Document:

SECURITIES
PURCHASE AGREEMENT

This
SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of October 17, 2017, by and between Tauriga Sciences,
Inc., a Florida corporation, with headquarters located at 39 Old Ridgebury Road, Danbury, CT 06180 (the “Company”),
and GS CAPITAL PARTNERS, LLC, with its address at 110 Wall Street, Suite 5-070, New York, NY 10005 (the “Buyer”).

 

WHEREAS:

 

A.
The Company and the Buyer are executing and delivering this Agreement in reliance upon the exemption from securities registration
afforded by the rules and regulations as promulgated by the United States Securities and Exchange Commission (the “SEC”)
under the Securities Act of 1933, as amended (the “1933 Act”);

 

B.
Buyer desires to purchase and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement
two 8% convertible notes of the Company, in the forms attached hereto as Exhibit A and B in the aggregate principal amount of
$210,000.00 (with the first note being in the amount of $105,000 and the second note being in the amount of $105,000.00 (together
with any note(s) issued in replacement thereof or as a dividend thereon or otherwise with respect thereto in accordance with the
terms thereof, the “Note”), convertible into shares of common stock, of the Company (the “Common Stock”),
upon the terms and subject to the limitations and conditions set forth in such Note. The first of the two notes (the “First
Note”) shall be paid for by the Buyer as set forth herein. The second note (the “Second Note”) shall initially
be paid for by the issuance of an offsetting $105,000.00 secured note issued to the Company by the Buyer (“Buyer Note”),
provided that prior to conversion of the Second Note, the Buyer must have paid off the Buyer Note in cash such that the Second
Note may not be converted until it has been paid for in cash.

 

C.
The Buyer wishes to purchase, upon the terms and conditions stated in this Agreement, such principal amount of Note as is set
forth immediately below its name on the signature pages hereto; and

 

NOW
THEREFORE, the Company and the Buyer severally (and not jointly) hereby agree as follows:

 

1.
Purchase and Sale of Note.

 

a.
Purchase of Note. On the Closing Date (as defined below), the Company shall issue and sell to the Buyer and the Buyer agrees
to purchase from the Company such principal amount of Note as is set forth immediately below the Buyer’s name on the signature
pages hereto.

 

_____

Company
Initials

 

    	 	 	 

    	 

    

 

b.
Form of Payment. On the Closing Date (as defined below), (i) the Buyer shall pay the purchase price for the Note to be
issued and sold to it at the Closing (as defined below) (the “Purchase Price”) by wire transfer of immediately available
funds to the Company, in accordance with the Company’s written wiring instructions, against delivery of the Note in the
principal amount equal to the Purchase Price as is set forth immediately below the Buyer’s name on the signature pages hereto,
and (ii) the Company shall deliver such duly executed Note on behalf of the Company, to the Buyer, against delivery of such Purchase
Price.

 

c.
Closing Date. The date and time of the first issuance and sale of the Note pursuant to this Agreement (the “Closing
Date”) shall be on or about October 17, 2017, or such other mutually agreed upon time. The closing of the transactions contemplated
by this Agreement (the “Closing”) shall occur on the Closing Date at such location as may be agreed to by the parties.
Subsequent Closings shall occur when the Buyer Note is repaid.

 

2.
Buyer’s Representations and Warranties. The Buyer represents and warrants to the Company that:

 

a.
Investment Purpose. As of the date hereof, the Buyer is purchasing the Note and the shares of Common Stock issuable upon
conversion of or otherwise pursuant to the Note, such shares of Common Stock being collectively referred to herein as the “Conversion
Shares” and, collectively with the Note, the “Securities”) for its own account and not with a present view towards
the public sale or distribution thereof, except pursuant to sales registered or exempted from registration under the 1933 Act;
provided, however, that by making the representations herein, the Buyer does not agree to hold any of the Securities
for any minimum or other specific term and reserves the right to dispose of the Securities at any time in accordance with or pursuant
to a registration statement or an exemption under the 1933 Act.

 

b.
Accredited Investor Status. The Buyer is an “accredited investor” as that term is defined in Rule 501(a) of
Regulation D (an “Accredited Investor”).

 

c.
Reliance on Exemptions. The Buyer understands that the Securities are being offered and sold to it in reliance upon specific
exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying
upon the truth and accuracy of, and the Buyer’s compliance with, the representations, warranties, agreements, acknowledgments
and understandings of the Buyer set forth herein in order to determine the availability of such exemptions and the eligibility
of the Buyer to acquire the Securities.

 

d.
Information. The Buyer and its advisors, if any, have been, and for so long as the Note remain outstanding will continue
to be, furnished with all materials relating to the business, finances and operations of the Company and materials relating to
the offer and sale of the Securities which have been requested by the Buyer or its advisors. The Buyer and its advisors, if any,
have been, and for so long as the Note remain outstanding will continue to be, afforded the opportunity to ask questions of the
Company. Notwithstanding the foregoing, the Company has not disclosed to the Buyer any material nonpublic information and will
not disclose such information unless such information is disclosed to the public prior to or promptly following such disclosure
to the Buyer. Neither such inquiries nor any other due diligence investigation conducted by Buyer or any of its advisors or representatives
shall modify, amend or affect Buyer’s right to rely on the Company’s representations and warranties contained in Section
3 below. The Buyer understands that its investment in the Securities involves a significant degree of risk. The Buyer is not aware
of any facts that may constitute a breach of any of the Company’s representations and warranties made herein.

 

    	 	2	 

    	 

    

 

e.
Governmental Review. The Buyer understands that no United States federal or state agency or any other government or governmental
agency has passed upon or made any recommendation or endorsement of the Securities.

 

f.
Transfer or Re-sale. The Buyer understands that (i) the sale or re-sale of the Securities has not been and is not being
registered under the 1933 Act or any applicable state securities laws, and the Securities may not be transferred unless (a) the
Securities are sold pursuant to an effective registration statement under the 1933 Act, (b) the Buyer shall have delivered to
the Company, at the cost of the Buyer, an opinion of counsel that shall be in form, substance and scope customary for opinions
of counsel in comparable transactions to the effect that the Securities to be sold or transferred may be sold or transferred pursuant
to an exemption from such registration, which opinion shall be accepted by the Company, (c) the Securities are sold or transferred
to an “affiliate” (as defined in Rule 144 promulgated under the 1933 Act (or a successor rule) (“Rule 144”)
of the Buyer who agrees to sell or otherwise transfer the Securities only in accordance with this Section 2(f) and who is an Accredited
Investor, (d) the Securities are sold pursuant to Rule 144, or (e) the Securities are sold pursuant to Regulation S under the
1933 Act (or a successor rule) (“Regulation S”), and the Buyer shall have delivered to the Company, at the cost of
the Buyer, an opinion of counsel that shall be in form, substance and scope customary for opinions of counsel in corporate transactions,
which opinion shall be accepted by the Company; (ii) any sale of such Securities made in reliance on Rule 144 may be made only
in accordance with the terms of said Rule and further, if said Rule is not applicable, any re-sale of such Securities under circumstances
in which the seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that term is defined
in the 1933 Act) may require compliance with some other exemption under the 1933 Act or the rules and regulations of the SEC thereunder;
and (iii) neither the Company nor any other person is under any obligation to register such Securities under the 1933 Act or any
state securities laws or to comply with the terms and conditions of any exemption thereunder (in each case). Notwithstanding the
foregoing or anything else contained herein to the contrary, the Securities may be pledged as collateral in connection with a
bona fide margin account or other lending arrangement.

 

g.
Legends. The Buyer understands that the Note and, until such time as the Conversion Shares have been registered under the
1933 Act may be sold pursuant to Rule 144 or Regulation S without any restriction as to the number of securities as of a particular
date that can then be immediately sold, the Conversion Shares may bear a restrictive legend in substantially the following form
(and a stop-transfer order may be placed against transfer of the certificates for such Securities):

 

    	 	3	 

    	 

    

 

“NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES 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, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

 

The
legend set forth above shall be removed and the Company shall issue a certificate without such legend to the holder of any Security
upon which it is stamped, if, unless otherwise required by applicable state securities laws, (a) such Security is registered for
sale under an effective registration statement filed under the 1933 Act or otherwise may be sold pursuant to Rule 144 or Regulation
S without any restriction as to the number of securities as of a particular date that can then be immediately sold, or (b) such
holder provides the Company with an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable
transactions, to the effect that a public sale or transfer of such Security may be made without registration under the 1933 Act,
which opinion shall be accepted by the Company so that the sale or transfer is effected. The Buyer agrees to sell all Securities,
including those represented by a certificate(s) from which the legend has been removed, in compliance with applicable prospectus
delivery requirements, if any. In the event that the Company does not accept the opinion of counsel provided by the Buyer with
respect to the transfer of Securities pursuant to an exemption from registration, such as Rule 144 or Regulation S, within 2 business
days, it will be considered an Event of Default under the Note.

 

h. Authorization;
Enforcement. This Agreement has been duly and validly authorized. This Agreement has been duly executed and delivered on
behalf of the Buyer, and this Agreement constitutes a valid and binding agreement of the Buyer enforceable in accordance with
its terms.

 

i.
Residency. The Buyer is a resident of the jurisdiction set forth immediately below the Buyer’s name on the signature
pages hereto.

 

j.
No Short Sales. Buyer/Holder, its successors and assigns, agree that so long as the Note remains outstanding, the Buyer/Holder
shall not enter into or effect “short sales” of the Common Stock or hedging transaction which establishes a short
position with respect to the Common Stock of the Company. The Company acknowledges and agrees that upon delivery of a Conversion
Notice by the Buyer/Holder, the Buyer/Holder immediately owns the shares of Common Stock described in the Conversion Notice and
any sale of those shares issuable under such Conversion Notice would not be considered short sales.

 

    	 	4	 

    	 

    

 

3.
Representations and Warranties of the Company. The Company represents and warrants to the Buyer that:

 

a.
Organization and Qualification. The Company and each of its subsidiaries, if any, is a corporation duly organized, validly
existing and in good standing under the laws of the jurisdiction in which it is incorporated, with full power and authority (corporate
and other) to own, lease, use and operate its properties and to carry on its business as and where now owned, leased, used, operated
and conducted.

 

b.
Authorization; Enforcement. (i) The Company has all requisite corporate power and authority to enter into and perform this
Agreement, the Note and to consummate the transactions contemplated hereby and thereby and to issue the Securities, in accordance
with the terms hereof and thereof, (ii) the execution and delivery of this Agreement, the Note by the Company and the consummation
by it of the transactions contemplated hereby and thereby (including without limitation, the issuance of the Note and the issuance
and reservation for issuance of the Conversion Shares issuable upon conversion or exercise thereof) have been duly authorized
by the Company’s Board of Directors and no further consent or authorization of the Company, its Board of Directors, or its
shareholders is required, (iii) this Agreement has been duly executed and delivered by the Company by its authorized representative,
and such authorized representative is the true and official representative with authority to sign this Agreement and the other
documents executed in connection herewith and bind the Company accordingly, and (iv) this Agreement constitutes, and upon execution
and delivery by the Company of the Note, each of such instruments will constitute, a legal, valid and binding obligation of the
Company enforceable against the Company in accordance with its terms.

 

c.
Issuance of Shares. The Conversion Shares are duly authorized and reserved for issuance and, upon conversion of the Note
in accordance with its respective terms, will be validly issued, fully paid and non-assessable, and 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 Company and will not impose personal liability upon the holder thereof.

 

d.
Acknowledgment of Dilution. The Company understands and acknowledges the potentially dilutive effect to the Common Stock
upon the issuance of the Conversion Shares upon conversion of the Note. The Company further acknowledges that its obligation to
issue Conversion Shares upon conversion of the Note in accordance with this Agreement, the Note is absolute and unconditional
regardless of the dilutive effect that such issuance may have on the ownership interests of other shareholders of the Company.

 

    	 	5	 

    	 

    

 

e.
No Conflicts. The execution, delivery and performance of this Agreement, the Note by the Company and the consummation by
the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance and reservation for
issuance of the Conversion Shares) will not (i) conflict with or result in a violation of any provision of the Certificate of
Incorporation or By-laws, or (ii) violate or conflict with, or result in a breach of any provision of, or constitute a default
(or an event which with notice or lapse of time or both could become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture, patent, patent license or instrument to which the Company
or any of its subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree
(including federal and state securities laws and regulations and regulations of any self-regulatory organizations to which the
Company or its securities are subject) applicable to the Company or any of its subsidiaries or by which any property or asset
of the Company or any of its subsidiaries is bound or affected (except for such conflicts, defaults, terminations, amendments,
accelerations, cancellations and violations as would not, individually or in the aggregate, have a material adverse effect). All
consents, authorizations, orders, filings and registrations which the Company is required to obtain pursuant to the preceding
sentence have been obtained or effected on or prior to the date hereof. The Company is not in violation of the listing requirements
of the OTC marketplace (the “OTC MARKETS”) and does not reasonably anticipate that the Common Stock will be delisted
by the OTC Markets in the foreseeable future, nor are the Company’s securities “chilled” by DTC. The Company
and its subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing.

 

f.
Absence of Litigation. Except as disclosed in the Company’s public filings, there is no action, suit, claim, proceeding,
inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending
or, to the knowledge of the Company or any of its subsidiaries, threatened against or affecting the Company or any of its subsidiaries,
or their officers or directors in their capacity as such, that could have a material adverse effect. Schedule 3(f) contains a
complete list and summary description of any pending or, to the knowledge of the Company, threatened proceeding against or affecting
the Company or any of its subsidiaries, without regard to whether it would have a material adverse effect. The Company and its
subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing.

 

g.
Acknowledgment Regarding Buyer’ Purchase of Securities. The Company acknowledges and agrees that the Buyer is acting
solely in the capacity of arm’s length purchasers with respect to this Agreement and the transactions contemplated hereby.
The Company further acknowledges that the Buyer is not acting as a financial advisor or fiduciary of the Company (or in any similar
capacity) with respect to this Agreement and the transactions contemplated hereby and any statement made by the Buyer or any of
its respective representatives or agents in connection with this Agreement and the transactions contemplated hereby is not advice
or a recommendation and is merely incidental to the Buyer’ purchase of the Securities. The Company further represents to
the Buyer that the Company’s decision to enter into this Agreement has been based solely on the independent evaluation of
the Company and its representatives.

 

    	 	6	 

    	 

    

 

h.
No Integrated Offering. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf, has
directly or indirectly made any offers or sales in any security or solicited any offers to buy any security under circumstances
that would require registration under the 1933 Act of the issuance of the Securities to the Buyer. The issuance of the Securities
to the Buyer will not be integrated with any other issuance of the Company’s securities (past, current or future) for purposes
of any shareholder approval provisions applicable to the Company or its securities.

 

i.
Title to Property. The Company and its subsidiaries have good and marketable title in fee simple to all real property and
good and marketable title to all personal property owned by them which is material to the business of the Company and its subsidiaries,
in each case free and clear of all liens, encumbrances and defects except such as are described in Schedule 3(i) or such as would
not have a material adverse effect. Any real property and facilities held under lease by the Company and its subsidiaries are
held by them under valid, subsisting and enforceable leases with such exceptions as would not have a material adverse effect.

 

j.
Bad Actor. No officer or director of the Company would be disqualified under Rule 506(d) of the Securities Act as amended
on the basis of being a “bad actor” as that term is established in the September 19, 2013 Small Entity Compliance
Guide published by the Securities and Exchange Commission.

 

k.
Breach of Representations and Warranties by the Company. If the Company breaches any of the representations or warranties
set forth in this Section 3, and in addition to any other remedies available to the Buyer pursuant to this Agreement, it will
be considered an Event of default under the Note.

 

4.
COVENANTS.

 

a.
Expenses. At the Closing, the Company shall reimburse Buyer for expenses incurred by them in connection with the negotiation,
preparation, execution, delivery and performance of this Agreement and the other agreements to be executed in connection herewith
(“Documents”), including, without limitation, reasonable attorneys’ and consultants’ fees and expenses,
transfer agent fees, fees for stock quotation services, fees relating to any amendments or modifications of the Documents or any
consents or waivers of provisions in the Documents, fees for the preparation of opinions of counsel, escrow fees, and costs of
restructuring the transactions contemplated by the Documents. When possible, the Company must pay these fees directly, otherwise
the Company must make immediate payment for reimbursement to the Buyer for all fees and expenses immediately upon written notice
by the Buyer or the submission of an invoice by the Buyer.

 

    	 	7	 

    	 

    

 

b.
Listing. The Company shall promptly secure the listing of the Conversion Shares upon each national securities exchange
or automated quotation system, if any, upon which shares of Common Stock are then listed (subject to official notice of issuance)
and, so long as the Buyer owns any of the Securities, shall maintain, so long as any other shares of Common Stock shall be so
listed, such listing of all Conversion Shares from time to time issuable upon conversion of the Note. The Company will obtain
and, so long as the Buyer owns any of the Securities, maintain the listing and trading of its Common Stock on the OTC MARKETS
or any equivalent replacement market, the Nasdaq stock market (“Nasdaq”), the New York Stock Exchange (“NYSE”),
or the American Stock Exchange (“AMEX”) and will comply in all respects with the Company’s reporting, filing
and other obligations under the bylaws or rules of the Financial Industry Regulatory Authority (“FINRA”) and such
exchanges, as applicable. The Company shall promptly provide to the Buyer copies of any notices it receives from the OTC MARKETS
and any other markets on which the Common Stock is then listed regarding the continued eligibility of the Common Stock for listing
on such markets.

 

c.
Corporate Existence. So long as the Buyer beneficially owns any Note, the Company shall maintain its corporate existence
and shall not sell all or substantially all of the Company’s assets, except in the event of a merger or consolidation or
sale of all or substantially all of the Company’s assets, where the surviving or successor entity in such transaction (i)
assumes the Company’s obligations hereunder and under the agreements and instruments entered into in connection herewith
and (ii) is a publicly traded corporation whose Common Stock is listed for trading on the OTC MARKETS, Nasdaq, NYSE or AMEX.

 

d.
No Integration. The Company shall not make any offers or sales of any security (other than the Securities) under circumstances
that would require registration of the Securities being offered or sold hereunder under the 1933 Act or cause the offering of
the Securities to be integrated with any other offering of securities by the Company for the purpose of any stockholder approval
provision applicable to the Company or its securities.

 

e.
Restricted Shares. The Company shall issue 23,000,000 shares of restricted Common Stock to the Buyer as additional consideration
for the purchase of the Note.

 

f.
Breach of Covenants. If the Company breaches any of the covenants set forth in this Section 4, and in addition to any other
remedies available to the Buyer pursuant to this Agreement, it will be considered an event of default under the Note.

 

5.
Governing Law; Miscellaneous.

 

a.
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York without
regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated
by this Agreement shall be brought only in the state courts of New York or in the federal courts located in the state and county
of New York. The parties to this Agreement 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
Company and Buyer 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 Agreement 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 Agreement or any other Transaction Document 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 Agreement
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.

 

    	 	8	 

    	 

    

 

b.
Counterparts; Signatures by Facsimile. This Agreement may be executed in one or more counterparts, each of which shall
be deemed an original but all of which shall constitute one and the same agreement and shall become effective when counterparts
have been signed by each party and delivered to the other party. This Agreement, once executed by a party, may be delivered to
the other party hereto by facsimile transmission of a copy of this Agreement bearing the signature of the party so delivering
this Agreement.

 

c.
Headings. The headings of this Agreement are for convenience of reference only and shall not form part of, or affect the
interpretation of, this Agreement.

 

d.
Severability. In the event that any provision of this Agreement 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 provision hereof which may prove invalid or unenforceable under any
law shall not affect the validity or enforceability of any other provision hereof.

 

e.
Entire Agreement; Amendments. This Agreement and the instruments referenced herein contain the entire understanding of
the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither
the Company nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No provision
of this Agreement may be waived or amended other than by an instrument in writing signed by the majority in interest of the Buyer.

 

f.
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,
(iv) via electronic mail or (v) 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 delivery via electronic mail, 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:

 

    	 	9	 

    	 

    

 

	 	If
    to the Company, to:
	 	Tauriga
    Sciences, Inc.
	 	39
    Old Ridgebury Road
	 	Danbury,
    CT 06180
	 	Attn:
    Seth M. Shaw, CEO
	 	 
	 	If
    to the Buyer:
	 	GS
    CAPITAL PARTNERS, LLC
	 	110
    Wall Street, Suite 5-070
	 	New
    York, NY 10005
	 	Attn:
    Gabe Sayegh

 

Each
party shall provide notice to the other party of any change in address.

 

g.
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors
and assigns. Neither the Company nor the Buyer shall assign this Agreement or any rights or obligations hereunder without the
prior written consent of the other. Notwithstanding the foregoing, the Buyer may assign its rights hereunder to any person that
purchases Securities in a private transaction from the Buyer or to any of its “affiliates,” as that term is defined
under the 1934 Act, without the consent of the Company.

 

h.
Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

i.
Survival. The representations and warranties of the Company and the agreements and covenants set forth in this Agreement
shall survive the closing hereunder notwithstanding any due diligence investigation conducted by or on behalf of the Buyer. The
Company agrees to indemnify and hold harmless the Buyer and all their officers, directors, employees and agents for loss or damage
arising as a result of or related to any breach or alleged breach by the Company of any of its representations, warranties and
covenants set forth in this Agreement or any of its covenants and obligations under this Agreement, including advancement of expenses
as they are incurred.

 

    	 	10	 

    	 

    

 

j.
Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things,
and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably
request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions
contemplated hereby.

 

k.
No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to
express their mutual intent, and no rules of strict construction will be applied against any party.

 

l.
Remedies. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the
Buyer by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Company acknowledges that the
remedy at law for a breach of its obligations under this Agreement will be inadequate and agrees, in the event of a breach or
threatened breach by the Company of the provisions of this Agreement, that the Buyer 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 Agreement and to enforce specifically the terms and provisions hereof, without the necessity
of showing economic loss and without any bond or other security being required.

 

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IN
WITNESS WHEREOF, the undersigned Buyer and the Company have caused this Agreement to be duly executed as of the date first above
written.

 

	Tauriga
    Sciences, Inc.	 
	 	 	 
	By:	/s/
    Seth M. Shaw	 
	Name:	Seth
    M. Shaw	 
	Title:	CEO	 
	 	 	 
	GS
    CAPITAL PARTNERS, LLC.	 
	 	 	 
	By:	/s/
    Gabe Sayegh 	 
	Name:	Gabe
    Sayegh	 
	Title:	Manager	 

 

	AGGREGATE
    SUBSCRIPTION AMOUNT:	 
	 	 
	Aggregate
    Principal Amount of Note: 	$210,000.00
	 	 
	Aggregate
    Purchase Price: 	 
	 	 
	Note
    1: $105,000.00 less $5,000.00 in legal fees	 
	 	 
	Note
    2: $105,000.00 less $5,000.00 in legal fees	 

 

    	 	12	 

    	 

    

 

EXHIBIT
A

144
NOTE - $105,000.00

 

    	 	13	 

    	 

    

 

EXHIBIT
B

BACK
END NOTE - $105,000.00

 

    	 	14EX-10.1

 Exhibit 10.1 

Execution copy 
 Committed Facility Agreement

  
  

BNP PARIBAS PRIME BROKERAGE INTERNATIONAL, LTD. (“BNPP PB”) and the counterparty specified on the signature page (“Customer”),
hereby enter into this Committed Facility Agreement (this “Agreement”), dated as of the date specified on the signature page. 

Whereas BNP Paribas Prime Brokerage, Inc. (“BNPP PB, Inc.”) and Customer have entered into the U.S. PB Agreement, dated as of the date
hereof (the “U.S. PB Agreement”) and BNPP PB and Customer have entered into the PBI Agreement, dated as of the date hereof (the “PBI Agreement”); 

Whereas BNPP PB, Customer and State Street Bank and Trust Company (including any successor custodian thereto, the “Custodian”) have entered
into the Special Custody and Pledge Agreement, dated on or about the date hereof (the “Special Custody Agreement” and together with this Agreement, the U.S. PB Agreement, and the PBI Agreement, the “40 Act Financing
Agreements”); 
 Whereas this Agreement supplements and forms part of the other 40 Act Financing Agreements and sets out the terms of the
commitment of BNPP PB to provide financing to Customer under the 40 Act Financing Agreements. 
 Now, therefore, in consideration of the foregoing
promises and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties agree as follows: 
  

	1.	Definitions - 

  

	 	(a)	Capitalized terms not defined in this Agreement have the respective meanings assigned to them in the Account Agreement. The 40 Act Financing Agreements are included in the term “Contract,” as defined in the
Account Agreement. 

  

	 	(b)	“Account Agreement” means the Account Agreement as set forth and provided for in the PBI Agreement and, only to the extent this Agreement has been assigned to BNPP PB, Inc., to the U.S. PB Agreement.

  

	 	(c)	“Borrowing” means a draw of cash financing by Customer from BNPP PB pursuant to Section 2 of this Agreement. 

  

	 	(d)	“Closing Date” means the date specified on the signature page hereto. 

  

	 	(e)	“Collateral Requirements” means margin requirements set forth in Appendix A attached hereto. 

  

	 	(f)	“Funding Event” means on any day (the “Date of Determination”), BNP Paribas’ long-term credit rating has declined to a level three or more notches below its highest rating by any
of Standard & Poor’s Ratings Services, Moody’s Investor Service, Inc. or Fitch Ratings, Ltd. during the period beginning on and including date of this Agreement and ending on and including such Date of Determination.

  

	 	(g)	“Maximum Commitment Financing” means the average amount of Outstanding Debit Financing held by Customer over the twenty (20) Business Days immediately preceding the Notice Date or, if fewer, the
number of Business Days elapsed since the Closing Date. 

  

	 	(h)	“Net Asset Value” means, with respect to Customer, the net asset value of the Customer calculated in accordance with U.S. generally accepted accounting principles.  

 

	 	(i)	“Net Asset Value Floor” means, with respect to Customer, an amount equal to 50% of the Net Asset Value of Customer, calculated based on the Customer’s Net Asset Value as of its most recent fiscal
year end commencing with the prior fiscal year relating to the execution of this Agreement.  

	 	(j)	“Notice Date” means the day on which BNPP PB delivers the Facility Modification Notice as set forth in Section 6. 

 

	 	(k)	“Outstanding Debit Financing” means the aggregate cash borrowings under the 40 Act Financing Agreements. For the purposes of calculating such aggregate cash borrowings, if Customer holds debit cash
balances in non-USD currencies, BNPP PB will convert each of these balances into USD at prevailing market rates in good faith and in a commercially reasonable manner to determine Customer’s aggregate cash
borrowings. 

  

	 	(l)	“1940 Act” means the Investment Company Act of 1940, as amended.  

  

	2.	Borrowings - 

 Subject to the terms hereof, BNPP PB shall make available cash financing
under the 40 Act Financing Agreements in an amount up to the relevant Maximum Commitment Financing. Such cash financing shall be made available in immediately available funds. Customer may borrow under this Section 2, prepay pursuant to
Section 4 and reborrow under this Section 2 without penalty. For the avoidance of doubt, any cash financing in excess of the Maximum Commitment Financing shall not be subject to the commitment in Section 6. 

On the Closing Date, subject to the terms hereof, BNPP PB shall make funds available to Customer in an amount approved by BNPP PB. Each
subsequent Borrowing (not to exceed, in the aggregate with each other outstanding Borrowing, the Maximum Commitment Financing) shall be made on written notice (the “Borrow Request”), given by Customer to BNPP PB not later
than 11:00 A.M. (New York City time) on the Business Day immediately preceding the date of the proposed Borrowing (which must be a Business Day) by Customer. Subject to Section 7, BNPP PB shall, before 11:00 A.M. (New York City time) on the
date of such Borrowing, make available to Customer the amount of such Borrowing (provided that the Outstanding Debit Financing, taking into account the amount specified in the Borrow Request, does not exceed the Maximum Commitment Financing)
payable to the account designated by the Customer in such Borrow Request. 
  

	3.	Repayment - 

 (a) Upon the occurrence of a Facility Termination Event, an event described
in Section 15(a) hereof, or the date specified in the Facility Modification Notice as described in Section 6, all Borrowings (including all accrued and unpaid interest thereon and all other amounts owing or payable hereunder) may be
recalled by BNPP PB in accordance with Section 1 of the Account Agreement. 
 (b) Upon the occurrence of a Default, the BNPP Entities
shall have the right to take any action described in Section 13(b) hereof. 
  

	4.	Prepayments - 

 Customer may, upon at least one Business Day’s notice to BNPP PB
stating the proposed date and aggregate principal amount of the prepayment, prepay all or any portion of the outstanding principal amount of the Outstanding Debit Financing, together with accrued interest to the date of such prepayment on the
principal amount prepaid; provided that Customer shall continue to be obligated to pay the Commitment Fee as set forth in Appendix B, as applicable. 

	5.	Interest - 

 Customer shall pay interest on the outstanding principal amount of each
Borrowing from the date of such Borrowing until such principal amount has been paid in full, at the rates specified in Appendix B attached hereto. Such interest shall be payable monthly, and if not paid when due, any unpaid interest shall be
capitalized on the principal balance as additional cash borrowing by the Customer; provided that, notwithstanding such capitalization, the failure by Customer to pay such interest when due, shall be a failure of Customer to comply with an
obligation under this Agreement. 
  

	6.	Scope of Committed Facility - 

 Subject to Section 7, BNPP PB shall make available
cash financing under the 40 Act Financing Agreements in an aggregate amount up to the relevant Maximum Commitment Financing, and may not take any of the following actions except upon at least 179 calendar days’ prior written notice to Customer
(the “Facility Modification Notice”): 
  

	 	(a)	modify the method for calculating the Collateral Requirements; 

  

	 	(b)	recall or cause repayment of any Borrowings under this Agreement; 

  

	 	(c)	modify the interest rate spread on Borrowings under this Agreement, as set forth in Appendix B attached hereto; 

  

	 	(d)	modify any other fees specified in Appendix B attached hereto (the “Fees”), provided that BNPP PB may modify any Fees immediately if (i) the amount of such Fees charged to BNPP PB, as the
case may be, have been increased by the provider of the relevant services or (ii) consistent with increases generally to BNPP PB’s customers made at the same time as any increase to the Fees pursuant to this clause 6(d); or

 (e) terminate this Agreement or any of the other 40 Act Financing Agreements. 

Notwithstanding the foregoing or anything to the contrary herein, on or at any time after the occurrence of a Funding Event, BNPP PB shall have
the option to terminate the Agreement immediately upon notice. Upon termination resulting from the exercise of such option, BNPP PB shall pay to Customer a fee equal to 20 bps on the amount of Maximum Commitment Financing. 

 

	7.	Conditions for Committed Facility - 

 The commitment as set forth in Sections 2 and 6
only applies so long as – 
  

	 	(a)	Customer satisfies the Collateral Requirements; 

  

	 	(b)	no Default or Facility Termination Event has occurred; and 

  

	 	(c)	there has not occurred any permitted termination of this Agreement (including, without limitation, pursuant to Section 15). 

  

	8.	Commitment Fee - 

 Waived. 

 

	9.	Substitution - 

  

	 	(a)	After BNPP PB sends a Facility Modification Notice, Customer may, subject to the Special Custody Agreement, (i) purchase and sell portfolio securities in the ordinary course of business consistent with its
investment restrictions and (ii) substitute collateral in the form of securities if the new securities are in the same or higher quality category as the existing securities, determined by BNPP PB in its good faith discretion; provided
that for substitutions of rehypothecated collateral, such collateral shall be returned for substitution within a commercially reasonable period (in any event no sooner than the standard settlement period applicable to such collateral).

	 	(b)	Prior to BNPP PB sending a Facility Modification Notice, Customer may, subject to the Special Custody Agreement, substitute collateral, provided that for substitutions of rehypothecated collateral, such
collateral shall be returned for substitution within a reasonable period (in any event no sooner than the standard settlement period applicable to such collateral). 

 

	10.	Collateral Delivery - 

 If notice of a Collateral Requirement is sent to Customer:
(i) on or before 11:00 a.m. New York time on any Business Day, then Customer shall deliver all required Collateral no later than the close of business on such Business Day, and (ii) after 11:00 a.m. New York time on any Business Day, then
Customer shall deliver all required Collateral no later than 5:00 p.m. New York time on the immediately succeeding Business Day. 
  

	11.	Representations and Warranties - 

 Customer hereby makes all the representations and
warranties set forth in Section 5 of the Account Agreement, which are deemed to refer to this Agreement, and such representations and warranties shall survive each transaction and the termination of the 40 Act Financing Agreements. 

 

	12.	Financial Information - 

 Customer shall provide BNPP PB with copies of – 

 

	 	i.	the most recent annual report of Customer containing financial statements certified by independent certified public accountants and prepared in accordance with generally accepted accounting principles in the United
States, as soon as available and in any event within 120 calendar days after the end of each fiscal year of Customer; 

  

	 	ii.	the most recent monthly financial statement of Customer, including performance returns and Net Asset Value of Customer, as soon as available and in any event within 30 calendar days after the end of each month; and

  

	 	iii.	the estimated Net Asset Value statement of Customer within one (1) Business Day of request therefor by BNPP PB. 

  

	13.	Termination - 

  

	 	(a)	Upon the occurrence of a Facility Termination Event, BNPP PB shall have the right to terminate this Agreement, accelerate the maturity of any and all Borrowings to be immediately due and payable, modify the method for
calculating the Collateral Requirements, and modify any interest rate spread, fees, charges, or expenses, in each case, in accordance with the timeframes specified in the Account Agreement. 

 

	 	(b)	Upon the occurrence of a Default, the BNPP Entities may terminate any of the 40 Act Financing Agreements and/or take Default Action or any other action provided for under the 40 Act Financing Agreements.

  

	 	(c)	Each of the following events constitutes a “Facility Termination Event”: 

	 	i.	the occurrence of a repudiation, event of default, termination event or similar condition (howsoever characterized, which, for the avoidance of doubt, includes the occurrence of an Additional Termination Event under an
ISDA Master Agreement) by Customer under any contract or agreement with a third party which has resulted in the relevant contract being declared due and payable prior to the time it otherwise would have been due and payable, where the aggregate
principal amount declared due and payable of any such contract or agreement or with respect to a transaction under an ISDA Master Agreement (which, for the avoidance of doubt, includes any obligations with respect to borrowed money or other assets
in connection with such contract or agreement) is not less than the lesser of (x) 3% of the Net Asset Value of Customer and (y) USD $10,000,000; 

  

	 	ii.	there occurs any change in BNPP PB’s interpretation of any Applicable Law or the adoption of or any change in the same that, in the reasonable opinion of counsel to BNPP PB, has the effect with regard to BNPP PB of
impeding or prohibiting the arrangements under the 40 Act Financing Agreements (including, but not limited to, imposing or adversely modifying or affecting the amount of regulatory capital to be maintained by BNPP PB); 

 

	 	iii.	(A) as of the final Business Day of each calendar month, the Net Asset Value of Customer has declined by fifteen percent (15%) or more from the Net Asset Value of Customer as of the final Business Day of the prior
calendar month; or (B) as of the final Business Day of each calendar month, the Net Asset Value of Customer has declined by twenty-five percent (25%) or more from the Net Asset Value of Customer as of the final Business Day of the third (3rd)
prior calendar month; or (C) as of the final Business Day of each calendar month, the Net Asset Value of Customer has declined by thirty-five percent (35%) or more from the Net Asset Value of Customer as of the final Business Day of the twelfth
(12th) prior calendar month; (for purposes of (A), (B) and (C), any decline in the Net Asset Value shall be based solely on performance and shall exclude any positive or negative change caused by capital transfers, such as redemptions, withdrawals,
subscriptions, contributions or investments, howsoever characterized); 

  

	 	iv.	the investment management agreement between Customer and its investment advisor (“Advisor”) is terminated or the Advisor otherwise ceases to act as investment advisor of Customer; provided, however,
such termination or cessation shall not constitute a Facility Termination Event if there is a replacement investment advisor appointed immediately who is acceptable to BNPP PB in its good faith discretion; 

 

	 	v.	Customer violates the leverage limitations under Section 61 of the 1940 Act and the interpretations thereof from the Securities and Exchange Commission and its staff; 

 

	 	vi.	Customer is not classified as a “closed-end company” as defined in Section 5 of the 1940 Act; or 

 

	 	vii.	Customer changes its fundamental investment policies without the prior notice to and the consent of BNPP PB. 

  

	 	(d)	Each of the following events constitutes a “Default” and shall be an “Event of Default” for purposes of the Account Agreement: 

 

	 	i.	Customer fails to meet the Collateral Requirements within the time periods set forth in Section 10 after BNPP PB delivers notice to Customer of such failure; provided that, it shall not be a Default if such
failure is caused by an error or omission of an administrative or operational nature of which Customer has notified BNPP PB on the day such posting was due and (A) funds were available for Customer to post when due and (B) such posting is
made by the close of business on the immediately following Business Day after such posting was originally due; 

	 	ii.	Customer fails to deliver its financial information within the time periods set forth in Section 12 and such failure is not remedied within (A) five (5) days for a failure under Sections 12(a)(i), 12(a)(ii),
and 12(a)(iii), and (B) one (1) Business Day for a failure under Section 12(a)(iv); 

  

	 	iii.	the Net Asset Value of Customer declines below the Net Asset Value Floor; 

  

	 	iv.	any representation or warranty made or deemed made by Customer to BNPP PB under any 40 Act Financing Agreement (including under Section 11 herein) proves false or misleading when made or deemed made;

  

	 	v.	Customer fails to comply with or perform any other agreement or obligation under this Agreement or the other 40 Act Financing Agreements and such failure is not cured within five (5) Business Days of written notice
of such failure (via email to [please provide]); 

  

	 	vi.	Customer becomes bankrupt, insolvent, or subject to any bankruptcy, reorganization, insolvency or similar proceeding (provided, however, that in the case of a proceeding instituted against Customer, the existence of
such proceeding shall not constitute a Default or an Event of Default unless such proceeding is not dismissed within 15 days of its commencement) or all or substantially all its assets become subject to a suit, levy, enforcement, or other legal
process where a secured party maintains possession of such assets, has a resolution passed for its winding-up, official management or liquidation (other than pursuant to a consolidation, amalgamation or
merger), seeks or becomes subject to the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official for it or for all or substantially all its assets, has a secured party take
possession of all or substantially all its assets, or takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the foregoing acts; or 

 

	 	vii.	the occurrence of a default, termination event or similar condition (howsoever characterized, which, for the avoidance of doubt, includes the occurrence of an Additional Termination Event under an ISDA Master Agreement)
by, or with respect to, Customer under any contract or agreement with a BNPP Entity or affiliate of a BNPP Entity beyond any applicable notice or cure periods; provided that, with respect to defaults not resulting from payment, posting or
margin delivery failures, such event has resulted in the acceleration, termination or close-out of all transactions under such contract (howsoever characterized). 

 

	(e)	Customer shall have the right to terminate this Agreement upon 179 days’ prior notice. 

  

	14.	Notices - 

 Notices under this Agreement shall be provided pursuant to Section 12(a)
of the Account Agreement. 
  

	15.	Compliance with Applicable Law - 

  

	 	(a)	Notwithstanding any of the foregoing, if required by Applicable Law (including, for the avoidance of doubt, any new or amended rules, requests, guidelines and directives promulgated in connection with current Applicable
Law, including the Dodd-Frank Wall Street Reform and Consumer Protection Act) – 

  

	 	i.	the BNPP Entities may terminate any 40 Act Financing Agreement and any Contract; 

  

	 	ii.	BNPP PB may recall any outstanding cash loan under the 40 Act Financing Agreements; 

	 	iii.	BNPP PB may modify the method for calculating the Collateral Requirements; and 

  

	 	iv.	the BNPP Entities may take Default Action. 

  

	 	(b)	This Agreement will not limit the ability of BNPP PB to change the product provided under this Agreement and the 40 Act Financing Agreements as necessary to comply with Applicable Law (including, for the avoidance of
doubt, any new or amended rules, requests, guidelines and directives promulgated in connection with current Applicable Law, including the Dodd-Frank Wall Street Reform and Consumer Protection Act). 

 

	16.	Miscellaneous - 

  

	 	(a)	In the event of a conflict between any provision of this Agreement and the other 40 Act Financing Agreements, this Agreement prevails. 

 

	 	(b)	This Agreement is governed by and construed in accordance with the laws of the State of New York, without giving effect to the conflict of laws doctrine. 

 

	 	(c)	Section 16(c) of the Account Agreement is hereby incorporated by reference in its entirety and shall be deemed to be a part of this Agreement to the same extent as if such provision had been set forth in full
herein. 

  

	 	(d)	Notwithstanding anything in any of the 40 Act Financing Agreements to the contrary, if any of the BNPP Entities (the “Assignor”) assigns its rights hereunder or any interest herein or under any other 40 Act
Financing Agreement to any other person (such person, including any subsequent assignee, referred to herein as an “Assignee”), Customer shall in no event be required to pay to Assignee any additional amounts with respect to Taxes under any
provision herein (or in any of the 40 Act Financing Agreements) in excess of the amounts Customer was required to pay with respect to payments made to Assignor prior to such assignment. 

 

	 	(e)	This Agreement may be executed in counterparts, each of which will be deemed an original instrument and all of which together will constitute one and the same agreement. 

(The remainder of this page is blank.) 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and delivered as of Oct. 19, 2017.

  

			
	NEXPOINT CAPITAL, INC.
		
	 By:
	 	 /s/ Frank Waterhouse

		 	 Name: Frank Waterhouse

		 	 Title: Treasurer

	
	BNP PARIBAS PRIME BROKERAGE INTERNATIONAL, LTD.
		
	 By:
	 	 /s/ Jeffrey Lowe

		 	 Name: Jeffrey Lowe

		 	 Title: Managing Director

		
	 By:
	 	 /s/ JP Muir

		 	 Name: JP Muir

		 	 Title: Managing Director

 Execution copy 

Appendix A – Collateral Requirements 
  

 
 THIS APPENDIX forms a part of the Committed Facility
Agreement entered into between BNP Paribas Prime Brokerage International, Ltd. (“BNPP PB”) and NexPoint Capital, Inc. (“Customer”) (the “Committed Facility Agreement”). 

 

	1.	Collateral Requirements - 

 The Collateral Requirements in relation to all positions held
in the accounts established pursuant to the 40 Act Financing Agreements (the “Positions”) shall be the greatest of: 
 (a)
the aggregate product of (x) the Collateral Percentage applicable to such Positions and (y) the Current Market Value of such respective Positions; 

(b) the sum of the collateral requirements of such Positions as per Regulation T or Regulation X, as applicable, of the Board of Governors of
the Federal Reserve System and Financial Industry Regulatory Authority Rule 4210 (as determined by BNPP PB), as amended from time to time; or 

(d) the Concentration Floor. 
  

	2.	Eligible Securities - 

  

	 	(a)	Positions in the following eligible equity and fixed income security types of Developed Market Securities, provided that all such securities are capable of being valued by BNPP PB on a daily basis based on internal and
external pricing sources and are denominated in USD (“Eligible Securities”, which term shall exclude any securities described in Section 2(b)) are covered under the Committed Facility Agreement: 

 

	 	i.	common stock traded on the New York Stock Exchange, NASDAQ, NYSE Arca, and NYSE Amex Equities; 

  

	 	ii.	convertible and non-convertible corporate debt securities or preferred securities; or 

  

	 	iii.	Treasury Securities. 

  

	 	(b)	Notwithstanding the foregoing, the following will not be part of the collateral commitment and shall have no collateral value: 

  

	 	i.	any security type not covered above, as determined by BNPP PB in its sole discretion; 

  

	 	ii.	any short security position; 

  

	 	iii.	any security offered through a private placement or any restricted securities; 

  

	 	iv.	any security that is not maintained as a book-entry security on a major depository, such as The Depository Trust Company; 

  

	 	v.	any securities that are municipal securities, asset-backed securities, mortgage securities, Contingent Convertible Securities,
Payment-in-Kind Securities, Emerging Market Securities, Structured Securities (notwithstanding the fact that such securities would otherwise be covered), or any
securities denominated in currencies other than USD; 

  
 1 

	 	vi.	any security where Customer or Customer’s Advisor (A) is an Affiliate of the Issuer of the relevant equity securities or (ii) beneficially owns more than 9% of either (a) the voting interests of the
Issuer or (b) any voting class of equity securities of the Issuer (in each case, whether such positions are held in accounts established pursuant to the 40 Act Financing Agreements or otherwise). For the avoidance of doubt, for purposes of
determining beneficial ownership, any convertible debt of preferred debt shall be treated as converted; 

  

	 	vii.	any equity security with a market capitalization of less than USD $300,000,000; 

  

	 	viii.	any Debt Security which trades below 40% of its nominal value; 

  

	 	ix.	any Debt Security Position which has a Current Market Value that is greater than 10% of the Issue Size; 

  

	 	x.	any Debt Security whose outstanding issuance, calculated pursuant to its face value, is less than USD $50,000,000; 

  

	 	xi.	to the extent that the Gross Market Value of Positions in Subordinated Bonds exceeds 20% of the Portfolio Gross Market Value and Customer fails to rebalance within one Business Day of notice from BNPP PB, any Positions
in excess of such 20% (and BNPP PB shall determine in its sole discretion which specific securities shall be considered to be in excess of such 20%); 

  

	 	xii.	to the extent that the Gross Market Value of Positions in Tier 1 Capital (Capital Contingent Securities) exceeds 10% of the Portfolio Gross Market Value and Customer fails to rebalance within one Business Day of notice
from BNPP PB, any Positions in excess of such 10% (and BNPP PB shall determine in its sole discretion which specific securities shall be considered to be in excess of such 10%); 

 

	 	xiii.	any Positions with Days of Trading Volume equal to or greater than 4; and 

  

	 	xiv.	any Positions with Equity Volatility equal to or greater than 100% 

  

	 	xv.	any security for which, on the relevant date of determination, the record date in connection with a Distribution Event shall occur less than seven (7) calendar days after such date of determination.

  

	3.	Equity Securities Collateral Percentage -  

 The Collateral Percentage for a Position
consisting of applicable equity securities that are Eligible Securities shall be: 
  

	 	i.	subject to paragraph ii below, the sum of (A) the Equity Core Collateral Rate and (B) the product of (I) the Equity Core Collateral Rate and (II) the sum of the the Equity Liquidity Factor and the
Equity Volatility Factor, or 

  

	 	ii.	100% if the product determined under paragraph (i) above is greater than 100%. 

  

	 	(a)	Equity Liquidity Factor. 

  

	 	The	“Equity Liquidity Factor” shall be determined pursuant to the following table. 

  
 2 

					
	 Days of Trading Volume
	  	Equity Liquidity Factor	 
	 Less than 2
	  	 	0	 
	 2 to 4
	  	 	1	 

  

	 	(b)	Equity Volatility Factor. 

 The “Equity Volatility Factor” shall be
determined pursuant to the following table. 
  

											
	 Equity Volatility
	  	Equity Volatility Factor	 
	 Less than 35%
	  	 	0	 
	 Equal to or greater than 35% and less than 50%
	  	 	0.5	 
	 Equal to or greater than 50% and less than 75%
	  	 	1	 
	 Equal to or greater than 75% and less than 100%
	  	 	2	 

  

	4.	Debt Securities and Treasury Securities Collateral Percentage - 

 The Collateral
Percentage for a Position consisting of applicable Debt Securities that are Eligible Securities shall be the sum of (A) the Debt Core Collateral Rate and (B) the product of (1) the Debt Core Collateral Rate and (2) the sum of the
Debt Liquidity Adjustment and the Debt Maturity Adjustment; provided that the Collateral Percentage for any eligible Debt Security calculated to be greater than 100% shall be deemed to be 100%. 

(a) Debt Core Collateral Rate. 

The “Debt Core Collateral Rate” shall be (i) for Treasury Securities, 10%, and (ii) for all other Debt Securities,
as determined pursuant to the following table, using the lower of the S&P or Moody’s rating as shown below; provided, that (A) if there is only one such rating, then the Debt Core Collateral Rate corresponding to such rating
shall be used and (B) if there is no such rating, then the Debt Core Collateral Rate shall be 50%. 
  

					
	 S& P’s Rating
	  	 Moody’s Rating
	  	 Debt Core Collateral Rate

	 AAA to A-
	  	Aaa to A3	  	10%
	 BBB+ to BBB-
	  	Baa1 to Baa3	  	20%
	 BB+ to BB-
	  	Ba1 to Ba3	  	30%
	 B+ to B-
	  	B1 to B3	  	40%
	 CCC+ to CCC- / NR
	  	Caa1 to Caa3 /NR	  	50%
	 Below CCC- / any

Defaulted Debt Security
	  	 Below Caa3 / any

Defaulted Debt Security
	  	70%

 (b) Debt Liquidity Adjustment 

The “Debt Liquidity Adjustment” shall be determined pursuant to the following table. The Debt Liquidity Adjustment shall be
applied to the entire Position that is within the relevant liquidity threshold category; provided that, notwithstanding any other provision of this Appendix, Positions whereby the Percent of Issue Size is 35% or more shall not be Eligible
Securities. 

  
 3 

					
	 Percentage of Issue Size
	  	Debt Liquidity Adjustment	 
	 Less than 10%
	  	 	0	 
	 Greater than 10% and equal to or less than 20%
	  	 	1.5	 
	 Greater than 20% and equal to or less than 35%
	  	 	2	 

  

	 	(c)	Debt Maturity Adjustment 

 The “Debt Maturity Adjustment” shall apply to
Debt Securities with maturities greater than 10 years. The Debt Maturity Adjustment shall be determined pursuant to the following table and shall be based on the lower of the S&P or Moody’s rating, provided that if there is only one
such rating, then the Debt Maturity Adjustment corresponding to such rating shall be used. BNPP PB may, in its sole discretion, assign a shorter effective maturity to a Debt Security in accordance with such security’s optional redemption
features. 
  

					
	 S&P / Moody’s Rating
	  	Debt Maturity Adjustment	 
	 A- / A3 & above
	  	 	0.5	 
	 BBB+, BBB, BBB- / Baa1, Baa2, Baa3
	  	 	0.58	 
	 BB+, BB, BB- / Ba1, Ba2, Ba3
	  	 	0.53	 
	 B+, B, B- / B1, B2, B3
	  	 	0.5	 
	 Not Rated
	  	 	0.4	 
	 CCC+, CCC, CCC- / Caa1, Caa2, Caa3
	  	 	0.33	 

  

	5.	The Concentration Floor - 

 The Concentration Floor shall be the greatest of (i) 200% of
the largest Issuer Exposure or (ii) 35% of the largest Sector Exposure. 
  

	6.	Positions Outside the Scope of this Appendix - 

 For the avoidance of doubt, the
Collateral Requirements set forth herein are limited to the types and sizes of securities specified herein. The Collateral Requirement for any Position or part of a Position not covered by the terms of this Appendix shall be determined by BNPP PB in
its sole discretion. 
  

	7.	One-off Collateral Requirements - 

 From time to
time BNPP PB, in its sole discretion, may agree to a different Collateral Requirement than the Collateral Requirement determined by this Appendix for a particular Position; provided that, for the avoidance of doubt, the commitment in
Section 6(a) of the Committed Facility Agreement shall apply only with respect to the Collateral Requirements based upon the Collateral Percentage determined in accordance with this Appendix A hereof and BNPP PB shall have the right at any time
to increase the Collateral Requirement for such Position up to the Collateral Requirement that would be required as determined in accordance with this Appendix A. 
  

	8.	Certain Definitions - 

  

	 	(a)	“Affiliate” means an affiliate as defined in Rule 144(a)(1) under the Securities Act of 1933. 

  

	 	(b)	“Bloomberg” means the Bloomberg Professional service. 

  
 4 

	 	(c)	“Capital Contingent Security” means any security which can be converted to common equity upon a trigger of a Tier 1 Capital Ratio (as defined in the third Basel Accord). 

 

	 	(d)	“Collateral Percentage” means the percentage as determined by BNPP PB according to this Appendix A. 

  

	 	(e)	“Contingent Convertible Security” means any contingent convertible Debt Security (including, without limitation any convertible Debt Security where the right to convert the relevant security is
contingent upon the price of the common equity of the Issuer of such security reaching a level that is higher than the conversion price). 

  

	 	(f)	“Current Market Value” means with respect to a Position, an amount equal to the product of (i) the number of units of the relevant security and (ii) the price per unit of the relevant security
(determined by BNPP PB). 

  

	 	(g)	“Days of Trading Volume” means with respect to an equity security, an amount equal to the quotient of (i) the number of shares of such security constituting the Position, as numerator and
(ii) the 90-day average daily trading volume of such security as shown on Bloomberg (or, if the 90-day average daily trading volume of such security is unavailable,
the 30-day average daily trading volume of such security, as determined by BNPP PB in its sole discretion), as denominator. 

 

	 	(h)	“Debt Security” means convertible and non-convertible preferred securities and corporate debt securities. 

 

	 	(i)	“Developed Market Security” means any security for which the country of risk originates from any of the following: Australia, Austria, Belgium, Canada, Cyprus, Denmark, Finland, France, Germany, Greece,
Ireland, Italy, Japan, Luxembourg, Malta, Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, United Kingdom, United States. 

  

	 	(j)	“Emerging Market Security” means any security which is not a Developed Market Security. 

  

	 	(k)	“Equity Core Collateral Rate” means 15%. 

  

	 	(l)	“Equity Volatility” means with respect to an equity security, the 90-day historical volatility of such security as determined by BNPP PB in its sole discretion
or, if the 90-day historical price volatility of such security is unavailable, the 30-day historical price volatility of such security as determined by BNPP PB in its
sole discretion. 

  

	 	(m)	“Gross Market Value” of one or more Positions means an amount equal to the sum of all Current Market Values of all such Positions, where, for the avoidance of doubt, the Current Market Value of each
Position is expressed as a positive number whether or not such Position is held long. 

  

	 	(n)	“Issuer” means, with respect to a Debt Security or equity security, the ultimate parent company or similar term as used by Bloomberg; provided that, if the relevant security was issued by a
company or a subsidiary of a company that has issued common stock, the Issuer shall be deemed to be the entity that has issued common stock; provided further that, with respect to any exchange-traded funds, the Issuer of such securities shall
be the index to which the relevant securities relate, if any. 

  

	 	(o)	“Issuer Exposure” means the Current Market Value of all Positions that are Eligible Securities in any given Issuer (as classified by Bloomberg). 

 

	 	(p)	“Issue Size” means with respect to a Position in a Debt Security of an Issuer, the Current Market Value of all such Debt Securities issued by the Issuer and still outstanding. 

  
 5 

	 	(q)	“Moody’s” means Moody’s Investor Service, Inc. 

  

	 	(r)	“Payment-in-Kind Security” means any security that permits the Issuer to pay the holder of such security with additional
securities or assets in place of cash. 

  

	 	(s)	“Percent of Issue Size” means the quotient of (i) the Current Market Value of any Position in a specific issue and (ii) the Issue Size. 

 

	 	(t)	“Portfolio Gross Market Value” means the Gross Market Value of all of the Positions that are Eligible Securities. 

  

	 	(u)	“Sector Exposure” means the Current Market Value of all Positions that are Eligible Securities in any given industry sector (as classified by Bloomberg). 

 

	 	(v)	“Structured Securities” means any security (i) the payment to a holder of which is linked to a different security, provided that such different security is issued by a different issuer or
(ii) structured in such a manner that the credit risk of acquiring the security is primarily related to an entity other than the issuer of the security itself. 

 

	 	(w)	“Subordinated Bond” means any bond with a lower priority than other securities when assets are distributed in liquidation or bankruptcy (as determined by the field “IS_SUBORDINATED” in
Bloomberg). 

  

	 	(x)	“S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. 

  

	 	(y)	“Treasury Security” means any security that is a direct obligation of the United States Treasury. For the avoidance of doubt, neither Treasury Inflation-Protected Securities nor securities issued under
the Separate Trading of Registered Interest and Principal of Securities program nor securities issued by any other United States government agency or government sponsored enterprise are herein considered Treasury Securities. 

  
 6 

 Execution copy 

Appendix B 
 Pricing

 NexPoint Capital, Inc. 

Financing Rate 

Customer Debit Rate 
  

							
	 Waterfall
	  	 Asset Class
	  	 Benchmark Rate
	  	 Spread

	1	  	Equities Tier 1—S&P 500	  	USD LIBOR 1M	  	60 bps
	2	  	Equities Tier 2—Russell 1000	  	USD LIBOR 1M	  	65 bps
	3	  	Equities Tier 3—Russell 2000	  	USD LIBOR 1M	  	70 bps
	4	  	All other Eligible Equities Securities	  	USD LIBOR 1M	  	130 bps
	5	  	Investment Grade Bonds	  	USD LIBOR 1M	  	90 bps
	6	  	Sub-Investment Grade Bonds	  	USD LIBOR 1M	  	130 bps

 The Customer Debit Rate will be allocated in accordance with the Waterfall order of the Asset Classes set forth above to
determine the applicable Benchmark Rate and Spread (as each such term is defined in the table above) for Eligible Securities (as defined in Appendix A). The Customer Debit Rate will equal the weighted average of such calculations. 

For securities which otherwise qualify as Eligible Securities but (i) do not fall within the parameters of an Asset Class listed above or
(ii) fall within the parameters of an Asset Class listed above but have been “chilled” at DTC or otherwise prohibited from being hypothecated by the depository, the Customer Debit Rate shall equal 1 Month LIBOR + 160 bps,
including defaulted Convertible Bonds and defaulted Corporate Bonds. 
 The debit rates for securities which do not qualify as Eligible Securities are not
subject to the commitment set forth in Section 2 of the Agreement and, accordingly (i) shall be determined by BNPP PB in its sole discretion, and (ii) are subject to change at any time by BNPP PB.

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