Document:

EXHIBIT 10.2

 Exhibit 10.2 

TAX SHARING AGREEMENT 
 BETWEEN

 NAVIENT CORPORATION 
 AND

 NEW BLC CORPORATION 
 DATED
AS OF [—], 2014 

 TABLE OF CONTENTS 

 

							
	Article I Definition of Terms	  	 	1	  
		
	Article II Allocation of Tax Liabilities and Tax Benefits	  	 	9	  
	 Section 2.1
	 	Liability for and Payment of Taxes	  	 	9	  
	 (a)
	 	Navient Liabilities and Payments	  	 	9	  
	 (b)
	 	SLM BankCo Liabilities and Payments	  	 	9	  
	 Section 2.2
	 	Special Rules for Certain Tax Items	  	 	10	  
	 (a)
	 	Spin-Off Tax Items	  	 	10	  
	 (b)
	 	Bank Loan Sales	  	 	10	  
	 (c)
	 	Section 108(i) Income	  	 	10	  
		
	Article III Preparation and Filing of Tax Returns	  	 	10	  
	 Section 3.1
	 	Joint Returns	  	 	10	  
	 (a)
	 	Preparation and Filing	  	 	10	  
	 (b)
	 	Draft Joint Returns	  	 	11	  
	 (c)
	 	Provision of Information	  	 	11	  
	 (d)
	 	Information with Respect to Estimated Payments and Extension Payments	  	 	11	  
	 (e)
	 	Provision of Assistance with Respect to Joint Returns	  	 	12	  
	 (f)
	 	Engagement Letter for Certain 2014 Tax Returns	  	 	12	  
	 (g)
	 	Allocation of Third-Party Preparer Expenses	  	 	12	  
	 Section 3.2
	 	Separate Returns	  	 	13	  
	 (a)
	 	Separate Returns to be Prepared by SLM BankCo.	  	 	13	  
	 (b)
	 	Separate Returns to be Prepared by Navient	  	 	13	  
	 (c)
	 	Provision of Information and Assistance	  	 	13	  
	 Section 3.3
	 	Additional Rules Relating to the Preparation of Tax Returns	  	 	14	  
	 (a)
	 	General Rule	  	 	14	  
	 (b)
	 	Navient Separate Returns	  	 	14	  
	 (c)
	 	SLM BankCo Separate Returns	  	 	14	  
	 (d)
	 	Election to File Consolidated, Combined or Unitary Tax Returns	  	 	14	  
	 (e)
	 	Withholding and Reporting	  	 	14	  
	 (f)
	 	Standard of Performance	  	 	15	  
	 Section 3.4
	 	Reliance on Exchanged Information	  	 	15	  
	 Section 3.5
	 	Allocation of Tax Items	  	 	15	  
		
	Article IV Tax Payments	  	 	15	  
	 Section 4.1
	 	Payment of Taxes to Tax Authority	  	 	15	  
	 Section 4.2
	 	Indemnification Payments	  	 	16	  
	 (a)
	 	Tax Payments	  	 	16	  
	 (b)
	 	Credit for Prior Tax Payments	  	 	16	  
	 Section 4.3
	 	Initial Determinations and Subsequent Adjustments	  	 	17	  
	 Section 4.4
	 	Interest on Late Payments	  	 	17	  
	 Section 4.5
	 	Payments by or to Other Group Members	  	 	17	  
	 Section 4.6
	 	Procedural Matters	  	 	17	  
	 Section 4.7
	 	Tax Consequences of Payments; Tax Gross-Up	  	 	18	  

  
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	Article V Assistance and Cooperation	  	 	18	  
	 Section 5.1
	 	Cooperation	  	 	18	  
	 Section 5.2
	 	Supplemental Rulings and Supplemental Tax Opinions	  	 	18	  
		
	Article VI Tax Records	  	 	19	  
	 Section 6.1
	 	Retention of Tax Records	  	 	19	  
	 Section 6.2
	 	Access to Tax Records	  	 	19	  
	 Section 6.3
	 	Confidentiality	  	 	19	  
		
	 Article VII Tax Contests
	  	 	20	  
	 Section 7.1
	 	Notices	  	 	20	  
	 Section 7.2
	 	Control of Tax Contests	  	 	20	  
	 (a)
	 	General Rule	  	 	20	  
	 (b)
	 	Participation and Settlement Rights	  	 	20	  
	 Section 7.3
	 	Cooperation	  	 	21	  
		
	 Article VIII Restriction on Certain Actions of SLM BankCo and Navient
	  	 	22	  
	 Section 8.1
	 	General Restrictions	  	 	22	  
	 Section 8.2
	 	Certain Navient Actions Following the Effective Time	  	 	22	  
	 Section 8.3
	 	Certain SLM BankCo Actions Following the Effective Time	  	 	23	  
		
	 Article IX General Provisions
	  	 	23	  
	 Section 9.1
	 	Counterparts; Corporate Power	  	 	23	  
	 Section 9.2
	 	Governing Law	  	 	24	  
	 Section 9.3
	 	Assignability	  	 	24	  
	 Section 9.4
	 	Third-Party Beneficiaries	  	 	24	  
	 Section 9.5
	 	Notices	  	 	25	  
	 Section 9.6
	 	Severability	  	 	25	  
	 Section 9.7
	 	Force Majeure	  	 	25	  
	 Section 9.8
	 	Expenses	  	 	25	  
	 Section 9.9
	 	Headings	  	 	25	  
	 Section 9.10
	 	Termination	  	 	25	  
	 Section 9.11
	 	Waivers of Default	  	 	25	  
	 Section 9.12
	 	Amendments	  	 	26	  
	 Section 9.13
	 	Interpretation	  	 	26	  
	 Section 9.14
	 	Limitation of Liability	  	 	26	  
	 Section 9.15
	 	Performance	  	 	26	  
	 Section 9.16
	 	Predecessors or Successors	  	 	26	  
	 Section 9.17
	 	Effective Time	  	 	26	  
	 Section 9.18
	 	Change in Law	  	 	27	  
	 Section 9.19
	 	Disputes	  	 	27	  

  
 ii 

 TAX SHARING AGREEMENT 

This TAX SHARING AGREEMENT, dated as of [—], 2014 (this “Agreement”), is
by and between Navient Corporation, a Delaware corporation (“Navient”) and New BLC Corporation, a Delaware corporation (“SLM BankCo”). Unless otherwise defined in this Agreement, all capitalized terms used in this
Agreement have the meanings set forth in the Separation and Distribution Agreement, dated as of [—], by and among SLM Corporation, a Delaware corporation (“SLM”), SLM BankCo and
Navient (as amended, modified or supplemented from time to time in accordance with its terms, the “Separation Agreement”). 

RECITALS 
 WHEREAS, the
Existing SLM Board has determined that it is in the best interests of Existing SLM and its shareholders to separate into two separate publicly-traded entities; 

WHEREAS, in furtherance of the foregoing, the Existing SLM Board has determined that it is appropriate and desirable to undergo the Separation
and Distribution; 
 WHEREAS, SLM, SLM BankCo and Navient have entered into the Separation Agreement; and 

WHEREAS, the parties desire to provide for and agree upon the allocation between the parties of Taxes and Tax Benefits arising prior to, as a
result of, and subsequent to the External Spin-Off, and provide for and agree upon other matters relating to Taxes. 
 NOW, THEREFORE, in
consideration of the foregoing and the covenants and agreements set forth below, the parties hereto agree as follows: 
 Article I

 Definition of Terms 

For purposes of this Agreement (including the recitals hereof), the following terms have the following meanings: 

“2013 Engagement Letter” means the engagement letter between KPMG LLP and SLM (to be assigned by SLM to SLM BankCo in
connection with the External Spin-Off), expected to be executed in the first quarter of 2014, pursuant to which SLM engages KPMG LLP to assist in preparing certain U.S. federal, state and local income, franchise and similar Tax Returns for taxable
periods ending during 2013. 
 “2014 Accountant” has the meaning set forth in Section 3.1(f). 

“2014 Engagement Letter” has the meaning set forth in Section 3.1(f). 

“Affiliate” means, with respect to any Person, any other Person that directly or indirectly, through one or more
intermediaries, Controls, is Controlled by, or is under common Control with, such first Person. 

  
 1 

 “Agreement” has the meaning set forth in the preamble hereof. 

“Ancillary Agreements” has the meaning set forth in the Separation Agreement. 

“Applicable Date” has the meaning set forth in Section 4.2(a). 

“Bank Loan Sales” means any sales or transfers on or prior to the Spin-Off Date of student loans by Sallie Mae Bank to (or
treated as being made to, for U.S. federal income tax purposes) a Person that is a member of the Navient Group as of the Spin-Off Date (or any predecessor of such entity). 

“Business Day” means any day other than a Saturday, a Sunday or a day on which commercial banking institutions in Delaware
are authorized or obligated by law or executive order to be closed. 
 “Change of Control” has the meaning set forth in the
Separation Agreement. 
 “Code” means the U.S. Internal Revenue Code of 1986, as amended from time to time, or any
successor law. 
 “Consolidated Return” means (i) any Joint Return and (ii) any other Tax Return that reflects
Consolidated Taxes. 
 “Consolidated Tax” means (i) any Tax, for any Tax Year, which is based on or determined by
reference to Tax Items, operations, activities or assets of both the Navient Operations and the SLM BankCo Operations, and (ii) any Spin-Off Taxes. 

“Consumer Banking Business” has the meaning set forth in the Ruling Request. 

“Controlling Party” means, with respect to a Tax Contest, the party that controls such Tax Contest (or whose Group member
controls such Tax Contest) pursuant to Section 7.2(a). 
 “Control” means, with respect to any Person, the possession,
directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through ownership of securities or partnership, membership, limited liability company, or other ownership interests, by
contract or otherwise, and the terms “Controlling” and “Controlled” have meanings correlative to the foregoing. 

“Dispute” has the meaning set forth in the Separation Agreement. 

“Due Date” has the meaning set forth in Section 4.4. 

“Education Loan Management Business” has the meaning set forth in the Ruling Request. 

“Effective Time” means the time at which the External Spin-Off is effected on the Spin-Off Date. 

  
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 “External Contribution” has the meaning set forth in the Ruling Request. 

“External Spin-Off” has the meaning set forth in the Ruling Request. 

“Governmental Entity” means any national, supranational, federal, state, provincial, local or similar government; any
instrumentality or subdivision thereof; any court, administrative agency, department, board, bureau or commission thereof or other governmental authority or instrumentality; or any quasi-governmental or private body authorized to exercise any tax,
governmental or quasi-governmental authority. 
 “Group” means the SLM BankCo Group or the Navient Group, as the context
requires. 
 “Information” has the meaning set forth in the Separation Agreement. 

“Internal Contribution” has the meaning set forth in the Ruling Request. 

“Internal Controlled” has the meaning set forth in the Ruling Request. 

“Internal Controlled Business” means the “Bank Private Education Loan Servicing Business” as defined in the Ruling
Request. 
 “Internal Distributing” has the meaning set forth in the Ruling Request. 

“Internal Distributing Business” means the “Loan Servicing Business” as defined in the Ruling Request. 

“Internal Spin-Off” has the meaning set forth in the Ruling Request. 

“IRS” means the Internal Revenue Service. 

“Joint Return” means any Tax Return, for any Tax Year, that includes Tax Items, operations, activities or assets of both the
SLM BankCo Operations and the Navient Operations, determined without regard to Tax Items carried forward to such Tax Year. 

“Law” means any national, supranational, federal, state, provincial, local or similar law (including common law), statute,
code, order, ordinance, rule, regulation, treaty (including any income tax treaty), license, permit, authorization, approval, consent, decree, injunction, binding judicial or administrative interpretation or other requirement, in each case, enacted,
promulgated, issued or entered by a Governmental Entity. 
 “Navient” has the meaning set forth in the preamble hereof.

 “Navient Business” means the “Pre-Separation Education Loan Management Business” as defined in the Separation
Agreement. 
 “Navient Group” has the meaning set forth in the Separation Agreement. 

“Navient Joint Return” has the meaning set forth in Section 3.1(a). 

  
 3 

 “Navient Net Obligation” with respect to any Consolidated Tax for any Tax Year
(or portion thereof) as of any date, means the amount equal to (i) the Navient Tax Amount for such Consolidated Tax for such Tax Year (or portion thereof), plus (ii) the gross amount remitted (or deemed to be remitted pursuant to
this Agreement) to Navient by SLM BankCo for such Consolidated Tax for such Tax Year (or portion thereof) on or prior to such date, minus (iii) the gross amount remitted (or deemed to be remitted pursuant to this Agreement) by Navient to
SLM BankCo with respect to such Consolidated Tax for such Tax Year (or portion thereof) on or prior to such date. 
 “Navient
Operations” means (i) with respect to any Tax Year (or portion thereof) that ends on or before the Spin-Off Date, the assets, business, operations and activities of the Navient Business, and (ii) with respect to any Tax Year (or
portion thereof) that begins after the Spin-Off Date, the assets, business, operations and activities of the Navient Group. 

“Navient Separate Return” has the meaning set forth in Section 3.2(b). 

“Navient Separate Tax” means any Tax (other than any Spin-Off Tax), for any Tax Year, which (i) is based on or
determined by reference to Tax Items, operations, activities or assets of the Navient Operations, and (ii) is not based on or determined by reference to any Tax Items, operations, activities or assets of the SLM BankCo Operations. 

“Navient Tax Amount” with respect to any Consolidated Tax (whether or not the actual amount of such Tax is positive) for any
Tax Year (or portion thereof), means the amount equal to (i) the actual amount of such Consolidated Tax for such Tax Year (or portion thereof) minus (ii) the SLM BankCo Tax Amount for such Tax Year (or portion thereof). For the
avoidance of doubt, the Navient Tax Amount may be a negative number. 
 “Navient Tax Obligation” with respect to any
Consolidated Tax (whether or not the actual amount of such Tax is positive) for any Tax Year (or portion thereof), means the greater of (i) zero and (ii) the Navient Tax Amount for such Tax for such Tax Year (or portion thereof). 

“NOL” means net operating loss. 

“Non-Controlling Party” means, with respect to a Tax Contest, the party that is not the Controlling Party with respect to
such Tax Contest. 
 “Non-Preparer” means, with respect to a Tax Return, the party that is not responsible for the
preparation of such Tax Return under Section 3.1 or Section 3.2. 
 “Non-Preparer Item” has the meaning set forth in
Section 7.2(b). 
 “Payment Date” means (i) with respect to any U.S. federal income tax return, the due date for any
required installment of estimated taxes determined under Code Section 6655, the due date (determined without regard to extensions) for filing the return determined under Code Section 6072, and the date the return is filed, and
(ii) with respect to any other Tax Return, the corresponding dates determined under applicable Tax Law. 

  
 4 

 “Permitted Supplemental Ruling” means, with respect to a specified action, a
Supplemental Ruling to the effect that such action will not preclude (i) the Reorganization from qualifying as a reorganization within the meaning of Section 368(a)(1)(F) of the Code, (ii) the Internal Contribution and the Internal
Spin-Off from qualifying as tax-free transactions described under Sections 368(a)(1)(D) and 355 of the Code and (iii) the External Contribution and the External Spin-Off from qualifying as tax-free transactions described under Sections
368(a)(1)(D) and 355 of the Code (except, in the case of holders of SLM stock, with respect to cash received in lieu of fractional shares). 

“Person” means any individual, corporation, company, partnership, trust, incorporated or unincorporated association, joint
venture or other entity of any kind. 
 “Preparer” means, with respect to a Tax Return, the party that is responsible for
the preparation of such Tax Return pursuant to Section 3.1 or Section 3.2. 
 “Prime Rate” means the fluctuating commercial
loan rate announced by JPMorgan Chase Bank, National Association from time to time at its New York, NY office as its prime rate or base rate for U.S. Dollar loans in the United States of America in effect on the date of determination (or, if
such rate is no longer available, the prime rate or base rate for U.S. Dollar loans in the United States of America announced by such other national or international bank mutually agreed to by the parties). 

“Reorganization” has the meaning set forth in the Ruling Request. 

“Requesting Party” has the meaning set forth in Section 5.2. 

“Return Signer” has the meaning set forth in Section 3.1(a). 

“Ruling” means the private letter ruling in connection with the Separation in response to the Ruling Request anticipated to
be received by SLM from the IRS on or before the Spin-Off Date. 
 “Ruling Request” means (1) the request for ruling,
dated August 21, 2013, filed on behalf of SLM with the IRS in connection with the Separation, (2) the supplement to ruling request, dated November 27, 2013, filed on behalf of SLM with the IRS in connection with the Separation, and
(3) any other correspondence or supplemental materials submitted to the IRS in connection with obtaining the Ruling. 
 “Sallie
Mae Bank” means Sallie Mae Bank, a Utah industrial bank and insured depository institution. 
 “Section 108(i)
Income” means any income that both (i) arose in connection with the reacquisition after December 31, 2008, and before January 1, 2011, of a debt instrument or a swap unwind related to such a reacquisition, and (ii) was
deferred by the SLM consolidated group or any member thereof under Section 108(i) of the Code. 
 “Separate Return”
means any Tax Return that is not a Joint Return. 

  
 5 

 “Separate Return Method” means the principles and methodology used to calculate
net taxes payable/receivable by the BankCo Group for purposes of the audited carve-out financial statements of BankCo and its subsidiaries for 2011 through 2014, as adjusted pursuant to Section 2.2 and the indemnification provisions of Article
III. 
 “Separation Agreement” has the meaning set forth in the preamble hereof. 

“Separation Effective Time” means the “Effective Time” as defined in the Separation Agreement. 

“SLM” has the meaning set forth in the preamble hereof. 

“SLM BankCo” has the meaning set forth in the preamble hereof. 

“SLM BankCo Business” means the “Pre-Separation Consumer Banking Business” as defined in the Separation Agreement.

 “SLM BankCo Group” has the meaning set forth in the Separation Agreement. 

“SLM Bankco Joint Return” has the meaning set forth in Section 3.1(a). 

“SLM BankCo Net Obligation” with respect to any Consolidated Tax for any Tax Year (or portion thereof) as of any date, means
the amount equal to (i) the SLM BankCo Tax Amount for such Consolidated Tax for such Tax Year (or portion thereof), plus (ii) the gross amount remitted (or deemed to be remitted pursuant to this Agreement) to SLM BankCo by Navient
for such Consolidated Tax for such Tax Year (or portion thereof) on or prior to such date, minus (iii) the gross amount remitted (or deemed to be remitted pursuant to this Agreement) by SLM BankCo to Navient with respect to such
Consolidated Tax for such Tax Year (or portion thereof) on or prior to such date. 
 “SLM BankCo Operations” means
(i) with respect to any Tax Year (or portion thereof) that ends on or before the Spin-Off Date, the assets, business, operations and activities of the SLM BankCo Business, and (ii) with respect to any Tax Year (or portion thereof) that
begins after the Spin-Off Date, the assets, business, operations and activities of the SLM BankCo Group. 
 “SLM BankCo Separate
Return” has the meaning set forth in Section 3.2(a). 
 “SLM BankCo Separate Tax” means any Tax (other than any
Spin-Off Tax), for any Tax Year, which (i) is based on or determined by reference to Tax Items, operations, activities or assets of the SLM BankCo Operations, and (ii) is not based on or determined by reference to any Tax Items,
operations, activities or assets of the Navient Operations. 
 “SLM BankCo Tax Amount” with respect to any Consolidated Tax
(whether or not the actual amount of such Tax is positive) for any Tax Year (or portion thereof), means the amount of the net payable of the SLM BankCo Group with respect to such Tax and Tax Year (or portion thereof) determined under the Separate
Return Method (not taking into account any payments actually 

  
 6 

 
made or deemed to be made by the SLM group, Navient Group or SLM BankCo Group with respect to such Tax). For the avoidance of doubt, the amount of the SLM BankCo Tax Amount with respect to a
Consolidated Tax for a Tax Year may be negative if, for example, Tax Benefits allocable to SLM BankCo are used to reduce the amount of such Consolidated Tax for such Tax Year. 

“SLM BankCo Tax Obligation” with respect to any Consolidated Tax (whether or not the actual amount of such Tax is positive)
for any Tax Year (or portion thereof), means the greater of (i) zero and (ii) the SLM BankCo Tax Amount for such Tax for such Tax Year (or portion thereof). 

“Spin-Off Date” means the date on which the External Spin-Off occurs. 

“Spin-Off Tax Payment” means any payment (or portion thereof) required to be made by one party to the other party under this
Agreement (including any indirect payment made under this Agreement by means of the first party satisfying a Tax liability imposed by applicable Tax Law on such other party without reimbursement by such other party) to the extent such payment arises
as a result of an allocation of Spin-Off Taxes or Spin-Off Tax Items pursuant to Section 2.2(a)(i) or Section 2.2(a)(ii); provided that any additional amounts payable pursuant to Section 4.7 shall not be treated as Spin-Off Tax Payments. 

“Spin-Off Tax” means any Taxes resulting from the Reorganization, Internal Contribution, External Contribution, Internal
Spin-Off or External Spin-Off, or the contribution of all of the outstanding capital stock of Private ServiceCo to Sallie Mae Bank (pursuant to Section 2.1(q) of the Separation Agreement), excluding any Taxes resulting from any Bank Loan Sale.

 “Spin-Off Tax Items” means any Tax Items resulting from the Reorganization, Internal Contribution, External
Contribution, Internal Spin-Off or External Spin-Off, or the contribution of all of the outstanding capital stock of Private ServiceCo to Sallie Mae Bank (pursuant to Section 2.1(q) of the Separation Agreement), excluding any gain, income or
other Tax Item from any Bank Loan Sale. 
 “Subsidiary” has the meaning set forth in the Separation Agreement. 

“Supplemental IRS Submissions” means any request for a Supplemental Ruling and each supplemental submission and other
correspondence and supplemental materials submitted to the IRS in connection with obtaining any Supplemental Ruling. 

“Supplemental Ruling” means any private letter ruling obtained by SLM, SLM BankCo or Navient from the IRS which supplements
or otherwise modifies the Ruling. 
 “Supplemental Tax Opinion” means, with respect to a specified action, an opinion
(other than the Tax Opinion) from Tax Counsel to the effect that such action will not preclude (i) the Reorganization from qualifying as a reorganization within the meaning of Section 368(a)(1)(F) of the Code, (ii) the Internal
Contribution and the Internal Spin-Off from qualifying as tax-free transactions described under Sections 368(a)(1)(D) and 355 of the Code and (iii) the External Contribution and the External Spin-Off from qualifying as tax-free transactions
described under Sections 368(a)(1)(D) and 355 of the Code (except, in the case of holders of 

  
 7 

 
SLM stock, with respect to cash received in lieu of fractional shares). No opinion relied upon by Navient or SLM BankCo to satisfy the requirements of Section 8.2 or Section 8.3, respectively,
shall be considered a “Supplemental Tax Opinion” unless such opinion is, in addition to the requirements above, reasonably satisfactory to SLM BankCo (in the case of an opinion provided under Section 8.2) or Navient (in the case of an
opinion provided under Section 8.3), which opinion may rely upon a Supplemental Ruling and may rely upon, and may assume the accuracy of, any representations given in any Supplemental IRS Submission and any customary representations contained in an
officer’s certificate delivered by an officer of SLM BankCo or Navient to Tax Counsel. 
 “Tax Event” has the meaning
set forth in Section 4.2(a). 
 “Tax” or “Taxes” means all forms of taxation imposed by a
Governmental Entity, whenever created or imposed, and whether of the United States or elsewhere, and whether imposed by a local, municipal, state, national, federal, or other body, and without limiting the generality of the foregoing, shall include
income, sales, use, ad valorem, gross receipts, value added, franchise, transfer, recording, withholding, payroll, employment, excise, occupation, premium, and property taxes, together with any related interest, penalties, additions to tax or
additional amounts imposed (in any case) by any Governmental Entity. 
 “Tax Authority” means, with respect to any Tax, the
Governmental Entity or political subdivision, agency, commission or authority thereof that imposes such Tax or that is charged with the assessment, determination or collection of such Tax. 

“Tax Benefit” means a Tax Item that generally decreases taxable income or Taxes payable of a taxpayer, including a credit,
deductible loss or other deduction. 
 “Tax Contest” means an audit, review or examination by a Governmental Entity or Tax
Authority, or any other administrative or judicial proceeding, with the purpose or effect of examining, determining or redetermining Taxes (including any administrative or judicial review of any claim for Tax refund). 

“Tax Counsel” means (i) with respect to the Tax Opinion, Baker Botts L.L.P., and (ii) with respect to a
Supplemental Tax Opinion obtained by SLM BankCo or Navient, a nationally recognized law firm or accounting firm designated by the party that obtains such opinion. 

“Tax Item” means any item of income, gain, loss, deduction, credit or other attribute that may have the effect of increasing
or decreasing taxable income or Taxes payable. 
 “Tax Law” means the Law, including any controlling judicial or
administrative interpretations of such Law, relating to any Tax. 
 “Tax Materials” means (i) the Ruling,
(ii) the Ruling Request and any other submission to the IRS in connection with the Ruling, (iii) the representation letter delivered to Tax Counsel in connection with the delivery of the Tax Opinion, (iv) any other materials delivered
or deliverable by SLM, SLM BankCo, Navient or others in connection with the rendering by Tax Counsel of the 

  
 8 

 
Tax Opinion or the issuance by the IRS of the Ruling, and (v) with respect to a party that requests or receives a Supplemental Ruling, or delivers a representation letter or other materials
in connection with a Supplemental Ruling or Supplemental Tax Opinion, such Supplemental Ruling, representation letter or other materials, as the case may be. 

“Tax Opinion” means the opinion to be delivered by Tax Counsel on or prior to the Spin-Off Date to the effect that
(i) the Internal Contribution and the Internal Spin-Off will qualify as tax-free transactions described under Sections 368(a)(1)(D) and 355 of the Code and (ii) the External Contribution and the External Spin-Off will qualify as tax-free
transactions described under Sections 368(a)(1)(D) and 355 of the Code (except, in the case of the holders of SLM stock, with respect to cash received in lieu of fractional shares). 

“Tax Records” means Tax Returns, Tax Return work papers, documentation relating to any Tax Contests, and any other books of
account or records required to be maintained under applicable Tax Laws (including but not limited to Section 6001 of the Code) or under any record retention agreement with any Tax Authority. 

“Tax Return” means any return, information return, report, declaration, election, questionnaire, notice, form, claim for
refund or other document filed or required to be filed with any Governmental Entity or Tax Authority with respect to Taxes (whether or not a payment is required to be made with respect to such filing), and any supplement, amendment, appendix,
exhibit, schedule or attachment thereto. 
 “Tax Year” means with respect to any Tax, the year, or other period, if
applicable, for which the Tax is reported as provided under applicable Tax Law. 
 “Treasury Regulations” means the
regulations promulgated from time to time under the Code as in effect for the relevant Tax Year. 
 Article II 

Allocation of Tax Liabilities and Tax Benefits 

Section 2.1 Liability for and Payment of Taxes. Except as otherwise provided in this Agreement: 

(a) Navient Liabilities and Payments. Navient shall be liable for and pay (i) all Navient Separate Taxes, and (ii) the amount
of all Navient Tax Obligations with respect to Consolidated Taxes, either to the applicable Tax Authority and/or to SLM BankCo as required by Article IV. 

(b) SLM BankCo Liabilities and Payments. SLM BankCo shall be liable for and pay (i) all SLM BankCo Separate Taxes and
(ii) the amount of all SLM BankCo Tax Obligations with respect to Consolidated Taxes, either to the applicable Tax Authority and/or to Navient as required by Article IV. 

  
 9 

 Section 2.2 Special Rules for Certain Tax Items. 

(a) Spin-Off Tax Items. 

(i) Responsibility of SLM BankCo. To the extent that the recognition of any Spin-Off Tax Items is directly attributable to SLM
BankCo’s breach of any covenant or negative covenant in Article VIII, such Spin-Off Tax Items shall be treated as Tax Items of, and allocated to, the SLM BankCo Group for purposes of applying the Separate Return Method. 

(ii) Responsibility of Navient. To the extent that the recognition of any Spin-Off Tax Items is directly attributable to
Navient’s breach of any covenant or negative covenant in Article VIII, such Spin-Off Tax Items shall be treated as Tax Items of, and allocated to, the Navient Group (and not the SLM BankCo Group) for purposes of applying the Separate Return
Method. 
 (iii) Joint Responsibility. To the extent any Spin-Off Tax Item is not allocated under Section 2.2(a)(i) or
Section 2.2(a)(ii), (x) fifty percent (50%) of such Spin-Off Tax Item shall be treated as a Tax Item of, and allocated to, the SLM BankCo Group for purposes of applying the Separate Return Method, and (y) fifty percent
(50%) of such Spin-Off Tax Item shall be treated as a Tax Item of, and allocated to, the Navient Group (and not the SLM BankCo Group) for purposes of applying the Separate Return Method. 

(b) Bank Loan Sales. Notwithstanding anything to the contrary in this Agreement, for all purposes of this Agreement (including, without
limitation, for purposes of applying the Separate Return Method and determining whether a Tax Return is a Joint Return), any Tax Items resulting from a Bank Loan Sale shall be treated as Tax Items of, and allocated to, SLM BankCo. 

(c) Section 108(i) Income. Reserved 

Article III 

Preparation and Filing of Tax Returns. 

Section 3.1 Joint Returns. 

(a) Preparation and Filing. Navient shall be responsible for preparing (or causing to be prepared) any Joint Return for a taxable year
(or other applicable taxable period) ending on or before December 31, 2013 (“Navient Joint Returns”). SLM BankCo shall be responsible for (i) preparing (or causing to be prepared) any Joint Return for a taxable year (or
other applicable taxable 

  
 10 

 
period) ending after December 31, 2013 (an “SLM Bankco Joint Return”), and (ii) calculating the amount of U.S. federal estimated income taxes that are
Consolidated Taxes for any quarter after the first quarter of 2014. The party responsible for signing any such Joint Return (or whose Group member is responsible for signing such Joint Return) under applicable Law (the “Return
Signer”) shall sign (or cause to be signed) such Joint Return and file (or cause to be filed) such Joint Return with the applicable Tax Authority. For the avoidance of doubt, SLM BankCo shall be responsible for signing and filing the U.S.
federal income tax return for the SLM consolidated group for the taxable year ending December 31, 2013 and the U.S. federal income tax return for the SLM/SLM BankCo consolidated group for the taxable year ending December 31, 2014. 

(b) Draft Joint Returns. The Preparer of a Joint Return shall provide the Non-Preparer of such Joint Return with a substantially final
draft of such Joint Return (other than a Joint Return filed prior to the Spin-Off Date) at least 10 Business Days prior to the due date for such Joint Return (or, if there is no due date for such Joint Return, as soon as reasonably practical). Such
Non-Preparer shall promptly notify such Preparer of any objections that it may have to any items or elections set forth in any such draft Joint Return. Notwithstanding anything to the contrary in Section 3.3(a), (i) Navient and SLM BankCo
shall work together to resolve in good faith any such objection and to mutually consent to the filing of such Joint Return, and (ii) after the filing of any original Joint Return, Navient and SLM BankCo shall work together, at the request of
the other party, to determine whether to file any amended Joint Return. If the Preparer fails to provide such draft Joint Return within the time period provided in this Section 3.1(b) or fails to properly file such Joint Return within two
Business Days following the resolution of all such objections, then notwithstanding any other provision of this Agreement, such Preparer shall be liable for, and shall indemnify and hold harmless each member of the Non-Preparer’s Group from and
against, any penalties, interest, or other payment obligation imposed by reason of any resulting delay in filing such return. 
 (c)
Provision of Information. At the request of the Preparer of a Joint Return, the Non-Preparer of such Joint Return shall provide the Preparer with any information in its possession (or in the possession of any member of the Non-Preparer’s
Group) reasonably necessary for the Preparer to properly and timely prepare such Joint Return (including, without limitation, to the extent required, (i) the amount of taxable income of such Non-Preparer’s Group for the period ending on
the Spin-Off Date based on the closing of the books method, and (ii) the amount of taxable income recognized by such Non-Preparer’s Group as a result of the External Spin-Off). Such Non-Preparer shall provide such information at least
thirty days prior to the extended due date of such Joint Return or, if later, within fifteen Business Days of its receipt of such request. If such Non-Preparer (or any member of its Group) is in possession of information and fails to provide such
information within the time period provided in this Section 3.1(c) or in the form reasonably requested by the Preparer to permit the timely filing of such Joint Return, then notwithstanding any other provision of this Agreement, such Non-Preparer
shall be liable for, and shall indemnify and hold harmless each member of the Preparer’s Group from and against, any penalties, interest, or other payment obligation imposed by reason of any resulting delay in filing such return. 

(d) Information with Respect to Estimated Payments and Extension Payments. At the request of the Preparer of a Joint Return, the
Non-Preparer of such Joint Return shall provide the Preparer with all information in its possession (or in the possession of 

  
 11 

 
any member of its Group) that the Preparer needs to determine the amount of Taxes due on any Payment Date with respect such Joint Return. Such Non-Preparer shall provide such information at least
thirty days prior to such Payment Date or, if later, within fifteen Business Days of its receipt of such request. In the event that such Non-Preparer fails to provide information within the time period provided in this Section 3.1(d) or in the
form reasonably requested by the Preparer to permit the timely payment of such Taxes, the indemnification principles of Section 3.1(c) shall apply with respect to any penalties, interest, or other payments imposed by reason of any resulting delay in
paying such Taxes. 
 (e) Provision of Assistance with Respect to Joint Returns. At the request of the Preparer of a Joint Return,
the Non-Preparer of such Joint Return shall take (at its own cost and expense), and shall cause the members of its Group to take (at their own cost and expense), any reasonable action (e.g., filing a ruling request with the relevant Tax
Authority or executing a power of attorney) that is reasonably necessary in order for such Preparer or any other member of the Preparer’s Group to prepare, file, amend or take any other action with respect to such Joint Return. In the event
that such Non-Preparer fails to take, or cause to be taken, any such requested action, the indemnification principles of Section 3.1(c) shall apply with respect to any penalties, interest, or other payments imposed by reason of a failure to timely
take any such requested action. 
 (f) Engagement Letter for Certain 2014 Tax Returns. SLM Bankco shall enter into an engagement
letter (the “2014 Engagement Letter”) with a third-party accounting firm (the “2014 Accountant”) pursuant to which such accounting firm shall agree to (i) assist in preparing certain U.S. federal, state and
local income, franchise and similar Tax Returns for taxable periods ending during 2014 and (ii) calculating U.S. federal estimated income taxes for the second, third and fourth quarters of 2014 and the 2014 extension payments. SLM Bankco shall
provide a draft of the 2014 Engagement Letter to Navient before the execution thereof and Navient shall notify SLM Bankco of any objections that it may have thereto within 10 Business Days after the receipt thereof. Failure of Navient to so object
shall be deemed to constitute Navient’s written consent to execute such 2014 Engagement Letter. SLM Bankco and Navient shall work together in good faith to resolve any such objections, and the 2014 Engagement Letter shall not be executed
without the prior written consent of Navient, such consent not to be unreasonably withheld or delayed. 
 (g) Allocation of Third-Party
Preparer Expenses. Any fees, costs or expenses payable to KPMG LLP (or its affiliates) under the 2013 Engagement Letter that have not been paid prior to the Spin-Off Date shall be allocated between Navient and SLM BankCo in proportion to the
number of entities for which KPMG LLP (or its affiliates) prepares a pro forma separate company return pursuant to the 2013 Engagement Letter that are in the Navient Group and the SLM BankCo Group, respectively. Any fees, costs or expenses payable
to the 2014 Accountant (or its affiliates) under the 2014 Engagement Letter shall be allocated between Navient and SLM BankCo in proportion to the number of entities for which the 2014 Accountant (or its affiliates) prepares a pro forma separate
company return pursuant to the 2014 Engagement Letter that are in the Navient Group and the SLM BankCo Group, respectively. SLM BankCo shall be responsible for remitting such fees, costs and expenses to KPMG LLP or the 2014 Accountant, as the case
may be. Navient shall remit to SLM BankCo the portion of any such fees, costs or expenses that are allocated to Navient pursuant to this 

  
 12 

 
Section 3.1(g) by the date that is the later of (i) five Business Days after the date that SLM BankCo remits such fees, costs or expenses to KPMG LLP or the 2014 Accountant, as
applicable, and (ii) seven Business Days after SLM BankCo gives Navient notice requesting such amount. 
 Section 3.2
Separate Returns. 
 (a) Separate Returns to be Prepared by SLM BankCo. SLM BankCo shall be responsible for preparing
and filing (or causing to be prepared and filed) any Separate Return that includes Tax Items, operations, activities or assets of the SLM BankCo Operations, determined without regard to Tax Items carried forward to such Tax Year (an “SLM
BankCo Separate Return”). 
 (b) Separate Returns to be Prepared by Navient. Navient shall be responsible for preparing and
filing (or causing to be prepared and filed) any Separate Return that includes Tax Items, operations, activities or assets of the Navient Operations, determined without regard to Tax Items carried forward to such Tax Year (a “Navient
Separate Return”). 
 (c) Provision of Information and Assistance. 

(i) Provision of Information. SLM BankCo shall provide to Navient, and Navient shall provide to SLM BankCo, any information in
its possession (or in the possession of a member of its Group) requested by the other party that such party requesting such information reasonably needs to properly and timely file any Separate Returns pursuant to Section 3.2(a) or (b). Such
information shall be provided within the time prescribed by Section 3.1(c) for the provision of information for Joint Returns. In the event that SLM BankCo or Navient fails to provide information within such time period or in the form reasonably
requested by the other party to permit the timely filing of a Separate Return, the indemnification principles of Section 3.1(c) shall apply with respect to any penalties, interest, or other payments imposed against any member of the SLM BankCo Group
or the Navient Group by reason of any resulting delay in filing such return. 
 (ii) Assistance. At the request of Navient,
SLM BankCo shall take (at its own cost and expense), and shall cause the members of the SLM BankCo Group to take (at their own cost and expense), any reasonable action (e.g., executing a power of attorney) that is reasonably necessary in
order for Navient or any other member of the Navient Group to prepare, file, amend or take any other action with respect to a Navient Separate Return. At the request of SLM BankCo, Navient shall take (at its own cost and expense), and shall cause
the members of the Navient Group to take (at their own cost and expense), any reasonable action (e.g., executing a power of attorney) that is reasonably necessary in order for SLM BankCo or any other member of the SLM BankCo Group to prepare,
file, amend or take any other action with respect to an SLM BankCo Separate Return. In the event that SLM BankCo or Navient, as the case may be, fails to take, or cause to be taken, any such requested action, the indemnification principles of
Section 3.1(c) shall apply with respect to any penalties, interest, or other payments imposed against any member of either Group by reason of a failure to timely take any such requested action. 

  
 13 

 Section 3.3 Additional Rules Relating to the Preparation of Tax
Returns. 
 (a) General Rule. Except as otherwise provided in this Agreement (including, without limitation, under
Section 3.3(b) and Section 3.3(c)), the party responsible for filing (or causing to be filed) a Tax Return pursuant to Section 3.2 shall have the exclusive right, in its sole discretion, with respect to such Tax Return to determine
(i) the manner in which such Tax Return shall be prepared and filed, including the elections, methods of accounting, positions, conventions and principles of taxation to be used and the manner in which any Tax Item shall be reported,
(ii) whether any extensions may be requested, (iii) whether an amended Tax Return shall be filed, (iv) whether any claims for refund shall be made, (v) whether any refunds shall be paid by way of refund or credited against any
liability for the related Tax, and (vi) whether to retain outside firms to prepare or review such Tax Return. 
 (b) Navient
Separate Returns. With respect to any Navient Separate Return: 
 (i) Navient may not take (and shall cause the members of the Navient
Group not to take) any positions that it knows, or reasonably should know, would adversely affect any member of the SLM BankCo Group, without the prior written consent of SLM BankCo, except to the extent taking such position is consistent with the
past practice of the SLM group or is required by applicable Law; and 
 (ii) Navient and other members of the Navient Group must allocate
Tax Items between such Navient Separate Return and any related Joint Return in a manner that is consistent with the reporting of such Tax Items on the related Joint Return. 

(c) SLM BankCo Separate Returns. With respect to any SLM BankCo Separate Return, SLM BankCo may not take (and shall cause the members
of the SLM BankCo Group not to take) any positions that it knows, or reasonably should know, would adversely affect any member of the Navient Group, without the prior written consent of Navient, except to the extent taking such position is
consistent with the past practice of the SLM group or is required by applicable Law. 
 (d) Election to File Consolidated, Combined or
Unitary Tax Returns. Navient and SLM BankCo shall cooperate to determine whether to file (or cause to be filed) any Tax Return on a consolidated, combined or unitary basis if such Tax Return would include at least one member of each Group and
the filing of such Tax Return on such basis is elective under the relevant Tax Law. 
 (e) Withholding and Reporting. With respect to
stock of SLM BankCo delivered to any Person, SLM BankCo and Navient shall cooperate (and shall cause members of their respective Groups to cooperate) so as to permit SLM BankCo to discharge any applicable Tax withholding and Tax reporting
obligations, including the appointment of Navient or one or more of its Affiliates as the withholding and reporting agent if SLM BankCo or one or more of its Affiliates is not otherwise required or permitted to withhold and report under applicable
Tax Law. With respect to stock of Navient delivered to any Person, SLM BankCo and Navient shall cooperate (and shall cause members of their respective Groups to cooperate) so as to permit Navient to discharge any applicable Tax

  
 14 

 
withholding and Tax reporting obligations, including the appointment of SLM BankCo or one or more of its Affiliates as the withholding and reporting agent if Navient or one or more of its
Affiliates is not otherwise required or permitted to withhold and report under applicable Tax Law. 
 (f) Standard of
Performance. Navient and SLM BankCo shall prepare Navient Joint Returns and SLM BankCo Joint Returns, respectively, with the same general degree of care as they use in preparing Separate Returns. Notwithstanding the preceding sentence, neither
Navient nor SLM BankCo shall be liable for any additional Taxes for which the other is otherwise liable under Article II that result from a redetermination in a Tax Contest, regardless of whether such Taxes arise as a result of Navient’s or SLM
BankCo’s failure to exercise such degree of care. 
 Section 3.4 Reliance on Exchanged Information. If a member of
the Navient Group supplies information to a member of the SLM BankCo Group, or a member of the SLM BankCo Group supplies information to a member of the Navient Group, in connection with the preparation of a Tax Return and an officer of the
requesting member intends to sign a statement or other document under penalties of perjury in reliance upon the accuracy of such information, then a duly authorized officer of the member supplying such information shall certify (upon the request of
such other member), to such officer’s knowledge and belief, the accuracy and completeness of the information so supplied. 
 Section
3.5 Allocation of Tax Items. Navient and SLM BankCo shall cooperate to determine the allocation of any applicable Tax Items and Tax attributes (e.g., NOLs, Tax credits and earnings and profits) as of the Effective Time,
in accordance with applicable Tax Laws, among SLM BankCo, each other SLM BankCo Group member, Navient, and each other Navient Group member. SLM BankCo and Navient hereby agree that each such Tax Item shall be allocated in a manner consistent with
allocations under the Separate Return Method to the extent permitted under applicable Law. 
 Article IV 

Tax Payments 
 Section 4.1
Payment of Taxes to Tax Authority. SLM BankCo shall be responsible for remitting to the proper Tax Authority the Tax shown on any Joint Return for which a member of the SLM BankCo Group is the Return Signer or any SLM BankCo
Separate Return (including Taxes for which Navient is wholly or partially liable pursuant to Article II), and Navient shall be responsible for remitting to the proper Tax Authority the Tax shown on any Joint Return for which a member of the Navient
Group is the Return Signer or any Navient Separate Return (including Taxes for which SLM BankCo is wholly or partially liable pursuant to Article II). SLM BankCo shall be responsible for remitting to the U.S. government U.S. federal estimated income
Taxes for the SLM consolidated group and the SLM BankCo consolidated group, as applicable, for each quarter in 2014 (to the extent such amounts have not been remitted prior to the Spin-Off Date). 

  
 15 

 Section 4.2 Indemnification Payments. 

(a) Tax Payments. In connection with any payment of, or any filing of a Consolidated Return with respect to, any Consolidated Tax for
any Tax Year (or portion thereof) (a “Tax Event”) on a date after the Spin-Off Date (the “Applicable Date”), the parties shall cooperate to determine the amount of the Navient Tax Amount and SLM BankCo Tax Amount
with respect to such Consolidated Tax for such Tax Year (or portion thereof) as of the Applicable Date. If Navient is responsible for remitting such Consolidated Tax to, or filing (or causing to be filed) such Consolidated Return with, the
applicable Tax Authority pursuant to Article III or Section 4.1, as applicable, Navient shall notify SLM BankCo prior to making such payment or filing, and (i) if the SLM BankCo Net Obligation with respect to such Consolidated Tax for such
Tax Year (or portion thereof) is or will be positive as of the Applicable Date (not taking into account any payment made pursuant to this sentence with respect to such Tax Event), SLM BankCo shall remit to Navient the amount of such SLM BankCo Net
Obligation, and (ii) if the SLM BankCo Net Obligation with respect to such Consolidated Tax for such Tax Year (or portion thereof) is or will be negative as of the Applicable Date (not taking into account any payment made pursuant to this
sentence with respect to such Tax Event), Navient shall remit to SLM BankCo an amount equal to the absolute value of such SLM BankCo Net Obligation, in each case by the date that is the later of (x) three Business Days prior to the date that
Navient remits such Tax payment to such Tax Authority or files such Consolidated Return, as applicable and (y) seven Business Days after the party entitled to payment gives notice to the other party requesting such amount. If SLM BankCo is
responsible for remitting such Consolidated Tax to, or filing (or causing to be filed) such Consolidated Return with, the applicable Tax Authority pursuant to Article III or Section 4.1, as applicable, SLM BankCo shall notify Navient prior to
making such payment or filing, and (i) if the Navient Net Obligation with respect to such Consolidated Tax for such Tax Year (or portion thereof) is or will be positive as of the Applicable Date (not taking into account any payment made
pursuant to this sentence with respect to such Tax Event), Navient shall remit to SLM BankCo the amount of such Navient Net Obligation, and (ii) if the Navient Net Obligation is or will be negative as of the Applicable Date (not taking into
account any payment made pursuant to this sentence with respect to such Tax Event), SLM BankCo shall remit to Navient an amount equal to the absolute value of such Navient Tax Obligation, in each case by the date that is the later of (x) three
Business Days prior to the date that SLM BankCo remits such Tax payment to such Tax Authority or files such Consolidated Return, as applicable and (y) seven Business Days after the party entitled to payment gives notice to the other party
requesting such amount. 
 (b) Credit for Prior Tax Payments. SLM BankCo shall be deemed to have paid any amount related to Taxes as
of the Effective Time to the extent the SLM BankCo Group is treated as having paid such amount under the Separate Return Method applied as of the Effective Time. Any such amount treated as paid to a member of the SLM group for purposes of the
Separate Return Method shall be treated as having been paid to Navient for purposes of this Agreement. Navient shall be deemed to have paid any applicable amount related to Taxes as of the Effective Time to the extent that such amount was actually
paid as of the Effective Time or treated as paid under the Separate Return Method as of the Effective Time and the BankCo Group is not treated as having paid such amount pursuant to the previous sentence. 

  
 16 

 Section 4.3 Initial Determinations and Subsequent Adjustments. The initial
determination of the amount of any payment that one party is required to make to another under this Agreement shall be made on the basis of the Tax Return as filed or, if the Tax to which the payment relates is not reported on a Tax Return, on the
basis of the amount of Tax initially paid to the Tax Authority. The amounts paid under this Agreement will be redetermined, and additional payments relating to such redetermination will be made, as appropriate, if as a result of an audit by a Tax
Authority or an amended Tax Return or for any other reason (w) additional Taxes are subsequently paid, (x) a refund of such Taxes is received, (y) the party using a Tax Benefit changes, or (z) the amount or character of any Tax
Item is adjusted or redetermined. Each payment required by the immediately preceding sentence (i) as a result of a payment of additional Taxes will be due thirty days after the date on which the additional Taxes were paid or, if later, fifteen
days after the party that made such payment of additional Taxes gives notice to the other party requesting reimbursement, (ii) as a result of the receipt of a refund will be due thirty days after the refund was received, (iii) as a result
of a change in use of a Tax Benefit (to which clauses (i) and (ii) do not apply) will be due thirty days after the date on which the final action resulting in such change is taken by a Tax Authority or either party or any of their
Subsidiaries, or (iv) as a result of an adjustment or redetermination of the amount or character of a Tax Item (to which clauses (i) and (ii) do not apply) will be due thirty days after the date on which the final action resulting in
such adjustment or redetermination is taken by a Tax Authority or either party or any of their Subsidiaries. If a payment is made as a result of an audit by a Tax Authority which does not conclude the matter, further adjusting payments will be made,
as appropriate, to reflect the outcome of subsequent administrative or judicial proceedings. 
 Section 4.4 Interest on Late
Payments. Payments pursuant to this Agreement that are not made by the date prescribed in this Agreement or, if no such date is prescribed, within fifteen days after written demand for payment is made (the “Due Date”)
shall bear interest for the period from and including the date immediately following the Due Date through and including the date of payment at a per annum rate equal to the Prime Rate on the Due Date (or, if the Due Date is not a Business Day, as of
11:00 a.m. New York, NY time on the first Business Day following the Due Date) plus 2%, subject to any maximum amount permitted by applicable Law. Such rate shall be redetermined at the beginning of each calendar quarter following such Due Date.
Such interest will be payable at the same time as the payment to which it relates and shall be calculated on the basis of a year of 365 days and the actual number of days for which due. 

Section 4.5 Payments by or to Other Group Members. When appropriate under the circumstances to reflect the underlying
liability for a Tax or entitlement to a Tax refund or Tax Benefit, a payment which is required to be made by or to SLM BankCo or Navient may be made by or to another member of the SLM BankCo Group or the Navient Group, as appropriate, but nothing in
this Section 4.5 shall relieve SLM BankCo or Navient of its obligations under this Agreement. 
 Section 4.6 Procedural
Matters. Any notice requesting payment delivered to the indemnifying party in accordance with Section 9.5 shall show the amount due and owing together with a schedule calculating in reasonable detail such amount (and shall include any
relevant Tax Return, statement, bill or invoice related to such Taxes, costs, expenses or other amounts due and owing). Payments shall be deemed made when received. If the indemnifying party fails to make a payment to the indemnified party within
the time 

  
 17 

 
period set forth in this Article IV, the indemnifying party shall pay to the indemnified party, in addition to interest that accrues pursuant to Section 4.4, any costs or expenses incurred by the
indemnified party to secure such payment or to satisfy the indemnifying party’s portion of the obligation giving rise to the indemnification payment. 

Section 4.7 Tax Consequences of Payments; Tax Gross-Up. For all tax purposes, to the extent permitted by applicable Tax
Law, the parties will treat any payment made pursuant to this Agreement as a capital contribution made by SLM BankCo to Navient or as a distribution made by Navient to SLM BankCo, as the case may be, on the date recited above on which the parties
entered into the Agreement. If any Spin-Off Tax Payment (or portion thereof) directly or indirectly causes an increase in Taxes for which the payee would otherwise be liable under Article II, the payer of such Spin-Off Tax Payment shall be required
to pay the payee (either by means of direct payment or by means of offset against amounts otherwise due under this Agreement from such payee to such payer) an additional amount, such that the amount of any Taxes for which the payee is liable under
Article II that result from either such Spin-Off Tax Payment or from the payment of such additional amount is equal to such additional amount. Except to the extent described in the preceding sentence of this Section 4.7, under no circumstances shall
any payment (or portion thereof) made pursuant to this Agreement be grossed up to take into account any additional Taxes that may be owed by the payee (or any of the members of its Group) as a result of such payment. In the event that a Tax
Authority asserts that the treatment of a payment pursuant to this Agreement should be other than as determined pursuant to this Section 4.7, SLM BankCo or Navient, as appropriate, shall use its reasonable best efforts to contest such assertion.
Section 4.4(c) of the Separation Agreement shall not apply to payments made pursuant to this Agreement. 
 Article V 

Assistance and Cooperation 

Section 5.1 Cooperation. In addition to the obligations enumerated in Section 3.1(c), Section 3.1(e), Section 3.2(c) and
Section 7.3, SLM BankCo and Navient will cooperate (and will cause their respective Groups to cooperate) with each other and with each other’s agents, including accounting firms and legal counsel, in connection with Tax matters upon the
reasonable request of the other party. Such cooperation will include Navient or SLM BankCo, as the case may be, (x) providing documents and information in its possession (or in the possession of another member of its Group) as reasonably
requested, and (y) making available to the other, as reasonably requested and available, personnel (including officers, directors, employees and agents of either Group) responsible for preparing, maintaining, and interpreting information and
documents relevant to Taxes and personnel reasonably required as witnesses or for purposes of providing information or documents in connection with any administrative or judicial proceedings relating to Taxes. 

Section 5.2 Supplemental Rulings and Supplemental Tax Opinions. Each of the parties agrees that, at the reasonable
request of the other party (the “Requesting Party”), such party shall (and shall cause each member of its Group to) (i) cooperate and use reasonable efforts to seek to obtain, as expeditiously as reasonably practicable, a
Supplemental Ruling from the IRS or (ii) cooperate and use reasonable efforts to assist the Requesting Party in obtaining, as expeditiously as reasonably practicable, a Supplemental Tax Opinion from Tax Counsel. Within thirty days after
receiving an invoice from the other party therefor, the Requesting Party shall 

  
 18 

 
reimburse such other party for all reasonable costs and expenses incurred by such other party and the members of such other party’s Group in connection with obtaining or requesting a
Supplemental Ruling or in connection with assisting the Requesting Party in obtaining a Supplemental Tax Opinion. Notwithstanding the foregoing, a party shall not be required to file any Supplemental IRS Submission at the request of the Requesting
Party unless the Requesting Party represents to such other party that (x) the Requesting Party has reviewed the Supplemental IRS Submission and (y) all information and representations, if any, relating to any member of the Requesting
Party’s Group contained in the Supplemental IRS Submissions are true, correct and complete in all material respects. 
 Article VI

 Tax Records 

Section 6.1 Retention of Tax Records. Each of SLM BankCo and Navient shall preserve, and shall cause the members of their
respective Groups to preserve, all Tax Records that are in their possession and that could reasonably be expected to affect the liability of any member of the other Group for Taxes, for as long as the contents thereof may become material in the
administration of any matter under applicable Tax Law, but in any event until the later of (x) the expiration of any applicable statutes of limitation, as extended, and (y) seven years after the Spin-Off Date. 

Section 6.2 Access to Tax Records. Navient shall make available, and cause the members of the Navient Group to make
available, to SLM BankCo for inspection and copying (x) all Tax Records in their possession at the time of any written request therefor that relate to Tax Years (or portions thereof) that end on or before the Spin-Off Date, and (y) the
portion of any Tax Record in their possession at the time of any written request therefor that relates to Tax Years (or portions thereof) that end after the Spin-Off Date and that is reasonably necessary to have for the preparation of a Joint Return
or an SLM BankCo Separate Return or in connection with a Tax Contest relating to such return. SLM BankCo shall make available, and cause the members of the SLM BankCo Group to make available, to Navient for inspection and copying (x) all Tax
Records in their possession at the time of any written request therefor that relate to Tax Years (or portions thereof) that end on or before the Spin-Off Date, and (y) the portion of any Tax Record in their possession at the time of any written
request therefor that relates to Tax Years (or portions thereof) that end after the Spin-Off Date and that is reasonably necessary to have for the preparation of a Joint Return or a Navient Separate Return or in connection with a Tax Contest
relating to such return. 
 Section 6.3 Confidentiality. The provisions of Sections 6.9 and 6.10 of the Separation
Agreement shall apply with respect to any Information provided pursuant to this Agreement; provided that either party may disclose, or may permit disclosure of, Information to the extent necessary in connection with the filing of Tax Returns
or any administrative or judicial proceedings relating to Taxes. 

  
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 Article VII 

Tax Contests 
 Section 7.1
Notices. Each party shall provide prompt notice to the other party of any pending or threatened Tax audit, assessment or proceeding or other Tax Contest of which it becomes aware relating to (i) Taxes for which it is or may
be indemnified by the other party hereunder, (ii) the qualification of the Reorganization as a tax-free transaction described under Section 368(a)(1)(F) of the Code, (iii) the qualification of the Internal Contribution and the
Internal Spin-Off as tax-free transactions described under Sections 368(a)(1)(D) and 355 of the Code, or (iv) the qualification of the External Contribution and the External Spin-Off as tax-free transactions described under Sections
368(a)(1)(D) and 355 of the Code. Such notice shall contain factual information (to the extent known) describing any asserted Tax liability in reasonable detail and shall be accompanied by copies of any notice and other documents received from any
Tax Authority in respect of any such matters. If (i) an indemnified party has knowledge of an asserted Tax liability with respect to a matter for which it is to be indemnified hereunder, (ii) such party fails to give the indemnifying party
prompt notice of such asserted Tax liability, and (iii) the indemnifying party has the right, pursuant to Section 7.2(a), to control the Tax Contest relating to such Tax liability, then (x) if the indemnifying party is precluded from
contesting the asserted Tax liability as a result of such failure to give prompt notice, the indemnifying party shall have no obligation to indemnify the indemnified party for any Taxes arising out of such asserted Tax liability, and (y) if the
indemnifying party is not precluded from contesting the asserted Tax liability, but such failure to give prompt notice results in a monetary detriment to the indemnifying party, then any amount which the indemnifying party is otherwise required to
pay the indemnified party pursuant to this Agreement shall be reduced by the amount of such detriment. 
 Section 7.2 Control of
Tax Contests. 
 (a) General Rule. Except as provided in Section 7.2(b), (i) SLM BankCo shall have full
responsibility, control and discretion in handling, settling or contesting any Tax Contest involving a Tax reported on a Joint Return (or which a Tax Authority asserts should have been reported on a Joint Return), and (ii) each party (or the
appropriate member of its Group) shall have full responsibility, control and discretion in handling, settling or contesting any Tax Contest involving a Tax reported on a Separate Return of such party (or which a Tax Authority asserts should have
been reported on a Separate Return). 
 (b) Participation and Settlement Rights. 

(i) With respect to a Tax Contest which involves a Tax liability for which the Non-Controlling Party may be liable, or a Tax Benefit to which
the Non-Controlling Party may be entitled, in whole or in part under this Agreement (in any case, a “Non-Preparer Item,” which, to the extent Navient is the Non-Controlling Party, shall be deemed to include any Spin-Off Taxes and
Spin-Off Tax Items and any issues related to the tax-free treatment of the Reorganization, Internal Contribution, External Contribution, Internal Spin-Off or External Spin-Off), (1) the Non-Controlling Party shall be entitled to participate, at
its own cost and expense, in 

  
 20 

 
such Tax Contest to the extent it relates to a Non-Preparer Item, (2) the Controlling Party shall keep the Non-Controlling Party reasonably informed and consult seriously and in good faith
with the Non-Controlling Party and its Tax advisors with respect to any issue in such Tax Contest relating to a Non-Preparer Item, (3) the Controlling Party shall provide the Non-Controlling Party with copies of all correspondence, notices, and
other written materials received from any Tax Authority and shall otherwise keep the Non-Controlling Party and its Tax advisors advised of significant developments in the Tax Contest and of significant communications involving representatives of the
Tax Authority, to the extent (in any case) related to a Non-Preparer Item, (4) the Non-Controlling Party may request that the Controlling Party take a position related to a Non-Preparer Item in respect of such Tax Contest, and the Controlling
Party shall do so provided that (A) there exists substantial authority for such position (within the meaning of the accuracy-related penalty provisions of Section 6662 of the Code) and (B) the adoption of such position could not
reasonably be expected to increase the Taxes or reduce the Tax Benefits allocated to the Controlling Party pursuant to Article II of this Agreement (unless the Non-Controlling Party agrees to indemnify and hold harmless the Controlling Party from
such increase in Taxes or reduction in Tax Benefits), (5) the Controlling Party shall provide the Non-Controlling Party with a copy of any written submission to be sent to a Tax Authority to the extent related to a Non-Preparer Item prior to
the submission thereof and shall give serious and good faith consideration to any comments or suggested revisions that the Non-Controlling Party or its Tax advisors may have with respect thereto, and (6) there will be no settlement, resolution
(within the control of the Controlling Party or any member of the Controlling Party’s Group), or closing or other agreement with respect to any issue related to a Non-Preparer Item without the consent of the Non-Controlling Party, which consent
shall not be unreasonably withheld or delayed. 
 (ii) Notwithstanding anything to the contrary in this Agreement, if Navient and SLM
BankCo cannot agree as to how to proceed (e.g., whether to propose or accept a settlement offer, file a protest or petition, etc.) with respect to a Tax Item or issue in a Tax Contest involving Consolidated Taxes after consulting with each
other on such matter in good faith, the party with the most Taxes at risk with respect to such Tax Item or issue in such Tax Contest shall be entitled to decide how to proceed with respect to such Tax Item or issue, and the other party shall comply
and reasonably cooperate with such decision (including by signing a power of attorney with respect to such issue, to the extent necessary). For purposes of this Section 7.2(b)(ii), the party with the most Taxes at risk with respect to a Tax
Item or issue shall be the party whose liability for Taxes under this Agreement would increase the most (in terms of absolute dollar amount) if the position of the applicable Governmental Entity with respect to such Tax Item or issue were upheld in
full (treating a loss of any claimed refund as an increase in Tax liability). 
 Section 7.3 Cooperation. The Non-Controlling
Party shall promptly provide the Controlling Party with all documents and information in its possession (or in the possession of its Group) which the Controlling Party reasonably needs to handle, settle or contest the Tax Contest (including copies
of all correspondence, notices, and other written materials with respect to such Tax Contest sent by a Tax Authority to the Non-Controlling Party (or a member of its Group) but not to any member of the Controlling Party’s Group). Subject to
Section 7.2(b), at the reasonable request of the Controlling Party, the Non-Controlling Party shall take any action (e.g., executing a power of attorney) that is reasonably necessary in order for the Controlling Party to handle, settle or
contest the Tax Contest. The Controlling Party shall reimburse the Non-Controlling Party for any reasonable out-of-pocket costs and expenses 

  
 21 

 
incurred in complying with the first two sentences of this Section 7.3. The Controlling Party shall have no obligation to indemnify the Non-Controlling Party for any additional Taxes
resulting from the Tax Contest if such Non-Controlling Party fails to reasonably cooperate in accordance with the first two sentences of Section 7.3. 

Article VIII 

Restriction on Certain Actions of SLM BankCo and Navient 

Section 8.1 General Restrictions. Navient and SLM BankCo shall not (and shall cause the members of their respective
Groups to not) take any action or fail to take any action if such action or failure to take action, as the case may be, would (i) be inconsistent with the Reorganization qualifying, or preclude the Reorganization from qualifying, as a tax-free
transaction described under Section 368(a)(1)(F) of the Code, (ii) be inconsistent with the Internal Contribution and Internal Spin-Off qualifying, or preclude the Internal Contribution and Internal Spin-Off from qualifying, as tax-free
transactions described under Sections 368(a)(1)(D) and 355 of the Code, (iii) be inconsistent with the External Contribution and External Spin-Off qualifying, or preclude the External Contribution and External Spin-Off from qualifying, as
tax-free transactions (except with respect to cash received in lieu of fractional shares) described under Sections 368(a)(1)(D) and 355 of the Code, or (iv) be reasonably likely to be inconsistent with, or cause any Person to be in breach of,
any representation, covenant or material statement made in the Tax Materials. 
 Section 8.2 Certain Navient Actions Following the
Effective Time. Without limiting the other provisions of this Article VIII, during the two-year period following the Effective Time, Navient shall not take (and shall cause the members of the Navient Group to not take), and shall not
negotiate or enter into (and shall cause the members of the Navient Group to not negotiate or enter into) a binding agreement to take, any of the following actions: (i) liquidate, sell all or substantially all of its assets or sell or transfer
fifty percent (50%) or more of (1) the assets that constitute the Education Loan Management Business as of the Effective Time to any Person other than Navient or an entity which is and will be wholly-owned, directly or indirectly, by
Navient or (2) the assets that constitute the Internal Distributing Business as of the Effective Time to any Person other than Internal Distributing or an entity which is and will be wholly-owned, directly or indirectly, by Internal
Distributing, (ii) issue stock of Navient or any Navient Affiliate (or any instrument that is convertible or exchangeable into any such stock), other than an issuance to which Treasury Regulations Section 1.355-7(d)(8) or (9) applies,
equal to or exceeding twenty-five percent (25%) (by vote or value) of the stock of Navient or of such Navient Affiliate that was issued and outstanding immediately following the Effective Time, (iii) facilitate or otherwise participate in
any acquisition (or deemed acquisition) or other transfer of stock of Navient or Internal Distributing that would result in (1) any shareholder owning (or being deemed to own after applying the rules of Sections 355(e)(4)(C) and 355(e)(3)(B) of
the Code) forty percent (40%) or more (by vote or value) of the outstanding stock of Navient or (2) any shareholder other than Navient owning (or being deemed to own after applying the rules of Sections 355(e)(4)(C) and 355(e)(3)(B) of the
Code) forty percent (40%) or more (by vote or value) of the outstanding stock of Internal Distributing, (iv) redeem or otherwise repurchase any stock of Navient other than pursuant to open market stock repurchase programs meeting the
requirements of Section 4.05(1)(b) of Rev. Proc. 96-30, 1996-1 

  
 22 

 
C.B. 696, or (v) terminate the active conduct by the Navient Group of the Education Loan Management Business or the Internal Distributing Business, in each case, without first obtaining and
delivering to SLM BankCo at Navient’s own expense a Supplemental Tax Opinion or Permitted Supplemental Ruling reasonably satisfactory to SLM BankCo with respect to such action. 

Section 8.3 Certain SLM BankCo Actions Following the Effective Time. Without limiting the other provisions of this
Article VIII, during the two-year period following the Effective Time, SLM BankCo shall not take (and shall cause the members of the SLM BankCo Group to not take), and shall not negotiate or enter into (and shall cause the members of the SLM BankCo
Group to not negotiate or enter into) a binding agreement to take, any of the following actions: (i) liquidate, sell all or substantially all of its assets or sell or transfer fifty percent (50%) or more of (1) the assets that
constitute the Consumer Banking Business as of the Effective Time to any Person other than SLM BankCo or an entity which is and will be wholly-owned, directly or indirectly, by SLM BankCo or (2) the assets that constitute the Internal
Controlled Business as of the Effective Time to any Person other than Internal Controlled or an entity which is and will be wholly-owned, directly or indirectly, by Internal Controlled, (ii) issue stock of SLM BankCo or any SLM BankCo Affiliate
(or any instrument that is convertible or exchangeable into any such stock), other than an issuance to which Treasury Regulations Section 1.355-7(d)(8) or (9) applies, equal to or exceeding twenty-five percent (25%) (by vote or value)
of the stock of SLM BankCo or of such SLM BankCo Affiliate that was issued and outstanding immediately following the Effective Time, (iii) facilitate or otherwise participate in any acquisition (or deemed acquisition) or other transfer of stock
of SLM BankCo or Internal Controlled that would result in (1) any shareholder owning (or being deemed to own after applying the rules of Sections 355(e)(4)(C) and 355(e)(3)(B) of the Code) forty percent (40%) or more (by vote or value) of
the outstanding stock of SLM BankCo or (2) any shareholder other than SLM BankCo owning (or being deemed to own after applying the rules of Sections 355(e)(4)(C) and 355(e)(3)(B) of the Code) forty percent (40%) or more (by vote or value)
of the outstanding stock of Internal Controlled, (iv) redeem or otherwise repurchase any stock of SLM BankCo other than pursuant to open market stock repurchase programs meeting the requirements of Section 4.05(1)(b) of Rev. Proc. 96-30,
1996-1 C.B. 696, or (v) terminate the active conduct by the SLM BankCo Group of the Consumer Banking Business or the Internal Controlled Business, in each case, without first obtaining and delivering to Navient at SLM BankCo’s own expense
a Supplemental Tax Opinion or Permitted Supplemental Ruling reasonably satisfactory to Navient with respect to such action. 
 Article IX

 General Provisions. 

Section 9.1 Counterparts; Corporate Power. 

(a) This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall become
effective when one or more counterparts have been signed by each of the parties and delivered to the other parties. 

  
 23 

 (b) SLM BankCo represents on behalf of itself, and Navient represents on behalf of itself, as
follows: 
 (i) it has the requisite corporate or other power and authority and has taken all corporate or other action necessary in order
to execute, deliver and perform this Agreement to which it is a party and to consummate the transactions contemplated hereby and thereby; and 

(ii) this Agreement has been duly executed and delivered by it and constitutes a valid and binding agreement of it enforceable in accordance
with the terms thereof. 
 (c) Each party acknowledges that it and the other party may execute this Agreement by facsimile, stamp or
mechanical signature. Each party expressly adopts and confirms each such facsimile, stamp or mechanical signature made in its respective name as if it were a manual signature, agrees that it will not assert that any such signature is not adequate to
bind such party to the same extent as if it were signed manually and agrees that at the reasonable request of the other party at any time it will as promptly as reasonably practicable cause this Agreement to be manually executed (any such execution
to be as of the date of the initial date thereof). 
 (d) Notwithstanding any provision of this Agreement, neither SLM BankCo nor Navient
shall be required to take or omit to take any act that would violate its fiduciary duties to any minority shareholders of any non-wholly owned Subsidiary of SLM BankCo or Navient, as the case may be (it being understood that directors’
qualifying shares or similar interests will be disregarded for purposes of determining whether a Subsidiary is wholly owned). 
 Section 9.2
Governing Law. This Agreement (and any claims or disputes arising out of or related hereto or to the transactions contemplated hereby or to the inducement of any party to enter herein, whether for breach of contract, tortious
conduct or otherwise and whether predicated on common law, statute or otherwise) shall be governed by and construed and interpreted in accordance with the Laws of the State of Delaware irrespective of the choice of laws principles of the State of
Delaware including all matters of validity, construction, effect, enforceability, performance and remedies. 
 Section 9.3
Assignability. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns; provided, however, that no party hereto may assign its respective
rights or delegate its respective obligations under this Agreement without the express prior written consent of the other party hereto. Notwithstanding the foregoing, no such consent shall be required for the assignment of a party’s rights and
obligations under this Agreement in whole in connection with a Change of Control of a party so long as the resulting, surviving or transferee Person assumes all the obligations of the relevant party thereto by operation of Law or pursuant to an
agreement in form and substance reasonably satisfactory to the other party. Nothing herein is intended to, or shall be construed to, prohibit either party or any of its Subsidiaries from being party to or undertaking a Change of Control. 

Section 9.4 Third-Party Beneficiaries. Except for the indemnification rights under this Agreement of any members of the
SLM BankCo Group or the Navient Group in their respective capacities as such, (a) the provisions of this Agreement are solely for the 

  
 24 

 
benefit of the parties hereto and are not intended to confer upon any Person except the parties hereto any rights or remedies hereunder, and (b) there are no third party beneficiaries of
this Agreement and this Agreement shall not provide any third Person with any remedy, claim, liability, reimbursement, claim of action or other right in excess of those existing without reference to this Agreement. 

Section 9.5 Notices. The provisions of Section 10.5 of the Separation Agreement shall apply to all notices,
requests, claims, demands or other communications under this Agreement. 
 Section 9.6 Severability. If any provision
of this Agreement or the application thereof to any Person or circumstance is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the application of such provision to Persons or
circumstances or in jurisdictions other than those as to which it has been held invalid or unenforceable, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby. Upon such determination, the parties
shall negotiate in good faith in an effort to agree upon a suitable and equitable provision to effect the original intent of the parties. 

Section 9.7 Force Majeure. No party shall be deemed in default of this Agreement to the extent that any delay or failure in the
performance of its obligations under this Agreement results from any Force Majeure. In the event of any such excused delay, the time for performance shall be extended for a period equal to the time lost by reason of the delay. 

Section 9.8 Expenses. Except as expressly set forth in this Agreement, all fees, costs and expenses incurred in
connection with the preparation, execution, delivery and implementation of this Agreement, and with the consummation of the transactions contemplated hereby, will be borne by the party incurring such fees, costs or expenses. 

Section 9.9 Headings. The article, section and paragraph headings contained in this Agreement are for reference purposes only
and shall not affect in any way the meaning or interpretation of this Agreement. 
 Section 9.10 Termination. 

(a) This Agreement may be terminated by the Sallie Mae Board at any time, in its sole and absolute discretion, prior to the Separation
Effective Time. After the Separation Effective Time, this Agreement may not be terminated except by an agreement in writing signed by each of the parties. 

(b) In the event of any termination of this Agreement prior to the Separation Effective Time, no party (or any of its directors or officers)
shall have any liability or further obligation to any other party. 
 Section 9.11 Waivers of Default. Waiver by any party of
any default by the other party of any provision of this Agreement shall not be deemed a waiver by the waiving party of any subsequent or other default, nor shall it prejudice the rights of the other party. No failure or delay by any party in
exercising any right, power or privilege under this Agreement shall operate as a waiver thereof, nor shall a single or partial exercise thereof prejudice any other or further exercise thereof or the exercise of any other right, power or privilege.

  
 25 

 Section 9.12 Amendments. No provisions of this Agreement shall be deemed
waived, amended, supplemented or modified by any party, unless such waiver, amendment, supplement or modification is in writing and signed by the authorized representative of the party against whom it is sought to enforce such waiver, amendment,
supplement or modification. 
 Section 9.13 Interpretation. In this Agreement, (a) words in the singular shall be
held to include the plural and vice versa and words of one gender shall be held to include the other genders as the context requires; (b) the terms “hereof,” “herein,” and “herewith” and words of similar import
shall, unless otherwise stated, be construed to refer to this Agreement as a whole and not to any particular provision of this Agreement; (c) Article and Section references are to the Articles and Sections to this Agreement unless otherwise
specified; (d) the word “including” and words of similar import when used in this Agreement shall mean “including, without limitation,”; (e) the word “or” shall not be exclusive; (f) unless expressly
stated to the contrary in this Agreement, all references to “the date hereof,” “the date of this Agreement,” “hereby” and “hereupon” and words of similar import shall all be references to [—], 2014, regardless of any amendment or restatement hereof; and (g) references to any agreement, instrument or other document shall mean such agreement, instrument or other document as amended,
supplemented or modified from time to time to the extent permitted by the provisions thereof and not prohibited by this Agreement. 

Section 9.14 Limitation of Liability. Except as expressly set out in this Agreement, neither Navient or its Affiliates,
on the one hand, nor SLM BankCo or its Affiliates, on the other hand, shall be liable under this Agreement to the other for any special, indirect, punitive, exemplary, remote, speculative or similar damages in excess of compensatory damages of the
other arising in connection with the transactions contemplated hereby (other than any such liability included in the definition of Taxes). 

Section 9.15 Performance. SLM BankCo will cause to be performed, and hereby guarantees the performance of, all actions,
agreements and obligations set forth in this Agreement to be performed by any member of the SLM BankCo Group. Navient will cause to be performed, and hereby guarantees the performance of, all actions, agreements and obligations set forth in this
Agreement to be performed by any member of the Navient Group. Each party (including its permitted successors and assigns) further agrees that it will (a) give timely notice of the terms, conditions and continuing obligations contained in this
Agreement to all of the other members of its Group and (b) cause all of the other members of its Group not to take any action or fail to take any such action inconsistent with such party’s obligations under this Agreement or the
transactions contemplated hereby or thereby. 
 Section 9.16 Predecessors or Successors. Any reference to SLM BankCo,
Navient, a Person, or a Subsidiary in this Agreement shall include any predecessors or successors (e.g., by merger or other reorganization, liquidation, conversion, or election under Treasury Regulations Section 301.7701-3) of SLM BankCo,
Navient, such Person, or such Subsidiary, respectively. 
 Section 9.17 Effective Time. This Agreement shall become
effective on the date recited above on which the parties entered into this Agreement. 

  
 26 

 Section 9.18 Change in Law. Any reference to a provision of the Code or any
other Tax Law shall include a reference to any applicable successor provision or Law. 
 Section 9.19 Disputes. The
procedures for negotiation, mediation and litigation set forth in Article VII of the Separation Agreement shall apply to all Disputes (whether sounding in contract, tort or otherwise) arising out of or related to this Agreement. 

  
 27 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by the respective
officers as of the date set forth above. 
  

					
	NAVIENT CORPORATION
			
	            	 	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	NEW BLC CORPORATION
			
		 	By:	 	  

		 	Name:	 	
		 	Title:	 	

  
 28EX-10.1

 Exhibit 10.1 
  

			
	 Citibank, N.A.
 390 Greenwich Street

New York, New York 10013
	  	

  

Execution Copy 
  

			
		
	Date:	  	August 27, 2013 (amended and restated as of March 21, 2014)
		
	To:	  	 Arbor Funding LLC
 c/o Sierra Income
Corporation
 375 Park Avenue
 Suite 3304

New York, New York 10052
 Attention: Richard Allorto and Steve
Henke
 Telephone: (212) 759-0777
 Fax:
(212) 759-0091

		
	From:	  	 Citibank, N.A.
 388 Greenwich Street

11th Floor
 New York, New York 10013

Attention: Director Derivative Operations
 Facsimile:
212-615-8594

 Transaction Reference Number: 60061770TRS 

Ladies and Gentlemen: 
 The purpose of this letter
agreement is to set forth the terms and conditions of the Transactions entered into between Citibank, N.A. (“Citibank”) and Arbor Funding LLC, a limited liability company formed under the laws of the State of Delaware
(“Counterparty”), in relation to the Trade Date specified below (each, a “Transaction” and, collectively, the “Transactions”). This letter constitutes a “Confirmation”
as referred to in the Master Agreement specified below. 
 The definitions and provisions contained in the 2000 ISDA Definitions (the
“Definitions”), as published by the International Swaps and Derivatives Association, Inc., are incorporated into this Confirmation. In the event of any inconsistency between the Definitions and this Confirmation, this
Confirmation shall govern. Capitalized terms used but not defined in this Confirmation have the meanings assigned to them in Annex A. Capitalized terms used but not defined in this Confirmation or in Annex A have the meanings assigned to
them in the Definitions. 
 With effect from the Amendment Effective Date, this Confirmation amends and restates the prior Confirmation dated
August 27, 2013 (the “Original Confirmation”) relating to the Transactions described herein, which Original Confirmation is hereby superseded and shall be of no further force or effect. 

  
 Page 1 

	1.	AGREEMENT 

 This Confirmation supplements, forms a part of
and is subject to, the ISDA 2002 Master Agreement, dated as of August 27, 2013 (as amended, supplemented and otherwise modified and in effect from time to time, the “Master Agreement”), between Citibank and Counterparty.
All provisions contained in the Master Agreement govern this Confirmation except as expressly modified below. 
  

	2.	TERMS OF TRANSACTIONS 

 The terms of the
particular Transactions to which this Confirmation relates are as follows: 
 General Terms: 

 

	 Trade Date: 
	August 27, 2013 

  

	 Effective Date: 
	August 27, 2013 

  

	 Amendment Effective Date 
	March 21, 2014 

  

	 Scheduled Termination Date: 
	The latest date for the final scheduled payment (or, if there is only one scheduled payment, for the scheduled payment) of principal of any Reference Obligation at any time included in the Reference Portfolio. 

 

	 Termination Date: 
	The final Scheduled Settlement Date (as defined in the Master Agreement) with respect to all Transactions (other than any Counterparty Fourth Floating Rate Payer Payment Date or, in the case of any Terminated Obligation, any Citibank Fixed
Amount Payer Payment Date). The obligations of the parties to make payments required to be made hereunder shall survive the Termination Date. 

  

	 Obligation Termination Date: 
	(a) In relation to any Repaid Obligation, the related Repayment Date; and 

  

	 	(b) In relation to any Terminated Obligation, the related Termination Settlement Date. 

  

	 Reference Portfolio: 
	As of any date of determination, all Reference Obligations with respect to all Transactions outstanding on such date. 

  

	 Reference Obligation: 
	 Each obligation listed on Annex I (as revised from time to time in accordance with this Confirmation) having a Reference Amount equal to the “Reference Amount” indicated on

  
 Page 2 

	 	 
Annex I for such obligation (and, in the case of a Committed Obligation, having an Outstanding Principal Amount equal to the “Outstanding Principal Amount” indicated on
Annex I for such Committed Obligation), in each case, subject to adjustment by the Calculation Agent in accordance with the terms of this Confirmation. 

  

	 	Each Transaction entered into under this Confirmation will reference an individual Reference Obligation, and Annex I constitutes a supplemental Confirmation under the Master Agreement with respect to each such
Transaction. 

 Counterparty may, by notice to Citibank on any Business Day (each, an “Obligation Trade
Date”), on or after the Trade Date designate that any obligation (each, a “Reference Obligation”) shall become the subject of a Transaction hereunder. Any such notice shall specify the proposed Reference
Obligation, Reference Entity, Reference Amount and Initial Price in relation to such Transaction. 
  

	 	Notwithstanding the foregoing, no such designation by Counterparty will be effective unless (a) Citibank, in its sole discretion, consents on or prior to the Obligation Trade Date to the relevant Reference
Obligation becoming the subject of a Transaction hereunder with effect as set forth in the immediately succeeding paragraph and (b) on the Obligation Trade Date (i) the relevant Reference Obligation satisfies the Obligation Criteria set
forth in Annex II and (ii) the Portfolio Criteria set forth in Annex II are satisfied after giving effect to such designation. 

  

	 	On the Obligation Trade Date for a Transaction, the Reference Amount of such Transaction shall, for all purposes hereof other than calculating Rate Payments, be increased by the “Reference Amount” specified in
such notice from Counterparty. The “Obligation Settlement Date” for a Transaction shall be the date following the Obligation Trade Date for such Transaction that is customary for settlement of the related Reference Obligation
substantially in accordance with the then-current market practice in the principal market for the related Reference Obligation (as determined by the Calculation Agent). On the Obligation Settlement Date for a Transaction, the Reference Amount of
such Transaction shall, solely for the purposes of calculating Rate Payments, be increased by the “Reference Amount” specified in such notice from Counterparty. 

 

	 	No later than one Business Day after any Obligation Trade Date, Citibank shall prepare and deliver to Counterparty a revised Annex I reflecting the Reference Portfolio as of such Obligation Trade Date.

  
 Page 3 

	 	If any payment of interest on a Reference Obligation that would otherwise be made during the period from and including the Obligation Settlement Date to but excluding the Termination Trade Date is not made but is
capitalized as additional principal (without default), then the amount of interest so capitalized as principal shall become a new Transaction hereunder (a “PIK Transaction”) having the same terms and conditions as the
Transaction relating to the Reference Obligation in respect of which such interest is capitalized, except that (1) the Initial Price in relation to such PIK Transaction shall be zero, (2) the Obligation Trade Date and Obligation Settlement
Date for such PIK Transaction shall be the date on which such interest is capitalized and (3) the Reference Amount of such PIK Transaction will be the amount of interest so capitalized as principal. Citibank shall give notice to Counterparty
after a PIK Transaction becomes outstanding as provided above, which notice shall set forth the information in the foregoing clauses (2) and (3). 

  

	 Reference Entity: 
	The borrower of the Reference Obligation identified as such in Annex I (as revised from time to time in accordance with this Confirmation). In addition, “Reference Entity”, unless the context otherwise requires, shall also refer
to any guarantor of or other obligor on the Reference Obligation. 

  

	 Ramp-Up Period: 
	The period from and including the Effective Date and ending on but excluding the one-year anniversary of the Effective Date. 

  

	 Ramp-Down Period: 
	The period from and including the date 60 days prior to the Scheduled Termination Date and ending on and including the Scheduled Termination Date. 

  

	 Portfolio Notional Amount: 
	As of any date of determination, the sum of the Notional Amounts for all Reference Obligations as of such date. 

  

	 Notional Amount: 
	(a) In relation to any Transaction (other than in relation to any Terminated Obligation or Repaid Obligation), as of any date of determination, the Reference Amount of the related Reference Obligation as of such date multiplied by the
Initial Price in relation to such Reference Obligation; and 

  
 Page 4 

	 	(b) In relation to any Terminated Obligation or Repaid Obligation, the amount of the reduction in the Reference Amount of the related Reference Obligation determined, in the case of a Terminated Obligation,
pursuant to Clause 3 or, in the case of a Repaid Obligation, pursuant to Clause 5, in each case multiplied by the Initial Price in relation to the related Reference Obligation. 

 

	 Outstanding Principal Amount: 
	In relation to any Reference Obligation as of any date of determination, the outstanding principal amount of such obligation as shown in the then current Annex I, as increased pursuant to this Clause 2 (or, in the case of any Committed
Obligation, pursuant to any borrowing in respect of such Committed Obligation after the Obligation Settlement Date) and reduced pursuant to Clauses 3 and 5. Except as otherwise expressly provided below with respect to Counterparty First
Floating Amounts, the Outstanding Principal Amount of any Committed Obligation on any date shall include the aggregate stated face amount of all letters of credit, bankers’ acceptances and other similar instruments issued in respect of such
Committed Obligation to the extent that the holder of such Committed Obligation is obligated to extend credit in respect of any drawing or other similar payment thereunder. 

 

	 Commitment Amount: 
	In relation to any Reference Obligation that is a Committed Obligation (and the related Transaction) as of any date of determination, the maximum outstanding principal amount of such Reference Obligation that a registered holder thereof would on
such date be obligated to fund (including all amounts previously funded and outstanding, whether or not such amounts, if repaid, may be reborrowed). 

  

	 Notional Funded Amount: 
	 In relation to any Reference Obligation that is a Committed Obligation (and the related Transaction) as of any date of determination, the greater of (a) zero and (b) the sum of
(i) the Outstanding Principal Amount of such Reference Obligation as of the Obligation Trade Date multiplied by the Initial Price minus (ii) the product of (x) the excess, if any, of the Commitment Amount of such
Reference Obligation as of the Obligation Trade Date over the Outstanding Principal Amount of such Reference Obligation as of the Obligation Trade Date multiplied by (y) 100% minus the Initial Price plus (iii) any
increase in the Outstanding Principal Amount of such Reference Obligation during the period from but excluding the 

  
 Page 5 

	 	 
Obligation Trade Date to and including such date of determination minus (iv) any decrease in the Outstanding Principal Amount of such Reference Obligation during the period from but
excluding the Obligation Trade Date to and including such date of determination. 

  

	 	In relation to any Reference Obligation that is a Term Obligation (and the related Transaction) as of any date of determination, the Notional Amount of such Reference Obligation. 

 

	 Portfolio Notional Funded Amount: 
	As of any date of determination, the aggregate of all Notional Funded Amounts with respect to all Reference Obligations in the Reference Portfolio on such date of determination. 

 

	 Reference Amount: 
	In relation to (a) any Term Obligation (and the related Transaction), the Outstanding Principal Amount of such Term Obligation and (b) any Committed Obligation (and the related Transaction), the Commitment Amount of such Committed
Obligation. 

  

	 Utilization Amount: 
	In relation to any Calculation Period, the daily average of the Portfolio Notional Funded Amount during such Calculation Period. 

  

	 Maximum Portfolio Notional Amount: 
	USD200,000,000, or such greater amount as the parties may agree to in writing. 

  

	 Minimum Portfolio Notional Amount: 
	As of any date of determination, 85% of the Maximum Portfolio Notional Amount in effect on such date. 

  

	 Business Day: 
	New York. 

  

	 Business Day Convention: 
	Following (which shall apply to any date specified herein for the making of any payment or determination or the taking of any action which falls on a day that is not a Business Day). 

 

	 	If any anniversary date specified herein would fall on a day on which there is no corresponding day in the relevant calendar month, then such anniversary date shall be the last day of such calendar month.

  

	 Monthly Period: 
	Each period from but excluding the 15th day of any calendar month to and including the same day of the immediately succeeding calendar month. 

  
 Page 6 

	 Calculation Agent: 
	Citibank. Unless otherwise specified, the Calculation Agent shall make all determinations, calculations and adjustments required pursuant to this Confirmation in good faith and on a commercially reasonable basis. 

 

	 Calculation Agent City: 
	New York 

  

	 Initial Price: 
	In relation to any Reference Obligation (and the related Transaction), the Initial Price specified in Annex I (as revised from time to time in accordance with this Confirmation). The Initial Price will be determined as of the related
Obligation Trade Date exclusive of accrued interest and will be expressed as a percentage of the Outstanding Principal Amount. The Initial Price will be determined exclusive of expenses that would be incurred by a buyer in connection with any
purchase of the Reference Obligation and exclusive of any Delay Compensation. 

  

	 Net Collateral Value: 
	As of any date of determination, an amount equal to (a) the aggregate Value (as defined in the Credit Support Annex) on such date of all Posted Credit Support (as so defined) held by Citibank as Secured Party (as so defined) plus
(b) the aggregate of all Unrealized Capital Gains on such date with respect to the Reference Portfolio minus (c) the aggregate of all Unrealized Capital Losses on such date with respect to the Reference Portfolio. 

 

	 Net Collateral Value Percentage: 
	As of any date of determination, an amount (expressed as a percentage) equal to (a) the Net Collateral Value on such date divided by (b) the Portfolio Notional Amount on such date. 

 

	 Termination Threshold: 
	As of any date of determination during the Ramp-Up Period, the Cure Threshold on such date. 

  

	 	As of any date of determination after the Ramp-Up Period, (a) the Cure Threshold on such date minus (b) 5%. 

  

	 Cure Threshold: 
	As of any date of determination, (a) the sum, for each Transaction, of the products of (i) the Independent Amount Percentage in relation to such Transaction multiplied by (ii) the Notional Amount on such date in relation to
such Transaction divided by (b) the Portfolio Notional Amount on such date. 

  

	 Unrealized Capital Gain: 
	 With respect to any Reference Obligation on any date of determination, if (a) the Notional Funded Amount on such date of determination (computed as if

  
 Page 7 

	 	 
references in the definition of Notional Funded Amount to the terms “Initial Price” and “Obligation Trade Date” were instead the Current Price and such date of determination,
respective) exceeds (b) the Notional Funded Amount on such date of determination, then an amount equal to such excess; and, otherwise, zero. For purposes of computing any Unrealized Capital Gain, a Repaid Obligation or Terminated Obligation
will be deemed to continue to be outstanding in an amount equal to its Reference Amount until (but excluding) the related Total Return Payment Date (and after the determination of the related Final Price will have a Current Price equal to such Final
Price). 

  

	 Unrealized Capital Loss: 
	With respect to any Reference Obligation on any date of determination, if (a) the Notional Funded Amount on such date of determination exceeds (b) the Notional Funded Amount on such date of determination (computed as if references in
the definition of Notional Funded Amount to the terms “Initial Price” and “Obligation Trade Date” were instead the Current Price and such date of determination, respective), then an amount equal to such excess; and, otherwise,
zero. For purposes of computing any Unrealized Capital Loss, a Repaid Obligation or Terminated Obligation will be deemed to continue to be outstanding in an amount equal to its Reference Amount until (but excluding) the related Total Return Payment
Date (and after the determination of the related Final Price will have a Current Price equal to such Final Price). 

 Payments by
Counterparty 
 Counterparty First Floating Amounts: 
  

	 First Floating Amount Payer: 
	Counterparty 

  

	 First Floating Amount: 
	 In relation to any First Floating Rate Payer Payment Date, the sum, for each Transaction for which such date is a First Floating Rate Payer Payment Date, of the products of (a) the
First Floating Rate Payer Calculation Amount for such Transaction for the related First Floating Rate Payer Calculation Period multiplied by (b) the Floating Rate Option for such Transaction during the related First Floating Rate Payer
Calculation Period plus the Spread multiplied by (c) the Floating Rate Day Count Fraction; 

  
 Page 8 

	 	 
provided that, for purposes of the foregoing calculation, the percentage specified in the foregoing clause (b) shall be the Spread (and not the Floating Rate Option plus the
Spread) with respect to any portion of a First Floating Rate Payer Calculation Amount constituting the undrawn stated face amount of all letters of credit, bankers’ acceptances and other similar instruments issued in respect of a related
Committed Obligation 

  

	 	If the Floating Rate Option or the Spread in relation to any Transaction varies during any First Floating Rate Payer Calculation Period, then the Floating Rate Option or the Spread, as the case may be, for such
Calculation Period shall be equal to (a) the sum, for each day during such Calculation Period, of the products of the Notional Funded Amount of such Transaction for such day multiplied by the Floating Rate Option or the Spread, as the
case may be, in effect on such day divided by (b) the sum of the Notional Funded Amount of such Transaction on each day during such Calculation Period. 

 

	 First Floating Rate Payer Calculation Amount: 
	In relation to any First Floating Rate Payer Payment Date and any Transaction, the daily average of the Notional Funded Amount of such Transaction during the related First Floating Rate Payer Calculation Period. In relation to any Transaction
relating to a Bond, the First Floating Rate Payer Calculation Amount shall be increased on each day by an amount equal to Purchased Accrued Interest in respect of such Bond minus the portion of such Purchased Accrued Interest paid with
respect to the related Reference Obligation prior to such day. 

  

	 First Floating Rate Payer Calculation Period: 
	In relation to any Transaction, each period from and including any date upon which a payment of interest is scheduled or otherwise required to be made on the related Reference Obligation to but excluding the next such date, except that
(a) the initial First Floating Rate Payer Calculation Period will commence on, and include, the related Obligation Settlement Date and (b) the final First Floating Rate Payer Calculation Period will end on, but exclude, the related
Obligation Termination Date. 

  
 Page 9 

	 First Floating Rate Payer Payment Dates: 
	(a) In relation to any Transaction (other than in relation to any Terminated Obligation or Repaid Obligation), the fifth Business Day following the last day of any Monthly Period during which any payment of interest is scheduled or otherwise
required to be made on the related Reference Obligation, commencing with the first such date after the Obligation Settlement Date for such Transaction and ending with the last such date occurring prior to the related Obligation Termination Date; and

  

	 	(b) In relation to any Terminated Obligation or Repaid Obligation, the related Total Return Payment Date. 

  

	 Floating Rate Option: 
	 In relation to any Transaction, the floating rate index specified in the term loan agreement, revolving loan agreement or other similar credit agreement governing the related Reference
Obligation (the “Reference Obligation Credit Agreement”) that is used to determine the rate of interest payable on such Reference Obligation; provided that (a) if more than one interest rate setting is at any time
used to determine the rate of interest payable on a Reference Obligation (i.e., an interest rate election for a specific interest period relating to such Reference Obligation), then a separate First Floating Amount shall be calculated for
each portion of such Reference Obligation as to which a separate interest rate setting has been effected, (b) any interest that has accrued to a specified date but is permitted under the Reference Obligation Credit Agreement to be capitalized
or deferred as of such date (without default) shall be deemed to be scheduled to be paid on such date, (c) any Reference Obligation Credit Agreement that provides for the payment of interest less frequently than quarterly will be deemed to
provide for a scheduled quarterly payment of interest on each date specified by Citibank, which date so specified shall be the calendar day of the month corresponding to other payment dates applicable to the related Reference Obligation and
(d) notwithstanding the foregoing, (i) if the floating rate index for such Reference Obligation (or any portion thereof) is the prime or base rate or is a fixed rate, then the Floating Rate Option for such Reference Obligation (or such
portion) shall equal USD-LIBOR-BBA and (ii) if the floating rate index for such Reference Obligation (or any portion thereof) is subject to the payment of a specified minimum rate regardless of the level of the relevant floating rate index,
then the Floating Rate 

  
 Page 10 

	 	 
Option will be determined without regard to such specified minimum rate. Notwithstanding the foregoing, the Floating Rate Option for any Transaction with respect to a Reference Obligation
that is a Bond shall be USD-LIBOR-BBA. 

  

	 Designated Maturity: 
	In relation to any Transaction and the related Reference Obligation, the Floating Rate Option will have a Designated Maturity and Reset Dates that correspond to the maturity and reset dates specified in the related Reference Obligation Credit
Agreement, except that, if the floating rate index specified in the related Reference Obligation Credit Agreement that is used to determine the rate of interest payable on the Reference Obligation (or any portion thereof) is the prime or base
rate or is a fixed rate, then for purposes of determining USD-LIBOR-BBA the “Designated Maturity” shall be one month and the first day of each First Floating Rate Payer Calculation Period will be a Reset Date. Notwithstanding the
foregoing, the Floating Rate Option for any Transaction with respect to a Reference Obligation that is a Bond will have (i) a Designated Maturity equal to the number of months that most closely corresponds to the period of time between
scheduled payments of interest on such Reference Obligation and (ii) a Reset Date of any date on which interest is scheduled to be paid on such Reference Obligation. 

 

	 Spread: 
	Prior to the Amendment Effective Date, 1.30% and, from and after the Amendment Effective Date, 1.35%. 

  

	 Floating Rate Day Count Fraction: 
	In relation to any Transaction, the Floating Rate Day Count Fraction will be the day count basis for the computation of interest specified in the related Reference Obligation Credit Agreement, except that, if the floating rate index specified in
the related Reference Obligation Credit Agreement that is used to determine the rate of interest payable on the Reference Obligation (or any portion thereof) is the prime or base rate or is a fixed rate, then the Floating Rate Day Count Fraction
will be Actual/360. Notwithstanding the foregoing, the Floating Rate Day Count Fraction for any Transaction with respect to a Reference Obligation that is a Bond will be 30/360. 

 

	 Reset Dates: 
	As set forth in “Designated Maturity” above 

  
 Page 11 

	 Compounding: 
	Inapplicable 

 Counterparty Second Floating Amounts: 
  

	 Second Floating Amount Payer: 
	Counterparty 

  

	 Second Floating Amount: 
	In relation to any Second Floating Rate Payer Payment Date, the product of (a) the Second Floating Rate Payer Calculation Amount for the related Second Floating Rate Payer Calculation Period multiplied by (b) the Spread
multiplied by (c) the Floating Rate Day Count Fraction. 

  

	 	If the Spread varies during any Second Floating Rate Payer Calculation Period, then the Spread for such Calculation Period shall be equal to (a) the sum, for each day during such Calculation Period, of the Spread
in effect on such day divided by (b) the number of days during such Calculation Period. 

  

	 	No Second Floating Amount shall be payable, and no amount shall be payable under Clause 4(c), on any date occurring on or after the designation of an Early Termination Date pursuant to Section 6(a) of the
Master Agreement by reason of an Event of Default under Section 5(a)(i) or 5(a)(vii) of the Master Agreement in relation to Citibank as the Defaulting Party. 

 

	 Second Floating Rate Payer Calculation Amount: 
	In relation to any Second Floating Rate Payer Calculation Period, the excess, if any, of (a) the Minimum Portfolio Notional Amount over (b) the Utilization Amount for such Second Floating Rate Payer Calculation Period.

  

	 Second Floating Rate Payer Calculation Period: 
	Each Monthly Period; provided that (a) the initial Second Floating Rate Payer Calculation Period shall begin on the last day of the Ramp-Up Period and (b) the final Second Floating Rate Payer Calculation Period shall end on the
last Second Floating Rate Payer Payment Date. 

  

	 Second Floating Rate Payer Payment Dates: 
	The fifth Business Day following the last day of each Monthly Period; provided that (a) the initial Second Floating Rate Payer Payment Date will be the first such Business Day after the last day of the Ramp-Up Period and (b) the
final Second Floating Rate Payer Payment Date will be the Scheduled Termination Date (whether or not the Termination Date occurs prior to the final Second Floating Rate Payer Payment Date). 

  
 Page 12 

	 Spread: 
	(a) During the Ramp-Up Period, 0% and (b) thereafter, 1.35%. 

  

	 Floating Rate Day Count Fraction: 
	Actual/360. 

  

	 Compounding: 
	Inapplicable 

 Counterparty Third Floating Amounts 
  

	 Third Floating Amount Payer: 
	Counterparty 

  

	 Third Floating Amount: 
	In relation to any Third Floating Rate Payer Payment Date, the product of (a) the Third Floating Rate Payer Calculation Amount for the related Third Floating Rate Payer Calculation Period multiplied by (b) the Spread
multiplied by (c) the Floating Rate Day Count Fraction. 

  

	 	No Third Floating Amount shall be payable, and no amount shall be payable under Clause 4(c), on any date occurring on or after the designation of an Early Termination Date pursuant to Section 6(a) of the
Master Agreement by reason of an Event of Default under Section 5(a)(i) or 5(a)(vii) of the Master Agreement in relation to Citibank as the Defaulting Party. 

 

	 Third Floating Rate Payer Calculation Amount: 
	In relation to any Third Floating Rate Payer Calculation Period, the excess, if any, of (a) the Maximum Portfolio Notional Amount over (b) the Utilization Amount for such Third Floating Rate Payer Calculation Period. 

 

	 Third Floating Rate Payer Calculation Period: 
	Each Monthly Period; provided that (a) the initial Third Floating Rate Payer Calculation Period shall begin on the last day of the Ramp-Up Period and (b) the final Third Floating Rate Payer Calculation Period shall end on the
last Third Floating Rate Payer Payment Date. 

  
 Page 13 

	 Third Floating Rate Payer Payment Dates: 
	The fifth Business Day following the last day of each Monthly Period; provided that (a) the initial Third Floating Rate Payer Payment Date will be the first such Business Day after the last day of the Ramp-Up Period and (b) the
final Third Floating Rate Payer Payment Date will be the Scheduled Termination Date (whether or not the Termination Date occurs prior to the final Third Floating Rate Payer Payment Date). 

 

	 Spread: 
	(a) During the Ramp-Up Period, 0% and (b) thereafter, 0.15%. 

  

	 Floating Rate Day Count Fraction: 
	Actual/360. 

  

	 Compounding: 
	Inapplicable 

 Counterparty Fourth Floating Amounts: 
  

	 Fourth Floating Amount Payer: 
	Counterparty 

  

	 Fourth Floating Amount: 
	Each Expense or Other Payment. 

  

	 Fourth Floating Rate Payer Payment Dates: 
	In relation to any Transaction, (a) the fifth Business Day following the last day of each Monthly Period, beginning with the first such Business Day after the Obligation Settlement Date for such Transaction, (b) the related Obligation
Termination Date and (c) after the related Obligation Termination Date, the fifth Business Day after notice of a Fourth Floating Amount from Citibank to Counterparty; provided that, prior to the fifth Business Day after the related
Obligation Termination Date, if Counterparty has received fewer than five Business Days’ notice from Citibank that such Fourth Floating Amount is due and payable, such Fourth Floating Rate Payer Payment Date shall be the fifth Business Day
following the last day of the next succeeding Monthly Period. The obligation of Counterparty to pay Fourth Floating Amounts in respect of any Transaction shall survive the related Obligation Termination Date. 

Counterparty Fifth Floating Amounts: 
  

	 Fifth Floating Amount Payer: 
	Counterparty 

  
 Page 14 

	 Fifth Floating Amount: 
	In relation to any Terminated Obligation or Repaid Obligation, Capital Depreciation, if any. 

  

	 Fifth Floating Rate Payer Payment Dates: 
	Each Total Return Payment Date. 

 Payments by Citibank: 

Citibank Fixed Amounts: 
  

	 Fixed Amount Payer: 
	Citibank 

  

	 Fixed Amount: 
	In relation to any Transaction, the Interest and Fee Amount with respect to such Transaction for the related Fixed Amount Payer Payment Date. 

  

	 Fixed Amount Payer Calculation Periods: 
	In relation to each Reference Obligation in the Reference Portfolio, each period from and including any date upon which a payment of interest is made on such Reference Obligation to but excluding the next such date; provided that
(a) the initial Fixed Amount Payer Calculation Period shall commence on and include the Obligation Settlement Date for such Reference Obligation and (b) the final Fixed Amount Payer Calculation Period shall end on, but exclude, the related
Obligation Termination Date. 

  

	 Fixed Amount Payer Payment Dates: 
	(a) In relation to any Transaction (other than in relation to any Terminated Obligation or Repaid Obligation), the fifth Business Day following the last day of any Monthly Period during which any payment of interest is made on the related
Reference Obligation, commencing with the first such date after the Obligation Settlement Date for such Transaction and ending with the last such date occurring prior to the related Obligation Termination Date; and 

 

	 	(b) In relation to any Terminated Obligation or Repaid Obligation, the related Total Return Payment Date. 

Citibank Floating Amounts: 
  

	 Floating Amount Payer: 
	Citibank 

  

	 Floating Amount: 
	In relation to any Terminated Obligation or Repaid Obligation, Capital Appreciation, if any. 

  
 Page 15 

	 Floating Rate Payer Payment Dates: 
	Each Total Return Payment Date. 

  

	3.	REFERENCE OBLIGATION REMOVAL; ACCELERATED TERMINATION. 

Reference Obligation Removal 
 (a) A
Transaction may be terminated in whole by either party (or in part by Counterparty) in accordance with this Clause 3 by the giving of notice (an “Accelerated Termination Notice”) to the other party (each such
termination, an “Accelerated Termination”). 
  

	(i)	Counterparty shall be entitled to terminate any Transaction or any portion thereof by delivering an Accelerated Termination Notice to Citibank that is given (i) on the proposed Termination Trade Date and
(ii) no more than 30 days, and no fewer than 10 days (or, in the case of a Transaction relating to a Bond, three Business Days), prior to the proposed Termination Settlement Date; provided that (x) the Portfolio Criteria set forth
in Annex II would be satisfied on the proposed Termination Trade Date (after giving effect to such termination) and (y) the Net Collateral Value Percentage would be greater than or equal to the Termination Threshold (in each case, after
giving effect to such termination). The Accelerated Termination Notice shall specify the Reference Obligation that is the subject of such Accelerated Termination, the amount of the Terminated Obligation, the proposed Termination Trade Date and the
proposed Termination Settlement Date. 

  

	(ii)	Following the occurrence of a Credit Event (as determined by the Calculation Agent) with respect to the related Reference Entity (including any guarantor or other obligor referred to in the definition thereof), Citibank
shall, at any time after the Obligation Trade Date for the Reference Obligation, be entitled to terminate the related Transaction by delivering an Accelerated Termination Notice to Counterparty that is given (i) on the Termination Trade Date
and (ii) no fewer than 10 days (or, in the case of a Transaction relating to a Bond, three Business Days) prior to the proposed Termination Settlement Date. The Accelerated Termination Notice shall specify the Reference Obligation that is the
subject of such Accelerated Termination, the amount of the Terminated Obligation, the Termination Trade Date and the Termination Settlement Date. 

  

	(iii)	If Counterparty fails to make, when due, any Transfer required under Clause 9 to be made by Counterparty and Citibank gives notice of such failure to Counterparty, then Citibank shall be entitled to terminate each
Transaction that is the subject of this Confirmation by delivering an Accelerated Termination Notice to Counterparty that is given, as to any Terminated Obligation, (i) on the Termination Trade Date and (ii) no fewer than 10 days (or, in
the case of a Transaction relating to a Bond, three Business Days) prior to the proposed Termination Settlement Date. The Accelerated Termination Notice shall specify, as to each Terminated Obligation, the Reference Obligation that is the subject of
such Accelerated Termination, the amount of the Terminated Obligation, the Termination Trade Date and the Termination Settlement Date. 

  
 Page 16 

 Elective Termination by Citibank due to Portfolio Non-Compliance 

(b) If (i) the Reference Portfolio fails to satisfy the Portfolio Criteria at any time or (ii) any Reference Obligation fails to
satisfy the Obligation Criteria at any time, then Citibank may notify Counterparty in writing of such non-compliance. If Counterparty fails to correct such non-compliance within 30 days following the delivery of such notice (any such failure to
correct such non-compliance, a “Portfolio Non-Compliance”), Citibank will then have the right but not the obligation to terminate each Transaction that is the subject of this Confirmation. Citibank can exercise this
termination right with respect to each Terminated Obligation by delivering an Accelerated Termination Notice to Counterparty that is given, as to any Terminated Obligation, (i) on the Termination Trade Date and (ii) no fewer than 10 days
(or, in the case of a Transaction relating to a Bond, three Business Days) prior to the Termination Settlement Date for the related Terminated Obligation. The Accelerated Termination Notice shall, with respect to any Reference Obligation that is the
subject of such Accelerated Termination, specify such Reference Obligation, the amount of the Terminated Obligation, the Termination Trade Date and the Termination Settlement Date. 

Early Termination by Citibank with respect to Citibank Call Date 

(c) Citibank will have the right, but not the obligation, to terminate any Transaction that is the subject of this Confirmation or any portion thereof,
effective on any Business Day occurring on or after the two-year anniversary of the Amendment Effective Date (the “Citibank Call Date”). Citibank can exercise this termination right with respect to any Terminated Obligation
by delivering an Accelerated Termination Notice to Counterparty that is given no fewer than 10 days prior to the proposed Termination Trade Date specified in the related Accelerated Termination Notice. The Accelerated Termination Notice shall
specify the Reference Obligation that is the subject of such Accelerated Termination, the amount of the Terminated Obligation, the proposed Termination Trade Date and the proposed Termination Settlement Date. If Citibank does not exercise its right
to terminate a Transaction that is the subject of this Confirmation on or before the date occurring 10 days prior to the Citibank Call Date, then Citibank will have the right, but not the obligation, to propose, by notice to Counterparty, to amend
and restate one or more material terms of such Transaction, including, without limitation, the Spread, the Independent Amount Percentage and the application of the Obligation Criteria and Portfolio Criteria to such Transaction. If Citibank provides
a notice to Counterparty proposing to amend and restate one or more material terms of a Transaction as provided above and Counterparty does not agree in writing to such amended and restated terms within 10 Business Days after Citibank provides such
notice to Counterparty, such Transaction shall terminate, and the Termination Trade Date shall be such tenth Business Day. In the event of any such termination, Citibank shall deliver an Accelerated Termination Notice to Counterparty, which shall
specify the Reference Obligation that is the subject of such Accelerated Termination, the amount of the Terminated Obligation, the proposed Termination Trade Date and the proposed Termination Settlement Date. Even if a Termination Trade Date has
been designated with respect to a Transaction or portion thereof pursuant to this Clause 3(c), such designation will not prevent Citibank or Counterparty from subsequently designating an earlier Termination Trade Date to the extent Citibank or
Counterparty, as the case may be, is entitled to designate such earlier Termination Trade Date pursuant to this Confirmation. Notwithstanding anything in this Confirmation to the contrary: 

 

	(i)	if Citibank elects to exercise its termination right under this Clause 3(c) with respect to all Transactions that are then the subject of this Confirmation, then each reference to the term “Scheduled
Termination Date” in Clauses 4 (other than Clause 4(c)) and 5 and in the definitions of “Ramp-Down Period” and “Termination Trade Date” will instead be a reference to the date 30 days after the Termination Trade
Date specified in such notice; and 

  
 Page 17 

	(ii)	whether or not Citibank elects to exercise its termination right under this Clause 3(c), each reference to the term “Scheduled Termination Date” in the definitions of “Second Floating Rate Payer
Payment Date” and “Third Floating Rate Payer Payment Date” (and in the provisions of Clause 4(c) dealing with the payment of the discounted present value of Second Floating Amounts and Third Floating Amounts) will be a reference
to the Citibank Call Date. 

 Designation of Early Termination Date 

(d) In the event that an Early Termination Date is designated by either party pursuant to Section 6(a) or 6(b) of the Master Agreement, then, with respect
to the Transactions to which this Confirmation relates, (i) the “Final Price” in relation to each Reference Obligation (as if each Reference Obligation were a “Terminated Obligation”) shall be determined pursuant to
Clause 4(a) or 4(b), as applicable, (ii) such Early Termination Date shall be the “Termination Trade Date” with respect to each Reference Obligation (as if each Reference Obligation were a “Terminated Obligation”),
(iii) each amount that becomes payable by reason of the occurrence of the Termination Trade Date shall be an “Unpaid Amount” and (iv) the foregoing shall not limit the effect of Clause 4(c). 

Effect of Termination 
 (e) With respect to any
Transaction terminated in whole pursuant to this Clause 3, (i) as of the relevant Termination Trade Date the Reference Amount, for all purposes hereof other than calculating Rate Payments, shall be reduced to zero (and, in the case of a
Committed Obligation, the Outstanding Principal Amount thereof shall be reduced to zero) and (ii) as of the relevant Termination Settlement Date the Reference Amount, for purposes of calculating Rate Payments, shall be reduced to zero (and, in
the case of a Committed Obligation, the Outstanding Principal Amount thereof shall be reduced to zero). With respect to any Transaction terminated in part pursuant to this Clause 3, (i) as of the relevant Termination Trade Date the
Reference Amount, for all purposes hereof other than calculating Rate Payments, shall be reduced by the amount of the reduction of the Reference Amount specified in the Accelerated Termination Notice (and, in the case of a Committed Obligation, the
Outstanding Principal Amount shall be reduced by an amount equal to the product of the Outstanding Principal Amount in effect immediately prior to such reduction multiplied by the amount of the reduction of the Reference Amount divided
by the Reference Amount in effect immediately prior to such reduction) and (ii) as of the relevant Termination Settlement Date the Reference Amount, for purposes of calculating Rate Payments, shall be reduced by the amount of the reduction
of the Reference Amount specified in the Accelerated Termination Notice (and, in the case of a Committed Obligation, the Outstanding Principal Amount shall be reduced by an amount equal to the product of the Outstanding Principal Amount in effect
immediately prior to such reduction multiplied by the amount of the reduction of the Reference Amount divided by the Reference Amount in effect immediately prior to such reduction). No later than one Business Day after any Termination
Trade Date (other than the Termination Trade Date in respect of the Termination Date), Citibank shall prepare and deliver to Counterparty a revised Annex I reflecting the Reference Portfolio as of such Termination Trade Date. 

 

	4.	FINAL PRICE DETERMINATION 

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

  
 Page 18 

 Determination by Counterparty 

(a) In order to determine the Final Price in relation to any Terminated Obligation then held by or on behalf of Citibank as a hedge for the related
Transaction, Counterparty may arrange for the sale of such Terminated Obligation by giving notice of such sale to Citibank; provided that Counterparty shall have no right to arrange a sale of a Terminated Obligation pursuant to this
Clause 4(a) in connection with the termination of a Transaction: (i) in the case of a termination pursuant to Clause 3(a)(iii) or 3(b); (ii) in the case of a termination pursuant to Clause 3(d) in connection with an Early
Termination Date designated by reason of an Event of Default as to which Counterparty is the Defaulting Party or a Credit Event Upon Merger or Additional Termination Event as to which Counterparty is the Affected Party; or (iii) if the Net
Collateral Value Percentage would be less than or equal to the Termination Threshold (in each case, after giving effect to such termination). Such notice must be given at least three Business Days prior to the related Termination Settlement Date in
the case of any Terminated Obligation and at least 30 days prior to the Scheduled Termination Date if all Transactions are to be terminated in connection with the Scheduled Termination Date. Any sale (i) must be to (x) an Approved Buyer or
(y) another buyer approved in advance of the Termination Trade Date by Citibank and (ii) must be scheduled to occur no later than the date customary for settlement, substantially in accordance with the then-current market practice in the
principal market for such Terminated Obligation (as determined by the Calculation Agent), following the Termination Trade Date and on or prior to the Scheduled Termination Date if all Transactions are to be terminated in connection with the
Scheduled Termination Date. If Counterparty so arranges any sale, the net cash proceeds received from the sale of any Terminated Obligation, net of the related Costs of Assignment and adjusted by any Delay Compensation as provided in
Clause 6(b), shall be the “Final Price” in relation to that Terminated Obligation. 
 Determination by Calculation Agent

 (b) If the Final Price in relation to any Terminated Obligation is not determined according to Clause 4(a), the Calculation Agent shall attempt
to obtain Firm Bids for such Terminated Obligation with respect to the applicable Termination Trade Date from three or more Dealers. The Calculation Agent will give Counterparty notice of its intention to obtain Firm Bids pursuant to this
Clause 4(b) (such notice to be given telephonically and via electronic mail) not later than two hours prior to the bid submission deadline specified below. By notice to Citibank not later than 30 minutes prior to the bid submission deadline
specified below, Counterparty may, but shall not be obligated to, designate (i) an Approved Buyer or (ii) other Dealer of credit standing acceptable to Citibank in the exercise of its reasonable discretion to provide a Firm Bid (and the
Calculation Agent will seek a Firm Bid from such Approved Buyer or other Dealer if so designated by Counterparty on a timely basis); provided that any such Firm Bid shall be to purchase the entire Reference Amount of each Terminated
Obligation at such time. A “Firm Bid” shall be a good and irrevocable bid for value, to purchase all or a portion of the applicable Terminated Obligation, expressed as a percentage of the Outstanding Principal Amount and
exclusive of accrued interest, for scheduled settlement substantially in accordance with the then-current market practice in the principal market for such Terminated Obligation, as determined by the Calculation Agent, submitted by a Dealer as of 11
a.m. New York time or as soon as practicable thereafter. If there is more than one Terminated Obligation at any time, then the Calculation Agent may in its sole discretion obtain Firm Bids with respect to each separate Terminated Obligation or any
group or groups of such Terminated Obligations. 
 If the Calculation Agent is unable to obtain from Dealers at least one Firm Bid or combination of Firm
Bids for all of the Reference Amount of any Terminated Obligation with respect to the relevant Termination Trade Date, the Calculation Agent will attempt to obtain a Firm Bid or combination of Firm Bids for all of the Reference Amount of such
Terminated Obligation from three or more Dealers until the earlier of (i) the second Business Day (inclusive) following such Termination Trade Date and (ii) the date a Firm Bid or combination of Firm Bids is obtained for all of the
Reference Amount of such Terminated Obligation. 

  
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 If the Calculation Agent is able to obtain at least one Firm Bid or combination of Firm Bids for all of the
Reference Amount of any Terminated Obligation, the Final Price in relation to such Terminated Obligation shall be determined by reference to such Firm Bid or Firm Bids. If no Firm Bids are obtained on or before such second Business Day for all or a
portion of the applicable Terminated Obligation, the Final Price shall be deemed to be zero with respect to such Terminated Obligation (or portion thereof) for which no Firm Bid was obtained. The Calculation Agent will conduct the bid process in
accordance with the procedures set forth in this Clause 4(b) and otherwise in a commercially reasonable manner. 
 Notwithstanding anything to the
contrary herein, 
  

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

  

	(ii)	if the Calculation Agent determines that the highest Firm Bid obtained in connection with any Termination Trade Date is not bona fide, including, without limitation, due to (x) the insolvency of the bidder,
(y) the inability, failure or refusal of the bidder to settle the purchase of the related Terminated Obligation or portion thereof, as applicable, or otherwise settle transactions in the relevant market or perform its obligations generally or
(z) the Calculation Agent provides notice to Counterparty specifying its other reasonable grounds for insecurity concerning the bidder’s ability to settle the purchase of the related Terminated Obligation or portion thereof, as applicable,

 that Firm Bid shall be disregarded and the Calculation Agent shall designate a new Termination Trade Date;
provided that the Calculation Agent shall designate a new Termination Trade Date pursuant to this paragraph only once. If the highest Firm Bid for any portion of the related Terminated Obligation determined in
connection with the second Termination Trade Date is disregarded pursuant to this paragraph, the Calculation Agent shall have no obligation to obtain further bids, and the applicable “Final Price” in relation to the portion
which was so disregarded shall be deemed to be zero. 
 If Citibank transfers, or causes the transfer of, the Terminated
Obligation to the Dealer or Dealers providing the highest Firm Bid or combination of Firm Bids, the net cash proceeds received from the sale of such Terminated Obligation (which sale shall be scheduled to settle substantially in accordance with the
then-current market practice in the principal market for the related Reference Obligation as determined by the Calculation Agent), net of the related Costs of Assignment and adjusted by any Delay Compensation as provided in Clause 6(b), shall
be the “Final Price” in relation to that Terminated Obligation (or the portion thereof that is sold). 

If Citibank determines, in its sole discretion, not to sell or cause the sale of any portion of any Terminated Obligation to the entity or
entities providing the highest Firm Bid or combination of Firm Bids, the “Final Price” in relation to such unsold portion shall be equal to the greater of (a) zero and (b) the sum of (i) the Outstanding
Principal Amount of such Terminated Obligation as of the Termination Trade Date  

  
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multiplied by the highest Firm Bid or combination of Firm Bids for all of the Reference Amount of such Terminated Obligation minus (ii) the product of (x) the excess, if
any, of the Commitment Amount of such Terminated Obligation as of the Termination Trade Date over the Outstanding Principal Amount of such Terminated Obligation as of the Termination Trade Date multiplied by (y) 100% minus the
highest Firm Bid or combination of Firm Bids for all of the Reference Amount of such Terminated Obligation. The Calculation Agent may perform any of its duties under this Clause 4(b) through any Affiliate designated by it, but no such
designation shall relieve the Calculation Agent of its duties under this Clause 4(b). 
 Early Termination of Facility 

(c) For the avoidance of doubt, if the Termination Date occurs prior to the Scheduled Termination Date, each Counterparty Second Floating Amount shall continue
to be payable by Counterparty on each subsequent Second Floating Amount and Counterparty Third Floating Rate Payer Payment Date occurring on or prior to the Scheduled Termination Date; provided that, if either party shall so specify in
writing to the other party prior to any final Termination Trade Date, then on such final Termination Trade Date (i) the obligation of Counterparty to continue to pay each Counterparty Second Floating Amount on each subsequent Second Floating
Rate Payer Payment Date, and to pay and each Counterparty Third Floating Amount on each subsequent Third Floating Rate Payer Payment Date, occurring on or prior to the Scheduled Termination Date shall terminate and be replaced by the obligation in
the following clause and (ii) Counterparty shall pay to Citibank an amount equal to the present value (as calculated by the Calculation Agent with discounting on a continuous basis) of each Counterparty Second Floating Amount and payable
(without regard to the termination of such obligation under the foregoing clause) on each subsequent Second Floating Rate Payer Payment Date occurring on or prior to the Scheduled Termination Date and (ii) each Counterparty Third Floating
Amount and payable (without regard to the termination of such obligation under the foregoing clause) on each subsequent Third Floating Rate Payer Payment Date occurring on or prior to the Scheduled Termination Date, discounted to such final
Termination Trade Date at a discount rate per annum equal to the Discount Rate. For this purpose, (i) the Minimum Portfolio Notional Amount shall be 70% of the Maximum Notional Amount and (ii) the “Discount Rate”
means the zero coupon swap rate (as determined by the Calculation Agent) implied by the fixed rate offered to be paid by Citibank under a fixed for floating interest rate swap transaction with a remaining Term equal to the period from such final
Termination Trade Date to the Scheduled Termination Date in exchange for the receipt of payments indexed to USD-LIBOR-BBA. 

 

	5.	REPAYMENT. 

 If all or a portion of the Reference Amount of any Reference
Obligation is repaid or otherwise reduced (in the case of a Committed Obligation, only if the Reference Amount thereof is permanently reduced) (including, without limitation, through any exercise of any right of set-off, reduction, or counterclaim
that results in the satisfaction of the obligations of such Reference Entity to pay any principal owing in respect of such Reference Obligation) on or prior to the Scheduled Termination Date (the amount of such repayment or other reduction, a
“Repayment”; the portion of the related Reference Obligation so repaid or otherwise reduced, a “Repaid Obligation”; and the date of such Repayment, the “Repayment Date”):

  

	(a)	the Total Return Payment Date with respect to the Repaid Obligation will be the fifth Business Day next succeeding the last day of the Monthly Period in which the Repayment Date occurred; 

 

	(b)	as of the related Repayment Date, the Reference Amount of such Reference Obligation shall be decreased by an amount equal to the principal amount of the Repaid Obligation; and 

  
 Page 21 

	(c)	the related Final Price of the Repaid Obligation shall be (i) in the case of a Committed Obligation, the portion of the Reference Amount that is permanently reduced on such Repayment Date and (ii) in the case
of a Term Obligation, the amount of principal and premium in respect of principal paid by such Reference Entity on the Repaid Obligation to holders thereof on such Repayment Date. No later than one Business Day after any Repayment Date, Citibank
shall prepare and deliver to Counterparty a revised Annex I reflecting the Reference Portfolio as of such Repayment Date. 

  

	6.	ADJUSTMENTS. 

 (a) If any Reference Obligation or any portion thereof is irreversibly
converted or exchanged into or for any securities, obligations, cash or other assets or property (“Exchange Consideration”), thereafter such Exchange Consideration will constitute such Reference Obligation or portion thereof,
and the Calculation Agent shall adjust the terms of any Transaction relating to such Reference Obligation as the Calculation Agent determines appropriate to preserve the theoretical value of such Transaction to the parties immediately prior to such
exchange or, if such exchange results in a change in value, the proportionate post-exchange value, and determine the effective date of such adjustments. 

(b) Delay Compensation (as defined below) shall result in an adjustment (i) as contemplated by the definition of “Interest and Fee Amount” in
connection with the establishment by the Citibank Holder of a related hedge in respect of a Transaction, if the actual settlement of the purchase of the related hedge occurs after the date scheduled for the settlement of such purchase and
(ii) of a Final Price with respect to a Terminated Obligation in connection with the termination by the Citibank Holder of a related hedge, if the actual settlement of the sale of the related hedge occurs after the date scheduled for the
settlement of such sale; provided that Delay Compensation shall be payable in connection with any such termination only to the extent the related Final Price does not already reflect such adjustment for Delay Compensation, as determined by
the Calculation Agent. “Delay Compensation” shall accrue (x) in the case of clause (i) above, from and including the date scheduled for the settlement of the purchase effected to establish the related hedge to but
excluding the actual settlement of such purchase (and, during such period, (A) the Counterparty First Floating Amount shall be calculated by reference to the Spread and not the Floating Rate Option and (B) Interest and Fee Amounts will be
determined without regard to payments in respect of the interest rate index used in the Reference Obligation Credit Agreement to calculate interest payments in respect of the related Reference Obligation and in effect during such period) and
(y) in the case of clause (ii) above, from and including the date scheduled for the sale effected to terminate the related hedge to but excluding the actual settlement of such sale (and, during such period, (A) the Counterparty First
Floating Amount shall be calculated by reference to the Floating Rate Option and not the Spread and (B) Interest and Fee Amounts shall be reduced by interest accrued during such period in excess of the interest rate index used in the Reference
Obligation Credit Agreement to calculate interest payments in respect of the related Reference Obligation and in effect during such period). In connection with any adjustment by reason of Delay Compensation, (i) any initial Payment Date in this
Confirmation determined by reference to the “Obligation Settlement Date” shall be determined as if the Obligation Settlement Date were the actual settlement of the purchase of the related hedge and (ii) any final Payment Date in this
Confirmation determined by reference to the “Termination Settlement Date” shall be determined as if the Termination Settlement Date were the actual settlement of the termination of the related hedge. 

(c) If (i) Citibank elects to establish a hedge as a result of the addition or increase in the Reference Amount of any Reference Obligation that is the
subject of a Transaction and (ii) the Citibank Holder is unable after using commercially reasonable efforts to effect the settlement of such hedge, then, by notice to Counterparty, Citibank may in its sole discretion, specify that such addition
or increase in the Reference Amount of such Reference Obligation will not be effective. 

  
 Page 22 

	7.	REPRESENTATIONS, WARRANTIES AND AGREEMENTS. 

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

 

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

  

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

  

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

  

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

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

	(i)	such Transaction does not create any direct or indirect obligation of any Reference Entity or any direct or indirect participation in any Reference Obligation or any other obligation of any Reference Entity;

  

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

 

	(iii)	 except as provided in Clause 7(d)(iv), each party and its Affiliates and the Calculation Agent may, whether by virtue of the types of
relationships described herein or otherwise, at the date hereof or at any time hereafter, be in possession of information regarding any Reference Entity or any Affiliate of any Reference Entity that is or may be material in the context of such
Transaction 

  
 Page 23 

	 	
and that may or may not be publicly available or known to the other party. In addition, except as provided in Clause 7(b)(vii), this Confirmation does not create any obligation on the part
of such party and its Affiliates to disclose to the other party any such relationship or information (whether or not confidential); 

  

	(iv)	neither Citibank nor any of its Affiliates shall be under any obligation to hedge such Transaction or to own or hold any Reference Obligation as a result of such Transaction, and Citibank and its Affiliates may
establish, maintain, modify, terminate or re-establish any hedge position or any methodology for hedging at any time without regard to Counterparty. Counterparty acknowledges and agrees that it is not relying on any representation, warranty or
statement by Citibank or any of its Affiliates as to whether, at what times, in what manner or by what method Citibank or any of its Affiliates may engage in any hedging activities; 

 

	(v)	notwithstanding any other provision in this Confirmation or any other document, Citibank and Counterparty (and each employee, representative, or other agent of Citibank or Counterparty) may each disclose to any and all
persons, without limitation of any kind, the U.S. tax treatment and U.S. tax structure of the transaction and all materials of any kind (including opinions or other tax analyses) that are provided to them relating to such U.S. tax treatment and U.S.
tax structure (as those terms are used in Treasury Regulations under Sections 6011, 6111 and 6112 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”)), other than any information for which nondisclosure is
reasonably necessary in order to comply with applicable securities laws. To the extent not inconsistent with the previous sentence, Citibank and Counterparty will each keep confidential (except as required by law) all information unless the other
party has consented in writing to the disclosure of such information; 

  

	(vi)	if Citibank chooses to hold a Reference Obligation as a result of any Transaction, Citibank shall hold such Reference Obligation directly or through an Affiliate (the “Citibank Holder”). The
Citibank Holder may deal with such Reference Obligation as if the related Transaction did not exist, provided that, so long as the Citibank Holder remains the lender of record with respect to such Reference Obligation, upon any occasion
permitting the Citibank Holder to exercise any right in relation to such Reference Obligation to give or withhold consent (an “Election”) to an action proposed to be taken (or to be refrained from being taken), the Citibank
Holder shall, insofar as permitted under (x) applicable laws, rules and regulations and (y) each provision of any agreement or instrument evidencing or governing such Reference Obligation (and, in the case of any participation interest,
governing such participation interest), give its consent to the action proposed to be taken (or to be refrained from being taken), unless (A) Counterparty, by timely notice to Citibank, requests (a “Counterparty Election
Request”) that the Citibank Holder withhold such consent and (B) the Citibank Holder, in its sole discretion, elects to withhold such consent in accordance with the Counterparty Election Request. Notwithstanding the foregoing:
(1) the Citibank Holder shall have no obligation to respond to, or consult with Counterparty in relation to, a Counterparty Election Request (failure to respond to a Counterparty Election Request being deemed a denial); (2) the Citibank
Holder shall have no other duties or obligations to Counterparty of any nature with respect to any Election or any Counterparty Election Request; (3) the Citibank Holder shall not be liable to Counterparty or any of its Affiliates for the
consequences of any consent given or withheld by the Citibank Holder in connection with such Reference Obligation (whether or not pursuant to a Counterparty Election Request); and (4) if the Citibank Holder elects in its sole discretion to
withhold its consent in accordance with a Counterparty Election Request, the Citibank Holder may subsequently determine to give such consent at any time without notice to Counterparty; and 

  
 Page 24 

	(vii)	in connection with each Reference Obligation that is held by a Citibank Holder as a result of any Transaction, the Citibank Holder will promptly (and in any event within one Business Day after receipt) deliver or cause
to be delivered to Counterparty the following information and documentation, in each case, to the extent actually received by the Citibank Holder from the Reference Entity or its agents under the related Reference Obligation Credit Agreement: all
notices of any borrowings, prepayments and interest rate settings, all amendments, waivers and other modifications (whether final or proposed) in relation to the terms of the Reference Obligation; and all notices given by the Reference Entity to the
lenders or their agent or by the lenders or their agent to the Reference Entity in relation to the exercise of remedies. 

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

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

  

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

 

	(iii)	such Transaction is intended to be a “security-based swap” subject to regulation by the Securities and Exchange Commission; and 

 

	(iv)	in the case of Citibank, it is a “security-based swap dealer” for purposes of Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, as amended, and the rules and regulations of
the Securities and Exchange Commission thereunder. 

 (d) Counterparty hereby represents to Citibank that: 

 

	(i)	its financial condition is such that it has no need for liquidity with respect to its investment in any Transaction and no need to dispose of any portion thereof to satisfy any existing or contemplated undertaking or
indebtedness. Its investments in and liabilities in respect of any Transaction, which it understands is not readily marketable, are not disproportionate to its net worth, and it is able to bear any loss in connection with any Transaction, including
the loss of its entire investment in such Transaction; 

  

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

  

	(iii)	it is not an Affiliate of any Reference Entity; 

  

	(iv)	 as of (x) the relevant Obligation Trade Date and (y) any date on which a sale is effected pursuant to Clause 4(a) or on which the
Calculation Agent solicits Firm Bids pursuant to Clause 4(b), neither Counterparty nor any of its Affiliates, whether by virtue of the types of relationships described herein or otherwise, is on such date in possession of information regarding
any related Reference Entity or any Affiliate of such Reference Entity that is or may be material in the context of such Transaction or the purchase or sale of any related Reference Obligation unless such information either (x) is publicly
available or (y) has been made available to each registered owner of such Reference Obligation on a basis that permits such registered owner to disclose 

  
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such information to any assignee of or participant (whether on a funded or unfunded basis) in, or any prospective assignee of or participant (whether on a funded or unfunded basis) in, any rights
or obligations under the related Reference Obligation Credit Agreement; 

  

	(v)	it has delivered to Citibank on or prior to the date hereof (and it will, prior to any expiration of any such form previously so delivered, deliver to Citibank) a United States Internal Revenue Service Form W-9 (or
applicable successor form), properly completed and signed (which representation shall also be made for purposes of Section 3(f) of the Master Agreement); 

  

	(vi)	it could have received all payments on the Reference Obligation without U.S. Federal or foreign withholding tax if it owned the Reference Obligation (which representation shall also be made for purposes of
Section 3(f) of the Master Agreement); and 

  

	(vii)	it is not, for U.S. Federal income tax purposes, a tax-exempt organization and to the extent it is a pass-through entity for U.S. Federal income tax purposes, it either has disclosed or will disclose to its tax-exempt
investors, if any, that direct and indirect investments of Counterparty may cause tax-exempt investors of Counterparty to recognize unrelated business taxable income. 

(e) Except for disclosure authorized pursuant to Clause 7(b)(v), Counterparty agrees to be bound by the confidentiality provisions of the related
Reference Obligation Credit Agreement with respect to all information and documentation in relation to a Reference Entity or a Reference Obligation delivered to Counterparty hereunder. Counterparty acknowledges that such information may include
material non-public information concerning the Reference Entity or its securities and agrees to use such information in accordance with applicable law, including Federal and State securities laws. 

(f) Section 2(c)(ii) of the Master Agreement shall not apply to the Transactions to which this Confirmation relates. 

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

 

	8.	ADJUSTMENTS RELATING TO CERTAIN UNPAID OR RESCINDED PAYMENTS. 

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

  
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 (b) If, with respect to any Repaid Obligation, the corresponding payment of principal of the Repaid Obligation is
required to be returned (in whole or in part) by a holder thereof (including, without limitation, the Citibank Holder) to the applicable Reference Entity or paid to any other person or entity or is otherwise rescinded pursuant to any bankruptcy or
insolvency law or any other applicable law, then (i) the parties hereto shall be restored severally and respectively to their former positions hereunder and thereafter all rights and obligations of the parties hereunder shall continue as though
no Repayment had occurred and (ii) without limiting the generality of the foregoing, if either party has made a payment to the other party in respect of Capital Appreciation or Capital Depreciation related to such Repayment as provided under
Clause 2, then the party that received the payment in respect of such Capital Appreciation or Capital Depreciation, as applicable, shall repay such amount (subject to Clause 8(c)) to the other party. If such returned, paid or otherwise
rescinded amount is subsequently paid by the related Reference Entity or any such other person or entity, then the relevant party shall pay the amount of such Capital Appreciation or Capital Depreciation, as applicable, within five Business Days
after the date of such subsequent payment. 
 (c) Amounts payable pursuant to this Clause 8 shall be subject to adjustment by the Calculation Agent, in
order to preserve for the parties the intended economic risks and benefits of the relevant Transaction. 
 (d) The payment obligations of Citibank and
Counterparty pursuant to this Clause 8 shall survive the termination of all Transactions. 
  

	9.	CREDIT SUPPORT. 

 There shall be an Independent Amount with respect to
Counterparty for each Transaction equal to the Reference Amount for such Reference Obligation multiplied by the percentage set forth in Annex I under the caption “Independent Amount Percentage”. 

Notwithstanding anything in the Credit Support Annex (the “Credit Support Annex”) to the Schedule to the Master
Agreement to the contrary, the following collateral terms shall apply to each Transaction to which this Confirmation relates (capitalized terms used in this Clause 9 but not otherwise defined in this Confirmation have the respective meanings
given to such terms in the Credit Support Annex): 
  

	(a)	With respect to each Transaction to which this Confirmation relates, a single “Independent Amount” shall be applicable to Counterparty in an amount equal to the Notional Amount with respect to such Transaction
(or, in the case of any increase of the Notional Amount under any Transaction, the amount of such increase) multiplied by the percentage set forth in Clause 9(b) under the caption “Independent Amount Percentage”. Not later than
one Business Day after the Obligation Trade Date with respect to any Transaction (or the date of any increase in the related Independent Amount), Counterparty as Pledgor will Transfer to Citibank as Secured Party Eligible Collateral having a Value
as of the date of Transfer equal to the related Independent Amount (or increase in the related Independent Amount) determined pursuant this Clause 9(a). 

  

	(b)	With respect to each Transaction to which this Confirmation relates, the “Independent Amount Percentage” applicable to such Transaction will be equal to: 

 

			
	 Condition
	  	 Independent Amount Percentage

	(i) Except as indicated in clauses (ii) and (iii) below, with respect to any Transaction:	  	25%
		
	(ii) Except as indicated in clause (iii) below, with respect to any Transaction relating to a Specified Reference Obligation:	  	Such percentage as Citibank shall specify on or prior to the Obligation Trade Date for such Transaction
		
	(iii) With respect to any Transaction relating to a Reference Obligation whose Reference Entity is the subject of a Credit Event:	  	Such percentage as Citibank shall specify from time to time in its sole discretion in a notice to Counterparty

  
 Page 27 

	(c)	In no event shall Citibank as Secured Party be obligated to Transfer Posted Credit Support in respect of a Return Amount to Counterparty as Pledgor if (i) the Value as of any Valuation Date of all Posted Credit
Support Transferred to Citibank as secured party pursuant to Clause 9(a) and not returned to Counterparty would be less than (ii) the aggregate of all Independent Amounts determined pursuant to Clause 9(a). 

 

	(d)	Solely for the purpose of determining any Delivery Amount or Return Amount pursuant to the Credit Support Annex, (i) in no event shall Counterparty as a Secured Party have any positive “Exposure” to
Citibank with respect to the Transactions (in aggregate) to which this Confirmation relates and (ii) without limiting Clause 3(a)(iii) or 9(e), in no event shall Citibank as a Secured Party have any positive “Exposure” to
Counterparty with respect to the Transactions (in aggregate) to which this Confirmation relates. 

  

	(e)	If (i) the Net Collateral Value Percentage on any Valuation Date is less than the Termination Threshold on such Valuation Date and (ii) Citibank gives notice thereof to Counterparty on any Business Day,
Counterparty shall, no later than one Business Day after the date of such notice from Citibank, effect the Transfer to Citibank as Secured Party of Eligible Collateral such that the Net Collateral Value Percentage after giving effect to such
Transfer is at least equal to the Cure Threshold. In addition, Counterparty may, on any Business Day, effect the Transfer to Citibank as Secured Party of any additional Eligible Collateral. 

 

	(f)	Notwithstanding anything in this Confirmation to the contrary (including in Clause 3(e)), if a Termination Trade Date occurs (i) during the Ramp-Down Period, (ii) because all Transactions are being
terminated in connection with the occurrence of the Scheduled Termination Date (including pursuant to Clause 3(c)) or (iii) in connection with a termination of all Transactions at a time when Counterparty may not arrange sales of
Terminated Obligations pursuant to Clause 4(a) by reason of the proviso therein, then, for purposes of determining the effect on the Return Amount with respect to the related Terminated Obligation, the Reference Amount of such Terminated
Obligation shall not be reduced to zero until the Business Day next succeeding the Termination Settlement Date. 

  

	(g)	If Counterparty enters into any Transaction under the Master Agreement other than the Transactions contemplated by this Confirmation (each, a “Separate Transaction”), then the Credit Support
Amount with respect to Counterparty as Pledgor shall never be less than the “Credit Support Amount” with respect to Counterparty as Pledgor calculated (i) solely with reference to all Separate Transactions and (ii) without regard
to the aggregate of all Independent Amounts applicable to Counterparty as Pledgor under this Confirmation. 

  

	(i)	Any Transfer required to be made pursuant to this Clause 9 shall be a Transfer made under the Credit Support Annex (and not a payment or delivery made under Section 2(a)(i) of the Master Agreement).

  
 Page 28 

	10.	NOTICE AND ACCOUNT DETAILS. 

 Notices to
Citibank: 
 Citibank, N.A., New York Branch 

390 Greenwich Street, 4th Floor 

New York, New York 10013 
 Tel:
(212) 723-6181 
 Fax: (646) 291-5779 

Attn: Mitali Sohoni 
 with a copy
to: 
 Office of the General Counsel 

Fixed Income and Derivatives Sales and Trading 

Citibank, N.A., New York Branch 

388 Greenwich Street, 17th Floor 

New York, New York 10013 
 Tel:
(212) 816-2121 
 Fax: (646) 862-8431 

Attn: Craig Seledee 
 Notices to Counterparty:

 Arbor Funding LLC 
 c/o
Sierra Income Corporation 
 375 Park Avenue 

Suite 3304 
 New York, New York
10052 
 Attention: Richard Allorto and Steve Henke 

Telephone: (212) 759-0777 
 Fax:
(212) 759-0091 
 Payments to Citibank: 

Citibank, N.A., New York 
 ABA
No.: 021-000-089 
 Account No.: 00167679 

Ref: Financial Futures 
 Payments to
Counterparty: 
 State Street Bank and Trust Co. NA Boston 

BIC Code: SBOSUS33XXX 
 ABA No.:
011000028 
 Account No.: 10246080 

Account Name: Sierra Income Corporation - MCXC 

Memo: Arbor Funding LLC 

  
 Page 29 

	11.	OFFICES. 

  

	(a)	The Office of Citibank for each Transaction: 

 New York 

 

	(b)	The Office of Counterparty for each Transaction: 

 Delaware 

  
 Page 30 

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

Very truly yours, 
 CITIBANK, N.A. 

 

			
	By:	 	  

		 	Name:
		 	Title:

 CONFIRMED AND AGREED 
 AS OF THE
DATE FIRST ABOVE WRITTEN: 
 ARBOR FUNDING LLC 
  

			
	By:	 	  

		 	Name:
		 	Title:

  
 Page 31 

 ANNEX A 

ADDITIONAL DEFINITIONS 

“Affiliate”, for purposes of this Confirmation only, has the meaning given to such term in Rule 405 under the
Securities Act of 1933, as amended. 
 “Approved Buyer” means (a) any entity listed in
Annex III so long as its long-term unsecured and unsubordinated debt obligations on the “trade date” for the related purchase or submission of a Firm Bid contemplated hereby are rated at least “Baa1” by Moody’s and at
least “BBB+” by S&P and (b) if an entity listed in Annex III is not the principal banking or securities Affiliate within a financial holding company group, the principal banking or securities Affiliate of such listed entity
within such financial holding company group so long as such obligations of such Affiliate have the rating indicated in clause (a) above. 

“Bond” means any obligation for the payment or repayment of borrowed money that is in the form of, or represented by, a
bond, note (other than notes delivered pursuant to Loans), certificated debt security or other debt security. 
 “Capital
Appreciation” and “Capital Depreciation” mean, for any Total Return Payment Date, the amount determined according to the following formula for the applicable Terminated Obligation or Repaid Obligation: 

Final Price – Applicable Notional Amount 

where 
 “Final
Price” means (a) in the case of any Terminated Obligation, the amount determined pursuant to Clause 4, and (b) in the case of any Repaid Obligation, the amount determined pursuant to Clause 5, and 

“Applicable Notional Amount” means the Notional Funded Amount (determined immediately prior to the
related Repayment Date or Termination Trade Date) for such Terminated Obligation or Repaid Obligation, as applicable. 
 If such amount is
positive, such amount is “Capital Appreciation” and if such amount is negative, the absolute value of such amount is “Capital Depreciation”. 

“Committed Obligation” means (a) any Delayed Drawdown Reference Obligation and (b) any Revolving Reference
Obligation. 
 “Costs of Assignment” means, in the case of any Terminated Obligation, the sum of
(a) any actual costs of transfer or assignment paid by the seller under the terms of any Terminated Obligation or otherwise actually imposed on the seller by any applicable administrative agent, borrower or obligor incurred in connection with
the sale of such Terminated Obligation and (b) any reasonable expenses incurred by the seller in connection with such sale and, if transfers of the Terminated Obligation are subject to the Standard Terms and Conditions for Distressed Trade
Confirmations, as published by the LSTA and as in effect on the Obligation Trade Date, legal costs incurred by the seller in connection with such sale, in each case to the extent not already reflected in the Final Price. 

  
 Page 32 

 “Credit Event” means the occurrence of a Bankruptcy or Failure to Pay. For
purposes of the determination of whether a Credit Event has occurred, the Obligation Category will be Borrowed Money, the Payment Requirement will be USD1,000,000 and no Obligation Characteristics will be specified. Capitalized terms used in this
definition but not defined in this Confirmation shall have the meanings specified in the 2003 ISDA Credit Derivatives Definitions. 

“Current Price” means, with respect to any Reference Obligation on any date of determination, the Calculation
Agent’s determination of the net cash proceeds that would be received from the sale on such date of determination of such Reference Obligation, net of the related Costs of Assignment. If Counterparty disputes the Calculation Agent’s
determination of the Current Price of any Reference Obligation, then Counterparty may, no later than three hours after Counterparty is given notice of such determination, designate two entities, each of which is either (a) an Approved Buyer or
(b) another Dealer of credit standing acceptable to Citibank in the exercise of its reasonable discretion to provide a Firm Bid to Citibank within such three-hour period. The highest of such two Firm Bids will be the Current Price. The
“Current Price” shall be expressed as a percentage of par and will be determined exclusive of accrued interest. 

“Dealer” means (i) an Approved Buyer, (ii) any other nationally recognized independent dealer in the related
Reference Obligation chosen by the Calculation Agent or its designated Affiliate (other than the Calculation Agent or any of its Affiliates) or (in the case of Clause 4(b)) by Counterparty or (iii) any other entity (other than the
Calculation Agent or any of its Affiliates) designated by the Calculation Agent or its designated Affiliate in its sole discretion as a “Dealer” for the purposes of this Confirmation. 

“Delayed Drawdown Reference Obligation” means a Reference Obligation that (a) requires the holder thereof to make
one or more future advances to the borrower under the instrument or agreement pursuant to which such Reference Obligation was issued or created, (b) specifies a maximum amount that can be borrowed on one or more fixed borrowing dates and
(c) does not permit the re-borrowing of any amount previously repaid; provided that, on any date on which all commitments by the holder thereof to make advances to the
borrower under such Delayed Drawdown Reference Obligation expire or are terminated or reduced to zero, such Reference Obligation shall cease to be a Delayed Drawdown Reference Obligation. 

“Expense or Other Payment” means the aggregate amount of any payments (other than extensions of credit) due from the
lender(s) in respect of any Reference Obligation, including, without limitation, (a) any expense associated with any amendment, modification or waiver of the provisions of a credit agreement, (b) any reimbursement of any agents under the
provisions of a credit agreement, and (c) any indemnity or other similar payment, including amounts owed on or after the related Obligation Termination Date in respect of amounts incurred or any event that occurred before the related Obligation
Termination Date. 
 “Interest and Fee Amount” means, for any Citibank Fixed Amount Payer Payment Date
and any Transaction, the aggregate amount of interest (including interest breakage costs), fees (including, without limitation, amendment, consent, tender, facility, letter of credit and other similar fees) and other amounts (other than in respect
of principal and premium paid in respect of principal) paid with respect to the related Reference Obligation (after deduction of any withholding taxes for which the Reference Entities are not obligated to reimburse holders of the related Reference
Obligation, if applicable) during the relevant Citibank Fixed Amount Payer Calculation Period; provided that Interest and Fee Amounts: 

 

	(a)	 in the case of “Interest and Accruing Fees” (as defined in the “Standard Terms and Conditions for Par/Near Par Trade
Confirmations” or “Standard Terms and Conditions for Distressed Trade Confirmations”, as applicable to the relevant Reference Obligation, most recently published by 

  
 Page 33 

	 	
the LSTA prior to the Trade Date), shall not include any amounts that accrue prior to the Obligation Settlement Date for the related Reference Obligation or that accrue on or after the Obligation
Termination Date for the related Reference Obligation or portion thereof, 

  

	(b)	in the case of “Non-Recurring Fees” (as so defined), shall not include any amounts that (i) are paid with respect to any event occurring prior to the Obligation Trade Date, or on or after the Termination
Trade Date, for the related Reference Obligation or portion thereof or (ii) are paid with respect to the related Reference Obligation that is not held by or on behalf of Citibank as a hedge for the related Transaction, 

 

	(c)	shall be determined after deducting all customary and reasonable expenses that would be incurred by a buyer in connection with any purchase of the Reference Obligation as a hedge for such Transaction and, in connection
with the establishment by the Citibank Holder of a related hedge in respect of such Transaction and shall be adjusted by any Delay Compensation as provided in Clause 6(b); 

 

	(d)	in the case of any Transaction as to which the related Reference Obligation is a Committed Obligation, shall include only 75% of fees that are stated to accrue on or in respect of the unfunded portion of any Commitment
Amount; and 

  

	(e)	in the case of any Transaction as to which the related Reference Obligation is a Bond, (i) shall not include any Purchased Accrued Interest and (ii) if such Bond is a Terminated Obligation, the Citibank Fixed
Amount for the related Citibank Fixed Amount Payer Payment Date shall be increased by an amount equal to Sold Accrued Interest in respect of such Terminated Obligation. 

“Loan” means any obligation for the payment or repayment of borrowed money that is documented by a term loan agreement, revolving loan
agreement or other similar credit agreement. 
 “LSTA” means The Loan Syndications and Trading Association, Inc. and any successor
thereto. 
 “Portfolio Target Amount” means (a) during the Ramp-Up Period, the Maximum Portfolio Notional Amount,
(b) during the Ramp-Down Period, the Portfolio Notional Amount on the day immediately preceding the first day of the Ramp-Down Period and (c) otherwise, the Portfolio Notional Amount. 

“Purchased Accrued Interest” means, with respect to any Transaction as to which the related Reference Obligation is a
Bond, unpaid interest on such Reference Obligation accrued to the Obligation Settlement Date for such Transaction. 

“Rate Payments” means Counterparty First Floating Amounts, Counterparty Second Floating Amounts, Counterparty Third
Floating Amounts and Citibank Fixed Amounts. 
 “Revolving Reference Obligation” means a Reference
Obligation that (a) requires the holder thereof to make one or more future advances to the borrower under the instrument or agreement pursuant to which such Reference Obligation was issued or created, (b) specifies a maximum aggregate
amount that can be borrowed and (c) permits, during any period on or after the date on which the holder thereof acquires such Reference Obligation, the re-borrowing of any amount previously repaid;
provided that, on the date that all commitments by the holder thereof to make advances to the borrower under such Revolving Reference Obligation expire or are terminated or reduced to zero, such Reference
Obligation shall cease to be a Revolving Reference Obligation. 

  
 Page 34 

 “Second Lien Obligation” means a Loan or Bond that is secured by collateral, but as to
which the beneficiary or beneficiaries of such collateral security agree for the benefit of the holder or holders of other indebtedness secured by the same collateral (“First Lien Debt”) as to one or more of the following:
(1) to defer their right to enforce such collateral security either permanently or for a specified period of time while First Lien Debt is outstanding, (2) to permit a holder or holders of First Lien Debt to sell such collateral free and
clear of the security in favor of such beneficiary or beneficiaries, (3) not to object to sales of assets by the obligor on such Loan or Bond following the commencement of a bankruptcy or other insolvency proceeding with respect to such obligor
or to an application by the holder or holders of First Lien Debt to obtain adequate protection in any such proceeding and (4) not to contest the creation, validity, perfection or priority of First Lien Debt. 

“Sold Accrued Interest” means, with respect to any Transaction as to which the related Reference Obligation is a Bond, unpaid interest
on such Reference Obligation accrued from and including the most recent interest payment date on such Bond to the Termination Settlement Date for such Transaction that is paid to the seller of such Reference Obligation on the Termination Settlement
Date. 
 “Specified Reference Obligation” means any Reference Obligation (a) that is a Bond or (b) that is designated as
such by Counterparty in a notice to Citibank on or prior to the related Obligation Trade Date and whose inclusion in the Reference Portfolio (other than as a “Specified Reference Obligation”) would not on the related Obligation Trade Date
satisfy one or more of clauses (ix) through (xiii) of the Obligation Criteria. 
 “Subordinate” means, with
respect to an obligation (the “Subordinated Obligation”) and another obligation of the obligor thereon to which such obligation is being compared (the “Senior Obligation”), a contractual, trust or
similar arrangement (without regard to the existence of preferred creditors arising by operation of law or to collateral, credit support, lien or other credit enhancement arrangements or provisions regarding the application of proceeds of any of the
foregoing) providing that (i) upon the liquidation, dissolution, reorganization or winding up of the obligor, claims of the holders of the Senior Obligation will be satisfied prior to the claims of the holders of the Subordinated Obligation or
(ii) the holders of the Subordinated Obligation will not be entitled to receive or retain payments in respect of their claims against the obligor at any time that the obligor is in payment arrears or is otherwise in default under the Senior
Obligation. 
 “Term Obligation” means any Reference Obligation that is not a Committed
Obligation. 
 “Terminated Obligation” means any Reference Obligation or portion of any Reference
Obligation with respect to which the related Transaction (or portion thereof) whose Final Price is determined pursuant to Clause 4. 

“Termination Settlement Date” means, for any Terminated Obligation, the date customary for settlement, substantially in
accordance with the then-current market practice in the principal market for such Terminated Obligation (as determined by the Calculation Agent), of the sale of such Terminated Obligation with the trade date for such sale occurring on the related
Termination Trade Date. 
 “Termination Trade Date” means, with respect to any Terminated Obligation,
the date so designated in the related Accelerated Termination Notice or as provided in Clause 3(d); provided that: 
  

	(a)	 except as provided in the following clause (b), if the related Final Price is not determined in accordance with Clause 4(a), the
“Termination Trade Date” will be the bid submission deadline for the Firm Bid or combination of Firm Bids for all of the Reference Amount of such Terminated Obligation that are to be the basis for determining the Final Price of such
Terminated 

  
 Page 35 

	 	
Obligation as designated by the Calculation Agent in order to cause the related Total Return Payment Date to occur as promptly as practicable (in the discretion of the Calculation Agent) after
the date originally designated as the “Termination Trade Date” in the related Accelerated Termination Notice; and 

  

	(b)	in respect of the Scheduled Termination Date, if the related Final Price is not determined in accordance with Clause 4(a), the “Termination Trade Date” will be the date so designated by the Calculation
Agent in its discretion, occurring during the 30 calendar days preceding the Scheduled Termination Date (or earlier in the case of any Terminated Obligation determined by the Calculation Agent in its sole discretion to be a distressed loan or other
obligation) in a manner reasonably likely to cause the final Total Return Payment Date to occur on the Scheduled Termination Date. 

 The
Calculation Agent shall notify the parties of any Termination Trade Date designated by it pursuant to the foregoing proviso. 

“Total Return Payment Date” means, with respect to any Terminated Obligation or Repaid Obligation, the fifth Business
Day next succeeding the last day of the Monthly Period during which the related Obligation Termination Date occurs. 

  
 Page 36 

 ANNEX I 

REFERENCE PORTFOLIO 
  

															
	 Reference
Obligation
	 	 Reference

Entity
	 	 Reference
Amount
	 	 Outstanding
Principal

Amount
	 	 Initial

Price
 (%)
	 	 Obligation

Trade
 Date
	 	 Obligation
Settlement

Date
	 	 Independent
Amount
Percentage

		 		 		 		 		 		 		 	
		 		 		 		 		 		 		 	
		 		 		 		 		 		 		 	
		 		 		 		 		 		 		 	

  
 Page 37 

 ANNEX II 

OBLIGATION CRITERIA 
 The
“Obligation Criteria” are as follows: 
  

	(i)	The obligation is a Loan or a Bond. 

  

	(ii)	The obligation is denominated in USD. 

  

	(iii)	The obligation constitutes a legal, valid, binding and enforceable obligation of the applicable Reference Entity, enforceable against such person in accordance with its terms. 

 

	(iv)	Except for any Delayed Drawdown Reference Obligation or Revolving Reference Obligation, the obligation does not require any future advances to be made to the related issuer or obligor on or after the Obligation Trade
Date. 

  

	(v)	Except for any Bond, the obligation is not Subordinate. 

  

	(vi)	Except for any Bond, the obligation is secured. 

  

	(vii)	The obligation constitutes indebtedness for U.S. Federal income tax purposes. 

  

	(viii)	Except for any Bond, transfers thereof on the Obligation Trade Date may be effected pursuant to the Standard Terms and Conditions for Par/Near Par Trade Confirmations and not the Standard Terms and Conditions for
Distressed Trade Confirmations, in each case as published by the LSTA and as in effect on the Obligation Trade Date. 

  

	(ix)	Except for any Specified Reference Obligation, the obligation is not a Second Lien Obligation. 

  

	(x)	Except for any Specified Reference Obligation, the obligation is on the Obligation Trade Date part of a fungible class of debt obligations (as to issuance date and all economic terms) of at least USD150,000,000.

  

	(xi)	Except for any Specified Reference Obligation, the obligation is on the Obligation Trade Date the subject of at least two bid quotations from nationally recognized independent dealers in the related obligation as
reported on a nationally recognized pricing service. 

  

	(xii)	Except for any Specified Reference Obligation, the obligation has an Initial Price as of the Obligation Trade Date of at least 80%. 

  

	(xiii)	Except for any Specified Reference Obligation, the obligation has on the Obligation Trade Date a Moody’s Rating of at least B3 and an S&P Rating of at least B-. 

For purposes hereof: 
 “Moody’s”
means Moody’s Investors Service, Inc. or any successor thereto. 

  
 Page 38 

 “Moody’s Rating” means, with respect to a Reference Obligation, as of
any date of determination:  
  

	(i)	if the Reference Obligation itself is rated by Moody’s (including pursuant to any credit estimate), such rating, 

  

	(ii)	if the foregoing paragraph is not applicable, then, if the Reference Obligation is a Loan and the related Reference Entity has a corporate family rating by Moody’s, the rating specified in the applicable row of the
table below under “Relevant Rating” opposite the row in the table below that describes such Loan: 

  

			
	 Loan
	  	 Relevant Rating

	The Loan is a secured obligation, but is not a Second Lien Obligation and is not Subordinate	  	The rating by Moody’s that is one rating subcategory above such corporate family rating
		
	The Loan is an unsecured obligation or is a Second Lien Obligation, but is not Subordinate	  	The rating by Moody’s that is one rating subcategory below such corporate family rating
		
	The Loan is Subordinate	  	The rating by Moody’s that is two rating subcategories below such corporate family rating

  

	(iii)	if the foregoing paragraphs are not applicable, but there is a rating by Moody’s on a secured obligation of the Reference Entity that is not a Second Lien Obligation and is not Subordinate (the “other
obligation”), the rating specified in the applicable row of the table below under “Relevant Rating” opposite the row in the table below that describes such Reference Obligation: 

 

			
	 Reference Obligation
	  	 Relevant Rating

	The Reference Obligation is a secured obligation, but is not a Second Lien Obligation and is not Subordinate	  	The rating assigned by Moody’s to the other obligation
		
	The Reference Obligation is an unsecured obligation or is a Second Lien Obligation, but is not Subordinate	  	The rating by Moody’s that is one rating subcategory below the rating assigned by Moody’s to the other obligation
		
	The Reference Obligation is Subordinate	  	The rating by Moody’s that is two rating subcategories below the rating assigned by Moody’s to the other obligation

  

	(iv)	if the foregoing paragraphs are not applicable, but there is a rating by Moody’s on an unsecured obligation of the Reference Entity (or, failing that, an obligation that is a Second Lien Obligation) but is not
Subordinate (the “other obligation”), the rating specified in the applicable row of the table below under “Relevant Rating” opposite the row in the table below that describes such Reference Obligation: 

 

			
	 Reference Obligation
	  	 Relevant Rating

	The Reference Obligation is a secured obligation, but is not a Second Lien Obligation and is not Subordinate	  	The rating by Moody’s that is one rating subcategory above the rating assigned by Moody’s to the other obligation
		
	The Reference Obligation is an unsecured obligation or is a Second Lien Obligation, but is not Subordinate	  	The rating assigned by Moody’s to the other obligation
		
	The Reference Obligation is Subordinate	  	The rating by Moody’s that is one rating subcategory below the rating assigned by Moody’s to the other obligation

  
 Page 39 

	(v)	if the foregoing paragraphs are not applicable, but there is a rating by Moody’s on an obligation of the Reference Entity that is Subordinate (the “other obligation”), the rating specified in the
applicable row of the table below under “Relevant Rating” opposite the row in the table below that describes such Reference Obligation: 

  

			
	 Reference Obligation
	  	 Relevant Rating

	The Reference Obligation is a secured obligation, but is not a Second Lien Obligation and is not Subordinate	  	The rating by Moody’s that is two rating subcategories above the rating assigned by Moody’s to the other obligation
		
	The Reference Obligation is an unsecured obligation or is a Second Lien Obligation, but is not Subordinate	  	The rating by Moody’s that is one rating subcategory above the rating assigned by Moody’s to the other obligation
		
	The Reference Obligation is Subordinate	  	The rating assigned by Moody’s to the other obligation

  

	(vi)	if a rating cannot be assigned pursuant to clauses (i) through (v), then , then the Moody’s Rating shall be “Ca”; provided that: 

 

	 	(A)	for up to 5% of the Portfolio Target Amount, Counterparty may apply to Moody’s for a shadow rating or public rating of such Reference Obligation, which shall then be the Moody’s Rating (and Counterparty may
deem the Moody’s Rating of such Reference Obligation to be “B3” pending receipt of such shadow rating or public rating, as the case may be); provided that (x) a Reference Obligation will not be included in the 5% limit of
the Portfolio Target Amount if Counterparty has assigned a rating to such Reference Obligation in accordance with clause (B) below and (y) upon receipt of a shadow rating or public rating, as the case may be, such Reference Obligation will
not be included in the 5% limit of the Portfolio Target Amount; or 

  

	 	(B)	for up to 5% of the Portfolio Target Amount, if there is a private rating of an obligor that has been provided by S&P to Citibank and Counterparty, Counterparty may impute a Moody’s Rating that corresponds to
such private rating; provided that a Reference Obligation will not be included in the 5% limit of the Portfolio Target Amount if Counterparty has applied to Moody’s for a shadow rating. 

  
 Page 40 

 For purposes of the foregoing, a “private rating” shall refer to a rating obtained by Citibank, by
Counterparty or by or on behalf of an obligor on a Reference Obligation that is not disseminated publicly; whereas a “shadow rating” shall refer to a credit estimate obtained upon application of Counterparty or a holder of a Reference
Obligation. Any private rating or shadow rating shall be required to be refreshed annually. If Counterparty applies to Moody’s for a shadow rating or public rating of a Reference Obligation, Counterparty shall provide evidence to Citibank of
such application and shall notify Citibank of the expected rating. Counterparty shall notify Citibank of the shadow rating or public rating assigned by Moody’s to a Reference Obligation. 

“S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, or any successor thereto.

 “S&P Rating” means, with respect to a Reference Obligation: 

 

	(i)	if the Reference Obligation itself is rated by S&P (including pursuant to any credit estimate), such rating, 

  

	(ii)	if the foregoing paragraph is not applicable, then, if the Reference Obligation is a Loan and the related Reference Entity has a corporate issuer rating by S&P, the rating specified in the applicable row of the
table below under “Relevant Rating” opposite the row in the table below that describes such Loan: 

  

			
	 Loan
	  	 Relevant Rating

	The Loan is a secured obligation, but is not a Second Lien Obligation and is not Subordinate	  	The rating by S&P that is one rating subcategory above such corporate issuer rating
		
	The Loan is an unsecured obligation or is a Second Lien Obligation, but is not Subordinate	  	The rating by S&P that is one rating subcategory below such corporate issuer rating
		
	The Loan is Subordinate	  	The rating by S&P that is two rating subcategories below such corporate issuer rating

  

	(iii)	if the foregoing paragraphs are not applicable, but there is a rating by S&P on a secured obligation of the Reference Entity that is not a Second Lien Obligation and is not Subordinate (the “other
obligation”), the rating specified in the applicable row of the table below under “Relevant Rating” opposite the row in the table below that describes such Reference Obligation: 

 

			
	 Reference Obligation
	  	 Relevant Rating

	The Reference Obligation is a secured obligation, but is not a Second Lien Obligation and is not Subordinate	  	The rating assigned by S&P to the other obligation
		
	The Reference Obligation is an unsecured obligation or is a Second Lien Obligation, but is not Subordinate	  	The rating by S&P that is one rating subcategory below the rating assigned by S&P to the other obligation
		
	The Reference Obligation is Subordinate	  	The rating by S&P that is two rating subcategories below the rating assigned by S&P to the other obligation

  
 Page 41 

	(iv)	if the foregoing paragraphs are not applicable, but there is a rating by S&P on an unsecured obligation of the Reference Entity (or, failing that, an obligation that is a Second Lien Obligation) but is not
Subordinate (the “other obligation”), the rating specified in the applicable row of the table below under “Relevant Rating” opposite the row in the table below that describes such Reference Obligation: 

 

			
	 Reference Obligation
	  	 Relevant Rating

	The Reference Obligation is a secured obligation, but is not a Second Lien Obligation and is not Subordinate	  	The rating by S&P that is one rating subcategory above the rating assigned by S&P to the other obligation
		
	The Reference Obligation is an unsecured obligation or is a Second Lien Obligation, but is not Subordinate	  	The rating assigned by S&P to the other obligation
		
	The Reference Obligation is Subordinate	  	The rating by S&P that is one rating subcategory below the rating assigned by S&P to the other obligation

  

	(v)	if the foregoing paragraphs are not applicable, but there is a rating by S&P on an obligation of the Reference Entity that is Subordinate (the “other obligation”), the rating specified in the applicable
row of the table below under “Relevant Rating” opposite the row in the table below that describes such Reference Obligation: 

  

			
	 Reference Obligation
	  	 Relevant Rating

	The Reference Obligation is a secured obligation, but is not a Second Lien Obligation and is not Subordinate	  	The rating by S&P that is two rating subcategories above the rating assigned by S&P to the other obligation
		
	The Reference Obligation is an unsecured obligation or is a Second Lien Obligation, but is not Subordinate	  	The rating by S&P that is one rating subcategory above the rating assigned by S&P to the other obligation
		
	The Reference Obligation is Subordinate	  	The rating assigned by S&P to the other obligation

  

	(vi)	 if the foregoing paragraphs are not applicable, then the S&P Rating shall be “CC”; provided that (x) if application has been
made to S&P to rate a Reference Obligation and such Reference Obligation has a Moody’s Rating, then the S&P Rating with respect to such Reference Obligation shall, pending the receipt of such rating from S&P, be equal to the S&P
Rating that is equivalent to 

  
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such Moody’s Rating and (y) Reference Obligations in the Reference Portfolio constituting no more, by aggregate Notional Amount, than 10% of the Portfolio Target Amount may be given a
S&P Rating based on a rating given by Moody’s as provided in clause (x) (after giving effect to the addition of the relevant Reference Obligation, if applicable). 

  
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 PORTFOLIO CRITERIA 

The “Portfolio Criteria” are as follows: 

 

	(i)	The Portfolio Notional Amount does not exceed the Maximum Portfolio Notional Amount. 

  

	(ii)	The sum of the Notional Amounts for Reference Obligations of any single Reference Entity or any of its Affiliates does not exceed 10% of the Portfolio Target Amount, provided that the sum of the Notional Amounts
of each of up to two Reference Obligations of any Reference Entity or any of its Affiliates may be up to 15% of the Portfolio Target Amount. 

  

	(iii)	The sum of the Notional Amounts for Reference Obligations of Reference Entities in any single Moody’s Industry Classification Group does not exceed 15% of the Portfolio Target Amount. 

 

	(iv)	The sum of the Notional Amounts for all Committed Obligations does not exceed 10% of the Portfolio Target Amount. 

  

	(v)	The sum of the Notional Amounts for all Specified Reference Obligations does not exceed 25% of the Portfolio Target Amount. 

  

	(vi)	After the Ramp-Up Period and prior to the Ramp-Down Period, the Reference Portfolio has a Weighted Average Rating of at most 2720. 

For purposes hereof: 
 “Moody’s Industry
Classification Groups” means each of the categories set forth in Table 1 below. 
 “Weighted Average Rating” means, as
of any date of determination, the number obtained by (a) multiplying the Notional Amount of each Reference Obligation by the applicable Rating Factor (as set forth in Table 2 below) for the related Reference Entity; (b) summing the
products obtained in clause (a) for all Reference Obligations; and (c) dividing the sum obtained in clause (b) by the aggregate of the Notional Amounts of all Reference Obligations. 

  
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 ANNEX III 

APPROVED BUYERS 
 Bank of America, NA 

The Bank of New York Mellon, N.A. 
 The Bank of Nova Scotia 

Barclays Bank plc 
 BNP Paribas 

Canadian Imperial Bank of Commerce 
 Citibank, N.A. 

Credit Suisse 
 Deutsche Bank AG 

Goldman Sachs & Co. 
 HSBC Bank 

Jefferies LLC 
 JPMorgan Chase Bank, N.A. 

Merrill Lynch, Pierce, Fenner & Smith Incorporated 

Morgan Stanley & Co. 
 Royal Bank of Canada 

The Bank of Montreal 
 The Royal Bank of Scotland plc 

The Toronto-Dominion Bank 
 UBS AG 

U.S. Bank, National Association 
 Wells Fargo Bank, National
Association 

  
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 TABLE 1 

MOODY’S INDUSTRY CLASSIFICATION GROUPS 

Aerospace and Defense: Major Contractor, Subsystems, Research, Aircraft Manufacturing, Arms, Ammunition 

Automobile: Automotive Equipment, Auto-Manufacturing, Auto Parts Manufacturing, Personal Use Trailers, Motor Homes, Dealers 

Banking: Bank Holding, Savings and Loans, Consumer Credit, Small Loan, Agency, Factoring, Receivables 

Beverage, Food and Tobacco: Beer and Ale, Distillers, Wines and Liquors, Distributors, Soft Drink Syrup, Bottling, Bakery, Mill Sugar, Canned Foods,
Corn Refiners, Dairy Products, Meat Products, Poultry Products, Snacks, Packaged Foods, Distributors, Candy, Gum, Seafood, Frozen Food, Cigarettes, Cigars, Leaf/Snuff, Vegetable Oil 

Buildings and Real Estate: Brick, Cement, Climate Controls, Contracting, Engineering, Construction, Hardware, Forest Products (building-related only),
Plumbing, Roofing, Wallboard, Real Estate, Real Estate Development, REITs, Land Development 
 Chemicals, Plastics and Rubber: Chemicals
(non-agriculture), Industrial Gases, Sulfur, Plastics, Plastic Products, Abrasives, Coatings, Paints, Varnish, Fabricating 
 Containers, Packaging and
Glass: Glass, Fiberglass, Containers made of: Glass, Metal, Paper, Plastic, Wood or Fiberglass 
 Personal and Non Durable Consumer Products
(Manufacturing Only): Soaps, Perfumes, Cosmetics, Toiletries, Cleaning Supplies, School Supplies 
 Diversified/Conglomerate Manufacturing 

Diversified/Conglomerate Service 
 Diversified Natural
Resources, Precious Metals and Minerals: Fabricating, Distribution, Mining and Sales 
 Ecological: Pollution Control, Waste Removal, Waste
Treatment, Waste Disposal 
 Electronics: Computer Hardware, Electric Equipment, Components, Controllers, Motors, Household Appliances, Information
Service, Communication Systems, Radios, TVs, Tape Machines, Speakers, Printers, Drivers, Technology 
 Finance: Investment Brokerage, Leasing,
Syndication, Securities 
 Farming and Agriculture: Livestock, Grains, Produce, Agricultural Chemicals, Agricultural Equipment, Fertilizers 

Grocery: Grocery Stores, Convenience Food Stores 

Healthcare, Education and Childcare: Ethical Drugs, Proprietary Drugs, Research, Health Care Centers, Nursing Homes, HMOs, Hospitals, Hospital
Supplies, Medical Equipment 
 Home and Office Furnishings, Housedress, and Durable Consumer Products: Carpets, Floor Coverings, Furniture, Cooking,
Ranges 
 Hotels, Motels, Inns and Gaming 

Insurance: Life, Property and Casualty, Broker, Agent, Surety 

Leisure, Amusement, Entertainment: Boating, Bowling, Billiards, Musical Instruments, Fishing, Photo Equipment, Records, Tapes, Sports, Outdoor
Equipment (camping), Tourism, Resorts, Games, Toy Manufacturing, Motion Picture Production, Theatres, Motion Picture Distribution 
 Machinery
(Non-Agriculture, Non-Construction, Non-Electronic): Industrial, Machine Tools, Steam Generators 
 Mining, Steel, Iron and Non-Precious Metals:
Coal, Copper, Lead, Uranium, Zinc, Aluminum, Stainless Steel, Integrated Steel, Ore Production, Refractories, Steel Mill Machinery, Mini-Mills, Fabricating, Distribution and Sales 

Oil and Gas: Crude Producer, Retailer, Well Supply, Service and Drilling 

Personal, Food and Miscellaneous 
 Printing and
Publishing: Graphic Arts, Paper, Paper Products, Business Forms, Magazines, Books, Periodicals, Newspapers, Textbooks 

  
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 Cargo Transport: Rail, Shipping, Railroads, Rail-car Builders, Ship Builders, Containers, Container
Builders, Parts, Overnight Mail, Trucking, Truck Manufacturing, Trailer Manufacturing, Air Cargo, Transport 
 Retail Stores: Apparel, Toy, Variety,
Drugs, Department, Mail Order Catalogue, Showroom 
 Telecommunications: Local, Long Distance, Independent, Telephone, Telegraph, Satellite,
Equipment, Research, Cellular 
 Textiles and Leather: Producer, Synthetic Fiber, Apparel Manufacturer, Leather Shoes 

Personal Transportation: Air, Bus, Rail, Car, Rental 

Utilities: Electric, Water, Hydro Power, Gas, Diversified 

Broadcasting and Entertainment: Recording Industry, Motion Exhibition Theatres, Motion Picture Production and Distribution, Radio, TV, Cable
Broadcasting, Broadcasting Equipment 

  
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 TABLE 2 

RATING FACTORS 
  

					
	Moody’s Rating	  	Rating Factor	 
	 Ba1
	  	 	940	  
	 Ba2
	  	 	1350	  
	 Ba3
	  	 	1766	  
	 B1
	  	 	2220	  
	 B2
	  	 	2720	  
	 B3
	  	 	3490	  
	 Caa1
	  	 	4770	  
	 Caa2
	  	 	6500	  
	 Caa3 or below
	  	 	10000	  

  
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