such tax relief. However, in no event shall the Custodian be responsible, or liable, for any Taxes resulting from the
inability to secure tax relief, or for the failure of any Client or beneficial owner to obtain the benefit of credits, on the basis of foreign taxes withheld, against any income tax liability. 

 

	8.	 USE OF THIRD PARTIES 

  

	(A)	 General Authority. 

  

	(i)	 The Custodian is hereby authorized to appoint subcustodians and administrative support providers as its delegates and to use or participate in
market infrastructures and Clearance Systems to perform any of the duties of the Custodian under this Agreement. 

  

	(ii)	 Subcustodians are those persons utilised by the Custodian for the safe-keeping, clearance and settlement of Securities.

  

	(iii)	 Administrative support providers are those persons utilised by the Custodian to perform ancillary services of a purely administrative nature
such as couriers, messengers or other commercial transport systems. 

  

			
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	(iv)	 Market infrastructures are public utilities, external telecommunications facilities and other common carriers of electronic and other
messages, and external postal services. Market infrastructures are not delegates of the Custodian. 

  

	(v)	 Securities deposited with Clearance Systems hereunder will be subject to the laws, rules, statements of principle and practices of such
Clearance Systems Clearance Systems are not delegates of the Custodian. 

  

	(B)	 Responsibility. 

  

	(i)	 The Custodian shall act in good faith and use reasonable care in the selection and continued appointment of subcustodians and administrative
support providers, but shall otherwise have no responsibility for performance by such persons of any of the duties delegated to them under this Agreement. 

 

	(ii)	 The Custodian may deposit or procure the deposit of Securities with any Clearance System as required by law, regulation or best market
practice. The Custodian has no responsibility for selection or appointment of, or for performance by, any Clearance System or market infrastructure. 

  

	(iii)	 Notwithstanding the foregoing and pursuant to Section 10, the Custodian shall be responsible for the negligence, wilful misconduct or
fraud of any subcustodian or administrative support provider. 

  

	(C)	 Shareholders Voting. The Custodian’s only obligation in regard to any matter where the Client may exercise
shareholder voting rights will be to provide shareholder voting services as specified in a separate proxy services letter between the Custodian and the Client. For the avoidance of doubt, neither the Custodian nor any nominee of the Custodian shall
vote any of the securities held hereunder and any shareholder voting services are separate and not part of this agreement. 

  

	9.	 REPRESENTATIONS 

  

	(A)	 General. The Client and the Custodian each represents at the date this Agreement is entered into and any custodial service is
used or provided that: 

  

	(i)	 It is duly organised and in good standing in every jurisdiction where it is required so to be; 

 

	(ii)	 It has the power and authority to sign and to perform its obligations under this Agreement; 

 

	(iii)	 This Agreement is duly authorized and signed and is its legal, valid and binding obligation; 

 

	(iv)	 Any consent, authorisation or instruction required in connection with its execution and performance of this Agreement has been provided by any
relevant third party; 

  

	(v)	 Any act required by any relevant governmental or other authority to be done in connection with its execution and performance of this Agreement
has been or will be done (and will be renewed if necessary); and 

	(vi)	 Its performance of this Agreement will not violate or breach any applicable law, regulation, contract or other requirement.

  

	(B)	 Client. The Client also represents at the date this Agreement is entered into and any custodial service is used or
provided that: 

  

	(i)	 It has authority to deposit the Securities received in the Securities Account and the Cash in the Cash Account and there is no claim or
encumbrance that adversely affects any delivery of Securities or payment of Cash made in accordance with this Agreement; 

  

	(ii)	 Where it acts as an agent on behalf of any of its own customers, whether or not expressly identified to the Custodian from time to time, any
such customers shall not be customers or indirect customers of the Custodian; and 

  

			
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	(iii)	 It has not relied on any oral or written representation made by the Custodian or any person on its behalf. 

 

	10.	 SCOPE OF RESPONSIBILITY 

  

	(A)	 Standard of Care. The Custodian shall exercise the due care of a professional custodian for hire. 

 

	(B)	 Limitations on Losses. The Custodian will not be responsible for any loss or damage suffered by the Client unless the loss or
damage results from the Custodian’s negligence, wilful misconduct or fraud or the negligence, wilful misconduct or fraud of its nominees or any branch or subsidiary or subcustodian or administrative support provider; in the event of such
negligence or wilful misconduct the liability of the Custodian in connection with the loss or damage will not exceed (i) the lesser of replacement of any Securities or the market value of the Securities to which such loss or damage relates at
the time the Client reasonably should have been aware of such negligence or wilful misconduct and (ii) replacement of Cash, plus (iii) compensatory interest up to that time at the rate applicable to the base currency of the Cash Account.
Under no circumstances will the Custodian be liable to the Client for consequential loss or damage, even if advised of the possibility of such loss or damage. 

 

	(C)	 Limitations on the Custodian’s Responsibility. 

 

	(i)	 General. The Custodian is responsible for the performance of only those duties as are expressly set forth herein, including the
performance of any Instruction given in accordance with this Agreement. The Custodian shall have no implied duties or obligations. 

  

	(ii)	 Sole Obligations of the Custodian. The Client understands and agrees that (i) the obligations and duties of the Custodian
will be performed only by the Custodian and are not obligations or duties of any other member of the Citigroup Organisation (including any branch or office of the Custodian) and (ii) the rights of the Client with respect to the Custodian extend
only to such Custodian and, except as provided by law, do not extend to any other member of the Citigroup Organisation. 

  

	(iii)	 No Liability for Third Parties. Except as provided in Section 8 hereof, the Custodian is not responsible for the acts,
omissions, defaults or insolvency of any third party including, but not limited to, any broker, counterparty or issuer of Securities. 

  

	(iv)	 Performance Subject to Laws. The Client understands and agrees that the Custodian’s performance of this Agreement is
subject to the relevant local laws, regulations, decrees, orders and government acts, and the rules, operating procedures and practices of any relevant stock exchange, Clearance System or market where or through which Instructions are to be carried
out and to which the Custodian is subject and as exist in the country in which any Securities or Cash are held. 

  

	(v)	 Prevention of Performance. The Custodian will not be responsible for any failure to perform any of its obligations (nor will it
be responsible for any unavailability of funds credited to the Cash Account) if such performance is prevented, hindered or delayed by a Force Majeure Event, in such case its obligations will be suspended for so long as the Force Majeure Event
continues. “Force Majeure Event” means any event due to any cause beyond the reasonable control of the Custodian, such as restrictions on convertibility or transferability, requisitions, involuntary transfers, unavailability of
communications system, sabotage, fire, flood, explosion, acts of God, civil commotion, strikes or industrial action of any kind, riots, insurrection, war or acts of government. 

 

	(vi)	 Client’s Reporting Obligations. The Client shall be solely responsible for all filings, tax returns and reports on any
transactions in respect of Securities or Cash or relating to Securities or Cash as may be required by any relevant authority, whether governmental or otherwise. 

  

			
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	(vii)	 Validity of Securities. The Custodian shall exercise reasonable care in receiving Securities but does not warrant or guarantee
the form, authenticity, value or validity of any Security received by the Custodian. If the Custodian becomes aware of any defect in title or forgery of any Security, the Custodian shall promptly notify the Client. 

 

	(viii)	 Capacity of Custodian. The Custodian is not acting under this Agreement as an investment manager, nor as an investment, legal or
tax adviser to the Client, and the Custodian’s duty is solely to act as a Custodian in accordance with the terms of this Agreement. 

  

	(ix)	 Forwarded Information. The Custodian is not responsible for the form, accuracy or content of any notice, circular, report,
announcement or other material provided under Section 6(B)(iv) of this Agreement not prepared by the Custodian including the accuracy or completeness of any translation provided by the Custodian in regard to such forwarded communication.

  

	11.	 SUBROGATION 

 To the extent permissible by law or regulation and upon the Client’s request, the Client shall be subrogated to the rights of the Custodian with respect to any claim for any loss, damage or claim
suffered by the Client, in each case to the extent that the Custodian fails to pursue any such claim or the Client is not made whole in respect of such loss, damage or claim. Notwithstanding any other provision hereof, in no event is the Custodian
obliged to bring suit in its own name or to allow suit to be brought in its name. 
  

	12.	 INDEMNITY 

  

	(A)	 Indemnity to the Custodian. The Client agrees to indemnify the Custodian and hold the Custodian harmless from all losses, costs,
damages and expenses (including reasonable legal fees) and liabilities for any claims, demands or actions (each referred to as a “Loss”), incurred by the Custodian in connection with this Agreement, except any Loss resulting from the
Custodian’s negligence, wilful misconduct or fraud. Under no circumstances will the Client be liable to the Custodian for consequential loss or damage, even if advised of the possibility of such loss or damage. 

 

	(B)	 Client’s Direct Liability. The disclosure by the Client to the Custodian that the Client has entered into this Agreement as
the agent or representative of another person shall not relieve the Client of any of its obligations under this Agreement. 

  

	13.	 LIEN AND SET OFF 

  

	(A)	 Lien. In addition to any other remedies available to the Custodian under applicable law, the Custodian shall have, and the
Client hereby grants, a continuing general lien in favor of the Custodian on all Securities held by the Custodian or its agents on behalf of the Custodian to secure the payment of fees and expenses, overdraft charges, indemnities and other similar
obligations of the Client arising under this Agreement in the ordinary course of business until the satisfaction of such liabilities and obligations of the Client arising under this Agreement. The Custodian hereby waives any security interest,
lien or right to make deductions of setoff under this agreement to the extent expressly waived pursuant to any account control agreement or other agreement in effect between the Custodian, the Client and any other party thereto.

  

	(B)	 Set Off. To the extent permitted by applicable law and in addition to any other remedies available to the Custodian under
applicable law, the Custodian may, with prior notice to the Client, set off any payment obligation owed to it by the Client in connection with all liabilities arising under this Agreement against any payment obligation owed by it to the Client under
this Agreement that has not been promptly paid upon 

  

			
	GCSA 2011 NY - V.06.14.2011- (Std/Neg Solar, May 2013) 	  	Page 9
		  	

 

 
  

	 	
request by the Custodian regardless of the place of payment or currency of either obligation (and for such purpose may make any currency conversion necessary). 

 

	14.	 FEES AND EXPENSES 

 The Client agrees to pay all fees, charges and obligations incurred from time to time for any services pursuant to this Agreement as determined in accordance with the terms of the Fee Schedule, which may
be changed from time to time upon written agreement by the Custodian and the Client together with any other amounts payable to the Custodian under this Agreement. The Custodian may debit the Cash Account to pay overdraft charges or interest on such
with prior written notice to the Client. 
  

	15.	 CITIGROUP ORGANISATION INVOLVEMENT 

 The Client agrees and understands that any member of the Citigroup Organisation can engage as principal or otherwise in any transaction effected by the Client or by any person for its account and benefit,
or by or on behalf of any counterparty or issuer. When instructed to effect any transactions (particularly foreign exchange transactions), the Custodian is entitled to effect any transaction by or with itself or any member of the Citigroup
Organisation and to pay or keep any fee, commissions or compensation as specified in the Client’s Instruction or, if no specification is provided, any charges, fees, commissions or similar payments generally in effect from time to time with
regard to such or similar transactions. 
  

	16.	 RECORDS AND ACCESS 

  

	(A)	 Examination of Statements. The Client shall examine each statement sent by the Custodian and notify the Custodian in writing
within ninety (90) days of the date of such statement of any discrepancy between Instructions given by the Client and the position shown on the statement and of any other errors known to the Client. Absent such notification, the
Custodian’s liability for any loss or damage in regard to such discrepancy or errors shall not accrue beyond such ninety (90) days. 

  

	(B)	 Access to Records. The Custodian shall allow the Client and its independent public accountants, agents or regulators reasonable
access to the records of the Custodian relating to Securities or Cash as is required by the Client in connection with an examination of the books and records pertaining to the affairs of the Client and will seek to obtain such access from each
subcustodian and Clearance System. 

  

	17.	 INFORMATION 

 The Custodian will treat information related to the Client as confidential but, unless prohibited by law, the Client authorises the transfer or disclosure of any information relating to the Client to and
between the branches, subsidiaries, representative offices, affiliates and agents of the Custodian and third parties selected by any of them, wherever situated, for confidential use in connection with the provision of services to the Client
(including for data processing, statistical and risk analysis purposes), and further acknowledges that any such branch, subsidiary, representative office, affiliate, agent or third party may transfer or disclose any such information as required by
any law, court, regulator or legal process. 
 The Client will treat the terms of this Agreement, including any Fee Schedule, as
confidential, however, the Client may transfer or disclose any such information as required by any law, court, regulator or legal process. 

  

			
	GCSA 2011 NY - V.06.14.2011- (Std/Neg Solar, May 2013) 	  	Page 10
		  	

 

 
  

	18.	 ADVERTISING 

 Neither the Client nor the Custodian shall display the name, trade mark or service mark of the other without the prior written approval of the other, nor will the Client display that of Citigroup, Inc. or
any subsidiary of Citigroup, Inc. without prior written approval from Citigroup, Inc. or the subsidiary concerned. The Client shall not advertise or promote any service provided by the Custodian without the Custodian’s prior written consent.

  

	19.	 TERMINATION 

  

	(A)	 Date of Termination. Any party may terminate this Agreement in whole or as between itself and the other parties hereto by giving
not less than sixty (60) days’ prior written notice to such other parties. 

  

	(B)	 Effect on Property. The Custodian shall deliver the Securities and Cash as instructed by the Client. If by the termination date
the Client has not given instructions to deliver any Securities or Cash, the Custodian will continue to safekeep such Securities and/or Cash until the Client provides instructions to effect a free delivery of such. However, the Custodian will
provide no other services as regard to any such Securities except to collect and hold any cash distributions. Notwithstanding termination of this Agreement or any Instruction, the Custodian may retain sufficient Securities or Cash to close out or
complete any transaction that the Custodian will be required to settle on the Client’s behalf. 

  

	(C)	 Surviving Terms. The rights and obligations contained in Sections 7, 10, 12, 13, 17, 18 and 20 of this Agreement shall survive
the termination of this Agreement. 

  

	20.	 GOVERNING LAW AND JURISDICTION 

 

	(A)	 Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws (and not the laws of
conflicts) of the country which the Custodian is located and performs its obligations hereunder 

  

	(B)	 Jurisdiction. The courts located in the county of New York, the State of New York shall have non-exclusive jurisdiction to hear
any disputes arising out of or in connection with this Agreement, and the parties irrevocably submit to the jurisdiction of such courts. 

  

	(C)	 Venue. Each party hereto waives any objection it may have at any time, to the laying of venue of any actions or proceedings
brought in any court specified in Section 20(B) hereof, waives any claim that such actions or proceedings have been brought in an inconvenient forum and further waives the right to object that such court does not have jurisdiction over such
party. 

  

	(D)	 Sovereign Immunity. The Client and the Custodian each irrevocably waives, with respect to itself and its revenues and assets,
all immunity on the grounds of sovereignty or similar grounds in respect of its obligations under this Agreement. 

  

	21.	 MISCELLANEOUS 

  

	(A)	 Entire Agreement; Amendments. This Agreement consists exclusively of this document together with the schedules. The Custodian
may notify the Client of terms which are applicable to the provision of services in the location of a particular office and such terms shall be contained in a schedule and shall supplement this Agreement in relation to that office. In case of
inconsistency with the rest of this Agreement, such terms shall prevail in relation to that office. 

  

			
	GCSA 2011 NY - V.06.14.2011- (Std/Neg Solar, May 2013) 	  	Page 11
		  	

 

 
  

 Except as specified in this Agreement, this Agreement may only be modified by written
agreement of the Client and the Custodian. 
  

	(B)	 Severability. If any provision of this Agreement is or becomes illegal, invalid or unenforceable under any applicable law, the
remaining provisions shall remain in full force and effect (as shall that provision under any other law). 

  

	(C)	 Waiver of Rights. No failure or delay of the Client or the Custodian in exercising any right or remedy under this Agreement
shall constitute a waiver of that right. Any waiver of any right will be limited to the specific instance. The exclusion or omission of any provision or term from this Agreement shall not be deemed to be a waiver of any right or remedy the Client or
the Custodian may have under applicable law. 

  

	(D)	 Recordings. The Client and the Custodian consent to telephonic or electronic recordings for security and quality of service
purposes and agree that either may produce telephonic or electronic recordings or computer records as evidence in any proceedings brought in connection with this Agreement. 

 

	(E)	 Further Information. The Client agrees to execute further documents and provide materials and information as may be reasonably
requested by the Custodian to enable it to perform its duties and obligations under this Agreement. 

  

	(F)	 Assignment. No party may assign or transfer any of its rights or obligations under this Agreement without the other’s prior
written consent, which consent will not be unreasonably withheld or delayed; provided that the Custodian may make such assignment or transfer to a branch, subsidiary or affiliate if it does not materially affect the provision of services to the
Client. 

  

	(G)	 Headings. Titles to Sections of this Agreement are included for convenience of reference only and shall be disregarded in
construing the language contained in this Agreement. 

  

	(H)	 Counterparts. This Agreement may be executed in several counterparts, each of which shall be an original, but all of which
together shall constitute one and the same agreement. 

 {Signatures to follow} 

  

			
	GCSA 2011 NY - V.06.14.2011- (Std/Neg Solar, May 2013) 	  	Page 12
		  	

 

 
  

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers thereunto duly authorized. 
  

									
	CITIBANK, N.A.	 		 	 SOLAR CAPITAL LTD and SOLAR
 SENIOR CAPITAL LTD,

					
	 By:
	 	 	 		 	By:	 	 
					
	 Name:
	 	 	 		 	Name:	 	 
					
	 Title:
	 	 	 		 	Title:	 	 

  

			
	GCSA 2011 NY - V.06.14.2011- (Std/Neg Solar, May 2013)	  	Page 13EX-10.3

 

 
 Exhibit 10.3 

Form of 
 CUSTODIAL
SERVICES ELECTION AGREEMENT 
 THIS CUSTODIAL SERVICES ELECTION AGREEMENT is made on June         , 2018
(this “Agreement”) by and between SCP Private Credit Income BDC LLC, a Limited Liability Company organized under the laws of Delaware (the “Client”) and Citibank, N.A., acting as custodian through its
New York offices (the “Custodian”). 
 RECITALS 

WHEREAS, reference is hereby made to that certain Global Custodial Services Agreement, dated as of July 26, 2013 and amended on July 29, 2013
(as it may be amended, restated, supplemented or otherwise modified from time to time) (the “Custody Agreement”) by and between the Custodian and each of Solar Capital Ltd. and Solar Senior Capital Ltd. (the
“Original Clients”), together with any other entity who may become a party thereto from time to time pursuant to a separate Joinder Agreement or Custodial Services Election Agreement (each, a “Separate
Client”); and 
 WHEREAS, the Client wishes to obtain custodial services from the Custodian under precisely the same terms and
conditions as agreed to between the Original Clients and the Custodian under the Custody Agreement; 
 NOW, THEREFORE, in consideration of the
premises and agreements, provisions and covenants herein contained, the sufficiency of which is hereby acknowledged by the parties, the parties hereto agree as follows 
  

	1.	 The Client confirms that it has received a copy of the Custody Agreement and by execution of this Agreement the
Client ratifies as of the date hereof, and agrees to be bound by, all of the terms, conditions and provisions contained in the Custody Agreement applicable to it to the same effect as if it was an original party thereto, and such provisions are
incorporated herein in their entirety by this reference. 

  

	2.	 The Custodian agrees to provide custodial services to the Client under and agrees, as of the date hereof, to be
bound by the terms, conditions and provisions of the Custody Agreement, subject to any variations set forth herein, as if signed directly between the Custodian and the Client. 

 

	3.	 Section 7 of the Custody Agreement is replaced with the following: 

“7. TAX STATUS/WITHHOLDING TAXES 
  

	 	(A)	 Information. The Client shall provide the Custodian with information and proof (copies or
originals) as to the Client’s tax status and/or the underlying beneficial owner’s tax status or residence or other information as the Custodian reasonably requests in order for the Custodian or any agent of the Custodian to achieve
compliance with the requirements of governmental or regulatory authorities. Information and proof may include executed certificates, representations and warranties, or other documentation the Custodian deems necessary or proper to fulfill the
requirements of the applicable tax authorities. The Client shall notify the Custodian in writing within thirty (30) days, or any lesser period as stipulated under any applicable law or regulation, of the occurrence of any change in
circumstances that causes any information or representation previously provided to the Custodian on a tax form or tax certification to be incorrect, e.g., a change in the Client’s country of residence or its legal entity classification, of if
it ceases to be or becomes a financial institution. Law, regulation and authority, as used in this paragraph, may be domestic or foreign. The Client further agrees to provide to the Custodian a new tax form or tax certification (and any necessary
supporting documentation) that contains the correct information or representations. 

  
 

 

 

 
  

	 	(B)	 Payment. The Client agrees that Taxes are the responsibility of the Client and shall be
paid by the Client. The Client agrees that the Custodian will deduct or withhold for or on account of Taxes from any payment to the Client if required by any applicable law including, but not limited to, (i) statute or regulation, (ii) a
requirement of a legal, governmental or regulatory authority, or (iii) an agreement entered into by the Custodian and any governmental authority or between any two or more governmental authorities (applicable law as used in this sentence may be
domestic or foreign). The Client agrees that the Custodian may debit any amount available in any balance held for the Client and apply such Cash in satisfaction of Taxes. The Custodian shall timely pay the full amount debited or withheld to the
relevant governmental authority in accordance with the applicable law as provided in this Clause. If any Taxes become payable with respect to any prior credit to the Client by the Custodian, the Client agrees that the Custodian may debit any balance
held for the Client in satisfaction of such prior Taxes. The Client shall remain liable for any deficiency and agrees that it shall pay it upon notice from the Custodian or any governmental authority. If Taxes are paid by the Custodian or any of its
affiliates, the Client agrees that it shall promptly reimburse the Custodian for such payment to the extent not covered by withholding from any payment or debited from any balance held for the Client. 

 

	 	(C)	 Tax Relief. In the event the Client requests that the Custodian provide tax relief
services and the Custodian agrees to provide such services, the Custodian will apply for appropriate tax relief (either by way of reduced tax rates at the time of an income payment or retrospective tax reclaims in certain markets as agreed from time
to time); provided, the Client provides to the Custodian such documentation and information relating to it or its underlying beneficial owner customers as is necessary to secure such tax relief. However, in no event will the Custodian be
responsible or liable for any Taxes resulting from the inability to secure tax relief, or for the failure of any Client or beneficial owner to obtain the benefit of credits, on the basis of foreign taxes withheld, against any income tax
liability.” 

  

	4.	 New sections 9(B)(iv) and (v) are added to the Custody Agreement as follows: 

 

	 	“(vi)	 it will not use funds or any service or product contemplated by this Agreement, including a Custody Account or
the Cash Account, in a manner that could cause or result in a violation by the Custodian or any member of the Citigroup Organisation of any sanctions administered or enforced by any relevant sanctions authority, including the United States, the
European Union, any member state of the European Union and the United Nations; and 

  

	 	(vii)	 neither it nor any of its subsidiaries, nor to the best of its knowledge, any of their directors, officers,
employees, agents or affiliates, and no customer for which it is using services under this Agreement is the subject of such sanctions, or is located, organized or resident in a country or territory that is the subject of such sanctions.”

  

	5.	 Sections 10(C)(iv) and (v) of the Custody Agreement are replaced with the following:

  

	 	“(iv)	 Performance Subject to Laws. The Client agrees that the Custodian’s performance of
this Agreement, including acting on any Instruction, is subject to, and shall be performed only in accordance with, the laws (including, without limitation, governmental and regulatory actions, orders, decrees, regulations and agreements entered
into by the Custodian and any governmental authority or between any two or more governmental authorities, whether domestic or foreign) applicable to the Custodian or a member of the Citigroup Organisation as a result of the jurisdiction in which it
or its parent is organized or located or where the Custodian performs this Agreement, including with respect to the holding of any Securities or Cash, and the rules, participant requirements, operating procedures and practices of any relevant
Clearance System, stock exchange, or market. Nothing in this Agreement will oblige the Custodian to take any action that will be in breach of or be in conflict with any legal limitation as provided herein. 

 
 

 

 

 
  

	 	(v)	 Prevention of Performance. The Client agrees that the Custodian will not be responsible
for any failure to perform any of its obligations (nor will it be responsible for any unavailability of Cash in the applicable currency credited to the Client) if such performance by the Custodian or any subcustodian or administrative support
provider of the Custodian is prevented, hindered or delayed by a Force Majeure Event. “Force Majeure Event” means any event attributable to a cause beyond the reasonable control of the Custodian or its subcustodian or
administrative support provider such as restrictions on convertibility or transferability, requisitions, involuntary transfers, unavailability of any Clearance System, sabotage, fire, flood, explosion, acts of God, sanctions, governmental
requirements as provided in this Agreement, civil commotion, strikes or industrial action of any kind, riots, insurrection, war or acts of government or similar institutions, as well as any other matter specified as a country risk in this Agreement.
On the occurrence of any Force Majeure Event, the obligations of the Custodian are suspended for so long as the Force Majeure Event continues (and, in the case of the Custodian, neither it nor any member of the Citigroup Organisation shall become
liable). The Client agrees that neither the Custodian nor any member of the Citigroup Organisation is responsible or liable for any action taken to comply with sanctions or government requirements. Upon the occurrence of any Force Majeure Event, to
the extent allowed by applicable law, the Custodian shall inform the Client and shall use its reasonable efforts to minimize the effect of the Force Majeure Event on the Client. The Custodian confirms that it and each subcustodian or administrative
support provider maintains and regularly tests disaster recovery plans and contingency back-up services designed to mitigate the effects of any Force Majeure Event and which meet the standards to be expected
of an internationally regulated financial institution.” 

  

	6.	 New Section 12(C) is added to the Custody Agreement as follows: 

“(C) Mutual Exclusion of Consequential Loss and Damages. Each Party shall be liable to the other party only for
direct damages for any liability arising under this Agreement. Under no circumstances will a Party to this Agreement be liable to any other Party for special or punitive damages, or consequential, incidental or indirect loss or damage, or any loss
of profits, goodwill, business opportunity, business, revenue or anticipated savings, in relation to this Agreement, whether arising out of breach of contract, tort (including negligence) or otherwise, regardless of whether the relevant loss was
foreseeable, or any Party was advised of the possibility of such loss or damage or that such loss was in the contemplation of any other Party. 
  

	7.	 Section 17 of the Custody Agreement is replaced with the following: 

17. INFORMATION AND DATA PROTECTION 

Responsibilities of each party relating to the privacy and confidentiality of information are set forth in the Confidentiality and Data Privacy
Conditions specified in that Annex to this Agreement attached hereto, and the parties agree to the terms specified in that Annex 
  

	8.	 Section 21(E) of the Custody Agreement is replaced with the following: 

 

	 	“(E)	 Further Information. The Client agrees to provide to the Custodian and execute further documents
and other information as reasonably requested by the Custodian in relation to its performance of services under this Agreement and its duties and obligations under this Agreement in order to assist the Custodian with the requirements of a court,
regulator or other legal authority in regard to an applicable market, including providing the identities of the beneficial owners of any Securities or Cash and providing any powers of attorney or similar authority or terms and conditions in regard
to any Cash Account opened with any subcustodian in the name of the Client or any of its customers to enable or facilitate the opening or operation of such Cash Account on behalf of the Client for the purpose of this Agreement.”

  
 

 

 

 
  

	9.	 For the sake of clarity, the Client and the Custodian each hereby makes the representations and warranties
required by such party contained in Section 9 of the Custody Agreement (and as modified herein) as of the date of this Agreement and as if such representations and warranties were applicable to it. 

 

	10.	 This Agreement and the rights and obligations of the parties hereunder shall be governed by and construed in
accordance with the internal laws (and not the law of conflicts) of the jurisdiction in which the Custodian is located and performs its services or obligations under the terms of the Custody Agreement. The courts of the jurisdiction in which the
Custodian is located and performs its obligations under the Custody Agreement (including any appropriate sub-jurisdiction) shall have non-exclusive jurisdiction to hear
any disputes arising out of or in connection with this Agreement, and the parties irrevocably commit to the jurisdiction of such courts. 

  

	11.	 This Agreement and the Custody Agreement constitute the entire agreement among the parties with respect to the
subject matter hereof and thereof and supersede all other prior agreements and understandings, both written and oral, among the parties or any of them with respect to the subject matter hereof and of the Custody Agreement. 

 

	12.	 In the event the Custody Agreement is terminated between the Custodian and an Original Client or any Separate
Client, the Custody Agreement as in effect between the Custodian and the Client shall continue in full force and effect unless and until either party hereto terminates such agreement in accordance with the terms therein. As between the Custodian and
each Original Client or any Separate Client, nothing in this Agreement shall alter or affect the Custody Agreement between the Custodian and the Original Client or any Separate Client. 

 

	13.	 This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of
which shall constitute one and the same agreement. 

 IN WITNESS WHEREOF, each of the undersigned has caused its duly authorized
officer to execute and deliver this Agreement as of the date first written above. 
  

			
	CITIBANK, N.A.	 	SCP PRIVATE CREDIT INCOME BDC LLC
		
	By:                                     
                                         
   	 	By:                                     
                                         
   
		
	Name:                                     
                                         
   	 	Name:                                     
                                         
   
		
	Title:                                     
                                         
   	 	Title:                                     
                                         
   

 Exhibits, Schedules or Annexes: 
  

	 	•	 	 Confidentiality and Data Privacy Conditions Annex

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