Document:

EX-10.7

 Exhibit 10.7 
  

					
	

	  		 	
		  		 	 UBS AG
 100 Liverpool Street

London EC2M 2RH
 Tel. +44-20-7567 8000

  
  

			
		
	Date:	  	May 23, 2013 (as amended and restated as of June 6, 2013, as further amended and restated as of December 4, 2013 and as further amended and restated as of September 26, 2014)
		
	To	  	CM Finance Inc., as successor to CM Finance LLC (“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
		
	UBS Reference Number:	  	 85138421
  

  
 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., as successor to CM Finance LLC (“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 Amendment Effective Date specified below, this Confirmation amends and restates the prior
Confirmation, dated as of May 23, 2013 (as amended and restated as of June 6, 2013 and as further amended and restated as of December 4, 2013, and 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herein, which Original Confirmation (with respect to the period from and after the Amendment Effective Date) is hereby superseded and shall be of no further force or effect.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
		
	Effective Date:	  	May 23, 2013
		
	Scheduled Termination Date:	  	December 5, 2017
		
	Termination Date:	  	The earlier of (i) the Scheduled Termination Date with respect to the Transaction and (ii) the Obligation 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:	  	All of the Class A Notes issued from time to time by the Reference Entity under the Reference Obligation Indenture that are not Pledged Notes.
		
	Pledged Notes:	  	All of the Class A Notes issued by the Reference Entity under the Reference Obligation Indenture that are held by the Counterparty on the Effective Date or issued to Counterparty on the Amendment Effective Date.
		
	Reference Obligation Indenture:	  	The Indenture, dated as of May 23, 2013 between the Reference Entity and State Street Bank and Trust Company, as trustee (the “Trustee”), as (i) supplemented by the First Supplemental Indenture, dated as of
June 6, 2013, (ii) amended and restated as of December 4, 2013, (iii) further amended and restated as of the Amendment Effective Date and (iv) further amended, restated, supplemented or otherwise modified and in effect from time to
time.

  
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	Notional Amount:	  	 The outstanding principal amount of the Reference Obligation (determined after giving effect to any reduction in the principal amount thereof
pursuant to the terms of the Reference Obligation Indenture).
  
 In relation to a
Terminated Obligation, the principal amount of the related Reference Obligation that is the subject of such termination.

		
	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.
		
	Purchase Price:	  	As defined in the Reference Obligation Indenture.
		
	Purchase Amount:	  	 In relation to any Portfolio Asset that is not a Delayed Draw Loan and any date of determination, the product of the Purchase Price and the
Par Amount.
  
 In relation to any Portfolio Asset that is a Delayed Draw Loan and any
date of determination, the product of the Purchase Price and the Commitment Amount.

		
	Par Amount:	  	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.
		
	Commitment Amount:	  	In relation to any Portfolio Asset that is a Delayed Draw Loan as of any date of determination, the maximum outstanding principal amount of such Portfolio Asset that a registered holder of the amount of such Portfolio Asset held by
the Reference Entity would on such date be obligated to fund (including all amounts previously funded and outstanding, whether or not such amounts, if repaid, may be reborrowed).
		
	Portfolio Asset Obligor:	  	In relation to any Portfolio Asset, the borrower or issuer of the Portfolio Asset set forth in, and

  
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		  	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.
		
	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 June, 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
		
	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 sum of 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 during the related First Floating Rate Payer Calculation Period plus the Spread multiplied by (c) the Floating Rate Day Count Fraction.

  
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	 First Floating Rate Payer
 Calculation
Amount:
	  	In relation to any First Floating Rate Payer Payment Date, the daily average of the Notional Amount during the related First Floating Rate Payer Calculation Period.
		
	 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 final 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, except that (a) the initial First Floating Monthly Period will commence on,
and include, the Effective Date will end on, but exclude the First Floating Rate Payer Payment Date that occurs in June, 2013 and (b) the final First Floating Monthly Period will end on, but exclude, the date on which all of the Reference
Obligation is paid in full.
		
	Floating Rate Option:	  	USD-LIBOR-BBA, provided that the Floating Rate Option for initial First Floating Rate Payer Calculation Period shall be 0.19528%.
		
	Designated Maturity:	  	One month
		
	Spread:	  	 (a) For the period from and including the Effective Date to but excluding the Amendment Effective Date: 2.85%.

 
 (b) From and including the Amendment Effective Date: 2.75%.

		
	 Floating Rate Day
 Count Fraction:
	  	Actual/360
		
	Reset Dates:	  	As set forth in “Designated Maturity” above
		
	Compounding:	  	Inapplicable

  
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	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.
		
	Counterparty Third Floating Amounts:	  	
		
	Third Floating Amount Payer:	  	Counterparty
		
	Third Floating Amount:	  	$48,875.00
		
	 Third Floating Rate
 Payer Payment
Dates:
	  	The earlier of (a) September 26, 2014 and (b) the Termination Date.
		
	Counterparty Fourth Floating Amounts:	  	
		
	Fourth Floating Amount Payer:	  	Counterparty
		
	Fourth Floating Amount:	  	$258,541.67
		
	Fourth Floating Rate Payer Payment Dates:	  	The earlier of (a) December 4, 2014 and (b) the Termination Date.
		
	Counterparty Fifth Floating Amounts:	  	
		
	Fifth Floating Amount Payer:	  	Counterparty
		
	Fifth Floating Amount:	  	$259,958.33
		
	 Fifth Floating Rate
 Payer Payment
Dates:
	  	The earlier of (a) December 4, 2015 and (b) the Termination Date.
		
	Counterparty Sixth Floating Amounts:	  	
		
	Sixth Floating Amount Payer:	  	Counterparty
		
	Sixth Floating Amount:	  	$258,541.67
		
	 Sixth Floating Rate
 Payer Payment
Dates:
	  	The earlier of (a) December 5, 2016 and (b) the Termination 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 outstanding principal amount of the Reference Obligations 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 of 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 

  
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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). 

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 Third Floating Amount, the Counterparty Fourth Floating Amount, the Counterparty Fifth Floating Amount, the Counterparty Sixth Floating
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 Party A or any of its Affiliates or (ii) an Additional Termination Event
pursuant to Clause 3(c)(ii). 

 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
and under the Related Confirmation 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); and 

  
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	 	(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 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. 

  

	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 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 Section 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 Section 4(a), the Final Price for the Terminated Obligation shall be determined pursuant to Section 4(b) below. 

 

	(b)	 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

  
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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 Notional Amount allocable to a Terminated Obligation, the Final Price for such Terminated Obligation shall be determined by reference to the
highest such Firm Bid or 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 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. 

  
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 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 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 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 combination of Firm Bids, the “Final Price” for such unsold portion shall be equal to such highest Firm Bid (or combination of Firm Bids) multiplied by the portion of the Notional Amount
allocable to such Terminated Obligation (or the respective portions of the Notional Amount to which such Firm Bids relate). 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)	In the event that (i) the Final Price for all or any part of the Terminated Obligation is deemed to be zero pursuant to the foregoing and (ii) any UBS Holders holds 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 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; and (B) UBS shall not be liable for any losses related to any delay in or failure of such assignment beyond its control. Counterparty shall reimburse
UBS for all Costs of Assignment incurred by UBS in effecting the transfer promptly following UBS’ demand therefor. 

  

	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, after consultation with the parties, 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. 

  
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	 	(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 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 loan of USD 102,000,000 from UBS to the Counterparty 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. 

  
 Page 12 

	(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 

  
 Page 13 

	 	
or more of the Reference Entity, the Portfolio Asset Obligors and their respective 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 

  
 Page 14 

	 	
connection with, and its own credit analysis and decision to take or not take 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; 

  
 Page 15 

	 	(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 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;

  
 Page 16 

	 	(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 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 

  
 Page 17 

	 	(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. 

  

	(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 Valuation Agent under (and as defined in) the Reference Obligation Indenture, 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. 

  

	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. 

  
 Page 18 

	(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)	Counterparty shall Transfer Eligible Collateral to UBS pursuant to the terms of the Credit Support Annex between UBS and Counterparty, as amended hereby. For purposes of said Credit Support Annex, the Independent Amount
applicable to Counterparty in respect of the Transaction to which this Confirmation relates shall, on any Valuation Date, be equal to the aggregate Value of the Pledged Notes, and Counterparty’s obligations to transfer collateral to UBS in
respect of such Independent Amount shall at all times be satisfied by the Pledged Notes being Transferred to UBS in accordance with the terms of the Credit Support Annex. 

 

	(b)	The definition of Exposure in Paragraph 12 of the Credit Support Annex is hereby amended and restated in its entirety to read: 

UBS’s “Exposure” as Secured Party for the Transactions entered into hereunder and under the Related Confirmation and any
Valuation Date or other date for which Exposure is calculated shall mean the sum of (a) the excess, if any, of the Class A-R Net Collateral Value Deficit over the Class A-R Variation Margin Threshold on such date plus (b) the
excess, if any, of the Class A Net Collateral Value Deficit over the Class A Variation Margin Threshold on such date. 
  

	(c)	The “Minimum Transfer Amount” with respect to Counterparty as of any Valuation Date shall be U.S.$100,000; provided that (i) a single Delivery Amount or Return Amount (as applicable)
shall be calculated on each Valuation Date for the Transactions entered into hereunder and under the Related Confirmation for purposes of determining whether or not the Minimum Transfer Amount has been exceeded and (ii) the Minimum Transfer
Amount for Counterparty shall be zero (1) for purposes of determining any Delivery Amount required to be Transferred by Counterparty in respect of any Independent Amount and (2) at any time when an Event of Default, Potential Event of
Default, Termination Event or event which with the giving of notice or lapse of time would (absent the cure thereof during any applicable grace period) constitute a Termination Event has occurred and is continuing with respect to which Counterparty
is (or would be) the Defaulting Party or Affected Party. 

  
 Page 19 

	(d)	Solely for purposes of the first demand (and not any subsequent demand) made by UBS as Secured Party for any Transfer of Eligible Credit Support by Counterparty in respect of a Delivery Amount (or the applicable portion
thereof) that is due to an increase in the Exposure of UBS as Secured Party (and not, for the avoidance of doubt, the Transfer of the Pledged Notes in satisfaction of Counterparty’s obligations in respect of the Independent Amount) made or
deemed made by UBS pursuant to Clause 9(a) above), Paragraph 4(b) of the Credit Support Annex shall be amended by (i) replacing the words “next Local Business Day” with “tenth Local Business Day thereafter” and
(ii) replacing the words “second Local Business Day thereafter” with “eleventh Local Business Day thereafter”. UBS shall make no further demand for the Transfer of Eligible Credit Support by Counterparty in respect of a
Delivery Amount (or the applicable portion thereof) that is due to an increase in UBS’ Exposure until such tenth or eleventh (as applicable) Local Business Day period has expired, whereupon the Transfer timing provisions of Paragraph 4(b) shall
apply as set forth in the Credit Support Annex without regard to the provisions of this Clause 9(d). 

  

	(e)	Notwithstanding anything to the contrary herein or in the Credit Support Annex, (i) the Threshold with respect to UBS shall be infinity, (ii) in no event shall Counterparty have any positive Exposure as a
Secured Party to UBS with respect to the Transaction to which this Confirmation relates and (iii) accordingly, (A) Counterparty shall be the only “Pledgor” and UBS shall be the only “Secured Party” for all purposes of
the Credit Support Annex and (B) only the Counterparty makes the pledge and grant in Paragraph 2 of the Credit Support Annex, the acknowledgment in the final sentence of Paragraph 8(a) of the Credit Support Annex and the representations in
Paragraph 9 of the Credit Support Annex. 

  

	(f)	In no event shall Counterparty’s Credit Support Amount as Pledgor be less than the sum of (i) the Independent Amount for the Transaction to which this Confirmation relates and (ii) the Independent Amount
for the Transaction evidenced by the Related Confirmation. Accordingly, in no event shall the Pledged Notes be Transferred to Counterparty until the Termination Date. 

 

	(g)	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. 

 

	(h)	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). 

 

	(i)	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”. 

  
 Page 20 

	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. 

399 Park Avenue, 39th Floor 

New York, NY 10022 
 Attention:
Stephon Barnes, Christopher E. Jansen and Michael C. Mauer 
 Tel: (212) 380-5904 

Email: cjansen@cmfn-inc.com, mm@cmfn-inc.com, jagarwal@cmfn-inc.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 
 Payments to
Counterparty: 
 Receiving Bank Name: State Street Bank and Trust Co. NA Boston 

Receiving Bank BIC Code: SBOSUS33XXX 

Receiving Bank ABA: 011000028 

Beneficiary Account Number: 10434322 

Beneficiary Account Name: CM Finance Inc 
  

	11.	OFFICES. 

  

	(a)	The Office of UBS for the Transaction: 

 London 

  
 Page 21 

	(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. 

- signature page follows - 

  
 Page 22 

 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:

 Confirmation – Signature Page 

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

 

			
	CM FINANCE INC.,
	 as TRS Counterparty

		
	By:	 	  

	Name:
	Title:

 Confirmation – Signature Page 

 ANNEX A 

ADDITIONAL DEFINITIONS 

“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. 
 “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, December 5, 2017. 

“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 product of
the following: 
  

	(a)	USD 102,000,000, 

  

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

  

	(c)	the Spread, 

 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. 
 “Capital Appreciation” and “Capital Depreciation”
mean, 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 

  
 Page A-1 

 “Final
Price” means, with respect to any Terminated Obligation, the amount determined pursuant to Clause 4, and 

“Applicable Notional Amount” means the Notional Amount (determined immediately prior to the applicable Termination
Trade Date) allocable to such Terminated Obligation. 
 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 Net Collateral Value” means, on any date of determination, the excess, if
any, of (a) the sum of (i) the Class A Total Asset Amount on such date plus (ii) the aggregate Value of all Posted Collateral held by UBS or its Custodian on such date (excluding any Pledged
Notes) in respect of the Transaction evidenced by this Confirmation plus (iii) the Class A Net Unrealized Capital Appreciation on such date over (b) the
sum of (i) the Aggregate Principal Amount of the Reference Obligation outstanding on such date plus (ii) the Class A Net Unrealized Capital Depreciation on such
date. 
 “Class A Net Collateral Value Deficit” means, on any date of determination, the
excess, if any, of (a) the Aggregate Principal Amount of the Reference Obligation outstanding on such date over (b) the Class A Net Collateral Value on such
date. 
 “Class A 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 Aggregate Principal Amount of Class A
Notes that are outstanding 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. 
 “Class A 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 Aggregate Principal Amount of Class A
Notes that are outstanding 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. 
 “Class A Notes” means the Class A Notes issued from time to time by the Reference
Entity under the Reference Obligation Indenture. 
 “Class A 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 Aggregate Principal Amount of Class A
Notes that are outstanding 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. 
 “Class A Variation Margin Threshold” means, on any date of determination, an amount
equal to 9% of the Aggregate Principal Amount of the Class A Notes then outstanding (after giving effect to any repayment on such date); provided that, the Class A Variation Margin Threshold shall be zero
while any “Event of Default” under (and as defined in) the Reference Obligation Indenture shall have occurred and be continuing.  

“Class A-R Net Collateral Value Deficit” has the meaning given to such term in the Related Confirmation. 

  
 Page A-2 

 “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 Variation Margin Threshold” has the
meaning given to such term in the Related Confirmation. 
 “Code” means the U.S. Internal Revenue Code of 1986, as
amended.  
 “Collateral Management Agreement” has the meaning given to such term in the Reference Obligation
Indenture. 
 “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. 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, the Current Price of the relevant Portfolio Asset will be the original determination thereof by the Valuation Agent. 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(s) (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

  
 Page A-3 

 
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. 
 “Firm Bid” means, (a) with respect to a
Terminated Obligation, a good and irrevocable bid for value to purchase all of such Terminated Obligation, expressed as a percentage of the portion of the Notional Amount allocable to such Terminated Obligation 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 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. 
 “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 the Reference Obligation (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. 
 “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 

  
 Page A-4 

	(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. 
 “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. 
 “Reference Obligation Revolving Credit Note Agreement” means the Revolving
Credit Note Agreement, dated as of December 4, 2013, between the Reference Entity, State Street Bank and Trust Company and the noteholders from time to time party thereto, as amended as of the Amendment Effective Date, as the same may be
further amended, modified or otherwise supplemented from time to time. 

  
 Page A-5 

 “Participation Interest” has the meaning given to such term in the
Reference Obligation Indenture. 
 “Related Confirmation” means the Confirmation, dated as of
December 4, 2013, with UBS Reference Number: 85242362 between Party A and Party B, as amended as of the Amendment Effective Date, as the same may be further amended, modified or otherwise supplemented from time to time.  

“Relevant Settlement Date” means the date 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 with reference to the relevant Termination Trade Date). 

“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. 

“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 terminated pursuant to
Clause 3. 
 “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 Section 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 Section 4(b) for Firm Bids for the portion of the Notional Amount 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 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) on such date; plus (c) the aggregate cost of purchase of all
“Eligible Investments” (as defined in the Reference Obligation Indenture) held by the Reference Entity on such date  

“Total Return Payment Date” means, with respect to any Terminated Obligation, the Obligation Termination Date in respect
of such Terminated Obligation.  

  
 Page A-6 

 “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. 
 “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 of the Effective Date or (b) is acquired by the Reference
Entity at any time after the Effective Date.  

  
 Page A-7 

 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 

  
 Page B-1Exhibit 10.32

 

STOCK
PURCHASE AGREEMENT

 

THIS STOCK PURCHASE AGREEMENT (this "Agreement'') is
made as of the ____day of February, 2014 (effective date) by and among TROY HOLDINGS INTERNATIONAL, INC., an Ontario Canada corporation
(the “Seller"), and TELECORP PRODUCTS. INC., a Michigan corporation. (herein referred to as the "Company"),
and Troy Inc. (“Shareholder") (as to Sections 8.01 and 8.02 only), and EPAZZ. INC., an Illinois corporation or its nominee
(herein referred to as “Purchaser "). each sometimes referred to herein as a ”Party“
and collectively the “Parties."

 

RECITALS

 

1.The Seller is the sole shareholder of
the Company and as such owns 1,400 shares of the no par value common stock of the Company (the "Shares"), representing
all of the issued and outstanding securities of the Company.

 

2.The Seller desires to sell, assign, transfer
unto Purchaser all of the right, title and interest in and to the Shares on the terms and subject to the satisfaction of all of
the conditions set forth herein (the “Transaction").

 

NOW, THEREFORE, in consideration of
the mutual agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Seller and Purchaser do hereby agree as follows:

 

ARTICLE I

SALE AND TRANSFER OF SHARES; CLOSING

 

Section 1.01 INCORPORATION OF RECITALS

The recitals set out in the above paragraph
are hereby restated and specifically incorporated into this Agreement.

 

Section 1.02 SALE

Upon the terms and subject to the conditions
of this Agreement, Seller shall sell, assign, transfer and set over to the Purchaser and Purchaser will purchase. all of the right,
title and interest of the Seller in and to the Shares, free and clear of all liens and claims.

 

Section 1.03 PURCHASE PRICE

The purchase price (“Purchase Price")
for the Shares shall be Three Hundred Twenty Thousand Dollars (US $320,000.00) and shall be payable to Seller, as follows:

 

	a.		Forthwith after the full execution of this Agreement and in any event, prior to any
site visit as contemplated in paragraph 4.01 herein, Purchaser shall deposit the sum of Twenty-Five Thousand Dollars (US $25,000.00)
to be held by the attorney for Seller "In Trust," subject to the terms of this Agreement. At Closing, the Deposit will
be a credit to Purchaser against the Purchase Price.

 

    	1

    	 

    

 

	b.		At Closing. Purchaser shall make a payment of One Hundred Seventy-Five Thousand Dollars
(US $175,000.00) (exclusive of the Deposit) to Seller.

	c.		At Closing. Purchaser shall further deliver to Seller an executed promissory note
in the amount of One Hundred Twenty Thousand Dollars (US $120,000.00) which promissory note shall provide for six (6) equal monthly
payments commencing thirty (30) days after Closing in the form attached hereto as Schedule A (the -Promissory Note").

	d.		The Promissory Note shall provide for no interest (except upon default, in which case
the interest rate shall be 10% p.a.) and contain a right of setoff. The Promissory Note shall be secured by a subordinate pledge
of the Shares (subordinate only to the line of credit with the Bank of the Company from time to time).

 

The Purchase Price shall be subject to adjustment
based on any decrease in the Working Capital (as that term is hereinafter defined) of the Company between September 30, 2013 and
the Closing Date. The September 30, 2013 Balance Sheet is annexed hereto as Schedule B. Prior to Closing, Seller's accountants
shall prepare an update of the Balance Sheet, as of the close of business on the day prior to Closing (the "Closing Balance
Sheet"). Working Capital shall mean, for the purposes of the Transaction, the difference between the value of the Company's
assets as shown on the Balance Sheet. and the value of the Company's liabilities, as shown on the Balance Sheet. The Closing Date
Working Capital shall mean the value of the Company's assets as shown on the Closing Date Balance Sheet less the value of the Company's
liabilities, as shown on the Closing Date Balance Sheet. The Working Capital Adjustment shall mean, a dollar for dollar decrease
in the Purchase Price in the event that the Closing Date Working Capital shall be less than the Working Capital. Any such decrease
shall be deducted from the payments under the Promissory Note.

 

Section 1.04 CLOSING 

The completion of the Transaction will take
place on or prior to February 28, 2014, or at the option of Purchaser, three (3) business days following the expiry or waiver of
the Due Diligence Period (as hereinafter defined). with no Notice of Disapproval (as hereinafter defined) having been issued by
the Purchaser or at such other time, date or place as the Seller and Purchaser may otherwise agree in writing (hereinafter the
"Closing" or "Closing Date”).

 

Section 1.05 CLOSING OBLIGATIONS

At Closing, Seller will deliver to Purchaser
(a) the certificate(s) representing the Shares. duly endorsed or accompanied by stock powers duly endorsed and (b) any and all
other documentation necessary to effect the sale and transfer of the Shares to the Purchaser. At Closing, the Purchaser will deliver
to Seller the cash consideration (by way of bank draft or wire transfer) in accordance with Section 1.03, the Promissory Note,
the Security Agreement, and any other documentation reasonably necessary to carry out the purposes and intent of this Agreement.

 

    	2

    	 

    

 

ARTICLE II

REPRESENTATIONS
AND WARRANTIES OF SELLER AND THE COMPANY 

 

The Seller hereby represents and warrants to
the Purchaser, as of the date hereof and as of the Closing Date. as follows:

 

Section 2.01 ORGANIZATION AND GOOD STANDING

 

	a.		The Company is a Michigan corporation duly organized, existing and in good standing
under the laws of the State of Michigan. The Company has all requisite power and authority, corporate or otherwise, to conduct
its business as it is now being conducted, to own and operate their assets and to perform all of its obligations under applicable
contracts.

	b.		Seller shall deliver to Purchaser copies of the Organizational Documents of the Company.
as currently in effect. during the Due Diligence Period.

	c.		Seller is an Ontario Canada corporation. duly organized, existing and in good standing
under the laws of Ontario Canada.

 

Section 2.02 CAPITALIZATION/COMMON STOCK
AND OWNERSHIP

There are Five Thousand (5,000) shares of common
stock authorized and One Thousand Four Hundred (1,400) shares of issued common stock (the "Shares") of the Company,
which Shares are solely held by Seller. All of the Shares have been duly authorized and validly issued and constitute all of the
capital stock of the Company. The Shares transferred by the Seller to Purchaser will be free and clear of liens. The Seller has
full legal right to sell, assign and transfer the Shares to Purchaser and will deliver to Purchaser certificates representing the
Shares, transfer good and indefeasible title to the Shares to Purchaser, free and clear of liens. There are no outstanding or authorized
subscriptions, options, warrants, calls, rights or other similar contracts, including rights of conversion or exchange under any
outstanding debt or equity security or other contract, to which any of the capital stock of the Company will he subject or obligating
the Seller and/or the Company to issue, deliver or sell, or cause to be issued, delivered or sold. any other shares of capital
stock of the Company or any other debt or equity securities convertible into or evidencing the right to subscribe for any such
shares of capital stock or obligating the Seller and/or the Company to grant, extend or enter into any such contract. There are
no voting trusts, proxies or other contracts to which Seller and/or the Company is a party or is bound with respect to the voting
of any shares of capital stock of the Company.

 

Section 2.03 AUTHORITY 

The Seller. the Shareholders and the Company have the absolute and unrestricted right, power, authority and
capacity to execute and deliver this Agreement. This Agreement constitutes the legal, valid and binding obligation of the Seller
and the Shareholders, enforceable against Seller and the Shareholders in accordance with its terms.

    	3

    	 

    

Section 2.04 NO CONFLICT

The execution and delivery
by the Seller of this Agreement and the consummation of the transaction contemplated herein, does not and shall not directly or
indirectly (with or without the lapse of time or the giving of notice or otherwise):

 

	a.		contravene. conflict with, or result in a violation of. any law or give any governmental
body or other person the right to challenge any of the transactions contemplated herein or to exercise any remedy or obtain any
relief under, any Legal Requirement or any Order to which the Company or Seller, or any of the assets owned or used by the Company,
may be subject;

	b.		contravene, conflict with, or result in a violation of any of the terms or requirements
of, or give any governmental body the right to revoke, withdraw, suspend, cancel, terminate, or modify, any governmental authorization
or any writ, injunction, order, judgment or decree of any governmental authority or any contract that is held by the Company or
that otherwise relates to the business of. or any of the assets owned or used by, the Company;

	c.		cause Purchaser or the Company (after Closing) to become subject to. or to become
liable for the payment of any taxes for the period prior to the Closing;

	d.		cause any of the assets owned by the Company to be reassessed or revalued by any taxing
authority or other governmental body; or

	e.		contravene, conflict with. or result in a violation or breach of any provision of,
or give any person the right to declare a default or exercise any remedy under, or to accelerate the maturity or performance of,
or to cancel, terminate, or modify, any contract.

 

Section 2.05 CONSENTS AND APPROVALS

No governmental approvals,
notifications, filings or registrations to or with any governmental authority or any other person is or will be necessary for the
valid execution and delivery by Seller or Company of this Agreement (including the Closing Documents for the consummation of the
transactions contemplated herein), or the enforceability hereof.

 

Section 2.06 LIABILITIES

A
true and correct itemization of all of Seller's liabilities, including without limitation, all amounts to be owed to employees
in respect of their employment prior to the Closing Date (including without limitation, accrued vacation pay) is set forth in Schedule
D. The Purchaser shall be responsible to disclose liabilities, at Closing not to exceed a total of $50,000.00 (the "Liability
Limit"); (inclusive of all tax liabilities whether federal (U.S. or Canada), state or local), whether or not reflected in
the Closing Balance Sheet of the Company, shall be the responsibility of the Seller. If the total liabilities of the Company exceed
$50,000, the Purchaser shall forthwith provide documents evidencing such liabilities in excess of the Liability Limit (the "Excess
Liabilities" or individually, an "Excess Liability") to the Seller who shall have the opportunity to settle or challenge
each Excess Liability, failing which the Purchaser shall be entitled to deduct the amount of the Excess Liabilities from payments
otherwise due to the Seller under the Promissory Note described in paragraph 1.03 d. herein unless the Seller has settled
and paid the same. Further, the parties agree that all debt owed by the Company to either the Seller. its shareholder, or any affiliates
of any of the foregoing shall be released (whether paid or forgiven). at or prior to Closing. Seller agrees to provide documentation
to Purchaser, in form reasonably acceptable to Purchaser, evidencing such release. For the purposes of this Agreement, "deferred
revenues" shall not he considered to be liabilities of the Company and shall not be included in the 'Liability Limit' calculations.
Seller shall hold harmless Purchaser against liabilities over the Excess Liabilities, including without limitation, all costs,
expenses and attorneys' fees associated therewith.

    	4

    	 

    

 

Section 2.07 TAXES

The Company has filed or will cause to be filed
all tax returns that were required to be filed by or with respect to them, pursuant to legal requirements, including without limitation,
United States Federal income tax withholding tax. and any State of Michigan taxes and shall indemnify the Purchaser against all
such liabilities for the time period through the date of Closing except such obligations not yet due and payable for which appropriate
provision shall have been made by payment into escrow, held by Seller's attorney, for such amounts as set forth for such taxes
in the Closing Balance Sheet. Any liability in excess of the escrowed amount shall remain the responsibility of Seller.

 

Section 2.08 RESIGNATION OF OFFICERS/DIRECTORS

The Seller shall cause the resignation of all
of the Officers/Directors of the Company executing and delivering the requisite documentation necessary to affect said resignation
at Closing. Furthermore. the Seller agrees to assist the Purchaser with the change in the authorized signatories on the bank accounts
of the Company and any other procedures necessary to affect the transfer of the rights associated with the operations of the Company
from the Seller to the Purchaser as is reasonably requested of Seller.

 

Section 2.09 FINDERS/BROKERS

The parties acknowledge that the Seller has
retained the services of a Broker. who shall be compensated by the Seller upon the completion of the transaction (the "Seller's
Broker"). Except for the Seller's Broker, no other broker, finder or financial advisor has acted for Seller in connection
with this Agreement or the transactions contemplated hereby or thereby, and no other broker, Finder or financial advisor is entitled
to any broker's, finder's or financial advisor's fee or other commission in respect thereof based in any way on any contract with
Seller, and Seller agrees to indemnify, defend and hold Purchaser harmless from and against all claims, demands, actions, liabilities,
damages, costs and expenses (including reasonable attorneys' fees) arising from a claim for a fee or commission made by any broker,
finder or financial advisor claiming to have acted by or on behalf of Seller in connection with this Agreement.

 

Section 2.10 LITIGATION

Except as set forth on Exhibit C attached hereto
and incorporated herein, there are no claims pending or, to the knowledge of the Seller and the Company, threatened against or
affecting the Company or any of its assets, liabilities and properties before or by any governmental authority or any other person.
The Seller and the Company have no knowledge of any claim, which alone or in the aggregate: (a) could reasonably be expected to
result in any liability with respect to the Company; or (b) seeks to restrain or enjoin the execution and delivery of this Agreement
or the consummation of any of the transactions contemplated hereby or thereby. There are no judgments or outstanding orders, injunctions,
decrees, stipulations or awards against either of the Company or any of their assets and properties.

 

    	5

    	 

    

 

Section 2.11 DISCLOSURE 

The schedules. documents, exhibits, reports,
certificates and other written statements and information furnished by or on behalf of Seller and/or the Company to the Purchaser
do not contain any material misstatement of fact or omit to state a material fact necessary in order to make the statements contained
therein, not misleading. To the best of their knowledge and belief, without having conducted any independent inquiry, Seller and
the Company have not withheld any fact known to them which has or is reasonably likely to have a material adverse effect with respect
to the Company, this Agreement or the transactions contemplated herein.

 

Section 2.12 OWNERSHIP 

The Seller represents and warrants that Seller
owns all of the Shares that are subject to this Agreement. which Shares represent all of the outstanding securities of the Company.

 

Section 2.13 LABOR AND EMPLOYMENT AGREEMENTS
AND EMPLOYEE BENEFIT PLANS 

 

	a.		The Company is not a party to any collective bargaining agreement and other labor
agreement or employment agreement or any ERISA or NON-ERISA Plans, except as set forth on Exhibit D.

	b.		All obligations of the Company (whether arising by operation of law. by contract,
by past custom or otherwise). for salaries, vacation and holiday pay, sick pay, bonuses and other forms of compensation payable
to the officers. directors or other employees of the Company in respect of the services rendered to the Company have been paid
through the date of Closing.

 

Section 2.14 THE MINUTE BOOK

The minute books and other similar records
of the Company will be delivered to Purchaser during the Due Diligence Period and contain a true and complete record of all action
taken at all meetings and by all written consents in lieu of meetings of the shareholders, the boards of directors and committees
of the boards of directors of the Company. The stock transfer ledgers and other similar records of the Company will be delivered
to Purchaser during the Due Diligence Period and accurately reflect all record transfers prior to the execution of this Agreement
in the capital stock of the Company.

 

Section 2.15 BANK ACCOUNTS

The list of bank accounts of the Company will
be delivered to Purchaser during the Due Diligence Period and contain an accurate and complete list of (i) the names and addresses
of each bank in which the Company has an account; (ii) the account numbers of such accounts; and (iii) the authorized signatories
and amounts for such accounts.

    	6

    	 

    

 

 

ARTICLE
III

REPRESENTATIONS AND WARRANTIES OF PURCHASER

 

The Purchaser hereby represents and warrants
to the Seller, as of the date hereof and as of the Closing, as follows:

 

Section 3.01 ORGANIZATION AND GOOD STANDING 

The Purchaser is an Illinois corporation duly
organized. existing and in good standing under the laws of the State of Illinois.

 

Section 3.02 AUTHORITY 

The Purchaser has the absolute and unrestricted
right, power, authority and capacity to acquire the Company and execute and deliver this Agreement. This Agreement constitutes
the legal, valid and binding obligation of the Purchaser, enforceable against Purchaser in accordance with its terms. The Purchaser
has duly executed and delivered this Agreement.

 

Section 3.03 NO CONFLICT

The execution and delivery by Purchaser of
this Agreement and the consummation of the transaction contemplated herein does not and shall not, by the lapse of time, the giving
of notice or otherwise in any way constitute a violation of any law or a breach of any document binding on the Purchaser.

 

Section 3.04 CONSENTS AND APPROVALS

No governmental approvals, notifications, filings
or registrations to or with any governmental authority or any other person is or will be necessary for the valid execution and
delivery by Seller or Company of this Agreement, including the closing documents for the consummation of the transactions contemplated
herein. or the enforceability hereof other than those which have been obtained or made and arc in full force and effect.

 

ARTICLE IV

CONTINGENCIES

 

Section 4.01 DUE DILIGENCE 

This Agreement and the Purchaser's obligation
to close. are contingent upon the Purchaser's approval of the condition of the Company on or prior to the date that is five (5)
days after the full execution hereof unless sooner waived by Purchaser (the "Due Diligence Period"). During the Due Diligence
Period. Purchaser shall have the right to inspect the Company and to conduct such investigations of the Company and its business
operations, as may be necessary, at its sole cost and expense during normal business hours in cooperation with one or representative(s)
of the Seller and acting reasonably. Without limitation of the foregoing, Purchaser or Purchaser's accountants or both may review
the financial data of Seller reasonably requested by Purchaser, and all contracts of the Company. If Purchaser does not approve
the condition of the Company, Purchaser shall give Seller a notice of disapproval (the 'Notice of Disapproval-) before
expiration of the Due Diligence Period, in which event this Agreement shall be deemed terminated and null and void and the Purchaser's
deposit shall be returned to it without interest or deduction. If no Notice of Disapproval shall have been received by the Seller
or otherwise by the Seller's attorney by the close of business on the final day of the Due Diligence Period, the Purchaser shall
be deemed to have accepted the condition of the Company in every respect and this Agreement shall become final and binding on the
Parties in accordance with its terms.

 

    	7

    	 

    

 

ARTICLE V 

 

COVENANTS

 

Section 5.01 FURTHER ASSURANCES 

The Parties agree that from time to time. whether
before, at or after the Closing, each of them will take such other action as reasonably necessary to

 

	a.		furnish, upon request to each other. such information as either may reasonably request:

	b.		execute, acknowledge and deliver such contracts, deeds, or other documents as may
be reasonably requested and necessary or appropriate to carry out the purposes and intent of this Agreement; or

	c.		to effect or evidence the transfer to the Purchaser of the Shares held by or in the
name of the Seller.

 

Section 5.02 CONDUCT OF BUSINESS 

The Seller and the Company, except as otherwise
specifically set forth herein, from the date of execution of this Agreement to immediately prior to the Closing or earlier termination
of this Agreement, shall (a) not take or perform any act or refrain from performing any act which would have resulted in a breach
of the representations and warranties set forth in Article II; (b) not enter into any agreement, or extend an existing agreement
that will survive after the Closing, outside the ordinary course of business; (c) not sell, pledge, lease, license or otherwise
transfer any assets or properties, including without limiting the foregoing, all of the telephone and fax numbers, domain names
and intellectual property of the Company: (d) not incur any liabilities, pledge, sell or dispose of any asset outside of the ordinary
course of business with a value greater than $5.000.00 (excluding accounts receivable, reoccurring trade payables, monthly rent
for the business premises. and inventory in the normal course of business); (e) not make any payments or distributions
of assets or properties to Seller or its shareholder, or the Company, except as may be necessary to make any nonmaterial adjustment
to the Company's pre-Closing Working Capital; and (f) conduct their business only in the ordinary course. and shall not have paid
any bonus or salaries other than which were paid in the ordinary course and approved prior to the parties' execution of this Agreement.

    	8

    	 

    

 

 

Section 5.03 PUBLIC ANNOUNCEMENTS

Except as required by law, without the prior
written approval of the other party, neither Party will issue, or permit any agent or affiliate thereof to issue, any press release
or otherwise make or permit any agent or affiliate thereof to make, any public statement or announcement with respect to this Agreement
or the transactions contemplated herein.

 

Section 5.04 CONSULTING Intentionally Deleted. 

 

ARTICLE VI

CONDITIONS

 

Section 6.01 CONDITIONS TO OBLIGATIONS OF EACH OF THE PARTIES

The respective obligations of each party to
consummate the transactions contemplated hereby shall be subject to the fulfillment at or prior to the Closing of the following
conditions:

 

	a.		no preliminary or permanent injunction or other order, decree or ruling which prevents
the consummation of the transactions contemplated by this Agreement shall have been issued and remain in effect;

	b.		no claim shall have been asserted, threatened or commenced and no law shall have been
enacted, promulgated or issued which would reasonably be expected to

	(i)		prohibit the purchase of, payment for or retention of the Shares by Purchaser or the
consummation of the transactions contemplated by this Agreement or

	(ii)		make the consummation of any such transactions illegal; and

	c.		all approvals, if any, legally required for the consummation of the transactions contemplated
by this Agreement shall have been obtained and be in full force and effect at the Closing.

 

    	9

    	 

    

 

Section 6.02 CONDITIONS PRECEDENT TO SELLER OBLIGATIONS TO CLOSE

The obligations of Seller to consummate the
transactions contemplated hereby shall be subject to the fulfillment at or prior to the Closing Date of the following additional
conditions, except as Seller may waive in writing:

 

	a.		Purchaser shall have complied with and performed in all material respects all of the
terms, covenants, agreements and conditions contained in this Agreement which are required to be complied with and performed on
or prior to Closing; and

	b.		the representations and warranties of Purchaser in this Agreement shall have been
true and correct on the date hereof and such representations and warranties shall be true and correct on and at the Closing (except
those, if any, expressly stated to be true and correct at an earlier date), with the same force and effect as though such representations
and warranties had been made on and at the Closing.

 

Section 6.03 CONDITIONS PRECEDENT TO OBLIGATIONS OF PURCHASER

The obligations of Purchaser to consummate
the transactions contemplated herein shall be subject to the fulfillment at or prior to Closing of the following additional conditions,
except as Purchaser may waive in writing:

 

	a.		the Seller and the Company shall have complied with and performed in all material
respects all of the terms, covenants, agreements and conditions contained in this Agreement which are required to be complied
with and performed on or prior to Closing; and

	b.		the representations and warranties of Seller and the Company in this Agreement shall
have been true and correct on the date hereof and such representations and warranties shall be true and correct on and at the
Closing (except those, if any, expressly stated to be true and correct at an earlier date), with the same force and effect as
though such representations and warranties had been made on and at the Closing.

 

Section 6.04 EXISTING BUSINESS PREMISES
AND EMPLOYEES

The Purchaser may move the business of the
Company to Chicago, Illinois on or after the Closing. The Purchaser shall have responsibility for the Company's existing business
premises, located at 2000 E. Oakley Park Road. Suite #101, (the "Premises") for the period from the day after the Closing
to March 31, 2014, being the last day of the existing lease, or thereafter if Purchaser shall fail to vacate the Premises in a
timely fashion. Purchaser shall discharge any and all remaining obligations that the Company may have to its landlord or otherwise
arising under its lease with the landlord, and any and all costs associated with terminating such lease shall be paid by Purchaser.
Seller shall be responsible for all payroll costs through and including the date of Closing.

 

    	10

    	 

    

 

ARTICLE VII

 

INDEMNIFICATION

 

Section 7.01 INDEMNIFICATION OF SELLER 

Subject to the terms and conditions of this
Article 7 and subject to paragraph 6.04 herein, Purchaser agrees to indemnify, defend and hold harmless Seller. from and against
any and all claims, liabilities and losses, including without limitation, reasonable attorney's fees, which may be imposed on,
incurred by or asserted against, arising out of or resulting from. directly or indirectly:

 

	a.		the material inaccuracy of any representation or breach of any covenant or warranty
of Purchaser contained in or made pursuant to this Agreement which was not disclosed to Seller in writing prior to the Closing;
provided that no such notification shall be deemed to waive or abrogate any right of Seller with respect to conditions
to Closing in Section 6.01;

	b.		the breach of any covenant or agreement of Purchaser contained in this Agreement;
or

	c.		any claim to fees or costs for alleged services by a broker, agent, finder or other
person claiming to act in a similar capacity at the request of Purchaser in connection with this Agreement; provided, however,
that Purchaser shall not be liable for any portion of any claims, liabilities or losses resulting from a material breach by
Seller. of any of its obligations under this Agreement or from Seller's negligence, fraud or willful misconduct.

 

Section 7.02 INDEMNIFICATION OF PURCHASER

Subject to the terms and conditions of this
Article 7, from and after the Closing, Seller agrees to indemnify, defend and hold harmless the Purchaser from and against any
and all claims, liabilities and losses, including without limitation, reasonable attorney's fees, which may be imposed on, incurred
by or asserted against any Purchaser arising out of or resulting from, directly or indirectly:

 

	a.		the material inaccuracy of any representation or breach of any covenant or warranty
of the Seller or the Company contained in or made pursuant to this Agreement which was not disclosed to Purchaser in writing prior
to the Closing: provided that no such notification shall be deemed to waive or abrogate any right of Purchaser with respect
to conditions to Closing in Section 6.02:

	b.		the breach of any covenant or agreement of Seller or the Company contained in this
Agreement:

	c.		the conduct of the business of the Company prior to the Closing except for liabilities
of the Company in the normal course not to exceed $50.000.00. For the purpose of this transaction "deferred revenue' will
not be considered as liability: or

	d.		any claim to fees or costs for alleged services rendered by a broker, agent, finder
or other person claiming to act in a similar capacity at the request of the Seller in connection with this Agreement; provided,
however, that Seller and the Company shall not be liable for any portion of any claims, liabilities
or losses resulting from a material breach by Purchaser of its obligations under this Agreement or from Purchaser's negligence,
fraud or willful misconduct.

 

    	11

    	 

    

 

ARTICLE VIII

 

RESTRICTIVE COVENANTS 

 

Section 8.01 NONDISCLOSURE OF PROPRIETARY PROPERTY

As a material part of the consideration given and received by the parties:

 

	a.		Seller and Shareholder, jointly and severally among Seller and Shareholder and by
and between Shareholders, acknowledge and agree that in the course of ownership of the Company that Seller and Shareholder have
acquired and/or the Company has and will continue to provide both Seller and Shareholder with, or access to information regarding
the business, procedures, activities and services of the Company, including but not limited to, memorandum, files, forms, techniques,
methods and procedures, programs, customer accounts and customer lists, supplier lists, costs and prices of the Company, and customer
needs, requirements and business affairs (hereinafter referred to collectively as the -Proprietary Property-)
as is necessary or desirable to assist him in his activities on behalf of the Company.

	b.		Seller and Shareholder hereby acknowledge that the Proprietary Property is the sole
and exclusive property of the Company that the Proprietary Property is a valuable, special and unique asset of the business of
the Company, developed at considerable expense to the Company. and is not available to the public at large or other persons engaging
in businesses which are the same as or similar to the business of the Company.

	c.		Seller and Shareholder covenant and agree that each shall not for a period of one
(1) year, communicate or divulge to, or use for the benefit of itself or any other person, firm, association or corporation, any
information in any way relating to the Proprietary Property, in competition with the business of the Company.

 

Section 8.02 COVENANT NOT TO COMPETE 

As a material part of the consideration given and
received by the parties:

 

	a.		Seller and Shareholder, jointly and severally among Seller and
                                                                                                                  Shareholder and by and between Shareholders, expressly covenant and agree that for a period of one (1) year, Seller will
                                                                                                                  not engage in any business or perform any service, directly or indirectly. in competition with the business of the Company,
                                                                                                                  or have any interest, whether as proprietor, partner, employee, stockholder, principal, agent, consultant, director, officer,
                                                                                                                  or in any other capacity or manner whatsoever, in any enterprise that shall engage in the
                                                                                                                  business of the Company, except through publicly-traded shares of a mutual fund and major stock exchange.

 

    	12

    	 

    

 

	b.		In furtherance of the foregoing and not in limitation thereof. Seller and Shareholder
agree that for a period of one (I) year, Seller and Shareholder shall not (aa) directly or indirectly, solicit or service in any
way. on behalf of itself or on behalf of or in conjunction with others, any customers, or prospective customers who have been
solicited or serviced by the Company; (bb) directly or indirectly take any action which may induce any customer or divert any
business from the Company; or (cc) directly or indirectly, for himself or any enterprise engaged in competition with the Company,
solicit for employment or employ any employee who is then employed by the Company or who has been employed by the Company within
one (1) year prior to the termination of his employment.

	c.		The covenants on the part of Seller and Shareholder contained in this Article 8 shall
be construed as an agreement independent of any other provision in this Agreement. The existence of any claim or cause of action
of Seller and/or Shareholders against the Company, whether predicated on this Agreement or otherwise shall not constitute a defense
to the enforcement of this Article 8.

	d.		

	(i)		Seller and Shareholder understand that the provisions of Article 8 contain restrictive
covenants and prohibit the disclosure of the Proprietary Property of the Company, agree to the reasonability of said provisions,
and do herewith expressly agree and acknowledge that their breach of this Agreement will not be adequately compensated by money
damages. Seller and Shareholder acknowledge that the restrictions contained in this Agreement are a reasonable and necessary protection
of the legitimate interests of the Company and that any violation of these restrictions would cause substantial irreparable injury
to the Company. Seller and Shareholder acknowledge that Purchaser would not have entered into this Agreement without receiving
the consideration offered by Seller and Shareholder in binding itself to these restrictions.

	(ii)		Seller and Shareholder expressly agree that in the event of any suit which may be
brought by the Company for any violation of the provisions of Article 8. any such breach or threatened breach of Article 8 shall
entitle the Company to any and/or of the following remedies:

	(aa)		an order in any such suit enjoining Seller and Shareholder from violating said provisions.
An order to that effect may be entered at any stage of such litigation. without the requirement to post bond, and any application
for such injunction shall be without prejudice to any other right of action which may accrue to the parties by reason of the breach
or threatened breach of this Agreement; and

 

    	13

    	 

    

 

	(bb)		an order in any such suit providing for monetary damages.

	(iii)		The remedies contained in this Article 8 are cumulative and not exclusive. Nothing
contained in this Agreement shall constitute a waiver by the parties. nor shall the parties be precluded from availing themselves
of any of the rights and remedies available to them in law or in equity.

	(iv)		If any portion or portions of the covenants contained herein shall be, for any reason.
held invalid or unenforceable or deemed to be too excessive and, therefore unenforceable, such portion or portions of the covenant
shall be reinterpreted by the court who shall have made such determination to requalify the limitations provided therein so as
to make the covenant enforceable, so long as to make the covenant enforceable, so long as the modifications to be made therein
will not substantially defeat the original purposes of the parties hereto and the parties hereto agree to be bound by such reinterpretation.

 

ARTICLE IX

 

GENERAL PROVISIONS

Section 9.01 NOTICES 

All notices, consents, waivers, requests and
other communications under this Agreement must be in writing to:

 

	(i) SELLER:		Troy Holdings International, Inc.

Attn: Scott
MacCannell, President

           Ana Misra. Vice President

204-11 Cidermill Avenue

Vaughan. Ontario, L4K 4B6. Canada

E-mail: smaccannellrii;tro‘ine.ca
amisraittrovinc.ca 

 

 

	(ii) WITH A COPY TO:		Mark G. Baker, LL.M.

Baker & Company, Banisters and Solicitors,

3300-130 Adelaide St. West

Toronto, ON

Canada, M5H3P5

Fax Number: (416) 366-3992

Email: mbakerObakerlawyers.com

 

	(iii) PURCHASER:		Epazz, Inc.

Attn: Shaun Passley

 

    	14

    	 

    

 

	:		205 W. Wacker Dr. Suite 1320

Chicago, Illinois 60606

Fax Number: (312) 873-4283

E-mail:
shaun@epazz.net 

	 	 	 
	(iv) WITH A COPY TO	 	Daniel M. Loewenstein

Evans, Loewenstein. Shimanovsky & Moscardini.
Ltd.

130 South Jefferson Street, Suite 350

Chicago, Illinois
60661

Fax Number: (312) 466-0819

E-mail:
dloewenstein4ielsm.com 

 

 

or at such other address or
number as shall be designated by either of the parties in a notice to the other party given in accordance with this Section 9.01.
Except as otherwise provided in this Agreement, all such communications shall be deemed to have been duly given:

 

	a.		in the case of a notice sent by regular or registered or certified mail, three business
days after it is duly deposited in the mails;

	b.		in the case of a notice delivered by hand, when personally delivered;

	c.		in the case of a notice sent by facsimile. upon transmission subject to telephone
confirmation of receipt; and

	d.		in the case of a notice sent by overnight mail or overnight courier service, the next
business day after such notice is mailed or delivered to such courier, in each case given or addressed as aforesaid.

 

Section 9.02 BENEFIT AND BURDEN

This Agreement shall inure
to the benefit of. and shall be binding upon. the parties hereto and their successors and permitted assigns.

 

Section 9.03 NO THIRD PARTY RIGHTS

Nothing in this Agreement shall
be deemed to create any right in any creditor or other person not a party hereto (other than the Purchaser Indemnified Persons)
and this Agreement shall not be construed in any respect to be a contract in whole or in part for the benefit of any third party
(other than the Purchaser Indemnified Persons).

 

Section 9.04 AMENDMENTS AND WAIVER 

No amendment, modification,
restatement or supplement of this Agreement shall be valid unless the same is in writing and signed by the parties hereto. No waiver
of any provision of this Agreement shall be valid unless in writing and signed by the party against whom that waiver is sought
to be enforced.

 

    	15

    	 

    

 

Section 9.05 ASSIGNMENTS 

Purchaser may assign any of its rights, interests
and obligations under this Agreement with the prior written consent and approval of the Seller.

 

Section 9.06 COUNTERPARTS 

This Agreement may be executed in counterparts
and by the different parties in separate counterparts. each of which when so executed shall be deemed an original and all of which
taken together shall constitute one and the same agreement.

 

Section 9.07 CAPTIONS AND HEADINGS 

The captions and headings contained in this
Agreement are inserted and included solely for convenience and shall not be considered or given any effect in construing the provisions
hereof if any question of intent should arise.

 

Section 9.08 CONSTRUCTION 

The parties acknowledge that each of them has
had the benefit of legal counsel of its own choice and has been afforded an opportunity to review this Agreement with its legal
counsel and that this Agreement shall be construed as if jointly drafted by the parties hereto.

 

Section 9.09 SEVERABILITY 

Should any clause, sentence, paragraph. subsection.
Section or Article of this Agreement be judicially declared to be invalid, unenforceable or void, such decision will not have the
effect of invalidating or voiding the remainder of this Agreement. and the parties agree that the part or parts of this Agreement
so held to be invalid. unenforceable or void will be deemed to have been stricken by the parties, and the remainder will have the
same force and effectiveness as if such stricken part or parts had never been included herein.

 

Section 9.10 EFFECT OF FACSIMILE AND PHOTOCOPIED
SIGNATURES

This Agreement may be executed in several counterparts,
each of which is an original. It shall not be necessary in making proof of this Agreement or any counterpart hereof to produce
or account for any of the other counterparts. A copy of this Agreement signed by one party and faxed to another party shall be
deemed to have been executed and delivered by the signing party as though an original. A photocopy of this Agreement shall be effective
as an original for all purposes.

 

Section 9.11 REMEDIES 

The parties agree that the covenants and obligations
contained in this Agreement relate to special, unique and extraordinary matters and that a violation of any of the terms would
cause irreparable injury in an amount which would be impossible to estimate or determine and for which any remedy at law would
be inadequate. As such, the parties agree that if either party fails or refuses to fulfill any of its obligations under this Agreement
or to make any payment or deliver any instrument required then the other party shall have the remedy of specific performance. which
remedy shall be cumulative and nonexclusive and shall be in addition to any other rights and remedies otherwise available under
any' other contract or at law or in equity and to which such party might be entitled including but not limited to breach of contract
and or breach of promissory note.

 

    	16

    	 

    

 

Section 9.12 TIME OF ESSENCE 

The parties agree that with regard to all dates
and time periods set forth in this Agreement, time is of the essence.

 

Section 9.13 GOVERNING LAW 

This agreement and the rights and obligations
of the parties hereunder shall be governed by and construed in accordance with the laws of the State of Illinois. without giving
effect to the conflict of law principles thereof.

 

Section 9.14 JURISDICTION/VENUE 

Each of the parties hereby:

 

	a.		irrevocably submits to the personal jurisdiction of any Illinois court, over any claim
arising out of or relating to this Agreement and irrevocably agrees that any and all such claims may be heard and determined in
such Illinois court, in and for Cook County, and

	b.		irrevocably waives, to the fullest extent permitted by applicable law, any objection
it may now or hereafter have to the venue in any proceeding being brought in a court in the Circuit Court of Cook County, Illinois.

 

Section 9.15 PREVAILING PARTY COSTS 

If any party commences an action against another
party to enforce any of the terms, covenants, conditions or provisions of this Agreement, or because of a breach by a party of
its obligations under this Agreement, the prevailing party in any such action shall be entitled to recover its losses, including
reasonable attorneys' fees, costs and interest incurred in connection with the enforcement of this agreement.

 

Section 9.16 ENTIRE AGREEMENT 

This Agreement sets forth all of the promises,
agreements, conditions, understandings, warranties and representations among the parties with respect to the transactions contemplated
hereby and thereby, and supersedes all prior agreements, arrangements and understandings between the parties, whether written,
oral or otherwise.

 

 

[Remainder of page left intentionally blank.
Signature pace follows.]

    	17

    	 

    

 

 

IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the day and year first above written.

 

	“SELLER”	“COMPANY”
	 	 
	TROY HOLDINGS INTERNATIONAL, INC.	TELECORP PRODUCTS, INC.
	 	 
	By: /s/ Scott MacCannell	By: /s/ Scott MacCannell
	SCOTT MACCANNELL	SCOTT MACCANNELL
	Its: President	Its: Director
	 	 
	By: /s/ Ana Misra	By: /s/ Ana Misra
	Ana Misra	Ana Misra
	Its: VP Finance	Its: Director
	 	 
	‘PURCHASER”	 
	 	 
	EPAZZ, INC.
	 
	 	 
	 	 
	By: /s/ Shaun Passley	 
	Shaun Passley	 
	Its: Chief Executive Officder

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