Document:

Exhibit 4.1

 

Trade
Secret and Strictly Confidential

 

AFC
BDC INC.

 

SUBSCRIPTION
CHECKLIST

 

Please
read this checklist after completing the attached Subscription Booklet of AFC BDC INC. (the “Subscription Booklet”).

 

Please
check to ensure that you have completed the following tasks:

 

		☐	Have
    you filled in the name of the investor and the amount of its Capital Commitment on page 1 of Part 1 of the Subscription Booklet?

 

		☐	Have
    you completed the Investor Questionnaire in Part 2 of the Subscription Booklet?

 

		☐	Have
    you completed the Investor Data Sheet in Part 3 of the Subscription Booklet?

 

		☐	Have
    you signed the signature page in Part 4 of the Subscription Booklet?

 

		☐	Have
    you signed and completed the appropriate tax form as listed in Part 6 of the Subscription Booklet?

 

     

    Trade Secret and Strictly Confidential

    

 

 

 

 

 

 

 

 

 

 

AFC
BDC INC.

 

 

 

SUBSCRIPTION
BOOKLET

 

The
SHARES subscribed for pursuant to this Subscription Agreement are being offered pursuant to an exemption from the registration requirements
of the United States Securities Act of 1933, as amended (the “Securities Act”), and the securities laws of certain states
of the United States, and may not be sold, transferred, pledged or otherwise disposed of unless the transaction relating thereto shall
comply with or be exempt within the meaning of the Securities Act, and the rules and regulations of the United States Securities and
Exchange Commission adopted thereunder and of appropriate United States state authorities and applicable state securities laws. Investors
should be aware that they will be required to bear the financial risks of an investment in the companY for an indefinite period of time.
TRANSFER OF SHARES IS ALSO RESTRICTED BY THE TERMS OF THE OPERATIVE DOCUMENTS RELATED THERETO. 

 

 

 

 

 

 

 

 

 

 

     

    Trade Secret and Strictly Confidential

    

 

SUBSCRIPTION
INSTRUCTIONS

 

This
subscription agreement (the “Subscription Agreement”) relates to the offering of common stock (the “Shares”)
in AFC BDC Inc., a Maryland corporation (the “Company”). This Subscription Booklet contains the materials necessary
for you to subscribe for Shares. Prior to completing such materials, you should read the Confidential Private Placement Memorandum of
AFC BDC Inc. dated as of [●], 2022 (together with any appendices and supplements thereto, the “Memorandum”).
The Company expects to enter into separate subscription agreements (the “Other Subscription Agreements”) with other
investors (the “Other Investors,” and together with the Investor, the “Investors”), providing for
the sale of Shares to the Other Investors. This Subscription Agreement and the Other Subscription Agreements are separate agreements,
and the sales of Shares to the undersigned and the Other Investors are to be separate sales.

 

You
may subscribe for the Interests by taking the following steps:

 

1.
Read the Subscription Agreement of the Company (the “Subscription Agreement”) (Part 1);

 

2.
Fill in the name of the investor and amount of the Capital Commitment on the cover page of the Subscription Agreement (Part 1);

 

3.
Complete the Investor Questionnaire (Part 2);

 

4.
Complete the Investor Data Sheet (you must provide all information regarding your identity, including your name and tax identification
number or social security number and all contact information) (Part 3);

 

5.
Complete, sign and date the signature page (Part 4);

 

6.
Read the Notice of Privacy Policy and Practices of the Company, and AFC Advisor LLC, a Delaware limited liability company (the “Adviser”)
(Part 5)

 

7.
Complete the appropriate United States Internal Revenue Service (“IRS”) Form (Part 6);

 

8.
Read the Administrative Agreement and the Advisory Agreement (Part 7)

 

9.
Return the entire Subscription Booklet (including any unmarked pages) to:

 

Investors@advancedflowercapital.com

 

Or

 

By
Mail:

AFC
BDC Inc.

525
Okeechobee Blvd. Suite 1770

West
Palm Beach, FL 33401

 

10.
Please note that, if requested by the Company, you, and agents or persons acting in a representative capacity for you, may be required
to furnish evidence satisfactory to the Company that you have the authority to subscribe for Interests, that the subscription documents
have been duly executed by you and that you are an accredited investor and qualified purchaser as further provided in the Investor Questionnaire.

 

     

    Trade Secret and Strictly Confidential

    

 

11.
Questions regarding the subscription documents should be directed to:

 

Gabriel
A. Katz

Chief
Legal Officer, Chief Compliance Officer and Secretary

AFC
BDC Inc.

561.510.2390

Gabe@advancedflowercapital.com]

 

     

    Trade Secret and Strictly Confidential

    

 

 

 

 

 

 

 

 

 

 

PART
1

 

SUBSCRIPTION
AGREEMENT

 

 

 

 

 

 

 

 

 

 

     

    Trade Secret and Strictly Confidential

    

 

AFC
BDC INC.

 

SUBSCRIPTION
AGREEMENT

 

 

 

Name of Investor

 

$_________________

Amount of Capital Commitment

 

AFC
BDC INC.

525
Okeechobee Blvd, Suite 1770

West
Palm Beach, FL 33401

 

Ladies
and Gentlemen:

 

This
subscription agreement (together with the Investor Questionnaire and the Investor Data Sheet, collectively referred to herein as the
“Subscription Booklet”) is being executed and delivered in connection with the subscription by the undersigned (the
“Investor”) to purchase the number of shares of Common Stock, par value $0.01 per share (the “Shares”),
of AFC BDC Inc., a Maryland corporation (the “Company”), through periodic calls of all or a portion of capital amounts of
the Investor’s aggregate capital commitment (the “Capital Commitment”) in the amount set forth on the signature
page below. Capitalized terms used herein and not otherwise defined have the meanings ascribed to them in the Company’s Confidential
Private Placement Memorandum, as amended, restated and/or supplemented (the “Memorandum”), unless otherwise defined
herein.

 

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

 

1.
Subscription

 

(a)
Subject to the terms and conditions hereof, and in reliance upon the representations and warranties contained in this subscription agreement
(this “Subscription Agreement”), the undersigned (the “Investor”) irrevocably subscribes for and
agrees to purchase shares of Common Stock, (the “Shares”), of AFC BDC Inc., a Maryland corporation, on the terms and
conditions described herein, and in the Confidential Private Placement Memorandum of AFC BDC Inc. (together with any appendices and supplements
thereto, the “Memorandum”).

 

     

    Trade Secret and Strictly Confidential

    

 

(b)
With regard to the Company’s private offering of the Shares (the “Offering”), the Investor agrees to be bound
by all the terms and provisions of the Memorandum related to the Offering, the Company’s Amended and Restated Articles of Incorporation,
as amended from time to time (the “Charter”), the Company’s Amended and Restated Bylaws, as amended from time
to time (the “Bylaws”), the Investment Advisory Agreement with AFC Advisors, LLC (the “Adviser”),
the Company’s investment adviser (the “Advisory Agreement”), the Administration Agreement between the Company
and AFC Advisors, LLC, as amended from time to time (the “Administration Agreement” and together with the Memorandum,
the Charter, the Bylaws, the Advisory Agreement, the “Operative Documents”), together with this Subscription Agreement.
The Investor represents and warrants that it has received the Operative Documents. The Company expects to enter into separate subscription
agreements (the “Other Subscription Agreements”) with other investors (the “Other Investors,” and
together with the Investor, the “Investors”), providing for the sale of Shares to the Other Investors. This Subscription
Agreement and the Other Subscription Agreements are separate agreements, and the sales of Shares to the undersigned and the Other Investors
are to be separate sales.

 

(c)
The Company will file a registration statement on Form 10 (the “Registration Statement”) for the registration of the
Common Stock with the U.S. Securities and Exchange Commission (the “SEC”) under the Securities Exchange Act of 1934,
as amended (the “Exchange Act”). The Registration Statement is not the offering document pursuant to which the Company
is conducting the Offering and may not include all information regarding the Company contained in the Operative Documents. Accordingly,
in making its investment decision, the Investor should rely exclusively on information contained in the Memorandum and the other Operative
Documents, together with reports the Company will file under the Exchange Act from time to time.

 

(d)
The Investor agrees to purchase Shares for an aggregate purchase price equal to the amount set forth on the signature page hereof (the
“Capital Commitment”), payable at such times and in such amounts as required by the Company, under the terms and subject
to the conditions set forth herein. On each Drawdown Date (as defined below), the Investor agrees to purchase from the Company, and the
Company agrees to issue to the Investor, a number of Shares equal to the Drawdown Share Amount (as defined below) at an aggregate price
equal to the Drawdown Purchase Price (as defined below); provided, however, that in no circumstance will an Investor be required to purchase
Shares for an amount in excess of its Unused Capital Commitment (as defined below) or Drawdown Purchase Price (as defined below); provided,
however, that in no circumstance will an Investor be required to purchase Shares for an amount in excess of its Unused Capital Commitment
(as defined below).

 

“Drawdown
Purchase Price” shall mean, for each Drawdown Date, an amount in U.S. dollars determined by multiplying (i) the aggregate
amount of Capital Commitments being drawn down by the Company from all Investors on that Drawdown Date, by (ii) a fraction, the
numerator of which is the Unused Capital Commitment of the Investor and the denominator of which is the aggregate Unused Capital Commitments
of all Investors that are not Defaulting Investors or Excluded Investors (as defined below).

 

“Drawdown
Share Amount” shall mean, for each Drawdown Date, a number of Shares determined by dividing (i) the Drawdown Purchase
Price for that Drawdown Date by (ii) the Per Share NAV (as defined below) as of the Drawdown Date, subject to adjustment in accordance
with the procedures set forth in “II. Summary of Terms and Conditions — Drawdowns; Investment Period” and “VIII.
Determination of Net Asset Value” in the Memorandum (the “Adjustment Procedures”), with the resulting quotient
adjusted to the nearest whole number to avoid the issuance of fractional shares.

 

“Per
Share NAV” shall mean, for any date, the net asset value per Share determined in accordance with the procedures set forth in
“II. Summary of Terms and Conditions — Drawdowns; Investment Period” and “VIII. Determination of Net
Asset Value” in the Memorandum (as those procedures may be changed from time to time in a manner consistent with the limitations
of the 1940 Act), as of the last day of the Company’s fiscal quarter immediately preceding such date.

 

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“Unused
Capital Commitment” shall mean, with respect to an Investor, the amount of such Investor’s Capital Commitment as of any
date reduced by the aggregate amount of capital contributions made by that Investor at all previous Drawdown Dates pursuant to Section 1.01(b).

 

“Minimum
Commitment” shall mean the minimum initial Capital Commitment by any prospective purchaser of the Company’s common stock
is [●], subject to a determination by the Adviser, in its sole discretion, to waive such minimum requirement.

 

2.
Certain 1940 Act-Related Approvals 

 

By
executing this Subscription Agreement, the Investor, as a shareholder of a BDC, exercises a vote in favor of the following actions of
the Company:

 

(a)
The Company will maintain the minimum “asset coverage” ratio of 150%, as permitted by the 1940 Act. “Asset coverage”
has the meaning set forth in Section 18(h) of the 1940 Act and generally is a company’s total assets, less all liabilities and
indebtedness not represented by senior securities, divided by total senior securities representing indebtedness and, if applicable, preferred
stock.

 

(b)
Pursuant to the Advisory Agreement, the Company will pay to the Adviser an annual base management fee and an incentive fee, and provide
the services outlined in the Advisory Agreement.

 

3.
Closings 

 

(a)
The closing of the transactions contemplated by this subscription agreement will take place at [●] on the date set forth on the
signature page hereto (such date being the “Closing Date,” and the date upon which the first closing of any Subscription
Agreement occurs being referred to herein as the “Initial Closing Date” and the date of the last Closing prior to
the date on which the Adviser determines, in its sole discretion, to stop accepting Capital Commitments, the “Final Closing
Date”)). The Investor agrees to provide any information reasonably requested by the Company to verify the accuracy of the representations
contained herein, including without limitation the attached questionnaire. Promptly after the Closing Date, the Company will deliver
to the Investor or its representative, if the Investor’s subscription has been accepted, a countersigned copy of this Subscription
Agreement upon request.

 

(b)
The Company may enter into Other Subscription Agreements with Other Investors after the Closing Date, with any closing thereunder referred
to as a “Subsequent Closing” and any Other Investor whose subscription has been accepted at such Subsequent Closing
referred to as a “Subsequent Investor.”

 

(c)
At each Drawdown Date following any Subsequent Closing, all Investors, including Subsequent Investors, shall purchase Shares in accordance
with the provisions herein; provided, however, that notwithstanding the foregoing, the definition of Drawdown Share Amount and the provisions
of Section 5 herein, nothing in this Subscription Agreement shall prohibit the Company from issuing Shares to Subsequent Investors at
a per share price greater than the Per Share NAV as of the Drawdown Date, as adjusted pursuant to the Adjustment Procedures.

 

(d)
In the event that any Investor is permitted by the Company to make an additional capital commitment to purchase Shares on a date after
its initial subscription has been accepted, such Investor will be required to enter into a separate subscription agreement with the Company
and such other documents as may be requested by the Company, it being understood and agreed that such separate subscription agreement
will be considered to be an Other Subscription Agreement for the purposes of this Subscription Agreement.

 

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    Trade Secret and Strictly Confidential

    

 

4.
Drawdowns

 

(a)
Purchases of Shares will take place on dates selected by the Company in its sole discretion (each, a “Drawdown Date”)
and shall be made in accordance with the provisions of Section 1.

 

(b)
Prior to each Drawdown Date, the Company shall deliver to the Investor a notice (each, a “Drawdown Notice”) setting
forth (i) the aggregate purchase price for Shares being purchased on the Drawdown Date; (ii) the applicable Drawdown Purchase Price;
(iii) the estimated Drawdown Share Amount; (iv) Per Share NAV as of the applicable Drawdown Date, and (v) the account to which the Drawdown
Purchase Price should be wired. The Company shall deliver each Drawdown Notice to the Investor at least eight Business Days prior to
the Drawdown Date. On the Drawdown Date, if as a result of adjustments to the Per Share NAV in accordance with the Adjustment Procedures,
the estimated Drawdown Share Amount set forth in the Drawdown Notice is not the actual Drawdown Share Amount, the Company will deliver
to the Investor an additional notice setting forth the adjusted Per Share NAV and the actual Drawdown Share Amount.

 

(c)
For the purposes of this Subscription Agreement, the term “Business Day” means any day, other than Saturday, Sunday
or a federal holiday, and shall consist of the time period from 12:01 a.m. through 12:00 midnight Eastern time.

 

(d)
The delivery of a Drawdown Notice to the Investor shall be the sole and exclusive condition to the Investor’s obligation to pay
the Drawdown Purchase Price identified in each Drawdown Notice.

 

(e)
On each Drawdown Date, the Investor shall pay the Drawdown Purchase Price to the Company by bank wire transfer in immediately available
funds in U.S. dollars to the account specified in the Drawdown Notice.

 

(f)
Upon payment of the Drawdown Purchase Price to the Company, the Company shall issue to each Investor a number of Shares determined by
dividing (x) the Drawdown Purchase Price by (y) the Per Share NAV as of the Drawdown Date, subject to adjustment in accordance with the
Adjustment Procedures; provided, however, that notwithstanding the provisions of Sections 1.01(b) and 2, on the first Drawdown Date following
the Company’s acceptance of a Subsequent Investor’s Subscription Agreement, upon payment of the Drawdown Purchase Price by
such Subsequent Investor, the Company shall issue to such Subsequent Investor a number of Shares determined by dividing (x) the Drawdown
Purchase Price paid minus the Organizational Expense Allocation by (y) the Per Share NAV as of the Drawdown Date, subject to adjustment
in accordance with the Adjustment Procedures.

 

(g)
“Organizational Expense Allocation” means, with respect to an Investor, the product obtained by multiplying (i) a
fraction, the numerator of which is such Investor’s Capital Commitment and the denominator of which is the total Capital Commitments
received by the Company through such date by (ii) the total amount of organizational expenses spent by the Company in connection with
the Company’s formation.

 

(h)
The Company has appointed U.S. Bank Global Fund Services to act as transfer agent and registrar for the Shares.

 

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    Trade Secret and Strictly Confidential

    

 

(i)
At the earlier of (i) the date of a Liquidity Event (as defined below), if any, and (ii) the end of the Commitment Period (as defined
below), any Unused Capital Commitment (other than any Defaulted Commitment) shall automatically be reduced to zero, provided, however
that for two years following the end of the Commitment Period and prior to a Liquidity Event, Investors will remain obligated to fund
Drawdowns to the extent necessary to pay amounts due under Drawdown Notices that the Company may thereafter issue to: (a) pay Company
expenses, including management fees, amounts that may become due under any borrowings or other financings or similar obligations, or
indemnity obligations, (b) complete investments in any transactions for which there are binding written agreements as of the end of the
Commitment Period (including investments that are funded in phases), (c) fund follow-on investments made in existing portfolio companies
within three years from the end of the Commitment Period that, in the aggregate, do not exceed five percent (5%) of total Capital Commitments,
(d) fund obligations under any Company guarantee, and/or (e) as necessary for the Company to preserve its status as a “regulated
investment company” under Subchapter M of the Code. “Liquidity Event” means (i) a listing of the Company’s
common stock on a nationally recognized stock exchange (an “IPO”); or (ii) a Sale Transaction. A “Sale Transaction”
means (a) the sale of all or substantially all of the Company’s assets to, or other liquidity event with, another entity, (b) a
transaction or series of transactions, including by way of merger, consolidation, recapitalization, reorganization, (c) a wind-down or
dissolution. Until such time as the Board determines to cause the Company to conduct a Liquidity Event, the Company will remain a privately
offered BDC and, in its commercially reasonable judgment, may conduct repurchases of its shares of common stock from time to time. “Commitment
Period” shall mean the period during which unfunded capital may be drawn for any permitted purpose and commitments to new investments
can be made (including reinvestment of capital returned on the Company’s investments), will commence on the Initial Closing Date.
From time-to-time during the Company Term (as defined below), the Adviser may, in its sole discretion, permit one or more additional
closings (each, a “Subsequent Closing”) as additional Capital Commitments are obtained. The last closing (the “Final
Closing”) will occur prior to the date on which the Adviser determines, in its sole discretion, to stop accepting Capital Commitments.
Each admitted or existing investor increasing its Capital Commitments at each such Subsequent Closing will be required to purchase shares
of the Company with an aggregate purchase price necessary to ensure that all investors in the Company have generally contributed the
same percentage of their Capital Commitments to the Company immediately following such purchase (a “Catch-up Purchase”;
and such date, the “Catch-up Date”) and each such investor will be issued a number of shares of the Company based
on a per share purchase price determined by the Board of the Company (the “Board”). A Catch-up Purchase may be made
in multiple installments as determined by the Adviser based on the Company’s capital requirements. The per share purchase price
referred to above will be at least equal to the net asset value per share in accordance with the 1940 Act and relevant interpretations
thereunder. The Board may set the price per share above the net asset value per share based on a variety of factors, including without
limitation, the total amount of the Company’s organizational and other expenses that have accrued since the Initial Closing. The
term of the Company (the “Term”) will be indefinite until a Liquidity Event is effected at the sole discretion of
the Board is sooner dissolved by operation of law.

 

(j)
Upon the expiration of the Commitment Period, all investors will be released from any further obligation with respect to their unfunded
Capital Commitments, except to the extent necessary or appropriate to: (i) to pay, and/or establish reserves for, actual or anticipated
expenses, liabilities, including the payment or repayment of financings, indebtedness, extensions of credit or other obligations, contingent
or otherwise, and the management fee, and the incentive fee whether incurred before or after the end of the Commitment Period, (ii) to
fulfill investment commitments made or approved by the investment committee of the Adviser prior to the expiration of the Commitment
Period, (iii) to engage in hedging transactions, or (iv) to make additional investments in or in respect of existing borrowers (including
transactions to hedge interest rate or currency risks related to such follow-on investments).

 

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(k)
Notwithstanding anything to the contrary contained in this Subscription Agreement, the Company shall have the right (a “Limited
Exclusion Right”) to exclude any Investor (such Investor, an “Excluded Investor”) from purchasing Shares
from the Company on any Drawdown Date if, in the reasonable discretion of the Company, there is a substantial likelihood that such Investor’s
purchase of Shares at such time would (i) result in a violation of, or noncompliance with, any law or regulation to which such Investor,
the Company, the Adviser, any Other Investor or a portfolio company would be subject or (ii) cause the investments of investors that
are employee benefit plans or trusts subject to the fiduciary responsibility provisions of the U.S. Employee Retirement Income Security
Act of 1974, as amended (“ERISA”) (such plans or trusts referred to herein as “ERISA Plans”), or which
are plans within the meaning of section 4975(e)(1) of the U.S. Internal Revenue Code of 1986, as amended (the “Code”)
(including individual retirement accounts (“IRAs”) or Keogh plans covering only self-employed individuals (“Keogh
Plans”)), or which are deemed under ERISA or the Code to include assets of any such plan or arrangement (such plans, trusts
and accounts, “Plans”) to be “significant” and any assets of the Company to be considered “plan
assets” under ERISA or Section 4975 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”). Until
such time as the interests in the Company are considered “publicly-offered securities” within the meaning of the ERISA “plan
asset” regulations (DOL Reg. § 2510.3-101, as modified by Section 3(42) of ERISA) (the “Plan Asset Provisions”),
the Adviser shall use commercially reasonable efforts to conduct the affairs of the Company so that less than 25% of the value of all
classes of equity interests in the Company are held by “Benefit Plan Investors” (within the meaning of the Plan Asset
Provisions, “Benefit Plan Investors”), so that investment by Benefit Plan Investors will not be significant and the assets
of the Company will not be considered “plan assets” under ERISA. In the event that any Limited Exclusion Rights is exercised,
the Company shall be authorized to issue an additional Drawdown Notice to the non-Excused Investors to make up any applicable shortfall
caused by such Limited Exclusion Right.

 

5.
Remedies Upon Investor Default 

 

In
the event that an Investor fails to pay all or any portion of the Drawdown Purchase Price due from such Investor on any Drawdown Date
(such amount, together with the full amount of such Investor’s remaining Capital Commitment, a “Defaulted Commitment”)
and such default remains uncured for a period of 10 Business Days, the Company shall be permitted to declare such Investor to be in default
of its obligations under this Subscription Agreement (any such Investor, a “Defaulting Investor”) and shall be permitted
to pursue one or any combination of the following remedies:

 

(a)
The Company may prohibit the Defaulting Investor from purchasing additional Shares on any future Drawdown Date;

 

(b)
The Company may offer up to 100% of the Defaulting Investor’s Shares (the “Offered Shares”) first, to the Other
Investors (other than any defaulting Other Investors) and if such Other Investors do not purchase all of such Offered Shares, to third
parties for purchase at a price equal to the lesser of the then net asset value of such Shares or the highest price reasonably obtainable
by the Company, subject to such other terms as the Company in its discretion shall determine, which offer(s) shall be binding upon the
Defaulting Investor if the purchasing Other Investors or third parties agree to assume the related Capital Commitment with respect to
such Shares of the Defaulting Investor, including any portion then due and unpaid, and the Company pursuant to its authority under Section
10 may execute on behalf of the Defaulting Investor any documents necessary to effect the Transfer (as defined herein) of the Defaulting
Investor’s Shares pursuant to this section; provided, however, that notwithstanding anything to the contrary contained in this
Subscription Agreement, no Shares shall be transferred to any Other Investor pursuant to this section in the event that such Transfer
(as defined in herein) would (x) violate the Securities Act of 1933, as amended (the “1933 Act”), the 1940 Act or
any state (or other jurisdiction) securities or “Blue Sky” laws applicable to the Company or such Transfer (as defined in
Section 4.01(c)(i)), (y) constitute a non-exempt “prohibited transaction” under Section 406 of ERISA or Section 4975 of the
Code or (z) cause all or any portion of the assets of the Company to constitute “plan assets” under ERISA or Section 4975
of the Code (it being understood that this proviso shall operate only to the extent useful to avoid the occurrence of the consequences
contemplated herein);

 

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(c)
The Company may pursue any other remedies against the Defaulting Investor available to the Company, subject to applicable law. The Investor
agrees that Section 3.01 is solely for the benefit of the Company and shall be interpreted by the Company against a Defaulting Investor
in the discretion of the Company. The Investor further agrees that the Investor cannot and will not seek to enforce this section against
the Company or any shareholder in the Company; and

 

(d)
The Company shall be authorized to issue additional Drawdown Notices to non-Defaulting Investors to make up for any short-fall caused
by a Defaulting Investor’s failure to fund any Drawdown Notice, provided that no Investor shall be obligated to fund more than
its then Unused Capital Commitment.

 

6.
Distributions; Distribution Reinvestment Plan

 

(a)
As described more fully in the Memorandum, the Company generally intends to distribute, out of assets legally available for distribution,
substantially all of its available earnings, on a quarterly basis, subject to the discretion of the Board. If the Board authorizes, and
the Company declares, a cash dividend or distribution, the Company will automatically reinvest such cash dividend or distribution in
additional Shares pursuant the Company’s distribution reinvestment plan (the “Distribution Reinvestment Plan”),
unless a Shareholder specifically opts out of the Distribution Reinvestment to receive its cash dividends or distributions in cash. An
Investor that does not wish to participate in the Distribution Reinvestment Plan need take no action. If a Stockholder wishes to participate
in the Distribution Reinvestment Plan, they must notify the transfer agent in writing no later than ten calendar days prior to the record
date for any dividend or other distribution and such election will remain in effect until the Stockholder notifies the transfer agent.
No action will be required on the part of a Stockholder to receive his, her, or its dividend in cash.

 

(b)
The Company represents and warrants that it shall not make any in-kind distributions consisting of securities that are not Marketable
Securities or the Shares other than in connection with liquidation distributions conducted in connection with the dissolution of the
Company. “Marketable Securities” means securities that are traded or quoted on the New York Stock Exchange, American
Stock Exchange or the Nasdaq Global Market or on a comparable securities market or exchange now or in the future.

 

7.
Representations and Warranties of the Investor. The Investor hereby represents and warrants to, and agrees with the Adviser
and the Company that the following statements are true as of the date hereof and will be true as of the Closing Date applicable to the
Investor and as of each date on which the Investor makes any additional Capital Contributions to the Company:

 

(a)
The Investor’s Shares are being acquired for its own account solely for investment and not with a view to resale or distribution
thereof.

 

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(b)
The Investor acknowledges that the offering and sale of the Shares have not been and will not be registered under the Securities Act,
or any applicable state law or the applicable laws of any other jurisdiction, and are being made in reliance upon U.S. federal and state
exemptions for transactions not involving a public offering. In furtherance thereof, the Investor represents and warrants that: (I) it
is an “accredited investor” (as defined in Regulation D promulgated under the Securities Act); (II) the information relating
to the Investor set forth in the Investor Questionnaire attached hereto and forming a part of this Subscription Agreement is complete
and accurate as of the date set forth on the signature page hereof and will be complete and accurate as of the Closing Date applicable
to the Investor. The Investor agrees that it will not take any action that could have an adverse effect on the availability of the exemption
from registration provided by Regulation D promulgated under the Securities Act, with respect to the offer and sale of the Interest.

 

(c)
The Investor acknowledges that the Investor has been given the opportunity to (i) ask questions of, and receive answers from, the Company
or any of its Affiliates concerning the terms and conditions of the offering of Interests and other matters pertaining to an investment
in the Company and (ii) obtain any additional information necessary to evaluate the merits and risks of an investment in the Company
that the Company can acquire without unreasonable effort or expense. In considering a subscription for Interests, the Investor has evaluated
for itself the risks and merits of such investment and is able to bear the economic risk of such investment, including a complete loss
of capital, and in addition has not relied upon any representations made by, or other information (whether oral or written) furnished
by or on behalf of, the Company, or any director, officer, employee, agent or Affiliate of such Persons, other than as set forth in the
Operative Documents and this Subscription Agreement. The Investor has carefully considered and has, to the extent it believes necessary,
discussed with its own legal, tax, accounting and financial advisers the suitability of an investment in the Company in light of its
particular tax and financial situation, and has determined that the Interests being subscribed for hereunder are a suitable investment
for the Investor.

 

(d)
The Investor, if it is a corporation, limited liability company, trust, partnership or other entity, is duly organized, validly existing
and in good standing under the laws of its jurisdiction of organization and all other jurisdictions where it is authorized to conduct
business, and the execution, delivery and the performance by the Investor of the actions and undertakings set forth in this Subscription
Agreement and the Operative Documents are within the Investor’s corporate or other powers, as applicable, have been duly authorized
by all necessary corporate or other action on its behalf, require no action by or in respect of, or filing with, any governmental body,
agency or official (except as disclosed in writing to the Company), and do not and will not result in a breach of any of the terms, conditions
or provisions of, or constitute a default under, any provision of any charter, by-laws, trust agreement, indenture, mortgage, deed of
trust, credit, note or evidence of indebtedness, or any lease or other agreement, or any license, permit, franchise or certificate, regulation,
law, judgment, order, writ, injunction or decree to which the Investor is a party or by which the Investor or any of its properties is
bound. This Subscription Agreement has been duly executed and delivered by the Investor and constitutes a valid and binding agreement
of the Investor, enforceable against the Investor in accordance with their terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and
by general equitable principles (whether enforcement is sought by proceedings in equity or at law).

 

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(e)
If the Investor is a natural person, the execution, delivery and performance by the Investor of this Subscription Agreement is within
the Investor’s legal right, power and capacity, require no action by or in respect of, or filing with, any governmental body, agency
or official (except as disclosed in writing to the Company), and does not and will not result in a breach of any of the terms, conditions
or provisions of, or constitute a default under, any provision of applicable law or regulation or of any judgment, order, writ, injunction
or decree or any agreement or other instrument to which the Investor is a party or by which the Investor or any of the Investor’s
properties is bound. This Subscription Agreement has been duly executed and delivered by the Investor and constitutes a valid and binding
agreement of the Investor, enforceable against the Investor in accordance with their terms, except as enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally
and by general equitable principles (whether enforcement is sought by proceedings in equity or at law).

 

(f)
The Investor is not a defined contribution plan (such as a 401(k) plan) or a partnership or other investment vehicle (i) in which its
partners or participants have or will have any discretion to determine whether or how much of the Investor’s assets are invested
in any investment made or to be made by the Investor or (ii) that is otherwise an entity managed to facilitate the individual decisions
of its beneficial owners to invest in the Company.

 

(g)
If the Investor is (directly or indirectly) investing the assets of an employee benefit plan or retirement plan, account or arrangement
(a “Plan”) that is subject to the fiduciary responsibility provisions of Part 4 of Subtitle B of Title I of the United
States Employee Retirement Income Security Act of 1974, as amended from time to time (“ERISA”), Section 4975 of the
United States Internal Revenue Code of 1986, as amended from time to time (the “Code”), or any provisions of any federal,
state, local, non-U.S. or other laws or regulations that are similar to those provisions contained in such portions of ERISA or the Code
(collectively, “Similar Law”): (i) the decision to purchase the Interests were made on an arm’s length basis
by a “fiduciary” (within the meaning of Section 3(21) of ERISA and the regulations thereunder, or as defined under applicable
Similar Law) (a “Plan Fiduciary”) of the Plan that is independent from and unrelated to the Company, the Adviser or
any of their respective employees, representatives or Affiliates and that is duly authorized to make such an investment decision on behalf
of the Plan and is capable of evaluating the investment risks independently, both in general and with regard to the Plan’s prospective
purchase of an Interest; (ii) if the Investor is subject to ERISA or Section 4975 of the Code, such Investor’s decision to purchase
an Interest has been made by a Plan Fiduciary responsible for exercising independent judgment in connection with evaluating the investment
in the Company, which Plan Fiduciary is a fiduciary under ERISA or the Code, or both with respect to the decision to invest in the Company,
and is not the individual retirement account (“IRA”) owner; (iii) none of the Company, the Adviser or any of their
respective employees, representatives or Affiliates has undertaken to provide impartial investment advice, or to give advice in a fiduciary
capacity, and the Investor is aware of such persons’ interest in having the Investor invest in the Company; (iv) the Plan Fiduciary
has taken into consideration its fiduciary duties under ERISA or any applicable Similar Law, including the diversification requirements
of Section 404(a)(1)(C) of ERISA (if applicable), in authorizing the Investor’s purchase of the Interest, and has concluded that
such investment is prudent; (v) the Investor’s decision to invest in the Company and the acquisition of the Interests contemplated
thereby is in accordance with the terms of the Plan’s governing instruments and complies with all applicable requirements of ERISA,
the Code and any applicable Similar Law; (vi) the purchase, holding and disposition of the Interests by the Investor will not result
in a prohibited transaction under Section 406 of ERISA, Section 4975 of the Code or any applicable Similar Law for which an exemption
is not available; (vii) the Investor understands the Company’s investment objectives, policies and strategies and has not solicited
and has not received from the Company, the Adviser or any of their respective directors, officers, employees, agents or Affiliates thereof,
any evaluation or other investment advice on any basis in respect of the advisability of a subscription for Interests in light of the
Investor’s assets, cash needs, investment policies or strategy, overall portfolio composition or plan for diversification of assets
and it is not relying and has not relied on the Company, the Adviser or any of their respective directors, officers, employees, agents
or Affiliates thereof for any such advice; and (viii) assuming that the assets of the Company are not “plan assets” within
the meaning of the Plan Asset Regulation or any Similar Law, neither the Company, the Adviser nor any of their respective directors,
officers, employees, agents or Affiliates thereof is a “fiduciary” (within the meaning of ERISA or any applicable Similar
Law) of the Plan in connection with the Investor’s purchase of an Interest.

 

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(h)
If the Investor is (directly or indirectly) investing the assets of a Plan that is not subject to the fiduciary responsibility provisions
of Part 4 of Subtitle B of Title I of ERISA or the provisions of Section 4975 of the Code but is subject to the provisions of any Similar
Law, the underlying assets of the Company will not constitute “plan assets” of such Plan under the provisions of any such
Similar Law, and the Investor’s acquisition of the Interests will not otherwise subject the Company or the Adviser to any restrictions
or requirements imposed under any Similar Law.

 

(i)
The Investor was offered the Interests in the state or locality identified in response to Question 1 of the Investor Data Sheet under
the heading “Principal Place of Business of Investor,” and the Investor intends that the securities laws of that state
or locality shall govern the Investor’s subscription of the Interests.

 

(j)
The Investor agrees to furnish any additional information requested by the Company to assure compliance with applicable U.S. federal
and state securities laws in connection with the purchase and sale of the Interests, in particular, evidence with respect to the Investor’s
status as an “accredited investor” as defined under Section 501(a) of the Securities Act, including, but not limited to,
the following information: Internal Revenue Service forms that report the Investor’s income for the two most recent years (including,
but not limited to, Form W-2, Form 1099, Schedule K-1 to Form 1065, and Form 1040); a written representation from the Investor that he
or she has a reasonable expectation of reaching the income level necessary to qualify as an accredited investor during the current year;
bank statements; brokerage statements; other statements of securities holdings; certificates of deposit; tax assessments; appraisal reports
issued by independent third parties; and a consumer report from a nationwide consumer reporting agency. The Investor acknowledges that
it has completed the Investor Questionnaire and that the information contained therein is complete and accurate as of the date hereof.
The Investor represents and warrants that any information furnished or that will be furnished by the Investor to evidence its status
as an accredited investor is accurate and complete, and does not contain any misrepresentation or material omission.

 

(k)
Any part of the Investor’s Capital Commitment paid to the Company shall not directly or indirectly be derived from activities that
may contravene any applicable laws and regulations, including anti-money laundering laws and regulations.

 

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(l)
The Investor represents and warrants that, to the best of its knowledge, none of: (i) the Investor; (ii) any Person controlling or controlled
by the Investor; (iii) if the Investor is a privately held entity, any Person having a beneficial interest in the Investor; (iv) if the
Investor is not the beneficial owner of all of the Interests, any Person having a beneficial interest in the Interests; or (v) any Person
for whom the Investor is acting as agent or nominee in connection with the purchase of the Interests: (A) bears a name that appears on
the List of Specially Designated Nationals and Blocked Persons maintained by the U.S. Office of Foreign Assets Control (“OFAC”)1
from time to time; (B) is a foreign shell bank;2 or (C) resides in or whose subscription funds are or will be transferred
from or through an account in a non-cooperative jurisdiction.3 The Investor agrees to notify promptly the Company or the person
appointed by the Company to administer the Company’s anti-money laundering program, if applicable, of any change in information
affecting this representation and covenant.

 

(m)
The Investor has conducted due diligence and based on such due diligence reasonably believes that none of: (i) the Investor; (ii) any
Person controlling or controlled by the Investor; (iii) if the Investor is a privately held entity, any Person having a beneficial interest
in the Investor; (iv) if the Investor is not the beneficial owner of all of the Interests, any Person having a beneficial interest in
the Interests; or (v) any Person for whom the Investor is acting as agent or nominee in connection with the purchase of the Interests:
(A) is a senior foreign political figure,4 any member of a senior foreign political figure’s immediate family5
or any close associate6 of a senior political figure; (B) resides in, or is organized or chartered under the laws
of, a jurisdiction that has been designated by the U.S. Secretary of the Treasury under Section 311 or 312 of the USA PATRIOT Act as
warranting special measures due to money laundering concerns;7 or (C) will contribute subscription funds that originate
from, or will be or have been routed through, an account maintained by a foreign shell bank, an “off-shore bank,” or a bank
organized or chartered under the laws of a non-cooperative jurisdiction.

 

(n)
If the Investor is purchasing the Interests as agent, representative, intermediary/nominee or in any similar capacity for any other person,
or is otherwise requested to do so by the Company, it shall provide, upon request, a copy of its anti-money laundering policies, procedures
and controls (together, the “AML Policies”) to the Company. The Investor represents that its AML Policies comply with
all applicable anti-money laundering laws and regulations, that it is in compliance with its AML Policies and that its AML Policies have
been approved by counsel or internal compliance personnel reasonably informed of anti-money laundering policies and their implementation
and has not received a deficiency letter, negative report or any similar determination regarding its AML Policies from independent accountants,
internal auditors or some other person responsible for reviewing compliance with its AML Policies.
 

 

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

		2	A
foreign shell bank is a foreign bank without a physical presence in any country, other than a foreign bank that (1) is an affiliate of
a depositary institution, credit union or foreign bank that maintains a physical presence in the United States or a foreign country,
as applicable and (2) is subject to supervision by a banking authority in the country regulating such affiliated depositary institution,
credit union, or foreign bank.

		3	A
“non-cooperative jurisdiction” means any foreign country or territory that has been designated as non-cooperative
with international anti-money laundering principles or procedures by an intergovernmental group or organization, such as the Financial
Action Task Force on Money Laundering (“FATF”), of which the United States is a member and with which designation
the United States representative to the group or organization continues to concur. See < http://www.fatf-gafi.org/countries/#high-risk>
for FATF’s list of non-cooperative countries and territories.

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

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

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

		7	The
Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”) issues advisories regarding countries
of primary money laundering concern. FinCEN’s advisories are posted at <http://www.fincen.gov/pub_main.html>.

 

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(o)
The Investor has not been subject to any Regulation D Rule 506(d) disqualifying event8 and is not subject to any proceeding
or event that could result in any such disqualifying event (“Disqualifying Event”) that would either require disclosure
under the provisions of Rule 506(e) of the Securities Act or result in disqualification under Rule 506(d)(1) of the Company’s use
of the Rule 506 exemption. The Investor shall immediately notify the Company in writing if the Investor becomes subject to a Disqualifying
Event at any date after the date hereof. In the event that the Investor is, or becomes subject to a Disqualifying Event at any date after
the date hereof, the Investor agrees and covenants to use its best efforts to coordinate with the Company (i) to provide documentation
as reasonably requested by the Company related to any such Disqualifying Event and (ii) to implement a remedy to address the Investor’s
changed circumstances such that the changed circumstances will not affect in any way the Company’s or its Affiliates’ ongoing
and/or future reliance on the Rule 506 exemption under the Securities Act. The Investor acknowledges that, at the discretion of the Company,
such remedies may include, without limitation, the waiver of all or a portion of the Investor’s voting power in the Company and/or
the Investor’s withdrawal from the Company through the transfer or sale of its Interests. The Investor also acknowledges that the
Company may periodically request assurance that the Investor has not become subject to a Disqualifying Event at any date after the date
hereof, and the Investor further acknowledges and agrees that the Company shall understand and deem the failure by the Investor to respond
in writing to such requests to be an affirmation and restatement of the representations, warranties and covenants in this Section 2(q).

 

 

		8	The
Investor has been subject to a “Disqualifying Event” if the Investor:

 

		●	Has
    been convicted within ten years of the date hereof of any felony or misdemeanor (i) in connection with the purchase or sale of any
    security, (ii) involving the making of any false filing with the SEC or (iii) arising out of the conduct of the business of an underwriter,
    broker, dealer, municipal securities dealer, investment adviser or paid solicitor of purchasers of securities;

		●	Is
    subject to any order, judgment or decree of any court of competent jurisdiction entered within five years of the date hereof that
    presently restrains or enjoins the Investor from engaging or continuing to engage in any conduct or practice (i) in connection with
    the purchase or sale of any security, (ii) involving the making of any false filing with the SEC or (iii) arising out of the conduct
    of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser or paid solicitor of purchasers
    of securities;

		●	Is
    subject to a final order of a state securities commission (or an agency or officer of a state performing like functions); a state
    authority that supervises or examines banks, savings associations or credit unions; a state insurance commission (or an agency or
    officer of a state performing like functions); an appropriate federal banking agency; the U.S. Commodity Futures Trading Commission;
    or the National Credit Union Administration that (i) as of the date hereof, bars the Investor from (A) association with an entity
    regulated by such commission, authority, agency or officer, (B) engaging in the business of securities, insurance or banking or (C)
    engaging in savings association or credit union activities or (ii) constitutes a final order based on a violation of any law or regulation
    that prohibits fraudulent, manipulative or deceptive conduct entered within ten years of the date hereof;

		●	Is
    subject to any order of the SEC pursuant to Section 15(b) or 15B(c) of the Exchange Act or Section 203(e) or (f) of the Investment
    Advisers Act that as of the date hereof (i) suspends or revokes the Investor’s registration as a broker, dealer, municipal
    securities dealer or investment adviser, (ii) places limitations on the activities, functions or operations of the Investor or (iii)
    bars the Investor from being associated with any entity or from participating in the offering of any penny stock;

		●	Is
    subject to any order of the SEC entered within five years of the date hereof that presently orders the Investor to cease and desist
    from committing or causing a violation or future violation of (i) any scienter-based anti-fraud provision of the federal securities
    laws or (ii) Section 5 of the Securities Act;

		●	Is,
    as of the date hereof, suspended or expelled from membership in, or suspended or barred from association with a member of, a registered
    national securities exchange or a registered national or affiliated securities association for any act or omission to act constituting
    conduct inconsistent with just and equitable principles of trade;

		●	Has
    filed (as a registrant or issuer), or was or was named as an underwriter in, any registration statement or Regulation A offering
    statement filed with the SEC that, within five years of the date hereof, was the subject of a refusal order, stop order or order
    suspending the Regulation A exemption, or is presently the subject of an investigation or proceeding to determine whether a stop
    order or suspension order should be issued; or

		●	Is
    subject to a United States Postal Service false representation order entered within five years of the date hereof or is presently
    subject to a temporary restraining order or preliminary injunction with respect to conduct alleged by the United States Postal Service
    to constitute a scheme or device for obtaining money or property through the mail by means of false representations.

 

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(p)
This Subscription Agreement is not transferable or assignable by the Investor without the prior written consent of the Company.

 

(q)
The Investor acknowledges that neither the Company nor any other person offered to sell the Interests to it by means of any public offering
or form of general solicitation or advertising, including but not limited to: (a) any advertisement, article, notice or other communication
published in any newspaper, magazine or similar media or broadcast over television or radio; or (b) any seminar or meeting whose attendees
were invited by any general solicitation or general advertising.

 

(r)
The Investor is not, and has not been during the consecutive three month period preceding the date hereof, a director, officer or “affiliate”
within the meaning of Rule 144 promulgated under the Securities Act of the Company.

 

(s)
The Investor agrees that the foregoing representations and warranties will be deemed to be reaffirmed by the Investor at any time the
Investor purchases or otherwise acquires additional Interests and such purchase or acquisition will be evidence of such reaffirmation,
and if any of the foregoing representations or warranties cease to be true or accurate, or if they become misleading, the Investor will
promptly notify the Company of the facts pertaining to such changed circumstances.

 

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(t)
The Investor understands that the Company intends to elect to be: (i) regulated as a BDC under the 1940 Act and (ii) treated as a regulated
investment company (“RIC”) within the meaning of Section 851 of the U.S. Internal Revenue Code of 1986, as amended
(the “Code”), for U.S. federal income tax purposes; pursuant to the Company’s RIC election, the Investor will
be required to furnish certain information to the Company as required under Treasury Regulations § 1.852-6(a) and other regulations.
If the Investor is unable or refuses to provide such information directly to the Company, the Investor understands that it will be required
to include additional information on its income tax return as provided in Treasury Regulation § 1.852-7.

 

(u)
There is no legal action, suit, arbitration or other legal, administrative or other governmental investigation, inquiry or proceeding
(whether federal, state, local, or foreign) pending or, to the knowledge of the Investor, threatened against the Investor that, if adversely
determined, is reasonably likely to impair or otherwise affect the Investor’s ability to perform its obligations under this Subscription
Agreement or is reasonably likely to have a material adverse effect on the Investor ‘s financial condition.

 

(v)
Representations for Non-U.S. Persons: (i) If the Investor is not a “United States Person,” as defined within Regulation S under the 1933 Act, the Investor has heretofore notified the Company in writing of such status. (ii) The Investor will notify the Company immediately
if the Investor becomes a United States Person. (iii) The Investor represents and warrants that the Investor is acquiring the Shares
for its own account for investment purposes only and is not subscribing on behalf of or funding its commitment with funds obtained from
a United States Person. (iv) Except for offers and sales to discretionary or similar accounts held for the benefit or account of a non-U.S.
Person by a U.S. dealer or other professional fiduciary, all offers to sell and offers to buy the Interest were made to or by the Investor
while the Investor was outside the United States and at the time the Investor’s order to buy the Shares originated (and at the
time this Subscription Agreement was executed by the Investor) the Investor was outside the United States.

 

(w)
The Investor acknowledges that the Investor is aware and understands that: (i) No federal or state agency, and no agency of any non-U.S.
jurisdiction, has passed upon the Shares or made any finding or determination as to the fairness of this investment. The Memorandum has
not been filed with the SEC, any self-regulatory agency or with any securities administrator under state securities laws or the laws
of any non-U.S. jurisdiction. (ii)There are substantial risks incident to the purchase of Shares, including, but not limited to, those
summarized in the Memorandum.

 

(x)
Prior to a Liquidity Event, the Investor may not Transfer all or any fraction of its Shares or Capital Commitment without the prior written
consent of the Company. There are other substantial restrictions on the transferability of Shares or Capital Commitment under the Operating
Agreement, Charter, the Investment Advisory Agreement and under applicable law including, but not limited to, the fact that (i) there
is no established market for the Shares and it is possible that no public market for the Shares will develop; (ii) the Shares are not
currently, and Investors have no rights to require that the Shares be, registered under the 1933 Act or the securities laws of the various
states or any non-U.S. jurisdiction and therefore cannot be Transferred unless subsequently registered or unless an exemption from such
registration is available; and (iii) the Investor may have to hold the Shares herein subscribed for and bear the economic risk of this
investment indefinitely, and it may not be possible for the Investor to liquidate its investment in the Company.

 

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(y)
With respect to the tax and other legal consequences of an investment in the Shares, the Investor is relying solely upon the advice of
its own tax and legal advisors and not upon the general discussion of such matters set forth in the Memorandum.

 

(z)
The Company may request such additional information as it may deem necessary to evaluate the eligibility of the Investor to acquire Shares
and may request from time to time such information as it may deem necessary to determine the eligibility of the Investor to hold Shares
or to enable the Company to determine the compliance of the Company or the Adviser with applicable regulatory requirements or the Company’s
tax status, and the Investor agrees to promptly provide such information as may reasonably be requested.

 

(aa)
All the agreements, representations and warranties made by the Investor in this Subscription Agreement (including all of its attachments)
shall survive the execution and delivery hereof. The Investor shall immediately notify the Company upon discovering that any of the representations,
warranties or covenants made herein was false when made or if, as a result of changes in circumstances, any of the representations, warranties
or covenants made herein become false.

 

(bb)
The offering and sale of the Shares in non-U.S. jurisdictions may be subject to additional restrictions and limitations, and the Investor
represents and warrants that it is acquiring its Shares in compliance with all applicable laws, rules, regulations and other legal requirements
applicable to the Investor including, without limitation, the legal requirements of jurisdictions in which the Investor is resident and
in which such acquisition is being consummated. Furthermore, the Investor understands that all offerings and sales made outside of the
United States will be made pursuant to Regulation S under the Securities Act.

 

(cc)
Eversheds Sutherland (US) LLP will act as U.S. counsel to the Company, the Adviser and their Affiliates. In connection with this offering
of Shares and subsequent advice to such persons, Eversheds Sutherland (US) LLP will not represent the Investor or any other investors
in the Company in the absence of a clear and explicit written agreement to such effect between such counsel and the Investor. In the
absence of such an agreement, such counsel owes no duties to the Investor or any other investor in the Company (whether or not such counsel
has in the past represented, or is currently representing, such Investor or any other investor with respect to other matters). No independent
counsel has been retained to represent investors in the Company.

 

8.
Representations and Warranties of the Company

 

The
Company hereby represent and warrant to the Investor as of the date hereof that:

 

(a)
Formation and Standing. The Company is duly formed, validly existing and in good standing as a corporation under the laws of the
State of Maryland, has or will have prior to commencement of operations all requisite power and authority to carry on its business as
now conducted and as proposed to be conducted as described in the Offering Documents and this Subscription Agreement, and is duly qualified
to transact business and is or will be prior to commencement of operations in good standing in every jurisdiction in which the character
of its business makes such qualification necessary, except where the failure to so qualify would not have a material adverse effect on
its business operations.

 

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(b)
Authorization of Agreement. The execution, delivery and performance of this Subscription Agreement by the Company’s authorized
representative has been authorized by all necessary action on behalf of the Company, and this Subscription Agreement, when duly executed
and delivered by the Investor, will constitute a legal, valid and binding agreement of the Company, enforceable against the Company in
accordance with its terms, subject to any applicable bankruptcy, insolvency, reorganization, moratorium or similar laws now or hereafter
in effect relating to creditors’ rights generally or to general principles of equity.

 

(c)
Compliance with Laws and Other Instruments. The execution and delivery of this Subscription Agreement by an authorized representative
of the Company, the performance by the Company of its obligations under this Subscription Agreement and the consummation by the Company
of the transactions contemplated hereby: (A) does not conflict with or result in any breach or violation of or default under the organizational
documents governing the Company, (B) does not conflict with or result in any breach or violation of or default under any material agreement
or other instrument to which the Company is a party or by which the Company, or any of its properties or rights, are bound or any material
license, permit, franchise, judgment, decree, award, statute, rule or regulation applicable to the Company or its business, properties
or rights, other than such conflicts, breaches, violations or defaults that would not have a material adverse effect on the Company or
otherwise are not material to the performance of the obligations of the Company under this Subscription Agreement, (C) does not violate
any applicable material statute or regulation, other than such violations that would not have a material adverse effect on the Company
or otherwise are not material to the performance of the obligations of the Company under this Subscription Agreement and (D) does not
require the filing or registration with, or the approval, authorization, license or consent of, any court or governmental department,
agency or authority, or any third party which has not already been duly and validly made or obtained, except where the failure to make
such filing or registration or obtain such approval, authorization, license or consent would not have a material adverse effect on the
Company.

 

(d)
No Legal Action Pending. There is no legal action, suit, arbitration or other legal, administrative or other governmental investigation,
inquiry or proceeding (whether federal, state, local or foreign) pending or, to the knowledge of the Company, threatened against the
Adviser or the Company that, if adversely determined, is reasonably likely to have a material adverse effect on the Adviser or the Company.

 

9.
Understandings

 

The
Investor hereby understands, acknowledges and agrees with the Company as follows:

 

(a)
The information received by the Company and the information contained in this Subscription Booklet is confidential and non-public, and
all such information shall be kept in confidence and not disclosed to any third person (other than the Investor’s advisers or representatives)
for any reason, except to the extent required by applicable law or administrative or judicial process; provided, however,
that this obligation shall not apply to any such information that (i) is part of the public knowledge or literature and readily accessible
at the date hereof, (ii) becomes part of the public knowledge or literature and readily accessible by publication (except as a result
of a breach of this provision) or (iii) is received from third parties (except third parties who disclose such information in violation
of any confidentiality agreements or obligations entered into with the Company).

 

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(b)
The Investor agrees to provide promptly such information and execute and deliver such documents as may be necessary to comply with any
and all laws and regulations to which the Company or the Adviser may be subject and ensure the accuracy of the Investor’s representations
and warranties herein.

 

(c)
The Interests have not been approved or disapproved by the Securities and Exchange Commission (the “SEC”) or by any
other federal, state or foreign securities commission or regulatory authority, and none of the foregoing authorities has confirmed the
accuracy or determined the adequacy of the Subscription Booklet. Any representation to the contrary is a criminal offense.

 

(d)
The Interests are speculative investments and involve a high degree of risk. There is no public market for the Interests. The Company
has only been recently organized and has no financial or operating history. The transferability of the Interests is substantially restricted
both by the terms of the Operating Documents of the Company and applicable law. Investors in the Company have no rights to require that
the Company register the offer or sale of the Interests on behalf of the Investors or to assist the Investors in complying with any exemption
from registration under the Securities Act, any state law or the laws of any non-U.S. jurisdiction. Accordingly, it may not be possible
for the Investor to liquidate the Investor’s investment in the Company.

 

(e)
The Investor understands and agrees that in order to ensure compliance under applicable anti-money laundering laws and regulations, the
Company may require a detailed verification of the identity of a Person applying for Interests. Depending on the circumstances, a detailed
verification might not be required where: (i) the Investor pays their Capital Commitment from an account held in the Investor’s
name at a recognized financial institution; or (ii) the subscription is made through a recognized intermediary. The Company reserves
the right to request such information as is necessary to verify the identity of an Investor. In the event of delay or failure by the
Investor to produce any information required for verification purposes, the Company may refuse to accept the Investor’s subscription
until proper information has been provided.

 

(f)
The Investor covenants and agrees that it shall provide the Company at any time during the term of the Company, with such information
as the Company determines to be necessary or appropriate to (i) verify compliance with the anti-money laundering regulations of any applicable
jurisdiction or (ii) respond to requests for information concerning the identity of the Investor from any governmental authority, self-regulatory
organization or financial institution in connection with the Company’s anti-money laundering compliance procedures.

 

(g)
The Investor understands and agrees that if any of the representations and warranties set forth in Section 2 ceases to be true or if
the Adviser no longer reasonably believes that it has satisfactory evidence as to their truth, notwithstanding any other agreement to
the contrary, the Company may be obligated to freeze the Investor’s investment, either by prohibiting additional investments and/or
segregating the assets constituting the investment in accordance with applicable regulations, or the Investor’s investment may
immediately be involuntarily withdrawn by the Company, and the Company may also be required to report such action and to disclose the
Investor’s identity to OFAC or any other authority. If the Company is required to take any of the foregoing actions, the Investor
understands and agrees that it shall have no claim against the Company, the Adviser, or any of their respective Affiliates, members,
partners, shareholders, officers, directors, employees or agents for any form of damages as a result of any of the aforementioned actions.

 

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(h)
The Investor certifies under penalties of perjury that (i) (A) the Investor’s name, taxpayer identification or social security
number (if applicable) and address provided in the Investor Data Sheet are correct and (B) the Investor has completed and returned with
this Subscription Agreement the appropriate IRS Form(s), and (ii) (A) if the Investor is a “United States Person” (as defined
in the U.S. Tax Code), the Investor is not a non-resident alien individual, foreign corporation, foreign partnership, foreign trust or
foreign estate (as defined in the U.S. Tax Code), (B) if the Investor is not a “United States Person” (as defined in the
U.S. Tax Code), the Investor is a non-resident alien individual, foreign corporation, foreign partnership, foreign trust or foreign estate
(as defined in the U.S. Tax Code) and (C) the Investor will notify the Company within 60 days of any change in such status. The Investor
agrees to complete properly and provide to the Company in a timely manner any tax documentation that may be reasonably required by the
Company.

 

(i)
In connection with any borrowings by the Company, the Investor hereby agrees to deliver promptly to the Company such financial information
as is reasonably requested by the Company or the lender providing such financing, including in the case of an Investor that is (directly
or indirectly) investing the assets of a Plan that is subject to Title I of ERISA, such Plan’s Form 5500, such evidence of authority
for the execution, delivery and performance of its obligations under this Subscription Agreement as is reasonably requested by the Company
or such lender and such confirmations and acknowledgments as may be reasonably required by such lender which shall be in form and substance
reasonably satisfactory to the Company.

 

(j)
If the Investor is (directly or indirectly) investing the assets of a Plan that is subject to the fiduciary responsibility provisions
of Part 4 of Subtitle B of Title I of ERISA, Section 4975 of the Code or any Similar Law, the Investor hereby acknowledges and agrees
that, in the event the Company forms an entity through which the Investor will make its investment in the Company, by making a capital
contribution to such entity, the Investor shall be deemed to (i) direct the managing entity of such entity to invest the amount of such
capital in the Company and (ii) acknowledge that, during any period when the underlying assets of such entity are deemed to constitute
“plan assets” under ERISA, the Code or any Similar Law, the managing entity of such entity will act as a custodian with respect
to the portion of the assets of such entity that are deemed to be assets of the Plan but is not intended to be a fiduciary with respect
to such assets for purposes of ERISA, the Code or any Similar Law.

 

10.
Grant of Power of Attorney

 

(a)
The Investor, by its execution hereof, hereby irrevocably makes, constitutes and appoints the Company as its true and lawful agent and
attorney-in-fact (the “Attorney”), in its name, place, and stead with full power of substitution and full power and
authority in its name, place and stead, to make, execute, sign and file (i) any amendment or termination of the Company’s certificates
as required by law, and all such other instruments, documents and certificates as may from time to time be required by the laws of the
State of Maryland and the United States of America, or any other state or other relevant jurisdiction in which the Company shall determine
to conduct activities or to do business, or any political subdivision or agency thereof, to effectuate, implement, continue or terminate
the valid existence of the Company; (ii) any and all filings required to be made by the Investor under the Securities Exchange Act of
1934 (the “1934 Act”) with respect to any of the Company’s securities that may be deemed to be beneficially
owned by the Investor under the 1934 Act; (iii) all certificates and other instruments deemed necessary by the Company in order for the
Company to enter into any borrowing or pledging arrangement; (iv) all certificates and other instruments deemed necessary by the Company
to comply with the provisions of this Subscription Agreement and applicable law or to permit the Company to become or to continue as
a business development corporation; (v) operating agreements on Investor’s behalf; and (vi) all other instruments or papers not
inconsistent with the terms of this Subscription Agreement which may be required by law to be filed on behalf of the Company.

 

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(b)
The foregoing grant of authority is a special power of attorney coupled with an interest in favor of the Company and as such shall (i)
survive the dissolution, termination or bankruptcy of the Investor granting the same or the transfer of all or any portion of such Investor’s
Interests, as applicable, (ii) extend to such Investor’s successors, assigns and legal representatives and (iii) be automatically
revoked upon the bankruptcy of the Company.

 

11.
Indemnification

 

(a)
The Investor shall indemnify and hold harmless the Company, the Adviser and each officer, director, limited partner, member, manager,
employee, Affiliate, agent or control person of the Company and the Adviser(the “Indemnitees”) from and against any
and all expenses, losses, claims, damages, liabilities and actions, suits or proceedings (whether civil, criminal, administrative or
investigative and whether such action, suit or proceeding is brought or initiated by the Company, the Adviser or a third party) that
are incurred by or threatened, pending or completed against the Indemnitees or any of them (including, without limitation, legal fees
and expenses, judgments, fines and amounts paid in settlement) based upon, resulting from or otherwise in respect of (i) any actual or
alleged misrepresentation or misstatement of facts, or omission to represent or state facts, by or on behalf of the Investor concerning
the Investor, the Investor’s suitability or authority to invest or the Investor’s financial position in connection with the
offering of the Interests, including, without limitation, any such misrepresentation, misstatement or omission contained in or accompanying
the Investor Questionnaire, the Investor Data Sheet or any other document or information submitted by or on behalf of the Investor and
forming a part of this Subscription Agreement, or (ii) the breach of any of the Investor’s representations, warranties, covenants
or agreements set forth in this Subscription Agreement or any document delivered by the Investor in connection with its subscription
for Interests in the Company.

 

(b)
The reimbursement and indemnity obligations of the Investor under this Section 6 shall survive the Closing Date applicable to the Investor
and shall be in addition to any liability that the Investor may otherwise have (including, without limitation, liabilities under the
Charter) and shall be binding upon and inure to the benefit of any successors, assigns, heirs or legal representatives of any of the
Indemnitees, the Adviser and the Company.

 

12.
Consent to Electronic Delivery. The Investor consents to receive required disclosure documents with respect to the Shares via
email, the Internet, and/or another electronic reporting medium in lieu of paper copies. The Investor agrees that it will access the
consent statement that will be made available to the Investor and follow the instructions therein.

 

13.
Miscellaneous

 

(a)
This Subscription Agreement shall be enforced, governed and construed in all respects in accordance with the internal laws of the State
of Florida applicable to agreements made and to be wholly performed in such state. To the fullest extent permitted by law, the sole and
exclusive forum for any action, suit or proceeding with respect to this Subscription Agreement shall be a federal or state court located
in the state of Florida, provided that to the extent the appropriate court located in the state of Florida determines that it does not
have jurisdiction over such action, then the sole and exclusive forum shall be any federal or state court located in the state of Florida,
and each party hereto, to the fullest extent permitted by law, hereby irrevocably waives any objection that it may have, whether now
or in the future, to the laying of venue in, or to the jurisdiction of, any and each of such courts for the purposes of any such action,
suit or proceeding and further waives any claim that any such action, suit or proceeding has been brought in an inconvenient forum, and
each party hereto hereby submits to such jurisdiction and consents to process being served in any such action, suit or proceeding, without
limitation, by United States mail addressed to the party at the parties address specified herein or in the Investor Suitability Questionnaire.
EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED
TO THIS SUBSCRIPTION AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, TO THE FULLEST EXTENT PERMITTED BY LAW.

 

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(b)
Failure of the Company to exercise any right or remedy under this Subscription Agreement or any other agreement between the Company and
the Investor, or otherwise, or delay by the Company in exercising such right or remedy, will not operate as a waiver thereof.

 

(c)
This Subscription Agreement, the Investor Questionnaire and other agreements or documents referred to herein contain the entire agreement
of the parties with respect to the subscription for Interests. There are no representations, warranties, covenants or other agreements
except as stated or referred to herein and in such other agreements or documents.

 

(d)
This Subscription Agreement may be executed in counterparts with the same effect as if the parties executing the counterparts had all
executed one counterpart. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying
with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall
be deemed to have been duly and validly delivered and be valid and effective for all purposes.

 

(e)
Neither this Subscription Agreement nor any provisions hereof shall be waived, modified, discharged or terminated except by an instrument
in writing signed by the party against whom any waiver, modification, discharge or termination is sought.

 

(f)
Except as otherwise provided herein, this Subscription Agreement shall be binding upon and inure to the benefit of the parties and their
successors and permitted assigns. If the Investor is more than one Person, the obligations of the Investor shall be joint and several,
and the representations, warranties, covenants, agreements and acknowledgments herein contained shall be deemed to be made by and be
binding upon each such Person and its successors and permitted assigns.

 

14.
Funds-of-Funds. If the Investor is a private fund-of-funds (or other similar private collective investment vehicle), the Investor
agrees that the Investor, its general partner and/or investment manager (or their equivalents) and their respective Affiliates may not
reference the Company, the Adviser or any of their Affiliates in any offering document, marketing material or similar disclosure prepared
by or at the direction of, or with the cooperation of, the Investor, its general partner and/or investment manager (or their equivalents)
or any of their respective Affiliates without the prior written consent of the Company, which may be given or withheld in the Company’s
sole discretion.

 

15.
Acceptance of Potential Remedies. The Investor has read, is familiar with and understands the nature and scope of the rights and
remedies provided to the Company as set forth in the Operative Documents in the event of failure to pay or perform any obligations thereunder
when due, and is prepared to accept the exercise against the Investor of such rights and remedies in the event of such failure on the
Investor’s part.

 

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16.
Acceptance or Rejection. At any time prior to the Closing Date, notwithstanding the Investor’s prior receipt of a notice
of acceptance of the Investor’s subscription, the Company shall have the right to accept an amount equal to or less than the subscribed
amount, or reject this subscription, for any reason whatsoever. In the event of rejection of this subscription, the Company promptly
thereupon shall return to the Investor the copies of this Subscription Agreement and any other documents submitted herewith (but the
Company shall have the right to retain a photocopy for its records), and this Subscription Agreement shall have no further force or effect
thereafter.

 

17.
Modification. Neither this Subscription Agreement nor any provisions hereof shall be modified, changed, discharged, waived or
terminated except by an instrument in writing signed by the party against whom any modification, change, discharge, waiver or termination
is sought.

 

18.
Notices. All notices, consents, requests, demands, offers, reports, and other communications required or permitted to be given
pursuant to this Subscription Agreement shall be in writing and shall be given, made or delivered (and shall be deemed to have been duly
given, made or delivered upon receipt) by personal hand-delivery, by facsimile transmission, by electronic mail, by mailing the same
in a sealed envelope, registered first-class mail, postage prepaid, return receipt requested, or by air courier guaranteeing overnight
delivery, addressed, if to the Company, to: Gabriel A. Katz, and, if to the Investor, to the address set forth in the Investor Questionnaire.
The Company or the Investor may change its address by giving notice to the other in the manner described herein.

 

19.
Successors. Except as otherwise provided herein, this Subscription Agreement and all of the terms and provisions hereof will be
binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, successors, trustees and
legal representatives. If the Investor is more than one person, the obligation of the Investor shall be joint and several and the agreements,
representations, warranties, and acknowledgments herein contained will be deemed to be made by and be binding upon each such person and
such person’s heirs, executors, administrators, successors, trustees and legal representatives.

 

20.
Entire Agreement; No Third-Party Beneficiaries. This Subscription Agreement constitutes the entire agreement of the parties hereto
with respect to the subject matter hereof, supersedes any prior agreement or understanding among them with respect to such subject matter,
and is not intended to confer upon any person other than the parties hereto and any lender under a Subscription Facility any rights or
remedies hereunder. The foregoing limitation, however, shall not prohibit any Other Investor from enforcing remedies upon investor default
against any defaulting Investor.

 

21.
Assignability. This Subscription Agreement is not transferable or assignable by the Investor. Any purported assignment of this
Subscription Agreement will be null and void.

 

22.
Signature. By executing the signature page to this Subscription Agreement, the Investor agrees to be bound by the foregoing and
the Operative Documents.

 

23.
Distributions. Distributions to the Investor in respect of its Interests shall be made as specified in the Investor Data Sheet
or as otherwise specified in writing by the Investor to the Company.

 

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    Trade Secret and Strictly Confidential

    

 

24.
Confidentiality. The Investor acknowledges that the Operative Documents and other information relating to the Company has been
submitted to the Investor on a confidential basis for use solely in connection with the Investor’s consideration of the purchase
of Shares. The Investor also acknowledges that it may receive or have access to confidential proprietary information concerning the Company,
including, without limitation, portfolio positions, valuations, information regarding potential investments, financial information, trade
secrets and the like which is proprietary in nature and non-public. The Investor agrees that, without the prior written consent of the
Company (which consent may be withheld at the sole discretion of the Company), the Investor shall not (a) reproduce the Memorandum or
any other information relating to the Company, in whole or in part, or (b) disclose the Memorandum or any other information relating
to the Company to any person who is not an officer or employee of the Investor who is involved in its investments, or partner (general
or limited) or affiliate of the Investor (it being understood and agreed that if the Investor is a pooled investment fund, it shall only
be permitted to disclose the Memorandum or other information related to the Company to its limited partners if the Investor has required
its limited partners to enter into confidentiality undertakings no less onerous than the provisions of this Section), except to the extent
(1) such information is in the public domain (other than as a result of any action or omission of Investor or any person to whom the
Investor has disclosed such information), (2) such information is required by applicable law or regulation to be disclosed or (3) it
is necessary to disclose such information to the Investor’s professional advisors (including the Investor’s auditors and
counsel), so long as such professional advisors are advised of the confidentiality obligations contained herein. The Investor further
agrees to return the Memorandum and any other information relating to the Company if no purchase of Shares is made or upon the Company’s
request therefore. The Investor acknowledges and agrees that monetary damages would not be sufficient remedy for any breach of this section
by it, and that in addition to any other remedies available to the Company in respect of any such breach, the Company shall be entitled
to specific performance and injunctive or other equitable relief as a remedy for any such breach. Notwithstanding anything to the contrary
herein, the Investor (and each employee, representative or other agent of the Investor) may disclose to any and all persons, without
limitation of any kind, the tax treatment and tax structure of the Company; and any of the Company’s transactions and all materials
of any kind (including, without limitation, opinions and other tax analyses) that are provided to the Investor relating to such tax treatment
and tax structure, it being understood and agreed for this purpose that (x) the name of, or any other identifying information regarding,
(i) the Company or any existing or future investor (or any affiliate thereof) in the Company, or (ii) any investment or transaction entered
into by the Company or (y) any performance information relating to the Company or its investments do not constitute “tax treatment”
or “tax structure”.

 

25.
Necessary Acts, Further Assurances. The parties shall at their own cost and expense execute and deliver such further documents
and instruments and shall take such other actions as may be reasonably required or appropriate to evidence or carry out the intent and
purposes of this Subscription Agreement or to show the ability to carry out the intent and purposes of this Subscription Agreement.

 

26.
No Joint Liability Among Company and Adviser. The Company shall not be liable for the fulfillment of any obligation or the accuracy
of any representation of the Adviser under or in connection with this Subscription Agreement, and the Adviser shall not be liable for
the fulfillment of any obligation or the accuracy of any representation of the Company under or in connection with this Subscription
Agreement. There shall be no joint and several liability of the Company and the Adviser for any obligation under or in connection with
this Subscription Agreement.

 

27.
Electronic Delivery of Communications. The Investor hereby acknowledges and agrees that the Company and/or the Adviser may, but
is not required to, deliver and make reports, statements and other communications, including, without limitation, the Operative Documents,
the Subscription Documents, Form 1099s, other tax related information and documentation, proxy materials, annual and quarterly reports,
investor communications, account statements, drawdown notices and other required reports (“Account Communications”),
available to the Investor in electronic form, such as e-mail or by posting on a web site. It is the Investor’s affirmative obligation
to notify the Company in writing if the Investor’s e-mail address(es) listed in Section A of the Investor Suitability Questionnaire
change(s).

 

28.
Survival. The representations, warranties, acknowledgments and covenants herein and in the Investor Suitability Questionnaire
shall, in the event this subscription is accepted, survive such acceptance and the formation and dissolution of the Company.

 

*     *     *     *     *

 

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PART
2

 

INVESTOR QUESTIONNAIRE

 

 

 

 

 

 

 

 

 

 

     

    Trade Secret and Strictly Confidential

    

 

INVESTOR
QUESTIONNAIRE

 

Purpose
of this Questionnaire

 

The
information set forth herein is necessary to enable the Company, the Adviser to comply with certain laws and regulations. The Company
must determine that an Investor meets certain suitability requirements before selling (or, in some jurisdictions, offering) Interests
to such Investors. This Investor Questionnaire does not constitute an offer to sell or a solicitation of an offer to buy the Interests
or any other security.

 

Answers
will be kept strictly confidential at all times. The Investor understands, however, that the Company may present this Investor Questionnaire
to certain parties, including, without limitation, counsel to the Company and applicable governmental authorities.

 

Please
complete as indicated and answer all questions.

 

*     *     *     *
     *

 

As
soon as the Investor completes this Investor Questionnaire,

PLEASE proceed to “Investor Data Sheet” (Part 3).

 

     

    Trade Secret and Strictly Confidential

    

 

	A.	ERISA
                                            Questions

 

		1.	The
    Investor is (directly or indirectly) investing the assets of (i) an “employee benefit plan” (as defined in Section 3(3)
    of ERISA), whether or not subject to the fiduciary responsibility provisions of Part 4 of Subtitle B of Title I of ERISA, or (ii)
    a “plan” (as defined in Section 4975(e)(1) of the Code), whether or not subject to Section 4975 of the Code.9

 

☐
Yes         ☐ No

 

If
the answer is “No” to Question 1 above, please skip to Question 11 below.

 

		2.	The
    Investor is an “employee benefit plan” (as defined in Section 3(3) of ERISA) that is subject to the fiduciary responsibility
    provisions of Part 4 of Subtitle B of Title I of ERISA (an “ERISA Plan”).10

 

☐
Yes         ☐ No

 

		3.	The
    Investor is a “plan” (as defined in Section 4975(e)(1) of the Code) to which Section 4975 of the Code applies (a “Code
    Plan”), including an individual retirement account.

 

☐
Yes         ☐ No

 

		4.	The
    Investor is (i) a group trust that is exempt from taxation under Section 501(a) of the Code pursuant to the principles of Revenue
    Ruling 81-100, 1981-1 C.B. 326, (ii) a common or collective trust fund of a bank, or (iii) a separate account of an insurance company
    (other than a separate account that is maintained solely in connection with fixed contractual obligations of the insurance company
    under which the amounts payable, or credited, to any plan investing in the account and to any participant or beneficiary thereof,
    including an annuitant, are not affected in any manner by the investment performance of the separate account), and one or more ERISA
    Plans or Code Plans hold an interest in the Investor.

 

☐
Yes         ☐ No

 

 

	9	As
defined in Section 3(3) of ERISA, an “employee benefit plan” would include any plan, fund, or program established or maintained
by an employer and/or an employee organization that (i) provides retirement income for employees or otherwise results in a deferral of
income by employees for periods extending to the termination of covered employment or beyond or (ii) is maintained for the purpose of
providing its participants or their beneficiaries with medical benefits, vacation benefits, or benefits in the event of sickness, accident,
disability, death or unemployment. As defined in Section 4975(e)(1) of the Code, a “plan” would include (i) a trust created
or organized in the United States that forms part of a tax-qualified stock bonus, pension, or profit-sharing plan described in Section
401(a) of the Code (including a plan covering only self-employed individuals) and which is exempt from taxation under Section 501(a)
of the Code and (ii) an individual retirement account or Roth IRA described in Section 408(a) or Section 408A of the Code.

	10	Employee
benefit plans that are not subject to such fiduciary responsibility provisions of Part 4 of Subtitle B of Title I of ERISA would include
plans that are (i) established or maintained by the government of the United States or by any state or local government or political
subdivision thereof, (ii) established or maintained by a church or by a convention or association of churches which is exempt from tax
under Section 501 of the Code (unless an election has been made pursuant to Section 410(d) of the Code to have the participation, vesting
and funding requirements of the Code apply to such plan), or (iii) maintained outside the United States primarily for the benefit of
persons substantially all of whom are nonresident aliens.

 

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		5.	The
    Investor is an insurance company and is purchasing its Interests with funds allocated to a general account the underlying assets
    of which include “plan assets” of an ERISA Plan or Code Plan pursuant to the U.S. Supreme Court’s decision in John
    Hancock Mutual Life Insurance Co. v. Harris Trust & Savings Bank, 510 U.S. 83 (1993).

 

☐
Yes         ☐ No

 

		6.	The
    Investor is an entity, other than an entity described in Questions 4 or 5 above, whose underlying assets include “plan assets”
    of an ERISA Plan or Code Plan by reason of investment in the Investor by one or more “benefit plan investors” (as defined
    in Section 3(42) of ERISA).11

 

☐
Yes         ☐ No

 

		7.	If
    the Investor answered “Yes” to Questions 2, 3, 4, 5 or 6 above, the portion of the Investor’s investment in the
    Company representing the assets of ERISA Plans or Code Plans, from the date hereof through and including the date on which the Investor
    disposes of the Interest, will not exceed the following percentage.

 

_____%

 

		8.	The
    Investor is a “governmental plan” (as defined in Section 3(32) of ERISA).

 

☐
Yes         ☐ No

 

		9.	The
    Investor is an “employee benefit plan” (as defined in Section 3(3) of ERISA) that is maintained outside the United States
    primarily for the benefit of persons substantially all of whom are nonresident aliens with respect to the United States, as described
    in Section 4(b)(4) of ERISA.

 

☐
Yes         ☐ No

 

 

	11	In
general, if the Investor is neither an “operating company” (as defined in U.S. Department of Labor Regulation § 2510.3-101(c))
nor an investment company registered under the Investment Company Act, its underlying assets will include “plan assets” of
an ERISA Plan or Code Plan if, immediately after the most recent acquisition of any equity interest in the Investor, 25% or more of the
total value of any class of equity interests in the Investor is held by benefit plan investors. As defined in Section 3(42) of ERISA,
the term “benefit plan investor” includes (i) any ERISA Plan that is subject to Part 4 of Title I of ERISA, (ii) any Code
Plan, and (iii) any entity whose underlying assets include “plan assets” by reason of investment in the entity by other benefit
plan investors (but only to the extent of the percentage of equity interests of the entity that are held by benefit plan investors).
For purposes of determining whether this 25% threshold has been met or exceeded, the value of any equity interests in the Investor that
are held by a person (other than a benefit plan investor) who has discretionary authority or control with respect to the assets of the
Investor, or any person who provides investment advice for a fee (direct or indirect) with respect to such assets, or any affiliate of
such a person, is disregarded.

 

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		10.	If
    the Investor answered “Yes” to Questions 8 or 9 above, the Investor is subject to provisions of any U.S. federal, state,
    local, non-U.S. or other laws or regulations that are similar to the fiduciary responsibility provisions of Part 4 of Subtitle B
    of Title I of ERISA and/or the provisions of Section 4975 of the Code.

 

☐
Yes         ☐ No

 

		11.	The
    Investor is either (a) a person or entity that has discretionary authority or control with respect to the assets of the Company (as
    opposed to the assets of the Investor) or that provides investment advice for a fee (direct or indirect) with respect to the assets
    of the Company (as opposed to the assets of the Investor), or (b) an affiliate of any such person or entity described in clause (a)
    of this Question 11.

 

☐
Yes         ☐ No

 

		B.	Accredited
                                            Investor Questions

 

Please
indicate the basis of the Investor’s status as an “accredited investor” (as defined in Regulation D promulgated under
the Securities Act) by answering the following questions.

 

Please
proceed to “Section C. Qualified Purchaser Questions” as soon as any one of the following boxes is checked.

 

FOR
INDIVIDUALS:

 

		1.	The
    Investor is a natural person and:

 

	 	☐	(a)	Had
    an individual annual income in each of the two most recent years in excess of $200,000, and reasonably expects
    to have an individual annual income in the current year in excess of $200,000.
	 	 	 	 
	 	☐	(b)	Had,
    together with the Investor’s spouse, joint annual income in excess of $300,000 in each of the two most
    recent years, and reasonably expects their joint annual income in the current year to exceed $300,000.
	 	 	 	 
	 	☐	(c)	Has
    an individual net worth or joint net worth with the Investor’s spouse (excluding the value of the primary residence of the
    Investor and the related amount of indebtedness secured by such residence up to the fair market value of such residence, and deducting
    as a liability any indebtedness secured by such residence in excess of the fair market value of such residence) in excess of $1,000,000.
	 	 	 	 
	 	☐	(d)
    	Is
    a knowledgeable employee of the Company, as defined in Rule 3c-5(a)(4) under the Investment Company Act of 1940.

 

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	 	☐	(e)	Currently
    holds one or more valid professional certifications, designations or other credentials that have been designated by the SEC and can
    demonstrate that the Investor currently holds such designated certifications and can demonstrate that they have passed the required
    examinations and the certifications are active in regards to the Series 7, Series 82, or Series 65.

 

FOR
ENTITIES:

 

		2.	The
    Investor is an entity – i.e., a corporation, partnership, limited liability company or other entity (other than a trust)
    – and:

 

	 	☐	(a)	The Investor is a corporation, partnership, limited liability company, a Massachusetts or similar business trust, or an organization described in Section 501(c)(3) of the Code, in each case not formed for the specific purpose of acquiring the Interests and with total assets in excess of $5,000,000.
	 	 	 	 
	 	 	(b)	The Investor is one of the following institutional investors as described in Rule 501(a) adopted by the SEC under the Securities Act:
	 	 	 	 
	 	☐	 	(i)	A
    “bank” (as defined in Section 3(a)(2) of the Securities Act) or a “savings and loan association or other institution”
    (as defined in Section 3(a)(5)(A) of the Securities Act), whether acting in its individual or fiduciary capacity.
	 	 	 	 	 
	 	☐	 	(ii)	A
    broker or dealer registered pursuant to Section 15 of the United States Securities Exchange Act of 1934, as amended (the “Exchange
    Act”).
	 	 	 	 	 
	 	☐	 	(iii)	An
    “insurance company” (as defined in Section 2(13) of the Securities Act).
	 	 	 	 	 
	 	☐	 	(iv)	An
    investment company registered under the Investment Company Act or a “business development company” (as defined in Section
    2(a)(48) of the Investment Company Act).
	 	 	 	 	 
	 	☐	 	(v)	A
    small business investment company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the United States
    Small Business Investment Act of 1958, as amended.

 

    5

    Trade Secret and Strictly Confidential

    

 

	 	☐	 	(vi)	A
    “private business development company” (as defined in Section 202(a)(22) of the Investment Advisers Act).
	 	 	 	 	 
	 	☐	 	(vii)	An
    employee benefit plan within the meaning of ERISA, and (A) the investment decision to purchase the Interests was made by a “plan
    fiduciary” (as defined in Section 3(21) of ERISA), which is either a bank, savings and loan association, insurance company
    or registered investment adviser, (B) which has total assets in excess of $5,000,000, or (C) which is a self-directed plan, with
    investment decisions made solely by persons, each of whom individually satisfies the net worth or income standards for natural persons
    set forth in Question 1 above. NOTE: To the extent that reliance is placed on clause (C), each person must complete
    and submit to the Company a copy of these Accredited Investor Questions along with an original executed signature page. If necessary,
    please request additional copies of the Subscription Booklet from the Company.
	 	 	 	 	 
	 	☐	 	(viii)	A
    plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political
    subdivisions, for the benefit of its employees with total assets in excess of $5,000,000.
	 	 	 	 	 
	 	☐	 	(ix)	A
    limited liability company with total assets in excess of $5,000,000.
	 	 	 	 	 
	 	☐	 	(x)	A
    SEC- and state-registered investment adviser, exempt reporting adviser, or rural business investment companies (RBICs).
	 	 	 	 	 
	 	☐	 	(xi)	An
    Indian tribe, governmental body, fund or entity organized under the laws of foreign countries, that own “investments,”
    as defined in Rule 2a51-1(b) under the Investment Company Act, in excess of $5,000,000 and that was not formed for the specific purpose
    of investing in the Company;
	 	 	 	 	 
	 	☐	 	(xii)	A
    “family office” or entity that is a “family client” with at least $5,000,000 in assets under management,
    as each term is defined under the Investment Advisers Act, and that was not formed for the specific purpose of investing in the Company.
	 	 	 	 	 
	 	☐	(c) 	Each shareholder, partner, member or other equity owner, as the case may be, satisfies the net worth or income standards for natural persons set forth in Question 1 above or for entities set forth in this Question 2. NOTE: If the Investor checks this box 2(c), each equity owner of the Investor’s securities must complete and submit to the Company a copy of these Accredited Investor Questions along with an original executed signature page. If necessary, please request additional copies of the Subscription Booklet from the Company.

 

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		3.	The
    Investor is a trust and:

 

	 	☐	(a)
    	The
    trustee of the trust is a “bank” (as defined in Section 3(a)(2) of the Securities Act) or a “savings and loan association
    or other institution” (as defined in Section 3(a)(5)(A) of the Securities Act).
	 	 	 
	 	☐	(b)	The
    trust has total assets in excess of $5,000,000 and was not formed for the specific purpose of acquiring the Interest, and the purchase
    of the Interests are being directed by a person who has such knowledge and experience in financial and business matters that such
    person is capable of evaluating the merits and risks of the purchase of the Interest.

 

	C.	Anti-Money
Laundering Questions

 

In
order for the Company to comply with applicable anti-money laundering rules and regulations, please provide the information requested
below.

 

		1.	Bank
    Account Information:

 

		(a)	Please
    list each country in which the Investor maintains bank accounts.
	 	 	 
	 	 	 

 

		(b)	Do
    the capital contributions that the Investor plans to pay to the Company come from bank accounts outside of the United States?

 

☐
Yes        ☐ No

 

		(c)	If
    the answer is “Yes” to Question 1(b) above, in what country or countries are these bank accounts maintained?

 

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		2.	Additional
    questions:

 

FOR
INDIVIDUALS:

 

		(a)	Country
    of residence (domicile) of the Investor:
	 	 	 
	 	 	 

 

		(b)	Date
    of birth of the Investor:
	 	 	 
	 	 	 

 

		(c)	Current
    occupation and business affiliation of the Investor:
	 	 	 
	 	 	 

 

FOR
ENTITIES:

 

		(d)	State
    or other jurisdiction in which incorporated or formed: 	

 

		(e)	Date
    of incorporation or formation: 	

 

		(f)	Type
    of business of the Investor: 	

 

		(g)	Office
    locations of the Investor: 	
	 	 	 
	 	 	 

 

		(h)	Will
    any other person or persons (other than the Investor) have a beneficial interest in the Interests to be acquired hereunder (other
    than as a shareholder, partner, policy owner or other beneficial owner of equity interests in the Investor)?

 

☐
Yes       ☐ No

 

NOTE:
If the answer to this question is “Yes,” each such person must complete and submit to the Company a copy of these
Anti-Money Laundering Questions along with an original executed signature page. If necessary, please request additional copies of the
Subscription Booklet from the Company.

 

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	D.	Form
                                            PF Questions

 

	(1)
    	Is
    the Investor a U.S. person12? 	 	☐
	(2)
    	Is
    the Investor a fund of funds?	 	☐
	(3)
    	Please
    select only one of the following categories that best describes the Investor:	 	 
	 	(a) 	an individual that is a United States person (including any
trust established for the benefit of an individual)	 	☐
	 	(b) 	an individual that is not a United States person (including
any trust established for the benefit of an individual)	 	☐
	 	(c) 	a broker-dealer	 	☐
	 	(d) 	an insurance company	 	☐
	 	(e)	 an investment company registered with the SEC	 	☐
	 	(f)	 a private fund13	 	☐
	 	(g) 	a non-profit	 	☐
	 	(h)	 a pension plan (excluding a governmental pension plan)	 	☐
	 	(i) 	a banking or thrift institution (proprietary)	 	☐
	 	(j) 	a State or municipal government entity14 (excluding
a governmental pension plan)	 	☐
	 	(k)	 a State or municipal governmental pension plan	 	☐
	 	(l) 	a sovereign wealth fund or foreign official institution	 	☐
	 	(m)	 an investor that is not a United States person and about which
the foregoing beneficial ownership information is not known and cannot reasonably be obtained because the beneficial interest is held
through a chain involving one or more third-party intermediaries	 	☐
	 	(n) 	Other (please specify): ______________________________	 	☐

 

 

	12	A
“U.S. person” has the meaning set forth in rule 203(m)-1 under the Investment Advisers Act.

	13	A
“private fund” is any issuer that would be required to register as an investment company under Section 3 of the 1940 Act
but for Section 3(c)(1) or Section 3(c)(7) of the 1940 Act.

	14	A
“government entity” is any U.S. state or political subdivision of a U.S. state, including (i) any agency, authority or instrumentality
of the state or political subdivision; (ii) a plan or pool of assets controlled by the state or political subdivision or any agency,
authority or instrumentality thereof; and (iii) any officer, agent or employee of the state or political subdivision or any agency, authority
or instrumentality thereof, acting in their official capacity.

 

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	E.	Bad
                                            Actor Disqualification

 

As
used in this section of the questionnaire, “you” also refers to any entity on whose behalf you are responding. If you cannot
answer no to any of the statements, please contact us to provide details. If you have doubts regarding whether you can make all of the
statements, please contact us.

 

1.
Criminal Convictions: Within the past 10 years (or five years, in the of case the Company), have you or the Company been convicted of
any felony or misdemeanor:

 

a.
In connection with the purchase or sale of a security

 

☐
Yes       ☐ No

 

b.
Involving the making of a false filing with the Securities and Exchange Commission (the “SEC”)

 

☐
Yes       ☐ No

 

c.
Arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser or paid
solicitor of purchasers of securities.

 

☐
Yes       ☐ No

 

2.
Court injunctions and restraining orders: Within the past five years, have you or the Company been the subject of a court injunction
or restraining order:

 

a.
In connection with the purchase or sale of a security

 

☐
Yes       ☐ No

 

b.
Involving the making of a false filing with the SEC

 

☐
Yes       ☐ No

 

c.
Arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser or paid
solicitor of purchasers of securities.

 

☐
Yes       ☐ No

 

3.
Final orders of certain state and federal regulators: Have you or the Company been the subject of any final orders of state regulators
of securities, insurance, banking, savings associations or credit unions; federal banking agencies; the Commodity Futures Trading Commission
and the National Credit Union Administration that:

 

a.
Bar you or the Company from associating with a regulated entity, engaging in the business of securities, insurance or banking, or engaging
in savings association or credit union activities or

 

☐
Yes       ☐ No

 

b.
Are based on a violation of a law or regulation that prohibits fraudulent, manipulative, or deceptive conduct and were issued within
the last 10 years.

 

☐
Yes       ☐ No

 

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4.
SEC disciplinary orders: Are you or the Company currently the subject of any SEC disciplinary orders relating to brokers, dealers, municipal
securities dealers, investment companies, and investment advisers and their associated persons under Section 15(b) or 15B(c) of the Securities
Exchange Act of 1934, or Section 203(e) or (f) of the Investment Advisers Act that:

 

a.
Suspends or revokes your or the Company’s registration as a broker, dealer, municipal securities dealer or investment adviser

 

☐
Yes       ☐ No

 

(1)
Places limitations on your or the Company’s activities, functions or operations

 

☐
Yes       ☐ No

 

(2)
Bars you or the Company from being associated with any entity or from participating in the offering of any penny stock.

 

☐
Yes       ☐ No

 

5.
SEC cease-and-desist orders: Within the last five years, have you or the Company been the subject of SEC orders to cease and desist from
committing or causing a violation or future violations of:

 

a.
The scienter-based anti-fraud provisions of the federal securities laws

 

☐
Yes       ☐ No

 

b.
Section 5 of the Act.

 

☐
Yes       ☐ No

 

6.
Suspension or expulsion from membership in an SRO or from association with an SRO member:

 

a.
Have you or the Company been suspended or expelled from membership in, or suspended or barred from association with a member of, a securities
self-regulatory organization or “SRO” (i.e., a registered national securities exchange or national securities association,
such as FINRA) for any act or omission to act constituting conduct inconsistent with just and equitable principles of trade.

 

☐
Yes       ☐ No

 

7.
SEC stop orders:

 

a.
Within the last five years, have you, as an officer or director of an issuer, or the Company filed a registration statement or Regulation
A offering statement that was the subject of a SEC refusal order, stop order or order suspending the Regulation A exemption, or are you
now the subject of an investigation or proceeding to determine whether such an order should be issued.

 

☐
Yes       ☐ No

 

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b.
Within the last five years, have you or the Company been, or been named as, an underwriter of securities under a registration statement
or Regulation A offering statement that was the subject of a Commission refusal order, stop order or order suspending the Regulation
A exemption, or are you now the subject of an investigation or proceeding to determine whether such an order should be issued.

 

☐
Yes       ☐ No

 

8.
U.S. Postal Service false representation orders: Within the last five years have you or the Company been subject to a U.S. Postal Service
false representation order, temporary restraining order or preliminary injunction with respect to conduct alleged by the U.S. Postal
Service to constitute a scheme or device for obtaining money or property through the mail by means of false representations.

 

☐
Yes       ☐ No

 

	F.	Miscellaneous

 

		1.	Is
    the Investor subject to the United States Freedom of Information Act, 5 U.S.C. § 552 (“FOIA”), any state
    public records access laws, any state or other jurisdiction’s laws of similar intent or effect to FOIA, or any other similar
    statutory or legal right that might result in the disclosure of confidential information relating to the Company?

 

☐
Yes       ☐ No

 

If
the question above was answered “Yes,” please indicate the relevant laws to which the Investor is subject (or provide a copy
herewith) and provide any additional explanatory information in the space below (including, without limitation, examples of disclosure
that the Investor is required to make pursuant to such laws) (attach
additional pages, if necessary):

 

	 	 	 
	 	 	 
	 	 	 
	 	 	 
		2.	To
    the best of the Investor’s knowledge, does the Investor control, or is the Investor controlled by or under common control with,
    any other investor in the Company?

 

☐
Yes       ☐ No

 

		(a)	If
    the question above was answered “Yes,” please state the name of that investor:
	 	 	 
	 	 	 

 

*     *     *     *     *

 

END
OF INVESTOR QUESTIONNAIRE.

PLEASE
PROCEED TO “INVESTOR DATA SHEET” (PART 3).

 

    12

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Annex
A to Investor Questionnaire

 

INVESTMENTS

 

For
determining whether the Investor is a “qualified purchaser” the term “Investments” means:

 

		1.	Securities
    (as defined by Section 2(a)(1) of the Securities Act), other than securities of an issuer that controls, is controlled by, or is
    under common control with, the Investor that owns such securities, unless the issuer of such securities is a “public company,”
    a “financial company” or has more than $50,000,000 in equity, as reflected on such company’s financial statements
    which present such equity information as of a date within 16 months preceding the date on which the Investor acquires an Interest.
    The term “public company” includes all companies that file reports pursuant to Section 13 or 15(d) of the Exchange Act
    or have a class of securities that are listed on a Designated Offshore Securities Market, as defined by Regulation S of the Securities
    Act. The term “financial company” includes a commodity pool or an “investment company” (whether onshore or
    offshore) or a company required to register as such under the Investment Company Act but for the exclusions or exemptions provided
    by Sections 3(c)(1) through 3(c)(9) of the Investment Company Act;

 

		2.	Real
    estate held for investment purposes so long as it is not used by the prospective qualified purchaser or a close relative (generally,
    a sibling, spouse, former spouse, direct ancestor or descendent or a spouse of such an ancestor or descendent) for personal or business
    purposes. However, real estate owned by a prospective qualified purchaser who is primarily in the real estate business is includable
    as an “investment” even if it is held by the owner;

 

		3.	“Commodity
    Interests” or “Physical Commodity” held for investment purposes by the Investor. “Commodity Interests”
    means commodity futures contracts, options on commodity futures contracts, and options on physical commodities traded on or subject
    to the rules of (i) any contract market designated for trading such transactions under the United States Commodity Exchange Act of
    1974, as amended (the “Commodity Exchange Act”) and the rules thereunder, or (ii) any board of trade or exchange
    outside the United States, as contemplated in Part 30 of the rules under the Commodity Exchange Act. “Physical Commodity”
    means any physical commodity with respect to which a “Commodity Interest” is traded on a market specified in the definition
    of Commodity Interests above;

 

		4.	To
    the extent not securities, “financial contracts” entered into for investment purposes or in connection with investments.
    “Financial contracts” means any arrangement that (i) takes the form of an individually negotiated contract, agreement,
    or option to buy, sell, lend, swap, or repurchase, or other similar individually negotiated transaction commonly entered into by
    participants in the financial markets; (ii) is in respect of securities, commodities, currencies, interest or other rates, other
    measures of value, or any other financial or economic interest similar in purpose or function to any of the foregoing; and (iii)
    is entered into in response to a request from a counterparty for a quotation, or is otherwise entered into and structured to accommodate
    the objectives of the counterparty to such arrangement;

 

    A-1

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		5.	In
    the case of an Investor that is a commodity pool operator or an investment company excepted from registration by Section 3(c)(1)
    or 3(c)(7) of the Investment Company Act, any amounts payable to such Investor pursuant to a firm agreement or similar binding commitment
    pursuant to which a person has agreed to acquire an interest in, or make capital contributions to, the Investor upon the demand of
    the Investor; and

 

		6.	Cash
    and cash equivalents (including foreign currencies) held for investment purposes. “Cash and cash equivalents” include
    bank deposits, certificates of deposits, bankers acceptances and similar bank instruments held for investment purposes and the net
    cash surrender value of an insurance policy.

 

“Investments”
do not include other assets which do not reflect experience in the financial markets, such as jewelry, art work, antiques and other collectibles.

 

For
purposes of determining the amount of “Investments” owned by a company, “Investments” of a parent company and
its majority-owned subsidiaries may be aggregated to meet the minimum “investment” amount requirements, regardless of which
company is the prospective qualified purchaser.

 

For
purposes of determining the amount of “Investments” owned by a natural person, there may be included any “investment”
held jointly or as community property with such person’s spouse. In determining whether spouses who are making a joint investment
in the Company are qualified purchasers, there may be included in the amount of each spouse’s “Investments” any “Investments”
owned by the other spouse (whether or not such “investments” are held jointly).

 

In
determining whether a natural person is a qualified purchaser, there may be included in the amount of such person’s “Investments”
any “Investments” held in an individual retirement account or similar account the investments of which are directed by and
held for the benefit of such person.

 

    A-2

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PART
3
 
 INVESTOR DATA SHEET

 

 

 

 

 

 

 

 

 

 

     

    Trade Secret and Strictly Confidential

    

 

INVESTOR
DATA SHEET

 

		1.	The
Investor:

 

	Name
    of Investor: 	 

 

	Social
    Security Number or Taxpayer Identification Number:15	 

 

	Principal
    Place of Business of Investor:

 

 

 

(Street
Address)

 

 

 

(Street
Address)

 

 

	(City)	(State)                                              	(Post/Zip
  Code)	(Country)

 

 

	(Telephone)	 	(Facsimile)	 

 

		2.	In
    providing the following contact information, please freely indicate where information requested is identical to information previously
    supplied.

 

Primary
Contact Person:

 

	 	 
	(Name)	 
	 	 
	 	 
	(Company)	 
	 	 
	 	 
	(Street
    Address)	 
	 	 
	 	 
	(City)                    (State)                    (Post/Zip Code)	 
	 	 
	 	 
	(Telephone)	 
	 	 
	 	 
	(Facsimile)	 
	 	 
	 	 
	(E-mail
    Address)*	 

 

		*	NOTE:
    Unless the Investor elects otherwise below, this e-mail address will be used to notify the Investor of any notices, reports, requests,
    demands, consents and other communications that are posted to the Company’s password-protected website.

 

 

	15	If
the Investor is investing as a joint tenant or tenant in common, please provide the Social Security Number or Taxpayer Identification
Number for each joint tenant or tenant in common.

 

     

    Trade Secret and Strictly Confidential

    

 

Password-Protected
Website Notice Opt-Out:

 

The
Investor may elect not to receive notices, reports, requests, demands, consents and other communications pursuant to the
Operative Documents via the Company’s password-protected website by checking the box below.

 

☐      
Password-protected website notice opt-out

 

Contact
Person(s) for Distribution Notices:

 

	 	 	 
	(Name)	 	(Name)
	 	 	 
	 	 	 
	(Company)	 	(Company)
	 	 	 
	 	 	 
	(Street
    Address)	 	(Street
    Address)
	 	 	 
	 	 	 
	(City)                    (State)                    (Post/Zip Code)	 	(City)                    (State)                    (Post/Zip Code)
	 	 	 
	 	 	 
	(Telephone)	 	(Telephone)
	 	 	 
	 	 	 
	(Facsimile)	 	(Facsimile)
	 	 	 
	 	 	 
	(E-mail
    Address)	 	(E-mail
    Address)

 

Contact
Person(s) for Financial Information and Reporting:

 

	 	 	 
	(Name)	 	(Name)
	 	 	 
	 	 	 
	(Company)	 	(Company)
	 	 	 
	 	 	 
	(Street
    Address)	 	(Street
    Address)
	 	 	 
	 	 	 
	(City)                    (State)                    (Post/Zip Code)	 	(City)                    (State)                    (Post/Zip Code)
	 	 	 
	 	 	 
	(Telephone)	 	(Telephone)
	 	 	 
	 	 	 
	(Facsimile)	 	(Facsimile)
	 	 	 
	 	 	 
	(E-mail
    Address)	 	(E-mail
    Address)

 

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    Trade Secret and Strictly Confidential

    

 

Contact
Person for Legal Documentation (please limit to one contact):

 

	 	 
	(Name)	 
	 	 
	 	 
	(Company)	 
	 	 
	 	 
	(Street
    Address)	 
	 	 
	 	 
	(City)                    (State)                    (Post/Zip Code)	 
	 	 
	 	 
	(Telephone)	 
	 	 
	 	 
	(Facsimile)	 
	 	 
	 	 
	(E-mail
    Address)	 

 

Contact
Person for Tax Matters (including K-1 distribution) (please limit to one contact):

 

	 	 
	(Name)	 
	 	 
	 	 
	(Company)	 
	 	 
	 	 
	(Street
    Address)	 
	 	 
	 	 
	(City)                    (State)                    (Post/Zip Code)	 
	 	 
	 	 
	(Telephone)	 
	 	 
	 	 
	(Facsimile)	 
	 	 
	 	 
	(E-mail
    Address)	 

 

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    Trade Secret and Strictly Confidential

    

 

	Wiring
    Instructions for Cash Distributions:	 	Delivery
    Instructions for Securities Distributions:
	 	 	 
	 	 	 
	(Bank
    Name)	 	(Firm
    Name)
	 	 	 
	 	 	 
	(ABA
    Number)	 	(Address)
	 	 	 
	 	 	 
	(Account
    Name)	 	(Account
    Name)
	 	 	 
	 	 	 
	(Account
    Number)	 	(Account
    Number)
	 	 	 
	 	 	 
	(Contact
    Name)	 	(Contact
    Name)
	 	 	 
	 	 	 
	(Contact
    Telephone)	 	(Contact
    Telephone)

 

		3.	Form
    of ownership of the Interest:

 

FOR
INDIVIDUALS (individuals must check one):

 

	☐	Individual	 	☐	Joint
    Tenants with right of survivorship (each individual must sign and complete the appropriate IRS Form)	 	☐	Tenants-in-Common
    (each individual must sign and complete the appropriate IRS Form)	 	☐	Individual
    Retirement Plan

 

FOR
ENTITIES (entities must check one):

 

	☐	Corporation	 	☐
    	Partnership	 	☐	Limited
    Liability Company
	 	 	 	 	 	 	 	 
	☐
    	Trust	 	☐	Foundation	 	☐	Endowment
	 	 	 	 	 	 	 	 
	☐
    	Employee
    Benefit Plan	 	☐
    	Keogh
    Plan	 	☐
    	Governmental
    Plan
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	☐
	Other:
	 

        

	 	 	 	 	 	 	 	 	(specify)

 

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PART
4
 
 SIGNATURE PAGE

 

 

 

 

 

 

 

 

 

 

     

    Trade Secret and Strictly Confidential

    

 

SIGNATURE
PAGE

 

This
page constitutes the signature page for the Subscription Agreement, including the Power of Attorney contained therein.

 

Your
signature on this signature page constitutes execution of the Subscription Agreement, which includes the Investor Questionnaire and the
Investor Data Sheet, evidences your agreement to be bound, and permits the Company and Adviser execute the Operative Documents as your
attorney-in-fact.

	 	 	 	 	 
	$	 	 	_____________________________,
    ______
	

        Capital
        Commitment
	 	

        Date
	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	INDIVIDUALS:	 	ENTITIES:	 
	 	 	 	 
	 	 	 
	

        Signature
	 	Name of Entity

(Please type or print)

	 	 	 	 
	 	 	By:
    	
	

        Name

        (Please
        type or print)
	 		Signature
	 	 	 	 
	 	 	 
	Name
        of Spouse if Co-Owner
	 	

Name of Authorized Signatory

	(Please
    type or print)	 	(Please type or print)
	 	 	 	 
	 	 	 
	

        Signature
        of Spouse if Co-Owner
	 	

Title of Authorized Signatory

(Please type or print)

 

     

    Trade Secret and Strictly Confidential

    

 

	ACCEPTED
AND AGREED

this _____ day of __________, _____.
	 	Subscription
of ___________________________ 

Accepted:

	 	 	 
	 	 	$ __________________________

        Capital
Commitment

	 	 	 
	AFC
        BDC Inc.

        
	 	 
	 	 	 
	By:	 	 	 
	 	Name:	 	 
	 	Title:	 	 

 

     

    Trade Secret and Strictly Confidential

    

 

 

 

 

 

 

 

 

 

 

PART
5
 
 NOTICE OF PRIVACY POLICY AND PRACTICES

 

 

 

 

 

 

 

 

 

 

     

    Trade Secret and Strictly Confidential

    

 

NOTICE
OF PRIVACY POLICY AND PRACTICES

 

We
are committed to handling information about you responsibly and would like to let you know that we recognize and respect your right to
privacy. We are providing this notice to you so that you will know what kinds of information we collect about you and the circumstances
in which that information may be disclosed to third parties.

 

Collection
of Non-Public Personal Information

 

We
collect non-public personal information about you from the following sources:

 

		●	Subscription
    agreements and other forms or agreements; and

 

		●	Correspondence
    (written, telephonic or electronic).

 

Information
gathered from these sources may include your name, address, social security number, and information about your income level and/or assets.

 

Disclosure
of Non-Public Personal Information

 

We
may disclose all of the information described above to certain third parties under one or more of these circumstances:

 

		●	As
    Authorized – if you request or authorize the disclosure of the information; or

 

		●	As
    Permitted by Law – for example, sharing information with companies who maintain or service customer accounts for us is
    permitted and is essential for us to provide you with necessary or useful services with respect to your investment.

 

Security
of Non-Public Personal Information

 

We
restrict access to non-public personal information about you solely to those employees who need to know that information to provide products
or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your non-public
personal information.

 

We
will adhere to the policies and practices described in this notice regardless of whether you are a current or former investor.16

 

This
Privacy Notice relates to the following entities:

 

		●	AFC
    BDC Inc.; and

 

		●	AFC
    Advisor LLC.

 

 

		16	For
the purpose of this policy, the term “investor” includes any individual who provides non-public personal information to any
of the entities listed below.

 

     

    Trade Secret and Strictly Confidential

    

 

 

 

 

 

 

 

 

 

 

PART
6
 
 TAX FORMS

 

 

 

 

 

 

 

 

 

 

     

    Trade Secret and Strictly Confidential

    

 

TAX
FORMS

 

All
Investors are required to submit appropriate tax forms.

 

Each
U.S. investor is required to complete a substitute Form W-9, which is included in the Investor Suitability Questionnaire. The Investor
is delivering to the Company a validly completed and duly executed IRS Form W-9 signed under penalties of perjury. Each non-U.S. investor
is required to fill in and date the relevant Form(s) W-8 BEN, W-8BEN-E, W-8IMY, W-8ECI or W-8EXP, as applicable, in accordance with the
instructions to such Form, and in the event that any applicable reduction or exemption from U.S. federal withholding tax is claimed,
is required to provide all applicable attachments or addendums as required to claim such exemption or reduction. The Investor is delivering
to the Company an appropriate validly completed and duly executed applicable IRS Form W-8 (together with any additional information or
forms required to be attached thereto) signed under penalties of perjury.

 

If
you are a U.S. person for U.S. federal income tax purposes, please complete:

 

		●	IRS
                                            Form W-9 (available at https://www.irs.gov/pub/irs-pdf/fw9.pdf)

 

If
you are a grantor trust (including a “defective irrevocable trust”) or a disregarded entity the grantor(s) or owner(s) of
which is a U.S. person for U.S. federal income tax purposes, please complete an IRS Form W-9 or, if applicable, the relevant IRS Form
W-8, for each such grantor or owner.

 

If
you are a non-U.S. person for U.S. federal income tax purposes, please complete the applicable IRS Form W-8 and provide any additional
documentation, as required:

 

		●	IRS
                                            Form W-8BEN (Foreign Individuals that are the Beneficial Owners) (available at http://www.irs.gov/pub/irs-pdf/fw8ben.pdf)

 

		●	IRS
                                            Form W-8BEN-E (Foreign Entities that are the Beneficial Owners) (available at http://www.irs.gov/pub/irs-pdf/fw8bene.pdf)

 

		●	IRS
                                            Form W-8IMY (Foreign Intermediaries, Foreign Flow-Through Entities, or Certain U.S. Branches)
                                            (available at http://www.irs.gov/pub/irs-pdf/fw8imy.pdf)

 

		●	IRS
                                            Form W-8ECI (Certificate of Foreign Person’s Claim That Income Is Effectively Connected
                                            With the Conduct of a Trade or Business in the United States) (available at https://www.irs.gov/pub/irs-pdf/fw8eci.pdf)

 

		●	IRS
                                            Form W-8EXP (Foreign Governments or Other Foreign Organizations) (available at http://www.irs.gov/pub/irs-pdf/fw8exp.pdf)

 

     

    Trade Secret and Strictly Confidential

    

 

 

 

 

 

 

 

 

 

 

PART
7
 
 INVESTMENT ADVISORY AGREEMENT

 

 

 

 

 

 

 

 

 

 

     

    Trade Secret and Strictly Confidential

    

 

INVESTMENT
ADVISORY AGREEMENT

 

BETWEEN

 

AFC
BDC INC. 

 

AND

 

AFC
ADVISOR LLC

 

This
Agreement (the “Agreement”) is made as of April 4, 2022, by and between AFC BDC Inc., a Maryland corporation (the “Company”),
and AFC Advisor LLC, a Delaware limited liability company (the “Advisor”).

 

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

 

WHEREAS,
the Company desires to retain the Advisor to furnish investment advisory services to the Company on the terms and conditions hereinafter
set forth, and the Advisor desires to be retained to provide such services.

 

NOW,
THEREFORE, in consideration of the premises and for other good and valuable consideration, the parties hereby agree as follows:

 

		1)	Duties
    of the Advisor

 

	 	a)	The
    Company hereby engages the Advisor to act as the investment adviser to the Company and to manage the investment and reinvestment
    of the assets of the Company, subject to the supervision of the Board of Directors of the Company (the “Board”),
    for the period and upon the terms herein set forth, (x) in accordance with the investment objective, policies and restrictions
    that are set forth in the reports and/or registration statements that the Company files with the Securities and Exchange Commission
    (the “SEC”) from time to time, and prior to the date on which the SEC declares the Company’s registration
    statements effective, in accordance with the investment objective, policies and restrictions that are set forth in the Company’s
    confidential private placement memorandum dated [●], 2022, as amended from time to time (the “PPM”); (y) in
    accordance with all other applicable federal and state laws, rules and regulations, and the Company’s charter and by-laws
    as the same may be amended from time to time; and (z) in accordance with the Investment Company Act. Without limiting the generality
    of the foregoing, the Advisor shall, during the term and subject to the provisions of this Agreement: (i) determine the composition
    of the portfolio of the Company, the nature and timing of the changes therein and the manner of implementing such changes; (ii) identify/source,
    research, evaluate and negotiate the structure of the investments made by the Company; (iii) close and monitor the Company’s
    investments; (iv) determine the securities and other assets that the Company will purchase, retain, or sell; (v) use reasonable
    endeavors to ensure that the Company’s investments consist mainly of assets, shares, securities or currencies (or derivative
    contracts relating thereto), which for the avoidance of doubt may include loans, notes and other evidences of indebtedness; (vi) perform
    due diligence on prospective portfolio companies; and (vii) provide the Company with such other investment advisory, research,
    and related services as the Company may, from time to time, reasonably require for the investment of its funds, including providing
    operating and managerial assistance to the Company and its portfolio companies as required. The Advisor shall have the power and
    authority on behalf of the Company to effectuate its investment decisions for the Company, including the execution and delivery of
    all documents relating to the Company’s investments and the placing of orders for other purchase or sale transactions on behalf
    of the Company. In the event that the Company determines to acquire debt financing, the Advisor will arrange for such financing on
    the Company’s behalf, subject to the oversight and approval of the Board. If it is necessary or appropriate for the Advisor
    to make investments on behalf of the Company through a special purpose vehicle, the Advisor shall have authority to create or arrange
    for the creation of such special purpose vehicle and to make such investments through such special purpose vehicle (in accordance
    with the Investment Company Act).

 

     

     

    

 

	 	b)	The
Advisor hereby accepts such engagement and agrees during the term hereof to render the services described herein for the compensation
provided herein.

 

	 	c)	The
    Advisor is hereby authorized to enter into one or more sub-advisory agreements with other investment advisers (each, a “Sub-Adviser”)
    pursuant to which the Advisor may obtain the services of the Sub-Advisor(s) to assist the Advisor in fulfilling its responsibilities
    hereunder. Specifically, the Advisor may retain a Sub-Adviser to recommend specific securities or other investments based upon the
    Company’s investment objective and policies, and work, along with the Advisor, in structuring, negotiating, arranging or effecting
    the acquisition or disposition of such investments and monitoring investments on behalf of the Company, subject to the oversight
    of the Advisor and the Company. The Company shall be responsible for any compensation payable to any Sub-Adviser. Any sub-advisory
    agreement entered into by the Advisor shall be in accordance with the requirements of the Investment Company Act and other applicable
    federal and state law.

 

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

 

	 	e)	The
    Advisor shall keep and preserve for the period required by the Investment Company Act any books and records relevant to the provision
    of its investment advisory services to the Company and shall specifically maintain all books and records in accordance with Section 31(a) of
    the Investment Company Act with respect to the Company’s portfolio transactions and shall render to the Board such periodic
    and special reports as the Board may reasonably request. The Advisor agrees that all records that it maintains for the Company are
    the property of the Company and will surrender promptly to the Company any such records upon the Company’s request, provided
    that the Advisor may retain a copy of such records.

 

	 	f)	The
    Advisor shall be primarily responsible for the execution of any trades in securities in the Company’s portfolio and the Company’s
    allocation of brokerage commissions.

 

		2)	Company’s
    Responsibilities and Expenses Payable by the Company

 

Except
as otherwise provided herein or in the Administration Agreement (the “Administration Agreement”), dated April 4, 2022,
between the Company and the Advisor (the Advisor, in its capacity as the administrator, the “Administrator”), (i)
the Advisor shall be solely responsible for, and the Company shall have no obligation to pay or reimburse the Advisor or its affiliates,
for the respective compensation of the Advisor’s officers and employees who (a) serve on the Advisor’s investment committee,
or (b) provide underwriting and/or portfolio management services to the Company under this Agreement, (such personnel providing the services
described in this item (i), the “investment personnel”); and (ii) the Company shall pay or reimburse the Advisor or its affiliates,
as applicable, for the Company’s fair and equitable allocable share of the compensation, including annual base salary, bonus, any
related withholding taxes and employee benefits, paid to personnel providing finance, tax, accounting, internal audit, legal, risk management,
operations, originations, marketing, investor relations, portfolio servicing, compliance services and other non-investment personnel
of the Advisor and its affiliates as reasonably determined by the Advisor to appropriately reflect the portion of time spent devoted
by such personnel to the Company’s affairs (such personnel described in this item (ii), the “non-investment personnel”).
The Advisor shall provide the Company with such written detail as the Company may reasonably request to support the determination of
the Company’s share of such costs.

 

The
Company will bear its own expenses or reimburse the Administrator or Advisor, as applicable, including, without limitation, for the fees
and costs enumerated in the Administration Agreement, as may be amended from time to time, including but not limited to Section 4 thereof.

 

    2

     

    

 

		3)	Compensation
    of the Advisor

 

The
Company agrees to pay, and the Advisor agrees to accept, as compensation for the services provided by the Advisor hereunder, a base management
fee (the “Management Fee”) and an incentive fee (the “Incentive Fee”) as hereinafter set forth.
The Company shall make any payments due hereunder to the Advisor or to the Advisor’s designee as the Advisor may otherwise direct.

 

	 	a)	
    For services rendered under this Agreement,
the Management Fee will be payable quarterly in arrears. The Management Fee for any partial month or quarter, as the case may be, will
be appropriately prorated and adjusted (based on the number of days actually elapsed at the end of such partial month or quarter) relative
to the total number of days in such month or quarter. The Management Fee shall be calculated as follows:

 	 	i)	Prior to an initial public offering (“IPO”) of the Company’s stock, if any, the Company will pay to the Advisor an asset-based fee (the “Pre-IPO Management Fee”) for management services in an amount equal to an annual rate of 1.50% of the NAV at the end of the most recently completed calendar quarter, excluding the portion of NAV represented by cash or cash equivalents (“Fee-Eligible NAV”).

 	 	ii)	Following
    an IPO, the Management Fee will be calculated at an annual rate of 1.50% of gross assets, including assets purchased with borrowed
    funds, but excluding cash and cash equivalents, based on the value of our total assets at the end of the most recently
    completed calendar quarter. 

 

	 	b) 	The Incentive Fee consists of two components that are independent
of each other with the result that one component may be payable even if the other is not. A portion of the Incentive Fee is based on
the Company’s income (the “Incentive Fee on Income”) and a portion is based on the Company’s capital gains
(the “Incentive Fee on Capital Gains”), each as described below:

 

	 	
    i)
	The first component, the Incentive Fee
on Income, shall be calculated and paid in arrears based on the Company’s Pre-Incentive Fee Net Investment Income for the immediately
preceding quarter (or upon termination of the this Agreement, as of the termination date). “Pre-Incentive Fee Net Investment Income”
means interest income, dividend income and any other income (including any other fees, such as commitment, origination, structuring,
diligence and consulting fees or other fees that the Company receives from portfolio companies, other than fees for providing managerial
assistance) accrued during the calendar quarter, minus the Company’s operating expenses for the quarter (including the Management
Fee, expenses payable under the Administration Agreement, and any interest expense and dividends paid on any issued and outstanding preferred
stock, but excluding the Incentive Fee). Pre-Incentive Fee Net Investment Income includes, in the case of investments with a deferred
interest feature (such as OID debt instruments with payment-in-kind interest and zero coupon securities), accrued income that the Company
has not yet received in cash. Pre-Incentive Fee Net Investment Income does not include any realized capital gains, realized capital losses
or unrealized capital appreciation or depreciation.

 

The calculation of the Incentive Fee on Income for each quarter is as follows:

 

	 	 	
    (A)
	No Incentive Fee on Income will be payable
to the Advisor in any calendar quarter in which the Company’s Pre-Incentive Fee Net Investment Income does not exceed the preferred
return rate of 1.50% (the “Preferred Return”) on net assets;

 

	 	 	
    (B)
	50% of the Company’s Pre-Incentive
Fee Net Investment Income, if any, that exceeds the Preferred Return but is less than or equal to 2.5% in any calendar quarter will be
payable to the Advisor. This portion of the Company’s Incentive Fee on Income is referred to as the “catch up” and
is intended to provide the Advisor with an incentive fee of 20% on all of the Company’s Pre-Incentive Fee Net Investment Income
when the Company’s Pre-Incentive Fee Net Investment Income reaches 2.5% on net assets in any calendar quarter; and

 

    3

     

    

 

	 	 	
    (C)
	For any quarter in which the Company’s
Pre-Incentive Fee Net Investment Income exceeds 2.5% on net assets, the Incentive Fee on Income will equal 20% of the amount of the Company’s
Pre-Incentive Fee Net Investment Income, as the Preferred Return and catch-up will have been achieved.

 

	 	
    ii.)
	The second component, the Incentive
Fee on Capital Gains, shall be determined and payable in arrears as of the end of each fiscal year (or upon termination of this Agreement)
in an amount equal to 20% of realized capital gains, if any, on a cumulative basis from inception through the end of each fiscal year
(or upon termination of this Agreement), computed net of all realized capital losses and unrealized capital depreciation on a cumulative
basis from inception through the end of the fiscal year (or upon termination of this Agreement), less the aggregate amount of any previously
paid Incentive Fee on Capital Gains.

 

The Incentive Fee will start to accrue as of the date the Company commences operations and any such fees outstanding at the time of a termination of this Agreement shall be payable to the Advisor.

 

Once an Incentive Fee on Income is earned and paid to the Advisor, it is not refundable, notwithstanding any losses incurred by the Company in subsequent periods, except that if the Company’s Pre-Incentive Fee Net Investment Income for any fiscal year does not exceed the amount equal to the product of (i) 6.0% and (ii) the Company’s NAV as of the last day of the immediately preceding fiscal year (such amount, the “Annual Hurdle Amount”), the Advisor will be obligated to pay the Company (such obligation to pay, the “Clawback Obligation”) an amount equal to the aggregate Incentive Fee on Income that was earned and paid to the Advisor during such fiscal year (such amount, the “Clawback Amount”); provided that under no circumstances will the Clawback Amount be more than the amount by which the Annual Hurdle Amount exceeds Pre-Incentive Fee Net Investment Income for the specified fiscal year. The Clawback Obligation is determined on an annual basis and any Incentive Fee on Income earned during a specified fiscal year will not be subject to the Clawback Obligation with respect to the Incentive Fee on Income earned during any prior or subsequent fiscal year. Notwithstanding the foregoing, for the Company’s first fiscal year, the Annual Hurdle Amount shall be the product of (i) 6% and (ii) the Company’s NAV immediately following the closing (at the Advisor’s sole determination) of the Company’s initial capital raise in connection with its election to be a BDC.

 

Examples of the quarterly incentive fee calculation are attached hereto as Annex A. Such examples are included for illustrative purposes only and are not considered part of this Agreement. The fees payable under this Agreement for any partial period will be appropriately prorated.

 

		4)	Covenants
    of the Advisor

 

The
Advisor agrees that it will remain registered as an investment adviser under the Advisers Act so long as the Company maintains its election
to be regulated as a BDC under the Investment Company Act. The Advisor agrees that its activities will at all times be in compliance
in all material respects with all applicable federal and state laws governing its operations and investments.

 

		5)	Excess
    Brokerage Commissions

 

The
Advisor is hereby authorized, to the fullest extent now or hereafter permitted by law, to cause the Company to pay a member of a national
securities exchange, broker or dealer an amount of commission for effecting a securities transaction in excess of the amount of commission
another member of such exchange, broker or dealer would have charged for effecting that transaction, if the Advisor determines in good
faith, taking into account such factors as price (including the applicable brokerage commission or dealer spread), size of order, difficulty
of execution, and operational facilities of the firm and the firm’s risk and skill in positioning blocks of securities, that such
amount of commission is reasonable in relation to the value of the brokerage and/or research services provided by such member, broker
or dealer, viewed in terms of either that particular transaction or its overall responsibilities with respect to the Company’s
portfolio, and constitutes the best net results for the Company.

 

    4

     

    

 

		6)	Investment
    Team

 

The
Advisor shall manage the Company’s portfolio through a team of key personnel and investment professionals (the “Investment
Team”) in cooperation with the Company’s Chief Executive Officer. The Investment Team shall be comprised of senior personnel
of the Advisor, supported by and with access to the investment professionals, analytical capabilities and support personnel of the Advisor.

 

		7)	Limitations
    on the Engagement of the Advisor

 

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

 

		8)	Responsibility
    of Dual Directors, Officers and/or Employees

 

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

 

		9)	Limitation
    of Liability of the Advisor; Indemnification

 

The
Advisor (and its officers, managers, partners, agents, employees, controlling persons, members and any other person or entity affiliated
with the Advisor, including without limitation its sole member) shall not be liable to the Company for any action taken or omitted to
be taken by the Advisor in connection with the performance of any of its duties or obligations under this Agreement or otherwise as an
investment adviser of the Company (except to the extent specified in Section 36(b) of the Investment Company Act concerning
loss resulting from a breach of fiduciary duty (as the same is finally determined by judicial proceedings) with respect to the receipt
of compensation for services), and the Company shall indemnify, defend and protect the Advisor (and its officers, managers, partners,
agents, employees, controlling persons, members and any other person or entity affiliated with the Advisor, including without limitation
its general partner or managing member and the Administrator each of whom shall be deemed a third-party beneficiary hereof) (collectively,
the “Indemnified Parties”) and hold them harmless from and against all damages, liabilities, costs and expenses (including
reasonable attorneys’ fees and amounts reasonably paid in settlement) incurred by the Indemnified Parties in or by reason of any
pending, threatened or completed action, suit, investigation or other proceeding (including an action or suit by or in the right of the
Company or its security holders) arising out of or otherwise based upon the performance of any of the Advisor’s duties or obligations
under this Agreement or otherwise as an investment adviser of the Company. Notwithstanding the preceding sentence of this Section 9
to the contrary, nothing contained herein shall protect or be deemed to protect the Indemnified Parties against or entitle or be deemed
to entitle the Indemnified Parties to indemnification in respect of, any liability to the Company or its security holders to which the
Indemnified Parties would otherwise be subject by reason of criminal conduct, willful misfeasance, bad faith or gross negligence in the
performance of the Advisor’s duties or by reason of the reckless disregard of the Advisor’s duties and obligations under
this Agreement (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).

 

    5

     

    

 

		10)	Effectiveness,
    Duration and Termination of Agreement

 

	 	a)	This
    Agreement shall become effective as of the first date above written. This Agreement may be terminated at any time, without the payment
    of any penalty, on sixty (60) days’ written notice, by the vote of a majority of the Board or by a vote of the majority
    of the outstanding voting securities of the Company, in accordance with the requirements of the Investment Company Act, or by the
    Advisor. The provisions of Section 9 of this Agreement shall remain in full force and effect, and the Advisor shall remain entitled
    to the benefits thereof, notwithstanding any termination of this Agreement. Further, notwithstanding the termination or expiration
    of this Agreement as aforesaid, the Advisor shall be entitled to any amounts owed under Section 3 through the date of termination
    or expiration, and Section 9 shall continue in force and effect and apply to the Advisor and its representatives as and to the
    extent applicable.

 

	 	b)	This
    Agreement shall continue in effect for two (2) years from the first date above written and thereafter shall continue automatically
    for successive annual periods, provided that such continuance is specifically approved at least annually by (A) the vote of
    the Board, or by the vote of a majority of the outstanding voting securities of the Company and (B) the vote of a majority of
    the Company’s directors who are not parties to this Agreement or “interested persons” (as such term is defined
    in Section 2(a)(19) of the Investment Company Act) of any such party, in accordance with the requirements of the Investment
    Company Act.

 

	 	c)	This
    Agreement will automatically terminate in the event of its “assignment” (as such term is defined for purposes of Section 15(a)(4) of
    the Investment Company Act).

 

		11)	Notices

 

Any
notice under this Agreement shall be given in writing, addressed and delivered or mailed, postage prepaid, to the other party at its
principal office.

 

		12)	Amendments

 

This
Agreement may be amended by mutual consent, but the consent of the Company must be obtained in conformity with the requirements of the
Investment Company Act.

 

		13)	Severability.

 

If
any provision of this Agreement shall be held or made invalid by a court decision, statute or rule, or shall be otherwise rendered invalid,
the remainder of this Agreement shall not be affected thereby. For the avoidance of doubt, to the extent compliance with the terms of
this Agreement would violate any provision of the 1940 Act, such terms will be rendered invalid and the remainder of this Agreement shall
be not be affected thereby.

 

    6

     

    

 

		13)	Entire
    Agreement; Governing Law

 

This
Agreement contains the entire agreement of the parties and supersedes all prior agreements, understandings and arrangements with respect
to the subject matter hereof. This Agreement shall be construed in accordance with the laws of the State of New York and in accordance
with the applicable provisions of the Investment Company Act. In such case, to the extent the applicable laws of the State of New York,
or any of the provisions herein, conflict with the provisions of the Investment Company Act, the latter shall control. To the fullest
extent permitted by the Investment Company Act and the Advisers Act, as amended, the sole and exclusive forum for any action, suit or
proceeding with respect to this Agreement shall be a federal or state court located in the State of New York, and each party hereto,
to the fullest extent permitted by law, hereby irrevocably waives any objection that it may have, whether now or in the future, to the
laying of venue in, or to the jurisdiction of, any and each of such courts for the purposes of any such action, suit or proceeding and
further waives any claim that any such action, suit or proceeding has been brought in an inconvenient forum, and each party hereto hereby
submits to such jurisdiction and consents to process being served in any such action, suit or proceeding, without limitation, by United
States mail addressed to the party at its principal office.

 

		14) 	No Third-Party Beneficiary

 

Other
than expressly provided for in Paragraph 9 of this Agreement, this Agreement does not, and is not intended to, confer any rights or remedies
upon any person other than the parties to this Agreement; there are no third-party beneficiaries of this Agreement, including, but not
limited to, stockholders of the Company.

 

	15) 	Counterparts

 

This
Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which taken together shall
constitute a single agreement. Either party may deliver an executed copy of this Agreement, and of any documents contemplated hereby,
by facsimile or other electronic transmission to the other party, and such delivery shall have the same force and effect as any other
delivery of a manually signed copy of this Agreement or of such other documents.

 

*
* *

 

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

 

	 	AFC
    BDC INC. 
	 	 
	 	By: 	/s/
Gabriel A. Katz
	 	 	Name: 	Gabriel
    A. Katz 
	 	 	Title: 	Chief
Legal Officer, Chief Compliance Officer and Secretary 
	 
	 	AFC
    ADVISOR LLC
	 	 
	 	By: 	/s/
    Bernard D. Berman
	 	 	Name: 	Bernard
    D. Berman 
	 	 	Title: 	Authorized
Signatory

 

    7

     

    

 

Annex
A

 

Incentive
Fee on Income Examples

 

The
following scenarios set forth hypothetical examples of the quarterly Incentive Fee on Income calculation in accordance with our Advisory
Agreement without consideration to any Clawback Obligation.

 

Example
1

 

Assumptions:

 

		■	Net
assets as of the last day of the immediately preceding fiscal quarter of $100.0 million; and

 

		■	Pre-Incentive
Fee Net Investment Income of $1.4 million.

 

Since
Pre-Incentive Fee Net Investment Income of $1.4 million does not exceed the Preferred Return (1.5% * $100,000,000 = $1,500,000), there
is no Incentive Fee on Income paid to the Advisor for such quarter.

 

Example
2

 

Assumptions:

 

		■	Net
assets as of the last day of the immediately preceding fiscal quarter of $100.0 million; and

 

		■	Pre-Incentive
Fee Net Investment Income of $2.0 million.

 

Under
these assumptions, Pre-Incentive Fee Net Investment Income exceeds the Preferred Return but does not exceed 2.5% of net assets as of
the last day of the immediately preceding fiscal quarter, so the quarterly Incentive Fee on Income payable to our Advisor would be $250,000,
calculated as follows:

 

0.5
* ($2,000,000 – $1,500,000) = $250,000

 

Example
3

 

Assumptions:

 

		■	Net
assets as of the last day of the immediately preceding fiscal quarter of $100.0 million; and

 

		■	Pre-Incentive
Fee Net Investment Income of $4.0 million.

 

Under
these assumptions, Pre-Incentive Fee Net Investment Income exceeds 2.5% of net assets as of the last day of the immediately preceding
fiscal quarter, so the quarterly Incentive Fee on Income payable to our Advisor would be $800,000, calculated as follows:

 

[0.5
* ($2,500,000 – $1,500,000)] + [0.2 * ($4,000,000 – $2,500,000)] = $800,000

 

Incentive
Fee on Income Example -- Clawback Obligation

 

The
following scenario sets forth a simplified, hypothetical example of an annual Clawback Obligation. Our actual results may differ materially
from the following example.

 

This
example of an annual Clawback Obligation assumes the following:

 

		●	NAV
as of the last day of the immediately preceding fiscal year of $100.0 million;

 

		●	Incentive
Fee on Income of $800,000 earned and paid to the Advisor during such fiscal year; and

 

		●	Pre-Incentive
Fee Net Investment Income for the specified fiscal year of $4.0 million.

 

    A-1

     

    

 

Under
these assumptions, since Pre-Incentive Fee Net Investment Income of $4.0 million does not exceed the Annual Hurdle Amount of $6.0 million
($100,000,000 *0.6 = $6,000,000), the Clawback Amount would be $800,000, representing the entire Incentive Fee on Income that was paid
to the Advisor during such fiscal year; provided, that under no circumstances shall the Clawback Amount be more than the amount by which
the Annual Hurdle Amount exceeds Pre-Incentive Fee Net Investment Income for the specified fiscal year.

 

Second
Component -- Capital Gains Incentive Fee

 

Capital
Gains Incentive Fee Example

 

The
following summary sets forth a simplified, hypothetical example of an annual Capital Gains Incentive Fee calculation in accordance with
our Advisory Agreement. Our actual results may differ materially from the following example.

 

This
example of a Capital Gains Incentive Fee calculation assumes the following:

 

	 	■	Year
    1: A $20.0 million investment made in Company A (“Investment A”), and a $30.0 million investment made in Company B (“Investment
    B”); 

 

	 	■	Year
    2: Investment A sold for $50.0 million and fair market value (“FMV”) of Investment B determined to be $32.0 million;
    

 

	 	■	Year
    3: FMV of Investment B determined to be $25.0 million; and

 

	 	■	Year
    4: Investment B sold for $31.0 million.

 

Under
these assumptions, the hypothetical total Capital Gains Incentive Fee payable to our Advisor would be as calculated below:

 

	 	 	​	Illustrative

    Amount
	​	Calculation
	1.	Year
    1	 	None	 	 
	 	 	​	 	​	 
	2.	Year
    2	 	$6,000,000	 	$30.0
    million realized capital gains on sale of Investment A, multiplied by 20.0%
	 	 	 	 	 	 
	3.	Year
    3	 	None	 	$25.0
    million ($30.0 million realized capital gains on sale of Investment A less $5.0 million cumulative capital depreciation on
    Investment B) multiplied by 20.0%, less $6 million (previous Capital Gains Incentive Fee paid in Year 2)
	 	 	 	 	 	 
	4.	Year
    4	 	$200,000	 	$31.0
    million ($30.0 million realized capital gains on sale of Investment A plus $1 million realized capital gains on sale of Investment
    B) multiplied by 20.0%, less $6.0 million (previous Capital Gains Incentive Fee paid in Year 2)
	 	 	 	 	 	 
	5.	Total
    Years 1 through 4	​	$6,200,000	​	Total
    of above

 

    A-2

 

    

 

 

 

 

 

 

 

 

 

 

PART
8
 
 ADMINISTRATION AGREEMENT

 

 

 

 

 

 

 

 

 

 

     

     

    

 

ADMINISTRATION
AGREEMENT

 

BETWEEN

 

AFC
BDC INC. 

 

AND

 

AFC
ADVISOR LLC

 

This
Agreement (“Agreement”) is made as of April 4, 2022 by and between AFC BDC Inc., a Maryland corporation (the “Company”),
and AFC Advisor LLC, a Delaware limited liability company (the “Administrator”).

 

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

 

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

 

WHEREAS,
the Administrator is willing to provide administrative services to the Company on the terms and conditions hereafter set forth;

 

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

 

		1.	Duties
of the Administrator

 

		a.	Engagement
of Administrator. The Company hereby engages the Administrator to act as administrator of the Company, 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 Company (the “Board”), for the period and on the terms and conditions set forth in
this Agreement. The Administrator hereby accepts such engagement 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 such others shall for all purposes herein be deemed to be independent contractors.

 

     

     

    

 

		b.	Services. The
                                                                                                                                                                   Administrator shall perform (or oversee, or arrange for, the performance of) the administrative services necessary for the operation
                                                                                                                                                                   of the Company. Without limiting the generality of the foregoing, the Administrator shall provide the Company with office
                                                                                                                                                                   facilities, equipment, clerical, bookkeeping and record keeping services 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 Company, 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 Company as it shall determine to be desirable; provided that
                                                                                                                                                                   nothing herein shall be construed to require the Administrator to, and the Administrator shall not, in its capacity as Administrator
                                                                                                                                                                   pursuant to this Agreement, provide any advice or recommendation relating to the securities and other assets that the Company should
                                                                                                                                                                   purchase, retain or sell or any other investment advisory services to the Company. The Administrator shall be responsible for the
                                                                                                                                                                   financial and other records that the Company is required to maintain and shall prepare, print and disseminate reports to
                                                                                                                                                                   stockholders, and reports and other materials filed with the Securities and Exchange Commission (the “SEC”). The
                                                                                                                                                                   Administrator will provide on the Company’s behalf significant managerial assistance to those portfolio companies to which the
                                                                                                                                                                   Company is required to provide such assistance. In addition, the Administrator will assist the Company in determining and publishing
                                                                                                                                                                   (as necessary or appropriate) the Company’s net asset value, overseeing the preparation and filing of the Company’s tax
                                                                                                                                                                   returns, and generally overseeing the payment of the Company’s expenses and the performance of administrative and professional
                                                                                                                                                                   services rendered to the Company by others.

 

		2.	Records

 

The
Administrator agrees to maintain and keep all books, accounts and other records of the Company that relate to activities performed by
the Administrator hereunder and will maintain and keep such books, accounts and records in accordance with the Investment Company Act.
In compliance with the requirements of Rule 31a-3 under the Investment Company Act, the Administrator agrees that all records which it
maintains for the Company shall at all times remain the property of the Company, shall be readily accessible during normal business hours,
and shall be promptly surrendered upon the termination of the Agreement or otherwise on written request of the Board or applicable regulatory
or judicial authority. The Administrator further agrees that all records which it maintains for the Company 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.

 

    2

     

    

 

		3.	Confidentiality

 

The
parties hereto agree that each shall treat confidentially the terms and conditions of this Agreement and 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 (regulated 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

 

In
full consideration of the provision of the services of the Administrator, the Company shall reimburse the Administrator for its allocable
portion (subject to the review and approval of the Board) of the costs and expenses incurred by the Administrator in performing its obligations
and providing personnel and facilities hereunder, including its allocable portion of the compensation paid to or compensatory distributions
received by the Company’s Chief Compliance Officer and Chief Financial Officer, and any of their respective staff who provide services
to the Company, operations staff who provide services to the Company, and internal audit staff, if any, to the extent internal audit
performs a role in the Company’s Sarbanes-Oxley internal control assessment. Except as otherwise provided herein or in that certain
Investment Advisory Agreement, by and between the Company and the Administrator (the Administrator, in its capacity as adviser pursuant
to the Investment Advisory Agreement, the “Advisor”), as amended from time to time (the “Advisory Agreement”),
the Administrator (or a Related Fund, as set forth below) shall be solely responsible for the compensation of its employees and all overhead
expenses of the Administrator (including rent, office equipment and utilities).

 

    3

     

    

 

The
Company will bear its own expenses or reimburse the Administrator or Advisor, as applicable, including, without limitation, for (i) fees
and costs incurred in organizing the Company and all ongoing organizational costs, including, but not limited to, costs and expenses
incurred in contracting with third parties, expenses in connection with the issuance and transaction costs incident to the origination,
acquisition, disposition and financing of the investments of the Company; (ii) fees and costs associated with calculating the Company’s
net asset value (“NAV”) (including the cost and expenses of any independent valuation firm); (iii) expenses, including
travel, entertainment, lodging and meal expenses, incurred by the Advisor (including by the managers, officers, personnel and agents
of the Advisor) and other out-of-pocket expenses incurred by managers, officers, personnel and agents of the Advisor in connection with
the services provided under the Advisory and Administration Agreements, or the portfolio advisors and other members of the investment
team, or payable to third parties, in evaluating, developing, negotiating, structuring and performing due diligence on prospective portfolio
companies, including such expenses related to potential investments that were not consummated, and, if necessary, enforcing the Company’s
rights; (iv) fees and expenses incurred by the Advisor (and its affiliates) or the Administrator (or its affiliates) payable to unaffiliated
third parties, including agents, consultants or other Advisors, in monitoring financial and legal affairs for the Company and in conducting
research and due diligence on prospective investments and equity sponsors, analyzing investment opportunities, structuring the Company’s
investments and monitoring investments and portfolio companies on an ongoing basis; (v) any and all fees, costs and expenses incurred
in connection with the incurrence and/or maintenance of leverage and indebtedness of the Company, including borrowings, dollar rolls,
reverse purchase agreements, credit facilities, securitizations, margin financing and derivatives and swaps, and including any principal
or interest on the Company’s borrowings and indebtedness (including, without limitation, any fees, costs, and expenses incurred
in obtaining lines of credit, loan commitments, and letters of credit for the account of the Company and in making, carrying, funding
and/or otherwise resolving investment guarantees); (vi) fees and costs associated with offerings, sales, and repurchases of the Company’s
common stock and other securities; (vii) fees and expenses payable under any underwriting, dealer Advisor or placement agent agreements,
if any; (viii) investment advisory fees payable under this Agreement; (ix) administration fees and expenses, if any, including payments
between the Company and the Administrator, based upon the Company’s allocable portion of the Advisor and Administrator’s
overhead in performing its obligations under the Advisory and Administration Agreements, including the their rent, telephone, printing,
mailing, utilities, office furniture, equipment, machinery and other office, internal and overhead expenses relating to any office(s)
or office facilities, including disaster backup recovery sites and facilities, maintained for the Company or the investments of the Company,
the Advisor or their affiliates related to the operation of the Company; and the allocable portion of the cost of the Company’s
chief financial officer and chief compliance officer, and their respective staffs; (x) all costs incurred in connection with investor
relations, board of directors relations, and preparing for, registering and effectuating the listing of the Company’s debt and
equity securities on any securities exchange; (xi) any applicable administrative agent fees or loan arranging fees incurred with respect
to the Advisor’s portfolio investments, the Administrator or an affiliate thereof; (xii) any and all fees, costs and expenses incurred
in implementing or maintaining third-party or proprietary software tools, programs or other technology for the benefit of the Company
(including, without limitation, any and all fees, costs and expenses of any investment, books and records, portfolio compliance and reporting
systems, general ledger or portfolio accounting systems and similar systems and services, including, without limitation, consultant,
software licensing, data management and recovery services fees and expenses); (xiii) costs and expenses incurred with respect to market
information systems and publications, research publications and materials, and settlement, clearing, transfer agent, dividend agent and
custodial fees and expenses; (xiv) federal, state and local registration fees; (xv) federal, state and local taxes and license fees;
(xvi) independent directors’ fees and expenses, including reasonable travel, entertainment, lodging and meal expenses, and any
legal counsel or other Advisors retained by, or at the discretion or for the benefit of, the independent directors; (xvii) costs of maintaining
compliance with all federal, state and local rules and regulations or any other regulatory agency, including but not limited to costs
of preparing and filing reports or other documents required by the SEC or other regulators, and all fees, costs and expenses related
to compliance-related matters (such as developing and implementing specific policies and procedures in order to comply with certain regulatory
requirements) and regulatory filings related to the Company’s activities and/or other regulatory filings, notices or disclosures
of the Advisor and its affiliates relating to the Company and its activities; (xviii) costs of any reports, proxy statements or other
notices to stockholders, including printing costs; (xix) fidelity bond, directors and officers/errors and omissions liability insurance,
and any other insurance premiums; (xx) direct costs and expenses of administration, including printing, mailing, telephone, copying,
secretarial and other staff, independent auditors, tax preparers and outside legal costs; (xxi) proxy voting and/or solicitation expenses;
(xxii) all expenses relating to payments of dividends or interest or distributions in cash or any other form made or caused to be made
by the Board to or on account of holders of the securities of the Company, including in connection with any dividend reinvestment plan
or direct stock purchase plan; (xxiii) costs incurred in connection with the formation or maintenance of entities or vehicles to hold
the Company’s assets for tax or other purposes; (xxiv) the allocated costs incurred by the Advisor and/or the Administrator in
providing managerial assistance to those portfolio companies that request it; (xxv) allocable fees and expenses associated with marketing
efforts on behalf of the Company; (xxvi) all fees, costs and expenses of any litigation or threatened litigation (whether civil, criminal
or otherwise) against the Company, or against any director or officer of the Company in his or her capacity as such, involving the Company
or its portfolio companies and the amount of any judgments or settlements paid in connection therewith, directors and officers, liability
or other insurance (including costs of title insurance) and indemnification (including advancement of any fees, costs or expenses to
persons entitled to indemnification) or extraordinary expense or liability relating to Company’s affairs; (xxvii) fees, costs and
expenses of organizing, redomesticating, merging, liquidating or dissolving the Company, selling equity interest in the Company, or amending
the governing documents of the Company and/or winding up and liquidating the Company’s assets; and (xxviii) all other costs and
expenses incurred by the Company, the Advisor or the Administrator in connection with administering the Company’s business and
investment operations, including the costs and expenses of selecting, evaluating, originating, acquiring, owning, protecting, maintaining,
developing and disposing of investments, including appraisal, reporting, audit and legal fees. Each subsidiary of the Company, if any,
that makes investments will bear all of its own organizational and operating fees, costs, expenses and liabilities and, as a result,
the Company will indirectly bear these fees, costs, expenses and liabilities.

 

    4

     

    

 

For
the avoidance of doubt, the Company shall be solely responsible for any placement or “finder’s fees” payable to placement
agents engaged by the Company or its affiliates in connection with the offering of securities by the Company.

 

If
any of the expenses contained in this agreement or other expenses are incurred jointly for the account of the Company and any other investment
funds or accounts sponsored or managed by the Advisor or its affiliates (together with the Company, the “Related Funds”),
(i) to the extent such expenses are solely incurred with respect to a co-investment with the Company, such expenses will be allocated
among the Company and such other funds or accounts in proportion to the size of the investment made by each fund or account in the activity
or entity to which such expense relates, (ii) to the extent such expenses are incurred with respect to the general operation or administration
of the Related Funds, such expenses will be allocated in proportion to the fair value of the assets (excluding cash, cash equivalents
and U.S. government securities) under management of each Related Fund, or (iii) in such other manner as the Advisor considers fair and
equitable. To the extent that expenses to be borne by the Company are paid by the Advisor or an affiliate thereof, the Company will reimburse
the Advisor or such affiliate for such expenses.

 

Organization
and offering costs will only be the responsibility of the Company, and to the extent that expenses to be borne by the Company are paid
by the Advisor or an affiliate thereof, the Company will reimburse the Advisor or such affiliate for such expenses.

 

    5

     

    

 

		5.	Limitation
                                            of Liability of the Administrator; Indemnification

 

The
Administrator (and its officers, managers, partners, agents, employees, controlling persons, members and any other person or entity affiliated
with it) shall not be liable to the Company 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 Company and the Company shall indemnify,
defend and protect the Administrator (and its officers, members, managers, partners, agents, employees, controlling persons, members,
and any other person or entity affiliated with the Administrator each of whom shall be deemed a third party beneficiary hereof) (collectively,
the “Indemnified Parties”) and hold them harmless from and against all damages, liabilities, costs and expenses (including
reasonable attorneys’ fees and amounts reasonably paid in settlement) incurred by the Indemnified Parties in or by reason of any
pending, threatened or completed action, suit, investigation or other proceeding (including an action or suit by or in the right of the
Company or its security holders) arising out of or otherwise based upon the performance of any of the Administrator’s duties or
obligations under this Agreement or otherwise as administrator for the Company. 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 Company or its security holders to which the
Indemnified Parties would otherwise be subject by reason of criminal conduct, 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).

 

		6.	Activities
                                            of the Administrator

 

The
services of the Administrator to the Company are not to be deemed to be exclusive, and the Administrator and each affiliate is free to
render services to others. It is understood that directors, officers, employees and stockholders of the Company 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 Company as stockholders or otherwise.

 

		7.	Duration
                                            and Termination of this Agreement

 

		a.	This
                                            Agreement shall become effective as of the first date above written. This Agreement shall
                                            continue in effect for two (2) years from the date first written above, and thereafter shall
                                            continue automatically for successive annual periods, provided that such continuance is specifically
                                            approved at least annually by (a) the vote of the Board, or by the vote of a majority of
                                            the outstanding voting securities of the Company and (b) the vote of a majority of the Company’s
                                            directors who are not parties to this Agreement or “interested persons” (as such
                                            term is defined in Section 2(a)(19) of the Investment Company Act) of any such party.

 

		b.	The
                                            Agreement may be terminated at any time, without the payment of any penalty, on sixty (60)
                                            days’ written notice, by the vote of a majority of the outstanding voting securities
                                            of the Company, or by the vote of the Board or by the Administrator.

 

    6

     

    

 

		c.	This
                                            Agreement may not be assigned by a party without the consent of the other party; provided,
                                            however, that the rights and obligations of the Company under this Agreement shall
                                            not be deemed to be assigned to a newly formed entity in the event of the merger of the Company
                                            into, or conveyance of all of the assets of the Company to, such newly formed entity; provided,
                                            further, however, that the sole purpose of that merger or conveyance is to
                                            effect a mere change in the Company’s legal form into another limited liability entity.
                                            The provisions of 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 only be amended pursuant to a written instrument by mutual consent of the parties.

 

		9.	Severability

 

If
any provision of this Agreement shall be held or made invalid by a court decision, statute or rule, or shall be otherwise rendered invalid,
the remainder of this Agreement shall not be affected thereby. For the avoidance of doubt, to the extent compliance with the terms of
this Agreement would violate any provision of the 1940 Act, such terms will be rendered invalid and the remainder of this Agreement shall
be not be affected thereby.

 

		10.	Governing
                                            Law

 

This
Agreement contains the entire agreement of the parties and supersedes all prior agreements, understandings and arrangements with respect
to the subject matter hereof. This Agreement shall be construed in accordance with the laws of the State of New York and in accordance
with the applicable provisions of the Investment Company Act. In such case, to the extent the applicable laws of the State of New York,
or any of the provisions herein, conflict with the provisions of the Investment Company Act, the latter shall control. To the fullest
extent permitted by the Investment Company Act and the Advisers Act, as amended, the sole and exclusive forum for any action, suit or
proceeding with respect to this Agreement shall be a federal or state court located in the State of New York, and each party hereto,
to the fullest extent permitted by law, hereby irrevocably waives any objection that it may have, whether now or in the future, to the
laying of venue in, or to the jurisdiction of, any and each of such courts for the purposes of any such action, suit or proceeding and
further waives any claim that any such action, suit or proceeding has been brought in an inconvenient forum, and each party hereto hereby
submits to such jurisdiction and consents to process being served in any such action, suit or proceeding, without limitation, by United
States mail addressed to the party at its principal office.

 

    7

     

    

 

		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

 

Any
notice under this Agreement shall be given in writing, addressed and delivered or mailed, postage prepaid, to the other party at its
principal office.

 

		13.	Counterparts
                                            

 

This
Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which taken together shall
constitute a single agreement. Either party may deliver an executed copy of this Agreement, and of any documents contemplated hereby,
by facsimile or other electronic transmission to the other party, and such delivery shall have the same force and effect as any other
delivery of a manually signed copy of this Agreement or of such other documents.

 

		14.	No
                                            Third-Party Beneficiary

 

Other
than expressly provided for in Paragraph 5 of this Agreement, this Agreement does not, and is not intended to, confer any rights or remedies
upon any person other than the parties to this Agreement; there are no third-party beneficiaries of this Agreement, including, but not
limited to, stockholders of the Company.

 

[Remainder
of Page Intentionally Left Blank]

 

    8

     

    

 

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

 

	 	AFC
BDC Inc. 
	 	 
	 	By:	/s/
Gabriel A. Katz
	 	 	Name:	Gabriel
    A. Katz
	 	 	Title:	Chief
    Legal Officer, Chief Compliance Officer and Secretary

 

	 	AFC
Advisor LLC
	 	 
	 	By:	/s/
Bernard D. Berman
	 	 	Name:	Bernard
    D. Berman
	 	 	Title:	Authorized
    Signatory

 

    9Exhibit 10.1

 

INVESTMENT
ADVISORY AGREEMENT

 

BETWEEN

 

AFC
BDC INC. 

 

AND

 

AFC
ADVISOR LLC

 

This
Agreement (the “Agreement”) is made as of April 4, 2022, by and between AFC BDC Inc., a Maryland corporation (the “Company”),
and AFC Advisor LLC, a Delaware limited liability company (the “Advisor”).

 

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

 

WHEREAS,
the Company desires to retain the Advisor to furnish investment advisory services to the Company on the terms and conditions hereinafter
set forth, and the Advisor desires to be retained to provide such services.

 

NOW,
THEREFORE, in consideration of the premises and for other good and valuable consideration, the parties hereby agree as follows:

 

		1)	Duties
    of the Advisor

 

	 	a)	The
    Company hereby engages the Advisor to act as the investment adviser to the Company and to manage the investment and reinvestment
    of the assets of the Company, subject to the supervision of the Board of Directors of the Company (the “Board”),
    for the period and upon the terms herein set forth, (x) in accordance with the investment objective, policies and restrictions
    that are set forth in the reports and/or registration statements that the Company files with the Securities and Exchange Commission
    (the “SEC”) from time to time, and prior to the date on which the SEC declares the Company’s registration
    statements effective, in accordance with the investment objective, policies and restrictions that are set forth in the Company’s
    confidential private placement memorandum dated [●], 2022, as amended from time to time (the “PPM”); (y) in
    accordance with all other applicable federal and state laws, rules and regulations, and the Company’s charter and by-laws
    as the same may be amended from time to time; and (z) in accordance with the Investment Company Act. Without limiting the generality
    of the foregoing, the Advisor shall, during the term and subject to the provisions of this Agreement: (i) determine the composition
    of the portfolio of the Company, the nature and timing of the changes therein and the manner of implementing such changes; (ii) identify/source,
    research, evaluate and negotiate the structure of the investments made by the Company; (iii) close and monitor the Company’s
    investments; (iv) determine the securities and other assets that the Company will purchase, retain, or sell; (v) use reasonable
    endeavors to ensure that the Company’s investments consist mainly of assets, shares, securities or currencies (or derivative
    contracts relating thereto), which for the avoidance of doubt may include loans, notes and other evidences of indebtedness; (vi) perform
    due diligence on prospective portfolio companies; and (vii) provide the Company with such other investment advisory, research,
    and related services as the Company may, from time to time, reasonably require for the investment of its funds, including providing
    operating and managerial assistance to the Company and its portfolio companies as required. The Advisor shall have the power and
    authority on behalf of the Company to effectuate its investment decisions for the Company, including the execution and delivery of
    all documents relating to the Company’s investments and the placing of orders for other purchase or sale transactions on behalf
    of the Company. In the event that the Company determines to acquire debt financing, the Advisor will arrange for such financing on
    the Company’s behalf, subject to the oversight and approval of the Board. If it is necessary or appropriate for the Advisor
    to make investments on behalf of the Company through a special purpose vehicle, the Advisor shall have authority to create or arrange
    for the creation of such special purpose vehicle and to make such investments through such special purpose vehicle (in accordance
    with the Investment Company Act).

 

     

     

    

 

	 	b)	The
Advisor hereby accepts such engagement and agrees during the term hereof to render the services described herein for the compensation
provided herein.

 

	 	c)	The
    Advisor is hereby authorized to enter into one or more sub-advisory agreements with other investment advisers (each, a “Sub-Adviser”)
    pursuant to which the Advisor may obtain the services of the Sub-Advisor(s) to assist the Advisor in fulfilling its responsibilities
    hereunder. Specifically, the Advisor may retain a Sub-Adviser to recommend specific securities or other investments based upon the
    Company’s investment objective and policies, and work, along with the Advisor, in structuring, negotiating, arranging or effecting
    the acquisition or disposition of such investments and monitoring investments on behalf of the Company, subject to the oversight
    of the Advisor and the Company. The Company shall be responsible for any compensation payable to any Sub-Adviser. Any sub-advisory
    agreement entered into by the Advisor shall be in accordance with the requirements of the Investment Company Act and other applicable
    federal and state law.

 

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

 

	 	e)	The
    Advisor shall keep and preserve for the period required by the Investment Company Act any books and records relevant to the provision
    of its investment advisory services to the Company and shall specifically maintain all books and records in accordance with Section 31(a) of
    the Investment Company Act with respect to the Company’s portfolio transactions and shall render to the Board such periodic
    and special reports as the Board may reasonably request. The Advisor agrees that all records that it maintains for the Company are
    the property of the Company and will surrender promptly to the Company any such records upon the Company’s request, provided
    that the Advisor may retain a copy of such records.

 

	 	f)	The
    Advisor shall be primarily responsible for the execution of any trades in securities in the Company’s portfolio and the Company’s
    allocation of brokerage commissions.

 

		2)	Company’s
    Responsibilities and Expenses Payable by the Company

 

Except
as otherwise provided herein or in the Administration Agreement (the “Administration Agreement”), dated April 4, 2022,
between the Company and the Advisor (the Advisor, in its capacity as the administrator, the “Administrator”), (i)
the Advisor shall be solely responsible for, and the Company shall have no obligation to pay or reimburse the Advisor or its affiliates,
for the respective compensation of the Advisor’s officers and employees who (a) serve on the Advisor’s investment committee,
or (b) provide underwriting and/or portfolio management services to the Company under this Agreement, (such personnel providing the services
described in this item (i), the “investment personnel”); and (ii) the Company shall pay or reimburse the Advisor or its affiliates,
as applicable, for the Company’s fair and equitable allocable share of the compensation, including annual base salary, bonus, any
related withholding taxes and employee benefits, paid to personnel providing finance, tax, accounting, internal audit, legal, risk management,
operations, originations, marketing, investor relations, portfolio servicing, compliance services and other non-investment personnel
of the Advisor and its affiliates as reasonably determined by the Advisor to appropriately reflect the portion of time spent devoted
by such personnel to the Company’s affairs (such personnel described in this item (ii), the “non-investment personnel”).
The Advisor shall provide the Company with such written detail as the Company may reasonably request to support the determination of
the Company’s share of such costs.

 

The
Company will bear its own expenses or reimburse the Administrator or Advisor, as applicable, including, without limitation, for the fees
and costs enumerated in the Administration Agreement, as may be amended from time to time, including but not limited to Section 4 thereof.

 

    2

     

    

 

		3)	Compensation
    of the Advisor

 

The
Company agrees to pay, and the Advisor agrees to accept, as compensation for the services provided by the Advisor hereunder, a base management
fee (the “Management Fee”) and an incentive fee (the “Incentive Fee”) as hereinafter set forth.
The Company shall make any payments due hereunder to the Advisor or to the Advisor’s designee as the Advisor may otherwise direct.

 

	 	a)	
    For services rendered under this Agreement,
the Management Fee will be payable quarterly in arrears. The Management Fee for any partial month or quarter, as the case may be, will
be appropriately prorated and adjusted (based on the number of days actually elapsed at the end of such partial month or quarter) relative
to the total number of days in such month or quarter. The Management Fee shall be calculated as follows:

 	 	i)	Prior to an initial public offering (“IPO”) of the Company’s stock, if any, the Company will pay to the Advisor an asset-based fee (the “Pre-IPO Management Fee”) for management services in an amount equal to an annual rate of 1.50% of the NAV at the end of the most recently completed calendar quarter, excluding the portion of NAV represented by cash or cash equivalents (“Fee-Eligible NAV”).

 	 	ii)	Following
    an IPO, the Management Fee will be calculated at an annual rate of 1.50% of gross assets, including assets purchased with borrowed
    funds, but excluding cash and cash equivalents, based on the value of our total assets at the end of the most recently
    completed calendar quarter. 

 

	 	b) 	The Incentive Fee consists of two components that are independent
of each other with the result that one component may be payable even if the other is not. A portion of the Incentive Fee is based on
the Company’s income (the “Incentive Fee on Income”) and a portion is based on the Company’s capital gains
(the “Incentive Fee on Capital Gains”), each as described below:

 

	 	
    i)
	The first component, the Incentive Fee
on Income, shall be calculated and paid in arrears based on the Company’s Pre-Incentive Fee Net Investment Income for the immediately
preceding quarter (or upon termination of the this Agreement, as of the termination date). “Pre-Incentive Fee Net Investment Income”
means interest income, dividend income and any other income (including any other fees, such as commitment, origination, structuring,
diligence and consulting fees or other fees that the Company receives from portfolio companies, other than fees for providing managerial
assistance) accrued during the calendar quarter, minus the Company’s operating expenses for the quarter (including the Management
Fee, expenses payable under the Administration Agreement, and any interest expense and dividends paid on any issued and outstanding preferred
stock, but excluding the Incentive Fee). Pre-Incentive Fee Net Investment Income includes, in the case of investments with a deferred
interest feature (such as OID debt instruments with payment-in-kind interest and zero coupon securities), accrued income that the Company
has not yet received in cash. Pre-Incentive Fee Net Investment Income does not include any realized capital gains, realized capital losses
or unrealized capital appreciation or depreciation.

 

The calculation of the Incentive Fee on Income for each quarter is as follows:

 

	 	 	
    (A)
	No Incentive Fee on Income will be payable
to the Advisor in any calendar quarter in which the Company’s Pre-Incentive Fee Net Investment Income does not exceed the preferred
return rate of 1.50% (the “Preferred Return”) on net assets;

 

	 	 	
    (B)
	50% of the Company’s Pre-Incentive
Fee Net Investment Income, if any, that exceeds the Preferred Return but is less than or equal to 2.5% in any calendar quarter will be
payable to the Advisor. This portion of the Company’s Incentive Fee on Income is referred to as the “catch up” and
is intended to provide the Advisor with an incentive fee of 20% on all of the Company’s Pre-Incentive Fee Net Investment Income
when the Company’s Pre-Incentive Fee Net Investment Income reaches 2.5% on net assets in any calendar quarter; and

 

    3

     

    

 

	 	 	
    (C)
	For any quarter in which the Company’s
Pre-Incentive Fee Net Investment Income exceeds 2.5% on net assets, the Incentive Fee on Income will equal 20% of the amount of the Company’s
Pre-Incentive Fee Net Investment Income, as the Preferred Return and catch-up will have been achieved.

 

	 	
    ii.)
	The second component, the Incentive
Fee on Capital Gains, shall be determined and payable in arrears as of the end of each fiscal year (or upon termination of this Agreement)
in an amount equal to 20% of realized capital gains, if any, on a cumulative basis from inception through the end of each fiscal year
(or upon termination of this Agreement), computed net of all realized capital losses and unrealized capital depreciation on a cumulative
basis from inception through the end of the fiscal year (or upon termination of this Agreement), less the aggregate amount of any previously
paid Incentive Fee on Capital Gains.

 

The Incentive Fee will start to accrue as of the date the Company commences operations and any such fees outstanding at the time of a termination of this Agreement shall be payable to the Advisor.

 

Once an Incentive Fee on Income is earned and paid to the Advisor, it is not refundable, notwithstanding any losses incurred by the Company in subsequent periods, except that if the Company’s Pre-Incentive Fee Net Investment Income for any fiscal year does not exceed the amount equal to the product of (i) 6.0% and (ii) the Company’s NAV as of the last day of the immediately preceding fiscal year (such amount, the “Annual Hurdle Amount”), the Advisor will be obligated to pay the Company (such obligation to pay, the “Clawback Obligation”) an amount equal to the aggregate Incentive Fee on Income that was earned and paid to the Advisor during such fiscal year (such amount, the “Clawback Amount”); provided that under no circumstances will the Clawback Amount be more than the amount by which the Annual Hurdle Amount exceeds Pre-Incentive Fee Net Investment Income for the specified fiscal year. The Clawback Obligation is determined on an annual basis and any Incentive Fee on Income earned during a specified fiscal year will not be subject to the Clawback Obligation with respect to the Incentive Fee on Income earned during any prior or subsequent fiscal year. Notwithstanding the foregoing, for the Company’s first fiscal year, the Annual Hurdle Amount shall be the product of (i) 6% and (ii) the Company’s NAV immediately following the closing (at the Advisor’s sole determination) of the Company’s initial capital raise in connection with its election to be a BDC.

 

Examples of the quarterly incentive fee calculation are attached hereto as Annex A. Such examples are included for illustrative purposes only and are not considered part of this Agreement. The fees payable under this Agreement for any partial period will be appropriately prorated.

 

		4)	Covenants
    of the Advisor

 

The
Advisor agrees that it will remain registered as an investment adviser under the Advisers Act so long as the Company maintains its election
to be regulated as a BDC under the Investment Company Act. The Advisor agrees that its activities will at all times be in compliance
in all material respects with all applicable federal and state laws governing its operations and investments.

 

		5)	Excess
    Brokerage Commissions

 

The
Advisor is hereby authorized, to the fullest extent now or hereafter permitted by law, to cause the Company to pay a member of a national
securities exchange, broker or dealer an amount of commission for effecting a securities transaction in excess of the amount of commission
another member of such exchange, broker or dealer would have charged for effecting that transaction, if the Advisor determines in good
faith, taking into account such factors as price (including the applicable brokerage commission or dealer spread), size of order, difficulty
of execution, and operational facilities of the firm and the firm’s risk and skill in positioning blocks of securities, that such
amount of commission is reasonable in relation to the value of the brokerage and/or research services provided by such member, broker
or dealer, viewed in terms of either that particular transaction or its overall responsibilities with respect to the Company’s
portfolio, and constitutes the best net results for the Company.

 

    4

     

    

 

		6)	Investment
    Team

 

The
Advisor shall manage the Company’s portfolio through a team of key personnel and investment professionals (the “Investment
Team”) in cooperation with the Company’s Chief Executive Officer. The Investment Team shall be comprised of senior personnel
of the Advisor, supported by and with access to the investment professionals, analytical capabilities and support personnel of the Advisor.

 

		7)	Limitations
    on the Engagement of the Advisor

 

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

 

		8)	Responsibility
    of Dual Directors, Officers and/or Employees

 

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

 

		9)	Limitation
    of Liability of the Advisor; Indemnification

 

The
Advisor (and its officers, managers, partners, agents, employees, controlling persons, members and any other person or entity affiliated
with the Advisor, including without limitation its sole member) shall not be liable to the Company for any action taken or omitted to
be taken by the Advisor in connection with the performance of any of its duties or obligations under this Agreement or otherwise as an
investment adviser of the Company (except to the extent specified in Section 36(b) of the Investment Company Act concerning
loss resulting from a breach of fiduciary duty (as the same is finally determined by judicial proceedings) with respect to the receipt
of compensation for services), and the Company shall indemnify, defend and protect the Advisor (and its officers, managers, partners,
agents, employees, controlling persons, members and any other person or entity affiliated with the Advisor, including without limitation
its general partner or managing member and the Administrator each of whom shall be deemed a third-party beneficiary hereof) (collectively,
the “Indemnified Parties”) and hold them harmless from and against all damages, liabilities, costs and expenses (including
reasonable attorneys’ fees and amounts reasonably paid in settlement) incurred by the Indemnified Parties in or by reason of any
pending, threatened or completed action, suit, investigation or other proceeding (including an action or suit by or in the right of the
Company or its security holders) arising out of or otherwise based upon the performance of any of the Advisor’s duties or obligations
under this Agreement or otherwise as an investment adviser of the Company. Notwithstanding the preceding sentence of this Section 9
to the contrary, nothing contained herein shall protect or be deemed to protect the Indemnified Parties against or entitle or be deemed
to entitle the Indemnified Parties to indemnification in respect of, any liability to the Company or its security holders to which the
Indemnified Parties would otherwise be subject by reason of criminal conduct, willful misfeasance, bad faith or gross negligence in the
performance of the Advisor’s duties or by reason of the reckless disregard of the Advisor’s duties and obligations under
this Agreement (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).

 

    5

     

    

 

		10)	Effectiveness,
    Duration and Termination of Agreement

 

	 	a)	This
    Agreement shall become effective as of the first date above written. This Agreement may be terminated at any time, without the payment
    of any penalty, on sixty (60) days’ written notice, by the vote of a majority of the Board or by a vote of the majority
    of the outstanding voting securities of the Company, in accordance with the requirements of the Investment Company Act, or by the
    Advisor. The provisions of Section 9 of this Agreement shall remain in full force and effect, and the Advisor shall remain entitled
    to the benefits thereof, notwithstanding any termination of this Agreement. Further, notwithstanding the termination or expiration
    of this Agreement as aforesaid, the Advisor shall be entitled to any amounts owed under Section 3 through the date of termination
    or expiration, and Section 9 shall continue in force and effect and apply to the Advisor and its representatives as and to the
    extent applicable.

 

	 	b)	This
    Agreement shall continue in effect for two (2) years from the first date above written and thereafter shall continue automatically
    for successive annual periods, provided that such continuance is specifically approved at least annually by (A) the vote of
    the Board, or by the vote of a majority of the outstanding voting securities of the Company and (B) the vote of a majority of
    the Company’s directors who are not parties to this Agreement or “interested persons” (as such term is defined
    in Section 2(a)(19) of the Investment Company Act) of any such party, in accordance with the requirements of the Investment
    Company Act.

 

	 	c)	This
    Agreement will automatically terminate in the event of its “assignment” (as such term is defined for purposes of Section 15(a)(4) of
    the Investment Company Act).

 

		11)	Notices

 

Any
notice under this Agreement shall be given in writing, addressed and delivered or mailed, postage prepaid, to the other party at its
principal office.

 

		12)	Amendments

 

This
Agreement may be amended by mutual consent, but the consent of the Company must be obtained in conformity with the requirements of the
Investment Company Act.

 

		13)	Severability.

 

If
any provision of this Agreement shall be held or made invalid by a court decision, statute or rule, or shall be otherwise rendered invalid,
the remainder of this Agreement shall not be affected thereby. For the avoidance of doubt, to the extent compliance with the terms of
this Agreement would violate any provision of the 1940 Act, such terms will be rendered invalid and the remainder of this Agreement shall
be not be affected thereby.

 

    6

     

    

 

		13)	Entire
    Agreement; Governing Law

 

This
Agreement contains the entire agreement of the parties and supersedes all prior agreements, understandings and arrangements with respect
to the subject matter hereof. This Agreement shall be construed in accordance with the laws of the State of New York and in accordance
with the applicable provisions of the Investment Company Act. In such case, to the extent the applicable laws of the State of New York,
or any of the provisions herein, conflict with the provisions of the Investment Company Act, the latter shall control. To the fullest
extent permitted by the Investment Company Act and the Advisers Act, as amended, the sole and exclusive forum for any action, suit or
proceeding with respect to this Agreement shall be a federal or state court located in the State of New York, and each party hereto,
to the fullest extent permitted by law, hereby irrevocably waives any objection that it may have, whether now or in the future, to the
laying of venue in, or to the jurisdiction of, any and each of such courts for the purposes of any such action, suit or proceeding and
further waives any claim that any such action, suit or proceeding has been brought in an inconvenient forum, and each party hereto hereby
submits to such jurisdiction and consents to process being served in any such action, suit or proceeding, without limitation, by United
States mail addressed to the party at its principal office.

 

		14) 	No Third-Party Beneficiary

 

Other
than expressly provided for in Paragraph 9 of this Agreement, this Agreement does not, and is not intended to, confer any rights or remedies
upon any person other than the parties to this Agreement; there are no third-party beneficiaries of this Agreement, including, but not
limited to, stockholders of the Company.

 

	15) 	Counterparts

 

This
Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which taken together shall
constitute a single agreement. Either party may deliver an executed copy of this Agreement, and of any documents contemplated hereby,
by facsimile or other electronic transmission to the other party, and such delivery shall have the same force and effect as any other
delivery of a manually signed copy of this Agreement or of such other documents.

 

*
* *

 

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

 

	 	AFC
    BDC INC. 
	 	 
	 	By: 	/s/
Gabriel A. Katz
	 	 	Name: 	Gabriel
    A. Katz 
	 	 	Title: 	Chief
Legal Officer, Chief Compliance Officer and Secretary 
	 
	 	AFC
    ADVISOR LLC
	 	 
	 	By: 	/s/
    Bernard D. Berman
	 	 	Name: 	Bernard
    D. Berman 
	 	 	Title: 	Authorized
Signatory

 

    7

     

    

 

Annex
A

 

Incentive
Fee on Income Examples

 

The
following scenarios set forth hypothetical examples of the quarterly Incentive Fee on Income calculation in accordance with our Advisory
Agreement without consideration to any Clawback Obligation.

 

Example
1

 

Assumptions:

 

		■	Net
assets as of the last day of the immediately preceding fiscal quarter of $100.0 million; and

 

		■	Pre-Incentive
Fee Net Investment Income of $1.4 million.

 

Since
Pre-Incentive Fee Net Investment Income of $1.4 million does not exceed the Preferred Return (1.5% * $100,000,000 = $1,500,000), there
is no Incentive Fee on Income paid to the Advisor for such quarter.

 

Example
2

 

Assumptions:

 

		■	Net
assets as of the last day of the immediately preceding fiscal quarter of $100.0 million; and

 

		■	Pre-Incentive
Fee Net Investment Income of $2.0 million.

 

Under
these assumptions, Pre-Incentive Fee Net Investment Income exceeds the Preferred Return but does not exceed 2.5% of net assets as of
the last day of the immediately preceding fiscal quarter, so the quarterly Incentive Fee on Income payable to our Advisor would be $250,000,
calculated as follows:

 

0.5
* ($2,000,000 – $1,500,000) = $250,000

 

Example
3

 

Assumptions:

 

		■	Net
assets as of the last day of the immediately preceding fiscal quarter of $100.0 million; and

 

		■	Pre-Incentive
Fee Net Investment Income of $4.0 million.

 

Under
these assumptions, Pre-Incentive Fee Net Investment Income exceeds 2.5% of net assets as of the last day of the immediately preceding
fiscal quarter, so the quarterly Incentive Fee on Income payable to our Advisor would be $800,000, calculated as follows:

 

[0.5
* ($2,500,000 – $1,500,000)] + [0.2 * ($4,000,000 – $2,500,000)] = $800,000

 

Incentive
Fee on Income Example -- Clawback Obligation

 

The
following scenario sets forth a simplified, hypothetical example of an annual Clawback Obligation. Our actual results may differ materially
from the following example.

 

This
example of an annual Clawback Obligation assumes the following:

 

		●	NAV
as of the last day of the immediately preceding fiscal year of $100.0 million;

 

		●	Incentive
Fee on Income of $800,000 earned and paid to the Advisor during such fiscal year; and

 

		●	Pre-Incentive
Fee Net Investment Income for the specified fiscal year of $4.0 million.

 

    A-1

     

    

 

Under
these assumptions, since Pre-Incentive Fee Net Investment Income of $4.0 million does not exceed the Annual Hurdle Amount of $6.0 million
($100,000,000 *0.6 = $6,000,000), the Clawback Amount would be $800,000, representing the entire Incentive Fee on Income that was paid
to the Advisor during such fiscal year; provided, that under no circumstances shall the Clawback Amount be more than the amount by which
the Annual Hurdle Amount exceeds Pre-Incentive Fee Net Investment Income for the specified fiscal year.

 

Second
Component -- Capital Gains Incentive Fee

 

Capital
Gains Incentive Fee Example

 

The
following summary sets forth a simplified, hypothetical example of an annual Capital Gains Incentive Fee calculation in accordance with
our Advisory Agreement. Our actual results may differ materially from the following example.

 

This
example of a Capital Gains Incentive Fee calculation assumes the following:

 

	 	■	Year
    1: A $20.0 million investment made in Company A (“Investment A”), and a $30.0 million investment made in Company B (“Investment
    B”); 

 

	 	■	Year
    2: Investment A sold for $50.0 million and fair market value (“FMV”) of Investment B determined to be $32.0 million;
    

 

	 	■	Year
    3: FMV of Investment B determined to be $25.0 million; and

 

	 	■	Year
    4: Investment B sold for $31.0 million.

 

Under
these assumptions, the hypothetical total Capital Gains Incentive Fee payable to our Advisor would be as calculated below:

 

	 	 	​	Illustrative

    Amount
	​	Calculation
	1.	Year
    1	 	None	 	 
	 	 	​	 	​	 
	2.	Year
    2	 	$6,000,000	 	$30.0
    million realized capital gains on sale of Investment A, multiplied by 20.0%
	 	 	 	 	 	 
	3.	Year
    3	 	None	 	$25.0
    million ($30.0 million realized capital gains on sale of Investment A less $5.0 million cumulative capital depreciation on
    Investment B) multiplied by 20.0%, less $6 million (previous Capital Gains Incentive Fee paid in Year 2)
	 	 	 	 	 	 
	4.	Year
    4	 	$200,000	 	$31.0
    million ($30.0 million realized capital gains on sale of Investment A plus $1 million realized capital gains on sale of Investment
    B) multiplied by 20.0%, less $6.0 million (previous Capital Gains Incentive Fee paid in Year 2)
	 	 	 	 	 	 
	5.	Total
    Years 1 through 4	​	$6,200,000	​	Total
    of above

 

    A-2

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