Document:

Exhibit 4.4

[FORM OF FACE OF CLEARSTREAM/EUROCLEAR REGISTERED

FLOATING RATE GLOBAL MEDIUM-TERM NOTE, SERIES
B]

 

Toyota
Motor Credit Corporation

GLOBAL MEDIUM-TERM NOTE, SERIES B

(Floating Rate) 

 

	REGISTERED	PRINCIPAL OR FACE AMOUNT
	[CUSIP:  ___________________]1	___________________2
	ISIN:  ___________________	 

Common Code: ___________________

[No. [_]]

 

 

 

*** [    ] CHECK IF A PRINCIPAL INDEXED NOTE
*** 

IF CHECKED, CALCULATION AGENT: _____________

 

If this is a Principal Indexed Note, references herein to “principal”
shall be deemed to be the face amount hereof, except that the amount payable upon Maturity of this Note shall be determined in
accordance with the formula or formulas set forth below or in an attached Addendum hereto.

 

 

 

 

 

 

1
If eligible for DTC clearing.

2 Insert Principal or Face Amount with the appropriate
currency

     

     

    

Original Issue Date:

Stated Maturity Date:

 

Initial Interest Rate: 

Interest Payment Dates:

 

Calculation Agent:

 

Interest Calculation:

[    ] Regular Floating Rate Note 

[    ] Inverse Floating Rate Note:

Fixed Interest Rate: 

[    ] Floating Rate/Fixed Rate Note:

Fixed Interest Rate: 

Fixed Rate Commencement Date:

[    ] Other Floating Rate Note 

(See attached Addendum)

 

Interest Rate Basis:

[    ] CMS Rate

[    ] CMT Rate

[    ] Commercial Paper Rate

[    ] Compounded SOFR

[    ] Eleventh District Cost of Funds Rate 

[    ] Federal Funds Rate 

[    ] Federal Funds OIS Compound Rate

[    ] LIBOR 

[    ] Prime Rate

[    ] SOFR 

[    ] Treasury Rate 

[    ] Other (see attached Addendum)

 

If CMS: 

Designated CMS Maturity Index:

 

If CMT:

Designated CMT Maturity Index: 

Designated CMT Reuters Page:

[    ] FRBCMT 

[    ] FEDCMT

 

If LIBOR:

Designated LIBOR Page: 

Index Currency:

 

If LIBOR or Treasury Rate:

Index Maturity:

 

    2 

     

    

Spread (+/-):

Spread Multiplier:

 

Maximum Interest Rate: 

Minimum Interest Rate:

 

Initial Interest Reset Date:

Interest Reset Dates: 

Interest Reset Period:

Interest Rate Reset Cutoff Date: 

Interest Determination Date:

 

Day Count Convention:

[    ] 30/360 

[    ] Actual/360

[    ] Actual/Actual

 

Business Day Convention

[    ] Following 

[    ] Modified Following

 

Redemption:

Redemption Date(s):

Notice of Redemption:

 

Repayment:

Optional Repayment Date(s):

Repayment Price:

 

Original Issue Discount:

Total Amount of Original Issue Discount:

Yield to Maturity:

Initial Accrual Period:

 

Specified Currency:

Minimum Denomination/Minimum Incremental Denomination:

 

If a Reopening Note, check [    ], and specify: 

Initial Interest Accrual Date:

 

Note also represented by DTC Note:

 

Addendum Attached:

[    ] Yes 

[    ] No

 

Other Provisions:

 

    3 

     

    

TOYOTA MOTOR CREDIT
CORPORATION, a California corporation (“Issuer” or the “Company,” which terms include any successor corporation
under the Indenture hereinafter referred to), for value received, hereby promises to pay to BT Globenet Nominees Ltd, or registered
assigns, the Principal or Face Amount specified above, or if this is a Principal Indexed Note, the principal amount as determined
in accordance with the terms set forth under “Other Provisions” above and/or in an Addendum attached hereto, on the
Stated Maturity Date specified above (except to the extent redeemed or repaid prior to the Stated Maturity Date), and to pay interest
on the Principal or Face Amount hereof as set forth above, at a rate per annum equal to the Initial Interest Rate specified above
until the Initial Interest Reset Date specified above and thereafter at a rate per annum determined in accordance with the provisions
hereof and any Addendum relating hereto depending upon the Interest Rate Basis or Bases, if any, and such other terms specified
above, until the principal hereof is paid or duly made available for payment.

 

Unless otherwise specified
in an Addendum hereto, Deutsche Bank Trust Company Americas will act as the Company’s paying agent and will make all payments
of principal, premium, if any, and interest on the Note on the Company’s behalf. Payment of the principal of this Note, any
premium and the interest due at Maturity (as defined below) will be made upon surrender of this Note at the office or agency of
such paying agent or at the office or agency of such other paying agent as the Company may determine.

 

Interest on this Note
will accrue from and including the Original Issue Date specified above, at the rates determined from time to time as specified
herein, until the principal hereof has been paid or made available for payment. The Company shall pay interest on each Interest
Payment Date specified above, commencing on the first Interest Payment Date following the Original Issue Date, and on the Stated
Maturity Date or any Redemption Date or Optional Repayment Date (if specified as repayable at the option of the Holder in an attached
Addendum) (the date of each such Stated Maturity Date, Redemption Date and Optional Repayment Date and the date on which principal
or an installment of principal is due and payable by declaration of acceleration or otherwise pursuant to the Indenture being referred
to hereinafter as a “Maturity” with respect to principal payable on such date); provided, however, that
if the Original Issue Date is between a Regular Record Date (as defined below) and the next succeeding Interest Payment Date, interest
payments will commence on the second Interest Payment Date following the Original Issue Date; and provided further, unless
otherwise specified in an Addendum attached hereto, that if “Following” is specified above under Business Day Convention,
if an Interest Payment Date (other than an Interest Payment Date at Maturity) would fall on a day that is not a Business Day (this
and certain other capitalized terms used herein are defined on the reverse of the Note), such Interest Payment Date will be the
next succeeding day that is a Business Day (the “Following Business Day Convention”), and if “Modified Following”
is specified above under Business Day Convention, if an Interest Payment Date (other than an Interest Payment Date at Maturity)
would fall on a day that is not a Business Day, such Interest Payment Date will be the following day that is a Business Day unless
such next Business Day falls in the next calendar month, in which case such Interest Payment Date will be the immediately preceding
day that is a Business Day (the “Modified Following Business Day Convention”). Unless otherwise specified above, the
“Regular Record Date” (i) if held in global book-entry only form, will be at the close of business on the date that
is one Business Day immediately preceding the related Interest Payment Date or (ii) if held in definitive form, will be

 

    4 

     

    

 

the fifteenth calendar
day (whether or not a Business Day) immediately preceding the related Interest Payment Date.

 

If the Maturity falls
on a day which is not a Business Day, the payment due on such Maturity will be paid on the next succeeding Business Day with the
same force and effect as if made on such Maturity and no interest will accrue with respect to such payment for the period from
and after such Maturity. The interest so payable and punctually paid or duly provided for on any Interest Payment Date will, as
provided in the Indenture, be paid to the Person in whose name this Note (or one or more Predecessor Securities) is registered
at the close of business on the Regular Record Date for such Interest Payment Date. Any such interest which is payable, but not
punctually paid or duly provided for on any Interest Payment Date (herein called “Defaulted Interest”), will forthwith
cease to be payable to the registered Holder on such Regular Record Date, and may be paid to the Person in whose name this Note
(or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such
Defaulted Interest or at any time in any other lawful manner, as more fully provided in the Indenture. A Special Record Date shall
be fixed by the Trustee and notice thereof shall be given to the Holder of this Note not less than 10 days prior to such Special
Record Date.

 

Unless otherwise specified
under Specified Currency above and/or in an Addendum attached hereto, this Note will be denominated in U.S. dollars and payments
of principal, premium and interest, if any, on this Note will be made in U.S. dollars or in such coin or currency of the United
States as at the time of payment is legal tender for payments of public and private debts. If this Note is not denominated in U.S.
dollars or if the principal, premium or interest, if any, on this Note is payable in or by reference to a currency or in amounts
determined by reference to one or more currencies other than that in which this Note is denominated, any other applicable provisions
will be included in an Addendum attached hereto. However, unless otherwise specified in an Addendum attached hereto, if any payment
in respect of this Note is required to be made in a currency other than U.S. dollars and such currency is unavailable to the Company
due to the imposition of exchange controls or other circumstances beyond its control or is no longer used by the relevant government
or for the settlement of transactions within the international banking community, then all payments in respect of this Note will
be made in U.S. dollars until such currency is again available to the Company or so used. The amounts payable on any date in such
currency will be converted into U.S. dollars on the basis of the most recently available market exchange rate for such currency
or as otherwise indicated in an Addendum attached hereto. Any payment so made in U.S. dollars will not constitute an Event of Default
under the Indenture. If the Company cannot make payment in the Specified Currency indicated above solely because that currency
has been replaced by the euro, then, beginning with the date the replacement becomes effective, the Company will be able to satisfy
its obligations under this Note by making payment in euro.

 

Reference is hereby
made to the further provisions of this Note set forth on the reverse hereof, which further provisions shall for all purposes have
the same effect as if set forth at this place.

 

Unless signed pursuant
to the terms of the Indenture, this Note will not be entitled to any benefit under the Indenture or be valid or obligatory for
any purpose.

 

    5 

     

    

[FORM OF REVERSE OF NOTE]

 

This Note is one of
a duly authorized series of Securities (hereinafter called the “Securities”) of the Company designated as its Medium-Term
Notes, Series B (the “Notes”). The Notes are issued and to be issued under an Indenture, dated as of August 1, 1991,
between the Company and The Bank of New York Mellon Trust Company, N.A., as amended and supplemented by the First Supplemental
Indenture, dated as of October 1, 1991, among the Company, The Bank of New York Mellon Trust Company, N.A. and Deutsche Bank Trust
Company Americas, formerly known as Bankers Trust Company, the Second Supplemental Indenture, dated as of March 31, 2004, among
the Company, The Bank of New York Mellon Trust Company, N.A. and Deutsche Bank Trust Company Americas and the Third Supplemental
Indenture, dated as of March 8, 2011, among the Company, The Bank of New York Mellon Trust Company, N.A. and Deutsche Bank Trust
Company Americas (collectively, the “Indenture”), to which Indenture, and all indentures supplemental thereto, reference
is hereby made for a statement of the respective rights thereunder of the Company, the Trustee (as defined below) and the Holders
of the Notes, and the terms upon which the Notes are to be authenticated and delivered. Deutsche Bank Trust Company Americas shall
act as Trustee with respect to the Notes (herein called the “Trustee,” which term includes any successor Trustee with
respect to the Notes under the Indenture) and, unless otherwise specified in an Addendum attached hereto, as registrar for the
Notes. The terms of individual Notes may vary with respect to interest rates or interest rate formulas, issue dates, maturity,
redemption, repayment, currency of payment and otherwise.

 

This Note is not subject
to any sinking fund and will not be redeemable or subject to repayment at the option of the Holder prior to the Stated Maturity
Date, except as provided below.

 

Unless otherwise indicated
on the face of this Note, this Note may not be redeemed prior to the Stated Maturity Date. If so provided above, this Note may
be redeemed by the Company on any Redemption Date specified above, in whole or in part, in integral multiples of the Minimum Incremental
Denomination specified above, (unless specified otherwise in an Addendum attached hereto, and provided that any remaining principal
hereof shall be at least equal to the Minimum Denomination specified above) at the option of the Company at the applicable Redemption
Price (as defined below) together with accrued interest hereon at the applicable rate payable to the applicable Redemption Date,
upon written Notice of Redemption specified above or such other notice specified in an Addendum attached hereto. In the event of
redemption of this Note in part only, a new Note for the unredeemed portion hereof shall be issued in the name of the Holder hereof
upon the surrender hereof. Unless otherwise specified in an Addendum attached hereto, the “Redemption Price” will be
100% of the principal amount of this Note.

 

Unless otherwise specified
in an Addendum attached hereto, this Note is not subject to repayment at the option of the Holder. If this Note shall be repayable
at the option of the Holder as specified in an Addendum attached hereto, unless otherwise specified in such Addendum, on any Optional
Repayment Date, this Note shall be repayable in whole or in part in integral multiples of the Minimum Incremental Denomination
specified above (unless specified otherwise in an Addendum attached hereto, and provided that any remaining principal hereof

 

    6 

     

    

shall
be at least equal to the Minimum Denomination specified above) at the option of the Holder hereof at a repayment price equal to
100% of the principal amount to be repaid, together with interest thereon payable to the date of repayment. If specified as repayable
at the option of the Holder in such Addendum, for this Note to be repaid in whole or in part at the option of the Holder hereof,
this Note must be received, with the form entitled “Option to Elect Repayment” below duly completed, by the Trustee
at its Corporate Trust Office, or such address which the Company shall from time to time notify the Holders of the Notes, not
more than 15 nor less than 10 days prior to the related Optional Repayment Date or such other time as is specified in an Addendum
attached hereto. Exercise of such repayment option by the Holder hereof will be irrevocable.

 

This Note is unsecured
and ranks equally with the other unsecured and unsubordinated indebtedness of the Company.

 

The interest rate borne by this Note will
be determined as follows:

 

1.       If
this Note is designated as a Regular Floating Rate Note, then, except as described below, this Note will bear interest at the rate
determined by reference to the applicable Interest Rate Basis or Bases designated above (i) plus or minus the applicable Spread,
if any, and/or (ii) multiplied by the applicable Spread Multiplier, if any, specified and applied in the manner described above.
The interest rate in effect for the period from the Original Issue Date to the Initial Interest Reset Date will be the Initial
Interest Rate. Commencing on the Initial Interest Reset Date, the rate at which interest on this Note is payable will be reset
as of each Interest Reset Date specified above.

 

2.       If
this Note is designated as a Floating Rate/Fixed Rate Note, then, except as described below, this Note will bear interest at the
rate determined by reference to the applicable Interest Rate Basis or Bases shown above (i) plus or minus the applicable Spread,
if any, and/or (ii) multiplied by the applicable Spread Multiplier, if any, specified and applied in the manner described above.
The interest rate in effect for the period from the Original Issue Date to the Initial Interest Reset Date will be the Initial
Interest Rate. Commencing on the Initial Interest Reset Date, the rate at which interest on this Note is payable will be reset
as of each Interest Reset Date until the date on which interest begins to accrue on a fixed rate basis. Unless specified on the
face hereof, the interest rate in effect commencing on, and including, the Fixed Rate Commencement Date to Maturity will be the
Fixed Interest Rate, if such a rate is specified above, or, if no such Fixed Interest Rate is so specified, the interest rate in
effect on the day immediately preceding the Fixed Rate Commencement Date.

 

3.       If
this Note is designated as an Inverse Floating Rate Note, then, except as described below, this Note will bear interest equal to
the Fixed Interest Rate indicated above minus the rate determined by reference to the applicable Interest Rate Basis or Bases shown
above (i) plus or minus the applicable Spread, if any, and/or (ii) multiplied by the applicable Spread Multiplier, if any, specified
and applied in the manner described above; provided, however, that the interest rate hereon will not be less than
zero unless otherwise specified in an Addendum attached hereto. The interest rate in effect for the period from the Original Issue
Date to the Initial Interest Reset Date will be the Initial

 

    7 

     

    

Interest
Rate. Commencing on the Initial Reset Date, the rate at which interest on this Note is payable will be reset as of each Interest
Reset Date specified above.

 

4.       Notwithstanding
the foregoing, if this Note is designated above as having an Addendum attached, the Note will bear interest in accordance with
the terms described in such Addendum. If interest on this Note is to be calculated in accordance with the terms of an attached
Addendum, unless otherwise specified in such Addendum, the interest rate in effect for the period from the Original Issue Date
to the Initial Interest Reset Date will be the Initial Interest Rate and commencing on the Initial Interest Reset Date, the rate
at which interest on this Note is payable will be reset as of each Interest Reset Date specified above.

 

Unless otherwise specified
on the face hereof and/or in an Addendum attached hereto, the “Interest Reset Date” for Notes that reset will be as
follows: if daily, each Business Day; if weekly, the Wednesday of each week, with the exception of weekly reset Notes as to which
the Treasury Rate is an applicable Interest Rate Basis, which will reset the Tuesday of each week; if monthly, the third Wednesday
of each month, with the exception of Notes as to which the Eleventh District Cost of Funds Rate Notes is an applicable Interest
Rate Basis, which will reset on the first calendar day of the month; if quarterly, the third Wednesday of March, June, September
and December of each year; if semiannually, the third Wednesday of the two months specified above; and if annually, the third Wednesday
of the month specified above, provided, however, that, for Floating Rate/Fixed Rate Notes, the interest rate will
not reset after the Fixed Rate Commencement Date.

 

Unless otherwise specified
in an Addendum attached hereto, if “Following” is specified above under Business Day Convention, if any Interest Reset
Date (which term includes the Initial Interest Reset Date unless the context otherwise requires) would otherwise be a day that
is not a Business Day, such Interest Reset Date will follow the Following Business Day Convention, and if “Modified Following”
is specified above under Business Day Convention, if any Interest Reset Date (which term includes the Initial Interest Reset Date
unless the context otherwise requires) would otherwise be a day that is not a Business Day, such Interest Reset Date will follow
the Modified Following Business Day Convention.

 

Except as provided
above, in an Addendum attached hereto or after giving effect to an Interest Rate Reset Cutoff Date as provided below, the interest
rate in effect on each day will be (a) if such day is an Interest Reset Date, the interest rate determined on the related Interest
Determination Date (as defined below) immediately preceding such Interest Reset Date or (b) if such day is not an Interest Reset
Date, the interest rate determined on the related Interest Determination Date immediately preceding the most recent Interest Reset
Date.

 

Unless otherwise specified
in an Addendum attached hereto, if an “Interest Rate Reset Cutoff Date” is specified on the face hereof, beginning
on the Interest Rate Reset Cutoff Date, the interest rate for this Note on each day from and including the Interest Rate Reset
Cutoff Date to but excluding the next Interest Payment Date will be determined based on the Interest Rate Basis in effect on the
Interest Rate Reset Cutoff Date.

 

    8 

     

    

Notwithstanding the
foregoing, the interest rate hereon will not be greater than the Maximum Interest Rate, if any, or less than the Minimum Interest
Rate, if any, specified on the face hereof. The Calculation Agent shall calculate the interest rate hereon in accordance with the
foregoing on or before each Calculation Date. The interest rate on this Note will in no event be higher than the maximum rate permitted
by New York law, as the same may be modified by United States law of general application.

 

Interest payments on
this Note on any Interest Payment Date will equal the amount of interest accrued from and including the immediately preceding Interest
Payment Date in respect of which interest has been paid (or from and including the Original Issue Date, if no interest has been
paid), to but excluding the related Interest Payment Date; provided, however, that the interest payments on Maturity
will include interest accrued to but excluding such Maturity.

 

Unless otherwise specified
in an Addendum attached hereto, this Note will accrue interest on an “Actual/360” basis, an “Actual/Actual”
basis, or a “30/360” basis, as specified on the face hereof, in each case, from the period from the Original Issue
Date to the date of Maturity. If no interest basis is specified in an Addendum attached hereto, interest on this Note will be paid
on an “Actual/360” basis. If this Note is calculated on an Actual/360 basis or an Actual/Actual basis, accrued interest
for each Interest Calculation Period, as defined below, will be calculated by multiplying:

 

		1.	the face amount of this Note;

 

		2.	the applicable interest rate; and

 

		3.	the actual number of days in the related Interest Calculation Period

 

and dividing the resulting product by 360
or 365, as applicable; or with respect to an Actual/Actual basis Note, if any portion of the related Interest Calculation Period
falls in a leap year, the product of (1) and (2) above will be multiplied by the sum of:

 

		•	the actual number of days in that portion of the related Interest Calculation Period falling in a leap year divided by 366,
and

 

		•	the actual number of days in that portion of the related Interest Calculation Period falling in a non-leap year divided by
365.

 

If this Note is calculated
on a 30/360 basis, accrued interest for an Interest Calculation Period will be computed on the basis of a 360-day year of twelve
30-day months, irrespective of how many days are actually in such Interest Calculation Period. Unless otherwise specified above
and/or in an Addendum attached hereto, if this Note accrues interest on a 30/360 basis, if any Interest Payment Date or the Maturity
falls on a day that is not a Business Day, the related payment of principal or interest will be made on the next succeeding Business
Day as if made on the date such payment was due, and no interest will accrue on the amount payable for the period from and after
such Interest Payment Date or Maturity, as the case may be.

 

    9 

     

    

As used herein, “Interest
Calculation Period” means with respect to any period, the period from and including the most recent Interest Reset Date (or
from and including the Original Issue Date in the case of the first Interest Reset Date), to but excluding the next succeeding
Interest Reset Date for which accrued interest is being calculated.

 

Unless otherwise specified
on the face hereof, interest with respect to Notes for which the interest rate is calculated with reference to two or more Interest
Rate Bases will be calculated in the same manner as if only one of the applicable Interest Rate Bases applied.

 

Unless otherwise specified
above, the “Interest Determination Date” with respect to the CMS Rate, the CMT Rate, the Commercial Paper Rate and
the Prime Rate will be the second Business Day preceding each Interest Reset Date; the “Interest Determination Date”
with respect to Compounded SOFR and SOFR will be the second U.S. Government Securities Business Day preceding each Interest Reset
Date; the “Interest Determination Date” for the Federal Funds Rate will be the date specified above which shall be
the same day as the Interest Reset Date or the first Business Day preceding each Interest Reset Date; the “Interest Determination
Date” with respect to the Federal Funds OIS Compound Rate will be the same day as each Interest Reset Date; the “Interest
Determination Date” with respect to the Eleventh District Cost of Funds Rate will be the last working day of the month immediately
preceding each Interest Reset Date on which the Federal Home Loan Bank of San Francisco publishes the Index (as defined below);
the “Interest Determination Date” with respect to LIBOR will be the second London Banking Day (as defined below) preceding
each Interest Reset Date; the “Interest Determination Date” with respect to the Treasury Rate will be the day in the
week in which the related Interest Reset Date falls on which day Treasury Bills (as defined below) are normally auctioned; provided,
however, that if an auction is not held on Monday or Tuesday of the week in which the Interest Reset Date falls and an auction
is held on the Friday of the week preceding the related Interest Reset Date, the related Interest Determination Date will be such
preceding Friday. If the interest rate of this Note is determined with reference to two or more Interest Rate Bases, the Interest
Determination Date pertaining to this Note will be the most recent Business Day which is at least two Business Days prior to such
Interest Reset Date on which each Interest Rate Basis is determinable; and each Interest Rate Basis will be determined and compared
on such date, and the applicable interest rate will take effect on the related Interest Reset Date.

 

Unless otherwise specified
above, the “Calculation Date” pertaining to any Interest Determination Date will be the earlier of (i) the tenth calendar
day after such Interest Determination Date or, if such day is not a Business Day, the next succeeding Business Day, or (ii) the
Business Day preceding the applicable Interest Payment Date or date of Maturity, as the case may be. All calculations on this Note
will be made by the Calculation Agent specified above or such successor thereto as is duly appointed by the Company.

 

Unless otherwise specified
above, all percentages resulting from any calculation of interest on this Note will be rounded to the nearest one hundred-thousandth
of a percentage point, with five one-millionths of a percentage point rounded upwards (e.g., 9.876545% (or .09876545) would
be rounded to 9.87655% (or .0987655)), and all dollar amounts used in or resulting from such calculation will be rounded to the
nearest cent (with one-half cent being rounded upward).

 

    10 

     

    

Determination of
CMS Rate. Unless otherwise specified in an Addendum attached hereto, if CMS Rate is designated as an Interest Rate Basis for
this Note, the CMS Rate is the rate on the applicable Interest Determination Date for U.S. dollar swaps having the Designated CMS
Maturity Index specified above, expressed as a percentage, which appears on the Reuters Screen ICESWAP1 Page or any Successor Source
as of 11:00 A.M., New York City time.

 

If the rate referred
to in the preceding sentence is no longer published on the relevant page, or if not published by 3:00 P.M., New York City time,
on the related Calculation Date, then the CMS Rate on the applicable Interest Determination Date will be a percentage determined
on the basis of the mid-market semi-annual swap rate quotations provided by the five leading swap dealers in the New York City
interbank market selected by the Calculation Agent (after consultation with the Company) as of approximately 11:00 A.M., New York
City time on the related Interest Determination Date. For this purpose, the semi-annual swap rate means the mean of the bid and
offered rates for the semi-annual fixed leg, calculated on a 30/360 day count basis, of a fixed-for-floating U.S. Dollar interest
rate swap transaction having the Designated CMS Maturity Index specified on the face hereof in an amount that is representative
for a single transaction in that market at the time with an acknowledged dealer of good credit in the swap market, where the floating
leg, calculated on an Actual/360 day count basis, is equivalent to USD-LIBOR-ICE with a designated maturity of three months. The
Calculation Agent shall request the principal New York City office of each of the swap dealers to provide a quotation of this rate.
If at least three quotations are provided, the rate will be the arithmetic mean of the quotations, eliminating the highest quotation
(or, in the event of equality, one of the highest) and the lowest quotation (or, in the event of equality, one of the lowest).
If fewer than three swap dealers selected by the Calculation Agent are quoting as referred to in the preceding sentence, the CMS
Rate will be the rate in effect on the applicable Interest Determination Date.

 

“Designated CMS
Maturity Index” means the original period to maturity of the CMS Rate specified in an Addendum attached hereto with respect
to which the CMS Rate will be calculated.

 

“Successor Source”
means, in relation to any display page, other published source, information vendor or provider: (i) the successor display page,
other published source, information vendor or provider that has been officially designated by the sponsor of the original page
or source; or (ii) if the sponsor has not officially designated a successor display page, other published source, information vendor
or provider (as the case may be), the successor display page, other published source, information vendor or provider, if any, designated
by the relevant information vendor or provider (if different from the sponsor).

 

Determination of
CMT Rate. Unless otherwise specified in an Addendum attached hereto, if CMT Rate is designated as an Interest Rate Basis for
this Note, the CMT Rate on the applicable Interest Determination Date will be any of the following rates published by the Federal
Reserve System Board of Governors as the yield is displayed for Treasury securities at “constant maturity” under the
column for the Designated CMT Maturity Index, as defined below, for: the rate on that applicable Interest Determination Date, if
the Designated CMT Reuters Page specified above is FRBCMT or any Successor Source; and the week or the month, as applicable, ended
immediately preceding the week in which the related Interest Determination Date occurs, if the Designated CMT Reuters Page specified
above is FEDCMT or any Successor Source.

 

    11 

     

    

If the rate referred
to in the preceding sentence is no longer displayed on the relevant page, or if not published by 3:00 P.M., New York City time,
on the related Calculation Date, then the CMT Rate will be the “Treasury constant maturities” rate for the Designated
CMT Maturity Index or other U.S. Treasury rate for the Designated CMT Maturity Index on the applicable Interest Determination Date
for the related Interest Reset Date as may then be published by either the Board of Governors of the Federal Reserve System or
the United States Department of the Treasury that the Calculation Agent determines to be comparable to the rate formerly displayed
on the Designated CMT Reuters Page and published on the website of the Federal Reserve System Board of Governors or in another
recognized electronic source. If the information described in the preceding sentence is not so published by 3:00 P.M., New York
City time, on the related Calculation Date, then the CMT Rate for the applicable Interest Determination Date will be calculated
by the Calculation Agent as a yield to maturity, based on the arithmetic mean of the secondary market closing offer side prices
as of approximately 3:30 P.M., New York City time, on the applicable Interest Determination Date, of three leading primary United
States government securities dealers in New York City selected by the Calculation Agent (after consultation with the Company) (each,
a “Reference Dealer”) from five such dealers and eliminating the highest quotation (or, in the event of equality, one
of the highest) and the lowest quotation (or, in the event of equality, one of the lowest) for the most recently issued direct
noncallable fixed rate obligations of the United States, which are commonly referred to as “Treasury notes,” with an
original maturity equal to the Designated CMT Maturity Index specified in an Addendum attached hereto, a remaining term to maturity
no more than one year shorter than the Designated CMT Maturity Index and in a principal amount that is representative for a single
transaction in that market at that time. If two Treasury notes with an original maturity as described above have remaining terms
to maturity equally close to the Designated CMT Maturity Index, the quotes for the Treasury note with the shorter remaining term
to maturity will be used.

 

If the Calculation
Agent cannot obtain three Treasury notes quotations as described in the immediately preceding paragraph, the Calculation Agent
will determine the CMT Rate to be a yield to maturity based on the arithmetic mean of the secondary market offer side prices as
of approximately 3:30 P.M., New York City time, on the applicable Interest Determination Date of three Reference Dealers, selected
using the same method described in the immediately preceding paragraph, for Treasury notes with an original maturity equal to the
number of years closest to but not less than the Designated CMT Maturity Index and a remaining term to maturity closest to the
Designated CMT Maturity Index and in a principal amount that is representative for a single transaction in the securities in that
market at that time. If fewer than five but more than two, of the Reference Dealers are quoting as described in the preceding sentence,
then the CMT Rate will be based on the arithmetic mean of the offer prices obtained and neither the highest nor the lowest of those
quotes will be eliminated. If fewer than three Reference Dealers selected by the Calculation Agent are quoting as described in
the preceding sentence, the CMT Rate for that applicable Interest Determination Date will remain the CMT Rate for the immediately
preceding Interest Reset Period, or, if there was no Interest Reset Period, the rate of interest payable will be the Initial Interest
Rate.

 

“Designated CMT
Maturity Index” means the original period to maturity of the U.S. Treasury securities either 1, 2, 3, 5, 7, 10, 20 or 30
years, specified above with respect to which

 

    12 

     

    

the
CMT Rate will be calculated. If no maturity is specified above, the Designated CMT Maturity Index will be two years.

 

“Designated CMT
Reuters Page” means the Reuters Page specified in an Addendum attached hereto with respect to which the CMT Rate will be
calculated.

 

Determination of
Commercial Paper Rate. Unless otherwise specified in an Addendum attached hereto, if the Commercial Paper Rate is designated
as an Interest Rate Basis for this Note, the Commercial Paper Rate on the applicable Interest Determination Date will be the Money
Market Yield (as defined below) on such date of the rate for commercial paper having the Index Maturity specified above as published
in the H.15 Daily Update under the heading “Commercial Paper—Nonfinancial.” If the rate referred to in the preceding
sentence is not published in the H.15 Daily Update by 5:00 P.M., New York City time, on the related Calculation Date, then the
Commercial Paper Rate for the Interest Determination Date will be calculated by the Calculation Agent as the Money Market Yield
of the arithmetic mean of the offered rates at approximately 11:00 A.M., New York City time, as of the applicable Interest Determination
Date of three leading dealers of U.S. dollar commercial paper in The City of New York, which may include the Calculation Agent
and its affiliates, selected by the Calculation Agent (after consultation with the Company) for U.S. dollar commercial paper having
the Index Maturity specified above placed for industrial issuers whose bond rating is “Aa,” or the equivalent, from
a nationally recognized rating agency. If the dealers selected by the Calculation Agent are not quoting as mentioned in the preceding
sentence, the Commercial Paper Rate determined on the applicable Interest Determination Date will be the rate in effect on such
Interest Determination Date.

 

“H.15 Daily Update”
means the Selected Interest Rates (Daily)—H.15 release, published by the Federal Reserve System Board of Governors, or its
successor, available through the website of the Board of Governors of the Federal Reserve System at http://www.federalreserve.gov/releases/h15
or any Successor Source.

 

“Money Market
Yield” means, in respect of any security with a maturity of six months or less, the rate for which is quoted on a bank discount
basis, a yield (expressed as a percentage) calculated in accordance with the following formula:

 

	Money Market Yield = 	     D x 360  	x 100
	 	   360-(D x M)	 

 

where “D” refers to the applicable
per annum rate for commercial paper quoted on a bank discount basis and expressed as a decimal and “M” refers to the
actual number of days in the interest period for which interest is being calculated.

 

Determination
of Compounded SOFR. Unless otherwise specified in an Addendum attached hereto, if Compounded SOFR is designated as an Interest
Rate Basis for this Note, the amount of interest accrued and payable on this Note for each Interest Period (as defined below) will
be equal to the product of (i) the outstanding principal amount of this Note multiplied by (ii) the product of (a) Interest Rate
(Compounded SOFR plus Spread) for the relevant Interest Period

 

    13 

     

    

multiplied
by (b) the quotient of the actual number of calendar days in such Interest Period divided by 360.

 

“Compounded
SOFR” means, with respect to any Interest Period, the rate computed in accordance with the following formula set forth below:

 

 

where:

 

“SOFR IndexStart”
is the SOFR Index value for the day which is two U.S. Government Securities Business Days preceding the first date of the relevant
Interest Period;

 

“SOFR IndexEnd”
is the SOFR Index value for the day which is two U.S. Government Securities Business Days preceding the latter Interest Payment
Date relating to such Interest Period; and

 

“dc”
is the actual number of calendar days in such Observation Period.

 

For purposes of determining
Compounded SOFR, “SOFR Index” means, with respect to any U.S. Government Securities Business Day:

 

		(1)	the SOFR Index value as published for such U.S. Government Securities Business Day by the New York
Federal Reserve as such index appears on the New York Federal Reserve’s Website at 3:00 P.M., New York City time, on such
U.S. Government Securities Business Day (the “SOFR Determination Time”); provided that:

 

		(2)	if a SOFR Index value does not so appear as specified in (1) above at the SOFR Determination Time,
then:

 

		(i).	if a Benchmark Transition Event and its related Benchmark Replacement Date have not occurred with
respect to the Secured Overnight Financing Rate, then Compounded SOFR shall be the rate determined pursuant to the “SOFR
Index Unavailable” provisions described below; or

 

		(ii).	if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect
to the Secured Overnight Financing Rate, then Compounded SOFR shall be the rate determined pursuant to the “Effect of a Benchmark
Transition Event” provisions described below.

 

“Interest Period”
means, unless otherwise specified in an Addendum attached hereto, the period from and including an Interest Payment Date (or, in
the case of the first Interest Period, the Original Issue Date) to, but excluding, the next Interest Payment Date (or, in the case
of the final Interest Period, the Stated Maturity Date).

 

    14 

     

    

SOFR Index Unavailable:

 

If a SOFR IndexStart
or SOFR IndexEnd is not published on the associated Interest Determination Date and a Benchmark Transition Event and
its related Benchmark Replacement Date have not occurred with respect to the Secured Overnight Financing Rate, “Compounded
SOFR” means, for the applicable Interest Period for which such index is not available, the rate of return on a daily compounded
interest investment calculated in accordance with the formula for SOFR Averages, and definitions required for such formula, published
on the New York Federal Reserve’s Website at https://www.newyorkfed.org/markets/treasury-repo-reference-rates-information.
For the purposes of this provision, references in the SOFR Averages compounding formula and related definitions to “calculation
period” shall be replaced with “Observation Period” and the words “that is, 30-, 90-, or 180- calendar
days” shall be removed. If the daily Secured Overnight Financing Rate (“SOFRi”) does not so appear
for any day, “i” in the Observation Period, SOFRi for such day “i” shall be the Secured Overnight
Financing Rate published in respect of the first preceding U.S. Government Securities Business Day for which the Secured Overnight
Financing Rate was published on the New York Federal Reserve’s Website.

 

Effect of a Benchmark Transition Event:

 

If the Company or
its designee determines on or prior to the relevant Reference Time that a Benchmark Transition Event and its related Benchmark
Replacement Date have occurred with respect to the then-current Benchmark, the Benchmark Replacement will replace the then-current
Benchmark for all purposes relating to this Note in respect of all determinations on such date and for all determinations on all
subsequent dates.

 

In connection with
the implementation of a Benchmark Replacement, the Company or its designee will have the right to make Benchmark Replacement Conforming
Changes from time to time.

 

Any determination,
decision or election that may be made by the Company or its designee pursuant to this section, including a determination with respect
to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take
or refrain from taking any action or any selection:

 

		(1)	will be conclusive and binding absent manifest error;

 

		(2)	will be made in the Company or its designee’s sole discretion; and

 

		(3)	notwithstanding anything to the contrary in the documentation relating to this Note, shall become
effective without consent from the Holder of this Note or any other party.

 

“Benchmark”
means, initially, Compounded SOFR, as such term is defined above; provided that if the Company or its designee determines on or
prior to the Reference Time that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with

 

    15 

     

    

respect
to Compounded SOFR (or the published SOFR Index used in the calculation thereof) or the then-current Benchmark, then “Benchmark”
means the applicable Benchmark Replacement.

 

“Benchmark
Replacement” means the first alternative set forth in the order below that can be determined by the Company or its designee
as of the Benchmark Replacement Date:

 

		(1)	the sum of: (a) the alternate rate of interest that has been selected or recommended by the Relevant Governmental Body as the
replacement for the then-current Benchmark and (b) the Benchmark Replacement Adjustment;

 

		(2)	the sum of: (a) the ISDA Fallback Rate and (b) the Benchmark Replacement Adjustment; or

 

		(3)	the sum of: (a) the alternate rate of interest that has been selected by the Company or its designee
as the replacement for the then-current Benchmark giving due consideration to any industry-accepted rate of interest as a replacement
for the then-current Benchmark for U.S. dollar-denominated floating rate notes at such time and (b) the Benchmark Replacement Adjustment.

 

“Benchmark
Replacement Adjustment” means the first alternative set forth in the order below that can be determined by the Company or
its designee as of the Benchmark Replacement Date:

 

		(1)	the spread adjustment, or method for calculating or determining such spread adjustment, (which
may be a positive or negative value or zero) that has been selected or recommended by the Relevant Governmental Body for the applicable
Unadjusted Benchmark Replacement;

 

		(2)	if the applicable Unadjusted Benchmark Replacement is equivalent to the ISDA Fallback Rate, the
ISDA Fallback Adjustment; or

 

		(3)	the spread adjustment (which may be a positive or negative value or zero) that has been selected
by the Company or its designee giving due consideration to any industry-accepted spread adjustment, or method for calculating or
determining such spread adjustment, for the replacement of the then-current Benchmark with the applicable Unadjusted Benchmark
Replacement for U.S. dollar-denominated floating rate notes at such time.

 

“Benchmark
Replacement Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative or operational
changes (including changes to the definition of the Interest Period, timing and frequency of determining rates and making payments
of interest, rounding of amounts or tenors, and other administrative matters) that the Company or its designee decide may be appropriate
to reflect the adoption of such Benchmark Replacement in a manner substantially consistent with market practice (or, if the Company
or its designee decide that adoption of any portion of such market practice is not administratively feasible or if the Company
or its designee determine that no market practice for use of the Benchmark

 

    16 

     

    

Replacement
exists, in such other manner as the Company or its designee determine is reasonably necessary).

 

“Benchmark
Replacement Date” means the earliest to occur of the following events with respect to the then-current Benchmark (including
the daily published component used in the calculation thereof):

 

		(1)	in the case of clause (1) or (2) of the definition of “Benchmark Transition Event,”
the later of (a) the date of the public statement or publication of information referenced therein and (b) the date on which the
administrator of the Benchmark permanently or indefinitely ceases to provide the Benchmark (or such component); or

 

		(2)	in the case of clause (3) of the definition of “Benchmark Transition Event,” the date
of the public statement or publication of information referenced therein.

 

For the avoidance
of doubt, if the event that gives rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference
Time in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time
for such determination.

 

For the avoidance
of doubt, for purposes of the definitions of Benchmark Replacement Date and Benchmark Transition Event, references to Benchmark
also include any reference rate underlying such Benchmark.

 

“Benchmark
Transition Event” means the occurrence of one or more of the following events with respect to the then-current Benchmark
(including the daily published component used in the calculation thereof):

 

		(1)	a public statement or publication of information by or on behalf of the administrator of the Benchmark
(or such component) announcing that such administrator has ceased or will cease to provide the Benchmark (or such component), permanently
or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue
to provide the Benchmark (or such component);

 

		(2)	a public statement or publication of information by the regulatory supervisor for the administrator
of the Benchmark (or such component), the central bank for the currency of the Benchmark (or such component), an insolvency official
with jurisdiction over the administrator for the Benchmark (or such component), a resolution authority with jurisdiction over the
administrator for the Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over
the administrator for the Benchmark, which states that the administrator of the Benchmark (or such component) has ceased or will
cease to provide the Benchmark (or such component) permanently or indefinitely, provided that, at the time of such statement or
publication, there is no successor administrator that will continue to provide the Benchmark (or such component); or

 

    17 

     

    

		(3)	a public statement or publication of information by the regulatory supervisor for the administrator
of the Benchmark announcing that the Benchmark is no longer representative.

 

“ISDA Fallback
Adjustment” means the spread adjustment (which may be a positive or negative value or zero) that would apply for derivatives
transactions referencing the ISDA Definitions to be determined upon the occurrence of an index cessation event with respect to
the Benchmark.

 

“ISDA Fallback
Rate” means the rate that would apply for derivatives transactions referencing the ISDA Definitions to be effective upon
the occurrence of an index cessation date with respect to the Benchmark for the applicable tenor excluding the applicable ISDA
Fallback Adjustment.

 

“Observation
Period” means the period from and including two U.S. Government Securities Business Days preceding an Interest Payment Date
to but excluding two U.S. Government Securities Business Days preceding the next Interest Payment Date, provided that the first
Observation Period shall be from and including two U.S. Government Securities Business Days preceding the Original Issue Date to
but excluding the two U.S. Government Securities Business Days preceding the first Interest Payment Date.

 

“Reference
Time” with respect to any determination of the Benchmark means (1) if the Benchmark is Compounded SOFR, the SOFR Determination
Time, and (2) if the Benchmark is not Compounded SOFR, the time determined by the Company or its designee after giving effect to
the Benchmark Replacement Conforming Changes.

 

“Relevant Governmental
Body” means the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or
convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto.

 

“Unadjusted
Benchmark Replacement” means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.

 

Determination of
Eleventh District Cost of Funds Rate. Unless otherwise specified in an Addendum attached hereto, if the Eleventh District Cost
of Funds Rate is designated as an Interest Rate Basis for this Note, the Eleventh District Cost of Funds Rate on the applicable
Interest Determination Date will be the rate equal to the monthly weighted average cost of funds set forth opposite the caption
“11TH Dist COFI:” on the Reuters Screen COFI/ARMS Page or any Successor Source as of 11:00 A.M., San Francisco time,
on such Interest Determination Date. If the rate referred to in the preceding sentence is no longer published on the relevant page,
or if not published by 11:00 A.M., San Francisco time, on the related Calculation Date, the Eleventh District Cost of Funds Rate
for such Interest Determination Date will be the monthly weighted average cost of funds paid by member institutions of the Eleventh
Federal Home Loan Bank District that was most recently announced (the “Index”) by the Federal Home Loan Bank of San
Francisco as the cost of funds for the calendar month immediately preceding the applicable Interest Determination Date. If the
Federal Home Loan Bank of San Francisco fails to

 

    18 

     

    

announce
the Index as referred to in the preceding sentence on or before the related Calculation Date for the calendar month immediately
preceding such applicable Interest Determination Date, then the Eleventh District Cost of Funds Rate for such Interest Determination
Date will be the Eleventh District Cost of Funds Rate in effect on such Interest Determination Date.

 

Determination of
Federal Funds Rate. Unless otherwise specified in an Addendum attached hereto, if the Federal Funds Rate is designated as an
Interest Rate Basis for this Note, the Federal Funds Rate on the applicable Interest Determination Date will be the rate set forth
in the H.15 Daily Update for that day opposite the caption “Federal funds (effective)” as such rate is displayed on
the Reuters Screen FEDFUNDS1 Page or any Successor Source under the caption “EFFECT.” If such rate referred to in the
preceding sentence is not so published by 5:00 P.M., New York City time, on the related Calculation Date, the Federal Funds Rate
for the applicable Interest Determination Date will be calculated by the Calculation Agent as the arithmetic mean of the rates
for the last transaction in overnight U.S. dollar federal funds arranged by three leading brokers of U.S. dollar federal funds
transactions in The City of New York, which may include the Calculation Agent and its affiliates, selected by the Calculation Agent
(after consultation with the Company) as of a time prior to 9:00 A.M., New York City time on the applicable Interest Determination
Date. If the brokers selected as aforesaid by the Calculation Agent are not quoting as referred to in the preceding sentence, the
Federal Funds Rate for such Interest Determination Date will be the Federal Funds Rate in effect on such Interest Determination
Date.

 

Determination of
Federal Funds OIS Compound Rate. Unless otherwise specified in an Addendum attached hereto, if the Federal Funds OIS Compound
Rate is designated as an Interest Rate Basis for this Note, the Federal Funds OIS Compound Rate on the applicable Interest Determination
Date immediately following an Interest Reset Period will be the rate of return of a daily compound interest investment calculated
in accordance with the formula set forth below:

 

 

where:

 

“d0” is
the number of New York Banking Days in the relevant Interest Reset Period;

 

“i” is a series of
whole numbers from one to d0, each representing the relevant New York Banking Days in chronological order from, and
including, the first New York Banking Day in the relevant Interest Reset Period;

 

“FEDFUNDi,”
for any day “i” in the relevant Interest Reset Period, is a reference rate equal to the rate set forth in the H.l5
Daily Update in respect of that day opposite the caption “Federal funds (effective)” as such rate is displayed on the
Reuters Screen FEDFUNDS1 Page or any Successor Source under the caption “EFFECT.” Provided, (1) if such rate does not
appear on Reuters Screen FEDFUNDS1 Page or any Successor Source or is not yet published in the H.15 Daily Update by 5:00 P.M.,
New York City time, on the related day, FEDFUNDi for that day

 

    19 

     

    

will
be calculated by the calculation agent as the arithmetic mean of the rates for the last transaction in overnight U.S. dollar federal
funds arranged by three leading brokers of U.S. dollar federal funds transactions in The City of New York, which may include the
calculation agent and its affiliates, selected by the calculation agent (after consultation with the Company) as of a time before
9:00 A.M., New York City time on the applicable day; (2) if the brokers so selected by the calculation agent are not quoting as
referred to in clause (1) above, FEDFUNDi for such day will be the rate displayed on the Reuters Screen FEDFUNDS1 Page
or any Successor Source in respect of the first preceding New York Banking Day; and (3) if the rate is not displayed on the Reuters
Screen FEDFUNDS1 Page or any Successor Source in respect of the first preceding New York Banking Day, then FEDFUNDi
for such day will be the FEDFUNDi in effect on the applicable Interest Determination Date.

 

“ni” is
the number of calendar days in the relevant Interest Reset Period on which the rate is FEDFUNDi; and

 

“d” is the number
of calendar days in the relevant Interest Reset Period.

 

“New York Banking
Day” means any day on which commercial banks are open for general business (including dealings in foreign exchange and foreign
currency deposits) in New York, New York.

 

Determination of
LIBOR. Unless otherwise specified in an Addendum attached hereto, if LIBOR is designated as an Interest Rate Basis for this
Note, LIBOR will be generally determined on the applicable Interest Determination Date by the Calculation Agent as the average
of the offered rates for deposits in the Index Currency having the specified Index Maturity beginning on the second London Banking
Day immediately after the Interest Determination Date (or, if pounds sterling is the Index Currency, beginning on such date or,
if euro is the Index Currency, beginning on the second TARGET2 Settlement Day immediately after such date), that appear on the
Designated LIBOR Page as of 11:00 A.M. London time, on that Interest Determination Date, if at least two such offered rates appear
on the Designated LIBOR Page; provided that if the specified Designated LIBOR Page by its terms provides only for a single
rate, then the single rate will be used. If fewer than two offered rates appear on the Designated LIBOR Page, or, if no rate appears
and the Designated LIBOR Page by its terms provides only for a single rate, LIBOR for that Interest Determination Date will be
determined based on the rates on that Interest Determination Date at approximately 11:00 A.M. London time, at which deposits on
that date in the Index Currency for the period of the specified Index Maturity are offered to prime banks in the London interbank
market by four major banks in that market selected by the Calculation Agent (after consultation with the Company) and in a principal
amount that is representative for a single transaction in the Index Currency in such market at such time. The offered rates must
begin on the second London Banking Day immediately after the Interest Determination Date (or if pounds sterling is the Index Currency,
commencing on such Interest Determination Date or, if euro is the Index Currency, beginning on the second TARGET2 Settlement Day
immediately after such date). The Calculation Agent shall request the principal London office of each of these banks to quote its
rate. If the Calculation Agent receives at least two quotations, LIBOR will be the average of those quotations. If the Calculation
Agent receives fewer than two quotations as referred to in the preceding sentence, LIBOR will be the arithmetic mean of the rates
quoted at approximately 11:00 A.M. in the Principal Financial Center, on such Interest

 

    20 

     

    

Determination
Date by major banks in the Principal Financial Center selected by the Calculation Agent (after consultation with the Company).
The rates will be for loans in the Index Currency to leading European banks having the specified Index Maturity beginning on the
second London Banking Day after the Interest Determination Date (or, if pounds sterling is the Index Currency, commencing on such
Interest Determination Date or, if euro is the Index Currency, beginning on the second TARGET2 Settlement Day immediately after
such date) and in a principal amount that is representative for a single transaction in such Index Currency in such market at
such time. If the banks so selected by the Calculation Agent are not quoting as referred to in the preceding sentence, the rate
of interest on the LIBOR Notes with respect to the following Interest Reset Period will be the rate of interest in effect on the
applicable Interest Determination Date.

 

“Designated LIBOR
Page” means the display page specified on the face hereof, or if no page is so specified or LIBOR Reuters is specified, the
display on Reuters on page LIBOR01, or any Successor Source, for the purpose of displaying the London interbank rates of major
banks for the applicable Index Currency.

 

“TARGET2 Settlement Day” means
any day on which the Trans-European Automated Real-Time Gross Settlement Express Transfer (TARGET2) System is open.

 

Determination of
Prime Rate. Unless otherwise specified in an Addendum attached hereto, if Prime Rate is designated as an Interest Rate Basis
for this Note, the Prime Rate on the applicable Interest Determination Date will be the rate on such Interest Determination Date
set forth in the H.15 Daily Update opposite the caption “Bank prime loan.” If such rate referred to in the preceding
sentence is not so published by 5:00 P.M., New York City time, on the related Calculation Date, the Prime Rate for the applicable
Interest Determination Date will be the rate calculated by the Calculation Agent as the arithmetic mean of the rates of interest
publicly announced by each bank that appears on the Reuters Page US PRIME 1, as defined below, as that bank’s prime rate
or base lending rate, as of 11:00 A.M. New York City time, for the applicable Interest Determination Date. If fewer than four rates
appear on the Reuters Page US PRIME 1 by 5:00 P.M., New York City time, on the related Calculation Date, then the Prime Rate for
the applicable Interest Determination Date will be the rate calculated by the Calculation Agent as the arithmetic mean of the rates
of interest publicly announced by three major banks, which may include the Calculation Agent and its affiliates, in New York City
selected by the Calculation Agent (after consultation with the Company) as its U.S. dollar prime rate or base lending rate as in
effect for that day. Each change in the prime rate or base lending rate so announced by such bank will be effective as of the effective
date of the announcement or, if no effective date is specified, as of the date of the announcement. If the banks selected by the
Calculation Agent are not quoting as described in the preceding sentence, the Prime Rate for the applicable Interest Determination
Date will be the Prime Rate in effect on such Interest Determination Date.

 

“Reuters Page
US PRIME 1” means the display designated as the “US PRIME 1” page on Reuters, or any Successor Source, for the
purpose of displaying prime rates or base lending rates of major U.S. banks.

 

    21 

     

    

Determination of
SOFR. Unless specified otherwise in an Addendum attached hereto, if SOFR is designated as an Interest Rate Basis for this Note,
“SOFR” means, with respect to any Interest Reset Date, the rate determined in accordance with the following procedures:

 

		(1)	the Secured Overnight Financing Rate for the applicable Interest Determination Date published as
of 5:00 P.M., New York City time, on the U.S. Government Securities Business Day immediately following such Interest Determination
Date (the “SOFR Determination Time”); provided that:

 

		(2)	if the rate specified in (1) above does not so appear as of the SOFR Determination Time, then:

 

		i.	if a Benchmark Transition Event and its related Benchmark Replacement Date have not occurred with
respect to the Secured Overnight Financing Rate, then SOFR shall be the Secured Overnight Financing Rate published on the New York
Federal Reserve’s Website for the first preceding U.S. Government Securities Business Day for which the Secured Overnight
Financing Rate was published on the New York Federal Reserve’s Website; or

 

		ii.	if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect
to the Secured Overnight Financing Rate, then SOFR shall be the rate determined pursuant to the “Effect of a Benchmark Transition
Event” provisions described below.

 

Effect of a Benchmark Transition Event:

 

If the Company or
its designee determines on or prior to the relevant Reference Time that a Benchmark Transition Event and its related Benchmark
Replacement Date have occurred in respect of any determination of the Benchmark on any date, the Benchmark Replacement will replace
the then-current Benchmark for all purposes relating to this Note in respect of such determination on such date and all determinations
on all subsequent dates.

 

In connection with
the implementation of a Benchmark Replacement, the Company or its designee will have the right to make Benchmark Replacement Conforming
Changes from time to time.

 

Any determination,
decision or election that may be made by the Company or its designee pursuant to this section, including a determination with respect
to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take
or refrain from taking any action or any selection:

 

		(1)	will be conclusive and binding absent manifest error;

 

		(2)	will be made in the Company or its designee’s sole discretion; and

 

		(3)	notwithstanding anything to the contrary in the documentation relating to this Note, shall become
effective without consent from the Holder of this Note or any other party.

 

    22 

     

    

“Benchmark”
means, initially, the Secured Overnight Financing Rate, as such term is defined above; provided that if the Company or its designee
determines on or prior to the Reference Time that a Benchmark Transition Event and its related Benchmark Replacement Date have
occurred with respect to the Secured Overnight Financing Rate or the then-current Benchmark, then “Benchmark” means
the applicable Benchmark Replacement.

 

“Benchmark
Replacement” means the first alternative set forth in the order below that can be determined by the Company or its designee
as of the Benchmark Replacement Date:

 

		(1)	the sum of: (a) the alternate rate of interest that has been selected or recommended by the Relevant Governmental Body as the
replacement for the then-current Benchmark for the applicable Corresponding Tenor and (b) the Benchmark Replacement Adjustment;

 

		(2)	the sum of: (a) the ISDA Fallback Rate and (b) the Benchmark Replacement Adjustment; or

 

		(3)	the sum of: (a) the alternate rate of interest that has been selected by the Company or its designee
as the replacement for the then-current Benchmark for the applicable Corresponding Tenor giving due consideration to any industry-accepted
rate of interest as a replacement for the then-current Benchmark for U.S. dollar-denominated floating rate notes at such time and
(b) the Benchmark Replacement Adjustment.

 

“Benchmark
Replacement Adjustment” means the first alternative set forth in the order below that can be determined by the Company or
its designee as of the Benchmark Replacement Date:

 

		(1)	the spread adjustment, or method for calculating or determining such spread adjustment, (which
may be a positive or negative value or zero) that has been selected or recommended by the Relevant Governmental Body for the applicable
Unadjusted Benchmark Replacement;

 

		(2)	if the applicable Unadjusted Benchmark Replacement is equivalent to the ISDA Fallback Rate, the
ISDA Fallback Adjustment; or

 

		(3)	the spread adjustment (which may be a positive or negative value or zero) that has been selected
by the Company or its designee giving due consideration to any industry-accepted spread adjustment, or method for calculating or
determining such spread adjustment, for the replacement of the then-current Benchmark with the applicable Unadjusted Benchmark
Replacement for U.S. dollar-denominated floating rate notes at such time.

 

“Benchmark
Replacement Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative or operational
changes (including changes to the definition of the Interest Payment Calculation Period, timing and frequency of determining rates
and making payments of interest, rounding of amounts or tenors, and other administrative

 

    23 

     

    

matters)
that the Company or its designee decide may be appropriate to reflect the adoption of such Benchmark Replacement in a manner substantially
consistent with market practice (or, if the Company or its designee decide that adoption of any portion of such market practice
is not administratively feasible or if the Company or its designee determine that no market practice for use of the Benchmark
Replacement exists, in such other manner as the Company or its designee determine is reasonably necessary).

 

“Benchmark
Replacement Date” means the earliest to occur of the following events with respect to the then-current Benchmark:

 

		(1)	in the case of clause (1) or (2) of the definition of “Benchmark Transition Event,”
the later of (a) the date of the public statement or publication of information referenced therein and (b) the date on which the
administrator of the Benchmark permanently or indefinitely ceases to provide the Benchmark; or

 

		(2)	in the case of clause (3) of the definition of “Benchmark Transition Event,” the date
of the public statement or publication of information referenced therein.

 

For the avoidance
of doubt, if the event that gives rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference
Time in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time
for such determination.

 

“Benchmark
Transition Event” means the occurrence of one or more of the following events with respect to the then-current Benchmark:

 

		(1)	a public statement or publication of information by or on behalf of the administrator of the Benchmark
announcing that such administrator has ceased or will cease to provide the Benchmark, permanently or indefinitely, provided that,
at the time of such statement or publication, there is no successor administrator that will continue to provide the Benchmark;

 

		(2)	a public statement or publication of information by the regulatory supervisor for the administrator
of the Benchmark, the central bank for the currency of the Benchmark, an insolvency official with jurisdiction over the administrator
for the Benchmark, a resolution authority with jurisdiction over the administrator for the Benchmark or a court or an entity with
similar insolvency or resolution authority over the administrator for the Benchmark, which states that the administrator of the
Benchmark has ceased or will cease to provide the Benchmark permanently or indefinitely, provided that, at the time of such statement
or publication, there is no successor administrator that will continue to provide the Benchmark; or

 

		(3)	a public statement or publication of information by the regulatory supervisor for the administrator
of the Benchmark announcing that the Benchmark is no longer representative.

 

    24 

     

    

“Corresponding
Tenor” with respect to a Benchmark Replacement means a tenor (including overnight) having approximately the same length (disregarding
business day adjustment) as the applicable tenor for the then-current Benchmark.

 

“ISDA Fallback
Adjustment” means the spread adjustment (which may be a positive or negative value or zero) that would apply for derivatives
transactions referencing the ISDA Definitions to be determined upon the occurrence of an index cessation event with respect to
the Benchmark for the applicable tenor.

 

“ISDA Fallback
Rate” means the rate that would apply for derivatives transactions referencing the ISDA Definitions to be effective upon
the occurrence of an index cessation date with respect to the Benchmark for the applicable tenor excluding the applicable ISDA
Fallback Adjustment.

 

“Reference
Time” with respect to any determination of the Benchmark means (1) if the Benchmark is the Secured Overnight Financing Rate,
the SOFR Determination Time, and (2) if the Benchmark is not the Secured Overnight Financing Rate, the time determined by the Company
or its designee after giving effect to the Benchmark Replacement Conforming Changes.

 

“Relevant Governmental
Body” means the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or
convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto.

 

“Unadjusted
Benchmark Replacement” means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.

 

Determination of
Treasury Rate. Unless otherwise specified in an Addendum attached hereto, if the Treasury Rate is designated as an Interest
Rate Basis for this Note, the Treasury Rate on the applicable Interest Determination Date will be the rate from the auction held
on the applicable Interest Determination Date (“Auction”) of direct obligations of the United States (“Treasury
Bills”) having the Index Maturity specified on the face hereof which appears on either the Reuters Screen USAUCTION10 Page
or any Successor Source or the Reuters Screen USAUCTION11 Page or any Successor Source opposite such Index Maturity under the heading
“INVEST RATE.” If such rate described in the preceding sentence is not so published by 3:00 P.M., New York City time,
on the related Calculation Date, the Treasury Rate for the applicable Interest Determination Date will be the Bond Equivalent Yield
of the auction rate of the applicable Treasury Bills announced by the United States Department of the Treasury. If the rate described
in the preceding sentence is not announced by the United States Department of the Treasury, or if the Auction is not held, the
Treasury Rate for the applicable Interest Determination Date will be the Bond Equivalent Yield of the rate on such Interest Determination
Date of Treasury Bills having the Index Maturity specified above set forth in the H.15 Daily Update under the caption “U.S.
government securities/Treasury bills/(secondary market).” If the rate described in the preceding sentence is not so published
by 3:00 P.M., New York City time, on the related Calculation Date, the Treasury Rate for the applicable Interest Determination
Date will be the rate on the applicable Interest Determination Date of the applicable Treasury Bills as

 

    25 

     

    

published
in the H.15 Daily Update under the caption “U.S. government securities/Treasury bills/(secondary market).” If the
rate described in the preceding sentence is not so published by 3:00 P.M., New York City time, on the related Calculation Date,
the Treasury Rate for the applicable Interest Determination Date will be the rate on such Interest Determination Date calculated
by the Calculation Agent as the Bond Equivalent Yield of the arithmetic mean of the secondary market bid rates, as of approximately
3:30 P.M., New York City time, on the applicable Interest Determination Date, of three primary United States government securities
dealers, which may include the Calculation Agent or its affiliates, selected by the Calculation Agent (after consultation with
the Company), for the issue of Treasury Bills with a remaining maturity closest to the Index Maturity specified above. If the
dealers selected as aforesaid by the Calculation Agent as described in the preceding sentence, the Treasury Rate will be the Treasury
Rate in effect on such Interest Determination Date.

 

“Bond Equivalent
Yield” means, in respect of any security with a maturity of six months or less, the rate for which is quoted on a bank discount
basis, a yield (expressed as a percentage) calculated in with the following formula:

 

	Bond Equivalent Yield =	 D x N	  x 100
	 	360 – (D x M)	 

 

where “D”
refers to the applicable per annum rate for Treasury Bills quoted on a bank discount basis and expressed as a decimal; “N”
refers to 365 or 366, as the case may be; and “M” refers to the actual number of days in the interest period for which
interest is being calculated.

 

The Notes are issuable
only in registered form without coupons in denominations equal to the Minimum Denomination specified above and higher integral
multiples of the Minimum Incremental Denomination specified above (unless otherwise specified in an Addendum attached hereto).
The Company will specify the minimum denominations for Notes denominated in a foreign currency in an Addendum attached hereto.
As provided in the Indenture and subject to certain limitations therein set forth, the Notes are exchangeable for a like aggregate
principal amount of Notes as requested by the Holder surrendering the same.

 

As provided in the
Indenture and subject to certain limitations therein set forth, the transfer of this Note may be registered on the Security Register
of the Company, upon surrender of this Note for registration of transfer at the office or agency of the Company duly endorsed by,
or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed
by, the Holder hereof or by its attorney duly authorized in writing, and thereupon one or more new Notes of authorized denominations
and for the same aggregate principal amount, will be issued to the designated transferee or transferees.

 

No service charge will
be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

 

    26 

     

    

Notwithstanding anything
to the contrary contained herein or in the Indenture, for purposes of determining the voting rights of a Holder of a Note for which
the principal thereof is determined by reference to the price or prices of specified commodities or stocks, interest rate indices,
interest rate swap or exchange rate swap indices, the exchange rate of one or more specified currencies relative to another currency
or such other price, exchange rate or other financial index or indices as specified above (a “Principal Indexed Note”),
the principal amount of any such Principal Indexed Note will be deemed to be equal to the face amount thereof upon issuance. The
method for determining the amounts, if any, payable on Interest Payment Dates and at Maturity on a Principal Indexed Note will
be specified in an attached Addendum.

 

If an Event of Default
with respect to the Notes shall occur and be continuing, the principal of all the Notes may be declared due and payable in the
manner and with the effect provided in the Indenture.

 

The Indenture permits,
subject to certain exceptions provided therein, the Company and the Trustee to enter into supplemental indentures for a series
of Securities with the consent of the Holders of 66 2/3% of the outstanding principal amount of that series, for the purpose of
adding any provisions to or changing in any manner or eliminating any of the provisions of the Indenture or of modifying in any
manner the rights of the Holders of each such series affected by such modification or amendment. The Indenture also contains provisions
permitting the Holders of specified percentages in aggregate principal amount of the Securities of each series at the time Outstanding,
on behalf of the Holders of all the Securities of such series, to waive compliance by the Company with certain provisions of the
Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this
Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made
upon this Note.

 

So long as this Note
shall be outstanding, the Company will cause to be maintained, in each Place of Payment, an office or agency for the payment of
the principal of and premium, if any, and interest on this Note as herein provided and for the registration, transfer and exchange
of this Note. The Company shall give prompt written notice to the Trustee of the location, and any change in the location, of such
office or agency.

 

No reference herein
to the Indenture and no provision of this Note or of the Indenture will alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and interest on this Note at the time, place and rate, and in the coin or currency,
herein prescribed.

 

Prior to due presentment
of this Note for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person
in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither the
Company, the Trustee nor any such agent shall be affected by notice to the contrary.

 

At the request of the
Holder of this Note, the Calculation Agent shall provide to the Holder the interest rate hereon then in effect and, if determined,
the interest rate which will become effective as of the next Interest Reset Date.

 

    27 

     

    

If this Note is not
a Reopening Note, the Company may reopen this issue of Notes by issuing additional Securities with the same terms as these Notes,
except that the additional Securities shall bear interest from and including the last date to which interest has been paid on these
Notes or from the Original Issue Date specified above, if no interest has been paid. Any additional Securities so issued will be
considered for all purposes part of the same issue of Notes.

 

Unless otherwise specified
in an Addendum attached hereto, if this Note is a Reopening Note, notwithstanding anything to the contrary in this Note, interest
on this Note shall accrue from and including the Initial Interest Accrual Date specified above; and for purposes of all interest
calculations, references to Original Issue Date in this Note shall be replaced with a reference to the Initial Interest Accrual
Date specified above. If this Note is a Reopening Note, this Note shall be considered for all purposes part of the same issue of
Notes that has been reopened.

 

The Indenture and the
Notes shall be governed by and construed in accordance with the laws of the State of New York.

 

Any provision contained
herein with respect to the determination of an Interest Rate Basis, the specification of Interest Rate Basis, calculation of the
Interest Rate applicable to this Note, its payment dates or any other matter relating hereto may be modified as specified in an
Addendum relating hereto. References herein to “this Note,” “hereof,” “herein,” “as specified
above” or similar language of like import shall include any Addendums to this Note.

 

As used herein, and
unless otherwise specified in an Addendum attached hereto:

 

(a)  the
term “Business Day” means:

 

		1.	for CMS Rate Notes and CMT Rate Notes, any day except for a Saturday, Sunday or a day on which
the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed
for the entire day for purposes of trading in U.S. government securities; and

 

		2.	for Compounded SOFR Notes and SOFR Notes, a day that is both (1) a day other than a Saturday or
Sunday, that is neither a legal holiday nor a day on which commercial banks are authorized or required by law, regulation or executive
order to close in The City of New York (a “New York Business Day”) and (2) a day other than a Saturday, Sunday or a
day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members
be closed for the entire day for purposes of trading in U.S. Government securities (a “U.S. Government Securities Business
Day”); and

 

with respect to all
other Notes:

 

		3.	for U.S. dollar denominated Notes for which LIBOR is not an applicable Interest Rate Basis: a New
York Business Day;

 

    28 

     

    

		4.	for U.S. dollar denominated Notes for which LIBOR is an applicable Interest Rate Basis: a day that
is both (x) a day on which commercial banks are open for business, including dealings in the designated Index Currency (as defined
below) in London (a “London Banking Day”) and (y) a New York Business Day;

 

		5.	for non-U.S. dollar denominated Notes (other than Notes denominated in euro) for which LIBOR is
not an applicable Interest Rate Basis: a day that is both (x) a day other than a day on which commercial banks are authorized or
required by law, regulation or executive order to close in the Principal Financial Center (as defined below) of the country issuing
the Specified Currency indicated above (a “Principal Financial Center Business Day”) and (y) a New York Business Day;

 

		6.	for non-U.S. dollar denominated Notes (other than Notes denominated in euro) for which LIBOR is
an applicable Interest Rate Basis: a day that is all of: (x) a Principal Financial Center Business Day; (y) a New York Business
Day; and (z) a London Banking Day;

 

		7.	for euro denominated Notes for which LIBOR is not an applicable Interest Rate Basis: a day that
is both (x) a day on which the Trans-European Automated Real-Time Gross Settlement Express Transfer (TARGET2) System is open (a
“TARGET2 Business Day”); and (y) a New York Business Day; and

 

		8.	for euro denominated Notes for which LIBOR is an applicable Interest Rate Basis: a day that is
all of: (x) a TARGET2 Business Day; (y) a New York Business Day; and (z) a London Banking Day;

 

(b)   the
term “Index Currency” means the currency for which LIBOR will be calculated as specified above. If no currency
is specified, the Index Currency will be U.S. dollars;

 

    29 

     

    

(c)  the
term “ISDA” means the International Swaps and Derivatives Association, Inc.

 

(d)  the
term “ISDA Definitions” means the 2006 ISDA Definitions published by ISDA or any successor thereto, as amended
or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from time to time.

 

(e)  the
term “New York Federal Reserve” means the Federal Reserve Bank of New York (or a successor administrator of
the Secured Overnight Financing Rate).

 

(f)  the
term “New York Federal Reserve’s Website” means the website of the New York Federal Reserve, currently
at http://www.newyorkfed.org, or any successor source.

 

(g)   the
term “Principal Financial Center” means:

 

		1.	the capital city of the country issuing the Specified Currency, or

 

		2.	the capital city of the country to which the Index Currency relates,

 

except that with respect
to U.S. dollars, Australian dollars, Canadian dollars, euros, New Zealand dollars, South African rand and Swiss francs, the Principal
Financial Center will be The City of New York, Sydney, Toronto, Brussels, Wellington, Johannesburg and Zurich, respectively;

 

(h)  the
term “Secured Overnight Financing Rate” means the daily secured overnight financing rate as provided by the
New York Federal Reserve on the New York Federal Reserve’s Website.

 

(i)   the
term “Specified Currency” means the currency in which a particular Note is denominated (or, if the currency
is no longer legal tender for the payment of public and private debts, any other currency of the relevant country or entity which
is then legal tender for the payment of such debts); and

 

(j)   all
terms used in this Note which are defined in the Indenture and not otherwise defined herein shall have the meanings assigned to
them in the Indenture.

 

    30 

     

    

IN WITNESS WHEREOF,
the Company has caused this instrument to be duly executed, manually or in facsimile, and an imprint or facsimile of its corporate
seal to be imprinted hereon.

 

	 	TOYOTA MOTOR CREDIT CORPORATION
	 	 
	 	 
	 	By: ___________________________________
	 	  
	 	   

Attest:

 

By: ____________________________

 

CERTIFICATE OF AUTHENTICATION

This is one of the Securities of the series 

designated therein referred to in the

within-mentioned Indenture.

 

DEUTSCHE BANK TRUST COMPANY AMERICAS, as Trustee

 

	By: 	____________________________	 	Dated:___________________
	  	Authorized Signatory	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	By: 	____________________________	 	Dated:___________________
	  	Authorized Signatory	 	 

     

     

    

OPTION TO ELECT REPAYMENT

 

The undersigned hereby
irrevocably request(s) and instruct(s) the Company to repay this Note (or portion hereof specified below) pursuant to its terms
and at a price equal to the principal amount hereof together with interest to the repayment date, to the undersigned, at

 

(Please
print or typewrite name and address of the undersigned)

 

For this Note to be
repaid, the Trustee must receive at its Corporate Trust Office, or at such other place or places of which the Company shall from
time to time notify the Holder of this Note, not more than 15 nor less than 10 days prior to an Optional Repayment Date, if any,
shown on the face of this Note, this Note with this “Option to Elect Repayment” form duly completed.

 

If less than the entire
principal amount of this Note is to be repaid, specify the portion hereof (which shall be integral multiples of the Minimum Incremental
Denomination specified above) which the Holder elects to have repaid and specify the denomination or denominations (which shall
be equal to the Minimum Denomination specified above or higher integral multiples of the Minimum Incremental Denomination specified
above) of the Notes to be issued to the Holder for the portion of this Note not being repaid (in the absence of any such specification,
one such Note will be issued for the portion not being repaid).

 

	$____________________________	_____________________________________
	 	NOTICE: The signature on this Option to Elect
	Date: _________________________	Repayment must correspond with the name as written upon the face of this Note in every particular, without alteration or enlargement or any change whatever.

     

     

    

ASSIGNMENT/TRANSFER FORM

 

FOR VALUE RECEIVED
the undersigned registered Holder hereby sell(s), assign(s) and transfer(s) unto (insert Taxpayer Identification No. or other identifying
number of assignee) __________________________________________________________________________ __________________________________________________________________________
(Please print or typewrite name and address including postal zip code of assignee) __________________________________________________________________________
the within Note and all rights thereunder, hereby irrevocably constituting and appointing ___________________________ attorney
to transfer said Note on the books of the Company with full power of substitution in the premises.

 

Dated:__________________         __________________________________

 

NOTICE: The signature of the
registered Holder to this assignment must correspond with the name as written upon the face of the within instrument in every particular,
without alteration or enlargement or any change whatsoever.

 

     

     

    

ABBREVIATIONS

 

The following abbreviations,
when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according
to applicable laws or regulations.

 

TEN COM--as tenants in common

 

	UNIF GIFT MIN ACT--	 	Custodian    	 
	 	(Cust)		(Minor)

 

Under Uniform Gifts to Minors Act

 

	 
	(State)

 

TEN ENT--as tenants by the entireties

 

JT TEN--as joint tenants with
right of survivorship and not as tenants in common

 

Additional abbreviations may also be used
though not in the above list.acer-ex101_15.htm

Exhibit 10.1

OPTION AGREEMENT

This Option Agreement (“Agreement”) is made and entered into as of January 25, 2021 (the “Effective Date”), by and between Acer Therapeutics Inc., a company organized and existing under the laws of Delaware (“Acer”), and Relief Therapeutics Holding AG, a company organized and existing under the laws of Switzerland (“Relief”). Relief and Acer each may be referred to herein individually as a “Party” or collectively as the “Parties.”

BACKGROUND

WHEREAS, Acer owns or controls certain know-how, patents, technology, documentation, data, and other materials related to ACER-001 and the Acer Technology as defined herein;

WHEREAS, Acer wishes to grant, and Relief wishes to receive, an option for an exclusive license under Acer's relevant intellectual property rights with respect to ACER-001 in the Relief Territory, as defined herein, all on the terms and subject to the conditions set forth in this Agreement;

WHEREAS, the Parties wish to establish a collaboration with respect to ACER-001 for development, regulatory approval, and commercialization of ACER-001 throughout the world; 

NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

1.Definitions. For purposes of this Agreement, the following terms when used with initial capital letters shall have the respective meanings set forth below in this Section 1 or elsewhere herein.

1.1.“ACER-001” means Acer’s taste-masked, immediate release powder formulation of sodium phenylbutyrate (NaPB) for the potential treatment of various inborn errors of metabolism, including urea cycle disorders (UCDs) and maple syrup urine disease (MSUD).

1.2.“Acer Know-How” means all unpatented inventions, technology, methods, materials (including biological and pharmaceutical materials), know-how, studies, pre-clinical and clinical data (including toxicology, safety data, and bioequivalence studies), tests and assays, reports, manufacturing processes (including manufacturing batch records to support regulatory approvals), regulatory filings (including drafts) and approvals and other information owned or licensed by Acer as of the Effective Date with the right to license or sublicense without violating the terms of any agreement to which Acer is party, in each case that relates to ACER-001 or the subject matter claimed by Acer Patents or BCM Patents.

1.3.“Acer Patents” means (a) the patents and patent applications set forth in Exhibit B, to the extent within the Relief Territory, and (b) any reissue, divisional, continuation, reexamination, renewal, extension or supplementary protection certificate for each of the patents and patent applications set forth in Exhibit B either now pending or pending in the future, to the extent within the Relief Territory, including all foreign and international counterparts and related patents and patent applications within the Relief Territory either now pending or pending in the future.

1.4.“Acer Technology” means the Acer Know-How, the Acer Patents and the BCM Patents.

1.5.“Acer Territory” means the United States, Canada, Brazil, Turkey and Japan.

 

 

1.6.“Affiliate” means, with respect to either Party, any person, corporation or other business entity of such Party which, directly or indirectly through one or more intermediaries, actually controls, is actually controlled by, or is under common control with such Party. As used in this Section 1.6, “control” means to possess, directly or indirectly, the power to affirmatively direct the management and policies of such person, corporation or other business entity, whether through ownership of voting securities or by contract relating to voting rights or corporate governance.

1.7.“BCM Patents” means (a) the patents and patent applications set forth in Exhibit C, to the extent within the Relief Territory, and (b) any reissue, divisional, continuation, reexamination, renewal, extension or supplementary protection certificate for each of the patents and patent applications set forth in Exhibit C either now pending or pending in the future, to the extent within the Relief Territory, including all foreign and international counterparts and related patents and patent applications within the Relief Territory either now pending or pending in the future.

1.8.“Confidential Information” means all information and know-how and any tangible embodiments thereof and other materials provided by or on behalf of one Party to the other Party either in connection with the discussions and negotiations pertaining to this Agreement or in the course of performing this Agreement or that otherwise relates to Acer's Technology, whether disclosed orally, visually, electronically, in writing or in other tangible or intangible form, and which may include data, knowledge, practices, processes, ideas, research plans, antibodies, small molecules, compounds, targets, biological and chemical formulations, structures and designs, laboratory notebooks, proof of concept and pre-clinical studies, formulation or manufacturing processes and techniques, scientific, manufacturing, marketing and business plans, and financial and personnel matters relating to the disclosing Party or to its present or future products, sales, suppliers, customers, employees, investors or business; provided, that, information, materials or know-how of a Party will not be deemed Confidential Information of such Party for purposes of this Agreement if such information, materials or know-how: (a) was already known to the receiving Party, other than under an obligation of confidentiality or non-use, at the time of disclosure to such receiving Party, as can be shown by written records; (b) was generally available or known to parties reasonably skilled in the field to which such information or know-how pertains, or was otherwise part of the public domain, at the time of its disclosure to such receiving Party; (c) became generally available or known to parties reasonably skilled in the field to which such information or know-how pertains, or otherwise became part of the public domain, after its disclosure to such receiving Party through no fault of the receiving Party; (d) was disclosed to such receiving Party, other than under an obligation of confidentiality or non-use, by a third party who had no obligation to the disclosing Party not to disclose such information or know-how to others; or (e) was independently discovered or developed by such receiving Party, as can be shown by their written records, without the use of Confidential Information belonging to the disclosing Party and prior to any subsequent disclosure by the receiving Party; and provided further, that Confidential Information, to the extent relating to Acer’s Technology, shall be deemed Confidential Information of Acer. 

1.9.“Cover” means that the use, manufacture, sale, offer for sale, research, development, commercialization, importation or other commercial exploitation of the subject matter in question by an unlicensed entity: (a) would infringe an issued or pending claim of an Acer Patent or BCM Patent, or (b) incorporates, encompasses, references, uses or otherwise relies upon the Acer Know-How.

1.10.“Exercise Notice” has the meaning set forth in Section 4.

1.11.“Field” means all indications or treatments of humans using ACER-001.

1.12.“Collaboration and License Agreement” has the meaning set forth in Section 4.

2

 

 

 

1.13.“Option” has the meaning set forth in Section 3.

1.14.“Option Fee” means One Million Dollars ($1,000,000).

1.15.“Option Loan” means a twelve (12) month secured loan of Four Million Dollars ($4,000,000), the terms of which are set forth in the Promissory Note and Security Agreement concurrently entered into herewith.

1.16. “Option Period” means the period beginning on the Effective Date and ending on the Termination Date.

1.17.“Relief Territory” means the World except for the Acer Territory.

1.18.“Termination Date” means June 30, 2021 or such earlier date as Relief ceases efforts to negotiate a Collaboration and License Agreement or terminates this Agreement in accordance with its terms.

2.Option Fee. In consideration for the Option granted to Relief hereunder, Relief shall pay Acer the Option Fee and the Option Loan within three (3) business days following execution of this Agreement by both parties. 

3.Option. In consideration for the Option Fee and Option Loan and subject to the Exclusive License Agreement, dated as of April 4, 2014, by and between Acer and Baylor College of Medicine, as amended to date (the “BCM License”), Acer hereby grants to Relief an exclusive right, exercisable at any time during the Option Period, for Relief as part of a mutually executed Collaboration and License Agreement (as defined herein) to enter into an exclusive license (with a right to sublicense) under the Acer Patents and Acer Know-How and a sublicense of the BCM Patents to develop, make, have made, use, sell, have sold, offer to sell, commercialize and import ACER-001 in the Field in the Relief Territory, on the terms described in this Agreement (the “Option”). 

	
 
	
3.1.
	
For avoidance of doubt, during the Option Period, Acer shall not engage in discussions with any other party regarding acquisition of ACER-001 or the Acer Technology, and conducting such discussions shall be a material breach of the Agreement and trigger the provisions of Section 9.

4.Exercise of Option. During the Option Period, Relief shall have the right, but not the obligation, within its sole discretion, to exercise the Option by delivering written notice of such exercise (the “Exercise Notice”) to Acer. Upon such delivery, Acer and Relief shall, for a period equal to the remaining term of the Option Period or other mutually agreed upon time, in good faith, negotiate and enter into a Collaboration and License Agreement incorporating the terms set forth in Exhibit A (the “Collaboration and License Agreement”). For avoidance of doubt, any rights for Relief under the Acer Patents, the Acer Know-How and the BCM Patents are subject to the mutual execution of a Collaboration and License Agreement.  The Collaboration and License Agreement will include terms customary to transactions of this nature, including but not limited to the following:

(a)the Parties’ commitment to collaborate on the development, regulatory approval, and commercialization of ACER-001 in the Acer Territory and Relief Territory;

(b)that Acer will seek to obtain regulatory approval for ACER-001 and begin commercial planning and launch strategies of ACER-001 in the Acer Territory as soon as commercially reasonable and within a time period to be agreed upon by the Parties;

3

 

 

 

(c)that Relief will have full responsibility for obtaining regulatory approval and commercial planning and launch of ACER-001 in the Relief Territory and all costs thereof;

(d)that each party shall have control and final decision making authority on the development, regulatory approval, and commercialization of ACER-001 in their respective Territories; provided, however, that the Parties shall not take action in their respective Territories that would reasonably be expected to materially adversely impact the ability of the other Party to obtain regulatory approval for, or to commercialize, ACER-001 in the other Party's Territory;

(e)that the Parties shall establish a collaboration committee (and any appropriate subcommittees, e.g., research, regulatory, and/or commercialization) and include a key person provision to oversee the research, development, regulatory approval, and commercialization of ACER-001; and

(f)that Relief for any reason in its sole discretion may decide to not proceed with the development or commercialization of ACER-001 in the Relief Territory, in which case it will not be responsible for any further monetary or other obligation to Acer and all rights and data shall revert to Acer.

5.Due Diligence. Until the earlier of (i) the expiration of the Option Period or (ii) execution of the Collaboration and License Agreement, and subject at all times to the obligations of confidentiality and non-use set forth in Section 7 of this Agreement, Acer will furnish Relief with reasonable access to the Acer Technology for the limited purpose of facilitating Relief’s evaluation of the Acer Technology, as Relief, its representatives or agents, may reasonably request.

6.Representations and Warranties; Limitation of Liability. 

6.1.Representations and Warranties of Acer. Acer represents and warrants to Relief as follows:

6.1.1.Acer has full power and authority to execute, deliver and perform this Agreement. This Agreement constitutes the legally binding and valid obligation of Acer, enforceable in accordance with its terms, except as such enforcement may be limited by applicable bankruptcy, moratorium and other laws affecting creditors’ rights generally.

6.1.2.Subject to compliance by Relief with the terms of the BCM License (insofar as such terms affect the sublicense of the BCM Patents contemplated hereby), the execution, delivery and performance by Acer of this Agreement and the consummation of the transactions contemplated hereby will not result in any violation of, conflict with, result in a breach of or constitute a default under any contract or agreement to which Acer is a party.

6.1.3.There are no liens or other encumbrances on the Acer Technology or any part thereof which would interfere with the rights contemplated hereunder to be granted to Relief under the Collaboration and License Agreement.

6.1.4.There is no action, suit, proceeding or investigation pending or, to Acer’s knowledge, currently threatened in writing against or affecting Acer that questions the validity of this Agreement or the right of Acer to enter into this Agreement or consummate the transactions contemplated hereby and, to Acer’s knowledge, there is no basis for the foregoing. 

6.1.5.There is no action, suit, proceeding or investigation pending, or to Acer's knowledge, currently threatened in writing against or affecting (i) Acer's ability to develop, make, have made, use, sell, have sold, offer to sell, commercialize and import ACER-001 or Acer’s 

4

 

 

 

Technology, (ii) the validity of the Acer Patents or BCM Patents, or (iii) the ownership of the Acer Technology.

6.2.Representations and Warranties of Relief. Relief represents and warrants to Acer as follows:

6.2.1.Relief has full power and authority to execute, deliver and perform this Agreement. This Agreement constitutes the legally binding and valid obligations of Relief, enforceable in accordance with their terms, except as such enforcement may be limited by applicable bankruptcy, moratorium and other laws affecting creditors’ rights generally.

6.2.2.The execution, delivery and performance by Relief of this Agreement and the consummation of the transactions contemplated thereby will not result in any violation of, conflict with, result in a breach of or constitute a default under any contract or agreement material to Relief, its business or its assets.

6.3.DISCLAIMER; LIMITATION OF LIABILITY. EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, ACER IS PROVIDING THE ACER TECHNOLOGY “AS IS.” EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATIONS, EXTENDS ANY WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR ANY IMPLIED WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT AND ASSUMES ANY RESPONSIBILITIES WHATSOEVER WITH RESPECT TO USE, SALE, OR OTHER DISPOSITION OF LICENSED PRODUCTS INCORPORATING OR MADE BY USE OR PRACTICE OF THE ACER TECHNOLOGY. WITH THE EXCEPTION OF DAMAGES ATTRIBUTABLE TO A PARTY’S BREACH OF SECTION 7.1 , IN NO EVENT WILL EITHER PARTY, OR ITS AFFILIATES, DIRECTORS, OFFICERS, EMPLOYEES, OR AGENTS, BE LIABLE TO THE OTHER PARTY FOR ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL OR INDIRECT DAMAGES OF THE OTHER PARTY OF ANY KIND, WHETHER GROUNDED IN TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, CONTRACT OR OTHERWISE.

7.Confidentiality

7.1.Disclosure and Use Restriction. Except as expressly provided herein or in any Collaboration and License Agreement executed pursuant hereto, the Parties agree that, for the Option Period and at all times thereafter, each Party will keep completely confidential and will not publish, submit for publication or otherwise disclose, and will not use for any purpose except for the purposes contemplated by this Agreement, any Confidential Information of the other Party.

7.2.Authorized Disclosure. Each Party may disclose Confidential Information of the other Party to the extent that such disclosure is:

(a)made in response to a valid order of a court of competent jurisdiction; provided, however, that in each case such disclosing Party will first have given notice to the other Party and given such other Party a reasonable opportunity to take appropriate action and cooperate with such other Party as necessary to obtain an appropriate protective order; provided, further, that in each case, the Confidential Information disclosed in response to such court or governmental order will be limited to that information which is legally required to be disclosed in response to such court or governmental order, as determined in good faith by counsel to the Party that is obligated to disclose Confidential Information pursuant to such order;

5

 

 

 

(b)otherwise required by law or regulation or the requirements of any stock exchange to which a Party is subject; provided, however, that the Party that is so required will provide such other Party with at least three (3) business days’ notice of such disclosure in advance thereof, shall consider in good faith any comments that may be provided by such other Party in response to such disclosure, and shall take reasonable measures to assure confidential treatment of such information;

(c)made by such Party, in connection with the performance of this Agreement or any Collaboration and License Agreement executed pursuant hereto, to such Party’s Affiliates, sublicensees, directors, officers, employees, consultants, representatives or agents, or to other third parties, in each case on a need to know basis and solely to use such information for business purposes relevant to this Agreement, and provided that each individual and entity to whom such Confidential Information is disclosed is bound in writing to non-use and non-disclosure obligations at least as restrictive as those set forth in this Agreement; or

(d)made by such Party to existing or potential acquirers, existing or potential collaborators, investment bankers, accountants, attorneys, existing or potential investors, merger candidates, partners, venture capital firms or other financial institutions or investors for use of such information for business purposes relevant to this Agreement or for due diligence in connection with the financing, licensing or acquisition of such Party, and provided that each individual and entity to whom such Confidential Information is disclosed is bound in writing to non-use and non-disclosure obligations (or in the case of attorneys, an equivalent professional duty of confidentiality) at least as restrictive as those set forth in this Agreement, and such Party shall remain responsible and liable to the disclosing Party for any breaches of this Agreement by such individuals or entities to whom such Confidential Information may be disclosed.

8.Indemnification

8.1.Indemnification of Relief. Acer will indemnify Relief, its Affiliates and each of their directors, officers, employees and agents (“Relief Parties”) and defend and hold each of them harmless, from and against any and all third party claims and all related losses, damages, liabilities, costs and expenses (including reasonable attorneys’ fees and expenses) (collectively, “Relief Losses”) to the extent arising from or occurring as a result of or in connection with a breach by Acer of any of its representations, warranties, covenants or agreements set forth in this Agreement. Notwithstanding the foregoing, Acer will have no obligations under this Section 8.1 to the extent Relief Losses arise from or occur as a result of or in connection with the (a) negligence or misconduct (including non-compliance with any applicable laws) on the part of a Relief Party, or (b) breach by Relief of any of its representations, warranties, covenants, or agreements set forth in this Agreement.

8.2.Indemnification of Acer. Relief will indemnify Acer, its Affiliates and each of their directors, officers, employees and agents (“Acer Parties”), and defend and hold each of them harmless, from and against any and all third party claims and all related losses, damages, liabilities, costs and expenses (including reasonable attorneys’ fees and expenses) (collectively, “Acer Losses”) to the extent arising from or occurring as a result of or in connection with Relief performing its obligations under this Agreement, or a breach by Relief of any of its representations, warranties, covenants or agreements set forth in this Agreement. Notwithstanding the foregoing, Relief will have no obligations under this Section 8.2 to the extent Acer Losses arise from or occur as a result of or in connection with the (a) negligence or misconduct (including non-compliance with any applicable laws) on the part of an Acer Party, or (b) breach by Acer of any of its representations, warranties, covenants, or agreements set forth in this Agreement.

8.3.Indemnification Procedures. Each Party’s agreement to indemnify and hold the other harmless is conditioned upon the indemnified Party (a) providing written notice to the indemnifying Party 

6

 

 

 

of any claim, demand or action arising out of the indemnified activities within thirty (30) days after the indemnified Party has actual knowledge of such claim, demand or action, (b) permitting the indemnifying Party to assume control over the investigation of and preparation and defense against any such claim, demand or action, (c) assisting the indemnifying Party, at the indemnifying Party’s reasonable expense, in the investigation, preparation and defense of any such claim, demand or action, and (d) not compromising or settling such claim, demand or action without the indemnifying Party’s prior written consent; provided, however, that, if the Party entitled to indemnification fails to promptly notify the indemnifying Party pursuant to the foregoing clause (a), the indemnifying Party will only be relieved of its indemnification obligation to the extent materially prejudiced by such failure.

9.Term and Termination

9.1.Term. This Agreement shall commence on the Effective Date and, unless terminated earlier pursuant to Sections 9.2, 9.3 or 9.4 shall continue in full force and effect until the expiration of the Option Period (including any extensions thereof made by mutual written agreement of the Parties).

9.2.Termination for Material Breach. If either Party materially breaches this Agreement at any time, the other Party shall have the right to terminate this Agreement by written notice to the breaching Party, if such material breach is not cured within thirty (30) days after written notice is given by such other Party to the breaching Party specifying the material breach.

9.3.Termination for Convenience by Relief. This Agreement may be terminated by Relief, in its sole discretion, upon written notice to Acer.

9.4.Survival. Sections 1, 2, 6.3, 7, 8, 9.4, 10, and 11, and all payment obligations accruing prior to the termination of this Agreement shall survive any termination or expiration of this Agreement. Notwithstanding the foregoing, this Agreement will terminate in its entirety upon the execution by the Parties of the Collaboration and License Agreement.

10.Dispute Resolution. In the event that a dispute arises between the Parties in the course of this Agreement, the dispute will be referred to the attention of the President of Relief and the President of Acer or their designees (the “Executive Officers”). The Executive Officers will meet as soon as reasonably possible thereafter and in good faith attempt to resolve such dispute. If, within thirty (30) days after referral of such dispute to the Executive Officers by either Party, the Executive Officers are unable to resolve such dispute, either Party will have the right to have the dispute resolved by binding arbitration, initiated by either Party on ten (10) business days’ notice to the other Party following the expiration of the thirty (30) day period referenced above (the “Initiation Notice”), under the Commercial Arbitration Rules of the American Arbitration Association (“AAA”) then pertaining (available at www.adr.org), except where those rules conflict with this provision, in which case this provision controls, applying the laws of the State of New York, without regards to its conflicts of law provisions, before three (3) independent, neutral arbitrators experienced in the pharmaceutical industry and licensing transactions in such industry. The place of arbitration shall be New York, New York. Relief and Acer shall each be entitled to select one (1) such arbitrator, with the two (2) such arbitrators so selected selecting the third (3rd) such arbitrator. In the event either Party fails to select its arbitrator within ten (10) business days of the Initiation Notice, the arbitrator selected by the other Party within such ten (10) business day period shall be entitled to select such arbitrator. The arbitration shall be conducted in English. The decision of the arbitrators will be final and binding on the Parties, and any decision of the arbitrators may be enforced in any court of competent jurisdiction. Each Party shall bear its own expenses and an equal share of the reasonable, documented expenses of the arbitration panel and any fees required by AAA to submit such matter to arbitration, unless the panel determines that any such fees or expenses are to be paid by the non-prevailing Party. Notwithstanding the 

7

 

 

 

foregoing, either Party may seek injunctive, equitable, or similar relief from a court of competent jurisdiction as necessary to enforce its rights hereunder without the requirement of arbitration.

11.Miscellaneous

11.1.Assignment/Change of Control. Neither Party shall assign this Agreement without the prior written consent of the other Party, provided, however, that a Party is permitted to assign this Agreement without such consent in connection with the transfer or sale of all or substantially all of its assets, capital stock or business related to this Agreement, or in the event of its merger or consolidation or change in control, corporate recapitalization or restructuring or similar transaction. Any permitted assignee must assume all obligations of its assignor under this Agreement. Any assignment by a Party of this Agreement in violation of this Section 11.1 shall be void.

11.2.Severability. If one or more provisions of this Agreement is held to be invalid, illegal or unenforceable, the Parties shall substitute, by mutual consent, valid provisions for such invalid, illegal or unenforceable provisions which valid provisions are, in their economic effect, sufficiently similar to the invalid provisions that it can be reasonably assumed that the Parties would have entered into this Agreement with such provisions. In the event that such provisions cannot be agreed upon, the invalidity, illegality or unenforceability of one or more provisions of the Agreement shall not affect the validity of this Agreement as a whole.

11.3.Notices. Any notice, consent or report required or permitted to be given or made under this Agreement by one Party to the other Party shall be in English and in writing, delivered personally or by email (receipt verified), facsimile or electronic transmission (including pdf), or by U.S. first class mail or express courier providing evidence of receipt, postage prepaid (where applicable), at the following address for a Party (or such other address for a Party as may be specified by like notice):

		
	
 

To Relief:

 

Relief Therapeutics

Batiment F2/F3

Avenue de Secheron 15

1202 Geneve, Switzerland

 
	
To Acer:

 

Acer Therapeutics Inc.

One Gateway Center

300 Washington Street, Suite 351

Newton, MA  02458

ATTN:  Chris Schelling

              President & CEO

 

With a copy (which shall not constitute notice) to:

Acer Therapeutics Inc.

One Gateway Center

300 Washington Street, Suite 351

Newton, MA  02458

ATTN:  Don Joseph

              Chief Legal Officer

 

All such notices, consents or reports shall be effective upon receipt.

11.4.Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the state of New York, without regard to the conflicts of law principles that would provide for application of the law of a jurisdiction other than the state of New York and excluding the United Nations Convention on Contracts for the International Sales of Goods.

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11.5.Entire Agreement. This Agreement (including the Exhibits attached hereto) contains the entire agreement by the Parties with respect to the subject matter hereof and supersedes any prior express or implied agreements, understandings and representations, either oral or written, which may have related to the subject matter hereof in any way.

11.6.Interpretation. The captions to the several Sections of this Agreement are not a part of this Agreement, but are included for convenience of reference and shall not affect its meaning or interpretation. In this Agreement: (a) the word “including” shall be deemed to be followed by the phrase “without limitation” or like expression; (b) the singular shall include the plural and vice versa; and (c) masculine, feminine and neuter pronouns and expressions shall be interchangeable.

11.7.Independent Contractors. It is expressly agreed that Relief and Acer shall be independent contractors and that the relationship between the two Parties shall not constitute a partnership, joint venture or agency or other fiduciary relationship. Neither Relief nor Acer shall have the authority to make any statements, representations or commitments of any kind, or to take any action, which shall be binding on the other Party, without the prior written consent of the other Party to do so.

11.8.Waiver; Amendment. Except as otherwise expressly provided in this Agreement, any term of this Agreement may be waived only by a written instrument executed by a duly authorized representative of the Party waiving compliance. The delay or failure of any Party at any time to require performance of any provision of this Agreement shall in no manner affect such Party’s rights at a later time to enforce the same. This Agreement may be amended, and any term of this Agreement may be modified, only by a written instrument executed by a duly authorized representative of each Party.

11.9.Binding Effect. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective legal representatives, successors and permitted assigns.

11.10.Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Facsimile and other electronically scanned signatures shall have the same effect as their originals.

 

[Signature Page Follows]

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IN WITNESS WHEREOF, the Parties hereto have caused their duly authorized representatives to execute this Option Agreement.

 

Acer Therapeutics Inc.

 

	
By  /s/ Chris Schelling
	

Printed Name: Chris Schelling

Title: President & Chief Executive Officer

 

Relief Therapeutics Holding AG

 

	
By: /s/ Tom Plitz
	
By: /s/ Thomaz Burckhardt

Printed Name: Tom Plitz Printed Name: Thomaz Burckhardt

	
Title: Member, Board of Directors 
	
Title: Member, Board of Directors 

 

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EXHIBIT A

ACER-001 Product Milestones and Royalties

		
	
Milestone
	
Payment

	
Acer and Relief shall share Net Profits from sale of ACER-001 in the Acer Territory while ACER-001 has market exclusivity
	
60% Net Profits to Relief and 40% to Acer

	
Approval of ACER-001 in the European Union for UCD
	
$4,000,000 to Acer

	
Approval of ACER-001 in the European Union for MSUD
	
$2,000,000 to Acer

	
Royalty on Net Sales from the sale of ACER-001 in the Relief Territory while ACER-001 has market exclusivity
	
15% Royalty to Acer

 

Other Financial Terms

		
	
Milestone
	
Payment

	
Signing of Collaboration and License Agreement
	
Relief pays $14,000,000 to Acer, which, at Relief’s option, can be offset by the outstanding Option Loan amount (e.g., net cash payment of $10,000,000)

 

ACER-001 Development, Regulatory and Commercial Launch Costs*

		
	
Milestone
	
Payment

	
Prepaid First Installment (July 1, 2021)
	
$10,000,000 to Acer

	
Prepaid Second Installment (January 3, 2022)
	
$10,000,000 to Acer

*Payments will only be paid upon mutual agreement of a budget for the development, regulatory, and commercial launch costs (which is expected to be an exhibit to the Collaboration and License Agreement) and the total amount paid by Relief shall not exceed $20,000,000. Acer shall be responsible for providing invoices of actual expenses for reconciliation to Relief on a quarterly basis, and will have sixty (60) days from the end of each quarter to provide such invoices.

To the extent ACER-001 is commercially launched in the United States prior to exhausting the First or Second Installment Payments, Acer shall return the balance of the First and/or Second Installment to Relief. 

In addition, for the avoidance of doubt, after approval and commercial launch of ACER-001 for the treatment of UCD or MSUD in the United States, any on-going research and development costs or indication expansion costs shall be part of the calculation of net profits in the Acer Territory.

11

 

 

 

EXHIBIT B

Acer Patents

TITLE: PALATABLE COMPOSITIONS INCLUDING SODIUM PHENYLBUTYRATE AND USES THEREOF

						
	
Country
	
Application Type
	
Status
	
Serial No.
	
Filing Date
	
Publication No.

	
EP - Europe
	
National Stage
	
Published
	
16894786.9
	
10/17/2016
	
3429559

	
WO - Patent Cooperation Treaty
	
PCT
	
National Phase
	
PCT/US2016/057415
	
10/17/2016
	
WO 2017/160345

TITLE: ADMINISTRATION OF SODIUM PHENYLBUTYRATE IN A FASTED STATE TO TREAT UREA CYCLE DISORDERS

						
	
Country
	
Application Type
	
Status
	
Serial No.
	
Filing Date
	
Publication No.

	
US - United States
	
Provisional
	
Pending
	
63/048,892
	
7/7/2020
	
 

	
US - United States
	
Provisional
	
Pending
	
63/065,272
	
8/13/2020
	
 

 

12

 

 

 

EXHIBIT C

In-Licensed BCM Patents

 

								
	
 
	
 
	
 

	
Appl. No.
	
Appl. Date
	
Matter No.
	
Title
	
Case Status (Internal)
	
Reg. No.
	
Reg. Date
	
Country

	
10803013.1
	
7/26/2010
	
1000340505
	
METHODS OF MODULATION OF BRANCHED CHAIN ACIDS AND USES THEREOF
	
Issued
	
2456304
	
8/19/2015
	
Austria

	
10803013.1
	
7/26/2010

	
10803013.1
	
 
	
1000208589
	
METHODS OF MODULATION OF BRANCHED CHAIN ACIDS AND USES THEREOF
	
Issued
	
2456304
	
8/19/2015
	
Switzerland

	
10803013.1
	
7/26/2010
	
1000208588
	
METHODS OF MODULATION OF BRANCHED CHAIN ACIDS AND USES THEREOF
	
Issued
	
2456304
	
8/19/2015
	
Germany

	
10803013.1
	
7/26/2010

	
10803013.1
	
 
	
1000354396
	
METHODS OF MODULATION OF BRANCHED CHAIN ACIDS AND USES THEREOF
	
Issued
	
2456304
	
8/19/2015
	
Spain

	
10803013.1
	
7/26/2010
	
1000204918
	
METHODS OF MODULATION OF BRANCHED CHAIN ACIDS AND USES THEREOF
	
Issued
	
2456304
	
8/19/2015
	
France

	
10803013.1
	
7/26/2010

	
10803013.1
	
 
	
1000342293
	
METHODS OF MODULATION OF BRANCHED CHAIN ACIDS AND USES THEREOF
	
Issued
	
2456304
	
8/19/2015
	
Ireland

	
10803013.1
	
7/26/2010
	
1000340517
	
METHODS OF MODULATION OF BRANCHED CHAIN ACIDS AND USES THEREOF
	
Issued
	
2456304
	
8/19/2015
	
Italy

	
10803013.1
	
7/26/2010

	
10803013.1
	
 
	
1000175630
	
METHODS OF MODULATION OF BRANCHED CHAIN ACIDS AND USES THEREOF
	
Issued
	
2456304
	
8/19/2015
	
Monaco

	
10803013.1
	
7/26/2010
	
1000204919
	
METHODS OF MODULATION OF BRANCHED CHAIN ACIDS AND USES THEREOF
	
Issued
	
2456304
	
8/19/2015
	
Netherlands

	
10803013.1
	
7/26/2010

	
15173016.5
	
 
	
1000354395
	
METHODS OF MODULATION OF BRANCHED CHAIN ACIDS AND USES THEREOF
	
Abandoned
	
 
	
 
	
European Patent Office

	
16174310.9
	
7/26/2010
	
1000198683
	
METHODS OF MODULATION OF BRANCHED CHAIN ACIDS AND USES THEREOF
	
Abandoned
	
 
	
 
	
European Patent Office

	
10803013.1
	
7/26/2010

	
10803013.1
	
 
	
1000208590
	
METHODS OF MODULATION OF BRANCHED CHAIN ACIDS AND USES THEREOF
	
Issued
	
2456304
	
8/19/2015
	
Sweden

	
PCT/US2010/043240
	
7/26/2010
	
11007293
	
METHODS OF MODULATION OF BRANCHED CHAIN ACIDS AND USES THEREOF
	
Expired
	
 
	
 
	
Patent Cooperation Treaty

 

13

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