CM Second Amended Total Return Swap Confirmation Letter Agreement



 Exhibit 10.3 
  





 
  

			
		 	 UBS AG
 100 Liverpool Street

		 	London EC2M 2RH
		 	 Tel. +44-20-7567

8000


 Execution Version 
  

 
  

			
	Date:	  	December 4, 2013 (as amended and restated as of September 26, 2014 and as further amended and restated as of November 20, 2017)
		
	To	  	CM Finance Inc. (“Counterparty”)
		
	Attention:	  	Stephon Barnes, Christopher E. Jansen and Michael C. Mauer
		
	Fax No:	  	(212) 380-5915
		
	From:	  	UBS AG, London Branch (“UBS”)
		
	Re:	  	Total Return Swap Transaction

  
  

Ladies and Gentlemen: 
 The purpose of this letter agreement is
to set forth the terms and conditions of the Transaction entered into between UBS AG, London Branch (“UBS”) and CM Finance Inc. (“Counterparty”), a corporation incorporated under the law of the State
of Maryland, on the Trade Date specified below (the “Transaction”). This letter constitutes a “Confirmation” as referred to in the Master Agreement specified below. 

The definitions and provisions contained in the 2006 ISDA Definitions (the “Definitions”), as published by the International Swaps and
Derivatives Association, Inc., are incorporated into this Confirmation. In the event of any inconsistency between the Definitions and this Confirmation, this Confirmation shall govern. Capitalized terms used but not defined in this Confirmation have
the meanings assigned to them in Annex A. Capitalized terms used but not defined in this Confirmation or in Annex A have the meanings assigned to them in the Definitions or, if not defined in the Definitions, in the Reference Obligation
Indenture referred to below. 
 With effect from the Second Amendment Effective Date specified below, this Confirmation amends and restates the prior
Confirmation, dated as of December 4, 2013 and amended and restated on September 26, 2014 (without regard to any subsequent amendments thereto, the “Original Confirmation”) relating to the Transactions described herein,
which Original Confirmation (with respect to the period from and after the Second Amendment Effective Date) is hereby superseded and shall be of no further force or effect. 

  
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	1.	AGREEMENT 

 This Confirmation supplements, forms a part of and is subject to, the ISDA
Master Agreement (Multicurrency–Cross Border), dated as of May 20, 2013 (as amended, supplemented and otherwise modified and in effect from time to time, the “Master Agreement”), between UBS and Counterparty. All
provisions contained in the Master Agreement govern this Confirmation except as expressly modified below. 
  

	2.	TERMS OF TRANSACTION 

 The terms of the particular
Transaction to which this Confirmation relates are as follows: 
  

			
	General Terms:	  	
		
	Amendment Effective Date:	  	September 26, 2014
		
	Second Amendment Effective Date:	  	November 20, 2017
		
	Trade Date:	  	Second Amendment Effective Date
		
	Effective Date:	  	Second Amendment Effective Date
		
	Scheduled Termination Date:	  	December 5, 2019
		
	Termination Date:	  	The earlier of (i) the Scheduled Termination Date with respect to the Transaction, (ii) the Obligation Termination Date and (iii) an Early Termination Date. The obligations of the parties to make payments required
to be made hereunder shall survive the Termination Date.
		
	Obligation Termination Date:	  	In relation to any Terminated Obligation, the related Termination Settlement Date.
		
	Reference Entity:	  	CM Finance SPV Ltd., an exempted company incorporated with limited liability under the law of the Cayman Islands.
		
	Reference Obligation:	  	The Class A-R Notes issued from time to time by the Reference Entity under the Reference Obligation Indenture.
		
	Reference Obligation Principal Amount:	  	 As of the Effective Date, USD 0. Thereafter, on any day, the Reference Obligation Principal Amount shall be adjusted as follows, and in
the following order:
  
 (a) first, if there has been an increase in the Outstanding Class A-R Funded Amount on such day and immediately prior to such increase the Outstanding Class A-R Funded Amount was zero, by increasing the Reference Obligation
Principal



  
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		  	 Amount by an amount equal to (i) the Outstanding Class A-R Funded Amount immediately
after such increase, multiplied by (ii) the TRS Advance Percentage;
  
 (b)
second,
  
 (i) if there has been an increase in the Outstanding Class A-R Funded Amount on such day and immediately prior to such increase the Outstanding Class A-R Funded Amount was greater than zero, by increasing the Reference
Obligation Principal Amount on such day by an amount equal to (A) such increase in Outstanding Class A-R Funded Amount, multiplied by (B) the Reference Obligation Principal Amount immediately
prior to such increase, divided by (C) the Outstanding Class A-R Funded Amount immediately prior to such increase, or
  

(ii) if there has been a decrease in the Outstanding Class A-R Funded Amount on such day, by
decreasing the Reference Obligation Principal Amount on such day by an amount equal to (A) such decrease in Outstanding Class A-R Funded Amount, multiplied by (B) the Reference Obligation
Principal Amount immediately prior to such decrease, divided by (C) the Outstanding Class A-R Funded Amount immediately prior to such decrease; and

 
 (c) third, if such day is a Rebalancing Date, Above Threshold Rebalancing Date or Below
Threshold Rebalancing Date, in accordance with Clause 13 hereof.

		
	Reference Obligation Indenture:	  	The Fifth Amended and Restated Indenture, dated as of November 20, 2017 between the Reference Entity and U.S. Bank National Association, as trustee (the “Trustee”), as amended, supplemented or
modified prior to the date hereof, and as further amended, restated, supplemented or otherwise modified and in effect from time to time.
		
	Portfolio Asset:	  	Each “Portfolio Asset” under and as defined in the Reference Obligation Indenture.
		
	Portfolio:	  	At any time, all Portfolio Assets held by the Reference Entity at such time.


  
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	Notional Amount:	  	As of any date, the product of (i) the Outstanding Class A-R Funded Amount on such date, multiplied by (ii) the TRS Advance Percentage.
		
	TRS Advance Percentage:	  	50%
		
	Business Day:	  	New York, Boston, London and TARGET.
		
	Business Day Convention:	  	Following (which shall, other than with respect to the definition of “Monthly Period”, apply to any date specified herein for the making of any payment or determination or the taking of any action which falls on a day
that is not a Business Day).
		
	Payment Date:	  	Nine Business Days after the end of each Monthly Period.
		
	Monthly Period:	  	Each period from, and including, the 15th calendar day of each calendar month (each, a Monthly Date) to, but excluding, the next following Monthly Date, except that (a) the initial Monthly Period will commence
on, and include, the Effective Date and will end on, but exclude, the 15th day of December, 2013 and (b) the final Monthly Period will end on, but exclude, the date on which all of the Reference Obligations are paid in full.
		
	Calculation Agent:	  	UBS. Except as otherwise expressly provided herein, the Calculation Agent shall make all determinations, calculations and adjustments required pursuant to this Confirmation in good faith and in any commercially reasonable
manner.
		
	Calculation Agent City:	  	New York


  
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	Payments by Counterparty	  	
		
	Counterparty First Floating Amounts:	  	
		
	First Floating Amount Payer:	  	Counterparty
		
	First Floating Amount:	  	In relation to any First Floating Rate Payer Payment Date, the product of (a) the First Floating Rate Payer Calculation Amount for such First Floating Rate Payer Payment Date multiplied by (b) the Floating Rate Option
for such Transaction during the related First Floating Rate Payer Calculation Period plus the First Floating Spread multiplied by (c) the Floating Rate Day Count Fraction.
		
	First Floating Rate Payer Calculation Amount:	  	In relation to any First Floating Rate Payer Payment Date, an amount equal to the daily average, during the related First Floating Rate Payer Calculation Period, of the Notional Amount.
		
	First Floating Rate Payer Calculation Period:	  	Each First Floating Monthly Period, except that (a) the initial First Floating Rate Payer Calculation Period will commence on, and include, the Effective Date and (b) the final First Floating Rate Payer Calculation
Period will end on, but exclude, the Obligation Termination Date.
		
	 First Floating Rate
 Payer Payment
Dates:
	  	Each UBS Fixed Amount Payment Date
		
	First Floating Monthly Period:	  	Each period from, and including, a First Floating Rate Payer Payment Date to, but excluding, the next following First Floating Rate Payer Payment Date.
		
	Floating Rate Option:	  	One Month USD-LIBOR-BBA
		
	Linear Interpolation:	  	Applicable.
		
	First Floating Spread:	  	3.55%.
		
	Floating Rate Day Count Fraction	  	actual/360
		
	Reset Dates:	  	The first day of each First Floating Rate Payer Calculation Period will be a Reset Date.
		
	Compounding:	  	Inapplicable.


  
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	Counterparty First Fixed Amounts:	  	
		
	First Fixed Amount Payer:	  	Counterparty
		
	First Fixed Amount:	  	In relation to any First Fixed Rate Payer Payment Date, the product of (a) the product of (i) the daily average of the Unfunded Reference Obligation Amount for the related First Fixed Monthly Period, multiplied by
(ii) the TRS Advance Percentage multiplied by (b) the First Fixed Spread for such First Fixed Rate Payer Payment Date, multiplied by (c) the Fixed Rate Day Count Fraction.
		
	First Fixed Rate Payer Calculation Period:	  	Each First Fixed Monthly Period, except that (a) the initial First Fixed Rate Payer Calculation Period will commence on, and include, the Effective Date and (b) the final First Fixed Rate Payer Calculation Period will
end on, but exclude, the Obligation Termination Date.
		
	First Fixed Monthly Period	  	Each period from, and including, a First Fixed Rate Payer Payment Date to, but excluding, the next following First Fixed Rate Payer Payment Date.
		
	First Fixed Spread:	  	In relation to any First Fixed Rate Payer Payment Date, an amount equal to the daily average, during the related First Fixed Rate Payer Calculation Period, of the Daily First Fixed Spread.
		
	Daily First Fixed Spread:	  	On any day on which the Outstanding Class A-R Funded Amount is greater than 50% of the Maximum RCN Facility Funding Commitment, the Daily First Fixed Spread for such day shall be
2.50%; and on any other day, the Daily First Fixed Spread for such day shall be 2.75%.
		
	 First Fixed Rate
 Payer Payment Dates:
	  	Each UBS Fixed Amount Payment Date.
		
	Fixed Rate Day Count Fraction	  	30/360
		
	Counterparty Second Floating Amounts:	  	
		
	Second Floating Amount Payer:	  	Counterparty
		
	Second Floating Amount:	  	In relation to any Terminated Obligation, Capital Depreciation, if any.
		
	 Second Floating Rate
 Payer Payment
Dates:
	  	Each Total Return Payment Date


  
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	Payments by UBS:	  	
		
	UBS Fixed Amounts:	  	
		
	Fixed Amount Payer:	  	UBS
		
	Fixed Amount:	  	The Interest and Fee Amount for the related Fixed Amount Payer Calculation Period.
		
	Fixed Amount Payer Calculation Periods:	  	Each Monthly Period; provided that (a) the initial Fixed Amount Payer Calculation Period shall commence on and include the Effective Date and (b) the final Fixed Amount Payer Calculation Period shall end on, but
exclude, the final Obligation Termination Date.
		
	UBS Fixed Amount Payment Dates:	  	The Payment Date following the last day of any Fixed Amount Payer Calculation Period.
		
	UBS Floating Amounts:	  	
		
	Floating Amount Payer:	  	UBS
		
	Floating Amount:	  	In relation to any Terminated Obligation, Capital Appreciation, if any.
		
	Floating Rate Payer Payment Dates:	  	Each Total Return Payment Date.

  

	3.	ACCELERATED TERMINATION. 

 Collateral Default 

 

	(a)	If (i) Counterparty defaults in the performance of any of its obligations under Clause 9 in respect of the Transfer by Counterparty as Pledgor of any Eligible Credit Support or (ii) the Reference Entity
increases the Maximum RCN Facility Funding Commitment at any time after the Effective Date pursuant to Section 2.13 of the Reference Obligation Indenture, then UBS will have the right but not the obligation to terminate the Transaction in whole
(but not in part); provided that (A) in the case of sub-clause (i), UBS may deliver the relevant Accelerated Termination Notice (as defined below) at any time on or prior to the final Termination
Trade Date and (B) in the case of sub-clause (ii), UBS must deliver the relevant Accelerated Termination Notice (as defined below) within five Business Days after UBS receiving notice of the relevant
increase in order to exercise such termination right. UBS can exercise this termination right by delivering a termination notice to Counterparty (an “Accelerated Termination Notice” for purposes of this Clause 3(a)). Such
Accelerated Termination Notice shall specify the final Termination Trade Date and the proposed Termination Settlement Date. Upon the termination of the Transaction pursuant to this Clause 3(a), Counterparty shall pay an additional amount to UBS
equal to the applicable Breakage Costs on the Obligation Termination Date (which payment obligation of Counterparty shall survive the termination of the Transaction). 


  
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 Effect of Designation of Early Termination Date 

 

	(b)	If there occurs or is effectively designated an Early Termination Date under the Master Agreement, then (i) notwithstanding any contrary or otherwise inconsistent provision of the Master Agreement, the provisions
set forth in Section 6(e) of the Master Agreement shall not apply to the Transaction and the amount of all payments in respect of each Terminated Obligation shall not be an amount determined in accordance with Section 6(e) of the Master
Agreement but shall instead be the Counterparty Second Floating Amount or UBS Floating Amount (as the case may be) determined in accordance with Clause 4 (subject, in the case of Clause 4(a), to the limitations set forth therein with respect to
Counterparty relying on such provision), together with any Counterparty First Floating Amount, the Counterparty First Fixed Amount, any UBS Fixed Amount and Breakage Costs (if any) determined in accordance with this Confirmation and subject to
netting under the Master Agreement, (ii) the party that designated such Early Termination Date (or the Non-Defaulting Party in the case of an automatic designation) will promptly deliver a notice (an
“Accelerated Termination Notice” for purposes of this Clause 3(b)) to the other party (which Accelerated Termination Notice shall specify the final Termination Trade Date and the proposed Termination Settlement
Date and may form part of any notice designating such Early Termination Date) and (iii) the amount, if any, payable in respect of such Early Termination Date will be determined in accordance with this Confirmation based upon the delivery of
such Accelerated Termination Notice. Notwithstanding the foregoing, upon the termination of the Transaction pursuant to this Clause 3(b) other than as a result of an Event of Default or Termination Event with respect to which UBS is the Defaulting
Party or an Affected Party, Counterparty shall pay an additional amount to UBS equal to the applicable Breakage Costs on the Obligation Termination Date (which payment obligation of Counterparty shall survive the termination of the Transaction);
provided that, Counterparty shall not be required to pay any Breakage Costs in the event of termination of the Transaction as a result of (i) an Additional Termination Event pursuant to Clause 3(c)(i) if the related “Event of
Default” (as defined in the Reference Obligation Indenture) is a direct result of any action or omission by UBS or any of its Affiliates or (ii) an Additional Termination Event pursuant to Clause 3(c)(ii) or 3(c)(iii). 


Additional Termination Events 
  

	(c)	Each of the following shall constitute an Additional Termination Event under the Master Agreement with respect to which Counterparty will be the sole Affected Party and each of the Transactions entered into hereunder
will constitute an Affected Transaction: 

  

	 	(i)	the occurrence of an “Event of Default” under (and as defined in) the Reference Obligation Indenture (provided that, for purposes of this Confirmation and the Master Agreement, the determination of
whether an “Event of Default” (as so defined) has occurred with respect to any amount due and payable on the Reference Obligation on the stated maturity thereof shall be made (x) without giving effect to the first sentence of
Section 2.7(g) of the Reference Obligation Indenture and (y) without giving effect to any grace period in Section 5.1(a) or Section 5.1(b)(i) of the Reference Obligation Indenture); 


 

	 	(ii)	 if and for so long as any UBS Holder holds any part of the Reference Obligation as a hedge for the Transaction,
either (A) the ownership by such UBS Holder of the Reference Obligation (or any portion thereof) or (B) the compliance by such UBS Holder with its 



  
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obligations under the Reference Obligation Indenture or under the Reference Obligation would violate any law, rule or regulation of any governmental, regulatory or judicial authority applicable
to such UBS Holder; 

  

	 	(iii)	if and for so long as any UBS Holder holds any part of the Reference Obligation as a hedge for the Transaction, UBS reasonably determines that either (A) the ownership by such UBS Holder of the Reference Obligation
(or any portion thereof) or (B) the compliance by such UBS Holder with its obligations under the Reference Obligation Indenture or under the Reference Obligation should violate any law, rule or regulation of any governmental, regulatory or
judicial authority applicable to such UBS Holder (as shall be evidenced by either (x) evidence of a governmental, regulatory or judicial authority having informed UBS that such authority believes the foregoing to be the case or (y) a copy
of a “should” level opinion of external counsel confirming the foregoing); provided that UBS shall not be entitled to designate an Early Termination Date under this clause (iii) unless (A) UBS is simultaneously exercising any
similar rights it may have to effect a termination of all other swap transactions that are similarly affected (directly or indirectly as a result of any hedge position held in connection with such swap transactions) by the law, rule or regulation
underlying such event and (B) such designated Early Termination Date occurs no earlier than the later of (1) the date that is 90 days following the effective date of the notice designating such Early Termination Date and (2) the date
occurring five Local Business Days prior to the date on which the law, rule or regulation underlying such event becomes effective (and the 20 day period in Section 6(b)(iv) of the Master Agreement shall be deemed to have been amended
accordingly solely for purposes of the Additional Termination Event described in this clause (iii)); and 

  

	 	(iv)	if Counterparty fails to provide to UBS, within 15 calendar days following the end of any calendar month a copy of the unaudited balance sheet of the Counterparty as of the final day of such calendar month and such
failure is not cured within 5 Business Days following such notice by UBS to Counterparty of such failure. 


4.    FINAL PRICE DETERMINATION. 

Following the termination of the Transaction (i) pursuant to Clause 3 or (ii) by reason of the occurrence of the Scheduled Termination Date
(other than in connection with a Repayment), the Final Price for each Terminated Obligation will be determined in accordance with this Clause 4. 
  

	(a)	 If any UBS Holder holds the Reference Obligation as a hedge for such Terminated Obligation, subject to sub-clauses (i), (ii) and (iii) below, Counterparty may identify an Approved Dealer that has submitted a Firm Bid to acquire the Reference Obligation from UBS or any such Affiliate, in each case by giving
notice of such Firm Bid to UBS. Such notice must be given no later than 10 a.m. (New York time) on the applicable Termination Trade Date. So long as (i) any sale by UBS or such Affiliate of the Reference Obligation or applicable portion thereof
to such Approved Dealer (as applicable) is (A) not prohibited under applicable law or regulation and (B) substantially in accordance with the then-current market practice in the principal market for, and transfer restrictions with respect
to, the Reference Obligation (as determined by the Calculation Agent) and at prevailing market price, (ii) all payment and collateral delivery obligations of Counterparty have otherwise been satisfied when due under this Confirmation and the
Master Agreement and (iii) no Event of Default or Additional Termination Event has occurred or is continuing with respect to Counterparty, in each case on the date Counterparty delivers such notice, (x) if a retransfer is necessary in
order for UBS to be able to unwind its hedge position (or 



  
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the applicable portion thereof) and accept such Firm Bid, UBS or such Affiliate shall take, on or promptly following the Termination Trade Date all actions within its reasonable control necessary
to cause such retransfer of the Reference Obligation to UBS or such Affiliate, (y) subject (only where such retransfer is necessary for UBS to unwind its hedge position (or the applicable portion thereof) and accept such Firm Bid) to such
retransfer of the Reference Obligation having occurred in accordance with UBS’ instructions, UBS or such Affiliate shall accept such Firm Bid and transfer the Reference Obligation or portion thereof to such Approved Dealer and (z) the net
cash proceeds received by UBS or such Affiliate from the sale of the Reference Obligation or portion thereof (exclusive of accrued interest and capitalized interest), net of the related Costs of Assignment, shall be the “Final Price” for
the relevant Reference Obligation or portion thereof. In the event that such transfer of the Reference Obligation or portion thereof to such Approved Dealer does not occur (I) as a result of a breach by UBS of its obligations under this Clause
4(a), the Final Price for the Terminated Obligation shall be determined based on the Firm Bid provided by such Approved Dealer or (II) other than as a result of a breach by UBS of its obligations under this Clause 4(a), the Final Price for the
Terminated Obligation shall be determined pursuant to Clause 4(b) below. 

  

	(b)	Subject to Clause 4(c) below, if the Final Price for the Terminated Obligation is not determined in accordance with clause (a) above, then the Calculation Agent shall attempt to obtain Firm Bids for the Terminated
Obligation with respect to the applicable Termination Trade Date from three or more Dealers. The Calculation Agent will give Counterparty notice of its intention to obtain Firm Bids pursuant to this Clause 4 (such notice to be given telephonically
and via electronic mail) not later than 5:00 p.m. New York time on the date three Business Days prior to the bid submission deadline as shall be specified by the Calculation Agent in each of its requests for Firm Bids for the Terminated
Obligation with respect to the applicable Termination Trade Date. By notice to UBS not later than such bid submission deadline, Counterparty may, but shall not be obligated to, designate any Dealer to provide a Firm Bid (and the Calculation Agent
will seek a Firm Bid from such Dealer if so designated by Counterparty on a timely basis). 

 In seeking to obtain a Firm Bid
from any Dealer, the Calculation Agent will deliver to such Dealer the following information: (1) a copy of the Reference Obligation Indenture (and each Transaction Document referred to (and as defined) therein); and (2) a copy of each
Monthly Report delivered under (and as defined in) the Reference Obligation Indenture within the last 12 months. Such Dealers must provide the Calculation Agent with a Firm Bid within one Business Day of the Calculation Agent’s request for such
Firm Bid in order for the Calculation Agent to consider such Firm Bid in its determinations of the Final Price under this Clause 4(b). In seeking to obtain a Firm Bid from any Dealer, the Calculation Agent will, to the extent practicable, afford
such Dealer with an opportunity, to the extent requested by such Dealer, to ask questions of, and receive information from, the persons or entities responsible for the management of the Reference Entity. 

UBS may, but is not obligated to, sell or cause the sale of any portion of a Terminated Obligation to any Dealer that provides a Firm Bid for
purposes of this Clause 4(b). 
 If the Calculation Agent is able to obtain at least one Firm Bid or combination of Firm Bids for all of the
portion of the principal amount (which shall include, with respect to the Reference Obligation, the Outstanding Class A-R Funded Amount and the Remaining Unfunded Facility Commitment) allocable to a
Terminated Obligation, the Final Price for such Terminated Obligation shall be determined based on the highest Firm Bid or highest weighted average of any combination of Firm Bids received by the Calculation Agent within one Business Day of its
request therefor. If no Firm Bids are obtained as provided above in this Clause 4 for all or a 

  
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portion of a Terminated Obligation, the Final Price shall be deemed to be zero with respect to each portion of such Terminated Obligation for which no Firm Bid was obtained. The Calculation Agent
will conduct the bid process in accordance with the procedures set forth in this Clause 4 and otherwise in a commercially reasonable manner. 

Notwithstanding anything to the contrary herein, 
  

	 	(i)	the Calculation Agent shall be entitled to disregard any Firm Bid submitted by a Dealer if, in the Calculation Agent’s commercially reasonable judgment, (x) such Dealer is ineligible to accept assignment or
transfer of the relevant Terminated Obligation or portion thereof, as applicable, substantially in accordance with the then-current market practice in the principal market for such Terminated Obligation, as determined by the Calculation Agent, or
(y) such Dealer would not, through the exercise of its commercially reasonable efforts, be able to obtain any consent required under any agreement or instrument governing or otherwise relating to such Terminated Obligation to the assignment or
transfer of such Terminated Obligation or portion thereof, as applicable, to it; and 

  

	 	(ii)	if the Calculation Agent determines that the highest Firm Bid obtained in connection with the applicable Termination Trade Date is not bona fide due to (x) the bankruptcy or insolvency of the bidder or
(y) the inability, failure or refusal (or reasonably expected inability, failure or refusal) of the bidder to settle the purchase of such Terminated Obligation or portion thereof, as applicable, or otherwise settle transactions in the relevant
market or perform its obligations generally, that Firm Bid shall be disregarded. 

 If the highest Firm Bid for any portion of
such Terminated Obligation is disregarded pursuant to this paragraph, then (i) if there is at least one other available Firm Bid for such portion, the “Final Price” shall be determined based on the next highest Firm Bid
and (ii) if there are no other available Firm Bids for such portion, the Calculation Agent shall have no obligation to obtain further bids, and the applicable “Final Price” for the portion which was so disregarded shall
be deemed to be zero. 
 If UBS transfers, or causes the transfer of, a Terminated Obligation to the Dealer or Dealers providing the highest
Firm Bid or highest weighted average of any combination of Firm Bids, the net cash proceeds received from the sale of such Terminated Obligation (which sale shall be scheduled to settle no later than the Relevant Settlement Date), exclusive of
accrued interest and capitalized interest and net of any Costs of Assignment, shall be the “Final Price” for such Terminated Obligation (or the portion thereof that is sold). 

If UBS determines, in its sole discretion, not to sell or cause the sale of any portion of such Terminated Obligation to the entity or entities
providing the highest Firm Bid or highest weighted average of any combination of Firm Bids, the “Final Price” for such unsold portion shall be determined based on the highest Firm Bid or highest weighted average of any
combination of Firm Bids, as the case may be. 
 The Calculation Agent may perform any of its duties under this Clause 4(b) through any
Affiliate designated by it, but no such designation shall relieve the Calculation Agent of its duties under this Clause 4(b). 
  

	(c)	 Notwithstanding Clauses 4(a) and 4(b) above, if any UBS Holder holds a Reference Obligation as a hedge for such
Terminated Obligation and the Final Price thereof is being calculated in 



  
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connection with the occurrence or designation of an Early Termination Date that has occurred other than as a result of an Additional Termination Event set forth in Clause 3(c)(i), Clause 3(c)(ii)
or Clause 3(c)(iii) above and with respect to which Party B is the Defaulting Party or the sole Affected Party: 

  

	 	(i)	the Calculation Agent shall not be required to obtain any Firm Bids in connection with the determination of the Final Price thereof and the date on which the Final Price thereof is determined shall be delayed until the
earlier of: 

  

	 	(A)	the first Business Day following the date on which all Portfolio Assets have been sold or otherwise liquidated pursuant to and in accordance with the Reference Obligation Indenture; and 


 

	 	(B)	the 40th calendar day following such Early Termination Date 

 (such date, the “Close-out Final Price Determination Date” and the period from and including the Early Termination Date to and including the Close-out Final Price Determination Date,
the “Close-out Final Price Determination Extension Period”); 
  

	 	(ii)	the “Final Price” of the Terminated Obligation shall be equal to the product of (x) the sum of (A) all Principal Collections received by the Reference Entity during the
Close-out Final Price Determination Extension Period, (B) all Principal Collections expected to be received by the Reference Entity as a result of binding commitments entered into by the Reference Entity
at any time during the Close-out Final Price Determination Extension Period to sell or otherwise dispose of any Portfolio Assets, (C) all Interest Collections received by the Reference Entity during the Close-out Final Price Determination Extension Period, and (D) all amounts standing to the credit of the Principal Collection Subaccount, the Interest Collection Subaccount and the Payment Account (if any) as of
the day immediately prior to the commencement of the Close-out Final Price Determination Extension Period that have not been paid to Counterparty by UBS as UBS Fixed Amounts, multiplied by (y) (A) the
Outstanding Class A-R Funded Amount as of the Early Termination Date divided by (B) the sum of the Outstanding Class A-R Funded Amount and the Aggregate
Outstanding Amount of the Class A Notes, each as of the Early Termination Date; 

  

	 	(iii)	the portion of the Terminated Obligation represented by Portfolio Assets that have not been sold or otherwise disposed of by the Reference Entity or become the subject of a binding sale or disposition commitment of the
Reference Entity during the Close-out Final Price Determination Extension Period shall accordingly be deemed to have a value of zero for purposes of the determination of the Final Price thereof; and


  

	 	(iv)	the Total Return Payment Date and Termination Settlement Date shall be deemed to be the first Business Day after the Close-out Final Price Determination Date. 


 

	(d)	 In the event that (i) either (x) the Final Price for all or any part of a Terminated Obligation is deemed to
be zero pursuant to the foregoing or (y) any of the related Portfolio Assets are effectively deemed to have a zero value for purposes of the determination of the Final Price of the related Terminated Obligation pursuant to Clause 4(c)(iii)
above and (ii) any UBS Holder holds 



  
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the Reference Obligation as a hedge for such Terminated Obligation, UBS and Counterparty will make commercially reasonable efforts to accomplish the assignment or other transfer to Counterparty
free of payment by Counterparty other than Costs of Assignment incurred by UBS or any of its Affiliates in effecting the transfer; provided that (A) all other payment and collateral delivery obligations of Counterparty (including,
without limitation, those obligations arising as a result of the occurrence or designation of an Early Termination Date) are otherwise fulfilled under the Master Agreement at the time of such transfer of the relevant Terminated Obligation (or the
relevant portion thereof) for which the Final Price is deemed to be zero or a portion of the related Portfolio Assets have been deemed to have a zero value for purposes of the determination of the Final Price thereof; (B) UBS shall not be
liable for any losses related to any delay in or failure of such assignment beyond its control, and Counterparty shall reimburse UBS for all Costs of Assignment incurred by UBS in effecting the transfer promptly following UBS’ demand therefor;
and (C) each such UBS Holder has received its pro rata share of all the amounts identified in Clause 4(c)(ii) above that have been received by the Reference Entity and distributed to the holders of such Terminated Obligation in accordance with
the Reference Obligation Indenture. 

  

	(e)	The parties acknowledge that (i) the Reference Obligation is expected to be illiquid and unique and there may be no other commercially reasonable determinant of value with respect to such Reference Obligation other
than the price at which willing buyers agree to purchase such Reference Obligation or the relevant Portfolio Assets, (ii) if (x) a UBS Holder is holding the Reference Obligation as a hedge and such UBS Holder were forced to liquidate such
Reference Obligation or the relevant Portfolio Assets or (y) the Calculation Agent were forced to determine the Final Price of such Reference Obligation, in each case on the date on which an Early Termination Date occurs or is designated (or
shortly thereafter), such liquidation or determination would likely result in a commercially unreasonable price for the applicable Reference Obligation, and (iii) giving a UBS Holder or the Calculation Agent an extended period of time to sell
or otherwise liquidate such Reference Obligation (or the relevant Portfolio Assets) or determine the Final Price of such Reference Obligation is accordingly more likely to produce a commercially reasonable result. 


 

	5.	[RESERVED] 

  

	6.	ADJUSTMENTS. 

 If the Reference Obligation or any portion thereof is irreversibly
converted or exchanged into or for any securities, obligations or other assets or property (“Exchange Consideration”), or any payment on the Reference Obligation is paid in the form of any Exchange Consideration that is not
cash, thereafter such Exchange Consideration will constitute the Reference Obligation or portion thereof and the Calculation Agent shall, after consultation with the parties, adjust the terms of the Transaction as the Calculation Agent determines
appropriate to preserve the theoretical value of the Transaction to the parties immediately prior to such exchange or, if such exchange results in a change in value, the proportionate post-exchange value, and determine the effective date of such
adjustments. 
  

	7.	REPRESENTATIONS, WARRANTIES AND AGREEMENTS. 

  

	(a)	Each party hereby agrees as follows, so long as either party has or may have any obligation under the Transaction. 

  

	 	(i)	 Non-Reliance. It is acting for its own account, and it has made
its own independent decisions to enter into the Transaction and as to whether the Transaction is appropriate or 



  
 -13- 









	 	
proper for it based upon its own judgment and upon advice from such advisors as it has deemed necessary. It is not relying on any communication (written or oral) of the other party as investment
advice or as a recommendation to enter into the Transaction; it being understood that information and explanations related to the terms and conditions of the Transaction shall not be considered investment advice or a recommendation to enter into the
Transaction. It has not received from the other party any assurance or guarantee as to the expected results of the Transaction; 

  

	 	(ii)	Evaluation and Understanding. It is capable of evaluating and understanding (on its own behalf or through independent professional advice), and understands and accepts, the terms, conditions and risks of the
Transaction. It is also capable of assuming, and assumes, the financial and other risks of the Transaction; 

  

	 	(iii)	Status of Parties. The other party is not acting as a fiduciary or an advisor for it in respect of the Transaction; 

  

	 	(iv)	Reliance on its Own Advisors. Without limiting the generality of the foregoing, in making its decision to enter into, and thereafter to maintain, administer or terminate, the Transaction, it will not rely on any
communication from the other party as, and it has not received any representation or other communication from the other party constituting, legal, accounting, business or tax advice, and it will consult its own legal, accounting, business and tax
advisors concerning the consequences of the Transaction; and 

  

	 	(v)	U.S. Tax Treatment. In connection with the Transaction, it will, for U.S. Federal income tax purposes (and to the extent permitted by law, state and local income tax purposes): (w) treat the Counterparty as
having retained beneficial ownership of all of the economic benefits and burdens of ownership of the Reference Obligation, the Pledged Notes and each Portfolio Asset at all times during the pendency of the Transaction (except after a default by
either party) and all payments made in respect of the Reference Obligation and the Pledged Notes as having been made directly to the Counterparty; (x) treat the Transaction (including the Credit Support Annex to the Transaction), taken together
with the issuance of the Reference Obligation to the UBS Holder, as a single commitment of USD 50,000,000 from UBS to the Counterparty for a loan of an amount up to USD 50,000,000 secured by the Reference Obligation and the Pledged Notes,
maturing on the Scheduled Termination Date and which is not a contingent debt instrument described in Treas. Regs. Section 1.1275-4; (y) treat the Counterparty First Floating Amounts as interest paid on
an obligation issued in registered form to a U.S. person (within the meaning of Section 7701(a)(30) of the Code) in respect of the loan described in clause (x); and (z) not treat the issuance of the Reference Obligation to the UBS Holder
as creating a partnership or otherwise as an equity interest in the Reference Entity. The parties agree to file all tax forms, returns and withholding certificates (including, without limiting the foregoing, U.S. Internal Revenue Service Form 1099
and any withholding certificates required to be provided pursuant to the Schedule to the Master Agreement) consistent with this treatment, and the Counterparty agrees to provide copies of all withholding tax certificates relating to the Reference
Obligation and the Portfolio Assets reasonably requested by the trustee under the Reference Obligation Indenture. 

 References in this Clause
7(a) to “the other party” shall, in the case of UBS and where the context so allows, include references to any Affiliate of UBS. 

  
 -14- 









	(b)	Each party acknowledges and agrees that, so long as either party has or may have any obligation under the Transaction: 

  

	 	(i)	the Transaction does not create any direct or indirect obligation of the Reference Entity or any Portfolio Asset Obligor or any direct or indirect participation in the Reference Obligation, any Portfolio Asset or any
other obligation of the Reference Entity or any Portfolio Asset Obligor; 

  

	 	(ii)	each party and its Affiliates may deal in the Reference Obligation and any Portfolio Asset and may accept deposits from, make loans or otherwise extend credit to, and generally engage in any kind of commercial or
investment banking or other business with the Reference Entity, any Portfolio Asset Obligor or any Affiliate of the Reference Entity or any Portfolio Asset Obligor, any other person or entity having obligations relating to the Reference Entity or
any Portfolio Asset Obligor and may act with respect to such business in the same manner as if the Transaction did not exist and may originate, purchase, sell, hold or trade, and may exercise consensual or remedial rights in respect of, obligations,
securities or other financial instruments of, issued by or linked to the Reference Entity or any Portfolio Asset Obligor, regardless of whether any such action might have an adverse effect on the Reference Entity or any Portfolio Asset Obligor, the
value of the Reference Obligation or any Portfolio Asset or the position of the other party to the Transaction or otherwise; 

  

	 	(iii)	with respect to information regarding the Reference Entity, any Portfolio Asset Obligor or any Affiliate of the Reference Entity or any Portfolio Asset Obligor that is or may be material in the context of the
Transaction: 

  

	 	(A)	each party and its Affiliates and the Calculation Agent may, whether by virtue of the types of relationships described herein or otherwise, at the date hereof or at any time hereafter, be in possession of information
regarding the Reference Entity, any Portfolio Asset Obligor or any Affiliate of the Reference Entity or any Portfolio Asset Obligor that is or may be material in the context of the Transaction and that may or may not be publicly available or known
to the other party. In addition, this Confirmation does not create any obligation on the part of such party and its Affiliates to disclose to the other party any such relationship or information (whether or not confidential); 


 

	 	(B)	 Counterparty understands that UBS and its Affiliates are engaged in a wide range of financial services and
businesses, including investment management, financing, securities trading, corporate and investment banking and research (such services and businesses are collectively referred to in this Clause 7(b)(iii) as “Activities”)
and may engage in the Activities with or on behalf of one or more of the Reference Entity, the Portfolio Asset Obligors and their respective Affiliates. Furthermore, UBS or its Affiliates may, in undertaking the Activities, engage in trading in
financial products or undertake other investment businesses for its own account or on behalf of others (including one or more of the Reference Entity, the Portfolio Asset Obligors and their respective Affiliates and including holding, for its own
account or on behalf of others, equity, debt and similar positions in one or more of the Reference Entity, the Portfolio Asset Obligors and their respective Affiliates), including trading in or holding long, short or derivative positions in
securities, loans or other financial products of one or more of the Reference Entity, the Portfolio Asset Obligors and their respective 



  
 -15- 









	 	
Affiliates. Counterparty understands and agrees that in engaging in the Activities, (x) UBS or its Affiliates may now or in the future have interests or take actions that may conflict with
the interests of Counterparty and (y) officers and employees of UBS or its Affiliates (including those responsible for negotiating the Transaction) may currently have and later may receive or otherwise obtain information concerning one or more
of the Reference Entity, the Portfolio Asset Obligors and their respective Affiliates (including information concerning mergers, acquisitions, divestitures, restructurings, defaults under material agreements, creditors’ rights proceedings or
other matters that may affect the value of the Reference Obligation or any Portfolio Asset or the ability of the Reference Entity or any Portfolio Asset Obligor to perform its obligations thereunder), which information may not be available to
Counterparty and may be material to a decision to enter into the Transaction (the “Excluded Information”). Counterparty acknowledges that it has determined to enter into the Transaction notwithstanding its lack of knowledge
of the Excluded Information. Counterparty agrees that neither UBS nor any of its Affiliates shall have any liability to Counterparty, and Counterparty waives and releases any claims that it might have against UBS or its Affiliates, whether under
applicable securities laws or otherwise, with respect to the nondisclosure of the Excluded Information in connection with this Confirmation or the Transaction; provided that, the Excluded Information shall not and does not affect the truth or
accuracy of UBS’s representations or warranties in the Master Agreement or this Confirmation; 

  

	 	(C)	Counterparty confirms that it (i) is a sophisticated entity with respect to the obligations of the type of the Reference Obligation and the Portfolio Assets, (ii) has adequate information concerning the
business and financial condition of the Reference Entity and each Portfolio Asset Obligor to make an informed decision regarding its entry into this Confirmation and the Transaction, (iii) possesses (individually or through its Affiliates) such
knowledge and experience in financial and business matters that it is capable, without reliance on UBS or its Affiliates, of evaluating the merits and risks (including tax, legal, regulatory, credit, accounting and other financial matters) of
entering into this Confirmation and the Transaction and is financially able to bear such risks, (iv) has such knowledge and experience, and has entered into other transactions of a similar economic nature, so as to be aware of the risks and
uncertainties inherent in the assumption of rights and obligations of the type contemplated in this Confirmation and the Transaction, and (v) has determined that entering into this Confirmation and the Transaction hereunder is suitable and
appropriate for it; 

  

	 	(D)	 Counterparty acknowledges that (i) it is solely responsible for making its own independent appraisal and
investigation of all risks arising under or in connection with this Confirmation and the Transaction, (ii) that it has, independently and without reliance upon UBS or its Affiliates, made its own appraisal and investigation of all risks
associated with, and its own credit analysis and decision to enter into, this Confirmation and the Transaction based on such documents and information, as it has deemed appropriate and (iii) it will, independently and without reliance upon UBS
or its Affiliates, continue to be solely responsible for making its own appraisal and investigation of all risks arising under or in connection with, and its own credit analysis and decision to take or not take




  
 -16- 









	 	
action under, this Confirmation and the Transaction, based on such documents and information as it shall from time to time deem appropriate which may include, in each case, any or all of the
following (it being understood that neither UBS nor any of its Affiliates is responsible for or has made any representation or warranty with respect to any such matters or information): (x) the financial condition, status and capitalization of
the Reference Entity or any Portfolio Asset Obligor; (y) the legality, validity, effectiveness, adequacy or enforceability of any agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with
the Reference Obligation or any Portfolio Asset; or (z) the adequacy, accuracy and/or completeness of (A) any document in the form approved by the Reference Entity or any Portfolio Asset Obligor concerning the Reference Entity or such
Portfolio Asset Obligor (or any of their respective subsidiaries) which, at the request of the Reference Entity or such Portfolio Asset Obligor and on its behalf, was prepared in relation to the syndication of the Reference Obligation or any
Portfolio Asset or other obligations of the Reference Entity or any Portfolio Asset Obligor and which may or may not have been distributed by the arranger(s) of such obligations to selected financial institutions (an “Information
Memorandum”) and (B) any other information concerning the Reference Entity or any Portfolio Asset Obligor delivered by UBS or its Affiliates under or in connection with this Confirmation, the Transaction or any other agreement,
arrangement or document entered into, made or executed in anticipation of, under or in connection with the Reference Obligation or any Portfolio Asset; and 

  

	 	(E)	Counterparty agrees that none of (i) the Master Agreement, (ii) the receipt by UBS or its Affiliates of any information (including Excluded Information) concerning one or more of the Reference Entity, the
Portfolio Asset Obligors and their respective Affiliates (including information concerning the value of the Reference Obligation or any Portfolio Asset or the ability of the Reference Entity or any Portfolio Asset Obligor to perform their respective
obligations thereunder) nor (iii) any other matter, shall give rise to any fiduciary or other similar duties (including without limitation any duty of trust or confidence) owing by UBS or its Affiliates to Counterparty including any such duty
that would prevent or restrict UBS or its Affiliates from acting on behalf of customers (including the Reference Entity, the Portfolio Asset Obligors and their respective Affiliates) or for its own account; 


 

	(iv)	neither UBS nor any of its Affiliates shall be under any obligation to hedge the Transaction or to own or hold the Reference Obligation or any Portfolio Asset as a result of the Transaction, and UBS and its Affiliates
may establish, maintain, modify, terminate or re-establish any hedge position or any methodology for hedging at any time without regard to Counterparty. Any such purchases, sales or other transactions will be
at the sole discretion of UBS and its Affiliates, and Counterparty acknowledges that such transactions may affect the market price of the Reference Obligation and/or the Portfolio Assets. Counterparty acknowledges and agrees that it is not relying
on any representation, warranty or statement by UBS or any of its Affiliates as to whether, at what times, in what manner or by what method UBS or any of its Affiliates may engage in any hedging activities; 


 

	(v)	 notwithstanding any other provision in this Confirmation or any other document, UBS and Counterparty (and each
employee, representative, or other agent of UBS or Counterparty) may each disclose to any and all persons, without limitation of any kind, the U.S. tax treatment and 



  
 -17- 









	 	
U.S. tax structure of the transaction and all materials of any kind (including opinions or other tax analyses) that are provided to them relating to such U.S. tax treatment and U.S. tax structure
(as those terms are used in Treasury Regulations under Sections 6011, 6111 and 6112 of the Code), other than any information for which nondisclosure is reasonably necessary in order to comply with applicable securities laws. To the extent not
inconsistent with the previous sentence, UBS and Counterparty will each keep confidential (except as required by law) all information unless the other party has consented in writing to the disclosure of such information. In the event of a disclosure
with respect to the U.S. tax treatment and U.S. tax structure of this Transaction, the person making the disclosure may disclose all information relevant to an understanding of the U.S. tax treatment and U.S. tax structure of this Transaction, but
such person may not disclose the identity of the Counterparty, any Reference Entity or any Portfolio Asset; and 

  

	(vi)	if UBS chooses to hold (either directly or indirectly) the Reference Obligation as a result of the Transaction, UBS may deal with the Reference Obligation as if the Transaction did not exist (and, without limiting the
generality of the foregoing, UBS shall have no duty to Counterparty with respect to any such direct or indirect ownership of the Reference Obligation). 

  

	(c)	Each of the parties hereby represents that, on the date on which the Transaction is entered into hereunder: 

  

	 	(i)	it is entering into the Transaction for investment, financial intermediation, hedging or other commercial purposes; 

  

	 	(ii)	(x) it is an “eligible contract participant” as defined in the U.S. Commodity Exchange Act, as amended (the “CEA”), (y) the Master Agreement and each Transaction are subject to
individual negotiation by each party, and (z) neither the Master Agreement nor the Transaction will be executed or traded on a “trading facility” within the meaning of Section 1a(33) of the CEA; and 


 

	 	(iii)	(A) the Master Agreement (including the Credit Support Annex) and each Transaction entered into under this Confirmation is a “swap agreement” within the meaning given to such term under Section 101(53B)
of the United States Bankruptcy Code of 1978, as amended (the “Bankruptcy Code”) and (B) it is a “swap participant” within the meaning given to such term under Section 101(53C) of the Bankruptcy Code.


  

	 	(d)	Counterparty hereby represents to UBS that: 

  

	 	(i)	its investments in and liabilities in respect of the Transaction, which it understands is not readily marketable, is not disproportionate to its net worth, and it is able to bear any loss in connection with the
Transaction, including the loss of its entire investment in the Transaction; 

  

	 	(ii)	it understands no obligations of UBS to it hereunder will be entitled to the benefit of deposit insurance and that such obligations will not be guaranteed by any Affiliate of UBS or any governmental agency;


  

	 	(iii)	it has elected to treat the Reference Entity as an entity disregarded from its owner for United States Federal income tax purposes; 

  


	 	(iv)	 it can receive all payments on each Portfolio Asset included in the Portfolio without U.S. Federal withholding
tax and the relevant Reference Entity or any subsidiary thereof 



  
 -18- 









	 	
holding a Portfolio Asset, as applicable, can (except to the extent otherwise disclosed with respect to the Portfolio Asset prior to the related Trade Date (as defined in the Reference Obligation
Indenture)) receive all such payments without foreign withholding tax (which representation, subject to any such exception, shall also be made for purposes of Section 3(f) of the Master Agreement); 


 

	 	(v)	it has delivered an applicable United States Internal Revenue Service form W-9 (or successor form) with respect to withholding tax required to be delivered by it pursuant to Part
3 of the Schedule to the Master Agreement (and this representation will also be deemed made pursuant to Section 3(f) of the Master Agreement); 

  

	 	(vi)	it is not, for U.S. Federal income tax purposes, a tax exempt organization for purposes of Section 514 of the U.S. Internal Revenue Code of 1986, as amended, and, unless any such organization that invests in
Counterparty does so only indirectly through an entity that is not transparent for U.S. Federal income tax purposes, there is disclosure to such organization that such organizations may recognize unrelated business taxable income; 


 

	 	(vii)	it has obtained tax advice from its auditors or external legal counsel, in either case of recognized standing in relation to U.S. Federal income tax matters, that considered the U.S. tax treatment of the Transaction to
which this Confirmation relates; and 

  

	 	(viii)	it has obtained its own advice as to the proper tax characterization of the transaction in all jurisdictions, including for the avoidance of doubt the United States, and is not relying on UBS or its advisors in respect
of such matters in any respect. 

  

	(e)	UBS hereby represents to Counterparty that 

  

	 	(i)	UBS will provide to the Counterparty and the Reference Entity a valid Form W-9 provided by UBS Securities LLC and attached to a valid Form
W-8IMY (or successor thereto), that the Counterparty and the Reference Entity may reliably associate all payments to be made by either of them pursuant to the Transaction with such forms, and therefore may
treat all such payments under the Transaction as made to a U.S. person within the meaning of Treas. Regs. Section 1.1441-1(d)(4); 


 

	 	(ii)	the Transaction to which this Confirmation relates is entered into by UBS through an office located within the United States, or U.S. personnel of UBS materially participated in this Transaction for U.S. Federal income
tax purposes and UBS is acting solely as an agent of UBS Securities LLC, a person that is a “U.S. person” as that term is defined under IRC Section 7701(a)(30); 


 

	 	(iii)	except to the extent necessary to enable UBS to exercise any of its rights under Paragraph 6(c) of the Credit Support Annex, that UBS is under no legal or contractual obligation to treat the Reference Obligation issued
to it, any Pledged Notes pledged under the Credit Support Annex or any Portfolio Asset as legally or beneficially owned by any person other than the Counterparty; and 


 

	 	(iv)	that UBS has obtained its own advice as to the proper tax characterization of the transaction in all jurisdictions, including for the avoidance of doubt the United States, and is not relying on the Counterparty or its
advisors in respect of such matters in any respect. 


  
 -19- 









	(f)	Except for disclosure authorized pursuant to Clause 7(b)(v), Counterparty agrees to be bound by the confidentiality provisions of the Reference Obligation Indenture (and of each credit or loan agreement governing each
Portfolio Asset) with respect to all information and documentation in relation to the Reference Entity or any Portfolio Asset Obligor or the Reference Obligation or any Portfolio Asset delivered to Counterparty hereunder. Counterparty acknowledges
that such information may include material non-public information concerning one or more of the Reference Entity, the Portfolio Asset Obligors and their respective securities and agrees to use such information
in accordance with applicable law, including Federal and State securities laws. In addition, Counterparty agrees to keep confidential any internal rating supplied by UBS to Counterparty with respect to any Portfolio Asset. 


 

	(g)	Notwithstanding anything in the Master Agreement to the contrary, UBS will not be required to pay any additional amount under Section 2(d)(i) of the Master Agreement in respect of any deduction or withholding for
or on account of any Tax in relation to any payment under the Transaction. If UBS is required by any applicable law, as modified by the practice of any relevant governmental revenue authority, to make any deduction or withholding for or on account
of any Tax in relation to any payment under the Transaction and UBS does not so deduct or withhold, then Section 2(d)(ii) of the Master Agreement shall be applicable. 


 

	(h)	If an “Event of Default” under (and as defined in) the Reference Obligation Indenture occurs, then UBS may give notice to Counterparty (so long as such event is continuing on the date of such notice) that UBS,
in its capacity as Indenture Valuation Agent, has elected to exercise exclusively on behalf of the Reference Entity and each subsidiary thereof all rights of the Reference Entity to purchase and dispose of, and to exercise all voting and other
consensual rights with respect to, and to make all other determinations and decisions with respect to the ownership of, the Portfolio Assets held or to be acquired by the Reference Entity, pursuant to Section 12.1(c) of the Reference Obligation
Indenture. 

  

	(i)	Counterparty hereby agrees that it shall procure that Lincoln International or such other person or entity agreed by Counterparty and UBS (such person or entity, together with Lincoln International, each, an
“Independent Valuator”) shall from time to time prepare valuations in respect of each Portfolio Asset (each such valuation, an “Asset Valuation Report”) and provide copies thereof to UBS: 


 

	 	(i)	with respect to each Portfolio Asset acquired by the Reference Entity, on or before the date of acquisition (on a trade date basis) of such Portfolio Asset; and 


 

	 	(ii)	within 10 calendar days after the last day of each Asset Valuation Report Period, with respect to each Portfolio Asset held by the Reference Entity as of the last day of such Asset Valuation Report Period.


 For purposes of the foregoing, “Asset Valuation Report Period” means each calendar quarter ending on
March 31, June 30, September 30 and December 31 of each calendar year. 
 If, on any date of determination by the
Calculation Agent, Counterparty has failed to procure an Asset Valuation Report in respect of one or more Portfolio Assets in accordance with the requirements of clause (i) or (ii) above, each such Portfolio Asset shall be deemed to be a Zero
Value Portfolio Asset until such time as such Portfolio Asset is included in a subsequent Asset Valuation Report or an equivalent report from an Independent Valuator or the Back-Up Valuation Company delivered
at any time after such date of determination. 

  
 -20- 








 No Asset Valuation Report shall be required to be delivered pursuant to this Clause 7(i) with
respect to a Portfolio Asset if UBS waives such requirement by writing. 
  

	(j)	Counterparty shall, immediately upon receipt from the Reference Entity of the notice under Section 12.1(a)(iii) of the Reference Obligation Indenture, deliver a copy of such notice to UBS. 


 

	8.	ADJUSTMENTS RELATING TO CERTAIN UNPAID OR RESCINDED PAYMENTS. 


 

	(a)	If (i) UBS makes any payment to Counterparty as provided under Clause 2 and the corresponding Interest and Fee Amount is not paid (in whole or in part) when due or (ii) any Interest and Fee Amount in respect
of the Reference Obligation is required to be returned (in whole or in part) by a holder of the Reference Obligation (including, without limitation, the UBS Holder) to the applicable Reference Entity or paid to any other person or entity or is
otherwise rescinded pursuant to any bankruptcy or insolvency law or any other applicable law, then (i) each payment obligation under the Transaction related to such payment shall be recomputed by the Calculation Agent as if such unpaid or
returned amount had not been paid and (ii) Counterparty will pay to UBS, within five Business Days following receipt of notice from UBS, such amount (or portion thereof) so not paid or so required to be returned, paid or otherwise rescinded. If
such returned, paid or otherwise rescinded amount is subsequently paid, UBS shall pay such amount (subject to Clause 8(c)) to Counterparty within five Business Days after the date of such subsequent payment. 


 

	(b)	[reserved] 

  

	(c)	Amounts payable pursuant to this Clause 8 shall be subject to adjustment by the Calculation Agent in good faith and on a commercially reasonable basis, as agreed by UBS and Counterparty, in order to preserve for the
parties the intended economic risks and benefits of the relevant Transaction; provided that (i) no amounts in respect of interest shall be payable by either party on any adjusted amount and (ii) the Calculation Agent in performing the
calculations pursuant to this Clause 8 will assume that no interest has accrued on any adjusted amount. 

  

	(d)	The payment obligations of UBS and Counterparty pursuant to this Clause 8 shall survive the termination of the Transaction. 

  

	9.	CREDIT SUPPORT. 

 Notwithstanding anything in the Credit Support
Annex (the “Credit Support Annex”) to the Schedule to the Master Agreement to the contrary, the following collateral terms shall apply to the Transaction to which this Confirmation relates. Capitalized terms used in
this Clause 9 but not otherwise defined in this Confirmation have the respective meanings given to such terms in the Credit Support Annex. In the event of any conflict between the Credit Support Annex and these “Collateral
Provisions”, these “Collateral Provisions” shall prevail. 
  

	(a)	A single “Independent Amount” shall be applicable to Counterparty for this Transaction in an amount equal to, on any Valuation Date, (i) the product of (A) the Outstanding Class A-R Funded Amount on such Valuation Date, multiplied by (B) the greater of (1) the Class A-R Market Price on such date and (2) the Rebalancing
Threshold, minus (ii) the Notional Amount on such Valuation Date. 

  

	(b)	 On the Trade Date, Counterparty will deliver to UBS a Reference Obligation in an amount equal to (i) the TRS
Advance Percentage of the Outstanding Class A-R Funded Amount of the 



  
 -21- 









	 	
Reference Obligation on such date, and (ii) the TRS Advance Percentage of the aggregate Class A-R Commitment Amount of all Class A-R Noteholders. The Reference Obligation delivered to UBS on the Trade Date, as adjusted from time to the extent any additional amount of the Reference Obligation is delivered or returned (as applicable)
pursuant to Clause 13 hereof, shall be the “Pledged Notes”. The delivery of the Pledged Notes on the Trade Date shall constitute a Transfer by the Counterparty (as Pledgor) to UBS (as Secured Party) and shall constitute Eligible
Collateral. UBS may register the Pledged Notes in the name of UBS as the holder thereof. On each Valuation Date on which the Class A-R Market Price is above or equal to the Rebalancing Threshold, only
Pledged Notes shall constitute Eligible Credit Support with respect to the Independent Amount. Notwithstanding any other provision of this Agreement or the Credit Support Annex, UBS shall not be required to return any of the Pledged Notes to the
Counterparty other than (i) as a result of the provisions of Clause 13 hereof, and (ii) after the Termination Date, but only to the extent that Counterparty has satisfied all of its obligations under this Agreement. 


 

	(c)	The Exposure of this Transaction for purposes of the Credit Support Annex on any Valuation Date or other date for which Exposure is calculated shall be the amount determined pursuant to the following formula:


 (A) the Notional Amount less (B) the product of (i) the Class A-R
Market Price, multiplied by (ii) the Reference Obligation Principal Amount (after taking into account any Rebalancing effected pursuant to Clause 13(a) or 13(b) hereof) 

If such amount is positive, such amount is UBS’s Exposure for the Transaction, and if such amount is negative, the absolute value of such
amount is Counterparty’s Exposure for the Transaction. 
  

	(d)	In no event shall Counterparty’s Credit Support Amount as Pledgor be less than the Independent Amount for the Transaction to which this Confirmation relates. If, on any date, the Value of the Pledged Notes is less
than the Independent Amount, Counterparty shall Transfer Eligible Collateral to UBS as a Delivery Amount. 

  

	(e)	UBS shall be the sole Valuation Agent for purposes of the Transaction to which this Confirmation relates and each Business Day shall be a Valuation Date. For purposes of this Transaction the Value of the Pledged Notes
shall be equal to the product of (i) the Class A-R Market Price, multiplied by (ii) the Pledged Notes Principal Amount. 


 

	(f)	Notwithstanding anything in this Confirmation to the contrary, for purposes of determining the portion of the Exposure that is attributable to a Portfolio Asset (or portion thereof) that is being sold or has been
repaid, the Par Amount of such Portfolio Asset shall not be reduced to reflect such sale or repayment until the Business Day next succeeding the settlement date of such sale or the date on which such repayment occurs, as the case may be. In
addition, if the Reference Entity sells any Portfolio Asset and the settlement date for such sale occurs after the date customary for settlement substantially in accordance with the then-current market practice in the principal market for such
Portfolio Asset (as determined by the Calculation Agent), then Unrealized Capital Appreciation and Unrealized Capital Depreciation will continue to vary until the actual settlement date (and, for this purpose, each of Unrealized Capital Appreciation
and Unrealized Capital Depreciation with respect to such Portfolio Asset shall be determined until such date of actual settlement as if no sale price had been established until the date of settlement of the relevant sale). 


  
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	(g)	The provisions of Paragraph 5 of the Credit Support Annex shall be superseded and replaced in their entirety by Counterparty’s dispute rights with respect to the Current Price of any Portfolio Asset as set forth in
the definition of “Current Price”. 

  

	(h)	Any Distributions on the Pledged Notes shall not be Transferred to the Pledgor under Paragraph 6(d)(i) of the Credit Support Annex. Instead, subject to Paragraph 4(a) of the Credit Support Annex, on each UBS Fixed
Amount Payment Date, the Secured Party will Transfer to the Pledgor any Distributions it receives during the related Fixed Amount Payer Calculation Period with respect to a principal amount of Pledged Notes equal to the daily average, during such
Fixed Amount Payer Calculation Period of the Pledged Notes Principal Amount; provided such Transfer shall only be made if a Delivery Amount would not be created or increased by that Transfer, as calculated by the Valuation Agent (and the date of
calculation will be deemed to be a Valuation Date for this purpose). 

  

	10.	NOTICE AND ACCOUNT DETAILS. 

 Notices to
UBS: 
 UBS AG, London Branch 

Structured Funding 
 Attn: Ben
Stewart 
 1285 Avenue of the Americas 

New York, NY 10019-6064 
 Tel:
(203) 719-1611 
 E-mail: OL-Cyrus-TRS@ubs.com 
 With copies to: 

E-mail: DL-IR-STM-TEAM@ubs.com 
 E-mail: SH-OTC-Credit-Setts@ubs.com 

E-mail: OL-CTM@ubs.com 

Notices to Counterparty: 
 CM Finance
Inc. 
 601 Lexington Ave, 26th Floor 

New York, NY 10023 
 Attention:
Rocco DelGuercio, Christopher E. Jansen and Michael C. Mauer 
 Tel: (212) 380-5904 

Email: RDelGuercio@cmipllc.com, CJansen@cmipllc.com, mm@cmipllc.com and 

ops@cyruscapital.com 
 Payments to UBS:

 Favour: UBS AG, Stamford Branch Swift Address: UBSWUS33XXX 

Further Credit To: UBS AG, London Branch 

Swift Address: UBSWGB2LXXX 

Account No:
101-WA-140007-000 

  
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 Payments to Counterparty: 

Bank Name: U.S. Bank N.A. 
 ABA
Number: 091000022 
 Account Name: CM Finance Inc 

Account Number: 104793354606 

FFC: 190093 
 Reference:
[Borrower’s Name]/CM Finance Inc 
  

	11.	OFFICES. 

  

	(a)	The Office of UBS for the Transaction: 

 London 

 

	(b)	The Office of Counterparty for the Transaction: 

 None 

 

	12.	SETTLEMENT 

 The Transaction hereunder is being entered into by a member of
the UBS group (“UBS Party”). For the avoidance of doubt, any payment or delivery obligations of the UBS Party in respect of the Transaction may be effected by any of UBS Limited or UBS AG, London Branch or UBS Securities LLC
(the “Settlement Agent”). UBS Party has authorized the Settlement Agent to act on its behalf in the same manner and with the same force and effect as UBS Party might or could do in connection with any such payment or delivery
obligation. 
  

	13.	REBALANCING 

  

	(a)	 Each Business Day on which the Class A-R Market Price
(i) is above or equal to the Rebalancing Threshold, and (ii) was not below the Rebalancing Threshold on the immediately preceding Business Day, shall be a “Rebalancing Date”. On each Rebalancing Date, (1) the Final
Price shall be equal to (a) the Class A-R Market Price on such date, multiplied by (b) the Reference Obligation Principal Amount on such date (prior to any adjustments made pursuant to this
Clause 13(a)), (2) Capital Depreciation or Capital Appreciation shall be payable, as the case may be, (3) if Capital Appreciation is payable, (a) the Reference Obligation Principal Amount of the related Reference Obligation shall be
decreased (the “Reference Obligation Principal Amount Reduction Amount”) such that the new Reference Obligation Principal Amount shall equal the Notional Amount divided by the Class A-R
Market Price on such day, (b) pursuant to the definition thereof, the Pledged Notes Principal Amount applicable to such Transaction shall be increased by an amount equal to the Reference Obligation Principal Amount Reduction Amount and
(c) pursuant to paragraph 3 of the Credit Support Annex, Counterparty shall Transfer to UBS a principal amount of the Reference Obligation equal to the Reference Obligation Principal Amount Reduction Amount, and (4) if Capital Depreciation
is payable, (a) the Reference Obligation Principal Amount of the Reference Obligation shall be increased (a “Reference Obligation Principal Amount Increase Amount”) such that the new Reference Obligation Principal Amount shall
equal the Notional Amount divided by the Class A-R Market Price on such day, (b) pursuant to the definition thereof, the Pledged Notes Principal Amount applicable to such Transaction shall be
decreased by an amount equal to Reference Obligation Principal 



  
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Amount Increase Amount and (c) pursuant to paragraph 3 of the Credit Support Annex, UBS shall Transfer to the Counterparty a principal amount of the Reference Obligation equal to the
Reference Obligation Principal Amount Increase Amount. 

 (b) 
  

	 	(i)	On any Business Day on which the Class A-R Market Price (i) is below the Rebalancing Threshold and (ii) was not below the Rebalancing Threshold on the immediately
preceding Business Day, such Business Day shall be a “Below Threshold Rebalancing Date”. On each Below Threshold Rebalancing Date, (1) the Final Price shall be deemed to be (a) the Rebalancing Threshold, multiplied
by (b) the Reference Obligation Principal Amount on such date (prior to any adjustments made pursuant to this Clause 13(b)(i)), (2) Capital Depreciation shall be payable, (3) the Reference Obligation Principal Amount of the related
Reference Obligation shall be increased (a “Reference Obligation Principal Amount Increase Amount II”) such that the new Reference Obligation Principal Amount shall equal the Notional Amount divided by the Rebalancing
Threshold on such day, (4) (a) pursuant to the definition thereof, the Pledged Notes Principal Amount applicable to such Transaction shall be decreased by an amount equal to Reference Obligation Principal Amount Increase Amount II and (b) UBS
shall Transfer to the Counterparty a principal amount of the Reference Obligation equal to the Reference Obligation Principal Amount Increase Amount II, (5) UBS shall pay to Counterparty an amount equal to the product of (a) the difference
between the Rebalancing Threshold and the Class A-R Market Price, multiplied by (b) the Reference Obligation Principal Amount Increase Amount II, and (6) Counterparty shall pay to UBS Cash in an
amount equal to (a) (x) the Independent Amount as of such Below Threshold Rebalancing Date, minus (y) the Value of the Pledged Notes as of such Below Threshold Rebalancing Date, calculated after the Transfer made pursuant to Clause
13(b)(i)(4)(b) above, plus (b) the Exposure as of such Below Threshold Rebalancing Date, calculated after the Rebalancing made pursuant to Clause 13(b)(i)(3) above. On each Below Threshold Rebalancing Date paragraph 3 of the Credit Support
Annex shall not apply, and instead transfers of the Reference Obligation by UBS and Cash by Counterparty pursuant to this Clause 13(b)(i) (other than any payments made pursuant to Clause 13(b)(i)(5)) will be deemed to be Transfers of Eligible Credit
Support. 

  

	 	(ii)	 On any Business Day on which the Class A-R Market Price (i) is
above or equal to the Rebalancing Threshold and (ii) was below the Rebalancing Threshold on the immediately preceding Business Day, such Business Day shall be an “Above Threshold Rebalancing Date”. On each Above Threshold
Rebalancing Date, (1) the Final Price shall be deemed to be (a) the Class A-R Market Price on such date, multiplied by (b) the Reference Obligation Principal Amount on such date (prior to
any adjustments made pursuant to this Clause 13(b)(ii)), (2) Capital Appreciation shall be payable, (3) the Reference Obligation Principal Amount of the related Reference Obligation shall be decreased (the “Reference Obligation
Principal Amount Reduction Amount II”) such that the new Reference Obligation Principal Amount shall equal the Notional Amount divided by the Class A-R Market Price on such day, (4) (a) pursuant
to the definition thereof, the Pledged Notes Principal Amount applicable to such Transaction shall be increased by an amount equal to Reference Obligation Principal Amount Reduction Amount II and (b) Counterparty shall Transfer to UBS a
principal amount of the Reference Obligation equal to the Reference Obligation Principal Amount Reduction Amount II, and (5) UBS shall pay to Counterparty an amount in Cash equal to (a) the Value of all Eligible Credit Support, calculated
after the Transfer made pursuant to Clause 13(b)(ii)(4)(b) above, minus (b) the Independent Amount. On each Above Threshold Rebalancing Date 



  
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paragraph 3 of the Credit Support Annex shall not apply, and instead transfers of the Reference Obligation by Counterparty and Cash by UBS pursuant to this Clause 13(b)(i) will be deemed to be
Transfers of Eligible Credit Support. 

  

	(c)	Each Business Day on which the Class A-R Market Price (i) is below the Rebalancing Threshold and (ii) was below the Rebalancing Threshold on the immediately
preceding day shall not be a Rebalancing Date, Above Threshold Rebalancing Date or Below Threshold Rebalancing Date. 

  

	(d)	On any Business Day on which there is a Reference Obligation Principal Amount Increase Amount or a Reference Obligation Principal Amount Increase Amount II (a “ROPA Increase Amount”),
Counterparty shall be required to sell, at a price equal to the Class A-R Market Price, an amount of Reference Obligation with a principal amount equal to such ROPA Increase Amount to an entity designated
by UBS (a “Hedge Counterparty”). To ease operational burdens, UBS may require that UBS, the Counterparty and the Hedge Counterparty net settle their respective obligations in connection with a Rebalancing Date or a Below Threshold
Rebalancing Date. 

  

	(e)	On any Business Day on which there is a Reference Obligation Principal Amount Reduction Amount or a Reference Obligation Principal Amount Reduction Amount II (a “ROPA Reduction Amount”), UBS shall be
required to arrange the sale by a Hedge Counterparty, at a price equal to the Class A-R Market Price, of an amount of Reference Obligation with a principal amount equal to such ROPA Reduction Amount. To
ease operational burdens, UBS may require that UBS, the Floating Rate Payer and the Hedge Counterparty net settle their respective obligations in connection with a Rebalancing Date or an Above Threshold Rebalancing Date. 


- signature page follows - 

  
 -26- 








 Please confirm that the foregoing correctly sets forth the terms of our agreement by having a duly authorized
officer of Counterparty execute this Confirmation and return the same by facsimile to the attention of the individual at UBS indicated on the first page hereof. 
  

									
	Yours faithfully
	For and on Behalf of
	UBS AG, LONDON BRANCH
					
	By:	 	
                     
                                        
	 		 	By:	 	
                     
                                        


	Name:	 		 		 	Name:	 	
	Title:	 		 		 	Title:	 	


  
 -27- 









			
	Acknowledged and agreed by CM Finance Inc., as of the date specified above.


			
	
	CM FINANCE INC.,
	as TRS Counterparty
		
	By:	 	
                     
                                        


	Name:	 	
	Title:	 	


  
 -28- 








 ANNEX A 

ADDITIONAL DEFINITIONS 

“Advance Restructuring Notice” has the meaning given to such term in the Collateral Management
Agreement. 
 “Affiliate”, for purposes of this Confirmation only, has the meaning given to such term in
Rule 405 under the Securities Act of 1933, as amended. 
 “Aggregate Outstanding Amount” has the meaning
given to such term in the Reference Obligation Indenture. 
 “Approved Dealer” means (a) any entity listed in
Annex B hereto and (b) if an entity listed in Annex B hereto is not the principal banking or securities Affiliate within a financial holding company group, the principal banking or securities Affiliate of such listed entity within
such financial holding company group; provided that (i) UBS may at any time, upon written notice to Counterparty, delete any name listed in such Annex so long as such deletion is consistent with the general application of its internal
credit and risk policies with respect to such Approved Dealer (and not designed to circumvent the rights of Counterparty hereunder) and (ii) the parties may, at any time, agree in writing to add or remove an Approved Dealer to or from Annex B.

 “Breakage Cost Calculation Period” means, with respect to any termination of the Transaction following the delivery of an
Accelerated Termination Notice pursuant to Clause 3(a) or 3(b), each period from, and including, one Breakage Cost Hypothetical Payment Date to, but excluding, the next following Breakage Cost Hypothetical Payment Date, except that (a) the
initial Breakage Cost Calculation Period will commence on, and include, the Obligation Termination Date, and (b) the final Breakage Cost Calculation Period will end on, but exclude, the Scheduled Termination Date. 

“Breakage Cost Hypothetical Payment Date” means, with respect to any termination of the Transaction following the delivery of an
Accelerated Termination Notice pursuant to Clause 3(a) or 3(b), (a) each Payment Date, commencing on the first Payment Date following the date on which such Accelerated Termination Notice is delivered, and (b) the Scheduled Termination Date.

 “Breakage Costs” means, with respect to any termination of the Transaction following the delivery of an Accelerated
Termination Notice pursuant to Clause 3(a) or 3(b), an amount equal to the sum, determined with respect to each Breakage Cost Calculation Period occurring after the date on which such Accelerated Termination Notice is delivered, of the sum of the
product of the following: 
  

	(a)	USD50,000,000, 

  

	(b)	the Floating Rate Day Count Fraction (determined based on the actual number of days in such Breakage Cost Calculation Period), and 

  

	(c)	First Fixed Spread, which for the purposes of this definition shall be calculated as if the Outstanding Class A-R Funded Amount on such date is less than 50% of the Maximum
RCN Facility Funding Commitment, 

 discounted from the Breakage Cost Hypothetical Payment Date occurring immediately following
the end of such Breakage Cost Calculation Period to the Obligation Termination Date; provided that such present value shall be determined using the discount factor implied by the mid-point between the forward
bid and offered side LIBOR curves for fixed-for-floating LIBOR swaps of the relevant tenors. 

  
 -1- 








 “Capital Appreciation” and “Capital Depreciation” means, for any
Total Return Payment Date, the amount determined according to the following formula for the applicable Terminated Obligation: 
 Final Price
– Applicable Notional Amount 
 where 

“Final Price” means (a) on any Rebalancing Date, Below Threshold Rebalancing Date or Above Threshold Rebalancing
Date the amount determined pursuant to Clause 13, and (b) with respect to any Terminated Obligation, the amount determined pursuant to Clause 4; and 

“Applicable Notional Amount” means, whether on a Rebalancing Date, Below Threshold Rebalancing Date, Above Threshold
Rebalancing Date or in connection with a Terminated Obligation, the Notional Amount immediately prior to giving effect to such Rebalancing or Termination. 

If such amount is positive, such amount is “Capital Appreciation” and if such amount is negative, the absolute value of such amount is
“Capital Depreciation”. 
 “Class A Notes” means the Class A Notes issued from time to
time by the Reference Entity under the Reference Obligation Indenture. 
 “Class A-R Market
Price” means, on any date of determination, (a) the Class A-R Overall Collateral Value on such date, divided by (b) the Outstanding
Class A-R Funded Amount on such date. 
 “Class A-R
Overall Collateral Value” means, on any date of determination, (a) the Class A-R Total Asset Amount on such date plus (b) the
Class A-R Net Unrealized Capital Appreciation on such date less (c) the Class A-R Net Unrealized Capital Depreciation on such date. 

“Class A-R Net Unrealized Capital Appreciation” means, on any date of
determination, the product of (a) the Net Unrealized Capital Appreciation on such date and (b) an amount equal to the quotient of (i) the Outstanding Class A-R Funded Amount
on such date divided by (ii) the sum of (A) the Outstanding Class A-R Funded Amount on such date and (B) the Aggregate Principal Amount of Class A Notes that are outstanding on
such date. 
 “Class A-R Net Unrealized Capital Depreciation” means, on any
date of determination, the product of (a) the Net Unrealized Capital Depreciation on such date and (b) an amount equal to the quotient of (i) the Outstanding Class A-R Funded
Amount on such date divided by (ii) the sum of (A) the Outstanding Class A-R Funded Amount on such date and (B) the Aggregate Principal Amount of Class A Notes that are
outstanding on such date. 
 “Class A-R Notes” means the Class A-R Notes issued from time to time by the Reference Entity under the Reference Obligation Indenture. 

“Class A-R Total Asset Amount” means, on any date of determination, the
product of (a) the Total Asset Amount on such date and (b) an amount equal to the quotient of (i) the Outstanding Class A-R Funded Amount on such date divided by
(ii) the sum of (A) the Outstanding Class A-R Funded Amount and (B) the Aggregate Principal Amount of Class A Notes that are outstanding on such date. 

  
 -2- 








 “Code” means the U.S. Internal Revenue Code of 1986, as amended. 

“Collateral Management Agreement” means the Collateral Management Agreement dated as of May 23, 2013 between the Reference
Entity, the Collateral Manager and the Trustee, as amended as of December 4, 2013, September 26, 2014, July 20, 2015 and as amended and restated as of February 28, 2017 and as may be further amended or otherwise modified from
time to time. 
 “Collateral Manager” means CM Investment Partners LLC, or any successor thereto as “Collateral Manager”
pursuant to the Collateral Management Agreement. 
 “Commitment Amount” means, as of any date of determination (a) with respect
to a Reference Obligation, the maximum outstanding principal amount of the Reference Obligation that a registered holder of the Reference Obligation would on such date be obligated to fund, and (b) with respect to any Portfolio Asset that is a
Delayed Draw Loan, the maximum principal amount of such Portfolio Asset that the Reference Entity would be obligated to fund on such date (including, in each case, all amounts previously funded and currently outstanding, whether or not such amounts,
if repaid, may be reborrowed). 
 “Costs of Assignment” means, in the case of any Terminated Obligation or Portfolio Asset, the sum
of (a) any costs of any purchase, exchange, sale, transfer or assignment transaction with respect to such Terminated Obligation or Portfolio Asset paid by a person or entity effecting such transaction (including any UBS Holder) under the terms
of such Terminated Obligation or Portfolio Asset or otherwise actually imposed on such person or entity by any applicable trustee, administrative agent, registrar, borrower or obligor incurred in connection with any such transaction with respect to
such Terminated Obligation or Portfolio Asset (including, without limitation, any amounts reimbursable by such person or entity in respect of any tax or other governmental charge incurred with respect thereto), (b) any reasonable expenses that
are incurred by such person or entity in connection with any such transaction and (c) any reasonable administrative, legal or accounting fees, costs and expenses (including, without limitation, any fees and expenses of the trustee of or outside
counsel to the Reference Entity) that are incurred by such person or entity in connection with any such transaction. 
 “Current
Price” means, with respect to each Portfolio Asset on any date of determination, the determination by the Valuation Agent’s loan trading desk of the net cash proceeds that would be received from the sale on such date of
determination of such Portfolio Asset, exclusive of accrued interest and capitalized interest and net of the related expected Costs of Assignment; provided that, in the case of a Portfolio Asset: 

(i) if (x) such Portfolio Asset is the subject of a binding commitment to sell or otherwise dispose of such Portfolio Asset directly to an
Approved Dealer (and not, for the avoidance of doubt, through an intermediary or any other person or entity) (any such sale or disposition, an “Approved Dealer Direct Sale”), (y) the Calculation Agent has received a copy of
the related fully executed and delivered confirmation in substantially the form prescribed by the Loan Syndications & Trading Association or the Loan Market Association (as applicable) and (z) the Calculation Agent has determined,
based on such confirmation, that such a sale or disposition constitutes an Approved Dealer Direct Sale, then the Current Price shall be the actual sale price on the applicable trade date of such sale or disposition that is receivable by the
Reference Entity in respect of such Portfolio Asset (exclusive of accrued interest and capitalized interest and net of the related expected Costs of Assignment), pursuant to and in accordance with the terms of such binding commitment; and 

  
 -3- 








 (ii) if such Portfolio Asset is the subject of a binding commitment to sell or otherwise dispose
of such Portfolio Asset other than pursuant to an Approved Dealer Direct Sale, the Current Price shall be deemed to be the lesser of (x) the net cash proceeds that would be received from the sale or disposition on such date of determination of
such Portfolio Asset (exclusive of accrued interest and capitalized interest and net of the related expected Costs of Assignment), as determined by the Calculation Agent and (y) the actual sale price on the applicable trade date of such sale or
disposition that is receivable by the Reference Entity in respect of such Portfolio Asset (exclusive of accrued interest and capitalized interest and net of the related expected Costs of Assignment), pursuant to and in accordance with the terms of
such binding commitment. 
 If, with respect to any date of determination, Counterparty, acting in a commercially reasonable manner and in good faith,
disputes any such original determination of the Current Price of any Portfolio Asset by the Valuation Agent, then Counterparty may, no later than two New York Business Hours after the notice of such determination is given to Counterparty, designate
at least one Dealer to provide to the Valuation Agent, within such two New York Business Hour period, a Firm Bid to purchase each such Portfolio Asset (with a quotation amount equal to the Par Amount or (in the case of a Delayed Draw Loan)
Commitment Amount). Such Firm Bid (or the highest Firm Bid, if more than one) timely received in accordance with the foregoing will be the Current Price of the relevant Portfolio Asset with respect to the relevant date of determination. 

If no such Firm Bid is timely received in accordance with the foregoing (such Portfolio Asset, a “Disputed Portfolio Asset”), (a)
Counterparty shall request that the Independent Valuator, provide an Eligible Valuation to the Valuation Agent, (b) if (i) no such Eligible Valuation is received by the Valuation Agent from the Independent Valuator by 2:00 p.m. (New York time)
on the fifth Business Day following such request or (ii) the Valuation Agent in good faith has a commercially reasonable basis to disagree with Independent Valuator’s Eligible Valuation and the Valuation Agent notifies Counterparty of such
disagreement on the day such Eligible Valuation is received by the Valuation Agent (the earlier of such fifth Business Day and the day of such notification, the “Notification Day”), then no later than 10:00 a.m. (New York time) on
the Business Day next following the Notification Day, the Valuation Agent shall deliver a request to any of CTS Capital Advisors, LLC, Duff & Phelps, Valuation Research Corporation, GLC Advisors & Co., Houlihan Capital, Houlihan
Lokey or their respective successors (each, a “Back-Up Valuation Company”) to provide an Eligible Valuation for such Disputed Portfolio Asset and (c) the Current Price in relation
to such Disputed Portfolio Asset shall be: 
 (1)     if the Independent Valuator provides an Eligible Valuation and the
Valuation Agent does not provide a request in accordance with sub-clause (b) above, the Resolved Current Price in relation to the Eligible Valuation provided by the Independent Valuator; 

(2)     if the Valuation Agent provides a request in accordance with sub-clause
(b) above and the Back-Up Valuation Company provides an Eligible Valuation for such Disputed Portfolio Asset by no later than 2:00 p.m. (New York time) on the fifth Business Day following such request,
the Resolved Current Price in relation to the Eligible Valuation provided by the Back-Up Valuation Company; 

(3)    if the Valuation Agent provides a request for the Back-Up Valuation Company
as a result of the event described in sub-clause (b)(i) above and the Back-Up Valuation Company fails to provide an Eligible Valuation for such Disputed Portfolio Asset
by no later than 2:00 p.m. (New York time) on the fifth Business Day following such request, the Current Price originally determined by the Valuation Agent; and 

  
 -4- 








 (4)    if the Valuation Agent provides a request for the Back-Up Valuation Company following the delivery of a notice to the Counterparty in accordance with sub-clause (b)(ii) above and the
Back-Up Valuation Company fails to provide an Eligible Valuation for such Disputed Portfolio Asset by no later than 2:00 p.m. (New York time) on the fifth Business Day following such request, the Eligible
Valuation provided by the Independent Valuator. 
 For the avoidance of doubt, any determination of any amount herein (other than any portion of such amount
that represents an undisputed amount) consequent upon the determination of a Current Price subject to dispute as provided above shall be delayed until the deadline for the provision of Firm Bid or an Eligible Valuation (or, if applicable, any such
valuation) to the Valuation Agent as aforesaid. The “Current Price” shall be (i) expressed as a percentage of (A) in the case of a Portfolio Asset that is not a Delayed Draw Loan, the Par Amount or (B) in the case of a
Portfolio Asset that is a Delayed Draw Loan, the Commitment Amount and (ii) determined exclusive of accrued interest and capitalized interest. 

“Dealer” means (a) any entity (other than the Calculation Agent or any of its Affiliates) designated by the Calculation Agent or
its designated Affiliate in its sole discretion as a “Dealer” for the purposes of this Confirmation and (b) to the extent designated by Counterparty as provided in Clause 4(b) or pursuant to the definition of “Current
Price”, either (i) any Approved Dealer or (ii) any other entity approved in advance by UBS, such approval not to be unreasonably withheld or delayed (it being agreed that UBS may reasonably withhold its approval based on the credit
standing and its risk assessment of such entity); provided that the Calculation Agent or any Affiliate thereof may be a Dealer if more than one Dealer is designated pursuant to Clause 4. 

“Defaulted Portfolio Asset” means any Portfolio Asset as to which (a) there has occurred a default as to the payment of principal
and/or interest (without regard to any notice requirement or grace period; provided that any capitalization of interest that is permitted under the terms of the relevant Underlying Instrument shall not constitute a default for purposes of the
foregoing), (b) such Portfolio Asset is a Participation Interest with respect to which the relevant Selling Institution has defaulted in any respect in the performance of any of its payment obligations under such Participation Interest or
(c) such Portfolio Asset is a Participation Interest in a loan that would, if such loan were a Portfolio Asset, constitute a “Defaulted Portfolio Asset”; provided that, in each of the cases set forth in clauses (a) through
(c) above, such Portfolio Asset will only constitute a “Defaulted Portfolio Asset” for so long as such default has not been cured or waived. 

“Delayed-Draw Loan” has the meaning given to such term in the Reference Obligation Indenture. 

“Eligible Valuation” means, with respect to any Disputed Portfolio Asset, a valuation (which may be quoted in a range of values) for
the outstanding principal amount of such Portfolio Asset (expressed as a percentage of par) representing the net cash proceeds that would be received from the sale of such Portfolio Asset on the date such valuation is provided, exclusive of accrued
interest and capitalized interest. 
 “Firm Bid” means, (a) with respect to a Terminated Obligation, a good and irrevocable bid
for value to purchase all of, and assume all outstanding funding obligations under, such Terminated Obligation, expressed as a dollar amount and determined exclusive of accrued interest and capitalized interest, for scheduled settlement no later
than the Relevant Settlement Date, submitted by (i) in the case of a Firm Bid obtained for purposes of Clause 4(a), an Approved Dealer specified by Counterparty in its sole discretion or (ii) in the case of a Firm Bid obtained for purposes
of Clause 4(b), a Dealer specified by the Calculation Agent in its sole discretion (or, to the extent permitted by Clause 4(b), Counterparty), in each case as of a time during regular business hours in New York City and (b) with respect to a
Portfolio Asset and any dispute with respect to the determination of the Current Price thereof, a good and irrevocable bid 

  
 -5- 








 
for value to purchase the Par Amount or (in the case of a Delayed Draw Loan) Commitment Amount of such Portfolio Asset, expressed as a percentage and determined exclusive of accrued interest and
capitalized interest, for scheduled settlement within the standard settlement cycle for such Portfolio Asset (with such cycle commencing on the applicable date of submission), submitted by a Dealer specified by the Calculation Agent in its sole
discretion (or, to the extent permitted by Clause 4(b), Counterparty), in each case as of a time during regular business hours in New York City. 

“Indenture Valuation Agent” has the meaning assigned to the term “Valuation Agent” in the Reference Obligation Indenture.

 “Independent Valuator” has the meaning given to such term in Clause 7(i) above. 

“Insolvency Event” has the meaning given to such term in the Reference Obligation Indenture. 

“Interest and Fee Amount” means, for any Fixed Amount Payer Calculation Period, the aggregate amount of interest (including, without
limitation, interest breakage costs, deferred or capitalized interest and interest thereon), fees (including, without limitation, amendment, consent, tender, facility and other similar fees) and other amounts (other than in respect of principal
repayments) actually paid with respect to an amount of the Reference Obligation equal to the daily average, during the related First Fixed Rate Payer Calculation Period, of the Reference Obligation Principal Amount (after deduction of any
withholding taxes for which the relevant Reference Entity is not obligated to reimburse holders of the Reference Obligation, if applicable) during such Fixed Amount Payer Calculation Period; provided that Interest and Fee Amounts shall not
include any amounts that accrue prior to the Effective Date or that accrue on or after the Obligation Termination Date. 
 “Interest
Collections” has the meaning given to such term in the Reference Obligation Indenture. 
 “Material Action” means an
event described in the definition of “Material Action” in the Collateral Management Agreement (as determined by the Calculation Agent in its sole discretion). 

“Maximum RCN Facility Funding Commitment” has the meaning given to such term in the Reference Obligation Revolving Credit Note
Agreement. 
 “Net Unrealized Capital Appreciation” means, with respect to all Portfolio Assets in the Portfolio (other than Non-Approved Portfolio Assets, Zero Value Participation Interests and Defaulted Portfolio Assets) and any date of determination, the greater of (a) zero and (b) an amount equal to: 

 

	(i)	the sum, with respect to each such Portfolio Asset in the Portfolio of which the Current Price is greater than the Purchase Price of such Portfolio Asset, of (A) such Current Price minus such Purchase Price
multiplied by (B) (1) in the case of a Portfolio Asset that is not a Delayed Draw Loan, the Par Amount of such Portfolio Asset or (2) in the case of a Portfolio Asset that is a Delayed Draw Loan, the Commitment Amount of such Portfolio
Asset, minus 

  

	(ii)	the sum, with respect to each such Portfolio Asset in the Portfolio of which the Current Price of such Portfolio Asset is less than the Purchase Price of such Portfolio Asset, of (A) such Purchase Price minus such
Current Price multiplied by (B) (1) in the case of a Portfolio Asset that is not a Delayed Draw Loan, the Par Amount of such Portfolio Asset or (2) in the case of a Portfolio Asset that is a Delayed Draw Loan, the Commitment Amount of such
Portfolio Asset; 

 provided that, for the purposes of computing the Net Unrealized Capital Appreciation, any such Portfolio Asset that
is sold or repaid will be deemed to continue to be outstanding in an amount equal to its Par Amount (or in the case of a Delayed Draw Loan, Commitment Amount) until (but excluding) the date of settlement of such sale or the date of such repayment.


  
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 “Net Unrealized Capital Depreciation” means, with respect to all Portfolio Assets in the
Portfolio (other than Non-Approved Portfolio Assets, Zero Value Participation Interests and Defaulted Portfolio Assets) and any date of determination, the greater of (a) zero and (b) an amount equal
to: 
  

	(i)	the sum, with respect to each such Portfolio Asset in the Portfolio of which the Current Price of such Portfolio Asset is less than the Purchase Price of such Portfolio Asset, of (A) such Purchase Price minus such
Current Price multiplied by (B)(1) in the case of a Portfolio Asset that is not a Delayed Draw Loan, the Par Amount of such Portfolio Asset or (2) in the case of a Portfolio Asset that is a Delayed Draw Loan, the Commitment Amount of such
Portfolio Asset, minus 

  

	(ii)	the sum, with respect to each such Portfolio Asset in the Portfolio of which the Current Price is greater than the Purchase Price of such Portfolio Asset, of (A) such Current Price minus such Purchase Price
multiplied by (B) (1) in the case of a Portfolio Asset that is not a Delayed Draw Loan, the Par Amount of such Portfolio Asset or (2) in the case of a Portfolio Asset that is a Delayed Draw Loan, the Commitment Amount of such Portfolio
Asset; 

 provided that, for the purposes of computing the Net Unrealized Capital Depreciation, any such Portfolio Asset that is sold
or repaid will be deemed to continue to be outstanding in an amount equal to its Par Amount (or in the case of a Delayed Draw Loan, Commitment Amount) until (but excluding) the date of settlement of such sale or the date of such repayment. 

“New York Business Hour” means any one-hour period that occurs during the period from 9:00
a.m. (New York time) to 6:00 p.m. (New York time) on any day on which commercial banks are open for business in New York City; provided that if a period is expressed as an amount of New York Business Hours and insufficient New York Business Hours
exist prior to 6:00 p.m. (New York time) on the relevant day following the commencement of such period, such period shall be deemed to continue on the next succeeding day on which commercial banks are open for business in New York City until the
relevant period of New York Business Hours has expired. 
 “Non-Approved Portfolio Asset”
means any Portfolio Asset which UBS has not approved in writing by notice to Counterparty on or prior to the settlement date of the acquisition thereof by the Reference Entity. 

“Outstanding Class A-R Funded Amount” has the meaning given
to such term in the Reference Obligation Revolving Credit Note Agreement. 
 “Par Amount” means, in relation to any Portfolio Asset,
the outstanding principal amount of such Portfolio Asset (as the same may be increased in the case of a Delayed Draw Loan pursuant to any amount drawn in respect of such Delayed Draw Loan). The Par Amount of any Delayed Draw Loan on any date shall
include the aggregate stated face amount of all letters of credit, bankers’ acceptances and other similar instruments issued in respect of such Delayed Draw Loan to the extent that the holder of such Delayed Draw Loan is obligated to extend
credit in respect of any drawing or other similar payment thereunder. 
 “Participation Interest” has the meaning given to such term
in the Reference Obligation Indenture. 
 “Pledged” has the meaning given to it in Clause 9(b). 

  
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 “Pledged Notes Principal Amount” means, with respect to the Pledged Notes on any
Valuation Date, an amount equal to the Outstanding Class A-R Funded Amount on such date, minus the Reference Obligation Principal Amount. 

“Portfolio Asset Obligor” means, in relation to any Portfolio Asset, the borrower or issuer of the Portfolio Asset set forth in, and
identified as the “Obligor” in, the Relevant Source. In addition, “Portfolio Asset Obligor”, unless the context otherwise requires, shall also refer to any guarantor of or other obligor on the Portfolio Asset. 

“Post-Restructuring Notice” has the meaning given to such term in the Collateral Management Agreement. 

“Principal Balance” has the meaning given to such term in the Reference Obligation Indenture. 

“Principal Collections” has the meaning given to such term in the Reference Obligation Indenture. 

“Purchase Amount” means, as of any date of determination, (i) in relation to any Portfolio Asset that is not a Delayed Draw Loan,
the product of the Purchase Price and the Par Amount; and (ii) in relation to any Portfolio Asset that is a Delayed Draw Loan, the product of the Purchase Price and the Commitment Amount. 

“Purchase Price” has the meaning given to such term in the Reference Obligation Indenture. 

“Rebalancing Threshold” means 90%. 

“Reference Obligation Revolving Credit Note Agreement” means the Amended and Restated Revolving Credit Note Agreement dated as of
December 4, 2013 and amended and restated as of November 20, 2017 between the Reference Entity, U.S. Bank National Association and the noteholders from time to time party thereto, as amended, supplemented or modified prior to the date
hereof, and as the same may be further amended, modified or otherwise supplemented from time to time. 
 “Relevant Settlement Date”
means the date following the Termination Trade Date that is customary for settlement substantially in accordance with the then-current market practice in the principal market for the relevant Reference Obligation (as determined by the Calculation
Agent). 
 “Relevant Source” means (a) in the case of an initial Portfolio Asset, the agreement specified as such in Schedule 1
to the Reference Obligation Indenture, and (b) otherwise, the indenture, credit agreement, loan agreement or other agreement governing such Portfolio Asset. 

“Remaining Unfunded Facility Commitment” has the meaning given to such term in the Reference Obligation Revolving Credit Note
Agreement. 
 “Resolved Current Price” means, with respect to any Eligible Valuation that is: 

 

	 	(a)	quoted as a range of values where the difference between the lowest and highest values in such range (each expressed as a percentage of par) is an amount greater than 5% of par, as determined by the Valuation Agent, the
lowest value in such range; 

  

	 	(b)	quoted as a range of values where the difference between the lowest and highest values in such range (each expressed as a percentage of par) is an amount less than or equal to 5% of par, as determined by the Valuation
Agent, the mid-point between the lowest and highest value in such range, as determined by the Valuation Agent; and 


  
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	 	(c)	not quoted as a range of values, such Eligible Valuation. 

 “Sale Amount” means, with
respect to any Portfolio Asset that is the subject of a binding commitment of the Reference Entity to sell such Portfolio Asset, the anticipated net cash proceeds that will be received by the Reference Entity from the sale of such Portfolio Asset,
exclusive of accrued interest and capitalized interest and net of any Costs of Assignment. 
 “Selling Institution” has the meaning
given to such term in the Reference Obligation Indenture. 
 “Terminated Obligation” means the Reference Obligation with respect to
which the Final Price is determined pursuant to Clause 4. 
 “Termination Settlement Date” means, for any Terminated Obligation,
(a) if the Final Price is determined by reference to the actual sale of a Terminated Obligation pursuant to Clause 4, the date of settlement of such sale and (b) otherwise, the Relevant Settlement Date. 

“Termination Trade Date” means, with respect to any Terminated Obligation, (a) where an Approved Dealer identified by
Counterparty is acquiring the Reference Obligation or applicable portion thereof from UBS or its Affiliate pursuant to Clause 4(a), the Termination Trade Date specified in the applicable Accelerated Termination Notice, or (b) otherwise the bid
submission deadline as shall be set forth in each of UBS’ requests issued pursuant to Clause 4(b) for Firm Bids for the portion of the principal amount (which shall include, with respect to the Reference Obligation, the Outstanding Class A-R Funded Amount and the Remaining Unfunded Facility Commitment) allocable to such Terminated Obligation (expressed as a percentage and determined exclusive of accrued interest and capitalized interest)
that are the basis for determining the Final Price of such Terminated Obligation. 
 “Total Asset Amount” means, on any date of
determination by the Valuation Agent, an amount equal to the sum of (a) the aggregate Purchase Amount of all Portfolio Assets in the Portfolio (other than Non-Approved Portfolio Assets, Zero Value
Participation Interests, Zero Value Portfolio Assets and Defaulted Portfolio Assets) on such date; plus (b) the aggregate amount of all cash standing to the credit of the Accounts (excluding any and all
Class A-R Prepayment Accounts and any and all amounts standing to the credit of the Expense Account and the Interest Account) on such date plus (c) the aggregate cost of purchase of all
“Eligible Investments” (as defined in the Reference Obligation Indenture) (other than any Eligible Investments (as defined in the Reference Obligation Indenture) acquired by the relevant Reference Entity using any funds credited to the
Expense Account or to the Interest Account) held by the Reference Entity on such date. 
 “Total Return Payment Date” means, each
Rebalancing Date Above Threshold Rebalancing Date, Below and Threshold Rebalancing Date and the Obligation Termination Date in respect of a Terminated Obligation. 

“UBS Holder” means, if UBS or an Affiliate of UBS holds the Reference Obligation or any portion thereof as a result of the
Transaction, UBS or such Affiliate, as appropriate. 
 “Underlying Instrument” means the indenture, credit agreement or other
agreement pursuant to which a Portfolio Asset has been issued or created and each other agreement that governs the terms of or secures the obligations represented by such Portfolio Asset or of which the holders of such Portfolio Asset are the
beneficiaries. 

  
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 “Unfunded Reference Obligation Amount” means, with respect to the Reference Obligation on
any date of determination, an amount equal to the excess of (a) the Commitment Amount of the Reference Obligation over (b) the Outstanding Class A-R Funded Amount of such Reference Obligation,
in each case on such date of determination. 
 “Zero Value Participation Interest” means any Participation Interest included in the
Portfolio Assets that (a) has not been elevated to a loan directly held and registered in the name of the Reference Entity within 90 days after the Effective Date or (b) is acquired by the Reference Entity at any time after the Effective
Date. 
 “Zero Value Portfolio Asset” means any Portfolio Asset that: (a) is deemed to be a Zero Value Portfolio Asset pursuant to
Clause 7(i) above, (b) has been a Defaulted Obligation (as defined in the Reference Obligation Indenture) for a continuous period of 14 calendar days, (c) is an obligation in relation to which the Collateral Manager did not provide an
Advance Restructuring Notice when originally due under the Collateral Management Agreement, (d) is an obligation (i) that is the subject of a proposed Material Action and (ii) with respect to which the Collateral Manager has taken any
Material Action without obtaining the consent of the Indenture Valuation Agent in accordance with the terms of the Collateral Management Agreement or (e) is an obligation in relation to which the Collateral Manager did not provide a
Post-Restructuring Notice when originally due pursuant to the Collateral Management Agreement. Notwithstanding the foregoing, with respect to any Portfolio Asset that is deemed to be a Zero Value Portfolio Asset pursuant to this definition, if the
Calculation Agent elects, in its sole discretion, that such Portfolio Asset shall no longer constitute a Zero Value Portfolio Asset, then such Portfolio Asset shall not constitute a Zero Value Portfolio Asset until such time, if any, as such
Portfolio Asset would otherwise be deemed to constitute a Zero Value Portfolio Asset pursuant to this definition and the Calculation Agent elects, in its sole discretion, that such Portfolio Asset shall constitute a Zero Value Portfolio Asset. 

  
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 ANNEX B 

APPROVED DEALERS 
 Bank of America
Securities LLC 
 Barclays Bank plc 
 BNP Paribas 

Cantor Fitzgerald 
 Castle Oak 

CIBC World Markets, Inc. 
 Citibank, N.A. 

Credit Agricole Cheuveux North America, Inc. 
 Credit Suisse First
Boston LLC 
 Deutsche Bank Securities Inc. 
 Goldman
Sachs & Co. 
 Guggenheim 
 Global Hunter 

Jefferies & Company Inc. 
 JPMorgan Chase Bank, N.A. 

Macquarie 
 Miller Tabak Roberts Securities, LLC 

Morgan Stanley & Co. 
 Nomura 

RBC Capital Markets Corp. 
 SG Americas Securities LLC 

Sterne, Age & Leach, Inc. 
 The Royal Bank of Scotland
plc. 
 UBS AG 
 Wachovia Capital Markets LLC 

  
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