Document:

FS Investment Corporation III 8-K

 

Exhibit 10.1

 

	Citibank,
                                         N.A.

        

        390
        Greenwich Street

        

        New
        York, New York 10013

        
	 

 

EXECUTION
COPY

 

		Date:	June 26,
                                         2014 (as amended and restated as of June 29, 2018)

 

		To:	Center
                                         City Funding LLC

c/o
FS Investment Corporation III

201
Rouse Boulevard

Philadelphia,
PA 19112

Attention:
William Goebel, Chief Financial Officer

Phone:
215-220-4247

Fax:
215-222-4649

Email:
credit.notices@fsinvestments.com; FSICIII_Team@fsinvestments.com

 

		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:  __________

 

CONFIRMATION

 

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 Center City Funding LLC, a limited liability company formed under the laws of the State
of Delaware (“Counterparty”), on 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 and after the Tenth Amendment Effective Date referred to below, this Confirmation amends and restates the prior Confirmation
dated as of June 26, 2014 as amended and restated as of August 25, 2014, September 29, 2014, January 28, 2015, June 26, 2015,
October 14, 2015, June 27, 2016, June 27, 2017, September 5, 2017 and March 31, 2018 between Citibank and Counterparty (the “Original
Confirmation”) relating to the Transactions described herein, which Original Confirmation is hereby superseded and
shall be of no further force or effect.

 

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1.       Agreement

 

This
Confirmation supplements, forms a part of and is subject to, the ISDA 2002 Master Agreement, dated as of June 26, 2014 (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:	June
    26, 2014
	Effective
    Date:	June
    26, 2014
	Amendment
    Effective Date:	August
    25, 2014
	Second
    Amendment Effective Date:	September
    29, 2014
	Third
    Amendment Effective Date:	January
    28, 2015
	Fourth
    Amendment Effective Date:	June
    26, 2015
	Fifth
    Amendment Effective Date:	October
    14, 2015
	Sixth
    Amendment Effective Date:	June
    27, 2016
	Seventh
    Amendment Effective Date:	June
    27, 2017
	Eighth
    Amendment Effective Date:	September
    5, 2017
	Ninth
    Amendment Effective Date:	March
    31, 2018
	Tenth
    Amendment Effective Date:	June
    29, 2018
	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 (i) any
    Citibank Fixed Amount Payer Payment Date that occurs after the final Obligation Termination Date and (ii) any Counterparty
    Fourth Floating Rate Payer Payment Date).  The obligations of the parties to make payments required to be made hereunder
    shall survive the Termination Date.

 

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	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 from time to time having a Reference Amount equal to the “Reference Amount” indicated
    on 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.
	 	Counterparty
                                         may, by notice to Citibank on any Business Day on or after the Trade Date (each, an “Obligation
                                         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 and the proposed Reference Amount,
                                         Reference Entity and Initial Price in relation to such Transaction.

         

        Notwithstanding
        the foregoing, no such designation by Counterparty will be effective unless:

         

        (a)       Citibank
        consents on or prior to the Obligation Trade Date to the relevant Reference Obligation becoming the subject of a Transaction
        hereunder (having the proposed Reference Amount and Initial Price in the notice of designation from Counterparty);

         

        (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 (or, if any Portfolio Criterion is not satisfied
        immediately prior to such designation, then the extent of compliance with such Portfolio Criterion is improved); and

 

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        (c)       if
        the relevant Reference Obligation would be a Specified Reference Obligation, Counterparty gives notice of such fact to
        Citibank in such notice of designation (provided that any failure to give such notice shall not affect the effectiveness
        of such designation).

         

        Without
        limiting the generality of the foregoing clause (a), Citibank may withhold its consent to any such designation based on
        any legal, accounting, tax or other similar issues that are adverse to Citibank in any material respect and that would
        or could reasonably be expected to arise as a result of the entry into such Transaction or any purchase by the Citibank
        Holder of such Reference Obligation as a hedge for such Transaction. In the event that Citibank determines not to hold,
        or cause to be held, all or any portion of any such Reference Obligation as a hedge for such Transaction on the Obligation
        Settlement Date for such Transaction, Citibank shall give prompt notice thereof to 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 Trade Date for a Transaction, the Reference Amount of such Transaction shall, for all purposes hereof (including
        the determination of the “Maximum Portfolio Notional Amount”) other than calculating Rate Payments, be increased
        by the “Reference Amount” specified in such notice from Counterparty. 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.

         

        Once
        a Reference Obligation becomes the subject of a Transaction hereunder, Citibank shall promptly prepare and deliver to
        Counterparty a revised Annex I reflecting the Reference Portfolio as of the related Obligation Trade Date.

 

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	 	If
    any payment of interest on a Reference Obligation that would otherwise be made during the period from and including the Obligation
    Trade 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 hereto.  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 and including the date occurring 90 days after the Effective Date.
	Ramp-Down
    Period:	The
    period from and including the date 90 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 with respect 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

         

        (b) In
        relation to any Transaction with respect to a 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.

        

 

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	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 Trade Date) and reduced pursuant to
    Clauses 3 and 5.  Except as otherwise expressly provided below with respect to Counterparty First Floating
    Amounts, the principal amount of any Committed Obligation outstanding 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 to 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 in relation to such Reference Obligation
                                         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 in relation to such Reference Obligation plus (iii) any
                                         increase 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
                                         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. 

 

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	 	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, the Outstanding Principal Amount thereof and (b) any Committed Obligation,
    the Commitment Amount thereof.
	Maximum
    Portfolio Notional Amount:	USD500,000,000
	Utilization
    Amount:	In
    relation to any Calculation Period, the daily average of the Portfolio Notional Funded Amount during such Calculation Period.
	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.

        

	Floating
    Rate Index:	Whenever
    in this Confirmation reference is made to any Floating Rate Option or to USD-LIBOR-BBA (each, a “Floating Rate
    Index”), in no event may such Floating Rate Index be less than zero.
	Monthly
    Period:	Each
    period from but excluding the last day of any calendar month to and including the last day of the immediately succeeding calendar
    month.

 

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	Calculation
    Agent:	Citibank;
    provided that, if an Event of Default described in Section 5(a)(i) or Section 5(a)(vii) occurs with respect
    to Citibank as Defaulting Party and no Event of Default has occurred and is continuing with respect to Counterparty as Defaulting
    Party, then Counterparty may designate any of Bank of America, NA, The Bank of Montreal, Barclays Bank plc, Canadian Imperial
    Bank of Commerce, Credit Suisse, Deutsche Bank AG, JPMorgan Chase Bank, N.A., UBS AG and Wells Fargo Bank, National Association
    as Calculation Agent, which designation shall be effective only (a) if such designated entity accepts such appointment
    and agrees to perform the duties of the Calculation Agent hereunder and (b) so long as such Event of Default with respect
    to Citibank as Defaulting Party continues.  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.  The
    Initial Price (a) will be expressed exclusive of accrued interest, (b) will be expressed as a percentage of the
    Reference Amount, (c) will be determined exclusive of Costs of Assignment that would be incurred by a buyer in connection
    with any purchase of the Reference Obligation and exclusive of any Delay Compensation and (d) will be, as of the related
    Obligation Trade Date, the “Initial Price” specified by Counterparty to Citibank in the notice of designation referred
    to above and consented to by Citibank.
	 	 
	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, 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; 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.

 

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	First
                                         Floating Rate Payer

        

        Calculation
        Amount:

         
	In
    relation to any First Floating Rate Payer Calculation Period and any Transaction, the daily average of the Notional Funded
    Amount of such Transaction during such First Floating Rate Payer Calculation Period.
	First
                                         Floating Rate Payer 

        Calculation
        Period:

         
	In
    relation to any Transaction, each Monthly Period, 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.
	First
                                         Floating Rate

        

        Payer
        Payment Date:

         
	(a)
                                         In relation to any Transaction (other than with respect to any Terminated Obligation
                                         or Repaid Obligation), the tenth Business Day following the last day of any Monthly Period,
                                         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, USD-LIBOR-BBA.
	Designated
    Maturity:	In
    relation to any Transaction, one month.
	Spread:	1.55%
	Floating
                                         Rate Day

        

        Count
        Fraction:

        
	In
    relation to any Transaction, Actual/360.
	Reset
    Dates:	The
    first day of each First Floating Rate Payer Calculation Period.
	Compounding:	Inapplicable

 

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	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.

         

        Notwithstanding
        the foregoing, no Second Floating Amount shall be payable on any Second Floating Rate Payer Payment Date, and no amount
        shall be payable under Clause 4(c) on any date after the last day of the Ramp-Up Period, (a) on or following
        the Termination Date if the Termination Date results from 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 or (b) on or following any date on which each of the following two conditions
        has been satisfied: (i) Counterparty has designated at least 20 Designated Reference Obligations to become the subject
        of Transactions hereunder (as contemplated opposite the caption “Reference Obligation” above) and (ii) the
        aggregate Notional Amount of all Designated Reference Obligations as to which Citibank has not given its consent to such
        Designated Reference Obligations becoming the subject of Transactions hereunder (as contemplated opposite the caption
        “Reference Obligation” above) exceeds 50% of the aggregate Notional Amount of all Designated Reference Obligations
        that Counterparty has designated are to become the subject of Transactions hereunder (as contemplated opposite the caption
        “Reference Obligation” above).

        

	Second
                                         Floating Rate Payer

        

        Calculation
        Amount:

        
	In
    relation to any Second Floating Rate Payer Calculation Period, the excess, if any, of (a) 80% of the Maximum Portfolio
    Notional Amount over (b) the Utilization Amount for such Second Floating Rate Payer Calculation Period.

 

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	Second
                                         Floating Rate Payer

        

        Calculation
        Period:

         
	Each
    Monthly Period; provided that (a) the initial Second Floating Rate Payer Calculation Period shall begin on the
    first day following 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
    tenth 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 day preceding the first day of the Ramp-Down Period.
	 	 
	Spread:	1.55%.
	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.
	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 greater of (i) 80% of the Maximum Portfolio Notional Amount and (ii) the daily average Portfolio
    Notional Funded 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
    first day following 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.

 

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	Third
                                         Floating Rate

        

        Payer
        Payment Dates:

         
	The
    tenth 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 day preceding the first day of the Ramp-Down Period.
	Spread:	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 tenth 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 tenth Business Day after notice of a Fourth Floating
    Amount from Citibank to Counterparty; provided that, prior to the tenth Business Day after the related Obligation Termination
    Date, if Counterparty has received less than ten Business Days’ notice from Citibank that such Fourth Floating Amount is due
    and payable, such Fourth Floating Rate Payer Payment Date shall be the tenth 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
	Fifth
    Floating Amount:	In
    relation to any Terminated Obligation or Repaid Obligation, Capital Depreciation, if any.

 

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	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 with respect to any Terminated Obligation
                                         or Repaid Obligation), the tenth Business Day following the last day of any Monthly Period,
                                         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 Transaction with respect to any Terminated Obligation or Repaid Obligation, the related Total Return Payment Date;
provided that, if interest on the Reference Obligation is actually paid on the scheduled interest payment date next succeeding
the related Obligation Termination Date, then the final Fixed Amount Payer Payment Date shall be the tenth Business Day next succeeding
the last day of the Monthly Period during which such scheduled interest payment date occurs.

 

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	Citibank
    Floating Amounts:	 
	 	 
	Floating Amount
    Payer:	Citibank
	 	 
	Floating Amount:	In relation to any
    Terminated Obligation or Repaid Obligation, Capital Appreciation, if any.
	 	 
	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) no later than the proposed Termination Trade Date and (ii) no more than 30 days, and no less than
10 days, prior to the proposed Termination Settlement Date; provided that, except in the case of the termination of all
Transactions in connection with the occurrence of the Scheduled Termination Date, (x) the Portfolio Criteria set forth in
Annex II would be satisfied on the proposed Termination Trade Date after giving effect to such termination (or, if any Portfolio
Criterion is not satisfied immediately prior to such termination, the extent of compliance therewith would be maintained or improved
after giving effect to such termination) and (y) after giving effect to such termination, no Delivery Amount (as defined
in the Credit Support Annex) would be required under the Credit Support Annex to be transferred by Counterparty. 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 will have the right, but not the obligation, to
                                         request that Counterparty agree to increase the Independent Amount Percentage with respect
                                         to the related Transaction to (i) 100% minus (ii) the Supplemental Independent Amount
                                         Percentage. If Counterparty does not agree to such request within one Business Day after
                                         notice of such request from Citibank, then Citibank will have the right, but not the
                                         obligation, to terminate the related Transaction by delivering an Accelerated Termination
                                         Notice to Counterparty no less than 10 days prior to the proposed Termination Trade 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
                                         proposed Termination Trade Date and the proposed Termination Settlement Date.

 

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Elective
Termination by Citibank due to Certain Events

 

		(b)	If:

 

		(i)	any
                                         Reference Obligation (including any Exchange Consideration) fails to satisfy the Obligation
                                         Criteria at any time, or

 

		(ii)	the
                                         Portfolio Criteria are not satisfied at any time,

 

then
Citibank may notify Counterparty in writing of such event. In the case of the foregoing clause (i), if such event continues for
30 days following the delivery of such notice, then Citibank will have the right but not the obligation to terminate the related
Transaction. In the case of the foregoing clause (ii), if such event continues for 30 days following the delivery of such notice,
then Citibank will have the right but not the obligation to terminate each Transaction that is the subject of this Confirmation.
Citibank may 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, (1) on the proposed Termination Trade Date and (2) no
less than 10 days prior to the proposed Termination Settlement Date for the related Terminated Obligation. The Accelerated Termination
Notice shall specify each Reference Obligation that is the subject of such Accelerated Termination and, with respect to each such
Reference Obligation, the amount of the Terminated Obligation, the proposed Termination Trade Date and the proposed Termination
Settlement Date.

 

Citibank
Optional Termination Date

 

(c)       Citibank
will have the right, but not the obligation, to terminate each Transaction that is the subject of this Confirmation, effective
on any Business Day occurring on or after September 30, 2018 (such date, the “Citibank Optional Termination Date”).
Citibank can exercise this termination right by delivering an Accelerated Termination Notice to Counterparty that is given no
less than 15 days prior to the first proposed Termination Trade Date specified in the related Accelerated Termination Notice.
The Accelerated Termination Notice shall specify, as to each Reference Obligation, 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
each Transaction that is the subject of this Confirmation on or before the date occurring 30 days prior to the Citibank Optional
Termination 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 the Transactions, including, without limitation, the Spread, the Independent Amount Percentage,
the Supplemental Independent Amount Percentage and the application of the Obligation Criteria and Portfolio Criteria to the Transactions.
If Citibank provides a notice to Counterparty proposing to amend and restate one or more material terms of the Transactions 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, each 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, as to each Reference Obligation, 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 each Transaction pursuant
to this Clause 3(c), such designation will not prevent Citibank or Counterparty from subsequently designating an earlier
Termination Trade Date in relation to any Transaction 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:

 

    Page 15

     

    

 

		(i)	if
                                         Citibank elects to exercise its termination right under this Clause 3(c), 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 first proposed Termination Trade Date specified in such notice; and

 

		(ii)	whether
                                         or not Citibank elects to exercise its termination right under this Clause 3(c),
                                         and in the case of any termination pursuant to any of the paragraphs of this Clause 3,
                                         each reference to the term “Scheduled Termination Date” in the provisions of
                                         Clause 4(c) dealing with the payment of Counterparty Second Floating Amounts (and
                                         the reference to the day preceding the first day of the Ramp-Down Period in the definition
                                         of “Counterparty Second Floating Rate Payer Payment Date”) will be a reference
                                         to the earlier of (x) the Citibank Optional Termination Date and (y) the first
                                         anniversary of the Termination Date.

 

Early
Termination Date under Master Agreement

 

(d)        If
there is effectively designated an Early Termination Date under the Master Agreement, then (i) each Transaction will be terminated
in its entirety (but without limiting Clause 4(c)), (ii) notwithstanding any contrary or otherwise inconsistent provision
of the Master Agreement, the provisions set forth in Section 6(e) of the Master Agreement shall not apply to any Transaction
(except that amounts that become due and payable on or prior to such Early Termination Date with respect to any Transaction as
provided in this Confirmation will constitute Unpaid Amounts) and (iii) the Termination Trade Date for each Transaction will
be the date specified by the Calculation Agent occurring on or promptly after such Early Termination Date; provided that,
if such Early Termination Date is designated by reason of an Event of Default as to which Citibank is the Defaulting Party, Counterparty
may specify the Termination Trade Date with respect to any Transaction as to which the Calculation Agent has not specified the
Termination Trade Date within 10 days after such Early Termination Date. The Calculation Agent shall give notice (an “Accelerated
Termination Notice”) to each party (such termination, an “Accelerated Termination”) on or
prior to such Early Termination Date, which Accelerated Termination Notice shall specify each Reference Obligation that is the
subject of such Accelerated Termination and, with respect to each such Reference Obligation, the amount of the Terminated Obligation,
the proposed Termination Trade Date and the proposed Termination Settlement Date. The amount, if any, payable in respect of such
Early Termination Date will be determined in accordance with Clause 4(b) of this Confirmation based upon the delivery of
such Accelerated Termination Notice.

 

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 shall, for all purposes hereof (including the determination of the “Maximum Portfolio Notional Amount”)
other than calculating Rate Payments, 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 shall, for all purposes hereof (including the determination of the
“Maximum Portfolio Notional Amount”) other than calculating Rate Payments, 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 shall,
for purposes of calculating Rate Payments, 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).
Following any Termination Trade Date (other than the Termination Trade Date in respect of the Termination Date), Citibank shall
promptly prepare and deliver to Counterparty a revised Annex I.

 

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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 for the relevant Terminated Obligation will be determined
in accordance with this Clause 4.

 

Determination
by Counterparty

 

(a)         In
order to determine the Final Price for any Terminated Obligation then held by or on behalf of Citibank as a hedge for the related
Transaction if such determination is being made as the result of a termination pursuant to Clause 3(a), 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) if, as a result of such termination
and the termination of all other Transactions as to which the Total Return Payment Date has not yet occurred, after giving effect
to such termination, a Delivery Amount (as defined in the Credit Support Annex) would be required under the Credit Support Annex
to be transferred by Counterparty. 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 10 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 an Approved Buyer or another
buyer approved in advance by Citibank, such approval not to be unreasonably withheld or delayed, 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 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” for that Terminated Obligation.

 

Determination
by Calculation Agent

 

(b)        If
the Final Price for 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 two 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 the bid submission deadline specified below, Counterparty may, but shall not be obligated
to, designate up to three Approved Buyers each of which shall provide a Firm Bid (and the Calculation Agent will seek a Firm Bid
from any such designee so designated by Counterparty on a timely basis). 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 Reference Amount of such Terminated Obligation 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 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 shall obtain Firm Bids solely with respect to each separate Terminated Obligation
(but not with respect to any group or groups of such Terminated Obligations). Citibank may, but is not obligated to, sell or cause
the sale of any portion of any Terminated Obligation to any Dealer that provides a Firm Bid.

 

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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 two 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.

 

If
the Calculation Agent is able to obtain at least one Firm Bid or combination of Firm Bids for all or any portion of the Reference
Amount of any Terminated Obligation, the Final Price for such Terminated Obligation or portion thereof shall be determined by
reference to such Firm Bid or Firm Bids pursuant to the last paragraph of this Clause 4(b). 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 each portion of such Terminated Obligation for which no Firm Bid was obtained. The Calculation Agent
will conduct the bid process in accordance with the procedures set forth in this Clause 4(b) and otherwise in good faith
and in a commercially reasonable manner. Other than in the case of a termination pursuant to Clause 3(b) or 3(d), Citibank
and Counterparty will make commercially reasonable efforts to accomplish the assignment to Counterparty (free of payment by Counterparty)
of the related Terminated Obligation or portion thereof held by or on behalf of Citibank as a hedge for the related Transaction
for which the Final Price is deemed to be zero (including as provided below); provided that Citibank shall not be liable
for any losses related to any delay in or failure of such assignment beyond its control. Citibank and Counterparty will make commercially
reasonable efforts to accomplish the assignment to Counterparty of any related Terminated Obligation held by or on behalf of Citibank
as a hedge for any Transaction as to which the Final Price is deemed to be zero (including as provided below); provided that
Citibank shall not be liable for any losses related to any delay in or failure of such assignment beyond its control.

 

Notwithstanding
anything to the contrary herein,

 

		(i)	the
                                         Calculation Agent shall be entitled to disregard any Firm Bid submitted by a Dealer if,
                                         in the Calculation Agent’s commercially reasonable judgment, (x) such Dealer is
                                         ineligible to accept assignment or transfer of the 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) as a result of the terms of any agreement or instrument governing
                                         the related Terminated Obligation or any order of a court of competent jurisdiction relating
                                         to such Terminated Obligation, such Dealer is prohibited or restricted from obtaining
                                         any consent required for 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 as a result of (x) the occurrence
                                         of an Event of Default described in Section 5(a)(vii) with respect to 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 not having pre-approved trading lines with the bidder that would permit
                                         settlement of the purchase of the related Terminated Obligation or portion thereof, as
                                         applicable, that Firm Bid shall be disregarded and the next highest Firm Bid that is
                                         not disregarded shall be used to determine the Final Price.

 

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If
there is no such Firm Bid, then 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”
for the portion which was so disregarded shall be deemed to be zero.

 

If
Citibank transfers, or causes the transfer of, all or any portion of the Terminated Obligation to the Dealer or Dealers providing
the highest Firm Bid or highest combination of Firm Bids for such Terminated Obligation (or portion thereof) or to such other
party as provided above, the net cash proceeds received from the sale of such Terminated Obligation or portion thereof (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” for that Terminated
Obligation (or the portion thereof that is sold).

 

If
Citibank has determined not to hold, or cause to be held, all or any portion of any Terminated Obligation as a hedge for the related
Transaction or otherwise determines, in its sole discretion, not to sell or cause the sale of any portion of any Terminated Obligation
to a Dealer providing the highest Firm Bid or combination of Firm Bids, the “Final Price” for such Terminated
Obligation or portion thereof shall be equal to the highest Firm Bid (or highest combination of Firm Bids) for such Terminated
Obligation (or portion thereof) multiplied by the Reference Amount of such Terminated Obligation (or the respective portions of
the Reference Amount to which such Firm Bids relate). The Calculation Agent may perform any of its duties under this Clause 4(b)
through any Affiliate designated by it, but no such designation shall relieve the Calculation Agent of its duties under this Clause 4(b).

 

Early
Termination of Facility

 

(c)         For
the avoidance of doubt (and subject to paragraph (ii) of the last sentence of Clause 3(c)), if the Termination Date
occurs prior to the Citibank Optional Termination Date, each Counterparty Second Floating Amount shall continue to be payable
by Counterparty on each subsequent Second 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 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) discounted
to such final Termination Trade Date of each Counterparty Second Floating Amount 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, at a discount rate per annum equal to the Discount Rate. For this purpose, 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.

 

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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 tenth 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

 

		(c)	the
                                         related Final Price in relation to the Repaid Obligation shall be (i) in the case
                                         of a Committed Obligation, the portion of the Reference Amount that is permanently reduced
                                         (excluding any such reduction below the Outstanding Principal Amount thereof) 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 (or the amount by which the Reference Obligation was otherwise reduced)
                                         on such Repayment Date. Following any Repayment Date, Citibank shall promptly prepare
                                         and deliver to Counterparty a revised Annex I showing the revised Reference Amount
                                         for the related Reference Obligation.

 

6.          Adjustments.

 

(a)         If
any Reference Obligation or portion thereof is irreversibly converted or exchanged into or for any securities, obligations or
other assets or property (“Exchange Consideration”), thereafter such Exchange Consideration will constitute
such Reference Obligation or portion thereof, and, unless Citibank shall otherwise agree in writing, (i) if such Exchange
Consideration fails to satisfy the Obligation Criteria, then Clause 3(b)(i) shall apply and (ii) if the Portfolio Criteria
set forth in Annex II would not be satisfied after giving effect to such exchange, then Clause 3(b)(ii) shall apply.

 

(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 Obligation Settlement Date 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 Termination Settlement Date. “Delay Compensation”
shall accrue (x) in the case of clause (i) above, from and including the Obligation Settlement Date to but excluding
the actual settlement of the purchase effected to establish the related hedge (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, but will be determined inclusive
of the applicable spread above such 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 Termination Settlement Date to but excluding the actual settlement of the sale effected to terminate the
related hedge (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.

 

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(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 shall be of no force or effect (retroactive
to the Obligation Trade Date or the Obligation Settlement Date, as the case may be).

 

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;

 

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		(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)(iii), 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 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;

 

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		(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

 

		(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, consents, 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; and

 

		(ii)	(x) it
                                         is an “eligible contract participant” as defined in Section 1a(18) of
                                         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 of Section 1a(51) of the CEA.

 

		(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, is 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 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;

 

    Page 23

     

    

 

		(iii)	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
                                         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;

 

		(iv)	Counterparty
                                         is a wholly owned subsidiary of a United States person, within the meaning of Section 7701(a)(30)
                                         of the Code, and has elected to be treated as a disregarded entity for U.S. Federal income
                                         tax purposes;

 

		(v)	it
                                         has delivered to Citibank on or prior to the Trade Date (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);

 

		(vii)	it
                                         is not, for U.S. Federal income tax purposes, a tax-exempt organization; and

 

		(viii)	it
                                         is not an Affiliate of the Reference Entity.

 

(e)         Except
for any 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)         Multiple
Transaction Payment Netting under Section 2(c) of the Master Agreement will 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.

 

    Page 24

     

    

 

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 ten Business
Days after the date of such subsequent payment.

 

(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 ten 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 good faith and on a commercially
reasonable basis, as agreed by Citibank and Counterparty, 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.

 

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”.

 

		(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)
    With respect to any Transaction not relating to a Specified Reference Obligation:	17.5%
	(ii) 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

 

    Page 25

     

    

 

		(c)	With
                                         respect to each Transaction to which this Confirmation relates, a single “Supplemental
                                         Independent Amount” shall be applicable to Counterparty in an amount equal to the
                                         Notional Amount with respect to such Transaction multiplied by 2.5% (the “Supplemental
                                         Independent Amount Percentage”).

 

		(d)	For
                                         purposes of calculating “Exposure” with respect to any Transaction to which
                                         this Confirmation relates, (i) Citibank shall be the sole Valuation Agent and shall
                                         determine any Close-out Amount in relation to such Transaction, (ii) such Close-out
                                         Amount will be determined by the Valuation Agent using its estimate of the amount that
                                         would be paid to or by the Secured Party based on the application of Section 6(e)(ii)(1)
                                         of the Master Agreement, (iii) such Close-out Amount may from time to time be determined
                                         by the Valuation Agent in its sole discretion and without notice to Counterparty solely
                                         in respect of payments in respect of Capital Appreciation or Capital Depreciation that
                                         would have been required in respect of a Transaction after the relevant Early Termination
                                         Date (provided that the Valuation Agent will not thereafter be precluded from
                                         making such determination with respect to all payments and deliveries that would have
                                         been required after the relevant Early Termination Date, regardless of the absence of
                                         notice thereof to Counterparty) and (iv) if Counterparty disputes the calculation
                                         of Exposure with respect to such Transaction, the Valuation Agent will recalculate Exposure
                                         for such Transaction on the basis that the market value of the related Reference Obligation
                                         is equal to its Current Price.

 

		(e)	Neither
                                         party shall have any rights under Paragraph 5 of the Credit Support Annex with respect
                                         to the determination of “Exposure” in respect of any Transaction to which this
                                         Confirmation relates. The foregoing will not limit the rights of Counterparty as provided
                                         in the definition of “Current Price” set forth in this Confirmation.

 

		(f)	Notwithstanding
                                         anything in this Confirmation to the contrary, a Secured Party’s Exposure with respect
                                         to any Terminated Transaction will, during the period from and including the related
                                         Termination Trade Date to but excluding the date on which the amount required to be paid
                                         on the related Total Return Payment Date is actually paid, be equal to the amount of
                                         Capital Appreciation or Capital Depreciation, if any, that would be payable on such Total
                                         Return Payment Date to the Secured Party (expressed as a positive number) or by the Secured
                                         Party (expressed as a negative number).

 

    Page 26

     

    

 

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:
	 
	 	As set forth in
    Part 4 of the Schedule to the Master Agreement
	 	 
	Payments
    to Citibank:
	 
	 	Citibank,
N.A., New York

        ABA
No.: 021-000-089

        Account
No.: 00167679

        Ref:
Financial Futures

	 	 
	Payments
    to Counterparty:
	 
	 	Any payment to be
    made to Counterparty shall be subject to the condition that Citibank shall have received notice of the account to which such
    payment is to be made not less than three Local Business Days prior to the date of such payment.

 

11.       Offices.

 

		(a)	The
                                         Office of Citibank for each Transaction:

 

New
York, NY

 

    Page 27

     

    

 

		(b)	The
Office of Counterparty for each Transaction:

 

Philadelphia,
PA

 

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:	/s/ Donald Merritt	 	 
	 	Name: Donald Merritt
Title:
Vice President	 

 

 

CONFIRMED
AND AGREED

AS OF THE DATE FIRST ABOVE WRITTEN:

 

CENTER
CITY FUNDING LLC

 

	 By:	/s/ William Goebel	 	 
	 	Name: William Goebel
Title:
Chief Financial Officer	 

 

 

    Page 28

     

    

 

ANNEX
A

 

ADDITIONAL
DEFINITIONS

 

“Adjusted
Notional Funded Amount” means (A) 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 such date of determination multiplied by the Current Price minus
(ii) the product of (x) the excess, if any, of the Commitment Amount of such Reference Obligation as of such date
over the Outstanding Principal Amount of such Reference Obligation as of such date multiplied by (y) 100% minus
the Current Price; and (B) in relation to any Reference Obligation that is a Term Obligation (and the related Transaction)
as of any date of determination, the Reference Amount of the related Reference Obligation as of such date multiplied by
the Current Price in relation to such Reference Obligation.

 

“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 hereto (as such Annex may be amended by mutual written
consent of the parties hereto from time to time) 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 “A2”
by Moody’s and at least “A” by S&P and (b) if an entity listed in Annex III hereto is not the principal
banking or securities Affiliate within a financial holding company group, the principal banking or securities Affiliate of such
listed entity within such financial holding company group so long as such obligations of such Affiliate have the rating indicated
in clause (a) above.

 

“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, reasonable 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 29

     

    

 

“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 two hours after Counterparty is given notice of such determination,
(a) designate up to two entities, each of which shall be either (i) an Approved Buyer or (ii) a Dealer of credit standing
acceptable to Citibank in the exercise of its reasonable discretion and (b) provide to Citibank within such two-hour period
with respect to each such Approved Buyer or Dealer a Firm Bid with respect to the entire Reference Amount of the Reference Obligation.
The higher 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 (a) any nationally recognized independent dealer in the related Reference Obligation chosen by the Calculation Agent
or its designated Affiliate, (b) any Approved Buyer or other entity designated by the Calculation Agent and having a credit
standing acceptable to Citibank and (c) any Approved Buyer designated by Counterparty pursuant to Clause 4(b).

 

“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.

 

“Designated
Reference Obligation” means any Reference Obligation that (a) is not a Specified Reference Obligation, (b) has
as of the Obligation Trade Date a Moody’s Rating of at least B2 and an S&P Rating of at least B, (c) 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 USD500,000,000,
(d) has an Initial Price as of the Obligation Trade Date of at least 90% and (e) is on the Obligation Trade Date the
subject of at least five bid quotations from nationally recognized independent dealers in the related obligation as reported on
a nationally recognized pricing service.

 

“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.

 

    Page 30

     

    

 

“Financial
Sponsor” means any entity, including any subsidiary of another entity, whose principal business activity is acquiring,
holding and selling investments (including controlling interests) in otherwise unrelated companies that each are distinct legal
entities with separate management, books and records and bank accounts, whose operations are not integrated one with another and
whose financial condition and creditworthiness are independent of the other companies so owned by such entity.

 

“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 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) accrue prior to the Obligation Trade Date for the related Reference Obligation
                                         or that accrue on or after the Termination Trade Date for the related Reference Obligation
                                         or portion thereof or (ii) to the extent that such amounts are payable contingent
                                         upon whether a consent is given or withheld by the record owner of the related Reference
                                         Obligation, accrue 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 any Costs of Assignment 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, 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)	with
                                         respect to any Terminated Transaction, if any interest on the Terminated Obligation accrued
                                         prior to the related Obligation Termination Date is actually paid on the scheduled interest
                                         payment date next succeeding the Obligation Termination Date, then the Interest and Fee
                                         Amount shall include the portion of such interest so paid (as determined by the Calculation
                                         Agent) that accrued with respect to the period ending on but excluding the Obligation
                                         Termination Date.

 

“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.

 

    Page 31

     

    

 

“Moody’s“
means Moody’s Investors Service, Inc. or any successor thereto.

 

“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

 

    Page 32

     

    

 

		(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

 

		(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), the Moody’s Rating
                                         may be determined using any of the methods below:

 

		(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;

 

		(B)	for
                                         up to 5% of the Portfolio Target Amount, if there is a private rating of an obligor that
                                         has been provided by Moody’s 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; or

 

    Page 33

     

    

 

		(C)	for
                                         up to 10% of the Portfolio Target Amount, the Moody’s Rating may be determined in accordance
                                         with the methodologies for establishing the S&P Rating except that the Moody’s Rating
                                         of such obligation will be (1) one sub-category below the Moody’s equivalent of
                                         the S&P Rating if such S&P Rating is “BBB-” or higher and (2) two
                                         sub-categories below the Moody’s equivalent of the S&P Rating if such S&P Rating
                                         is “BB+” or lower.

 

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.

 

“Portfolio
Target Amount” means (a) during the Ramp-Up Period and the Ramp-Down Period, the Maximum Portfolio Notional
Amount and (b) at any other time, the Portfolio Notional Amount.

 

“Rate
Payments” means Counterparty First Floating Amounts, Counterparty Second Floating Amounts, Counterparty Third Floating
Amounts and Citibank Fixed Amounts.

 

“Reference
Obligation Credit Agreement” means any term loan agreement, revolving loan agreement or other similar credit agreement
governing a Reference Obligation.

 

“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.

 

“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,

 

    Page 34

     

    

 

		(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

 

		(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

 

    Page 35

     

    

 

		(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:

 

(A)
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 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); and

 

(B)
for up to 10% of the Portfolio Target Amount, the S&P Rating may be determined in accordance with the methodologies for establishing
the Moody’s Rating except that the S&P Rating of such obligation will be (1) one sub-category below the S&P equivalent
of the Moody’s Rating if such Moody’s Rating is “Baa3” or higher and (2) two sub-categories below the S&P equivalent
of the Moody’s Rating if such Moody’s Rating is “Ba1” or lower.

 

“Second
Lien Obligation” means a Loan 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 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.

 

    Page 36

     

    

 

“Specified
Reference Obligation” means any Reference Obligation 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 that is terminated pursuant to
Clause 3.

 

“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; 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 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 tenth Business Day
next succeeding the last day of the Monthly Period during which the related Obligation Termination Date occurs.

 

    Page 37

     

    

 

ANNEX
I

 

	Reference
    Obligation	Reference
    Entity	Reference
    Amount	Outstanding
    Principal Amount	Initial
    Price (%)	Obligation
    Trade Date	Obligation
    Settlement Date
	 	 	 	 	 	 	 

 

    Page 38

     

    

 

ANNEX
II

 

Obligation
Criteria

 

The
“Obligation Criteria” are as follows:

 

		(i)	The
                                         obligation is a Loan.

 

		(ii)	The
                                         obligation is denominated in USD.

 

		(iii)	The
                                         obligation is secured.

 

		(iv)	The
                                         obligation is not Subordinate.

 

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

 

		(vi)	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 relevant Obligation Trade Date.

 

		(vii)	On
                                         the relevant Obligation Trade Date for the Transaction relating to the obligation, the
                                         obligation is in the form of, and is treated as, indebtedness for U.S. Federal income
                                         tax purposes.

 

		(viii)	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, on the Obligation Trade Date the obligation is
                                         part of a fungible class of debt obligations (as to issuance date and all economic terms)
                                         of at least USD125,000,000.

 

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

 

		(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, either (x) 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
                                         or (y) the obligation satisfies each of the following four conditions: (A) the
                                         obligation was originated not more than 30 days prior to the Obligation Trade Date, (B) the
                                         obligation is on the Obligation Trade Date the subject of at least one bid quotation
                                         from a nationally recognized independent dealer in the related obligation as reported
                                         on a nationally recognized pricing service, (C) on the Obligation Trade Date the
                                         obligation is part of a fungible class of debt obligations (as to issuance date and all
                                         economic terms) of at least USD150,000,000 and (D) the obligation has as of the
                                         Obligation Trade Date a Moody’s Rating of at least B2 and an S&P Rating of at least
                                         B.

 

    Page 39

     

    

 

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 all Reference Obligations that are Specified Reference
                                         Obligations does not exceed 25% of the Portfolio Target Amount.

 

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

 

		(iv)	The
                                         sum of the Notional Amounts for Reference Obligations of any single Reference Entity
                                         or any of its Affiliates does not exceed 5% of the Portfolio Target Amount; provided
                                         that sum of the Notional Amounts for Reference Obligations of up to three single
                                         Reference Entities or any of its Affiliates may be up to 7.5% of the Portfolio Target
                                         Amount.

 

		(v)	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.

 

		(vi)	After
                                         the Ramp-Up Period and prior to the Ramp-Down Period, the Reference Portfolio has a Weighted
                                         Average Rating of at most 2,720.

 

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 that is not a Specified 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 that are not Specified Reference Obligations; and (c) dividing the sum obtained in clause (b) by the aggregate
of the Notional Amounts of all Reference Obligations that are not Specified Reference Obligations.

 

    Page 40

     

    

 

Table
1

 

Moody’s
Industry Classification Groups

 

Aerospace
& Defense

Automotive

Banking,
Finance, Insurance and Real Estate

Beverage,
Food, & Tobacco

Capital
Equipment

Chemicals,
Plastics, & Rubber

Construction
& Building

Consumer
goods: durable

Consumer
goods: non-durable

Containers,
Packaging, & Glass

Energy:
Electricity

Energy:
Oil & Gas

Environmental
Industries

Forest
Products & Paper

Healthcare
& Pharmaceuticals

High
Tech Industries

Hotel,
Gaming, & Leisure

Media:
Advertising, Printing & Publishing

Media:
Broadcasting & Subscription

Media:
Diversified & Production

Metals
& Mining

Retail

Services:
Business

Services:
Consumer

Sovereign
& Public Finance

Telecommunications

Transportation:
Cargo

Transportation:
Consumer

Utilities:
Electric

Utilities:
Oil & Gas

Utilities:
Water

Wholesale

 

    Page 41

     

    

 

Table
2

 

Rating
Factors

 

	Moody’s
    Rating	Rating Factor
	Aaa	1	 
	Aa1	10	 
	Aa2	20	 
	Aa3	40	 
	A1	70	 
	A2	120	 
	A3	180	 
	Baa1	260	 
	Baa2	360	 
	Baa3	610	 
	Ba1	940	 
	Ba2	1,350	 
	Ba3	1,766	 
	B1	2,220	 
	B2	2,720	 
	B3	3,490	 
	Caa1	4,770	 
	Caa2	6,500	 
	Caa3 or below	10,000	 

 

    Page 42

     

    

 

Annex III

 

Approved
Buyers

 

Bank
of America, NA

The
Bank of Montreal

The
Bank of New York Mellon, N.A.

Barclays
Bank plc

BNP
Paribas

Calyon

Canadian
Imperial Bank of Commerce

Citibank,
N.A.

Credit
Agricole S.A.

Credit
Suisse

Deutsche
Bank AG

Dresdner
Bank AG

Goldman
Sachs & Co.

HSBC
Bank

JPMorgan
Chase Bank, N.A.

Merrill
Lynch, Pierce, Fenner & Smith Incorporated

Morgan
Stanley & Co.

Natixis

Northern
Trust Company

Royal
Bank of Canada

The
Royal Bank of Scotland plc

Societe
Generale

The
Toronto-Dominion Bank

UBS
AG

U.S.
Bank, National Association

Wachovia
Bank National Association

Wells
Fargo Bank, National Association

 

    Page 43Exhibit
10.1

 

NEITHER
THE ISSUANCE AND SALE OF THIS NOTE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
LAWS. THIS NOTE MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE
SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD
PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THIS NOTE MAY BE PLEDGED IN CONNECTION WITH A
BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE NOTE. 

 

	Principal Amount: $230,000.00	Issue Date: June 28, 2018
	Purchase Price: $200,000.00	 
	Original Issue Discount: $30,000.00 	 

 

PROMISSORY
NOTE

 

FOR
VALUE RECEIVED, Ozop Surgical Corp., a NEVADA corporation (hereinafter called the “Borrower”), hereby
promises to pay to the order of CAREBOURN CAPITAL, L.P., a Delaware limited partnership, or registered assigns (the “Holder”)
the sum of $230,000.00 together with any interest as set forth herein, on August 27, 2018 (the “Maturity Date”).
All payments due hereunder shall be made in lawful money of the United States of America. All payments shall be made at such address
as the Holder shall hereafter give to the Borrower by written notice made in accordance with the provisions of this Note. Whenever
any amount expressed to be due by the terms of this Note is due on any day which is not a business day, the same shall instead
be due on the next succeeding day which is a business day and, in the case of any interest payment date which is not the date
on which this Note is paid in full, the extension of the due date thereof shall not be taken into account for purposes of determining
the amount of interest due on such date. As used in this Note, the term “business day” shall mean any day other than
a Saturday, Sunday or a day on which commercial banks in the city of New York, New York are authorized or required by law or executive
order to remain closed.

 

This
Note carries an original issue discount of $30,000.00 (the “OID”). In addition, the Borrower shall authorize
the Holder, pursuant to a disbursement memorandum dated on or around the Issue Date, to pay the Holder’s attorney’s
fees incurred in connection with the preparation of this Note (the “Legal Fee”). The Purchase Price of this Note shall
be $200,000.00, computed as follows: $230,000.00 initial principal balance less the OID. Accordingly, the net amount
to be received by Borrower shall be $200,000.00, computed as follows: the purchase price of $200,000.00, less the
Legal Fee.

 

This
Note is free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive
rights or other similar rights of shareholders of the Borrower and will not impose personal liability upon the holder thereof.

 

The
following terms shall apply to this Note:

 

    	 

    	 

    

 

ARTICLE
I. EFFECT OF CERTAIN EVENTS; PREPAYMENT

 

1.1
  Effect of Certain Events.

 

(a)
Effect of Merger, Consolidation, Etc. At the option of the Holder, the sale, conveyance or disposition of all or substantially
all of the assets of the Borrower, the effectuation by the Borrower of a transaction or series of related transactions in which
more than 50% of the voting power of the Borrower is disposed of, or the consolidation, merger or other business combination of
the Borrower with or into any other Person (as defined below) or Persons when the Borrower is not the survivor shall either: (i)
be deemed to be an Event of Default (as defined in Article III) pursuant to which the Borrower shall be required to pay to the
Holder upon the consummation of and as a condition to such transaction an amount equal to the Default Amount (as defined in Article
III) or (ii) be treated pursuant to Section 1.6(b) hereof. “Person” shall mean any individual, corporation, limited
liability company, partnership, association, trust or other entity or organization.

 

(b)
Adjustment Due to Merger, Consolidation, Etc. If, at any time when this Note is issued and outstanding and prior to conversion
of all of the Notes, there shall be any merger, consolidation, or an exchange of shares, recapitalization or reorganization pursuant
to a merger or consolidation, or other similar event, as a result of which shares of Common Stock of the Borrower shall be changed
into the same or a different number of shares of another class or classes of stock or securities of the Borrower or another entity,
or in case of any sale or conveyance of all or substantially all of the assets or more than 50% of the total outstanding shares
of the Borrower other than in connection with a plan of complete liquidation of the Borrower, then the Holder of this Note shall
thereafter have the right to receive upon conversion of this Note, upon the basis and upon the terms and conditions specified
herein and in lieu of the shares of Common Stock immediately theretofore issuable upon conversion, such stock, securities or assets
which the Holder would have been entitled to receive in such transaction had this Note been converted in full immediately prior
to such transaction (without regard to any limitations on conversion set forth herein), and in any such case appropriate provisions
shall be made with respect to the rights and interests of the Holder of this Note to the end that the provisions hereof (including,
without limitation, provisions for adjustment of the Conversion Price and of the number of shares issuable upon conversion of
the Note) shall thereafter be applicable, as nearly as may be practicable in relation to any securities or assets thereafter deliverable
upon the conversion hereof. The Borrower shall not affect any transaction described in this Section 1.6(b) unless (a) it first
gives, to the extent practicable, thirty (30) days prior written notice (but in any event at least fifteen (15) days prior written
notice) of the record date of the special meeting of shareholders to approve, or if there is no such record date, the consummation
of, such merger, consolidation, exchange of shares, recapitalization, reorganization or other similar event or sale of assets
(during which time the Holder shall be entitled to convert this Note) and (b) the resulting successor or acquiring entity (if
not the Borrower) assumes by written instrument the obligations of this Section 1.6(b). The above provisions shall similarly apply
to successive consolidations, mergers, sales, transfers or share exchanges.

 

1.2
 Prepayment. Notwithstanding anything to the contrary contained in this Note,
the Borrower may prepay the amounts outstanding hereunder at any time prior to the Maturity Date, without penalty.

 

ARTICLE
II. CERTAIN COVENANTS, REPRESENTATIONS AND WARRANTIES

 

2.1
 Distributions on Capital Stock. So long as the Borrower shall have any obligation
under this Note, the Borrower shall not without the Holder’s written consent (a) pay, declare or set apart for such payment,
any dividend or other distribution (whether in cash, property or other securities) on shares of capital stock other than dividends
on shares of Common Stock solely in the form of additional shares of Common Stock or (b) directly or indirectly or through any
subsidiary make any other payment or distribution in respect of its capital stock except for distributions pursuant to any shareholders’
rights plan which is approved by a majority of the Borrower’s disinterested directors.

 

2.2
 Sale of Assets. So long as the Borrower shall have any obligation under this
Note, the Borrower shall not, without the Holder’s written consent, sell, lease, exchange
(including but not limited to an exchange for assets of equal or greater value) or
otherwise dispose of any significant portion of its assets outside the ordinary course of business. Any consent to the disposition
of any assets may be conditioned on a specified use of the proceeds of disposition.

 

2.3
 Advances and Loans. So long as the Borrower shall have any obligation under this
Note, the Borrower shall not, without the Holder’s written consent, lend money, give credit or make advances to any person,
firm, joint venture or corporation, including, without limitation, officers, directors, employees, subsidiaries and affiliates
of the Borrower, except loans, credits or advances (a) in existence or committed on the date hereof and which the Borrower has
informed Holder in writing prior to the date hereof, (b) made in the ordinary course of business, (c) made to a pending merging
partner pursuant to an agreement of merger or (c) not in excess of $100,000.

 

2.4 Representations
and Warranties Regarding Anti-Money Laundering; OFAC. Borrower hereby makes the representations and warranties set forth on
Exhibit A attached hereto and incorporated herein by this reference.

 

ARTICLE
III. EVENTS OF DEFAULT

 

If
any of the following events of default (each, an “Event of Default”) shall occur:

 

3.1
 Failure to Pay Principal or Interest. The Borrower fails to pay the principal
hereof or interest thereon when due on this Note, whether at maturity, upon acceleration or otherwise, following a five (5) day
cure period.

 

3.2
 Breach of Covenants. The Borrower breaches any covenant or other material term
or condition contained in this Note and any collateral documents including but not limited to the Purchase Agreement and such
breach continues for a period of ten (10) days after written notice thereof to the Borrower from the Holder.

 

3.3
 Breach of Representations and Warranties. Any representation or warranty of the
Borrower made herein or in any agreement, statement or certificate given in writing pursuant hereto or in connection herewith
(including, without limitation, the Securities Purchase Agreement entered into between the Borrower and the Holder dated April
1, 2018 (the “April 2018 Purchase Agreement”) and the Convertible Promissory Note issued to the Holder by the Borrower
with an issue date of April 13, 2018 (the “April 2018 Note”)), shall be false or misleading in any material respect
when made and the breach of which has (or with the passage of time will have) a material adverse effect on the rights of the Holder
with respect to this Note, the Purchase Agreement or the April 2018 Note.

 

3.4
 Receiver or Trustee. The Borrower or any subsidiary of the Borrower shall make
an assignment for the benefit of creditors, or apply for or consent to the appointment of a receiver or trustee for it or for
a substantial part of its property or business, or such a receiver or trustee shall otherwise be appointed.

 

3.5
 Judgments. Any money judgment, writ or similar process shall be entered or filed
against the Borrower or any subsidiary of the Borrower or any of its property or other assets for more than $50,000, and shall
remain unvacated, unbonded or unstayed for a period of twenty (20) days unless otherwise consented to by the Holder, which consent
will not be unreasonably withheld.

 

3.6
 Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings
or other proceedings, voluntary or involuntary, for relief under any bankruptcy law or any law for the relief of debtors shall
be instituted by or against the Borrower or any subsidiary of the Borrower.

 

3.7
 Delisting of Common Stock. The Borrower shall fail to maintain the listing of
the Common Stock on at least one of the OTC Markets or an equivalent replacement exchange, the Nasdaq National Market, the Nasdaq
SmallCap Market, the New York Stock Exchange, or the American Stock Exchange.

 

3.8
 Failure to Comply with the Exchange Act. The Borrower shall fail to comply with
the reporting requirements of the Exchange Act; and/or the Borrower shall cease to be subject to the reporting requirements of
the Exchange Act.

 

3.9
 Liquidation. Any dissolution, liquidation, or winding up of Borrower or any substantial
portion of its business.

 

3.10
 Cessation of Operations. Any cessation of operations by Borrower or Borrower
admits it is otherwise generally unable to pay its debts as such debts become due, provided, however, that any disclosure of the
Borrower’s ability to continue as a “going concern” shall not be an admission that the Borrower cannot pay its
debts as they become due.

 

3.11
 Maintenance of Assets. The failure by Borrower to maintain any material intellectual
property rights, personal, real property or other assets which are necessary to conduct its business (whether now or in the future).

 

3.12
 Financial Statement Restatement. The restatement of any financial statements
filed by the Borrower with the SEC for any date or period from two years prior to the Issue Date of this Note and until this Note
is no longer outstanding, if the result of such restatement would, by comparison to the unrestated financial statement, have constituted
a material adverse effect on the rights of the Holder with respect to this Note or the Purchase Agreement.

 

3.13
 Reverse Splits. The Borrower effectuates a reverse split of its Common Stock
without twenty (20) days prior written notice to the Holder.

 

3.14
 Replacement of Transfer Agent. In the event that the Borrower proposes to replace
its transfer agent, the Borrower fails to provide, prior to the effective date of such replacement, a fully executed Irrevocable
Transfer Agent Instructions in a form as initially delivered pursuant to the Purchase Agreement (including but not limited to
the provision to irrevocably reserve shares of Common Stock in the Reserved Amount) signed by the successor transfer agent to
Borrower and the Borrower.

 

3.15
 Cross-Default. Notwithstanding anything to the contrary contained in this Note
or other related or companion documents, a breach or default by the Borrower of any covenant or other term or condition contained
any other financial instrument, including but not limited to all convertible promissory notes, already issued, or issued in the
future, by the Borrower, to the Holder or any other 3rd party or the April 2018 Purchase Agreement, the April 2018
Note, after the passage of all applicable notice and cure or grace periods, shall, at the option of the Holder, be considered
a default under this Note. In addition, upon an occurrence of an Event of Default under this Note, after the passage of all applicable
notice and cure or grace periods, shall, at the option of the Holder, be considered a default under the April 2018 Purchase Agreement
and the April 2018 Note.

 

3.16 Event
of Default. Upon the occurrence of any Event of Default beyond any applicable grace period, the Note shall become immediately
due and payable upon demand by the Holder and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder,
an amount equal to the greater of (i) 110% times the sum of (x) the then outstanding principal amount of this Note plus (y) interest
on the unpaid principal amount of this Note at the highest lawful rate from the date of the occurrence of an Event of Default
to the date of payment(the then outstanding principal amount of this Note to the date of payment plus the amounts referred to
in clauses (x) and, (y) shall collectively be known as the “Default Sum”), and all other amounts payable hereunder
shall immediately become due and payable, all without demand, presentment or notice, all of which hereby are expressly waived,
together with all costs, including, without limitation, legal fees and expenses, of collection, and the Holder shall be entitled
to exercise all other rights and remedies available at law or in equity. In addition, upon the occurrence of any Event of Default
beyond any applicable grace period, the Holder shall be entitled to exercise any of the remedies provided for in the April 2018
Purchase Agreement, the April 2018 Note and each of the Pledge Agreements entered into between each of the Borrowers’ executive
officers, the Borrower and the Holder on April 13, 2018 in connection with the April 2018 Purchase Agreement (the “Pledge
Agreements”). The remedies of the Holder as provided herein, the April 2018 Purchase Agreement, the April 2018 Note or in
the Pledge Agreements shall be cumulative and concurrent and may be pursued singularly, successively or together, at the sole
discretion of the Holder, and may be exercised as often as the occasion therefor shall arise.

 

ARTICLE
IV. MISCELLANEOUS

 

4.1
Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or
privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege
preclude other or further exercise thereof or of any other right, power or privileges. All rights and remedies existing hereunder
are cumulative to, and not exclusive of, any rights or remedies otherwise available.

 

4.2
Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder
shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered
or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid,
or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party
shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder
shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting
facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where
such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during
normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by
express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first
occur. The addresses for such communications shall be:

 

If
to the Borrower, to:

 

Ozop
Surgical Corp.

500
La Terraza Blvd., Suite 150

Escondido,
CA 92025

Attn:
Michael Chermak / CEO

Email:
michael@ozopsurgical.com

 

If
to the Holder:

 

CAREBOURN
CAPITAL, L.P. 

8700
Black Oaks Lane N

Maple
Grove, Minnesota 55311

Attn:
Chip Rice, Managing Member 

Email:
info@carebourncapital.com

 

4.3
 Amendments. This Note and any provision hereof may only be amended by an instrument
in writing signed by the Borrower and the Holder. The term “Note” and all reference thereto, as used throughout this
instrument, shall mean this instrument (and the other Notes issued pursuant to the Purchase Agreement) as originally executed,
or if later amended or supplemented, then as so amended or supplemented.

 

4.4
Assignability. This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be the benefit
of the Holder and its successors and assigns. Each transferee of this Note must be an “accredited investor” (as defined
in Rule 501(a) of the 1933 Act). Notwithstanding anything in this Note to the contrary, this Note may be pledged as collateral
in connection with a bona fide margin account or other lending arrangement.

 

4.5
Cost of Collection. Upon the occurrence of an Event of Default, the Borrower shall pay the Holder hereof the Holder’s
costs of collection, including reasonable attorneys’ fees.

 

4.6
Governing Law.

 

(a).Except
in the case of the Mandatory Forum Selection provisions in Section 4.6(b) below, which clause shall be governed and interpreted
in accordance with Minnesota law, this Note shall be delivered and accepted in and shall be deemed to be contracts made under
and governed by the internal laws of the State of Minnesota, and for all purposes shall be construed in accordance with the laws
of such State, without giving effect to the choice of law provisions of such state. This Note shall be governed by and construed
in accordance with the laws of the State of Minnesota without regard to principles of conflicts of laws.

 

(b).Mandatory
Forum Selection. Any action brought by either party against the other concerning the transactions contemplated by this Note
shall be brought only in the state courts or federal courts located in the state of Minnesota, County of Hennepin. The parties
to this Note hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not
assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The Borrower and Holder waive
trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney's fees and costs.
In the event that any provision of this Note or any other agreement delivered in connection herewith is invalid or unenforceable
under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict
therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid
or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party
hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in
connection with this Note, the April 2018 Purchase Agreement, the April 2018 Note and each of the Pledge Agreements by mailing
a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address
in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient service of process
and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner
permitted by law.

 

4.7
Certain Amounts. Whenever pursuant to this Note the Borrower is required to pay an amount in excess of the outstanding
principal amount (or the portion thereof required to be paid at that time) plus accrued and unpaid interest, the Borrower and
the Holder agree that the actual damages to the Holder from the receipt of cash payment on this Note may be difficult to determine
and the amount to be so paid by the Borrower represents stipulated damages and not a penalty and is intended to compensate the
Holder in part risks associated with the Holder’s purchase of this Note. The Borrower and the Holder hereby agree that such
amount of stipulated damages is not plainly disproportionate to the possible loss to the Holder from the receipt of a cash payment
of the principal amount of this Note.

 

4.8
Usury Savings Clause. Notwithstanding any provision in this Note to the contrary, the total liability for payments of interest
and payments in the nature of interest, including, without limitation, all charges, fees, exactions, or other sums which may at
any time be deemed to be interest, shall not exceed the limit imposed by the usury laws of the jurisdiction governing this Note
or any other applicable law. In the event the total liability of payments of interest and payments in the nature of interest,
including, without limitation, all charges, fees, exactions or other sums which may at any time be deemed to be interest, shall,
for any reason whatsoever, result in an effective rate of interest, which for any month or other interest payment period exceeds
the limit imposed by the usury laws of the jurisdiction governing this Note, all sums in excess of those lawfully collectible
as interest for the period in question shall, without further agreement or notice by, between, or to any party hereto, be applied
to the reduction of the outstanding principal balance due hereunder immediately upon receipt of such sums by the Holder hereof,
with the same force and effect as though Borrower had specifically designated such excess sums to be so applied to the reduction
of the principal balance then outstanding, and the Holder hereof had agreed to accept such sums as a penalty-free payment of principal;
provided, however, that the Holder may, at any time and from time to time, elect, by notice in writing to Borrower, to waive,
reduce, or limit the collection of any sums in excess of those lawfully collectible as interest, rather than accept such sums
as a prepayment of the principal balance then outstanding. It is the intention of the parties that Borrower does not intend or
expect to pay, nor does the Holder intend or expect to charge or collect any interest under this Note greater than the highest
non-usurious rate of interest which may be charged under applicable law.

 

4.9
INTENTIONALLY LEFT BLANK.

 

4.10
INTENTIONALLY LEFT BLANK.

 

4.11
Remedies. The Borrower acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the
Holder, by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Borrower acknowledges that
the remedy at law for a breach of its obligations under this Note will be inadequate and agrees, in the event of a breach or threatened
breach by the Borrower of the provisions of this Note, that the Holder shall be entitled, in addition to all other available remedies
at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing
or curing any breach of this Note and to enforce specifically the terms and provisions thereof, without the necessity of showing
economic loss and without any bond or other security being required.

 

4.12 Right
of First Refusal. If at any time while this Note is outstanding, the Borrower has a bona fide offer of capital or financing
from any 3rd party, the Borrower must first offer such opportunity to the Holder to provide such capital or financing
to the Borrower on the same terms as each respective 3rd party’s terms. Should the Holder be unwilling or unable
to provide such capital or financing to the Borrower within 5 business days from receipt of written notice of the offer (the “Offer
Notice”) from the Borrower, then the Borrower may obtain such capital or financing from that respective 3rd party
upon the same terms and conditions offered by the Borrower to the Holder, which transaction must be completed within 30 days after
the date of the Offer Notice. If the Borrower does not complete such transaction within such time period, then the Borrower must
again offer the capital or financing opportunity to the Holder on the same terms, and the process detailed above shall be repeated.

 

4.13
 Terms of Future Financings.  So long as this Note is outstanding, upon any
issuance by the Borrower or any of its subsidiaries of any security with any term more favorable to the holder of such security
or with a term in favor of the holder of such security that was not similarly provided to the Holder in this Note, then the Borrower
shall notify the Holder of such additional or more favorable term and such term, at Holder’s option, shall become a part
of the transaction documents with the Holder.  The types of terms contained in another security that may be more favorable
to the holder of such security include, but are not limited to, terms addressing prepayment rate, interest rates, and original
issue discounts.

[SIGNATURE
PAGE FOLLOWS]

    	 

    	 

    

 

IN
WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by its duly authorized officer as of the Issue Date first
above written.

 

Ozop
Surgical Corp.

 

 

 

By:
/s/ Michael Chermak

Name:Michael
Chermak

Title:Chief
Executive Officer

 

    	 

    	 

    

 

EXHIBIT
A

 

Representations
and Warranties Regarding Anti-Money Laundering; OFAC.

		1.1.	The
                                         Borrower should check the Office of Foreign Assets Control (“OFAC”) website
                                         at http://www.treas.gov/ofac before making the following representations.

		1.2.	The
                                         Borrower represents that the cash amounts to be paid to Carebourn Capital, L.P. (the
                                         “Holder”) under the promissory note dated June 28, 2018 (the “Note”),
                                         by the Borrower, were not and are not directly or indirectly derived from activities
                                         that contravene U.S. federal or state or international laws and regulations, including
                                         anti-money laundering laws and regulations. U.S. federal regulations and executive orders
                                         administered by OFAC prohibit, among other things, the engagement in transactions with,
                                         and the provision of services to, certain foreign countries, territories, entities and
                                         individuals. The lists of OFAC prohibited countries, territories, persons and entities
                                         can be found on the OFAC website at http://www.treas.gov/ofac. In addition, the programs
                                         administered by OFAC (the “OFAC Programs”) prohibit dealing with individuals[1]
                                         or entities in certain countries regardless of whether such individuals
                                         or entities appear on the OFAC lists.

		1.3.	To
                                         the best of the Borrower’s knowledge, none of: (1) the Borrower; (2) any person
                                         controlling or controlled by the Borrower; (3) if the Borrower is a privately-held entity,
                                         any person having a beneficial interest in the Borrower; or (4) any person for whom the
                                         Borrower is acting as agent or nominee is a country, territory, individual or entity
                                         named on an OFAC list, or a person or entity prohibited under the OFAC Programs.

		1.4.	To
                                         the best of the Borrower’s knowledge, none of: (1) the Borrower; (2) any person
                                         controlling or controlled by the Borrower; (3) if the Borrower is a privately-held entity,
                                         any person having a beneficial interest in the Borrower; or (4) any person for whom the
                                         Borrower is acting as agent or nominee is a senior foreign political figure[2],
                                         or any immediate family[3] member or
                                         close associate[4] of a senior foreign
                                         political figure, as such terms are defined in the footnotes below.

		1.5.	Borrower
                                         hereby represents and warrants that the cash payments under the Note are to be made on
                                         its own behalf or, if applicable, and such cash payments do not directly or indirectly
                                         contravene United States federal, state, local or international laws or regulations applicable
                                         to Borrower, including anti-money laundering laws.

		1.6.	If
                                         the Borrower is affiliated with a non-U.S. banking institution (a “Foreign Bank”),
                                         or if the Borrower receives deposits from, makes payments on behalf of, or handles other
                                         financial transactions related to a Foreign Bank, the Borrower represents and warrants
                                         to the Holder that: (1) the Foreign Bank has a fixed address, other than solely an electronic
                                         address, in a country in which the Foreign Bank is authorized to conduct banking activities;
                                         (2) the Foreign Bank maintains operating records related to its banking activities; (3)
                                         the Foreign Bank is subject to inspection by the banking authority that licensed the
                                         Foreign Bank to conduct banking activities; and (4) the Foreign Bank does not provide
                                         banking services to any other Foreign Bank that does not have a physical presence in
                                         any country and that is not a regulated affiliate.

		1.7.	Upon
                                         the written request from the Holder, Borrower agrees to provide all information to the
                                         Holder to enable the Holder to comply with all applicable anti-money laundering statutes,
                                         rules, regulations and policies. Borrower understands and agrees that the Holder may
                                         release confidential information about Borrower and, if applicable, any of its affiliates,
                                         directors, officers, trustees, beneficiaries and grantors related thereto, to any person
                                         if the Holder, in its sole discretion, determines that such disclosure is necessary to
                                         comply with applicable statutes, rules, regulations and policies.

IN
WITNESS WHEREOF, Borrower has caused this representation letter to be signed in its name by its duly authorized officer this June
28, 2018.

 

 

Ozop
Surgical Corp.

 

 

 

By:
/s/ Michael Chermak

Name:Michael
Chermak

Title:Chief
Executive Officer

 

 

_________________________ 

[1]
These individuals include specially designated
nationals, specially designated narcotics traffickers and other parties subject to OFAC sanctions and embargo programs.

[2]
A “senior foreign political figure”
is defined as a senior official in the executive, legislative, administrative, military or judicial branches of a foreign government
(whether elected or not), a senior official of a major foreign political party, or a senior executive of a foreign government-owned
corporation. In addition, a “senior foreign political figure” includes any corporation, business or other entity that
has been formed by, or for the benefit of, a senior foreign political figure.

[3]
“Immediate family” of a senior
foreign political figure typically includes the figure’s parents, siblings, spouse, children and in-laws.

[4]
A “close associate” of a senior
foreign political figure is a person who is widely and publicly known to maintain an unusually close relationship with the senior
foreign political figure, and includes a person who is in a position to conduct substantial domestic and international financial
transactions on behalf of the senior foreign political figure.

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