Document:

Exhibit 10.3

 

ADMINISTRATION
AGREEMENT

 

This ADMINISTRATION
AGREEMENT (the “Agreement”) made as of [●], 2020 by and between Franklin BSP Capital Corporation, a Delaware
corporation (the “Corporation”), and Benefit Street Partners L.L.C., a Delaware limited liability company (the
 “Administrator”).

 

WITNESSETH:

 

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

 

WHEREAS,
the Corporation desires to retain the Administrator to provide administrative services to the Corporation in the manner and on
the terms hereinafter set forth; and

 

WHEREAS,
the Administrator is willing to provide administrative services to the Corporation on the terms and conditions hereafter 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 is hereby acknowledged, the Corporation and the Administrator hereby agree as follows:

 

1.                  
Duties of the Administrator

 

(a)               
Appointment of Administrator. The Corporation hereby appoints the Administrator
to act as administrator of the Corporation, and to furnish, or arrange for others to furnish, the administrative services, personnel
and facilities described below, subject to review by and the overall control of the Board of Directors of the Corporation (the
 “Board”), for the period and on the terms and conditions set forth in this Agreement. The Administrator hereby
accepts such appointment and agrees during such period to render, or arrange for the rendering of, such services and to assume
the obligations herein set forth subject to the reimbursement of costs and expenses provided for below. The Administrator and
any such other persons providing services arranged for by the Administrator shall for all purposes herein be deemed to be independent
contractors and shall, unless otherwise expressly provided or authorized herein, have no authority to act for or represent the
Corporation in any way or otherwise be deemed agents of the Corporation.

 

(b)               
Services. The Administrator shall perform (or oversee, or arrange for, the
performance of) the administrative services necessary for the operation of the Corporation. Without limiting the generality of
the foregoing, the Administrator shall provide the Corporation with office facilities, equipment, clerical, bookkeeping and record
keeping services at such facilities and such other services as the Administrator, subject to review by the Board, shall from time
to time determine to be necessary or useful to perform its obligations under this Agreement. The Administrator shall also, on
behalf of the Corporation, conduct relations with custodians, depositories, transfer agents, dividend disbursing agents, other
stockholder servicing agents, accountants, attorneys, underwriters, brokers and dealers, corporate fiduciaries, insurers, banks
and such other persons in any such other capacity deemed to be necessary or desirable. The Administrator shall make reports to
the Board of its performance of obligations hereunder and furnish advice and recommendations with respect to such other aspects
of the business and affairs of the Corporation as it shall determine to be desirable or as requested by the Board; provided
that nothing herein shall be construed to require the Administrator to, and the Administrator shall not provide any advice
or recommendation relating to the securities and other assets that the Corporation should purchase, retain or sell or any other
investment advisory services to the Corporation. The Administrator shall be responsible for the financial and other records that
the Corporation is required to maintain and shall prepare reports to stockholders, and reports and other materials filed with
the Securities and Exchange Commission (the “SEC”) or any other regulatory authority, including, but not limited
to, current reports on Form 8-K, quarterly reports on Form 10-Q, annual reports on Form 10-K and proxy or information statements
to stockholders. If requested by the Corporation, the Administrator will provide on the Corporation’s behalf significant
managerial assistance to those portfolio companies to which the Corporation is required to provide such assistance. In addition,
the Administrator will assist the Corporation in determining and publishing the Corporation’s net asset value, overseeing
the preparation and filing of the Corporation’s tax returns, and the printing and dissemination of reports to stockholders
of the Corporation, and generally overseeing the payment of the Corporation’s expenses and the performance of administrative
and professional services rendered to the Corporation by others.

 

     

     

    

 

2.                  
Records

 

The Administrator
agrees to maintain and keep all books, accounts and other records of the Corporation that relate to activities performed by the
Administrator hereunder and, if required by the Investment Company Act, will maintain and keep such books, accounts and records
in accordance with that Act. In compliance with the requirements of Rule 31a-3 under the Investment Company Act, the Administrator
agrees that all records that it maintains for the Corporation shall at all times remain the property of the Corporation, shall
be readily accessible during normal business hours, and shall be promptly surrendered upon the termination of the Agreement or
otherwise on written request. The Administrator further agrees that all records which it maintains for the Corporation pursuant
to Rule 31a-1 under the Investment Company Act will be preserved for the periods prescribed by Rule 31a-2 under the
Investment Company Act unless any such records are earlier surrendered as provided above. Records shall be surrendered in usable
machine-readable form. The Administrator shall have the right to retain copies of such records subject to observance of its confidentiality
obligations under this Agreement.

 

3.                  
Confidentiality

 

The parties
hereto agree that each shall treat confidentially all information provided by each party to the other regarding its business and
operations. All confidential information provided by a party hereto, including nonpublic personal information of natural persons
pursuant to Regulation S-P of the SEC, shall be used by any other party hereto solely for the purpose of rendering services
pursuant to this Agreement and, except as may be required in carrying out this Agreement, shall not be disclosed to any third
party without the prior consent of such providing party. The foregoing shall not be applicable to any information that is publicly
available when provided or thereafter becomes publicly available other than through a breach of this Agreement, or that is required
to be disclosed by any regulatory authority, any authority or legal counsel of the parties hereto, by judicial or administrative
process or otherwise by applicable law or regulation.

 

4.                  
Compensation; Allocation of Costs and Expenses

 

(a)               
In full consideration of the provision of the services of the Administrator, the Corporation
shall reimburse the Administrator for the costs and expenses incurred by the Administrator in performing its obligations and providing
personnel and facilities hereunder, including the costs and expenses charged by any sub-administrator that may be retained by
the Administrator to provide services to the Corporation or on the Administrator’s behalf.

 

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(b)               
The Corporation will bear all costs and expenses that are incurred in its operation, administration,
and transactions and not specifically assumed by the Corporation’s investment adviser (the “Adviser”),
pursuant to that certain Investment Advisory Agreement, dated as of [•], 2020, by and between the Corporation and the Adviser
(the “Advisory Agreement”). Costs and expenses to be borne by the Corporation include, but are not limited
to, those relating to: expenses deemed to be “organization and offering expenses” of the Corporation for purposes
of Conduct Rule 2310(a)(12) of the Financial Industry Regulatory Authority (for purposes of this Agreement, such expenses, exclusive
of commissions, the dealer manager fee and any discounts, are hereinafter referred to as “Organization and Offering Expenses”);
expenses incurred by the Adviser and payable to third parties, including agents, consultants and other advisors, in monitoring
the financial and legal affairs of the Corporation, and news and quotation subscriptions; the cost of calculating the Corporation’s
net asset value; the cost of effecting sales and repurchases of shares of the Corporation’s common stock and other securities;
management and incentive fees payable pursuant to the Advisory Agreement; fees payable to third parties, including agents, consultants
and other advisors, relating to, or associated with, making investments, and, if necessary, enforcing its rights, and valuing
investments (including third-party valuation firms); placement agent fees and expenses, rating agency expenses; fees to arrange
debt financings for the Corporation; distributions on the Corporation’s shares; administration fees payable under this Agreement;
the allocated costs incurred by the Administrator in providing managerial assistance to those portfolio companies that request
it; transfer agent and custodial fees; fees and expenses associated with marketing efforts (including attendance at investment
conferences and similar events); federal and state registration fees; any exchange listing fees; federal, state, local, and other
taxes; independent directors’ fees and expenses, including any legal counsel or other advisors retained by, or at the discretion
or for the benefit of, the independent directors; brokerage commissions; costs of proxy statements, stockholders’ reports
and notices; costs of preparing government filings, including periodic and current reports with the SEC; the Corporation’s
fidelity bond, directors and officers/errors and omissions liability insurance, and any other insurance premiums; indemnification
payments; expenses relating to the development and maintenance of the Corporation’s website; other operations and technology
costs; direct costs and expenses of administration, including printing, mailing, copying, telephone, fees of independent accountants
and outside legal costs; and all other expenses incurred by the Corporation or the Administrator in connection with administering
the Corporation’s business, including, but not limited to, payments under this Agreement based upon the Corporation’s
allocable portion of the Administrator’s overhead in performing its obligations under this Agreement, including rent, travel
and the allocable portion of the cost of the Corporation’s chief compliance officer and chief financial officer and their
respective staffs, including operations and tax professionals, and administrative staff providing support services in respect
of the Corporation.

 

5.                  
Limitation of Liability of the Administrator; Indemnification

 

The Administrator,
its affiliates and their respective directors, officers, managers, partners, agents, employees, controlling persons, members,
and any other person or entity affiliated with any of them including the Adviser, shall not be liable to the Corporation for any
action taken or omitted to be taken by the Administrator in connection with the performance of any of its duties or obligations
under this Agreement or otherwise as administrator for the Corporation, and the Corporation shall indemnify, defend and protect
the Administrator (and its officers, managers, partners, agents, employees, controlling persons, members, and any other person
or entity affiliated with the Administrator, including without limitation, 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 Corporation or its security holders) arising out of or otherwise
based upon the performance of any of the Administrator’s duties or obligations under this Agreement or otherwise as administrator
for the Corporation. Notwithstanding the preceding sentence of this Section 5 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 Corporation 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 Administrator’s
duties or by reason of the reckless disregard of the Administrator’s duties and obligations under this Agreement (to the
extent applicable, as the same shall be determined in accordance with the Investment Company Act and any interpretations or guidance
by the SEC or its staff thereunder).

 

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In addition,
notwithstanding any of the foregoing to the contrary, the provisions of this Section 5 shall not be construed so as to provide
for the indemnification of any Indemnified Party for any liability (including liability under federal securities laws which, under
certain circumstances, impose liability even on persons that act in good faith), to the extent (but only to the extent) that such
indemnification would be in violation of applicable law, but shall be construed so as to effectuate the provisions of this Section
5 to the fullest extent permitted by law.

 

6.                  
Activities of the Administrator

 

The services
of the Administrator to the Corporation are not to be deemed to be exclusive, and the Administrator and each other person providing
services as arranged by the Administrator is free to render services to others. It is understood that directors, officers, employees
and stockholders of the Corporation are or may become interested in the Administrator and its affiliates, as directors, officers,
members, managers, employees, partners, stockholders or otherwise, and that the Administrator and directors, officers, members,
managers, employees, partners and stockholders of the Administrator and its affiliates are or may become similarly interested
in the Corporation as officers, directors, stockholders or otherwise.

 

7.                  
Duration and Termination of this Agreement

 

(a)               
This Agreement shall remain in force with respect to the Corporation for two years from the
date of effectiveness and thereafter continue from year to year, but only so long as such continuance is specifically approved
at least annually by (i) the Board and (ii) a majority of the members of the Board who are not parties to this Agreement
or “interested persons” (as defined in Section 2(a)(19) of the Investment Company Act) of any such party.

 

(b)               
This Agreement may be terminated at any time, without the payment of any penalty, by vote
of the Board, or by the Administrator, upon 60 days’ written notice to the other party.

 

(c)               
This Agreement may not be assigned by a party without the consent of the other party.  The
provisions of Section 3 and Section 5 of this Agreement shall remain in full force and effect, and the Administrator shall remain
entitled to the benefits thereof, notwithstanding any termination of this Agreement. 

 

8.                  
Amendments of this Agreement

 

This Agreement
may be amended pursuant to a written instrument by mutual consent of the parties.

 

9.                  
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.

 

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10.              
Governing Law

 

This Agreement
shall be construed in accordance with the laws of the State of New York and the applicable provisions of the Investment Company
Act. To the extent that the applicable laws of the State of New York, or any of the provisions herein, conflict with the applicable
provisions of the Investment Company Act, the latter shall control.

 

11.              
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.

 

12.              
Notices

 

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

 

13.              
Miscellaneous

 

The captions
in this Agreement are included for convenience of reference only and in no way define or delimit any of the provisions hereof
or otherwise affect their construction or effect. If any provision of this Agreement shall be held or made invalid by a court
decision, statute, rule or otherwise, the remainder of this Agreement shall not be affected thereby. This Agreement shall be binding
on, and shall inure to the benefit of the parties hereto and their respective successors.

 

14.              
Counterparts

 

This Agreement
may be executed in counterparts by the parties hereto, each of which shall constitute an original counterpart, and all of which,
together, shall constitute one Agreement.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

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

 

 

	 	FRANKLIN
    BSP CAPITAL CORPORATION
	 	 
	 	By:	 
	 	Name:
	 	Title:
	 	 
	 	BENEFIT
    STREET PARTNERS L.L.C.
	 	 
	 	By:	                  
	 	Name:
	 	Title:Exhibit 10.4

 

 

 

CUSTODY AGREEMENT

 

 

 

dated as
of [●], 2020

by and between

 

FRANKLIN
BSP CAPITAL CORPORATION

(“Company”)

 

and

 

[U.S. BANK
NATIONAL ASSOCIATION]

(“Custodian”)

 

     

     

    

 

TABLE
OF CONTENTS

 

	 	 	PAge
	1.	DEFINITIONS	1
	2.	APPOINTMENT OF CUSTODIAN	6
	3.	DUTIES OF CUSTODIAN	6
	4.	REPORTING	13
	5.	DEPOSIT IN U.S. SECURITIES SYSTEMS	14
	6.	SECURITIES HELD OUTSIDE OF THE UNITED STATES	14
	7.	CERTAIN GENERAL TERMS	16
	8.	COMPENSATION OF CUSTODIAN	18
	9.	RESPONSIBILITY OF CUSTODIAN	18
	10.	SECURITY CODES	20
	11.	TAX LAW	20
	12.	EFFECTIVE PERIOD, TERMINATION AND AMENDMENT	21
	13.	REPRESENTATIONS AND WARRANTIES	21
	14.	PARTIES IN INTEREST; NO THIRD PARTY BENEFIT	22
	15.	NOTICES	22
	16.	CHOICE OF LAW AND JURISDICTION	23
	17.	ENTIRE AGREEMENT; COUNTERPARTS	23
	18.	AMENDMENT; WAIVER	23
	19.	SUCCESSOR AND ASSIGNS	23
	20.	SEVERABILITY	24
	21.	INSTRUMENT UNDER SEAL; HEADINGS	24
	22.	REQUEST FOR INSTRUCTIONS	24
	23.	OTHER BUSINESS	24
	24.	REPRODUCTION OF DOCUMENTS	24
	25.	MISCELLANEOUS	24

 

SCHEDULES

 

SCHEDULE A – Trade Confirmation

SCHEDULE
B – Initial Authorized Persons

 

    -i-

     

    

 

THIS CUSTODY
AGREEMENT (this “Agreement”) is dated as of [●], 2020 and is by and between FRANKLIN BSP CAPITAL CORPORATION
(and any successor or permitted assign), a corporation organized under the laws of the State of Delaware (the “Company”),
having its principal place of business at 9 West 57th Street, Suite 4920, New York, NY 10019, and [U.S. BANK NATIONAL ASSOCIATION]
(or any successor or permitted assign acting as custodian hereunder, the “Custodian”), a national banking association
having a place of business at [One Federal Street, Boston, MA 02110].

 

RECITALS

 

WHEREAS,
the Company is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a closed-end
management investment company, which has elected to do business as a business development company and is authorized to issue shares
of common stock;

 

WHEREAS,
the Company desires to retain [U.S. Bank National Association] to act as custodian for the Company;

 

WHEREAS,
the Company desires that the Company’s Securities (as defined below) and cash be held and administered by the 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 the Custodian or the relevant sub-custodian, including a Foreign Sub-custodian, is open for
business in the market or country in which a transaction is to take place.

 

“Cash
Account” means the trust account 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 deposit account shall be designated the “Franklin BSP Capital Corporation Cash Proceeds Account”.

 

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

 

“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 or Canadian 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.

 

“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 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, made by a bank or other financial institution 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
Checklist” means a list delivered to the Document Custodian in connection with delivery of a Loan to the Custodian 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.

 

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“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 to the Company.

 

“Participation”
means an interest in a Loan that is acquired indirectly by way of a participation from a selling institution.

 

“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 the initial public offering by the Company and any subsequent
offering by the Company of any class of securities issued by the Company, (ii) all 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 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.

 

“Proper
Instructions” means instructions (including Trade Confirmations) received by the 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:

 

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

 

(b)               
by electronic mail from an Authorized Person;

 

(c)               
in tested communication;

 

(d)               
in a communication utilizing access codes effected between electro mechanical or electronic devices; or

 

(e)               
such other means as may be agreed upon from time to time by the Custodian and the party giving such instructions, including
oral instructions.

 

“Required
Loan Documents” means, for each Loan:

 

(a)               
other than in the case of a Participation, an executed copy of the Assignment for such Loan, as identified on 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)               
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;

 

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(d)               
a copy of each related security agreement (if any) signed by the applicable Obligor(s), as identified on the Loan Checklist;

 

(e)               
a copy of the Loan Checklist, and

 

(f)                
a copy of each related guarantee (if any) then executed in connection with such Loan, as identified on the Loan Checklist.

 

“Securities”
means, collectively, the (i) investments, including Loans, acquired by the Company and delivered to the 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).

 

“Securities
Account” means the segregated trust account to be established 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 “Franklin BSP Capital Corporation Securities Custody Account”.

 

“Securities
Custodian” means the Custodian when acting in the role of a securities custodian hereunder.

 

“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).

 

“Shares”
means the shares of common stock issued by Franklin BSP Capital Corporation, a Delaware corporation.

 

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

 

“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).

 

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

 

“Subsidiary”
means, collectively, any wholly owned subsidiary of the Company.

 

“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 the Company from time to time.

 

“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 evidencing 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, Custodian, 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;

 

(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.

 

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2.          
APPOINTMENT OF CUSTODIAN

 

2.1.            
Appointment and Acceptance. The Company hereby appoints the Custodian as custodian of all Securities and cash owned
by the Company and the Subsidiaries (as applicable) (that has been delivered to the Custodian) at any 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.

 

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

 

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, the Custodian
has no responsibility for compliance with 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 at the direction 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, Subsidiary Securities and non-cash property held by the Custodian, as applicable, for
the account of the Company or Subsidiary (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 (including the Securities
and non-cash property of the other series of the Company, if applicable) and shall be identified as subject to this Agreement.
Any Account may contain any number of sub-accounts for the convenience of the Custodian or as required by the Company for convenience
in administering such accounts.

 

3.2.            
Securities Custody Account. The Custodian shall open and maintain in its trust department a segregated trust 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
3.3 (b), all Securities (other than Loans), cash 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.

 

3.3.            
Delivery of Securities to Custodian.

 

(a)               
The Company shall deliver, or cause to be delivered, to the Custodian all of the Company’s Securities, cash and other
investment assets, including (a) all 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
(b) all cash received by the Company for the issuance, at any time during such period, of Shares or other securities or in connection
with a borrowing by the Company. With respect to Loans, the 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. 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 Securities 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.

 

    6

     

    

 

	(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 (in its roles
                                         as, and at the address identified for, the Custodian and Document 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, and shall deliver to the Document Custodian (in its role as, and at the
                                         address identified for, the Document Custodian) the Required Loan Documents for all Loans,
                                         including the Loan Checklist.

 

		(ii)	Notwithstanding
                                         anything herein to the contrary, delivery of Loans acquired by the Company (or, if applicable,
                                         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 (or, in either case, its nominee) or a copy (which may be a
                                         facsimile copy) of an assignment agreement in favor of the Company (or the applicable
                                         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.

 

		(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.

 

    7

     

    

 

		(iv)	Contemporaneously
                                         with the acquisition of any Loan, the Company shall (i) cause the Required Loan Documents
                                         evidencing such Loan to be delivered to the Document Custodian; (ii) 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 and (iii) 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;
                                         (iv) take all actions reasonably necessary for the Company to acquire good title to such
                                         Loan; and (v) 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 Asset, and shall
                                         be entitled to update its records (as it may deem necessary or appropriate), or from
                                         the Company, on the basis of such information or notices received, without any obligation
                                         on its part independently to verify, investigate or recalculate such information.

 

3.4.            
Release of Securities.

 

(a)               
The Custodian or Document Custodian shall release and deliver, or direct its agents or sub-custodian to release and deliver,
as the case may be, Securities or Required 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 to be released, with such delivery and other information as may be necessary to enable the 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, unless otherwise directed
                                         by Proper Instructions:

 

		(A)	in
                                         accordance with the customary or established practices and procedures in the jurisdiction
                                         or market where the transactions occur, including 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;

 

    8

     

    

 

		(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;

 

		(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, its agents
                                         or its 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, its agents
                                         or its sub-custodian); and/or

 

		(ix)	for
                                         any other purpose, but only upon receipt of Proper Instructions and an officer’s
                                         certificate signed by an officer of the Company (which officer shall not have been the
                                         Authorized Person providing the 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 Franklin BSP Capital Corporation or an authorized committee thereof approving the
                                         delivery of such Proper Instructions.

 

    9

     

    

 

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, 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 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.

 

(b)               
Amounts held in the 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 request a withdrawal of amounts from the Cash Account, the Custodian shall
be entitled to liquidate, and shall have no liability for any loss incurred as a result of the liquidation of, any investment
of the funds credited to such account as needed to provide necessary liquidity. Investment 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.

 

3.7.            
Foreign Exchange

 

		(i)	Upon
                                         the receipt of Proper Instructions, the Custodian, its agents or its sub-custodians 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-custodians or any affiliates of the Custodian or the sub-custodians.
                                         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.

 

		(ii)	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.

 

    10

     

    

 

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 Cash Account
(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 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 account
                                         of the Company, including transactions executed with or through the Custodian, its agents
                                         or its sub-custodians, as contemplated by Section 3.7 above; and

 

		(iii)	for
                                         any other purpose 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.

 

    11

     

    

 

(b)               
At any time or times, the Custodian shall be entitled to pay (i) itself from the Cash Account, whether or not in receipt
of express direction or instruction from the Company, any amounts due and payable to it pursuant to Section 8 hereof, and (ii)
as otherwise permitted by Section 7.5, 9.4 or Section 12.5 below, provided, however, that in each case all such payments shall
be accounted for to the Company.

 

3.10.         
Proxies. 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 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.

 

3.11.         
Communications Relating to Securities. The Custodian shall transmit promptly to the Company all written information
(including 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. 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; and

 

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

 

in each case, at least
three (3) Business Days prior to the date on which such right or power is to be exercised. 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, with particular
attention to Section 31 of the 1940 Act, and Rules 31a-1 and 32a-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 and employees and agents of the Securities and Exchange Commission,
upon reasonable request and prior 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.

 

    12

     

    

 

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 trust 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”).

 

(b)               
With respect to each Subsidiary identified to the Custodian by the Company, there shall be established at the Custodian
a segregated trust 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, which account shall be designated the “[INSERT NAME OF SUBSIDIARY] Cash Proceeds
Account” (the “Subsidiary Cash Account”)

 

(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, 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).

 

4.          
REPORTING

 

(a)               
If requested by the Company, 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, 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, and (ii) a report
of settled trades of Securities for such Business Day.

 

(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 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 Foreign Sub-custodian appointed pursuant to Section 6.1.

 

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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 U.S. Securities System (other than to
the extent resulting from the gross negligence, willful misconduct or bad faith 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.)

 

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 Foreign Sub-custodian to hold the
Securities and other assets of the Company maintained outside the United States. If, after the initial approval of a Foreign Sub-custodian
by the board of directors of the Company in connection with this Agreement, the Custodian wishes to appoint other Foreign Sub-custodians
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 approve or disapprove of the proposed action.

 

6.2.            
Assets to be Held. The Custodian shall limit the Securities and other assets maintained in the custody of the Foreign
Sub-custodians 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 which 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

 

    14

     

    

 

6.4.        
Reports Concerning Foreign Sub-custodians. 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 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 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-custodians. 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, 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
will provide, in their entirety, the same or a greater level of care and protection for the Company’s assets as the specified
provisions, in their entirety.

 

6.7.         
Custodian’s Responsibility for Foreign Sub-custodians.

 

		(i)	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 custodians 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
                                         for certificated securities (if applicable), method of keeping custodial records, and
                                         security and data protection practices; (ii) whether the Foreign Sub-custodian has
                                         the requisite financial strength to provide reasonable care for the Company’s 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.

 

    15

     

    

 

		(ii)	At
                                         the end of each calendar quarter, 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.

 

		(iii)	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.

 

		(iv)	The
                                         Custodian’s responsibility with respect to the selection or appointment of Foreign
                                         Sub-custodians shall be limited to a duty to exercise reasonable care in the selection
                                         or 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 such costs, expenses, damages,
                                         liabilities, or claims from such Foreign Sub-custodian; provided that 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, or insolvency
                                         of a Securities System (including an Eligible Securities Depository), the Custodian shall
                                         make reasonable endeavors, in its discretion, to seek recovery from the Eligible Securities
                                         Depository.

 

7.             
CERTAIN GENERAL TERMS

 

7.1.         
No Duty to Examine Underlying Instruments. 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
(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 (at its sole option) 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.

 

    16

     

    

 

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); and the Company hereby represents and warrants that the true and accurate specimen signatures of such initial
Authorized Persons are set forth on Schedule B.

 

(b)               
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 minor
expenses of handling securities or other similar items relating to its duties under this agreement, provided that all such payments
shall be accounted for to the Company;

 

(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 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 or of 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
3:30 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 3:30 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).

 

    17

     

    

 

8.            
COMPENSATION OF CUSTODIAN

 

8.1.          
Fees. The Custodian shall be entitled to compensation for its services in accordance with the terms of that certain
fee letter dated [●], 2020, between the Company and the Custodian.

 

8.2.          
Expenses. The Company agrees to pay or reimburse to the Custodian upon its request from time to time all costs,
disbursements, advances, and expenses (including reasonable and documented out-of-pocket fees and expenses of legal counsel) 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 of its duties and services under this Agreement, from time to time (including costs and expenses
of any action deemed necessary by the 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. 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.

 

9.3.         
General Standards of Care. Notwithstanding any terms herein contained to the contrary, the acceptance by the Custodian
of its appointment 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)               
The 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 telecopier or 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 shall be entitled to presume the genuineness and due authority of any signature appearing thereon. The Custodian
shall not 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 shall examine the same to determine whether it
substantially conforms on its face to such requirements hereof.

 

    18

     

    

 

(b)               
Neither the Custodian nor any of its directors, officers or employees shall be liable to anyone 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 constitutes gross
negligence, willful misconduct or bad faith on its part and in breach of the terms of this Agreement. The Custodian shall not
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. The Custodian shall not 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 the Custodian be liable for any indirect, special or consequential damages (including lost profits) whether
or not it has been advised of the likelihood of such damages.

 

(d)               
The 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 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.

 

(e)               
The Custodian shall not be deemed to have notice of any fact, claim or demand with respect hereto unless actually known
by an officer working in its Corporate Trust Services group and charged with responsibility for administering this Agreement or
unless (and then only to the extent received) in writing by the 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 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 it shall be
furnished with acceptable indemnification. Nothing herein shall obligate the 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 right of the Custodian to take any action hereunder shall not be construed as duty.

 

(h)               
The Custodian may act or exercise its duties or powers hereunder through agents (including, for the avoidance of doubt,
sub-custodians) or attorneys, and the Custodian shall not be liable or responsible for the actions or omissions of any such agent
or attorney appointed and maintained with reasonable due care.

 

    19

     

    

 

(i)                
All indemnifications contained in this Agreement in favor of the Custodian shall survive the termination of this Agreement.

 

9.4.          
Indemnification; Custodian’s Lien.

 

(a)               
The Company shall and does hereby indemnify and hold harmless each of the Custodian and any Foreign Sub-custodian appointed
pursuant to Section 6.1 above for and from any and all costs and expenses (including reasonable and documented out-of-pocket 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, and any advances or disbursements made by the 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 Custodian’s duties
hereunder, or the relationship between the Company and the Custodian created hereby, other than such liabilities, losses, damages,
claims, costs and expenses as are directly caused by the Custodian’s own action or inaction constituting gross negligence,
fraud or willful misconduct.

 

(b)               
The Custodian shall have and is hereby granted a continuing lien upon and security interest in, and right of set-off against,
the Account, and any funds (and investments in which such funds may be invested) held therein or credited thereto from time to
time, whether now held or hereafter required, and all proceeds thereof, to secure the payment of any amounts that may be owing
to the Custodian under or pursuant to the terms of this Agreement, whether now existing or hereafter arising.

 

9.5.         
Force Majeure. Without prejudice to the generality of the foregoing, the Custodian shall be without liability to
the Company for any damage or loss resulting from or caused by events or circumstances beyond the Custodian’s reasonable
control 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 changes in applicable
law, regulation or orders.

 

10.          
SECURITY CODES

 

If the Custodian
issues 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 safeguard any security codes, passwords,
test keys or other security devices which the 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. 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.

 

    20

     

    

 

11.2.       
Foreign Tax Law. It shall be the responsibility of the Company to notify the Custodian of the obligations imposed
on the Company, or the Custodian as custodian of any Foreign Securities or related Proceeds, by the tax law of foreign (i.e.,
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, TERMINATION AND AMENDMENT

 

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 only be amended
by mutual written agreement of the parties hereto. This Agreement may be terminated by 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 either party to the other not later than ninety (90) 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.

 

12.3.        
Resignation. The Custodian may at any time resign under this Agreement by giving not less than ninety (90) days
advance written notice thereof to the Company.

 

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.

 

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

 

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 and warrants 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
and executed this Agreement so as to constitute its valid and binding obligation; and

 

(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 certificate of incorporation and bylaws and any applicable laws and regulations.

 

    21

     

    

 

13.2.       
Representations of the Custodian. The Custodian hereby represents and warrants to the Company that:

 

(a)               
it is qualified to act as a custodian pursuant to Section 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 and executed this Agreement so as to constitute its valid and binding obligations; and

 

(d)               
that it maintains business continuity policies and standards that include data file backup and recovery procedures that
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 19).

 

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 facsimile, telex, or by electronic mail, with a duplicate sent on the same day by first class mail, postage prepaid:

 

(a)           
if to the Company, to

 

Franklin BSP Capital
Corporation

c/o Benefit Street Partners L.L.C.

9 West 57th Street,
Suite 4920

New York, NY 10019

Attention: [●]

Email: [●]

Fax: [●]

 

(b)          
if to the Custodian (other than in its role as Document Custodian), to

 

[U.S. Bank National
Association]

[Corporate Trust Services

One Federal Street, 3rd Floor

Boston, MA 02110]

Ref: Franklin BSP Capital Corporation

Attention: [●]

Email: [●]

Fax: [●]

 

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(c)           
if to the Custodian solely in its role as Document Custodian, to

 

[U.S. Bank National
Association

[1719 Range Way

Florence, South Carolina 29501]

Mail Code: [Ex - SC – FLOR]

Ref: Franklin BSP Capital Corporation

Attn: [●]

E-mail: [●]

Facsimile No.: [●]

 

16.          
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 Commonwealth
of Massachusetts 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.

 

17.          
ENTIRE AGREEMENT; COUNTERPARTS

 

17.1.         
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, agreements or understandings,
oral or written between the parties to this Agreement relating to such matters.

 

17.2.         
Counterparts. This Agreement may be executed in any number of counterparts and all counterparts taken together shall
constitute one and the same instrument.

 

17.3.         
Facsimile Signatures. The exchange of copies of this Agreement and of signature pages by facsimile transmission
or pdf 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 facsimile or pdf shall be deemed to be their original signatures
for all purposes.

 

18.          
AMENDMENT; WAIVER

 

18.1.         
Amendment. This Agreement may not be amended except by an express written instrument duly executed by each of the
Company and the Custodian.

 

18.2.         
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.

 

19.          
SUCCESSOR AND ASSIGNS

 

19.1.         
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. Neither party shall be permitted to assign their rights
under this Agreement without the written consent of the other party; 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.

 

    23

     

    

 

19.2.         
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 shall be a party, or any corporation or association to which the Custodian transfers all or substantially
all of its corporate trust business, shall be the successor of the Custodian hereunder, and shall succeed to all of the rights,
powers and duties of the Custodian hereunder, without the execution or filing of any paper or any further act on the part of any
of the parties hereto.

 

20.          
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.

 

21.          
INSTRUMENT UNDER SEAL; HEADINGS

 

This Agreement
is intended to take effect as, and shall be deemed to be, an instrument under seal.

 

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) 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-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 or any of its 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 (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, facsimile or
further production shall likewise be admissible in evidence.

 

25.          
MISCELLANEOUS

 

The Company
acknowledges receipt of the following notice:

 

    24

     

    

 

“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.]

 

    25

     

    

 

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 the date written above.

 

	Witness:	 	FRANKLIN BSP CAPITAL CORPORATION
	 	 	 
	 	 	By: 
	Name:	 	Name: 
	Title:  	 	 Title:
	 	 	 
	Witness:  	 	[U.S. BANK NATIONAL ASSOCIATION]
	 	 	 
	 	 	By:
	Name:	 	 Name:
	Title:  	 	Title:

 

    26

     

    

 

SCHEDULE
A

 

(Trade Confirmation)

 

[See Attached.]

 

     

     

    

 

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):

 

	NAMES:	SPECIMEN
    SIGNATURE
	[●]	 
	[●]	 
	[●]	 
	[●]

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