Document:

Exhibit 10.1

 

Execution
Version

 

INVESTMENT
ADVISORY AGREEMENT

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 1.
Duties of the Adviser.

 

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

 

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Form N-2 filed with the U.S. Securities and Exchange Commission (the “SEC”), as supplemented, amended or superseded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

 

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

 

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

 

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

 

     

     

    

 

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

 

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

 

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

 

(iii) perform
due diligence on prospective portfolio companies;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 2.
Expenses Payable by the Company.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

		(vi)	transfer agent and custodial fees;

 

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

 

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

 

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

 

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

 

		(xi)	brokerage commissions and markups;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 3.
Compensation of the Adviser.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 4.
Covenant of the Adviser.

 

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

 

Section 5.
Brokerage Commissions.

 

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

 

Section 6.
Proxy Voting. 

 

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

 

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Section 7.
Other Activities of the Adviser.

 

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

 

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

 

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

 

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

 

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

 

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Section 10.
Effectiveness, Duration and Termination of Agreement.

 

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

 

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

 

Section 11.
Notices.

 

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

 

Section 12.
Amendments.

 

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

 

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Section 13.
Severability.

 

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

 

Section 14.
Counterparts.

 

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

 

Section 15.
Governing Law.

 

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

 

Section 16.
Third Party Beneficiaries.

 

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

 

Section 17.
Entire Agreement.

 

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

 

(signature page follows)

 

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

 

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

 

[Signature Page
to Investment Advisory Agreement]Exhibit 10.4

 

EXECUTION
VERSION

 

 

 

CUSTODY AGREEMENT

 

 

 

dated as of December 17, 2019

by and between 

 

PALMER SQUARE CAPITAL
BDC INC.

(“Company”)

 

and

 

U.S. BANK NATIONAL ASSOCIATION

(“Custodian” and “Document
Custodian”)

 

     

     

    

 

TABLE OF CONTENTS

 

		 	Page
	1.	DEFINITIONS	1
	2.	APPOINTMENT OF CUSTODIAN	7
	3.	DUTIES OF CUSTODIAN	8
	3A.	DUTIES OF DOCUMENT CUSTODIAN	17
	4.	REPORTING	18
	5.	DEPOSIT IN U.S. SECURITIES SYSTEMS	19
	6.	SECURITIES HELD OUTSIDE OF THE UNITED STATES	19
	7.	CERTAIN GENERAL TERMS	22
	8.	COMPENSATION OF CUSTODIAN	24
	9.	RESPONSIBILITY OF CUSTODIAN	25
	10.	SECURITY CODES	29
	11.	TAX LAW	29
	12.	EFFECTIVE PERIOD AND TERMINATION	29
	13.	REPRESENTATIONS AND WARRANTIES	30
	14.	PARTIES IN INTEREST; NO THIRD PARTY BENEFIT	31
	15.	NOTICES	31
	16.	PROPRIETARY AND CONFIDENTIAL INFORMATION	32
	17.	CHOICE OF LAW AND JURISDICTION	33
	18.	ENTIRE AGREEMENT; COUNTERPARTS	34
	19.	AMENDMENT; WAIVER	34
	20.	SUCCESSOR AND ASSIGNS	34
	21.	SEVERABILITY	35
	22.	REQUEST FOR INSTRUCTIONS	35
	23.	OTHER BUSINESS	35
	24.	REPRODUCTION OF DOCUMENTS	35
	25.	MISCELLANEOUS	36
	 	 	 
	SCHEDULES	 
	 	SCHEDULE A – Trade Confirmation	 
	 	SCHEDULE B – Initial Authorized Persons	 

 

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THIS CUSTODY AGREEMENT (this “Agreement”)
is dated as of December 17, 2019 and is by and between PALMER SQUARE CAPITAL bdc inc.
(and any successor or permitted assign), a Maryland corporation (the “Company”), and U.S. BANK NATIONAL ASSOCIATION
(or any successor or permitted assign acting hereunder), a national banking association, as custodian (in such capacity, along
with any successor or permitted assign acting as custodian hereunder, the “Custodian”) and as document custodian
(in such capacity, along with any successor or permitted assign acting as custodian hereunder, the “Document Custodian”).

 

 

RECITALS

 

WHEREAS, the Company is a closed-end management
investment company, which intends to elect to be treated as a business development company under the Investment Company Act of
1940, as amended (the “1940 Act”);

 

WHEREAS, the Company desires to retain U.S.
Bank National Association to act as custodian and as document custodian for the Company and each Subsidiary hereafter identified
to the Custodian and the Document Custodian;

 

WHEREAS, the Company desires that certain
of the Company’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;

 

WHEREAS, the Company desires that certain
of the Company’s Loan Files (as defined below) be held by the Document Custodian pursuant to this Agreement; and

 

NOW THEREFORE, in consideration of the mutual
covenants and agreements contained herein, the parties hereto agree as follows:

 

		1.	DEFINITIONS

 

		1.1	Defined Terms. In addition to terms expressly defined elsewhere herein, the following words shall have the following
meanings as used in this Agreement:

 

“Account” or “Accounts”
means the Cash Account, the Securities Account, any Subsidiary Cash Account and any Subsidiary Securities Account, collectively.

 

“Agreement” means this Custody
Agreement (as the same may be amended from time to time in accordance with the terms hereof).

 

“Authorized Person” has the meaning
set forth in Section 7.4.

 

“Business Day” means a day on which
each of (i) the Company, and (ii) the Custodian or the relevant sub-custodian, including a Foreign Sub-custodian, are open for
business in the market or country in which a transaction is to take place.

 

     

     

    

 

“Cash Account” or “Cash
Accounts” means the accounts to be established at the Custodian to which the Custodian shall deposit and hold any cash
Proceeds received by it from time to time from or with respect to the Securities or the sale of the common stock of the Company,
as applicable, which accounts shall be designated the “Palmer Square Capital BDC Inc. Cash Interest Proceeds Account”
and the “Palmer Square Capital BDC Inc. Cash Principal Proceeds Account.”

 

“Confidential Information” means
any databases, computer programs, screen formats, screen designs, report formats, interactive design techniques, and other similar
or related information that may be furnished to the Company by the Custodian from time to time pursuant to this Agreement.

 

“Custodian” has the meaning set
forth in the first paragraph of this Agreement.

 

“Document Custodian” means the
Custodian when acting in the role of a document custodian hereunder.

 

“Eligible Investment” means any
investment that at the time of its acquisition is one or more of the following:

 

(a) United
States government and agency obligations;

 

(b) commercial
paper having a rating assigned to such commercial paper by Standard & Poor’s Rating Services or Moody’s Investor
Service, Inc. (or, if neither such organization shall rate such commercial paper at such time, by any nationally recognized
rating organization in the United States of America) equal to one of the two highest ratings assigned by such organization, it
being understood that as of the date hereof such ratings by Standard & Poor’s Rating Services are “A1+”
and “A1” and such ratings by Moody’s Investor Service, Inc. are “P1” and “P2”;

 

(c) interest
bearing deposits in United States dollars in United States banks with an unrestricted surplus of at least U.S. $250,000,000, maturing
within one year; and

 

(d) money
market funds (including funds of the bank serving as Custodian or its affiliates) or United States government securities funds
designed to maintain a fixed share price and high liquidity.

 

“Eligible Securities
Depository” has the meaning set forth in Section (b)(1) of Rule 17f-7 under the 1940 Act.

 

“Federal Reserve
Bank Book-Entry System” means a depository and securities transfer system operated by the Federal Reserve Bank of the
United States on which are eligible to be held all United States Government direct obligation bills, notes and bonds.

 

“Financing Documents” has the meaning
set forth in Section 3.3(b)(ii).

 

“Foreign Intermediary” means a
Foreign Sub-custodian and Eligible Securities Depository.

 

    2 

     

    

 

“Foreign Sub-custodian” means and
includes (i) any branch of a “U.S. Bank,” as that term is defined in Rule 17f-5 under the 1940 Act, (ii) any
“Eligible Foreign Custodian,” as that term is defined in Rule 17f-5 under the 1940 Act, having a contract with
the Custodian in accordance with Section 6.6, which the Custodian has determined will provide reasonable care of assets of
the Company based on the standards specified in Section 6.7 below.

 

“Foreign Securities” means Securities
for which the primary market is outside the United States.

 

“Loan” means any U.S. dollar denominated
commercial loan, or participation therein, whether made by a bank or other financial institution and/or made in a direct lending
capacity to the borrower thereunder or otherwise, that by its terms provides for payments of principal and/or interest, including
discount obligations and payment-in-kind obligations, acquired by the Company from time to time.

 

“Loan Assignment Agreement” has
the meaning set forth in Section 3.3(b)(ii).

 

“Loan Checklist” means a list delivered
to the Document Custodian in connection with delivery of each Loan to the Document Custodian by the Company that identifies the
items contained in the related Loan File.

 

“Loan File” means, with respect
to each Loan delivered to the Document Custodian, each of the Required Loan Documents identified on the related Loan Checklist.

 

“Noteless Loan” means a Loan with
respect to which (i) the related loan agreement does not require the obligor to execute and deliver an Underlying Note to evidence
the indebtedness created under such Loan and (ii) no Underlying Notes are outstanding with respect to the portion of the Loan transferred
by the issuer or the prior holder of record.

 

“Participation” means an interest
in a Loan that is acquired indirectly by way of a participation from a lender or other holder thereof.

 

“Person” means any individual,
corporation, partnership, limited liability company, joint venture, association, joint stock company, trust (including any beneficiary
thereof) unincorporated organization, or any government or agency or political subdivision thereof.

 

“Proceeds” means, collectively,
(i) the net cash proceeds to the Company of any offering by the Company of any class of securities issued by the Company (including
any drawdowns in respect of committed capital in connection therewith), (ii) cash distributions, earnings, dividends, fees
and other cash payments paid on the Securities (or, as applicable, Subsidiary Securities) by or on behalf of the issuer or obligor
thereof, or applicable paying agent, (iii) the net cash proceeds of the sale or other disposition of the Securities (or, as
applicable, Subsidiary Securities) pursuant to the terms of this Agreement (and any Reinvestment Earnings from investment of the
foregoing, as defined in Section 3.6(b) hereof) and (iv) the net cash proceeds to the Company of any borrowing or
other financing by the Company.

 

    3 

     

    

 

“Proper Instructions” means instructions
(including Trade Confirmations) received by the Custodian or Document Custodian in form acceptable to it, from the Company, or
any Person duly authorized by the Company in any of the following forms acceptable to the Custodian or Document Custodian:

 

(a) in
writing signed by an Authorized Person (and delivered by hand, by mail, by overnight courier or by telecopier);

 

(b) by
electronic mail from an Authorized Person; or

 

(c) such
other means as may be agreed upon from time to time by the Custodian or Document Custodian and the party giving such instructions,
including oral instructions;

 

provided that, for any transaction
involving cash (e.g., withdrawals, transfers and disbursements) or assets, the Custodian shall confirm that the instruction is
authorized by an Authorized Person by telephone call-back at the telephone number designated in Schedule C. The Authorized Person
confirming the instruction shall be a person other than the Authorized Person from whom the Instruction was received.

 

“Reinvestment Earnings” has the
meaning set forth in Section 3.6.

 

“Request for Release” means a request
for release of any Loan File, which request shall be either (i) delivered to the Document Custodian substantially in the form
of Exhibit A hereto or (ii) as otherwise agreed to between the Document Custodian and the Company.

 

“Required Loan Documents” means,
for each Loan:

 

(a) other
than in the case of a Participation, (i) an executed copy of the Assignment for such Loan, as identified on the Loan Checklist,
or (ii) in the case of a directly originated Loan, such documents as may be identified in the Loan Checklist;

 

(b) with
the exception of Noteless Loans and Participations, the original executed Underlying Note endorsed by the issuer or the prior holder
of record in blank or to the Company, as identified on the Loan Checklist;

 

(c) (i)
if the Company is the sole lender or if the Company or an affiliate of the Company acts as agent for the lenders, (A) an executed
copy of the Underlying Loan Agreement (which may be included in the Underlying Note if so indicated in the Loan Checklist), together
with a copy of all amendments and modifications thereto, as identified on the Loan Checklist, (B) a copy of each related security
agreement (if any) signed by the applicable obligor(s), as identified on the Loan Checklist, and (C) a copy of each related guarantee
(if any) then executed in connection with such Loan, as identified on the Loan Checklist, and (ii) in all other cases, such copies
of the documents described in clauses (A), (B) and (C), which may not be executed copies, as are reasonably available to the Company,
as identified on the Loan Checklist; and

 

    4 

     

    

 

(d)  a
copy of the Loan Checklist.

 

“Securities” means, collectively,
the (i) investments, including Loans, acquired by the Company and delivered to the Custodian or Document Custodian by the Company
from time to time during the term of, and pursuant to the terms of, this Agreement and (ii) all dividends in kind (e.g., non-cash
dividends) from the investments described in clause (i). For avoidance of doubt, the term “securities” includes stocks,
shares, bonds, debentures, notes, or other obligations and any certificates, receipts, warrants or other instruments representing
rights to receive, purchase, or subscribe for the same, or evidencing or representing any other rights or interests therein, or
in any property or assets.

 

“Securities Account” means the
segregated account to be established within the corporate trust department at the Custodian to which the Custodian shall deposit
or credit and hold the Securities (other than Loans) received by it pursuant to this Agreement, which account shall be designated
the “Palmer Square Capital BDC Inc. Securities Custody Account”.

 

“Securities Depository” means The
Depository Trust Company and any other clearing agency registered with the Securities and Exchange Commission under Section 17A
of 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.

 

“Securities System” means the Federal
Reserve Book-Entry System, a clearing agency which acts as a Securities Depository, or another book entry system for the central
handling of securities (including an Eligible Securities Depository).

 

“Street Delivery Custom” means
a custom of the United States securities market to deliver securities which are being sold to the buying broker for examination
to determine that the securities are in proper form.

 

“Street Name” means the form of
registration in which the securities are held by a broker who is delivering the securities to another broker for the purposes of
sale, it being an accepted custom in the United States securities industry that a security in Street Name is in proper form for
delivery to a buyer and that a security may be re-registered by a buyer in the ordinary course.

“Subsidiary” means, collectively, any wholly owned subsidiary of the Company identified to the Custodian by
the Company pursuant to Section 3.13(c).

 

“Subsidiary Cash Account” shall
have the meaning set forth in Section 3.13(b).

 

    5 

     

    

 

“Subsidiary Securities” collectively,
the (i) investments, including Loans, acquired by a Subsidiary and delivered to the Custodian from time to time during the term
of, and pursuant to the terms of, this Agreement and (ii) all dividends in kind (e.g., non-cash dividends) from the investments
described in clause (i).

 

“Subsidiary Securities Account”
shall have the meaning set forth in Section 3.13(a).

 

“Trade Confirmation” means a confirmation
to the Custodian from the Company of the Company’s acquisition of a Loan, and setting forth applicable information with respect
to such Loan, which confirmation may be in the form of Schedule A attached hereto and made a part hereof, subject to such
changes or additions as may be agreed to by, or in such other form as may be agreed to by, the Custodian (and/or the Document Custodian)
and the Company from time to time.

 

“UCC” shall have the meaning set
forth in Section 3.3(b)(ii).

 

“Underlying Loan Agreement” means,
with respect to any Loan, the document or documents evidencing the commercial loan agreement or facility pursuant to which such
Loan is made.

 

“Underlying Loan Documents” means,
with respect to any Loan, the related Underlying Loan Agreement together with any agreements and instruments (including any Underlying
Note) executed or delivered in connection therewith.

 

“Underlying Note” means the one
or more promissory notes executed by an obligor to evidence a Loan.

 

		1.2	Construction. In this Agreement unless the contrary intention appears:

 

		(a)	any reference to this Agreement or another agreement or instrument refers to such agreement or instrument as the same may be
amended, modified or otherwise rewritten from time to time;

 

		(b)	a reference to a statute, ordinance, code or other law includes regulations and other instruments under it and consolidations,
amendments, re-enactments or replacements of any of them;

 

		(c)	any term defined in the singular form may be used in, and shall include, the plural with the same meaning, and vice versa;

 

		(d)	a reference to a Person includes a reference to the Person’s executors, successors and permitted assigns;

 

		(e)	an agreement, representation or warranty in favor of two or more Persons is for the benefit of them jointly and severally;

 

    6 

     

    

 

		(f)	an agreement, representation or warranty on the part of two or more Persons binds them jointly and severally;

 

		(g)	a reference to the term “including” means “including, without limitation,” and

 

		(h)	a reference to any accounting term is to be interpreted in accordance with generally accepted principles and practices in the
United States, consistently applied, unless otherwise instructed by the Company.

 

		1.3	Headings. Headings are inserted for convenience and do not affect the interpretation of this Agreement.

 

		2.	APPOINTMENT OF CUSTODIAN

 

		2.1	Appointment and Acceptance.

 

		(a)	The Company hereby appoints the Custodian as custodian of certain Securities and cash owned by the Company and the Subsidiaries
(as applicable) and delivered to the Custodian from time to time during the period of this Agreement, on the terms and conditions
set forth in this Agreement (which shall include any addendum hereto which is hereby incorporated herein and made a part of this
Agreement), and the Custodian hereby accepts such appointment and agrees to perform the services and duties set forth in this Agreement
with respect to it subject to and in accordance with the provisions hereof.

 

		(b)	The Company hereby appoints the Document Custodian as custodian to hold the Loan Files and Required Loan Documents owned by
the Company and the Subsidiaries (as applicable) and delivered to the Document Custodian from time to time during the period of
this Agreement on the terms and conditions set forth in this Agreement (which shall include any addendum hereto which is hereby
incorporated herein and made a part of this Agreement), and the Document Custodian hereby accepts such appointment and agrees to
perform the services and duties set forth in this Agreement with respect to it and subject to and in accordance with the provisions
hereof.

 

		2.2	Instructions. The Company agrees that it shall from time to time provide, or cause to be provided, to the Custodian
or Document Custodian all necessary instructions and information, and shall respond promptly to all inquiries and requests of the
Custodian or Document Custodian, as may reasonably be necessary to enable the Custodian or Document Custodian to perform its duties
hereunder.

 

    7 

     

    

 

		2.3	Company Responsible For Directions. The Company is solely responsible for directing the Custodian with respect to deposits
to, withdrawals from and transfers to or from the Account. Without limiting the generality of the foregoing, except for the performance
of its obligations explicitly set forth herein, the Custodian has no responsibility for the Company’s compliance with the
Company’s obligations under the 1940 Act, any restrictions, covenants, limitations or obligations to which the Company may
be subject or for which it may have obligations to third-parties in respect of the Account, and the Custodian shall have no liability
for the application of any funds made in accordance with Proper Instructions of the Company. The Company shall be solely responsible
for properly instructing all applicable payors to make all appropriate payments to the Custodian for deposit to the Account, and
for properly instructing the Custodian with respect to the allocation or application of all such deposits.

 

		3.	DUTIES OF CUSTODIAN

 

		3.1	Segregation. All Securities and non-cash property held by the Custodian, as applicable, for the account of the Company
(other than Securities maintained in a Securities Depository or Securities System) shall be physically segregated from other Securities
and non-cash property in the possession of the Custodian and shall be identified as subject to this Agreement.

 

		3.2	Accounts.

 

		(a)	The Custodian shall open and maintain in its corporate trust department the Cash Account to which the Custodian shall deposit
or credit and hold any cash or Proceeds received by it from time to time on behalf of the Company whether from or with respect
to the Securities or the sale of the interest of the Company, pursuant to a drawdown in respect of committed capital to the Company,
or otherwise, as applicable.

 

		(b)	The Custodian shall open and maintain in its corporate trust department the Securities Account in the name of the Company,
subject only to order of the Custodian, in which the Custodian shall enter and carry, subject to Section 3.6(b), all Securities
(other than Loans) and other assets of the Company which are delivered to it in accordance with this Agreement. For avoidance of
doubt, the Custodian shall not be required to credit or deposit Loans in the Securities Account but shall instead maintain a register
(in book-entry form or in such other form as it shall deem necessary or desirable) of such Loans, containing such information as
the Company and the Custodian may reasonably agree; provided that, with respect to such Loans, all Required Loan Documents shall
be held in safekeeping by the Document Custodian, individually segregated from the securities and investments of any other Person
and marked so as to clearly identify them as the property of the Company in a manner consistent with Rule 17f-1 under the 1940
Act and as set forth in 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 direction of the
Company under terms of the Agreement.

 

    8 

     

    

 

		3.3	Delivery of Cash and Securities to Custodian.

 

		(a)	The Company shall deliver, or cause to be delivered, to the Custodian certain of the Company’s Securities, cash and other
investment assets, including (i) payments of income, payments of principal and capital distributions received by the Company with
respect to such Securities, cash or other assets owned by the Company at any time during the period of this Agreement, and (ii)
cash received by the Company for the issuance, at any time during such period, of securities or in connection with a borrowing
by the Company. With respect to Loans, Required Loan Documents and other Underlying Loan Documents shall be delivered to the Document
Custodian and at the address identified in Section 15(c). With respect to assets other than Loans, such assets shall be delivered
to the Custodian in its role as, and (where relevant) at the address identified for, the Custodian.  Except to the extent
otherwise expressly provided herein, delivery of Securities to the Custodian shall be in Street Name or other good delivery form.
The Custodian shall not be responsible for such Securities, cash or other assets until actually delivered to, and received by it.
With respect to Securities (other than Loan Assets and assets in the nature of “general intangibles” (as hereinafter
defined)) held by the Custodian in its capacity as a “securities intermediary” (as defined in Section 8-102 of the
Uniform Commercial Code as in effect in the State of New York (the “UCC”)), the Custodian shall be obligated to exercise
due care in accordance with reasonable commercial standards in discharging its duties as a securities intermediary to hold such
Securities.

 

		(b)	(i)In connection with its acquisition of a Loan or other delivery of a Security constituting a Loan, the Company shall
deliver or cause to be delivered to the Custodian a properly completed Trade Confirmation containing such information in respect
of such Loan as the Custodian may reasonably require in order to enable the Custodian to perform its duties hereunder in respect
of such Loan on which the Custodian may conclusively rely without further inquiry or investigation, in such form and format as
the Custodian reasonably may require.

(ii)Notwithstanding anything herein to the contrary, delivery of Loans acquired by the Company (or, if applicable, a Subsidiary
thereof) which constitute Noteless Loans or Participations or which are otherwise not evidenced by a “security” or
“instrument” as defined in Section 8-102 and Section 9-102(a)(47) of the UCC, respectively, shall be made by delivery
to the Document Custodian of (i) in the case of a Noteless Loan, a copy of the loan register with respect to such Noteless Loan
evidencing registration of such Loan on the books and records of the applicable obligor or bank agent to the name of the Company
or, if applicable, a Subsidiary thereof (or, in either case, its nominee) or a copy (which may be an electronic .pdf copy) of an
assignment agreement in favor of the Company (or, if applicable, a Subsidiary) as assignee, and (ii) in the case of a Participation,
a copy of the related participation agreement. Any duty on the part of the Custodian with respect to the custody of such Loans
shall be limited to the exercise of reasonable care by the Custodian in the physical custody of any such documents delivered to
it, and any related instrument, security, credit agreement, assignment agreement and/or other agreements or documents, if any (collectively,
“Financing Documents”), that may be delivered to it. Nothing herein shall require the Custodian to credit to
the Securities Account or to treat as a financial asset (within the meaning of Section 8-102(a)(9) of the UCC) any such Loan or
other asset in the nature of a general intangible (as defined in Section 9-102(a)(42) of the UCC) or to “maintain”
a sufficient quantity thereof.

 

    9 

     

    

 

(iii) The
Custodian may assume the genuineness of any such Financing Document it may receive and the genuineness and due authority of any
signatures appearing thereon, and shall be entitled to assume that each such Financing Document it may receive is what it purports
to be. If an original “security” or “instrument” as defined in Section 8-102 and Section 9-102(a)(47) of
the UCC, respectively, is or shall be or becomes available with respect to any Loan to be held by the Custodian under this Agreement,
it shall be the sole responsibility of the Company to make or cause delivery thereof to the Document Custodian, and the Custodian
shall not be under any obligation at any time to determine whether any such original security or instrument has been or is required
to be issued or made available in respect of any Loan or to compel or cause delivery thereof to the Custodian.

 

(iv) Contemporaneously
with the acquisition of any Loan, the Company shall (1) cause any appropriate Financing Documents evidencing such Loan to be delivered
to the Custodian; (2) if requested by the Custodian, provide to the Custodian an amortization schedule of principal payments and
a schedule of the interest payable date(s) identifying the amount and due dates of all scheduled principal and interest payments
for such Loan, (3) provide to the Custodian a properly completed Trade Confirmation containing such information in respect of such
Loan as the Custodian may reasonably require in order to enable the Custodian to perform its duties hereunder in respect of such
Loan on which the Custodian may conclusively rely without further inquiry or investigation, in such form and format as the Custodian
reasonably may require; (4) take all actions reasonably necessary for the Company to acquire good title to such Loan; and (5) take
all actions as may be reasonably necessary (including appropriate payment notices and instructions to bank agents or other applicable
paying agents) to cause (A) all payments in respect of the Loan to be made to the Custodian and (B) all notices, solicitations
and other communications in respect of such Loan to be directed to the Company. The Custodian shall have no liability for any delay
or failure on the part of the Company to provide necessary information to the Custodian, or for any inaccuracy therein or incompleteness
thereof, or for any delay or failure on the part of the Company to give such effective payment instruction to bank agents and other
paying agents, in respect of the Loans. With respect to each such Loan, the Custodian shall be entitled to rely on any information
and notices it may receive from time to time from the related bank agent, obligor or similar party with respect to the related
Loan, or from the Company, and shall be entitled to update its records (as it may deem necessary or appropriate) on the basis of
such information or notices received, without any obligation on its part independently to verify, investigate or recalculate such
information.

 

    10 

     

    

 

		3.4	Release of Securities.

 

		(a)	The Custodian or the Document Custodian, as applicable, shall release and ship for delivery, or direct its agents or sub-custodian
to release and ship for delivery, as the case may be, Securities or Required Loan Documents (or other Underlying Loan Documents)
of the Company held by the Custodian, its agents or its sub-custodian from time to time upon receipt of Proper Instructions (which
shall, among other things, specify the Securities or Required Loan Documents (or other Underlying Loan Documents) to be released,
with such delivery and other information as may be necessary to enable the Custodian or Document Custodian to perform), which may
be standing instructions (in form acceptable to the Custodian) in the following cases:

 

		(i)	upon sale of such Securities by or on behalf of the Company, and such sale may, unless and except to the extent otherwise directed
by Proper Instructions, be carried out by the Custodian or the Document Custodian, as applicable:

 

		(A)	in accordance with the customary or established practices and procedures in the jurisdiction or market where the transactions
occur, including, if applicable and appropriate, delivery to the purchaser thereof or to a dealer therefor (or an agent of such
purchaser or dealer) against expectation of receiving later payment; or

 

		(B)	in the case of a sale effected through a Securities System, in accordance with the rules governing the operations of the
Securities System;

 

		(ii)	upon the receipt of payment in connection with any repurchase agreement related to such Securities;

 

		(iii)	to a depositary agent in connection with tender or other similar offers for Securities;

 

		(iv)	to the issuer thereof or its agent when such Securities are called, redeemed, retired or otherwise become payable (unless otherwise
directed by Proper Instructions, the cash or other consideration is to be delivered to the Custodian, its agents or its sub-custodian);

 

		(v)	to an issuer thereof, or its agent, for transfer into the name of the Custodian or of any nominee of the Custodian or into
the name of any of its agents or sub-custodian or their nominees or for exchange for a different number of bonds, certificates
or other evidence representing the same aggregate face amount or number of units;

 

    11 

     

    

 

		(vi)	to brokers, clearing banks or other clearing agents for examination in accordance with the Street Delivery Custom;

 

		(vii)	for exchange or conversion pursuant to any plan of merger, consolidation, recapitalization, reorganization or readjustment
of the Securities of the issuer of such Securities, or pursuant to any deposit agreement (unless otherwise directed by Proper Instructions,
the new securities and cash, if any, are to be delivered to the Custodian, the Document Custodian, their agents or sub-custodian);

 

		(viii)	in the case of warrants, rights or similar securities, the surrender thereof in the exercise of such warrants, rights or similar
securities or the surrender of interim receipts or temporary securities for definitive securities (unless otherwise directed by
Proper Instructions, the new securities and cash, if any, are to be delivered to the Custodian, the Document Custodian, their agents
or sub-custodian); and/or

 

		(ix)	for any other purpose, but only upon receipt of Proper Instructions stating (i) the specified securities to be delivered, (ii)
the purpose for such delivery, (iii) that such purpose is a proper corporate purpose and (iv) naming the person or persons to whom
delivery of such securities shall be made and attaching a certified copy of a resolution of the board of directors of the Company
or an authorized committee thereof approving the delivery of such Proper Instructions.

 

		3.5	Registration of Securities. Securities held by the Custodian, its agents or its sub-custodian (other than bearer securities,
securities held in a Securities System or Securities that are Noteless Loans or Participations) shall be registered in the name
of the Company or its nominee; or, at the option of the Custodian (if the Custodian determines it cannot hold such security in
the name of the Company), 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 Company 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 Company under the
terms of this Agreement unless such Securities are in Street Name or other good deliverable form.

 

		3.6	Bank Accounts, and Management of Cash.

 

		(a)	Proceeds from the Securities and other cash received by the Custodian from time to time shall be credited to the Cash Account.
All amounts credited to the Cash Account shall be subject to clearance and receipt of final payment by the Custodian. Securities
may also be delivered and held in the Cash Account by the Custodian.

 

    12 

     

    

 

		(b)	Amounts held in the respective Cash Account from time to time may be invested in Eligible Investments pursuant to specific
written Proper Instructions (which may be standing instructions) received by the Custodian from an Authorized Person acting on
behalf of the Company. Such investments shall be subject to availability and the Custodian’s then applicable transaction
charges (which shall be at the Company’s expense). The Custodian shall have no liability for any loss incurred on any such
investment. Absent receipt of such written instruction from the Company, the Custodian shall have no obligation to invest (or otherwise
pay interest on) amounts on deposit in the Cash Account. In no instance will the Custodian have any obligation to provide investment
advice to the Company. Any earnings from such investment of amounts held in the Cash Account from time to time (collectively, “Reinvestment
Earnings”) shall be redeposited in the Cash Account (and may be reinvested at the written direction of the Company).

 

		(c)	In the event that the Company shall at any time by Proper Instructions instruct the Custodian to liquidate any Eligible Investment
in connection with a withdrawal of amounts from the Cash Accounts, the Custodian shall be entitled to liquidate such Eligible Investment,
and shall have no liability for any loss incurred as a result of the liquidation of any such Eligible Investment credited to such
Cash Account as needed to provide necessary liquidity. Such instructions may be in the form of standing instructions (in the form
of Proper Instructions acceptable to the Custodian).

 

		(d)	The Company acknowledges that cash deposited or invested with any bank (including the bank acting as Custodian) may make a
margin or generate banking income for which such bank shall not be required to account to the Company.

 

		(e)	The Custodian shall be authorized to open such additional accounts as may be necessary or convenient for administration of
its duties hereunder, with notice to be provided to the Company.

 

		3.7	Foreign Exchange.

 

		(a)	Upon the receipt of Proper Instructions, the Custodian, its agents or its sub-custodian may (but shall not be obligated to)
enter into all types of contracts for foreign exchange on behalf of the Company, upon terms acceptable to the Custodian and the
Company (in each case at the Company’s expense), including transactions entered into with the Custodian, its sub-custodian
or any affiliates of the Custodian or the sub-custodian. The Custodian shall have no liability for any losses incurred in or resulting
from the rates obtained in such foreign exchange transactions; and absent specific and acceptable Proper Instructions, the Custodian
shall not be deemed to have any duty to carry out any foreign exchange on behalf of the Company. The Custodian shall be entitled
at all times to comply with any legal or regulatory requirements applicable to currency or foreign exchange transactions.

 

		(b)	The Company acknowledges that the Custodian, any sub-custodian or any affiliates of the Custodian or any sub-custodian, involved
in any such foreign exchange transactions may make a margin or generate banking income from foreign exchange transactions entered
into pursuant to this section for which they shall not be required to account to the Company.

 

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		3.8	Collection of Income. The Custodian, its agents or its sub-custodian shall use reasonable efforts to collect on a timely
basis all income and other payments with respect to the Securities held hereunder to which the Company shall be entitled, to the
extent consistent with usual custom in the securities custodian business in the United States. Such efforts shall include collection
of interest income, dividends and other payments with respect to registered domestic securities if on the record date with respect
to the date of payment by the issuer the Security is registered in the name of the Custodian or its nominee (or in the name of
its agent or sub-custodian, or their nominee); and interest income, dividends and other payments with respect to bearer domestic
securities if, on the date of payment by the issuer such securities are held by the Custodian or its sub-custodian or agent; provided,
however, that in the case of Securities held in Street Name, the Custodian shall use commercially reasonable efforts only to timely
collect income. In no event shall the Custodian’s agreement herein to collect income be construed to obligate the Custodian
to commence, undertake or prosecute any legal proceedings.

 

		3.9	Payment of Moneys.

 

		(a)	Upon receipt of Proper Instructions, which may be standing instructions, the Custodian shall pay out from the respective Cash
Account designated by the Company (or remit to its agents or its sub-custodian, and direct them to pay out) moneys of the Company
on deposit therein in the following cases:

 

		(i)	upon the purchase of Securities for the Company pursuant to such Proper Instruction; and such purchase may, unless and except
to the extent otherwise directed by Proper Instructions, be carried out by the Custodian:

 

		(A)	in accordance with the customary or established practices and procedures in the jurisdiction or market where the transactions
occur, including, if applicable and appropriate, delivering money to the seller thereof or to a dealer therefor (or any agent for
such seller or dealer) against expectation of receiving later delivery of such securities; or

 

		(B)	in the case of a purchase effected through a Securities System, in accordance with the rules governing the operation of
such Securities System;

 

		(ii)	for the purchase or sale of foreign exchange or foreign exchange agreements for the accounts of the Company, including transactions
executed with or through the Custodian, its agents or its sub-custodian, as contemplated by Section 3.7 above; and

 

		(iii)	for any other purpose (including without limitation expense payments) directed by the Company, but only upon receipt of Proper
Instructions specifying the amount of such payment, and naming the Person or Persons to whom such payment is to be made.

 

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		(b)	At any time or times, the Custodian shall be entitled to pay (i) itself and the Document Custodian from the Cash Account,
whether or not in receipt of express direction or instruction from the Company, any undisputed amounts due and payable to it pursuant
to Section 8 hereof, and (ii) as otherwise permitted by Section 7.5, Section 9.4 or Section 12.5 below, provided,
however, that in each case (x) the Custodian or Document Custodian, as applicable, shall have first invoiced or billed the Company
for such amounts and the Company shall have failed to pay and/or dispute such amounts within thirty (30) days after the date of
such invoice or bill, and (y) all such payments shall be accounted for to the Company.

 

		3.10	Proxies. Without limitation of the Custodian’s obligations under Section 3.11 below, the Custodian will, with
respect to the Securities held hereunder, use reasonable efforts to cause to be promptly executed by the registered holder of such
Securities proxies received by the Custodian from its agents or its sub-custodian or from issuers of the Securities being held
for the Company, without indication of the manner in which such proxies are to be voted, and upon receipt of Proper Instructions
shall promptly deliver to the applicable issuer such proxies, proxy soliciting materials and notices relating to such Securities.
In the absence of such Proper Instructions, or in the event that such Proper Instructions are not received in a timely fashion,
the Custodian shall be under no duty to act with regard to such proxies. Notwithstanding the above, neither Custodian nor any nominee
of Custodian shall vote any of the Securities held hereunder by or for the account of the Company, except in accordance with Proper
Instructions.

 

		3.11	Communications Relating to Securities. The Custodian shall transmit promptly to the Company all written information
(including proxies, proxy soliciting materials, notices, pendency of calls and maturities of Securities and expirations of rights
in connection therewith) received by the Custodian, from its agents or its sub-custodian or from issuers of the Securities being
held for the Company. The Custodian shall have no obligation or duty to exercise any right or power, or otherwise to preserve rights,
in or under any Securities unless and except to the extent it has received timely Proper Instruction from the Company in accordance
with the next sentence. Except to the extent caused by a failure of the Custodian to have satisfied its obligations under the first
sentence of this Section 3.11 with respect to written information concerning such right or power, the Custodian will not be liable
for any untimely exercise of any right or power in connection with Securities at any time held by the Custodian, its agents or
sub-custodian unless:

 

		(i)	the Custodian has received Proper Instructions with regard to the exercise of any such right or power at least three (3) Business
Days prior to the date on which such right or power is to be exercised; and

 

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		(ii)	the Custodian, or its agents or sub-custodian are in actual possession of such Securities.

 

Notwithstanding the foregoing, in the event the Custodian
shall receive Proper Instructions with regard to the exercise of any right or power less than three (3) Business Days prior
to the date on which such right or power is to be exercised, the Custodian shall use reasonable best efforts to exercise such right
or power as promptly as practicable. It will be the responsibility of the Company to notify the Custodian of the Person to whom
such communications must be forwarded under this Section.

 

		3.12	Records. The Custodian shall create and maintain complete and accurate records relating to its activities under this
Agreement with respect to the Securities, cash or other property held for the Company under this Agreement, as required by Section
31 of the 1940 Act, and Rules 31a-1 and 31a-2 thereunder. To the extent that the Custodian, in its sole opinion, is able to do
so, the Custodian shall provide assistance to the Company (at the Company’s reasonable request made from time to time) by
providing sub-certifications regarding certain of its services performed hereunder to the Company in connection with the Company’s
certification requirements pursuant to the Sarbanes-Oxley Act of 2002, as amended. All such records shall be the property of the
Company and shall at all times during the regular business hours of the Custodian be open for inspection by duly authorized officers,
employees or agents of the Company (including its independent public accountants) and employees and agents of the Securities and
Exchange Commission, upon reasonable request and at least five Business Days’ prior written notice and at the Company’s
expense. The Custodian shall, at the Company’s request, supply the Company with a tabulation of Securities owned by the Company
and held by the Custodian and shall, when requested to do so by the Company and for such compensation as shall be agreed upon between
the Company and the Custodian, include, to the extent applicable, the certificate numbers in such tabulations, to the extent such
information is available to the Custodian.

 

		3.13	Custody of Subsidiary Securities.

 

		(a)	With respect to each Subsidiary identified to the Custodian by the Company, there shall be established at the Custodian a segregated
account to which the Custodian shall deposit and hold any Subsidiary Securities (other than Loans) received by it (and any Proceeds
received by it in the form of dividends in kind) pursuant to this Agreement, which account shall be designated the “[INSERT
NAME OF SUBSIDIARY] Securities Account” (the “Subsidiary Securities Account”); provided that, with respect
to any Subsidiary Securities constituting Loans, the Company shall deliver all Required Loan Documents related to such Loans to
be held in safekeeping by the Document Custodian, individually segregated from the securities and investments of any other Person
and marked so as to clearly identify them as the property of the Subsidiary as set forth in this Agreement.

 

		(b)	With respect to each Subsidiary identified to the Custodian by the Company, there shall be established at the Custodian a segregated
account to which the Custodian shall deposit and hold any cash Proceeds received by it from time to time from or with respect to
Subsidiary Securities or other Proceeds, which account shall be designated the “[INSERT NAME OF SUBSIDIARY] Cash Proceeds
Account” (the “Subsidiary Cash Account”).

 

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		(c)	To the maximum extent possible, the provisions of this Agreement regarding Securities of the Company, the Securities Account
and the Cash Account shall be applicable to any Subsidiary Securities, cash and other investment assets, Subsidiary Securities
Account and Subsidiary Cash Account, respectively. The parties hereto agree that the Company shall notify the Custodian in writing
as to the establishment of any Subsidiary as to which the Custodian is to serve as custodian pursuant to the terms of this Agreement,
and identify in writing any accounts the Custodian shall be required to establish for such Subsidiary as herein provided.

 

		3.14	Responsibility for Property Held by Sub-custodians. The Custodian’s responsibility with respect to the selection
or appointment of a sub-custodian shall be limited to a duty to exercise reasonable care in the selection or retention of such
sub-custodian in light of prevailing settlement and securities handling practices, procedures and controls in the relevant market.
With respect to any costs, expenses, damages, liabilities, or claims (including attorneys’ and accountants’ fees) incurred
as a result of the acts or the failure to act by any sub-custodian, the Custodian shall take reasonable action to recover such
costs, expenses, damages, liabilities, or claims from such sub-custodian; provided that the Custodian’s sole liability in
that regard shall be limited to amounts actually received by it from such sub-custodian (exclusive of related costs and expenses
incurred by the Custodian).

 

		3A.	DUTIES OF DOCUMENT CUSTODIAN

 

		(a)	With respect to Loans, Required Loan Documents and other Underlying Loan Documents shall be delivered to the Custodian in its
role as, and at the address identified for, the Document Custodian. All Required Loan Documents shall be held in safekeeping by
the Document Custodian, individually segregated from the securities and investments of any other Person and marked so as to clearly
identify them as the property of the Company.

 

		(b)	In connection with its acquisition of a Loan or other delivery of a Security constituting a Loan, the Company shall deliver
or cause to be delivered to the Document Custodian the Required Loan Documents, including the Loan Checklist.

 

		(c)	The Document Custodian shall release and ship for delivery, or direct its agents or sub-custodian to release and ship for delivery,
as the case may be, Required Loan Documents (or other Underlying Loan Documents) of the Company held by the Document Custodian,
its agents or its sub-custodian from time to time within five (5) Business Days of its receipt of a Request for Release (which
shall, among other things, specify the Required Loan Documents (or other Underlying Loan Documents) to be released, with such delivery
and other information as may be necessary to enable the Document Custodian to perform (including the delivery method). Any request
for release by the Company shall be in the form of the Request for Release. The Company is authorized to transmit and the Document
Custodian is authorized to accept signed email copies of Requests for Release submitted in the form attached hereto as Exhibit
A (or as otherwise agreed between the Document Custodian and the Company.

 

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		(d)	For the avoidance of doubt, the Document Custodian shall have no obligation to review or monitor any Required Loan Documents
or other Underlying Loan Documents but shall only be required to hold those Required Loan Documents or other Underlying Loan Documents
received by it in accordance with this Agreement.

 

		(e)	Notwithstanding anything to the contrary herein, all rights, protections, indemnities and immunities provided in this Agreement
in favor of, and all obligations and responsibilities undertaken by, the Custodian under this Agreement shall also apply to the
Document Custodian, in each case, as applicable in order to give maximum effect to the Document Custodian’s contemplated
responsibilities hereunder.

 

		4.	REPORTING

 

		(a)	The Custodian shall render to the Company 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 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.

 

		(b)	For each Business Day, the Custodian shall render to the Company 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, (ii) a report
of settled and unsettled trades of Securities for such Business Day, (iii) all holdings as of such Business Day, and (iv) any cash
or Securities expected to have been received in the Cash Account and/or Securities Account on such Business Day which were not
received.

 

		(c)	The Custodian shall have no duty or obligation to undertake any market valuation of the Securities under any circumstance.

 

		(d)	The Custodian shall provide the Company, promptly upon request, with such reports as are reasonably available to it and as
the Company may reasonably request from time to time on the internal accounting controls and procedures for safeguarding securities,
which are employed by the Custodian or any Foreign Sub-custodian appointed pursuant to Section 6.1.

 

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		(e)	In accordance with Section 3.12, at the reasonable request of, and at the expense of, the Company, the Custodian agrees to
cooperate with the Company’s independent public accountants and shall provide requested information to the extent such information
is reasonably available to the Custodian.

 

		5.	DEPOSIT IN U.S. SECURITIES SYSTEMS

 

The Custodian may deposit and/or maintain Securities in a Securities
System within the United States in accordance with applicable Federal Reserve Board and Securities and Exchange Commission rules and
regulations, including Rule 17f-4 under the 1940 Act and subject to the following provisions:

 

		(a)	The Custodian may keep domestic Securities in a U.S. Securities System provided that such Securities are represented in an
account of the Custodian in the U.S. Securities System which shall not include any assets of the Custodian other than assets held
by it as a fiduciary, custodian or otherwise for customers;

 

		(b)	The records of the Custodian with respect to Securities which are maintained in a U.S. Securities System shall identify by
book-entry those Securities belonging to the Company;

 

		(c)	If requested by the Company, the Custodian shall provide to the Company copies of all notices received from the U.S. Securities
System of transfers of Securities for the account of the Company; and

 

		(d)	Anything to the contrary in this Agreement notwithstanding, the Custodian shall not be liable to the Company for any direct
loss, damage, cost, expense, liability or claim to the Company resulting from use of any Securities System (other than to the extent
resulting from the gross negligence, misfeasance, fraud or willful misconduct of the Custodian itself, or from failure of the Custodian
to enforce effectively such rights as it may have against the U.S. Securities System) provided however that to the extent it places
and maintains financial assets, corresponding to the Company’s security entitlements, with a Securities Depository, nothing
in this paragraph (d) shall relieve the Custodian from its obligation to exercise due care in accordance with reasonable commercial
standards in discharging its duty as a securities intermediary to obtain and thereafter maintain such financial assets.

 

		6.	SECURITIES HELD OUTSIDE OF THE UNITED STATES

 

		6.1	Appointment of Foreign Sub-custodian. The Company hereby authorizes and instructs the Custodian in its sole discretion
to employ one or more Foreign Sub-custodians to act as Eligible Securities Depositories or as sub-custodian to hold the Securities
and other assets of the Company maintained outside the United States, subject to the Company’s approval in accordance with
this Section. If the Custodian wishes to appoint a Foreign Sub-custodian to hold property of the Company subject to this Agreement,
it will so notify the Company and provide it with information reasonably necessary to determine any such new Foreign Sub-custodian’s
eligibility under Rule 17f-5 under the 1940 Act, including a copy of the proposed agreement with such Foreign Sub-custodian.
The Company shall at the meeting of its board of directors next following receipt of such notice and information give a written
approval or disapproval, in its discretion, of the proposed action.

 

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		6.2	Assets to be Held. The Custodian shall limit the Securities and other assets maintained in the custody of the Foreign
Sub-custodian to: (a) Foreign Securities and (b) cash and cash equivalents in such amounts as the Company (through Proper
Instructions) may determine to be reasonably necessary to effect the Company’s transactions in such investments.

 

		6.3	Omnibus Accounts. The Custodian may hold Foreign Securities and related Proceeds with one or more Foreign Sub-custodians
or Eligible Securities Depositories in each case in a single account with such Foreign Sub-custodian or Securities Depository that
is identified as belonging to the Custodian for the benefit of its customers; provided however, that the records of the Custodian
with respect to Securities and related Proceeds that are property of the Company maintained in such account(s) shall identify
by book-entry those Securities and other property as belonging to the Company.

 

		6.4	Reports Concerning Foreign Sub-custodian. The Custodian will supply to the Company, upon request from time to time,
statements in respect of the Securities held by Foreign Sub-custodians or Eligible Securities Depositories, including an identification
of the Foreign Sub-custodians and Eligible Securities Depositories having physical possession of the Foreign Securities.

 

		6.5	Transactions in Foreign Custody Account. Notwithstanding any provision of this Agreement to the contrary, settlement
and payment for Securities received by a Foreign Intermediary for the account of the Company may be effected in accordance with
the customary established securities trading or securities processing practices and procedures in the jurisdiction or market in
which the transaction occurs, including, if applicable and appropriate, delivering securities to the purchaser thereof or to a
dealer therefor (or an agent for such purchaser or dealer) against a receipt with the expectation of receiving later payment for
such securities from such purchaser or dealer.

 

		6.6	Foreign Sub-custodian. Each contract or agreement pursuant to which the Custodian employs a Foreign Sub-custodian shall
include provisions that provide: (i) for indemnification or insurance arrangements (or any combination of the foregoing) such
that the Company will be adequately protected against the risk of loss of assets held in accordance with such contract; (ii) that
the Company’s assets will not be subject to any right, charge, security interest, lien or claim of any kind in favor of the
Foreign Sub-custodian or its creditors (except a claim of payment for their safe custody or administration) or, in the case of
cash deposits, liens or rights in favor of creditors of the Foreign Sub-custodian arising under bankruptcy, insolvency, or similar
laws; (iii) that beneficial ownership for the Company’s assets will be freely transferable without the payment of money
or value other than for safe custody or administration; (iv) that adequate records will be maintained identifying the assets
as belonging to the Company or as being held by a third party for the benefit of the Company; (v) that the Company’s
independent public accountants will be given access to those records or confirmation of the contents of those records; and (vi) that
the Company will receive periodic reports with respect to the safekeeping of the Company’s assets, including notification
of any transfer to or from a Company’s account or a third party account containing assets held for the benefit of the Company.
Such contract may contain, in lieu of any or all of the provisions specified above, such other provisions that the Custodian determines
in its reasonable discretion will provide, in their entirety, the same or a greater level of care and protection for Company assets
as the specified provisions, in their entirety.

 

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		6.7	Custodian’s Responsibility for Foreign Sub-custodian.

 

		(a)	With respect to its responsibilities under this Section 6, the Custodian agrees to exercise reasonable care, prudence
and diligence such as a person having responsibility for the safekeeping of property of the Company would exercise. The Custodian
further agrees that the Foreign Securities will be subject to reasonable care, based on the standards applicable to the Custodian
in the relevant market, if maintained with each Foreign Sub-custodian, after considering all factors relevant to the safekeeping
of such assets, including: (i) the Foreign Sub-custodian’s practices, procedures, and internal controls, including the
physical protections available for certificated securities (if applicable), the method of keeping custodial records, and the security
and data protection practices; (ii) whether the Foreign Sub-custodian has the requisite financial strength to provide reasonable
care for Company assets; (iii) the Foreign Sub-custodian’s general reputation and standing and, in the case of Eligible
Securities Depository, the Eligible Securities Depository’s operating history and number of participants; and (iv) whether
the Company will have jurisdiction over and be able to enforce judgments against the Foreign Sub-custodian, such as by virtue of
the existence of any offices of the Foreign Sub-custodian in the United States or the Sub-custodian’s consent to service
of process in the United States.

 

		(b)	At the end of each calendar quarter or at such other times as the Company’s board of directors deems reasonable and appropriate
based on the circumstances of the Company’s foreign custody arrangements, the Custodian shall provide written reports notifying
the board of directors of the Company as to the placement of the Foreign Securities and cash of the Company with a particular Foreign
Sub-custodian and of any material changes in the Company’s foreign custody arrangements. The Custodian shall promptly take
such steps as may be required to withdraw assets of the Company from any Foreign Sub-custodian that has ceased to meet the requirements
of Rule 17f-5 under the 1940 Act.

 

		(c)	The Custodian shall establish a system to monitor the appropriateness of maintaining the Company’s assets with a particular
Foreign Sub-custodian and the performance of the contract governing the Company’s arrangements with such Foreign Sub-custodian.
To the extent the Custodian holds Foreign Securities and related Proceeds with one or more Eligible Securities Depositories, the
Custodian shall provide the Company with an analysis of the custody risks associated with maintaining assets with such Eligible
Securities Depository and shall monitor such custody risks on a continuing basis and promptly notify the Company of any material
change in these risks. The Custodian agrees to exercise reasonable care, prudence and diligence in performing its obligations under
this clause (c). If the Custodian determines that a custody arrangement with an Eligible Securities Depository no longer meets
the requirements of this Section, the Company’s Foreign Securities must be withdrawn from such depository as soon as reasonably
practicable.

 

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		(d)	The Custodian’s responsibility with respect to the selection, appointment and/or retention of a Foreign Sub-custodian
shall be limited to a duty to exercise reasonable care in the selection, appointment and retention of such Foreign Intermediaries
in light of prevailing settlement and securities handling practices, procedures and controls in the relevant market. With respect
to any costs, expenses, damages, liabilities, or claims (including attorneys’ and accountants’ fees) incurred as a
result of the acts or the failure to act by any Foreign Sub-custodian, the Custodian shall take reasonable action to recover and,
at the request of the Company, assist the Company in recovering, such costs, expenses, damages, liabilities, or claims from such
Foreign Sub-custodian; provided that to the extent the Custodian has satisfied its duties hereunder, the Custodian’s sole
liability in that regard shall be limited to amounts actually received by it from such Foreign Intermediaries (exclusive of related
costs and expenses incurred by the Custodian). The Custodian shall have no responsibility for any act or omission (or the insolvency
of) any Securities System (including an Eligible Securities Depository). In the event the Company incurs a loss due to the negligence,
willful misconduct, fraud or insolvency of a Securities System (including an Eligible Securities Depository), the Custodian shall
make reasonable endeavors, to seek recovery from the Securities System (including an Eligible Securities Depository).

 

		7.	CERTAIN GENERAL TERMS

 

		7.1	No Duty to Examine Financing Documents. Nothing herein shall obligate the Custodian to review or examine the terms of
any underlying instrument, certificate, credit agreement, indenture, loan agreement, promissory note, or other financing document
evidencing or governing any Security to determine the validity, sufficiency, marketability or enforceability of any Security or
Loan (and shall have no responsibility for the genuineness or completeness thereof), or otherwise.

 

		7.2	Resolution of Discrepancies. In the event of any discrepancy between the information set forth in any report provided
by the Custodian to the Company and any information contained in the books or records of the Company, the Company shall promptly
notify the Custodian thereof and the parties shall cooperate to diligently resolve the discrepancy.

 

		7.3	Improper Instructions. Notwithstanding anything herein to the contrary, the Custodian shall not be obligated to take
any action (or forebear from taking any action), which it reasonably determines to be contrary to the terms of this Agreement or
applicable law. In no instance shall the Custodian be obligated to provide services on any day that is not a Business Day.

 

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		7.4	Proper Instructions.

 

		(a)	The Company will give a notice to the Custodian, in form acceptable to the Custodian, specifying the names and specimen signatures
of persons authorized to give Proper Instructions (collectively, “Authorized Persons” and each is an “Authorized
Person”) which notice shall be signed by an Authorized Person previously certified to the Custodian. The Custodian shall
be entitled to rely upon the identity and authority of such persons until it receives written notice from an Authorized Person
of the Company to the contrary. 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 Company to the Custodian).

 

		(b)	If an Authorized Person elects to give the Custodian email instructions (or instructions by a similar electronic method) and
the Custodian in its discretion elects to act upon such instructions, the Custodian’s reasonable understanding of such instructions
shall be deemed controlling. The Custodian shall not be liable for any losses, costs or expenses arising directly or indirectly
from the Custodian’s reliance upon and compliance with such instructions conflicting with or being inconsistent with a subsequent
written instruction; provided, however, that the Custodian shall be required to exercise reasonable best efforts to comply with
such subsequent instructions in order to correct and/or modify its actions so as to conform to such subsequent written instruction.
Any person providing such instructions or directions agrees to assume all risks arising out of the use of such electronic methods
to submit instructions and directions to the Custodian, including without limitation, the risk of the Custodian acting on unauthorized
instructions and the risk of interpretation and misuse by third parties.

 

		(c)	The Custodian shall have no responsibility or liability to the Company (or any other person or entity), and shall be indemnified
and held harmless by the Company, in the event that a subsequent written confirmation of an oral instruction fails to conform to
the oral instructions received by the Custodian. The Custodian shall not have an obligation to act in accordance with purported
instructions to the extent that they conflict with applicable law or regulations, local market practice or the Custodian’s
operating policies and practices. The Custodian shall not be liable for any loss resulting from a delay while it obtains clarification
of any Proper Instructions.

 

		7.5	Actions Permitted Without Express Authority. The Custodian may, at its discretion, without express authority from the
Company:

 

		(a)	make payments to itself as described in or pursuant to Section 3.9(b), or to make payments to itself or others for undisputed,
minor, reasonable out-of-pocket expenses of handling Securities or other similar items relating to its duties under this Agreement,
provided that (i) the Custodian shall have first invoiced or billed the Company for such amounts and the Company shall have failed
to pay and/or dispute such amounts within thirty (30) days after the date of such invoice or bill, and (ii) all such payments shall
be regularly accounted for to the Company;

 

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		(b)	surrender Securities in temporary form for Securities in definitive form;

 

		(c)	endorse for collection cheques, drafts and other negotiable instruments; and

 

		(d)	in general, except as otherwise directed in Proper Instructions, attend to all nondiscretionary details in connection with
the sale, exchange, substitution, purchase, transfer and other dealings with the Securities and property of the Company.

 

		7.6	Evidence of Authority. The Custodian shall be protected in acting upon any instructions, notice, request, consent, certificate
instrument or paper reasonably believed by it to be genuine and to have been properly executed or otherwise given by or on behalf
of the Company by an Authorized Person. The Custodian may receive and accept a certificate signed by any Authorized Person as conclusive
evidence of:

 

(a) the
authority of any person to act in accordance with such certificate; or

 

(b) any
determination of or any action by the Company as described in such certificate,

 

and such certificate may be considered as in full
force and effect until receipt by the Custodian of written notice to the contrary from an Authorized Person of the Company.

 

		7.7	Receipt of Communications. Any communication received by the Custodian on a day which is not a Business Day or after
5:00 p.m., Eastern time (or such other time as is agreed by the Company and the Custodian from time to time), on a Business Day
will be deemed to have been received on the next Business Day (but in the case of communications so received after 5:00 p.m., Eastern
time, on a Business Day the Custodian will use its best efforts to process such communications as soon as possible after receipt).

 

		7.8	Actions on the Loans. Except as expressly set forth herein, including but not limited to Article 3, the Custodian shall
have no duty or obligation hereunder to take any action on behalf of the Company, to communicate on behalf of the Company, to collect
amounts or proceeds in respect of, or otherwise to interact or exercise rights or remedies on behalf of the Company, with respect
to any of the Loans. Except as expressly set forth herein all such actions and communications are the responsibility of the Company.

 

		8.	COMPENSATION OF CUSTODIAN

 

		8.1	Fees. The Custodian and the Document Custodian shall be entitled to compensation for their services in accordance with
the terms of that certain fee letter dated August 14, 2019 (the “Fee Letter”), between the Company and the Custodian.

 

    24 

     

    

 

		8.2	Expenses. The Company agrees to pay or reimburse to the Custodian and the Document Custodian upon its request from time
to time all reasonable, out-of-pocket costs, disbursements, advances, and expenses (including reasonable fees and expenses of legal
counsel, subject to and to the extent provided in the Fee Letter) incurred, and any disbursements and advances made (including
any account overdraft resulting from any settlement or assumed settlement, provisional credit, chargeback, returned deposit item,
reclaimed payment or claw-back, or the like), in connection with the preparation or execution of this Agreement, or in connection
with the transactions contemplated hereby or the administration of this Agreement or performance by the Custodian or the Document
Custodian, as applicable, of its duties and services under this Agreement, from time to time (including costs and expenses of any
action deemed necessary by the Custodian or the Document Custodian to collect any amounts owing to it under this Agreement).

 

		9.	RESPONSIBILITY OF CUSTODIAN

 

		9.1	General Duties. The Custodian shall have no duties, obligations or responsibilities under this Agreement or with respect
to the Securities or Proceeds except for such duties as are expressly and specifically set forth in this Agreement, and the duties
and obligations of the Custodian shall be determined solely by the express provisions of this Agreement. No implied duties, obligations
or responsibilities shall be read into this Agreement against, or on the part of, the Custodian.

 

		9.2	Instructions.

 

		(a)	The Custodian shall be entitled to refrain from taking any action unless it has such instruction (in the form of Proper Instructions)
from the Company as it reasonably deems necessary, and shall be entitled to require, upon notice to the Company, that Proper Instructions
to it be in writing. Subject to Section 7.4, the Custodian shall have no liability for any action (or forbearance from action)
taken pursuant to the Proper Instruction of the Company.

 

		(b)	Whenever the Custodian is entitled or required to receive or obtain any communications or information pursuant to or as contemplated
by this Agreement, it shall be entitled to receive the same in writing, in form, content and medium reasonably acceptable to it
and otherwise in accordance with any applicable terms of this Agreement; and whenever any report or other information is required
to be produced or distributed by the Custodian it shall be in form, content and medium reasonably acceptable to it and the Company,
and otherwise in accordance with any applicable terms of this Agreement.

 

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		9.3	General Standards of Care. Notwithstanding any terms herein contained to the contrary, the acceptance by the Document
Custodian and the Custodian of each of their appointments hereunder is expressly subject to the following terms, which shall govern
and apply to each of the terms and provisions of this Agreement (whether or not so stated therein):

  

		(a)	Each of the Custodian and the Document Custodian may rely on and shall be protected in acting or refraining from acting upon
any written notice, instruction, statement, certificate, request, waiver, consent, opinion, report, receipt or other paper or document
furnished to it (including any of the foregoing provided to it by electronic means), not only as to its due execution and validity,
but also as to the truth and accuracy of any information therein contained, which it in good faith believes to be genuine and signed
or presented by the proper person (which in the case of any instruction from or on behalf of the Company shall be an Authorized
Person); and the Custodian and the Document Custodian shall be entitled to presume the genuineness and due authority of any signature
appearing thereon. Neither the Custodian nor the Document Custodian shall be bound to make any independent investigation into the
facts or matters stated in any such notice, instruction, statement, certificate, request, waiver, consent, opinion, report, receipt
or other paper or document, provided, however, that if the form thereof is specifically prescribed by the terms of this Agreement,
the Custodian or Document Custodian, as applicable, shall examine the same to determine whether it substantially conforms on its
face to such requirements hereof.

 

		(b)	Neither the Custodian, the Document Custodian nor any of their directors, officers or employees shall be liable to the Company
for any error of judgment, or for any act done or step taken or omitted to be taken by it (or any of its directors, officers of
employees), or for any mistake of fact or law, or for anything which it may do or refrain from doing in connection herewith, unless
such action or inaction constitutes gross negligence, willful misconduct, fraud or bad faith on its part. Neither the Custodian
nor the Document Custodian shall be liable for any action taken by it in good faith and reasonably believed by it to be within
powers conferred upon it, or taken by it pursuant to any direction or instruction by which it is governed hereunder, or omitted
to be taken by it by reason of the lack of direction or instruction required hereby for such action. Except as otherwise provided
herein, neither the Custodian nor the Document Custodian shall be under any obligation at any time to ascertain whether the Company
is in compliance with the 1940 Act, the regulations thereunder, or the Company’s investment objectives and policies then
in effect.

 

		(c)	In no event shall any party to this Agreement be liable hereunder for any indirect, special, punitive or consequential damages
(including lost profits) whether or not it has been advised of the likelihood of such damages. For the avoidance of doubt, nothing
contained in this Section 9.3(c) shall limit the Company’s obligation to indemnify the Custodian and the Document Custodian
in accordance with Section 9.4 thereto.

 

		(d)	The Custodian and the Document Custodian may consult with, and obtain advice from, legal counsel selected in good faith with
respect to any question as to any of the provisions hereof or its duties hereunder, or any matter relating hereto, and the written
opinion or advice of such counsel shall be full and complete authorization and protection in respect of any action taken, suffered
or omitted by the Custodian or the Document Custodian in good faith in accordance with the opinion and directions of such counsel;
the reasonable cost of such services shall be reimbursed pursuant to Section 8.2 above, subject to and to the extent provided in
the Fee Letter.

 

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		(e)	Neither the Custodian nor the Document Custodian shall be deemed to have notice of any fact, claim or demand with respect hereto
unless actually known or reasonably should have been known by an officer working in its Global Corporate Trust group and charged
with responsibility for administering this Agreement or unless (and then only to the extent) received in writing by the Custodian
or the Document Custodian at the applicable address(es) as set forth in Section 15 and specifically referencing this Agreement.

 

		(f)	No provision of this Agreement shall require the Custodian or the Document Custodian to expend or risk its own funds, or to
take any action (or forbear from action) hereunder which might in its judgment involve any expense or any financial or other liability
unless the expenditure of such funds or the taking of such action is indemnified hereunder or it shall otherwise be furnished with
acceptable indemnification. Nothing herein shall obligate the Custodian or the Document Custodian to commence, prosecute or defend
legal proceedings in any instance, whether on behalf of the Company or on its own behalf or otherwise, with respect to any matter
arising hereunder, or relating to this Agreement or the services contemplated hereby.

 

		(g)	The permissive rights of the Custodian and the Document Custodian to take any action hereunder shall not be construed as duty.

 

		(h)	The Custodian and the Document Custodian may each act or exercise duties or powers hereunder through agents (including for
the avoidance of doubt, sub-custodians) or attorneys, and the Custodian and Document Custodian, as applicable, shall not be liable
or responsible for the actions or omissions of any such agent or attorney appointed with due care (including, for the avoidance
of doubt, in the case of sub-custodians, in accordance with Section 3.14).

 

		(i)	All indemnifications contained in this Agreement in favor of the Custodian and the Document Custodian shall survive the termination
of this Agreement or earlier resignation or removal of the Custodian or the Document Custodian, as applicable.

 

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		9.4	Indemnification.

 

		(a)	The Company shall and does hereby indemnify and hold harmless each of the Custodian and the Document Custodian, for and from
any and all costs and expenses (including reasonable attorney’s fees and expenses) and any and all losses, damages, claims
and liabilities, that may arise, be brought against or incurred by the Custodian or the Document Custodian, whether direct, indirect
or consequential, as a result of or arising from or in any way relating to any claim, demand, suit, action or proceeding (including
any inquiry or investigation) by any person, including without limitation the Company or any Subsidiary, and any advances or disbursements
made by the Custodian or the Document Custodian (including in respect of any Account overdraft, returned deposit item, chargeback,
provisional credit, settlement or assumed settlement, reclaimed payment, claw-back or the like), as a result of, relating to, or
arising out of this Agreement, or the administration or performance of the duties of the Custodian and the Document Custodian hereunder,
or the relationship between the Company (including, for the avoidance of doubt, any Subsidiary), the Custodian and the Document
Custodian created hereby, including the enforcement of any indemnification rights hereunder, other than such liabilities, losses,
damages, claims, costs and expenses as are directly caused by the Custodian’s or the Document Custodian’s, as applicable,
own action or inaction constituting bad faith, gross negligence, fraud or willful misconduct on its part. Notwithstanding the foregoing,
the board of directors of the Company, the officers of the Company and the shareholders of the Company who are not Authorized Persons
shall not be liable for any obligations of the Company under this Agreement, and the Custodian and the Document Custodian each
agree that, in asserting any rights or claims under this Agreement, they shall look only to the assets and property of the Company
in settlement of such right or claim, and not to such directors, officers or shareholders.

 

		(b)	If the Company requires the Custodian, its affiliates, subsidiaries or agents, to advance cash or securities for any purpose
(including but not limited to securities settlements, foreign exchange contracts and assumed settlement) or in the event that the
Custodian or its nominee shall incur or be assessed any taxes (other than any income taxes in respect of compensation hereunder),
charges, expenses, assessments, claims or liabilities in connection with the performance of this Agreement, except such as may
arise from its or its nominee’s own action or inaction constituting bad faith, gross negligence, fraud or willful misconduct,
or if the Company fails to compensate or pay the Custodian pursuant to Section 8.1 or Section 9.4 hereof, any cash at any time
held for the account of the Company shall be security therefor; should the Company fail to repay the Custodian promptly (or, if
specified, within the time frame provided herein), the Custodian shall be entitled, subject to and in accordance with Section 3.9(b)
hereof, to utilize available cash to the extent necessary to obtain reimbursement.

 

		9.5	Force Majeure. Without prejudice to the generality of the foregoing, subject to compliance with the representation,
warranty and covenant in Section 13.2(d) below, neither the Custodian nor the Document Custodian shall be liable to the Company
for any damage or loss resulting from or caused by events or circumstances beyond the reasonable control of the Custodian or Document
Custodian, including nationalization, expropriation, currency restrictions, the interruption, disruption or suspension of the normal
procedures and practices of any securities market, power, mechanical, communications or other technological failures or interruptions,
computer viruses or the like, fires, floods, earthquakes or other natural disasters, civil and military disturbance, acts of war
or terrorism, riots, revolution, acts of God, work stoppages, strikes, national disasters of any kind, or other similar events
or acts; errors by the Company (including any Authorized Person) in its instructions to the Custodian or the Document Custodian;
or changes in applicable law, regulation or orders.

 

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		10.	SECURITY CODES

 

If the Custodian or Document Custodian issue to the Company
security codes, passwords or test keys in order that it may verify that certain transmissions of information, including Proper
Instructions, have been originated by the Company, the Company shall take all commercially reasonable steps to safeguard any security
codes, passwords, test keys or other security devices which the Custodian or Document Custodian shall make available.

 

		11.	TAX LAW

 

		11.1	Domestic Tax Law. The Custodian shall have no responsibility or liability for any obligations now or hereafter imposed
on the Company or the Custodian as custodian of the Securities or the Proceeds, by the tax law of the United States or any state
or political subdivision thereof (but excluding any income taxes assessable in respect of compensation paid to the Custodian pursuant
to this Agreement). The Custodian shall be kept indemnified by and be without liability to the Company for such obligations including
taxes, (but excluding any income taxes assessable in respect of compensation paid to the Custodian pursuant to this Agreement)
withholding, certification and reporting requirements, claims for exemption or refund, additions for late payment interest, penalties
and other expenses (including legal expenses) that may be assessed against the Company, or the Custodian as custodian of the Securities
or Proceeds.

 

		11.2	Foreign Tax Law. It shall be the responsibility of the Company to notify the Custodian of the obligations imposed on
the Company by the tax law of foreign (e.g., non-U.S.) jurisdictions, including responsibility for withholding and other taxes,
assessments or other government charges, certifications and government reporting. The sole responsibility of the Custodian with
regard to such tax law shall be to use reasonable efforts to cooperate with the Company with respect to any claims for exemption
or refund under the tax law of the jurisdictions for which the Company has provided such information.

 

		12.	EFFECTIVE PERIOD AND TERMINATION

 

		12.1	Effective Date. This Agreement shall become effective as of its due execution and delivery by each of the parties. This
Agreement shall continue in full force and effect until terminated as hereinafter provided. This Agreement may be terminated by
the Document Custodian, the Custodian or the Company pursuant to Section 12.2.

 

		12.2	Termination. This Agreement shall terminate upon the earliest of (a) occurrence of the effective date of termination
specified in any written notice of termination given by any party to the other parties not later than sixty (60) days prior to
the effective date of termination specified therein, (b) such other date of termination as may be mutually agreed upon by the parties
in writing.

 

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		12.3	The Custodian and/or the Document Custodian may at any time resign under this Agreement by giving not less than sixty days
(60) days advance written notice thereof to the Company. The Company may at any time remove the Custodian and/or the Document Custodian
under this Agreement by giving not less than sixty (60) days advance written notice to the Custodian or Document Custodian, as
applicable.

 

		12.4	Successor. Prior to the effective date of termination of this Agreement, or the effective date of the resignation of
the Custodian, as the case may be, the Company shall give Proper Instruction to the Custodian designating a successor Custodian,
if applicable. The Custodian shall, upon receipt of Proper Instruction from the Company (i) deliver directly to the successor Custodian
all Securities (other than Securities held in a Book-Entry System or Securities Depository) and cash then owned by the Company
and held by the Custodian as custodian, and (ii) transfer any Securities held in a Book-Entry System or Securities Depository to
an account of or for the benefit of the Company at the successor Custodian, provided that the Company shall have paid to the Custodian
all fees, expenses and other amounts to the payment or reimbursement of which it shall then be entitled. In addition, the Custodian
shall, at the expense of the Company, transfer to such successor all relevant books, records, correspondence, and other data established
or maintained by the Custodian under this Agreement (if such form differs from the form in which the Custodian has maintained the
same, the Company shall pay any reasonable and documented expenses associated with transferring the data to such form), and will
cooperate in the transfer of such duties and responsibilities. Upon such delivery and transfer, the Custodian shall be relieved
of all obligations under this Agreement.

 

		12.5	Payment of Fees, etc. Upon termination of this Agreement, the Company shall pay to each of the Custodian and the Document
Custodian such compensation, and shall likewise reimburse each of the Custodian and the Document Custodian for its costs, expenses
and disbursements, as may be due as of the date of such termination or resignation. All indemnifications in favor of the Custodian
and the Document Custodian under this Agreement shall survive the termination of this Agreement or any resignation of the Custodian
or the Document Custodian, as applicable.

 

		12.6	Final Report. In the event of any resignation or removal of the Custodian, the Custodian shall provide to the Company
a complete final report or data file transfer of any Confidential Information as of the date of such resignation or removal.

 

		13.	REPRESENTATIONS AND WARRANTIES

 

		13.1	Representations of the Company. The Company represents, warrants and covenants to the Custodian that:

 

		(a)	it has the power and authority to enter into and perform its obligations under this Agreement, and it has duly authorized,
executed and delivered this Agreement so as to constitute its valid and binding obligation; and

 

    30 

     

    

 

		(b)	in giving any instructions which purport to be “Proper Instructions” under this Agreement, the Company will act
in accordance with the provisions of its articles of incorporation and bylaws and any applicable laws and regulations.

 

		13.2	Representations of the Custodian. Each of the Custodian and Document Custodian hereby represents, warrants and covenants
to the Company that:

 

		(a)	it is qualified to act as a custodian pursuant to Sections 17(f) and 26(a)(1) of the 1940 Act;

 

		(b)	it has the power and authority to enter into and perform its obligations under this Agreement;

 

		(c)	it has duly authorized, executed and delivered this Agreement so as to constitute its valid and binding obligations; and

 

		(d)	it maintains and shall adhere to reasonably adequate business continuity and disaster recovery policies, standards contingency
plans, cybersecurity protections, systems and processes that include data file backup and recovery procedures and that comply,
and will comply, with all applicable regulatory requirements.

 

		14.	PARTIES IN INTEREST; NO THIRD PARTY BENEFIT

 

This Agreement is not intended for, and shall not be construed
to be intended for, the benefit of any third parties and may not be relied upon or enforced by any third parties (other than successors
and permitted assigns pursuant to Section 20).

 

		15.	NOTICES

 

Any Proper Instructions shall be given to the following address
(or such other address as either party may designate by written notice to the other party), and otherwise any notices, approvals
and other communications hereunder shall be sufficient if made in writing and given to the parties at the following address (or
such other address as either of them may subsequently designate by notice to the other), given by (i) certified or registered mail,
postage prepaid, (ii) recognized courier or delivery service, or (iii) confirmed telecopier or telex, or by electronic mail (so
long as no error message is received in response thereto), with a duplicate sent on the same day by first class mail, postage prepaid:

 

		(a)	if to the Company or any Subsidiary, to

 

Palmer Square Capital BDC Inc.

c/o Palmer Square BDC Advisor LLC

1900 Shawnee Mission Parkway, Suite 315

Mission Woods, KS 66205

Attention: Chief Compliance Officer

Telephone: 913-232-5685

Email: compliance@palmersquarecap.com

 

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		(b)	if to the Custodian, to

 

U.S. Bank National Association

Global Corporate Trust

One Federal Street, 3rd Floor

Boston, MA 02110

Ref: Palmer Square Capital BDC Inc.

Attention: Global Corporate Trust/Emily Schock

Telephone: (312) 332-7097

Email: emily.schock@usbank.com

 

		(c)	if to the Document Custodian, to

 

U.S. Bank National Association

1719 Otis Way

Florence, South Carolina 29501

Mail Code: EX-SC-FLOR

Ref: Palmer Square Capital BDC Inc.

Attention: Document Custody Services

E-mail: steven.garrett@usbank.com

 

 

		16.	PROPRIETARY AND CONFIDENTIAL INFORMATION

 

		16.1	Each party (in such capacity, the “Receiving Party”) shall keep confidential any non-public information
relating to the other party’s business disclosed by or on behalf of such other party (in such capacity, the “Disclosing
Party”, and all such information collectively, “Confidential Information”), and shall use any such
Confidential Information only in furtherance of its performance hereunder. Confidential Information may include: (i) any data or
information that is competitively sensitive material, and not generally known to the public, including, but not limited to, information
about product plans, marketing strategies, finances, operations, customer relationships, customer profiles, customer lists, sales
estimates, business plans, and internal performance results relation to the past, present or future business activities of the
Disclosing Party, its respective subsidiaries and affiliated companies; (ii) any scientific or technical information, design, process,
procedure, formula, or improvement that is commercially valuable and secret in the sense that its confidentiality affords the Disclosing
Party a competitive advantage of its competitors; (iii) all confidential or proprietary concepts, documentation, reports, data,
specifications, computer software, source code, object code, flow charts, databases, documentation, reports, data, specifications,
computer software, source code, object code, flow charts, databases, inventions, know-how, and trade secrets, whether or not patentable
or copyrightable; and (iv) anything designated as confidential. Confidential Information shall not include information which (i)
is disclosed in a publication available to the public, is otherwise in the public domain at the time of disclosure, or becomes
publicly known through no breach of the terms hereof by the Receiving Party, (ii) is obtained by the Receiving Party in good faith
from a third party source having the right to disclose such information, or (iii) was known by the Receiving Party, without any
obligation of confidentiality, prior to the disclosure of such information. Notwithstanding anything to the contrary herein, the
Receiving Party may disclose Confidential Information to its affiliates and its and their directors, officers, employees, attorneys,
accountants, agents or advisors who have a need to know such information in the course of the performance of its duties hereunder
and are required to comply with the confidentiality obligations under this Section 16, provided, however, that the Receiving Party
shall be responsible for the Compliance by the Receiving Party with such obligations.

 

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		16.2	The Receiving Party may disclose Confidential Information to the extent and as required by applicable law or regulation in
connection with oral questions, interrogatories, requests for information or documents, subpoena, civil investigative demand, any
informal or formal investigation by any regulatory authority to whose jurisdiction Receiving Party is subject, or pursuant to a
judicial, administrative or legal proceeding in which either party is involved; provided that the recipient will, to the extent
permitted to do so, provide prompt notice to the other party of such request and give the other party the opportunity to contest
such request or seek a protective order, as necessary, prior to disclosing such Confidential Information under this Section 16.2;
provided, however that no such prior notice shall be required in connection with disclosure pursuant to a routine examination (which
is not specifically targeted at the Disclosing Party or the relationship contemplated by this Agreement) to a regulatory authority
to whose jurisdiction the Receiving Party is subject. In the event that no such protective order or other remedy is obtained, or
in the absence of such protective order, other remedy or the waiver by the other party and where the receiving party has been advised
by counsel that it is legally compelled to disclose the Confidential Information, the receiving party and/or its counsel will furnish
only that portion of the Confidential Information that the receiving party is advised by its counsel is legally required.

 

		16.3	Further, the Custodian and the Document Custodian will use reasonable efforts to adhere to the privacy policies adopted by
the Company pursuant to Title V of the Gramm-Leach-Bliley Act, as may be modified from time to time. In this regard, the Custodian
and the Document Custodian shall each have in place and maintain physical, electronic and procedural safeguards in accordance with
the customary practices and procedures of the Custodian and the Document Custodian reasonably designed to protect the security,
confidentiality and integrity of, and to prevent unauthorized access to or use of, records and information relating to the Company
and its shareholders.

 

		16.4	The obligations under this Section 16 shall survive the termination of this Agreement.

 

		17.	CHOICE OF LAW AND JURISDICTION

 

This Agreement shall be construed, and the provisions thereof
interpreted under and in accordance with and governed by the laws of the State of New York for all purposes (without regard to
its choice of law provisions); except to the extent such laws are inconsistent with federal securities laws, including the 1940
Act, in which case such federal securities laws shall govern.

 

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		18.	ENTIRE AGREEMENT; COUNTERPARTS

 

		18.1	Complete Agreement. This Agreement constitutes the complete and exclusive agreement of the parties with regard to the
matters addressed herein and supersedes and terminates as of the date hereof, all prior agreements or understandings, oral or written,
between the parties to this Agreement relating to such matters.

 

		18.2	Counterparts. This Agreement may be executed in any number of counterparts and all counterparts taken together shall
constitute one and the same instrument.

 

		18.3	Electronic Signatures. The exchange of copies of this Agreement and of signature pages by email transmission (e.g.,
in pdf form) shall constitute effective execution and delivery of this Agreement as to the parties and may be used in lieu of the
original Agreement for all purposes. Signatures of the parties transmitted by email shall be deemed to be their original signatures
for all purposes.

 

		19.	AMENDMENT; WAIVER

 

		19.1	Amendment. This Agreement may not be amended except by an express written instrument duly executed by each of the Company
and the Custodian.

 

		19.2	Waiver. In no instance shall any delay or failure to act be deemed to be or effective as a waiver of any right, power
or term hereunder, unless and except to the extent such waiver is set forth in an expressly written instrument signed by the party
against whom it is to be charged.

 

		20.	SUCCESSOR AND ASSIGNS

 

		20.1	Successors Bound. The covenants and agreements set forth herein shall be binding upon and inure to the benefit of each
of the parties and their respective successors and permitted assigns. No party shall be permitted to assign its rights under this
Agreement without the written consent of the other parties; provided, however, that the foregoing shall not limit the ability of
the Custodian to delegate certain duties or services to or perform them through agents or attorneys appointed with due care as
expressly provided in this Agreement, provided further, that such delegation, or employment of agents and attorneys shall not relieve
the Custodian of any of its obligations and duties hereunder.

 

		20.2	Merger and Consolidation. Any corporation or association into which the Custodian may be merged or converted or with
which it may be consolidated, or any corporation or association resulting from any merger, conversion or consolidation to which
the Custodian or the Document Custodian shall be a party, or any corporation or association to which the Custodian or Document
Custodian transfers all or substantially all of its corporate trust business, shall be the successor of the Custodian or Document
Custodian, as applicable hereunder, and shall succeed to all of the rights, powers and duties of the Custodian or Document Custodian,
as applicable, hereunder, without the execution or filing of any paper or any further act on the part of any of the parties hereto,
subject in all cases to all representations, warranties, covenants and obligations made by the Custodian and Document Custodian
hereunder. For avoidance of doubt, no corporation or association (as described above) shall succeed to the rights, powers and duties
of the Custodian and/or Document Custodian hereunder unless it is a qualified custodian pursuant to Sections 17(f) and 26(a)(1)
of the 1940 Act.

 

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		21.	SEVERABILITY

 

The terms of this Agreement are hereby declared to be severable,
such that if any term hereof is determined to be invalid or unenforceable, such determination shall not affect the remaining terms.

 

		22.	REQUEST FOR INSTRUCTIONS

 

If, in performing its duties under this Agreement, the Custodian
is required to decide between alternative courses of action, the Custodian may (but shall not be obliged to) request written instructions
from the Company as to the course of action desired by it. If the Custodian does not receive such instructions within two (2) Business
Days after it has requested them, the Custodian may, but shall be under no duty to, take or refrain from taking any such courses
of action. The Custodian shall act in accordance with instructions received from the Company in response to such request after
such two-Business Day period except to the extent it has already taken, or committed itself to take, action inconsistent with such
instructions.

 

		23.	OTHER BUSINESS

 

Nothing herein shall prevent the Custodian, the Document Custodian
or any of their affiliates from engaging in other business, or from entering into any other transaction or financial or other relationship
with, or receiving fees from or from rendering services of any kind to the Company or any other Person. Nothing contained in this
Agreement shall constitute the Company and/or the Custodian or the Document Custodian (and/or any other Person) as members of any
partnership, joint venture, association, syndicate, unincorporated business or similar assignment as a result of or by virtue of
the engagement or relationship established by this Agreement.

 

		24.	REPRODUCTION OF DOCUMENTS

 

This Agreement and all schedules, exhibits, attachments and
amendment hereto may be reproduced by any photographic, photostatic, microfilm, micro-card, miniature photographic or other similar
process. The parties hereto each agree that any such reproduction shall be admissible in evidence as the original itself in any
judicial or administrative proceeding, whether or not the original is in existence and whether or not such reproduction was made
by a party in the regular course of business, and that any enlargement, electronic or further production shall likewise be admissible
in evidence.

 

    35 

     

    

 

		25.	MISCELLANEOUS

 

The Company acknowledges receipt of the following notice:

 

“IMPORTANT INFORMATION
ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT.

 

To help the government fight the funding of terrorism
and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that
identifies each person who opens an account. For a non-individual person such as a business entity, a charity, a trust or other
legal entity the Custodian will ask for documentation to verify its formation and existence as a legal entity. The Custodian may
also ask to see financial statements, licenses, identification and authorization documents from individuals claiming authority
to represent the entity or other relevant documentation.”

   

[PAGE INTENTIONALLY ENDS HERE. SIGNATURES
APPEAR ON NEXT PAGE.]

 

    36 

     

    

 

IN WITNESS WHEREOF, each of the parties
has caused this Agreement to be executed and delivered by a duly authorized officer, intending the same to take effect as of the
date first set forth above.

  

	Witness:	 	PALMER SQUARE CAPITAL BDC INC.
	 	 	 	 	 	 
	/s/ Stacy Brice	 	 	By:	/s/ Scott A. Betz
	Name:	Stacy Brice	 	 	Name:	Scott A. Betz
	Title:	Vice President of Compliance	 	 	Title:	Chief Compliance Officer
	 	and Legal Counsel	 	 	 	 

   

	Witness:	 	U.S. BANK NATIONAL ASSOCIATION
	 	 	 	as Custodian
	 	 	 	 	 	 
	/s/ Daniel Scully	 	 	By:	/s/ Jon C. Warn
	Name:	Daniel Scully	 	 	Name:	Jon C. Warn
	Title:	Vice President	 	 	Title:	Vice President

     

	Witness:	 	U.S. BANK NATIONAL ASSOCIATION
	 	 	 	as Document Custodian
	 	 	 	 	 	 
	 	 	 	 	 	 
	/s/ Michelle Hoff	 	 	By:	/s/ Kenneth Brandt
	Name:	Michelle Hoff	 	 	 	Name: Kenneth Brandt
	Title:	Vice President	 	 	 	Title: Assistant Vice President

 

     

     

    

 

SCHEDULE
A

 

(Trade Confirmation)

 

On file with Custodian

 

     

     

    

 

SCHEDULE B

 

Any of the following persons (each acting
singly) shall be an Authorized Person (as this list may subsequently be modified by the Company from time to time by written notice
to the Custodian):

  

	NAME:	SPECIMEN SIGNATURE:
	Christopher D. Long	/s/ Christopher D. Long
	Angie K. Long	/s/ Angie K. Long
	Jeffrey D. Fox	/s/ Jeffrey D. Fox
	Scott A. Betz	/s/ Scott A. Betz

  

 

  

     

     

    

 

EXHIBIT A

FORM OF REQUEST FOR RELEASE

 

(attached)

  

     

     

    

 

 

Request for Release of Documents

 

	
        U.S. Bank Global Corporate Trust Services

        1719 Otis Way

        Florence, South Carolina 29501

        Ref: Palmer Square Capital BDC Inc.
	
        Attention: Document Custody Services 

        Receiving Unit

        Email: dcs@usbank.com

        Fax: (651) 695-6100 or (651) 695-6101

 

		RE:	Custody Agreement, dated as of December 17, 2019 (the
“Custody Agreement”) between Palmer Square Capital BDC Inc., (the “Company”) and U.S. Bank National Association,
as custodian and document custodian (the “Document Custodian”)

 

Pursuant to Section 6 of the Custody Agreement,
we request the release of the Collateral Files relating to the Collateral listed on the attached Excel spreadsheet for the reason
indicated below: 

 

Reason
for Requesting Documents (Check One):

 

	 	1) Collateral Paid in Full
	 	2) Collateral being Substituted
	 	3) Collateral being Liquidated by Company
	 	
        4) Other- Description Needed Below  

  

	Company:	 
	Authorized Representative:	 
	Name (Printed):	 
	Title (Printed):	 
	Date:	 
	Phone:	 

 

	File Delivery Instructions – Address Needed
	
         

         

         

         

         

         

         

 

Upon Completion of
Request, for Release, please scan and email the request to the appropriate DCS Vault Location. If applicable, please indicate
if the request is a “Rush” in the subject line. Please fax the form if you do not have access to email.

 

	Florence:	dcsflorencescreleases@usbank.com
	Frederick:	electronic.release.requests@usbank.com
	Jacksonville:	dcsctsjacksonville.requests@usbank.com
	Saint Paul:	dcs@usbank.com
	St. Petersburg:	documentcustody.stpete@usbank.com
	Rocklin:	dcs-rocklin@usbank.com
	Tempe:	tempe.dcs.request@usbank.com

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